STAN.L - Standard Chartered PLC

LSE - LSE Delayed Price. Currency in GBp
713.20
-1.00 (-0.14%)
At close: 4:35PM BST
Stock chart is not supported by your current browser
Previous Close714.20
Open719.40
Bid713.20 x 0
Ask713.40 x 0
Day's Range706.80 - 722.40
52 Week Range514.20 - 742.60
Volume4,926,999
Avg. Volume8,220,053
Market Cap23.087B
Beta (3Y Monthly)0.90
PE Ratio (TTM)38.55
EPS (TTM)18.50
Earnings DateAug 1, 2019
Forward Dividend & Yield0.24 (3.38%)
Ex-Dividend Date2019-03-07
1y Target Est8.78
  • Financial Times17 hours ago

    Whistleblowers accuse Standard Chartered of $57bn in Iran deals

    Standard Chartered has been accused of handling $56.8bn of dollars in allegedly illegal transactions with Iran-connected entities in a civil suit brought by whistleblowers against the bank. The whistleblowers allege StanChart cleared far more transactions in violation of Iran sanctions between 2009 and 2014 than the US government used as the basis for fines paid by the bank in April. The new claim filed on Thursday piles further legal woes on the emerging markets bank which has been hit with a series of penalties by US law enforcement and regulators in the past seven years for lax financial controls and for handling transactions for companies in Iran and other sanctioned countries.

  • Financial Times19 hours ago

    Bill Winters, a soft-spoken banker hits out on pay disputes

    When Bill Winters took part in a 2009 debate on the causes of the financial crisis, he took aim at “greedy bankers” who helped sow the seeds of economic catastrophe. ” Standard Chartered shareholders for protesting against his pay package, the chief executive also stands accused of avarice. Mr Winters not only served on a post-crisis UK commission that recommended tough strictures on banking, but also is soft-spoken to the point that he can sometimes be hard to hear, and has a shy, disarming smile that makes him seem younger than 57.

  • Financial Times20 hours ago

    In India, judicial over-reach exacts a price

    For a country desperate for foreign investment, India can do without judicial activism in capital markets, such as that of an insolvency appeal court that in early July removed the historic separation between secured and unsecured creditors. The consequences of such errant and capricious rulemaking will be to raise the risk premium on doing business in India.

  • Cracks in Asia Junk Bonds Shown in Fast Fall of Textile Firm
    Bloombergyesterday

    Cracks in Asia Junk Bonds Shown in Fast Fall of Textile Firm

    (Bloomberg) -- The wild ride in an Indonesia textile maker’s dollar bonds is putting a spotlight on the risks that Asia junk bond buyers are taking.Four months after a subsidiary of Indonesia’s Duniatex Group sold a $300 million bond, attracting over $1 billion of orders, that bond has plummeted, losing nearly 67 cents on the dollar this week. The stunning fall, prompted by a missed loan payment by another group subsidiary, has shocked bond investors.The Indonesian firm’s slump also highlights risks that investors face as they buy into the region’s junk bond market, which has returned 11% so far this year, the most since 2016. Recent bond defaults out of China have raised concerns about the quality of financial reports. One defaulter, Chinese firm Kangde Xin Composite Material, was found to have faked profit, according to the nation’s stock market watchdog.“Governance standards have to be stronger across the board for Asia high yield,” said Dhiraj Bajaj, portfolio manager at Lombard Odier. “Where quality standards are not met, investors should say no at any price.”S&P cut its credit score on Delta Merlin Dunia Tekstil’s dollar bonds by six steps to CCC- this week, citing its “significant liquidity challenges.” The ongoing U.S.-China trade tensions are “significantly hurting” the Indonesian textile market, and Duniatex’s liquidity was affected by plummeting prices due to the oversupply of imported cheap fabric from China, S&P also said.Fitch Ratings on Thursday cut Delta Merlin Dunia credit score to B-, reflecting “heightened refinancing and liquidity risk.” The company faces “contagion risk” from affiliates that could limit its banking and capital-market access, the ratings firm said.More stress is emerging in Indonesia. Fitch Ratings on Wednesday cut its credit score on notes sold by Agung Podomoro Land’s subsidiary, citing delays in raising funds for refinancing. The company’s $300 million 2024 bond fell 11 cents on the dollar to 70.2 on Thursday, according to data compiled by Bloomberg.‘Don’t Call or Email’The communication between Delta Merlin Dunia Tekstil and investors also highlights the difficulties bond buyers can face when things go sour.There have been concerns about disclosure in recent defaults of unlisted companies including dollar bonds sold by CEFC Shanghai International Group and Reward Science and Technology Industry Group Co.Neither Duniatex nor its subsidiary that sold the bond or the loan are listed.An email sent from a Duniatex executive to an investor that was seen by Bloomberg News, said “We will try to ring fenced DMDT as the bond issuer” from a missed payment on a loan.“We will update later, please dont call or email at this time, as my Inbox flooded with emails,” the email also said.Calls to Duniatex seeking comment went unanswered.BNP Paribas SA and Standard Chartered Plc arranged the bond sold in March. A spokeswoman for Standard Chartered declined to comment, while a spokesman for BNP Paribas also declined to comment.“This event reminds us of potential problems outside of China as well, with a lack of disclosure for private companies,” said Raymond Chia, head of credit research for Asia excluding Japan at Schroder Investment Management Ltd.(Adds details on Fitch’s rating cut in sixth paragraph.)\--With assistance from Tassia Sipahutar.To contact the reporter on this story: Denise Wee in Hong Kong at dwee10@bloomberg.netTo contact the editors responsible for this story: Andrew Monahan at amonahan@bloomberg.net, Finbarr FlynnFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • A Dangerous Debt Ruling in India
    Bloomberg3 days ago

    A Dangerous Debt Ruling in India

    (Bloomberg Opinion) -- India’s insolvency tribunal has made a dangerous decision. Unless its judgment is quashed, credit costs for India Inc. will surge, shares of state-run banks will swoon and foreign investors will flee.The case concerns the country’s most high-profile bankruptcy, Essar Steel India Ltd. Insolvency judges recently ruled that creditors whose claims are backed by collateral won’t get preferential treatment in the $6 billion sale of the company’s plant to ArcelorMittal. Secured creditors will stand in line with unsecured creditors.This isn’t how it works anywhere in the world, and for good reason. In loans backed by collateral, the lender expects to be paid first out of bankruptcy proceeds. That’s why they accept a lower interest rate than unsecured creditors in the first place. For unsecured lenders to receive any of their money back, there must be something left over after paying the secured creditors.Of the many twists and turns taken in the Essar bankruptcy, this is the most damaging. India has been attracting foreign distressed-debt specialists to help clean up its $200 billion-plus of bad loans. The ruling, if it survives, may kill that trend.Under an agreement with the Essar creditors’ committee, ArcelorMittal’s offer would have made secured financial lenders more than 90% whole. While that’s a good recovery rate, it’s less than 100%, meaning unsecured operational lenders should have had to go empty-handed. In the insolvency judges’ view, though, the committee has no role to play in distributing the sale proceeds. While collateral gives seniority in a liquidation, everyone’s equal in a bankruptcy resolution. Or so the judgment says. As a result, financial creditors will see their take shrivel to 60.7% of claims, while that of the operational creditors will swell to the same level.Those who can expect a bigger share include Standard Chartered Plc, which was complaining about being offered less than 2% of its claim after lending to an Essar Steel subsidiary. Energy companies, power utilities, and even the state tax officer will have the same rank. All operational creditors, who were going to get nothing,(1) will be on a par with State Bank of India and other financial creditors.Consider the implications for future Indian deals. If a secured creditor sells to a distressed-debt specialist, the investor will have overpaid thinking its claim would get settled first and that it would make, say, 40 cents on a 20-cent investment. That won’t happen if the bounty is to be shared much more widely, restricting the payout to, say, 10 cents.State Bank of India, which was expecting full recovery of its 110 billion rupees ($1.6 billion) debt just a few months ago, has approached India’s Supreme Court to overturn the ruling. Hong Kong-based investor SC Lowy also wants to appeal the decision. If the verdict isn’t quashed, credit costs will skyrocket at a time when Indian real-estate developers can’t even borrow at 20%.Borrowers will be willing to pledge assets, but which creditor will be able to put any value on them? Banks will steer most bankruptcies toward liquidation, leading to unnecessary job losses and higher loan-loss provisions in a capital-starved financial system. Global distressed-debt investors have been placing small bets in India, often by standing behind asset reconstruction firms. Now they’ll be unable to price the Indian opportunity.The Essar saga has already gone on for more than 600 days, when the original legal limit was 270 days. Since the billionaire Ruia family that founded Essar didn’t want to cede its crown jewel to ArcelorMittal, an intense legal skirmish was unavoidable. But if India’s 2016 bankruptcy law ends up making matters worse, then the signature reform of Prime Minister Narendra Modi needs an urgent overhaul.The Modi government, now in its second five-year term, is so desperate to ease the country’s financing crunch that it’s even willing to sell sovereign dollar debt, something India has always avoided. To seek capital from risk-averse pension funds while simultaneously repelling risk-loving private equity and vulture funds is an unfortunate distortion of priorities. (1) Only tiny suppliers were going to see any of Mittal's money.To contact the author of this story: Andy Mukherjee at amukherjee@bloomberg.netTo contact the editor responsible for this story: Matthew Brooker at mbrooker1@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andy Mukherjee is a Bloomberg Opinion columnist covering industrial companies and financial services. He previously was a columnist for Reuters Breakingviews. He has also worked for the Straits Times, ET NOW and Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Financial Times3 days ago

    StanChart investors say Winters is ‘tin eared’ on pay

    Standard Chartered’s top shareholders have reacted angrily and vowed to tackle high pay at the bank after they were branded “immature” by chief executive Bill Winters. Five top-20 shareholders in StanChart told the Financial Times on Tuesday that they were unimpressed by Mr Winters’ decision to attack shareholders.

  • Financial Times3 days ago

    Opening Quote: StanChart CEO attacks ‘immature’ investors in pay row

    The chief executive of Standard Chartered has launched a blistering attack on “immature” investors who recently staged a protest against his pay. The protest vote — the largest at a UK bank for five years — followed investor anger over a change in the way StanChart calculated pensions for top executives.

  • Financial Times3 days ago

    Winters’ discontent at StanChart pay protest is his fatal flaw

    Bill Winters, the chief executive of Standard Chartered, can sometimes seem more British than American. How many US investment bankers have advised a UK Parliamentary Commission, reviewed the Bank of England’s operations, and performed at the Young Vic theatre as a falsetto-voiced male stripper? , he appears to have forgotten what he has learnt of British political, business and thespian traditions.

  • Financial Times3 days ago

    Investors are right to target pension payments

    The battle to curb lavish executive pay in the UK tends to be fought on one front at a time. To his irritation, that has thrust Bill Winters, the US-born chief executive of Standard Chartered, into the spotlight. Mr Winters’ exasperation is partly understandable.

  • Financial Times3 days ago

    Banks lure customers with air miles and perks

    In ancient Babylon, banks began paying interest on deposits. Any of the bank’s Hong Kong depositors with enough cash in their accounts can forgo interest payments and accept instead rewards from Asia Miles, the loyalty programme owned by Cathay Pacific. “The interest rate has been so low in Hong Kong that some customers are happy to trade interest for miles,” said Samir Subberwal, StanChart’s head of retail banking in Greater China and north Asia.

  • Financial Times4 days ago

    StanChart chief blasts investors as ‘immature’ for pay revolt

    The chief executive of Standard Chartered has launched a blistering attack on “immature” investors who recently staged a protest against his pay.  Bill Winters made the comments after almost 40 per cent ...

  • Deutsche Bank's Cuts Complicate Steps to Expand Asia Clout
    Bloomberg8 days ago

    Deutsche Bank's Cuts Complicate Steps to Expand Asia Clout

    (Bloomberg) -- Job cuts and restructuring announced by Deutsche Bank AG this week risk making it harder for the German lender to claw back market share at its surviving Asian units.Over the past five years, Deutsche Bank has fallen down the rankings for Asian debt capital markets and wealth management, while it has lost the top spot to rivals in fixed-income, currencies and commodities trading. Despite these slips, the businesses contributed to a record profit for the firm in the first quarter of 2019. But retrenchments in equities, research and investment banking could make it hard to maintain that performance.“If I’m with Deutsche Bank and I’m a good performer, if I get an offer from some other firm that can better support my work with research, a global franchise, stronger flow of investment banking deals, I will probably go there,” said Sanjay Jain, head of financials at Aletheia Capital Ltd., one of Asia’s biggest independent investment-research firms.The risk is that an exodus of Asian employees would break crucial business links and test the firm’s resolve to stay “absolutely committed” to the region. Even before this week’s cull, several senior credit traders had left Deutsche Bank last year for regional competitors such as Standard Chartered Plc.Deutsche Bank saw its wealth management assets in Asia outside of China fall 4.6% in 2018 from the previous year, even though it boosted the number of relationship managers by 12%, data from Asian Private Banker show.Assets under management at the bank’s wealth business in emerging markets, including Asia, rose 10% in the first quarter of 2019 from a year earlier, a Deutsche Bank spokeswoman said by email. Revenue grew by double digits last year at businesses including the private banking unit, as well as Deutsche Bank’s key markets of China and India, she said.Deutsche Bank is also facing stiffer competition from Chinese and Indian brokerages in capital markets that value knowledge of local languages and customs, and have entrenched ties with the nations’ state-run or family-owned businesses.Its pullback from Asian equities means it could lose market share to Chinese rivals, said Sharnie Wong, an analyst at Bloomberg Intelligence. Stock coverage is vital, due to growing inclusion of Chinese shares in global indexes.“Any impact from the recent changes in the investment bank is expected to be largely manageable, partly because the areas that provide the kind of services our clients use will be relatively less affected,” Deutsche Bank said.The firm cannot be complacent about debt capital markets either. Deutsche Bank ranked third for underwriting of Asia ex-Japan bonds denominated in dollars, euro and yen as recently as 2015. But it’s currently in ninth place this year, and was No. 11 in 2018. To be sure, the bank’s ranking in the high-yield G3 currency bond underwriting league tables is higher: third so far in 2019, up from eighth in the whole of last year.Deutsche Bank expects growth across all areas of fixed-income and currencies, the spokeswoman said, pointing to top or improving rankings in certain sub-sections of the market such as global credit trading or the Euromoney FX survey. Deutsche Bank had a record first quarter, Werner Steinmueller, APAC chief executive officer, said on Monday. He was referring to profit, the bank representative clarified on Thursday.The firm may look to use its relative strength in fixed-income and currencies trading to cater to multinationals’ needs for transactions and cash management, Bloomberg Opinion’s Nisha Gopalan wrote on Monday. While it lost the No. 1 ranking, Deutsche Bank is still among the top three in the Asian market, according to data from Coalition Group.China will continue to raise money and Deutsche Bank can feed these deals into its global network “in a way that can’t be matched by local Chinese competitors,” said Brock Silvers, managing director at China-based fund Kaiyuan Capital. “The cutbacks in the Asian equities business may hamper these efforts, but won’t stop them.”(Updates with Deutsche Bank wealth assets in sixth paragraph.)To contact the reporters on this story: Alfred Liu in Hong Kong at aliu226@bloomberg.net;Denise Wee in Hong Kong at dwee10@bloomberg.netTo contact the editors responsible for this story: Sam Mamudi at smamudi@bloomberg.net, Jeanette Rodrigues, Katrina NicholasFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Reuters8 days ago

    UPDATE 2-DP World set to raise $1.3 bln in bonds and sukuk

    Port operator DP World is set to raise $1.3 billion on Thursday through conventional and Islamic bond issues, documents issued by banks involved in the deal showed. Majority owned by the Dubai government, DP World plans to borrow $1 billion by issuing sukuk with a 10-year maturity and offering a profit rate equivalent to 195 basis points over mid-swaps. The Islamic paper was marketed earlier on Thursday with an initial guidance of around 230 basis points over mid-swaps.

  • Traders Are Certain the Fed Will Cut in July, But Unsure What’s Next
    Bloomberg9 days ago

    Traders Are Certain the Fed Will Cut in July, But Unsure What’s Next

    (Bloomberg) -- Lurking beyond traders’ apparently unwavering confidence that the Federal Reserve will cut interest rates this month is a more nebulous outlook about what the central bank will do after that.Traders are still pricing a full quarter-point reduction in July, yet they have slowly scaled back views on how much easing will take place for all of 2019 -- lowering expectations to 64 basis points from around 80 basis points two weeks ago. At the same time, options traders are still adding to bets the Fed will embark on a series of cuts, rather than a one-and-done approach.“The market collectively thinks there’s a cut coming this month because the Fed has basically said there will be,” said Kit Juckes, a strategist at Societe Generale SA in London. “But to think there’s a big string of cuts coming after that you have to believe in a serious economic downturn and that’s not clear -- especially after the June labor data.”The addition of a higher-than-expected 224,000 jobs in June seems to make it less urgent for the Fed to take aggressive action. That means it’s even more crucial for traders to scrutinize guidance on the policy path this week as Fed Chairman Jerome Powell starts his two-day testimony to Congress Wednesday, the same day the central bank will publish the minutes of its June meeting.If Powell “makes clear that all is not well, and that he stands ready to do more, then markets might soar but real business confidence might tank,” Michael Every, head of Asia financial markets research at Rabobank in Hong Kong, wrote in a research note.European bond markets saw a sell-off Wednesday following a round of better-than-expected factory data from the region, with German bond yields touching July’s highest level. Still, the European Union downgraded its economic outlook Wednesday and an Italian 50-year debt sale Tuesday saw strong demand for duration and yield, drawing over 17 billion euros ($19.1 billion) of orders.Ten-year German bond yields climbed seven basis points to -0.28%, while those on Treasuries rose four basis points to 2.1%. Two-year treasury yields rose two basis points to 1.93% in London trading on Wednesday, having risen from June’s low of 1.69%.Dealings in eurodollar options after the July 5 payroll data show traders have put aside views the Fed may cut rates by half a percentage point this month (a quarter-point is now seen as a lock). Yet even as the amount of easing priced in has been dialed back, those options traders have also favored buying contracts that profit if Fed officials reduce rates beyond just their July 30-31 policy meeting.Hawkish Signs“Hawkish would be anything that puts into question a second cut,” Steven Englander, global head of foreign-exchange research at Standard Chartered Bank in New York, wrote in a report. “Hints at ‘one and-done’ could be devastating to market pricing, even if Powell pointed to a July cut.”U.S. economic growth slowed in the second quarter, and is tracking about a 1.3% annual rate, according to the Atlanta Fed’s tracker. Proponents of a rate cut have pointed to weak inflation and uncertainty over trade tensions as further reasons for the Fed to ease policy.Powell might strike a cautiously optimistic tone, which will possibly be a slight disappointment for doves, John Herrmann at MUFG Securities in New York, wrote in a note Tuesday. “But the economy’s more gripping risks suggest further interest-rate cuts are in the offing.”(Updates with European bond move from sixth paragraph.)\--With assistance from Edward Bolingbroke and Ruth Carson.To contact the reporter on this story: Liz Capo McCormick in New York at emccormick7@bloomberg.netTo contact the editors responsible for this story: Benjamin Purvis at bpurvis@bloomberg.net, Dave Liedtka, William ShawFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Are investors placing too much hope in the Fed? As US-China trade war lingers, analysts see fewer rate cuts than markets
    South China Morning Post9 days ago

    Are investors placing too much hope in the Fed? As US-China trade war lingers, analysts see fewer rate cuts than markets

    As uncertainties over the US-China trade war continue to weigh on sentiment, investors are increasingly looking to the US Federal Reserve to cut rates and provide a boost to what has been an extended economic cycle.Investment strategists and economists, however, said financial markets may be a bit too optimistic about where the central bank is headed " and that could be bad for emerging markets.The financial markets are expecting as many as three interest rate cuts " or about 75 basis points " this year. Most observers, however, said they expected cuts of 25 to 50 basis points, unless the trade war escalates further."Given that the market is pricing in roughly three rate cuts by the end of the year, anything less would disappoint expectations and cause headwinds for Asian credit and currencies," Mark Haefele, UBS's chief investment officer for global wealth management, and Min Lan Tan, the head of the Swiss bank's Asia-Pacific chief investment office for global wealth management, said in a recent report.The Fed is expected to announce its decision on interest rates on July 31, but investors could get a preview when Fed chairman Jerome Powell testifies over the next two days before the House Financial Services Committee and the Senate Banking Committee in Washington. BlackRock sees weak 2nd-half China growth despite stimulus amid trade warHiring rebounded strongly in June in the US, easing fears the American economy was weakening, and could take pressure off the Fed to act immediately.But that has not stopped US President Donald Trump from sharply criticising the central bank, as he continues to press the Fed to cut rates. "If we had a Fed that would lower interest rates, we'd be like a rocket ship," Trump said last week.Larry Kudlow, director of the White House's National Economic Council, said at a CNBC event on Tuesday the Fed's last interest rate increase in December was "unnecessary"." Donald J. Trump (@realDonaldTrump) June 24, 2019Frances Donald, Manulife Investment Management's chief economist and head of macroeconomic strategy, said on Tuesday two rate cuts were likely this year "as insurance against deteriorating growth in the face of heightened uncertainty, but also to stroke inflationary pressures, which have been absent". If the trade war escalates, further rate cuts could be in the mix, Donald said.The big question for the Fed is whether the trade war reignites after the United States and China reached a ceasefire following discussions between Trump and Chinese president Xi Jinping at the G20 Summit last month.Nomura said on Tuesday the US was likely to put tariffs on nearly all goods imported from China by the end of this year, which could cause China to ramp up its own stimulus. With trade war likely to deepen, worst is yet to come for China's economy, says NomuraThe US already has 25 per cent tariffs on about US$250 billion of Chinese-made products, but held off adding tariffs on another US$300 billion of goods, many that would directly led to American consumers paying higher prices.On Wednesday, S&P; Global Ratings cut its economic growth forecast for Asia-Pacific to 5.1 per cent for this year and 2020, saying growth in capital expenditure had softened in the region because of the trade war and is negative impact on more trade dependent economies."We still believe that achieving a comprehensive deal that would remove uncertainty from the bilateral economic relationship is challenging," said Shaun Roache, S&P;'s Asia-Pacific chief economist. "Thorny issues remain on market access, intellectual property protection, an agreement monitoring mechanism and potentially restructuring China's state-owned entities. One side may need to make substantial concessions to arrive at a lasting deal, and while this is possible, it seems unlikely, at least over the next 12 months."Will Leung, head of investment strategy for Standard Chartered's wealth management business in Hong Kong, however, said the "majority of the negative" associated with the trade war had already been priced into the market."Geopolitics is clearly an area of concern. While risks are impossible to quantify and difficult to factor into decision-making, they argue for a less aggressive investment stance than would otherwise be the case," Standard Chartered's global investment committee said in its latest outlook. "In our view, trade tensions are a symptom of the shift from a US-centric world order to a more multipolar one amid rising Chinese economic, military and political power. To what degree the US accepts China's increased role in global affairs will be key to the evolution of US-China tensions in the coming years."Standard Chartered said one to two rate cuts by the Fed were likely to extend the economic cycle, helping to ensure a slowdown in economic growth that is a "temporary soft-spot rather than the early stages of a recession".Aninda Mitra, senior sovereign analyst at BNY Mellon Investment Management, said he expected the Fed to "take out some insurance" with a rate cut of as much as 50 basis points this summer."Our view is also the US economy is not slumping. Labour markets are still tight," he said. "We think one-off or two rate cuts back to back would be sufficient to lend some support as global uncertainty takes its toll on trade volumes."Athanasios Vamvakidlis, a Bank of America Merrill Lynch forex strategist, said uncertainty over trade was affecting the weak global economic outlook and "risks for an even sharper slowdown will increase fast" if the uncertainty persists."The Fed has positioned itself between a rock and a hard place," Vamvakidlis said. "The [non-farm payrolls] data was strong. Other data has been mixed or even weak, but the overall picture does not justify the aggressive monetary policy easing that markets are pricing, unless in a trade war scenario, and particularly when we take into account the limited policy ammunition, which the Fed may not want to waste. We see a risk that the Fed may disappoint markets no matter what they do."This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2019 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2019. South China Morning Post Publishers Ltd. All rights reserved.

  • Mexico Peso Falls as Investors Fret Over Finance Minister's Exit
    Bloomberg10 days ago

    Mexico Peso Falls as Investors Fret Over Finance Minister's Exit

    (Bloomberg) -- The Mexican peso plunged by the most since a tariff standoff with the U.S. in late May after Finance Minister Carlos Urzua abruptly resigned, casting doubt on the government’s ability to stave off economic and financial challenges.Urzua announced his decision on Twitter, citing conflicts of interest and policy disagreements within Andres Manuel Lopez Obrador’s administration. The peso fell by as much as 2.3%, before trimming losses when Arturo Herrera, the deputy finance minister, was named as Urzua’s replacement. The iShares MSCI Mexico ETF tumbled and the yield on the nation’s dollar bonds due in 2026 rose to 3.7%.“This is a very bad sign,” said Benito Berber, the chief economist at Natixis in New York. Still, Berber said Herrera will help calm markets and offer some continuity: “Urzua and Herrera gave credibility to economic policy.”Here’s what other investors and analysts had to say:Ilya Gofshteyn, senior emerging markets macro strategist at Standard Chartered Plc.“The market is right to take this seriously. Urzua was seen as ‘the adult in the room’ in the AMLO administration, someone who lent credibility to an otherwise economically heterodox administration”“This was unexpected and while MXN is attractive from a carry standpoint, there’s a reason real rates are as high as they are in Mexico”“Tactically bullish MXN views are all good and well, but on any given day a development of this sort can creep up and force position liquidation. Given how heavily subscribed MXN remains among the global investor community, those squeezes tend to be especially painful”Alberto Ramos, chief Latin America economist at Goldman Sachs Group Inc. in New York“The resignation letter is unconventional and direct: it expresses clear dissatisfaction with internal policy and personnel dynamics within the AMLO administration”“This is an unexpected and negative development for it suggests: (1) significant policy and inter-personal frictions within the AMLO administration and (2) that economic policy decisions may be guided and informed by non-economic/financial criteria and led by policy makers without the required and relevant credentials to define policy and manage the fiscal accounts”Shamaila Khan, director of emerging-market debt at AllianceBernstein in New York“Herrera has interacted with investors extensively, so he is not a concern. It’s really the government policies that are a concern and are unlikely to change as a result of the resignation”Christian Lawrence, a New York-based strategist at Rabobank who was last quarter’s top peso forecaster“Given that fiscal slippage and Pemex are big concerns, the reaction is not surprising. Remember, Fitch downgraded Mexico to one notch above junk on Pemex concerns and the Moody’s outlook was moved to negative”Claudia Ceja, a strategist at BBVA in Mexico City“The Herrera nomination is positive, but even so, the criticism from Urzua is very strong”“Even if the government is able to assign another market friendly minister, the fact that Urzua is openly criticizing the decision making is certainly negative”\--With assistance from Justin Villamil and Karina Montoya.To contact the reporters on this story: Ben Bartenstein in New York at bbartenstei3@bloomberg.net;George Lei in New York at glei3@bloomberg.net;Sydney Maki in New York at smaki8@bloomberg.netTo contact the editors responsible for this story: Julia Leite at jleite3@bloomberg.net, Alec D.B. McCabeFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Financial Times10 days ago

    Suspect share trades preceded one in 10 UK takeovers last year

    Suspicious trades that can indicate insider trading occurred before 10 per cent of takeover announcements in the UK in 2018, the financial regulator has revealed. The Financial Conduct Authority also levied higher fines more widely and opened more investigations than in the preceding 12 months, its annual report shows. The FCA has meted out £227m fines in the 2018-2019 financial year — compared with £70m over the preceding 12 months — and has more cases on its books than ever before.

  • Reuters10 days ago

    UPDATE 2-Temasek grim on returns outlook after slowest portfolio gain in 3 years

    Singapore's Temasek Holdings posted the smallest rise in its portfolio in three years as key bank stock holdings declined in value, and the state investor said it was increasingly focusing new investments in North America, Europe and on unlisted firms. "Trade and technology tensions are already disrupting supply chains, business confidence is being tested and capital investments have slowed," Png Chin Yee, a senior managing director at Temasek, told a news conference on Tuesday. Temasek's 1.6% portfolio gain for the year to March 31, 2019 came after a 12% increase a year ago and took its net portfolio value to a record S$313 billion ($230 billion).

  • Deutsche Bank 'buried their head in the sand': Analyst
    Yahoo Finance11 days ago

    Deutsche Bank 'buried their head in the sand': Analyst

    As Deutsche Bank begins a major restructuring effort, Kevin Doran, CIO at AJ Bell, says the bank has "very much buried their head in the sand for easily a decade now."

  • Bloomberg11 days ago

    World's Largest Port Operator Hires Banks on $1 Billion Bond

    (Bloomberg) -- DP World Plc mandated banks to raise about $1 billion of bonds to finance the acquisition of Topaz Energy & Marine Plc, according to three people with knowledge of the plans.The world’s largest port operator hired Citigroup Inc., Dubai Islamic Bank PJSC and Standard Chartered Plc to arrange investor meetings in Hong Kong, Singapore and London from July 10, according to a document sent to investors and seen by Bloomberg.The Dubai-based firm plans to sell benchmark 10-year Islamic bonds and is also considering long-dated conventional bonds, the document shows. Barclays Plc, Deutsche Bank AG, Emirates NBD Capital, First Abu Dhabi Bank PJSC and HSBC Holdings Plc have also been hired as joint lead managers and bookrunners.DP World last week said it would buy Topaz from Oman’s Renaissance Services SAOG and Standard Chartered Plc’s private equity unit for $1.1 billion, marking its first venture into the oil and gas sector. The acquisition is likely to close this year.A spokesman at DP World declined to comment.The ports company has been on a shopping spree over the past 18 months, buying P&O Ferries and P&O Ferrymasters in Europe and Puertos y Logistica in Chile. It also purchased an additional stake in DP World Australia and invested through its joint ventures in Canada and India.DP World is rated Baa1, the the third-lowest investment grade, by Moody’s Investors Service and BBB+ by Fitch Ratings Inc.(Adds debt sale details in second and third paragraphs.)To contact the reporters on this story: Archana Narayanan in Dubai at anarayanan16@bloomberg.net;Alaa Shahine in Dubai at asalha@bloomberg.netTo contact the editors responsible for this story: Stefania Bianchi at sbianchi10@bloomberg.net, Claudia MaedlerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Reuters11 days ago

    UPDATE 2-DP World hires Citi, StanChart for new 10-year Islamic bond

    Port operator DP World has hired banks to arrange a series of investor meetings ahead of a potential issue of 10-year U.S. dollar-denominated sukuk, or Islamic bonds, a document issued by one of the banks leading the deal showed on Monday. DP World, majority owned by the Dubai government, mandated Citi, Dubai Islamic Bank and Standard Chartered to arrange the meetings to be held in Hong Kong, Singapore and London, starting on Wednesday July 10. DP World said last week it plans to buy Topaz Energy and Marine Limited, a provider of marine logistics to the global energy industry, for $1 billion from Standard Chartered and Renaissance Services.

  • Valuations in China Bonds Have Become Quite Attractive, Says StanChart’s Liu
    Bloomberg2 days ago

    Valuations in China Bonds Have Become Quite Attractive, Says StanChart’s Liu

    Jul.16 -- Becky Liu, head of China macro strategy at Standard Chartered, discusses the rally in China bonds, China’s debt profile and the job market. She speaks on “Bloomberg Markets: China Open.”

  • U.S., China Will Continue to Talk With Lengthy Negotiations, Says StanChart’s Liu
    Bloomberg2 days ago

    U.S., China Will Continue to Talk With Lengthy Negotiations, Says StanChart’s Liu

    Jul.16 -- Becky Liu, head of China macro strategy at Standard Chartered, discusses the U.S.-China trade negotiations, her call on USD-CNY and capital outflows from China. She speaks on “Bloomberg Markets: China Open.”