|Bid||0.0000 x 0|
|Ask||0.0000 x 0|
|Day's Range||3.3700 - 3.5500|
|52 Week Range||3.3700 - 7.7400|
|Beta (5Y Monthly)||1.65|
|PE Ratio (TTM)||2.11|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Apr 19, 2020|
|1y Target Est||N/A|
Five-year South Africa credit default swaps rose to a fresh 11-year high of 506 basis points, up from 486 basis points at Thursday's close, according to IHS Markit data. Turkey CDS reached 631 bps, a rise of 15 bps, to the highest point since October 2008, the data showed.
Rating Action: Moody's affirms ratings of UniCredit Bank AG and UniCredit Bank Austria AG, changes outlooks to negative. Global Credit Research- 01 Apr 2020. Frankfurt am Main, April 01, 2020-- Moody's ...
Italy's biggest bank by assets, UniCredit SpA , said on Tuesday its top managers had decided to waive their entire 2020 bonus pay and that the bank would donate an equivalent amount to the UniCredit Foundation to support social initiatives. "The UniCredit Remuneration Committee ... welcomed and appreciated the responsible managerial decision, considering the uncertain impact on the European economy of the current COVID-19 epidemic and its evolution over the next months," the bank said in a note. Earlier on Tuesday, the head of rival heavyweight Intesa Sanpaolo , Carlo Messina, said he was donating 1 million euros ($1.10 million) of his 2019 bonus pay to support healthcare projects to fight the coronavirus, while another 5 million euros would be donated by the 21 top managers reporting directly to the CEO.
European banks dropped on Monday after the chief regulator for the region recommended no dividend payments be made until the autumn, though the broader market turned higher after a strong start on Wall Street.
ZURICH/LONDON, March 30 (Reuters) - Banks across the euro zone are tearing up plans to return cash to shareholders at the behest of regulators, instead shoring up reserves as the coronavirus outbreak threatens to tip the world into a deep recession. As measures to fight the pandemic lead to a paralysis of economic activity, banks are on the front line in a battle to keep cash-starved businesses alive, although lenders in other countries such as Switzerland and the United States, in stark contrast, are pushing ahead with dividend payments regardless. The European Central Bank told lenders last week to skip dividends and share buybacks until at least October, estimating they could save 30 billion euros through such steps, and instead direct profits towards supporting the economy.
European shares fell for the second straight session on Monday, as fears about the economic hit from the coronavirus pandemic intensified with several nations extending near-total lockdowns to curtail the spread of the flu-like disease. The pan-European STOXX 600 index was down 0.8% at 0714 GMT, with energy, industrials and travel and leisure stocks leading declines. The banking sector tumbled another 2.5%, bringing its monthly losses to more than 28%, with UniCredit, ING and ABN Amro among the first set of lenders to comply with the ECB's appeal to freeze dividends in a bid to shore up credit.
UniCredit on Sunday became the first Italian bank to comply with regulatory calls to preserve capital to support the economy against the coronavirus, putting on hold plans to pay dividends on 2019 results and to buy back shares. The European Central Bank told euro zone banks on Friday to skip dividend payments and share buybacks until the start of October at the earliest and use profits instead to boost capital and their ability to withstand losses and to lend. UniCredit, Italy's largest bank by assets, said it was withdrawing a proposal for shareholders to approve a dividend of 63 euro cents per share and authorise a share buyback for up to 467 million euros ($520 million) when they meet on April 9.
Rating Action: Moody's takes actions on 15 Italian banks. Global Credit Research- 26 Mar 2020. Virus-related shock drives negative outlooks and reviews for downgrade.
UK banks are stepping up fraud prevention measures to protect customers from scammers eager to exploit the coronavirus pandemic with a whole range of new tricks, including fake sales of medical supplies and bogus government relief schemes. With British households effectively on lockdown, some banks said customers had already been caught out by fraudsters posing as banks, government and even health service providers to persuade victims to hand over passwords or other sensitive data. Barclays, HSBC, Lloyds Banking Group and Royal Bank of Scotland have launched social media campaigns to flag ploys.
(Bloomberg) -- As the U.K. awoke to unprecedented peacetime limits on freedom of movement, a core band of finance professionals still had to find their way to the office.Deutsche Bank AG and Credit Suisse Group AG armed “critical staff” with letters in case authorities demanded documentation to explain why they were out and about. Barclays Plc covered Uber rides for some employees avoiding public transport. UniCredit SpA checks to make sure none has a fever.Banks still need traders on the front lines to take on the wild swings in just about every asset class. The push-pull of coronavirus fallout and policy makers’ response -- how deep will the global recession be? -- have fueled market chaos around the world. There was no need for the top brass to change their behavior in the wake of Prime Minister Boris Johnson’s announcement late Monday that all unnecessary movement of people was banned for at least three weeks. Senior executives have been working remotely for weeks as the coronavirus pandemic ravaged much of Europe and began spreading illness and alarm throughout Britain.In contrast to the financial crisis a decade ago, when groups of bankers and policy makers huddled to bail out the financial system, best practices now force key players to communicate without body language or that tell-tale raised eyebrow.“So much of crisis management is looking people in the eyes,” says Philip Hampton, who was named chairman of Royal Bank of Scotland Group Plc after the bank was bailed out in 2008. “In a crisis you often have to pack everything up and work through the night. You have to be there with the lawyers and the contractual documents and I don’t see how all of that can be done remotely.”Take the leaders of Standard Chartered Plc. The top three executives, Chief Executive Officer Bill Winters, Chief Financial Officer Andy Halford and Chief Risk Officer Mark Smith, haven’t met in person for three weeks to avoid risk they get infected at the same time, a person with knowledge of the bank’s plan said.At Lloyds Banking Group Plc, CEO Antonio Horta-Osorio is running the U.K.’s biggest retail lender from his home.“I am now running the bank with a much shorter horizon and I am now having virtual meetings,” he said at a virtual financial services conference hosted by Morgan Stanley last week. “Our planning cycle has shortened significantly.”Mortgage Bonds Rattle Wall Street Anew With Rush of Urgent SalesA government list of “key workers” who can still go to the office includes “staff needed for essential financial services provision,” giving banks some leeway in organizing their staff. And while desks are largely barren, some have been asked -- or told -- to make their way to an office: Equity and credit markets melting down and volatility is off the charts.At Lloyds, a trader drove his own car through the traffic-less metropolis instead of using public transport. Deutsche Bank’s critical employees comprise mostly traders and security staff. The few Commerzbank AG employees showing up to the office are being discouraged from taking public transport, with car parking, bike parking and even company accommodation provided.At Goldman Sachs Group Inc., only staff performing “essential functions” should go to the office, Richard Gnodde, who heads its international business in London, said in a memo to its staff.Italian companies, applying harsh lessons learned at home, have most staff working from home.UniCredit, Italy’s biggest bank by assets, has adopted the same standards for all its offices. In London, like in Milan and Munich, there is a rotation system and traders are deployed to different floors. The bank checks each employee’s body temperature, and it pays the commute for all of them to avoid public transport.Of Mediobanca SpA’s 100-person London staff, all are working from home except for about five traders who rotate in the office.Home or not, there are still standards to be maintained.RBS Chairman Howard Davies turned up on Bloomberg TV Tuesday morning via FaceTime wearing a white shirt and a tie against a backdrop of book shelves.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The cost of insuring debt issued by China and Italy, two of the countries worst hit by the coronavirus outbreak, against default fell on Tuesday. Five-year credit default swaps for China reached 66 basis points, down 7 bps from Monday's close, while Italy's edged down 9 bps to 183 bps, data from IHS Markit showed. The death toll in Italy rose by 602 on Monday, the smallest increase for four days, and the number of new cases also slowed.
The cost of insuring exposure to debt issued by major oil exporters Saudi Arabia and Russia surged on Monday, with China, Turkey, South Africa and Italy also seeing significant climbs as fears persisted over the impact of the coronavirus outbreak. Saudi Arabia, which started an oil price war over a failure to agree a production cut with Russia, saw its five-year CDS soar to a record high of 233 basis points, up from 198 bps at Friday's close, IHS Markit data showed. Russia's CDS added 35 bps to 301 bps, the highest in four years.
Banks and their supervisors must remain vigilant in light of the evolving nature of the COVID-19 epidemic to ensure that the global banking system remains financially and operationally resilient, global regulators said on Friday. The Basel Committee of banking supervisors from the world's main financial centres said it held a teleconference on Friday and supported measures taken by members so far.
Italian banks are in much better shape at present than at the onset of the global financial crisis in 2008, after boosting their capital buffers and shedding problem loans as well as domestic government bonds, the central bank said on Wednesday. In a letter to the New York Times written in answer to an article on the dangers facing the country's banking system, the Bank of Italy pointed out that Italian banks' core capital stood on average at 14% of total assets at the end of last year, double the level of end-2007. Higher capital reserves allow the industry to better weather losses as a coronavirus outbreak is seen plunging the Italian economy into a deep recession, bankrupting companies and hurting banks' balance sheets.
(Bloomberg) -- European Central Bank President Christine Lagarde unveiled a calibrated package of stimulus, spearheading the region’s financial response to the coronavirus with measures intended to “surgically” support key parts of the economy.Warning of a “major shock” to prospects for global growth, Lagarde and colleagues crafted what she called a “comprehensive” program to support activity by helping companies to stay in business and banks to keep lending. They promised to buy more bonds, and enhanced a loan program with terms that effectively amount to an interest-rate cut for banks that use it to pump money into the economy.The move failed to stem a global stock rout however, which resumed even after the U.S. Federal Reserve took aggressive steps to add liquidity to Treasury financing markets. Meanwhile a stumbled comment by Lagarde on bond spreads had already caused Italian yields to surge.Observers were divided on the overall effectiveness of the package. Erik Nielsen, group chief economist at UniCredit, said that it was “pretty good” with enormous liquidity on “amazingly attractive terms.” By contrast, Roberto Perli at Cornerstone Macro said that the stimulus was “not entirely weak, but was not overwhelming either.”Overshadowing the presentation of the package at a press conference in Frankfurt was Lagarde’s observation that “we are not here to close spreads,” a declaration met with alarm by investors focused on Italy, the economy suffering the region’s worst outbreak of the virus. Widening bond spreads are reminiscent of the debt crisis in 2012 that almost splintered the euro zone. “I don’t understand why she said that,” Nielsen told Bloomberg Television. “As the head of the ECB, she should be very concerned about spreads, because spreads prevent the ECB from having a proper transmission mechanism.”Lagarde backpedaled a bit in an interview with CNBC, saying that the ECB is mindful of fragmentation risks and its tools will be completely available to Italy.A centerpiece of her message on Thursday was to urge governments to form “an ambitious and coordinated fiscal policy response” to match the ECB’s new injection of liquidity. She called for “decisive and determined” action by finance ministers as soon as Monday, when they meet.The dramatic escalation in the ECB’s own response after weeks of monitoring the worsening outbreak arrived in parallel with news of a loosening in Germany’s reluctant stance toward fiscal easing, though still laced with caution. One day earlier, the U.K. had delivered a coordinated package including an emergency interest-rate cut, complementing a 30 billion-pound ($38 billion) budget stimulus.European stocks extended a slump in the hours after the ECB announcement, with the Stoxx Europe 50 Index down more than 12% at the close. The euro fell as much as 1.9%. Italian bonds plunged.Questioned on the market reaction, Lagarde said it takes time for such decisions to be analyzed and appreciated.Where she defied investor expectations on Thursday was in keeping the deposit interest rate at minus 0.5%, staving off pressure for a cut deeper below zero. With negative interest rates hurting banks and irking some voters in northern European countries, the arguments in favor of shunning such a move were clearly persuasive.No rate cut was even on the table in the meeting as policy makers considered that there was little that monetary policy alone could do to respond to the crisis, according to people familiar with the matter.Read more: No ECB Officials Suggested Rate Cut Despite Market ExpectationsThe TLTRO measure has possibly created a dual-rate regime through the back door, by allowing the rate offered on the program -- which would be used by banks to lend into the real economy -- to fall by as much as a quarter-point below the deposit rate. The ECB’s package also opens a new dimension to the central bank’s crisis toolkit by marrying liquidity provision with an easing of capital demands.“It looks actually quite promising,” said Anatoli Annenkov, senior economist at Societe Generale SA. “They are clearly sending a signal that liquidity should not be an issue. On that level it’s a positive, and I’m maybe surprised a little bit that the market reaction is so poor.”What Bloomberg’s Economists Say...“We expected Christine Lagarde to heed calls for stimulus and the European Central Bank president did not disappoint. Much more favorable conditions on TLTRO-III will support lending and offer some support to businesses in Europe disrupted by the coronavirus outbreak, though governments will still need to do their part.”\--By Maeva Cousin, David Powell and Jamie RushClick here for the full reportLagarde’s call for governments to take timely action has yet to be heeded throughout Europe. While indebted Italy has added stimulus, Germany in particular has been reticent. Still, it is prepared to abandon its long-standing balanced-budget policy, according to people with direct knowledge of its economic policy.“The central bank acted decisively,” Bundesbank President Jens Weidmann told Bloomberg. “Health and fiscal policy is, however, required to be in the front line of combating the causes and the immediate consequences.”(Updates with Fed move in third paragraph)\--With assistance from Piotr Skolimowski, Jana Randow, Katerina Petroff, Daniel Schaefer, Alexander Pearson, Alexei Anishchuk, Catherine Bosley, Craig Stirling, Fergal O'Brien, Brian Swint, Zoe Schneeweiss, Lucy Meakin, William Horobin, Jeannette Neumann, David Goodman, Guy Johnson, Vonnie Quinn and Iain Rogers.To contact the reporters on this story: Carolynn Look in Frankfurt at firstname.lastname@example.org;Craig Stirling in Frankfurt at email@example.comTo contact the editors responsible for this story: Paul Gordon at firstname.lastname@example.org, Jana RandowFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Italy on Thursday moved to virtually bring a halt to normal life, paring the economy down to just essential services in a desperate bid to stem the advance of the deadly coronavirus.Prime Minister Giuseppe Conte ordered all shops in the country to close except for grocery stores, pharmacies and few others until March 25. The total number of fatalities from the virus has risen to 1,016 from 827, and total cases now stand at 15,113, up from 12,462, civil protection officials said.Public transportation as well as financial and postal services will continue, but the country’s normally vibrant restaurants, cafes and bars will be shut. UniCredit SpA and Intesa Sanpaoloa SpA, the country’s biggest banks, said on Thursday that only some branches will remain open.Factories can continue operating, but only with “precautions,” the premier said in a televised address Wednesday. The government -- which extended a lockdown for Lombardy and other northern provinces to all of Italy this week -- also recommends non-critical facilities be closed. CNH Industrial NV said it will shut down its Italian operations.“Effects of those measures will be seen in couple of weeks, so cases can still increase in coming days,” Conte said.Conte’s fragile government is under intense pressure to take more drastic measures from governors in the north -- the economic engine of the country and the region hardest hit by the virus.Restaurants ClosedThe benchmark FTSEMIB Index dropped 17%, led by shares of Enel SpA, which lost 19.9%.As a consequence of Conte’s latest emergency decree, all bars and restaurants are shutting their doors, while food deliveries will be allowed to continue.That may be of little help for unsettled Italians. Delivery times for food ordered from Esselunga SpA, one of Italy’s largest supermarket chains, are as long as nine days in Milan.Conte has tried to reassure Italians that no more measures would be coming. He also tried to stem the risks of hoarding, saying there is no need for citizens to rush to buy food, adding that banking will be guaranteed.About 70% of Italians supported the measures taken by the government, according to a SWG poll on March 10. Most said they were expecting even more restrictive actions, before the latest steps were approved.Still, online shopping will be available without restrictions and Italians can also continue buying newspapers at their kiosks and tobacconists. Also electronic shops and gas stations are among the businesses that will remain open, while barber shops and hairdressers will shut down, according to the decree posted on the government’s website.On the corporate side, most company annual meetings will be postponed or may be held via video calls, Corriere della Sera reported. Banca Monte dei Paschi di Siena SpA was scheduled to present its board membership proposal on Thursday, the first since CEO Marco Morelli said he won’t seek to extend his term.Economic ReliefOpposition leader Matteo Salvini of the northern-based League party applauded the move. For days, he had been pushing for further restrictions and for more economic relief as the small entrepreneurs and families that make up his electoral base grapple with the fallout of the pandemic.To handle coordination of the virus response and to speed up production of key medical supplies, Domenico Arcuri -- chief executive officer of Invitalia, a state-owned company that promotes investment -- was appointed as emergency czar.Italy is becoming increasingly isolated, with neighboring countries partially closing the borders. Austria and Slovenia have restricted entry to those who have tested negative to coronavirus while Switzerland sealed off nine minor crossings.Conte and German Chancellor Angela Merkel agree that tackling the spread of coronavirus requires Europe-wide coordination, the Italian government said in a statement commenting on a phone call between the two leaders. All necessary measures must be taken, the government said.(Updates with latest figures in fifth paragraph, Conte and Merkel in last.)\--With assistance from Ross Larsen.To contact the reporters on this story: Jerrold Colten in Milan at email@example.com;Marco Bertacche in Milan at firstname.lastname@example.org;Tommaso Ebhardt in Milan at email@example.comTo contact the editors responsible for this story: Chad Thomas at firstname.lastname@example.org, Benedikt KammelFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The European Union's banking watchdog said it has postponed this year's stress test of lenders until next year so that banks can focus on their businesses during the coronavirus epidemic. The European Banking Authority said the postponement of the stress test will allow banks to prioritise continuity in core operations, including support for customers. "For 2020, the EBA will carry out an additional EU-wide transparency exercise in order to provide updated information on banks’ exposures and asset quality to market participants," EBA said in a statement.
European banks took heart from the Bank of England's plan to defend Britain's economy from the effects of the coronavirus outbreak, pushing stock prices up and the cost of insuring against default down. The move raised expectations for a similar response from the European Central Bank on Thursday, driving the euro zone banks index 1.5% higher and putting them on track for their first gain in two weeks. Britain's finance minister, Rishi Sunak, said he would do whatever it took to protect the UK economy from the global epidemic, shortly after the BoE slashed interest rates and gave banks permission to tap capital reserves in a stimulus package aimed at thwarting recession.