March 2016

March 2016

Can Cryan halt Deutsche Bank's decline?

Euromoney March 2016

Deutsche Bank has come to the end of an era. The question is whether or not it is approaching the end of its empire as well? Respected across the industry for his intelligence and integrity, John Cryan needs plenty of both to restructure Deutsche. It succeeded for years in building too large a version of exactly the wrong sort of investment bank for today’s markets. A bank that once had a clear identity in global finance is struggling to present a vision of what it will be in the future.

Western Europe

BNP Paribas breaks cover as Europe’s best bet

BNP Paribas breaks cover as Europe’s best bet

Euromoney March 2016

BNPP’s latest strategic update for its corporate and institutional bank might have fallen short of the expectations of a market now used to the wild lurches of rival European firms, but to dismiss this as mere tinkering would be a mistake. It builds on an already bold and long-held plan. And, crucially, it is one the bank’s leaders say they can afford.


Western Europe: Repositioning CaixaBank

Euromoney March 2016

Isidro Fainé is the highly driven power broker who used the crisis to make CaixaBank the biggest bank in Spain. He now has to overhaul its safety net portfolio of strategic industrial stakes and better position the bank for tough times in its core business. Fainé and his chief executive Gonzalo Gortázar have made big promises to shareholders on returns. Can CaixaBank deliver?

CaixaBank: Good risk management comes at a price

Euromoney March 2016

One of the big recent hits to net interest income at CaixaBank has come from the removal of interest-rate floors, which had been inserted into mortgage loan contracts to protect lenders from falling rates but not fully explained to Spanish borrowers.

Sovereignty weighs on Portugal’s banking recovery

Euromoney March 2016

Portugal’s banks are doing better than at any point since the eurozone crisis. But local bankers’ optimism is tempered by concerns over ownership issues at BPI, Banif and Novo Banco

Middle East

Iran: Knocking on Tehran’s door

Iran: Knocking on Tehran’s door

Euromoney March 2016

The lifting of sanctions meant a stream of international banks would make their way to Iran, right? Wrong. Some banks admit they are taking the first steps on the road to Tehran. Others might be, but they certainly do not want to talk about it. And in either case, there are plenty of barriers to getting there.


The curious case of JPMorgan and the $9 Iran trade

Euromoney March 2016

When Iran Air needed some Boeing spare parts before sanctions were lifted, JPMorgan took the US side of the trade. Why and how?

Technology

Technology: Traditional banking is Finn-ished

Technology: Traditional banking is Finn-ished

Euromoney March 2016

A cooperative bank in one of the EU’s smallest countries seems an unlikely place to find someone who wants to ‘blow up’ traditional banking. But OP’s Tom Dahlström is on the side of the disrupters.


Latin America

Latin America: Investors seek solace in resilience of corp credit

Latin America: Investors seek solace in resilience of corp credit

Euromoney March 2016

LatAm fixed income markets have seen a collapse in primary issuance and yields have jumped in the secondary market. But investors and bankers are pointing to a new-found maturity that augers well.


Latin America: Grisi gears up for SanMex challenge

Euromoney March 2016

Santander Mexico’s new CEO faces the challenge of evolving a business, while his predecessor keeps watch from the boardroom.

Asia

India: Globalizing the rupee

India: Globalizing the rupee

Euromoney March 2016

China is well on the way to creating a global currency, with a little help from the IMF. But what of India, the other economy set to dominate the 21st century? Will the rupee come to rival the renminbi and the dollar, or will poor planning and weak infrastructure undermine its ambitions?


Banking news

Italy: Rome fiddles as banks burn

Italy: Rome fiddles as banks burn

Euromoney February 2016 euromoney.com

State bad debt scheme to chip not chop; BCC reform could create top-three lender.


Westerman joins from Goldman as HSBC rejigs global banking management

Euromoney March 2016

Hiring is a coup for HSBC as it tries to build on success of simplified structure in growing GBM division.

Regulatory crisis rocks bail-in

Euromoney March 2016

Subordinated debt meltdown raises capital questions; investors and issuers ‘don’t know’ how bail-in works.

When panic gripped AT1

Euromoney March 2016

Investors dump Deutsche after CFO funding boast; Fears spread to other bank stocks.

Commodity price collapse fuels trade finance fraud

Euromoney March 2016

Falling commodity prices have led to higher fraud claims. Banks might have to implement stronger trade finance criteria as a result.

Markets news

Bank capital: Sell-off sparks ‘game over’ fear for AT1

Bank capital: Sell-off sparks ‘game over’ fear for AT1

Euromoney February 2016 euromoney.com

Secondary yields rise above cost of equity; bankers pin hopes on lack of alternatives.


KfW $4 billion issue underscores new normal of negative swap spreads

Euromoney March 2016

Thanks to tighter capital requirements and a jump in corporate issuance, the relationship between US interest rate swaps and underlying treasuries is firmly in negative territory. Get used to it.

Investors stick with hedge funds despite losses

Euromoney March 2016

Performance varies widely; Clients still boosting allocations.

Asia news

Asia: Sovereign funds adapt to new environment

Asia: Sovereign funds adapt to new environment

Euromoney March 2016

Shift to defensive assets, oil economies give up hard-earned savings. Did they beat market downturns?


Hong Kong IPOs: Goodbaby, goodnight

Euromoney March 2016

Every now and then a barometer deal comes around: one whose outcome shows the market what to expect. One such was Goodbaby China Holdings, set to be a deal that showed there was still scope to launch IPOs, even mainland Chinese IPOs, in Hong Kong, despite volatility.

China A-shares set for MSCI index breakthrough

Euromoney March 2016

QFII reforms will open up access to domestic stocks; China will have big weighting in EM index.

Latin America news

Latin America: Ruling raises Argentina debt hopes

Latin America: Ruling raises Argentina debt hopes

Euromoney March 2016

New York judge lifts injunction; market return could bring $10 billion issuance.


Latin America: Citi pulls out of more markets

Euromoney March 2016

Citi has confirmed it is to exit retail banking in Brazil, Colombia and Argentina in a further round of retrenchment from the region – with these latest three joining six other regional businesses sold in the past two years.

LatAm debt markets have ‘high-yield feel’

Euromoney March 2016

Subdued supply and demand hit deal flow; More European focus at start of 2016.

EEMEA news

VTB and Russian Post go large on retail

VTB and Russian Post go large on retail

Euromoney March 2016

Timing is right for Post Bank launch, says chairman. Branch network will be bigger than Sberbank’s.


Saudi Arabia plans institutional fund revamp

Euromoney March 2016

Advice sought on new fund; Shoura eyes GOSI shake-up.

Comment

HSBC plotline points back to Gulliver

HSBC plotline points back to Gulliver

Euromoney February 2016 euromoney.com

With the bank’s HQ distraction now over, disappointing results have switched attention to the CEO.


AT1: Banks suffer a fundamental sell-off

Euromoney March 2016

It’s easy to blame technical factors and investors’ misunderstanding of the new AT1 market for February’s sharp sell-off across the bank sector, but investors may have a firm grasp of the fundamentals.

Marketplace lending ABS: The next big short

Euromoney March 2016

Marketplace lending ABS is following a worryingly familiar path.

Swedbank: New wolf in sheep’s clothing

Euromoney March 2016

Under Michael Wolf, Swedbank has won plaudits for the rewards it has given investors and its advances in digital banking. So what brought about the former CEO’s departure?

EM credit’s stress test

Euromoney March 2016

There is no need for panic. Emerging market credit is outperforming US high yield and the investor base is stable.

Bank defaults: Kazakhstan’s Groundhog Day

Euromoney March 2016

Bank bondholders need to hope that Kazakhstan’s authorities break their habit of allowing bank defaults.

Bailing out bail-in

Euromoney March 2016

Whether they were birth pangs for a nascent asset class, or regulatory ripples, the latest woes in bank capital reveal the unresolved problems of the new bail-in regime.

Columns

Macaskill on markets: Life after bonuses for Deutsche Bank?

Macaskill on markets: Life after bonuses for Deutsche Bank?

Euromoney March 2016

Deutsche Bank’s co-chief executive John Cryan may find the bonus obsession of his investment bankers hard to understand. He will need to keep them motivated if he is to have any chance of pulling off a hugely challenging turnaround plan for the bank, however.


Sideways: Cryan should adopt the Winters clawback playbook

Euromoney March 2016

Deutsche Bank’s co-CEO John Cryan should follow the playbook of Standard Chartered CEO Bill Winters and mount a public campaign to claw back bonuses from former managers.

Against the tide: Asia will drive the dollar

Euromoney March 2016

Weaknesses in Japan and Asia will mean a flight to quality.

Off message: When it’s time to embrace the inner psychopath

Euromoney March 2016

No good news to tell? Then keep the releases rolling. Try to dazzle the troops with some verbiage. A bit of psychopathy can be a good thing

Front end

No news is not all bad news

No news is not all bad news

Euromoney March 2016

Argentina’s new Macri government seems to have radically altered the country’s business and financial climate, but not everyone is necessarily benefiting.


Kenya’s mobile bond on hold

Euromoney March 2016

First there was M-Pesa, Kenya’s innovative and highly popular text-banking service that turned mobile phones into mobile ATMs, transferring money by SMS.

Trolling the Fed

Euromoney March 2016

Neel Kashkari has wasted little time in promoting his personal brand as the new president of the Minneapolis Fed.

Green talk just hot air

Euromoney March 2016

When attending green finance events Euromoney has been amused and astounded by the inventive ways conference organisers can support the cause.

Quotes of the month

Euromoney March 2016

Off the record

Euromoney March 2016