|Bid||11.78 x 0|
|Ask||11.78 x 0|
|Day's Range||11.51 - 11.82|
|52 Week Range||9.07 - 13.07|
|Beta (3Y Monthly)||1.86|
|PE Ratio (TTM)||5.38|
|Earnings Date||Nov 7, 2019|
|Forward Dividend & Yield||0.27 (2.35%)|
|1y Target Est||16.38|
Rating Action: Moody's assigns definitive ratings to Italian ABS Notes backed by NPLs issued by PRISMA S.r.l. Global Credit Research- 18 Oct 2019. EUR 1,290 billion Notes rated, relating to a portfolio ...
Some of the City of London’s biggest names have attacked the financial system’s addiction to loose monetary policy and accused central banks of dicing with “moral hazards” — akin to the bailout of banks in 2008 — in their obsession with staving off a decline in equity and bond markets. “Markets have become conditioned — unhealthily in my view — to expect central banks to support risk sentiment, regardless of the potential moral hazards and creation of asset bubbles,” Anne Richards, chief executive of Fidelity International told the FT City Network.
(Bloomberg Opinion) -- Italy’s second-richest tycoon made his fortune in spectacles, and now he has ideas about how to run a bank. There is no doubting Leonardo Del Vecchio’s entrepreneurial flair. But his decision to take a 7% stake in Mediobanca SpA and opine publicly about its strategy merits caution. He is but one shareholder, and he should not dictate the lender’s strategy.Del Vecchio is not a naturally passive shareholder or owner. Chief executive officers at his glasses maker Luxottica Group SpA would rotate at an alarming pace. The merger of Luxottica with French lenses group Essilor diluted his dominant holding into a non-controlling stake and created a balanced board with representation from both sides. The arrangement soon fell into acrimony. That is an inauspicious backdrop for a large and potentially growing investment in Mediobanca.His motivations are unclear. The benign explanation is that this is portfolio diversification: Most of Del Vecchio’s wealth is tied up in the eyewear industry. He has some financial exposure to Italian insurer Assicurazioni Generali SpA and lender UniCredit SpA, but this is relatively small. The more worrying possibility is that it really is about meddling with another Generali shareholder — Mediobanca owns 13% of the insurer — or that it relates to some other personal agenda.Del Vecchio has reportedly said Mediobanca needs to be more ambitious in mergers and acquisitions, expand in investment banking, and rely less on the income it receives from Generali. It is not obvious all of these ideas would benefit other shareholders. Wealth management is where acquisitions might make sense for Mediobanca, but deals are risky given that the main assets — the people — can walk out of the door. Mediobanca CEO Alberto Nagel has been rightly cautious.Lifting exposure to investment banking activities, reviving a former strategy, would re-introduce more volatile revenue streams and risk lowering the multiple of earnings on which the shares trade.The function of the Generali stake is a trickier question. Corporate finance theory would dictate that Mediobanca should sell it and return cash to shareholders. If the bank needed cash in the future, it would then ask shareholders to stump up when it could show what the funds would be used for.That works for big, diversified corporations like Unilever NV. But a smaller, less well-capitalized, Italy-focused bank would probably find the capital markets unwilling to provide funds just when it needed them most — for example, in hard times when bid targets were most affordable. So long as there is a possibility that Mediobanca might want to do M&A, the stake is best seen as a financial resource to be retained.It’s possible that Del Vecchio’s vision and Nagel’s could align if Mediobanca finds a decent takeover target, which the Generali stake could pay for. But while Mediobanca’s existing strategy looks sound, and the group is well run, Nagel cannot be complacent. The Generali stake makes a big contribution to net income but doesn’t require any management effort. And Mediobanca’s central and treasury functions make an uncomfortably high dent in the profits that the other businesses bring in. An upcoming strategy refresh offers the chance for Nagel to set some hard targets for revenue growth and further cost efficiency that would dispel any suggestion of low ambition.To contact the author of this story: Chris Hughes at firstname.lastname@example.orgTo contact the editor responsible for this story: Melissa Pozsgay at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Organisers of London’s 1:54 fair for contemporary African art did well to open its sophisticated seventh edition to VIPs a few hours before the opening of the Frieze fairs on October 2. “African art” is increasingly seen as a very broad term for the 54 countries within the continent, as the fair’s name reminds us. “The ‘African’ label doesn’t have to go, but it has to evolve,” says Rakeb Sile, co-founder of Ethiopia’s Addis Fine Art, which opens a second space in London’s Cromwell Place next year.
(Bloomberg) -- Welcome to the Brussels Edition, Bloomberg’s daily briefing on what matters most in the heart of the European Union. Sign up here to get it in your inbox every weekday morning.After reaching an agreement on the modalities of a euro-area budget late last night, money laundering is high on the agenda of finance ministers meeting in Luxembourg today. Since last year’s “action plan” meant to respond to a host of scandals in the European financial system, more problems have come to light — most recently at Dutch lender ABN Amro. Questions remain about what the bloc should do about the many shortcomings that have been identified and if a major overhaul of the framework, such as setting up a dedicated agency to fight dirty money, is needed. What’s HappeningBrexit’s Fate | It’s Brexit’s high-noon moment. Around lunchtime today, Prime Minister Boris Johnson will hold private talks with his Irish counterpart, Leo Varadkar, to explore whether the two sides can find room to compromise. It’s a meeting that’s set to seal the fate of Brexit, and signs aren’t good.Round Two | Emmanuel Macron’s EU commissioner pick is in for a tough grilling. In a brutal confirmation hearing last week, EU lawmakers attacked Sylvie Goulard for her ongoing judicial issues and outsize portfolio — ranging from tech and defense to space — and asked her to come back for further explanations. This morning she’ll have to convince them she’s fit for the job.Suing Poland | The Commission is set to sue Poland over a disciplinary regime for judges, testing one of the ruling party’s main policies just days before a general election it’s widely expected to win. The move, to be announced as soon as today, puts the erosion of democratic standards back at the center of the campaign ahead of Sunday’s vote and may upset plans to reset ties with Brussels. Romanian Instability | Romania is on the brink of losing a third prime minister in as many years as the minority government faces a no-confidence motion. Opposition lawmakers complain about a lack of investment and damage to the judiciary, while the ruling party points to boosted salaries and pensions. Even if the opposition succeeds, any coalition it cobbles together is likely to be weak.Catalan Verdict | Spain is bracing for an imminent Supreme Court verdict in the trial of leaders of a failed attempt by Catalan separatists to declare independence in 2017. If the court hands down tough sentences, expect mass protests across Catalonia. The government’s handling of any unrest will come under close scrutiny, especially ahead of a general election on Nov. 10.In Case You Missed ItTurkey’s Gamble | The EU condemned Turkey’s offensive against Kurds in Syria. But that’s the least of Ankara’s problems, Selcan Hacaoglu and Marc Champion explain.Cunning Plan | Spain’s acting Prime Minister Pedro Sanchez said he will announce a plan next Sunday to end the long-standing political stalemate and form a government following next month’s election. While he didn’t say what his proposal would focus on, the prospect of a solution by December may help restore confidence in a country battered by uncertainty. Resisting Populism | Hungary’s opposition parties are banding together for the first time in local elections to form a common front against Prime Minister Viktor Orban. A strong showing on Sunday, particularly in Budapest, could give the opposition momentum for the 2022 parliamentary vote, while failure to reclaim big cities would point to a likely fifth term for the standard-bearer of European right-wing populists.Greek Miracle | Greece, the one-time bond-market pariah at the heart of Europe’s sovereign debt crisis, completed a transformative journey by joining the region’s negative-yield club. Investors are now paying for the privilege of lending it money.Chinese Quarrel | After taking on NBA basketball, China is turning its ire on Prague after the picturesque Czech capital withdrew from a sister-city partnership with Beijing. The conflict has been brewing since the upstart Pirate party took over the Prague mayor’s office and raised issues with Beijing’s “one China” policy with regard to Taiwan and Tibet.Chart of the DayThe U.S. dropped from the top spot in the World Economic Forum’s annual competitiveness report, losing out to Singapore. The EU countries that made the survey’s top 10 are the Netherlands, Germany, Sweden, the U.K. and Denmark. Today’s AgendaAll times CET.9 a.m. EU finance ministers gather in Luxembourg 9:30 a.m. Confirmation hearing of French Commissioner-designate Goulard resumes at the European Parliament 1 p.m. ECB publishes the account of its September policy meeting European lawmakers debate measures to make EU investments more environmentally-friendly with European Investment Bank President Werner Hoyer Commission is expected to approve an asset protection scheme to help Greek banks clean up their balance sheets Single Resolution Board bank resolution conference with speakers including SRB Chairwoman Elke Koenig, Commissioner Margrethe Vestager and UniCredit CEO Jean Pierre Mustier Possible verdict in trial of Catalan independence leadersLike the Brussels Edition?Don’t keep it to yourself. Colleagues and friends can sign up here. We also publish the Brexit Bulletin, a daily briefing on the latest on the U.K.’s departure from the EU. For even more: Subscribe to Bloomberg All Access for full global news coverage and two in-depth daily newsletters, The Bloomberg Open and The Bloomberg Close.How are we doing? We want to hear what you think about this newsletter. Let our Brussels bureau chief know.\--With assistance from Charles Penty, Viktoria Dendrinou, Zoe Schneeweiss and Andrew Langley.To contact the authors of this story: Nikos Chrysoloras in Brussels at firstname.lastname@example.orgAlexander Weber in Brussels at email@example.comTo contact the editor responsible for this story: Vidya N Root at firstname.lastname@example.org, Chris ReiterFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Slovenia's central bank said on Wednesday it will impose restrictions on consumer loans to curb "excessive" credit growth and protect borrowers from becoming overindebted. Slovenia narrowly escaped having to ask for an international bailout for its banking sector in 2013 but since then, lenders have returned to profit and reduced their pile of bad loans. Primoz Dolenc, deputy governor of the Bank of Slovenia, told a news conference that annual growth of consumer loans currently exceeds 10%, well above economic growth of 4.1% in 2018.
(Bloomberg) -- A growing number of German banks are passing on negative interest rates to their retail customers as the costs become too high to bear on their own.Berliner Volksbank, the country’s second-largest cooperative lender, started to apply a minus 0.5% rate on deposits exceeding 100,000 euros ($110,000) in its first charge for retail clients. The move may encourage other lenders to follow suit, with both Deutsche Bank AG and Commerzbank AG signaling that they’re warming to the idea.“Things are changing in the industry and we expect further negative interest rates, especially since one of the major cooperative lenders has now taken that step,” said Oliver Maier, co-head of market researcher Verivox Finanzvergleich.Germany’s banks have long resisted passing on the burden of negative rates to retail clients, concerned that they will face reputational damage and mass withdrawals. But after five years of negative rates from the European Central Bank, the country’s banks -- already struggling with sub-par profitability -- are running out of ways to offset the hit to earnings.At least 34 German lenders have already opted to drag some retail clients into the fray of negative rates, according to data provider Biallo.de. Most of them, however, are smaller banks and the threshold is often well above the 100,000 euro mark set by Berliner Volksbank. Many have passed on the costs to corporate and wealth clients for some time.Costing BillionsThe rate policy is costing German lenders 2.4 billion euros a year, according to the country’s banking lobby. Last month, the ECB reduced the deposit rate to minus 0.5% from minus 0.4%. Lenders will get exemptions from the negative rate for some of their deposits.Berliner Volksbank tied its new policy to the ECB’s latest move. Deutsche Skatbank, which imposed the same minus 0.5% rate for accounts that exceed 100,000 euros, said it is “no longer economically justifiable to continue to bear the ECB’s negative interest rate in full.”According to the German association of cooperative lenders, other banks within the group might follow. “It can not be ruled out that additional customers or products will be affected,” said spokeswoman Cornelia Schulz.Some of Germany’s largest banks, which have so far mostly resisted involving their customers, have also signaled the need to act:Deutsche Bank needs to be “more robust” in sharing the consequences of negative rates, Chief Financial Officer James von Moltke said last month. Companies and wealthy clients could see a tiered system with favorable rates up to a certain cap in deposits, while retail clients may end up paying through fees for services, he added.Commerzbank isn’t currently considering passing on the costs to retail clients, CFO Stephan Engels said in September. The lender will have “focused discussions” about doing so with clients who have funds that surpass “certain thresholds,” he said in a Bloomberg TV interview.Danish Banks Giving in to PressureDenmark is another country where the idea is gaining traction. Spar Nord Bank A/S will apply a minus 0.75% rate on deposits exceeding 750,000 kroner ($110,000), it said on Thursday. The move comes after Jyske Bank A/S, Denmark’s second-largest listed lender, said it is doing the same.German citizens save far more of their disposable income than most other Europeans and so the overall impact of such moves could be bigger. The country’s savings rate was around 10% in 2017, almost twice the euro-area average, according to Deutsche Bank. On average, Germans held more than 40% of their financial assets in the form of bank deposits in 2018.One in two Germans would probably change lenders if their own bank resorts to negative rates, according to a study by management consultant Investors Marketing. “Lenders must be aware that they will not easily win back customers they have lost due to these measures,” said Chief Executive Officer Oliver Mihm.(Bank lobby statement added in 8th paragraph)To contact the reporter on this story: Stephan Kahl in Frankfurt at email@example.comTo contact the editors responsible for this story: Daniel Schaefer at firstname.lastname@example.org, Ross LarsenFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- The European Central Bank began its official transition to a new benchmark short-term interest rate Wednesday, as global regulators move away from tainted Libor gauges.The new rate, known as ESTR, which reflects overnight borrowing costs of banks in the monetary bloc, fixed at -0.549% for Oct. 1, the central bank said on its website.The shift comes as similar actions are underfoot in sterling and dollar markets after a rigging scandal with the London interbank offered rate undermined confidence in indexes used as benchmarks for roughly $370 trillion of financial products worldwide. In the euro area, regulators are trying to push market participants away from the traditional Euribor and Eonia measures.By some measures, the euro area has lagged behind other regions in the shift from the much-maligned older benchmarks. U.S. companies have been selling debt linked to the new American reference rate for nearly a year and in the U.K., financial markets have begun to decisively migrate to a sterling overnight rate index.The good news is that the move to ESTR may be helped by the ECB’s strategy for switching from the former benchmark rate.“The transition to ESTR should be pretty straightforward given Eonia will now be computed as a tracker off this new rate,” said Adam Kurpiel, a strategist at Societe Generale SA. “Euro money-market derivatives will also benefit from all the Eonia infrastructure. It should be much smoother than in the U.S. where new markets had to be created from scratch” for their new benchmark -- the secured overnight financing rate.The inauguration of the new rate follows ECB’s years of preparation including the release of pre-ESTR data starting March 2017 through mid-September of this year.Here’s how it works:ESTR rate published daily 7 a.m. London time for previous dayEuropean Money Markets Institute (EMMI) publishes Eonia using the new methodology at about 8:15 a.m. London timeEonia to be set at ESTR plus a fixed 8.5 basis pointsEonia will be discontinued on Jan. 3, 2022ESTR is already starting to gain traction with Germany’s L-Bank this month pricing the first sale of syndicated notes tied to the ECB’s new benchmark. Daily trading volumes in pre-ESTR have averaged about 37 billion euros ($40 billion), with the rate staying mostly at about five basis points below the ECB’s depo rate, according to UniCredit SpA.The European Investment Bank may price on Wednesday a three-year floating-rate note linked to ESTR, according to a person familiar with the matter, who asked not to be identified because they are not authorized to speak about it.The ESTR results suggest the ECB’s deposit-rate cut last month -- by 10 basis points to minus 0.50% -- is being passed on in full through the banking system. The ESTR reading released Wednesday was in line with an estimate for -0.55% from Christoph Rieger, head of rates strategy at Commerzbank AG.‘Unknown Issue’ESTR is a bank borrowing rate that relies on individual daily transactions. That compares with Eonia, a lending rate administered by EMMI that relies on voluntary contributions by banks. ESTR is a volume-weighted trimmed mean of overnight transactions. Counterparties include about 50 of the largest euro-area banks spread across 10 countries.The fixing for Oct. 1 was based on a volume of almost 36 billion euros completed between 32 banks in 432 transactions, the ECB said. The share of volume from the five largest banks was 54%.It’s not clear if the ECB’s recent move to apply negative rates differently among various banks, known as tiering, will affect ESTR. Tiering comes into effect on Oct. 30.“Because ESTR is calculated as a trimmed mean, the impact of new flows will depend on their size relative to the volume of transactions that are eligible to calculate ESTR,” said Luca Cazzulani, a strategist at UniCredit, in a note Monday. “One unknown issue is whether these new bids will go on top of existing ones or will crowd out less attractive bids.”(Updates with detail on EIB floating-rate note deal.)\--With assistance from Yuko Takeo and Piotr Skolimowski.To contact the reporters on this story: Liz Capo McCormick in New York at email@example.com;James Hirai in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Paul Dobson at email@example.com, Anil Varma, Neil ChatterjeeFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The European Union could speed up efforts to build an EU-wide capital market by creating euro denominated benchmarks for trading commodities, a new group backed by financial companies, former politicians and central bankers said on Friday. The EU launched its capital markets union (CMU) project in 2014 to encourage more companies to raise funds by issuing stocks and bonds to cut the region's reliance on bank loans. In the EU, companies are still heavy users of banks to get cash unlike in the United States where firms routinely tap the country's vast capital market to raise money by selling bonds or shares.
Moody's Investors Service ("Moody's") has determined that the proposal by Cordusio RMBS - UCFin S.r.l., Cordusio RMBS Securitisation S.r.l. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.
Italian soccer club Juventus aim to raise up to 300 million euros through a capital increase after posting a 39.9 million euro loss in the financial year ended in June, the club said on Friday. Juventus, which won Serie A championship for the last eight seasons, last year paid 100 million euros to Spain's Real Madrid to engage Portuguese striker Cristiano Ronaldo. Shareholders will vote on the rights issue in a meeting scheduled on Oct. 24.
(Bloomberg Opinion) -- Mario Draghi’s public scolding of Europe’s lenders this week matters more than what he did for them.Banks in the region have long complained of the squeeze negative interest rates are putting on their profits — upending their traditional business model of borrowing money for the short term to lend to clients in the long run. But there’s little they can do to ease the pain: Charging ordinary citizens to hold their deposits, for example, is controversial and may even be illegal. As he cut rates deeper into negative territory this week, the president of the European Central Bank showed that he had listened to these complaints, announcing a package of measures to spare banks some of the pain of negative rates. But he accompanied this with a blunt message: Banks need to get their own houses in order.While there’s a growing acceptance that the industry will be hurt by a prolonged spell of low rates, there’s a danger that this becomes an excuse for executives to shrug their shoulders and accept that returns won’t improve. That’s wrong.Draghi didn’t mince his words on what bank executives could be doing instead of venting their anger. Costs at some European banks are “completely way off,” he said, without identifying any individual firm. And banks should be investing more in technology. He’s right on both counts.While there’s significant divergence between lenders, expenses ate up more than 70% of revenue at some of France’s biggest banks last year, and even more at their German counterparts — levels that are not sustainable. Deutsche Bank AG’s latest (and long overdue) turnaround effort should see its cost-income ratio finally fall to a more sustainable 70% in three years from closer to 94% last year. Yet Chief Executive Officer Christian Sewing has been among the most vocal on the consequences of negative rates.France’s Societe Generale SA is studying ways to save a further 600 million euros at its Paris operations. Italy’s UniCredit SpA is considering a further 10,000 job cuts. More than a decade after the financial crisis, banks — when pushed — still seem to be able to find excess capacity to cut.Draghi also had some advice for what should be getting executives more excited: technology. Hampered by old, often overlapping, systems that continue to soak up expenses, lenders have been slow to jump on the digitization bandwagon.They have also found themselves at the center of money-laundering scandals that are costing them in fines. Technology can help them: Dutch banks are teaming up to build algorithms to prevent the flow of illicit funds, a move other lenders could copy.To be sure, investing in technology and cutting fat comes with upfront costs that could further erode short-term profit, hurting investors. Labor opposition has also proven difficult to overcome. When Deutsche Bank and Commerzbank AG weighed a merger earlier this year, unions made it very clear they weren’t in favor of the tens of thousands of job cuts that would have been needed.But this medicine is necessary — for the sake of all of us. We may be approaching a level at which the industry’s meager profitability forces some European lenders to scale back, a problem in a region where companies still rely on bank lending rather than the bond market for the bulk of their borrowings. Short-term loans show signs of weakness, Draghi warned on Thursday. That’s a worrying prospect.The departing president’s latest message could not have been clearer. Industry leaders should listen.To contact the author of this story: Elisa Martinuzzi at firstname.lastname@example.orgTo contact the editor responsible for this story: Stephanie Baker at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Elisa Martinuzzi is a Bloomberg Opinion columnist covering finance. She is a former managing editor for European finance at Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
European banks have stepped up their protest against rock-bottom interest rates ahead of a central bank meeting expected to underpin a policy that tramples their profits and has even pushed some to offer free loans. The president of Germany's powerful savings banks association, community lenders that dominate the country's shopping streets, joined Dutch bank ING on Tuesday in criticising the European Central Bank's loose monetary policy. Low interest rates coupled with penalty charge on banks that hoard cash is making it more expensive for the banks to hold customers' savings and less profitable to lend.
(Bloomberg) -- Infobip Ltd., a Croatian software supplier for companies including Uber Technologies Inc, has tapped a former investment banker as chief financial officer as it weighs an initial public offering.Mario Baburic is to take up the role that wasn’t covered at the company, effective immediately, according to a statement from the Croatian firm. Previously, Baburic headed corporate finance operations for UniCredit SpA’s Croatian unit until 2012 and then moved on to run global business development at Podravka, a Croatian food producer. He also founded Creative Fields Holding, a technology startup.Infobip is considering holding an IPO in New York, while also looking at other options to raise cash as it eyes expansion in the U.S., Chief Executive Officer Silvio Kutic said in August.The company provides corporations with technology to send notifications to customers through different channels, such as WhatsApp or text message. Among other things, the technology allows companies to mask contact details between employees and customers. Infobip clients include Vodafone Group Plc and Costco Wholesale Corp.To contact the reporter on this story: Rodrigo Orihuela in Madrid at firstname.lastname@example.orgTo contact the editors responsible for this story: Giles Turner at email@example.com, Molly SchuetzFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.