|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||40.58 - 41.28|
|52 Week Range||38.13 - 56.94|
|Beta (3Y Monthly)||1.69|
|PE Ratio (TTM)||6.78|
|Earnings Date||Jul 31, 2019|
|Forward Dividend & Yield||3.02 (7.36%)|
|1y Target Est||61.49|
(Bloomberg) -- Sign up for Next China, a weekly email on where the nation stands now and where it's going next.China is the one place with a dovish central bank that’s yet to see a spectacular rally in government debt.Including interest payments, the country’s bonds have dropped 0.02% since April, the worst performance among the world’s biggest debt markets. That’s even as the People’s Bank of China signaled its readiness to support the economy, with Governor Yi Gang saying he sees “tremendous” room to adjust policy. Authorities have also repeatedly injected cash into the financial system, boosted liquidity to support smaller banks and ramped up aid to small firms.What gives? Theories include the protracted trade dispute with the U.S., concerns about credit risks after the surprise seizure of a local lender, a flurry of issuance in municipal bonds and a volatile yuan. While the European Central Bank and the Federal Reserve helped send more bonds than ever into negative-yielding territory this week, China’s benchmark 10-year yield hovers stubbornly around 3.3%.“Expectations for PBOC easing aren’t as strong,” said David Qu, who covers China at Bloomberg Economics. “The market has also been waiting for the central bank to accommodate the surge in supply of municipal bonds with more liquidity, but that’s not fully in place yet.”The shock over the government’s seizure of Baoshang Bank to address its credit risks in late May is still rippling through the financial system. Bond traders now reluctant to accept riskier notes as security have clogged up funding among financial institutions, in turn pushing up borrowing costs for brokerages and smaller banks.China also hasn’t actually cut benchmark interest rates since 2015, although it has taken other easing measures, including lowering the amount of money that banks have to put into reserves.A surge in supply of municipal debt isn’t helping either: some 328 billion yuan ($47 billion) of local government bonds will be issued this week, the most this year, data compiled by Bloomberg showed. China’s 10-year government bond yield continues to trade within a narrow 10-basis-point band, and hasn’t dropped below 3% since 2016.Not all is lost for Chinese bonds, though. Global investors may buy into the market now that yields are more attractive than those overseas, according to Kiyong Seong, an Asia rates strategist at Societe Generale SA in Hong Kong. The widening gap between U.S. and Chinese sovereign yields has enticed buyers before.Chinese bonds also tend to be less correlated with shifts in global sentiment, making them a good option for investors looking to diversify, said Charles Chang, Hong Kong-based head of Asia credit strategy at BNP Paribas SA.For now, the many domestic headwinds in China are keeping it from joining in the global bond rally, outweighing signs of support from the PBOC.“Investors have been concerned about the risk of a weaker yuan and the long-term prospects of China assets,” said Seong. “An acceleration in local government bond issuance and sporadic noise in China’s financial market such as the Baoshang case have made investors more cautious.”The yield on the most actively traded contract of 10-year government bonds was little changed at 3.26% as of 3:51 p.m. on Friday.(Updates with Friday trading.)\--With assistance from Yuling Yang.To contact Bloomberg News staff for this story: Livia Yap in Singapore at email@example.com;Claire Che in Beijing at firstname.lastname@example.org;Jing Zhao in Beijing at email@example.comTo contact the editors responsible for this story: Sofia Horta e Costa at firstname.lastname@example.org, Magdalene FungFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The European Commission sought to boost the flow of private money to tackle climate change on Tuesday by publishing guidelines on what qualifies as environmentally friendly investment, in a move welcomed by the financial industry. The European Union has agreed to substantial reductions of carbon emissions by 2030 and its executive, the Commission, wants the bloc to reduce them to zero by 2050 to help stop global warming, the rise of average worldwide temperatures. To cut emissions by 2030, many sectors of the economy, such as manufacturing, agriculture and energy, require an extra annual investment of between 180 and 290 billion euros and even more is needed to achieve zero emissions by 2050.
(Bloomberg Opinion) -- Suppose you like to play the horse races, and your bookie tells you he has developed a surefire, computer-generated formula for picking winners. It’s based on hundreds of variables such as the weather and a horse’s age, and he has “backtested” it on 20 years of track history. Now he’s offering to let you bet $50,000 using the formula’s recommendations.Would you do it? How can you be sure that the historical success isn’t a fluke? Even worse, what if he deliberately designed his formula to look better than it is, so he can take your money at odds he knows are in his favor? Backtesting is a complex statistical process that can generate misleading results. Often, formulas that do well in hindsight -- for example, by picking winning horses or stocks -- don’t work in the real world. They can even be engineered to “fit” the past by incorporating hundreds of coincidences that have zero predictive value.Financial companies spend a lot of time and effort creating proprietary indexes that backtest well, so they can sell various investments based on them. Industry rules generally bar brokerages from marketing backtested results to retail investors, because of skepticism that such results have any predictive value. But insurers face less stringent oversight, so their marketing materials often show how well the indexes on which they base their products would hypothetically have done in the past.The National Association of Insurance Commissioners is considering tightening rules on how long an index must exist before its historical results can be used in investment-product illustrations, sparking a debate between industry groups and consumer advocates. The former argue that the proliferation of engineered indexes is great for consumer choice. The latter say that savers need much better protection from investments based on indexes that may not perform as well as their marketing materials suggest.Who’s right? To get a sense, let’s look at how some actual backtested indexes perform after they’re launched in the real world.Consider the BNP Paribas Multi-Asset Diversified 5, the index driving an Athene insurance product that an agent marketed to me. Here’s a chart from an Athene brochure, with 12 years of backtested data that appear to show how the index would have delivered a comparable return to the S&P 500 with less volatility (never mind that the chart excludes the dividends that an investor in the S&P 500 would have received):The picture, however, looks very different if we focus on the period since January 2016, when the index was actually launched. A $100 investment would have grown to just $112 in the MAD 5 index, compared with $159 in the S&P 500 (dividends included):Next let’s explore the NYSE Zebra Edge Index, which insurer Nationwide employs in some of its investment products. A Nationwide brochure shows how, had it existed, the Zebra would have beaten large-cap U.S. stocks for decades:But how has the Zebra performed against large-cap stocks since its actual inception in October 2016? It’s up about 16%, compared with 37% for the S&P 500 (again, dividends included).These aren’t isolated examples. Time and again, indexes marketed by insurers fail to fulfill the promise suggested by their hypothetical histories. Granted, the insurers tend to include footnotes such as Nationwide’s, which states that “past performance is not indicative of, nor does it guarantee future performance.” But if the backtested illustrations are no guide, then why use them at all? (An Athene spokeswoman said that the hypothetical data “provides more information on the index that should help the comparison." Nationwide did not respond to questions by time of publication.)All too often, the hypothetical illustrations serve to draw retail investors into illiquid, complex and fee-laden products, which have no inherent advantage over cheaper, mainstream strategies. Given the number of Americans already likely to fall short of their retirement goals, this is a serious problem.What to do? I have three recommendations for insurance commissioners.Follow the guidelines set out by the Financial Industry Regulatory Authority in the brokerage context: Don’t allow communication or display of backtested results to any prospective retail insurance customer. Require indexes to be fixed and in existence for 20 years - enough to prove themselves through several market cycles - before they are used in any illustration of projected returns. Require all marketing materials and illustrations to compare the offered products’ actual historical returns to those of mainstream, investable indexes -- including the dividends that investors in those indexes would receive.Retail investors can’t be expected to understand all the ways in which backtesting can make an investment look much more attractive than it is. Only better regulation can give them the protection they need.To contact the author of this story: Ethan Schwartz at email@example.comTo contact the editor responsible for this story: Mark Whitehouse at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Ethan Schwartz has worked as an investment manager and financial services executive for 21 years. He was a special assistant to the deputy secretary of the Treasury in the Clinton administration. For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
A merger of BNP Paribas España into BNP Paribas is being considered. The terms of this potential merger were approved by the Boards of Directors of BNP Paribas España and BNP Paribas during their respective meetings on March 28, 2019. The merger project, signed on March 28, 2019, will be submitted to the shareholder’s General Meeting of BNP Paribas España for approval on June 7, 2019.
Jean-Laurent Bonnafe became the CEO of BNP Paribas SA (EPA:BNP) in 2011. First, this article will compare CEO...
PayPal Holdings Inc has invested 10 million euros ($11.2 million) in Tink, a Swedish company that enables banks and financial technology startups to access financial data more easily, the companies said on Tuesday. The San Jose, California-based payments company will use Tink's technology to allow customers to connect their bank accounts to their PayPal accounts, the firms said. Tink will use the funding to expand its team, build new products and connect to more banks, it said.
The company may dispose of its holdings in Guinea, Burkina Faso and Mali, its Conakry-based unit, Banque Internationale pour le Commerce et L’Industrie de la Guinee, said in a statement posted on the website of Guineenews.org, a news service. While BNP doesn’t intend to withdraw from the continent, it seeks to refocus “its activities” to bolster businesses in markets that play to its strengths, the company said. BNP holds a 56% stake in the Guinea-unit, according to the local lender’s annual report for 2017.
Futures advanced 0.9% in New York on Tuesday. “A lot of guys looked at the washout we saw last week as an opportunity,” said Phil Streible, senior market strategist at RJO Futures Group Inc. in Chicago. Flows on a key Russian pipeline resumed to central Europe on Monday after a contamination scare, while U.S. President Donald Trump blunted some of his rhetoric against Iran.
An indictment of two former London investment bankers filed by Cologne prosecutors in April lists 34 cases of tax evasion via the transactions, according to people familiar with the proceedings. While the case focuses on the pair who structured the deals, prosecutors have outlined the roles of several financial institutions in the complex transactions.
HARRISBURG, Pa. (AP) — Pennsylvania's treasury department is accusing about a dozen large financial firms of working together to illegally inflate the price of bonds issued by Fannie Mae and Freddie Mac over seven years.
A majority of BNP Paribas shareholders have renewed the mandate of CEO Jean-Laurent Bonnafe to serve as a member of the bank's board. Thursday's vote, in which about 96% of shareholders present at the bank's annual general meeting supported the CEO, is a clear show of confidence in Bonnafe who has been at the helm of BNP Paribas since 2011. In a separate vote, a majority of shareholders also approved Bonnafe's salary for 2018.
(Reuters) - Investment bank BNP Paribas said on Thursday it now saw a 40% probability of Britain exiting the European Union without a transition agreement in place. The estimate has been raised from the ...
A U.S. appeals court on Wednesday revived a lawsuit against BNP Paribas SA (BNPP.PA) by alleged victims of a genocidal regime in Sudan, who sought to hold the French bank liable for aiding in the government's atrocities. The 3-0 decision by the 2nd U.S. Circuit Court of Appeals in Manhattan came nearly five years after BNP Paribas pleaded guilty and agreed to pay an $8.97 billion penalty to settle U.S. charges it transferred billions of dollars for Sudanese, Iranian and Cuban entities subject to economic sanctions. Circuit Judge Barrington Parker said claims against BNP Paribas based on genocide in Sudan were subject to U.S. judicial review, and a lower court judge erred in concluding otherwise.
A U.S. appeals court on Wednesday revived a lawsuit against BNP Paribas SA by alleged victims of a genocidal regime in Sudan, who sought to hold the French bank liable for aiding in the government's atrocities. The 3-0 decision by the 2nd U.S. Circuit Court of Appeals in Manhattan came nearly five years after BNP Paribas pleaded guilty and agreed to pay an $8.97 billion penalty to settle U.S. charges it transferred billions of dollars for Sudanese, Iranian and Cuban entities subject to economic sanctions. Circuit Judge Barrington Parker said claims against BNP Paribas based on genocide in Sudan were subject to U.S. judicial review, and a lower court judge erred in concluding otherwise.
BNP Paribas said on Wednesday it hired Dominique Toublan as its chief U.S. credit strategist, who will be based in New York and report to Rich Edelman, the bank's head of credit trading desk analysts in the Americas. Prior to joining BNP, Toublan was a credit derivatives strategist at J.P. Morgan's investment-grade strategy team. BNP also said it appointed Reena Patel as senior credit trading desk analyst with a focus on investment-grade healthcare and technology, media and telecom (TMT) sectors.
BNP Paribas Asset Management, the asset management arm of the French bank, on Tuesday named Rob Gambi as global head of investments, based in London. Gambi, an asset management veteran with three decades ...
Barclays, Citigroup , HSBC, JPMorgan and three other banks are set to be fined by EU antitrust regulators in the coming weeks for rigging the multitrillion dollar foreign exchange market, two people familiar with the matter said. The other three lenders are Royal Bank of Scotland, UBS and a small Japanese bank, the people said.
Delta Air Lines, The Financial Times and Bain & Co have pulled out of an event in New York honoring Brazilian President Jair Bolsonaro, the firms said on Thursday, as the South American leader faces blowback for racist and homophobic comments. Bolsonaro is due to be honored as the 2019 Person of the Year at the Brazilian-American Chamber of Commerce dinner. The gala, which already had to move from its original venue at New York's American Museum of Natural History after the museum decided not to host, is sponsored by various blue-chip firms, which have come under pressure to ditch their support of the event.