May 6, 2014, 12:27 PM
- Germany's growth premium in comparison to Europe is shrinking, impacting 25% of Germany’s equity market revenues, says global equity strategist Andrew Garthwaite, moving to a benchmark weighting in German stocks from overweight.
- He also notes the country's competitiveness and funding-cost advantages are on decline, and it has three times more export exposure to China than Europe as a whole.
- German's DAX 30 Index closed -0.7% today.
- German ETFs: EWG, BUND, EWGS, DBGR, GERJ, DXGE, BUNL, FGM, BUNT, GGOV, HEWG
- France, on the other hand, is moved to overweight as a play on ECB launching QE. "Bond spreads are consistent with outperformance, and France stands to benefit more than Germany from any ECB easing," says Garthwaite.
- P/E valuations are 5% below average, and 75% of the companies in CAC 40 have restructuring potential, he says.
- Particularly cheap are the French banks: CRARY, SCGLY, BNPZY. Also looking good: Renault (RNSDF), AXA (AXAHY -1.6%), and Total (TOT -0.4%).
- The CAC 40 closed -0.8% today.
- French ETFs: FXE, EUO, ERO, DRR, EUFX, ULE, URR
May 5, 2014, 11:16 AM
- "It is fully possible to criminally sanction companies that have broken the law, no matter their size," says Attorney General Eric Holder in a video on the DOJ website, suggesting criminal charges for at least a couple of lenders are getting near (CS and BNPZY are the leading candidates).
- After 5-plus years of shying away from criminal action against banks on the apparent worry of ruffling the economy's feathers, Holder's feeling his oats now, and says the DOJ is working closely with regulators to assure criminal prosecutions don't affect banks' day-to-day operations.
- The change of heart was leaked to the NYT last week.
Apr. 30, 2014, 7:34 AM
- Confronting the belief that the big banks are too big to charge, federal prosecutors have met with regulators about how to criminally punish lenders without putting them out of business, reports the NYT.
- Credit Suisse (CS) and BNP Paribas (BNPQF, BNPQY) are looking like test cases, with prosectors seeking guilty pleas - from Credit Suisse on aiding tax evasion and from BNP for doing business with blacklisted sweethearts like Sudan.
- The new push comes after the outcry when HSBC two years ago somehow escaped criminal charges and paid just a relatively small fine over laundering money for years for drug gangs and terrorists.
- Earlier today, BNP said the $1.1B it has set aside for fines over sanction violations may not be nearly enough. It's lower by 3.9% in Paris.
Apr. 29, 2014, 9:39 AM
- Capital shortfalls will need to be covered within six months for those lenders failing under the EBA's baseline stress test scenario, while banks failing under the adverse scenario will have nine months to fix things.
- ECB Vice-President Constancio: "Banks should start to consider what private sources of capital could be raised as a result of this exercise and plan accordingly."
- Earlier: The EBA unveils stress test criteria. 124 banks from 28 EU states are subject to the exams. Among the larger ones: DB, BNPQF, BNPQY, SCGLY, SAN, BBVA, UNCFF, UNCFY, IRE, NBG, CRZBY, CRARY.
- European financial sector ETF: EUFN
Apr. 7, 2014, 1:13 PM
- Nine months ago, the European Commission accused 13 banks of blocking Deutshce Boerse (DBOEY) and CME from entering the lucrative CDS business between 2006-09, but the banks, reports Reuters, are set to fight those charges at a closed-door hearing next month.
- Should they lose, the banks could be subject to fines of up to 10% of their global CDS turnover - not a small amount given the size of the market.
- Those charged and expected to fight: C, GS, DB, BAC, BCS, BNPQY, CS, HSBC, JPM, MS, RBS, and UBS.
Mar. 6, 2014, 10:46 AM
- Another casualty in the probes over foreign-exchange trading mischief is Bob de Groot - the head of spot currency trading for BNP Paribas (BNPQF, BNPQY) - who has just been suspended from his position, reports the WSJ. More than twenty traders have been placed on leave, suspended, or fired by global banks since the investigations began, and the BoE suspended a staff member earlier this week, though it says it found no evidence of any wrongdoing as it pertains to manipulating rates.
Feb. 19, 2014, 7:08 AM
- State-owned Royal Bank of Scotland (RBS) de-risks a little bit more, offloading parts of its structured retail investor products and equity derivatives businesses, as well as related market-making activities to BNP Paribas (BNPQY) for an undisclosed amount, though RBS says the price is insignificant.
- Shares are off slightly in London action.
Jul. 17, 2013, 12:53 PM
Jul. 12, 2013, 3:07 PMThe usual suspects in the banking fraternity are the subject of another class-action suit over price-fixing in the CDS market, with the plaintiffs in this case being 4 Danish pension funds. The case was filed in federal court in Illinois, the same locale as a similar complaint logged in May by a labor union. Across the pond, the EU this month filed their own charges. Banks named: BAC, BCS, C, CS, DB, GS, HBC, JPM, MS, RBS, UBS, BNPQY.PK. | 5 Comments
Jul. 1, 2013, 7:14 AMThe EU logs antitrust charges against Markit, the ISDA and 13 banks for blocking exchanges in the credit derivatives business. "The banks acted collectively to shut out exchanges from the market because they feared that exchange trading would have reduced their revenues." Banks charged: BAC, BCS, C, MS, CS, DB, GS, HBC, JPM, RBS, UBS, BNPQY.PK. | 1 Comment
Jan. 18, 2013, 12:31 PM
Oct. 26, 2012, 8:36 AMParis is busily rebounding from S&P's negative rating actions on the French banks overnight. BNP Paribas (BNPQY.PK) was cut to A+ from AA-, while SocGen (SCGLY.PK) and Credit Agricole (CRARY.PK) were given a negative outlook. "The economic risks under which French banks operate have increased in our view." The CAC 40 +0.2% after a near 1% early decline. | Comment!
Sep. 6, 2012, 6:40 PMIf shareholders crush the Glen-Xstrata merger tomorrow, the pain will be deep for the 10 investment banks that worked on the deal. BNP Paribas, which advised Glencore, would suffer the steepest fall in the global M&A adviser rankings, sliding from no. 14 to no. 23; BofA (BAC), which wasn’t on the deal, would benefit most, rising from no. 8 to no. 4. | Comment!
Jun. 22, 2012, 8:16 AM"This type of environment makes my job quite easy," says fund manager David Herro, who is "significantly adding" to his stock positions as 580 companies in the MSCI indexes trade for less than the value of their net assets. On the other hand, "safe" health-care and consumer products firms are trading at their highest level in more than 10 years, according to the same gauge. | 5 Comments
Jun. 21, 2012, 3:36 PMAlso somewhat unexpectedly included, according to CNBC, in the list of banks getting cut is one Canadian lender, Royal Bank of Canada (RY -3.7%). Among the European banks touched are Deutsche Bank (DB), BNP Paribas (BNPQY.PK), and Credit Suisse (CS), which recently got a warning from the SNB. | 1 Comment
May 14, 2012, 12:14 PM
BNPQY vs. ETF Alternatives
BNP Paribas has a presence in 75 countries with more than 180,000 employees, including 140,000 in Europe. It ranks highly in its three core activities: Retail Banking, Investment Solutions and Corporate & Investment Banking. In Europe, the Group has four domestic markets (Belgium, France, Italy... More
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