HSBC takes first sip of natural capital 27 Aug 2020 The UK bank is teaming up with advisory startup Pollination to invest in sustainable forestry, water supply, natural carbon capture and such. Nature-based solutions are key to minimizing climate change. HSBC's JV is a step towards building the needed mainstream scale.
Ant squashes some Asian investment bankers 26 Aug 2020 The Chinese fintech outfit’s $20 bln IPO is set to shake up league tables. Citi gets a lift as an unexpected sponsor. Credit Suisse could miss out. And Tencent-aligned Goldman is sidelined. In a region so dependent on equities fees, more than just egos will be bruised.
Wall Street prefers China to Pennsylvania Avenue 20 Aug 2020 Chinese companies are rallying in New York despite delisting threats from Washington. Governance problems abound, yet the $2 trln group is beating the S&P 500. That may be part greed, part short attention spans, but the finance industry is betting the White House is bluffing.
Corona Capital: Citigroup, WeWork 14 Aug 2020 Concise views on the pandemic’s corporate and financial fallout: Citigroup’s embarrassing $900 million bank error; and a small silver lining for WeWork’s botched IPO.
Ballad of China’s Robinhood has familiar refrain 14 Aug 2020 Like the hot U.S. e-brokerage startup, $4.2 bln Futu is capitalising on stock market frenzy. Quarterly net profit more than quadrupled thanks to a boom in offshore trading by mom-and-pop investors. A premium valuation over rivals, though, overlooks new competitive threats.
Temasek MAC attack draws Singapore’s bailout line 12 Aug 2020 The sovereign fund escaped a $3 bln deal for rig-builder Keppel, citing a “material adverse change”. It avoids setting an unrealistic valuation that would complicate consolidation. Singapore’s offshore sector can get its fix without turning patient capital into reckless capital.
Investment banks remain a hard sell for investors 10 Aug 2020 Barclays, Deutsche, Credit Suisse and others have reaped huge trading profit this year. But they’re still valued below retail lenders facing mounting bad debts. Shareholders aren’t persuaded that wholesale units are a hedge in bad times. The pressure to shrink will persist.
Natixis CEO exit eases open door to M&A 4 Aug 2020 Francois Riahi has left the French lender after dismal results. Risky fund bets and shares which lagged rivals during his tenure outweighed bold initiatives such as green lending. New boss Nicolas Namias, who arrives from majority owner BPCE, may pave the way for a full takeover.
HSBC is firing on just one shaky cylinder 3 Aug 2020 The $90 bln lender’s investment bank is the only business that’s really growing, as the group racks up further bad-debt charges. CEO Noel Quinn is cutting costs fast. But with low interest rates crimping revenue, he might need to take a sharper knife to restructuring plans.
SocGen confirms weak-man-of-Europe status 3 Aug 2020 Rising bad debt plunged the French bank to a 1.6 bln euro half-year loss. Equities trading was dire even as investment banking rivals made money. A pledge to keep full-year credit charges subdued may be CEO Frederic Oudea’s last chance to revive the lender’s bombed-out valuation.
M&A firms’ big fear is Fed-fueled fee doldrums 31 Jul 2020 Lazard, Evercore and others held up better than expected last quarter, thanks to restructuring work and robust capital markets. But if economies stumble, the uncertainty will hit M&A, while liquidity gushing from central banks could limit how many troubled firms need help.
BNP’s bad debt buoyancy upends market pessimism 31 Jul 2020 The $51 bln French bank reported a 19% half-year profit decline, mitigated by robust trading. That adds credibility to CEO Jean-Laurent Bonnafé’s boast that 2020 earnings will drop by only a fifth. If loan losses stay modest, the shares could climb much closer to book value.
Corona Capital: Ford narrows the gap 30 Jul 2020 Concise views on the pandemic’s corporate and financial fallout: The Detroit automaker put in a better second-quarter performance than expected. That’s good news for under-pressure CEO Jim Hackett – and allows Ford to close some of the distance to rival GM.
Credit Suisse takes right leaf out of rival’s book 30 Jul 2020 CEO Thomas Gottstein will cut costs and deploy more capital in wealth management. A slimmer investment bank would make the lender look more like UBS, which has a higher valuation. To close that gap faster, the new boss could hand savings to investors instead of reinvesting them.
Nomura leverages market turmoil to buy time 29 Jul 2020 Quarterly profit more than doubled to $1.4 bln, as trading volatility bolstered earnings and cost cuts bore fruit. But its retail unit is still struggling, rivals are attacking, and its turnaround plan is in its infancy. At least it can make hay while the sun doesn’t shine.
Goldman Sachs’ 1MDB scar is already fading 24 Jul 2020 It’s paying $2.5 bln to Malaysia over its role in the scandal, four times its fees. Next comes closure with U.S. regulators. The cost in cash and reputation no doubt stings, a bit. But it's too small to amount to more than one extra line on Wall Street’s mile-long rap sheet.
Review: Market twists and turns, unraveled 17 Jul 2020 In a new book, “The Long Good Buy,” Goldman Sachs’ top equity strategist breaks down investment cycles and offers much needed historical perspective. It helps make sense of today’s head-scratching market and the asset total gyrations at the likes of giant fund manager BlackRock.
Wall Street pay heads towards danger zone 17 Jul 2020 Morgan Stanley, Goldman Sachs and JPMorgan socked away at least 33% more for investment-bank bonuses after bumper results last quarter. It looks reasonable given revenue gains. But huge paydays on the back of Fed largesse in an economic slump risk a return to public opprobrium.
Wall Street gets $10 billion gift from Main Street 16 Jul 2020 The five big firms struck gold in the latest quarter as the Fed pumped up markets, even as rates fell. But the spoils pale next to crisis costs: JPMorgan, Citi, Goldman, Morgan Stanley and Bank of America collectively put aside twice that amount to pad against future bad debt.
Morgan Stanley CEO gets smart and lucky on E*Trade 15 Jul 2020 The online brokerage’s shareholders vote on James Gorman’s $13 bln takeover offer this Friday. It looked a good deal for the Wall Street firm in February. Now, thanks to a surge in trading volumes, it looks even better. But it’s still the best option for E*Trade shareholders too.