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February 2016

February 2016

Banking: Portugal’s bail-in bombshell

Euromoney February 2016

Portugal’s central bank had very few options when it decided to bail-in senior bondholders of Novo Banco at the end of last year. The move has dismayed investors and may breach the ECB’s newly introduced bail-in powers. Have years of effort in developing a bank resolution regime already gone up in smoke? And what does it all mean for a deeply shaken market for bank funding?

  • Portugal banking: The long shadow of Banif and BES
  • The Bank of Portugal’s decision to transfer just five tranches of bonds on December 29 was not made in isolation. Bankers close to the situation in Portugal say two previous situations influenced the central bank’s thinking.

Private banking

Private banking: Pure-play funds plough through private client opening

Private banking: Pure-play funds plough through private client opening

Euromoney February 2016

The world’s leading private banks still haven’t resolved the conflict between advising their clients and investing their assets. A decade ago, many wanted out of asset management. Now they want back in. The ensuing confusion has left a gap that pure-play asset managers are finally beginning to fill.


Private banking: Wealth managers struggle to define their identities

Euromoney February 2016

For many of the largest private banks 2015 was a year of restructuring and geographical retrenchment. Only a few global players remain. This year looks set to be just as turbulent, but will clients put up with yet more change?

UBS: Zeltner's zeal for private banking

Euromoney February 2016

UBS’s wealth management chief used a crisis to reinvent the bank’s core business. Even competitors admit that he also took the whole industry in a better direction.

Private Banking and Wealth Management Survey 2016: Full results

Euromoney February 2016

Extended results can be viewed here.

Private banking: Flight to quality boosts Itaú

Euromoney February 2016

What’s a wealthy Brazilian to do faced with economic and political turmoil, scandal at one of the country’s leading private banks, and a big change to the tax law? Turn to the undisputed market leader in wealth management, it seems.

Private banking: Regionals on the rise in CEE

Euromoney February 2016

Low interest rates in emerging Europe are driving less committed players out of the private banking market but giving a boost to regional lenders by enhancing the appeal of investment products.

Private banking: Ways to win with India’s wealthy

Euromoney February 2016

India has been a tough market for global wealth managers, ground down by rising costs and regulation. But private wealth is growing fast, offering long-term profit for those with patience and persistence.

Emerging markets

Emerging markets: Big trouble from brittle China

Emerging markets: Big trouble from brittle China

Euromoney February 2016

The January fall in emerging market currencies, the exodus of foreign capital and a global bear market in equities all point to a new financial crisis. How China reacts to this threat holds the key for emerging markets.


Middle East

Middle East: Worried Saudis float an Aramco IPO

Middle East: Worried Saudis float an Aramco IPO

Euromoney February 2016

Saudi Aramco is a behemoth: the world’s most valuable company and the lifeblood of the Saudi state and royal family. Bankers and investors have mixed emotions over plans to list it; this could be a huge opportunity, but is it feasible?


Middle East: From differentiation pains to diversification gains?

Euromoney February 2016

Qatar Financial Centre always wanted to be different to the other Middle East hubs. But the model was confused. Now it aims to be the engine for the broader transformation of the country’s economy.

Emerging Europe

Emerging Europe: Citadele Banka – back from the dead

Emerging Europe: Citadele Banka – back from the dead

Euromoney February 2016

The bailout of Parex Banka at the height of the financial crisis helped push Latvia into deep recession. Today, reborn as Citadele and with a global all-star cast of owners, the bank is well on the way to becoming a national asset.


Emerging Europe: Romania’s rocky road to recovery

Euromoney February 2016

The country’s banking sector has staged a remarkable comeback over the past two years and is well-positioned to support growth and investment. Whether or not that will materialize, however, depends on its politicians.

Banking news

EU banking union ushers in new era

EU banking union ushers in new era

Euromoney February 2016

Bail-in uncertainties remain; Portugal and Italy mark tough start for BRRD.


Piraeus debacle stokes fears of intervention

Euromoney February 2016

CEO resigns after capital raising; NBG sale fails to lift spirits.

Crédit Agricole cedes to pressure on structure

Euromoney February 2016

French bank joins mutual banking reform; investors hope for capital boost, fear earnings dilution.

Investors unimpressed by strong US bank earnings

Euromoney February 2016

Investors focus on exposure to oil; banks see no contagion yet.

Markets news

The incredible shrinking bond market

The incredible shrinking bond market

Euromoney February 2016

SWF pull billions from bonds; flight to quality in high yield.


MPS securitization beats bad debt, bail-in rout

Euromoney February 2016

Troubled Tuscan lender taps new funding; ABS benefits from ‘safe haven’ status.

Invesco joins asset managers in robo race

Euromoney February 2016

Robos selling to gain scale; buy side sees ETF distribution role.

Municipal bonds: Puerto Rico no problem for US muni market

Euromoney February 2016

Concerns remain for Chicago, Illinois and Pennsylvania; Puerto Rico’s ballooning debt contained.

Asia news

Beijing seeks to allay fears of China crisis

Beijing seeks to allay fears of China crisis

Euromoney February 2016

Market and currency turmoil weigh on growth; financial and stock market reforms needed.


China: Currency contortions threaten dim sum

Euromoney February 2016

Gap between onshore and offshore exposed; Hong Kong dim sum market in doubt.

China rainmakers pour into private equity

Euromoney February 2016

Big names move to buyout firms; private equity ‘has money to burn’.

Latin America news

Oil slump raises Venezuela default risk

Oil slump raises Venezuela default risk

Euromoney February 2016

Sovereign highly exposed to oil price drop; default still not fully priced into bonds.


Latin America: Niche players thrive in wealth management

Euromoney February 2016

Proliferation of smaller firms; compliance and risk costs deter internationals.

Latin America: Will 2016 be the year of euro DCM?

Euromoney February 2016

Volatility slams international DCM shut; choppy access but strong liquidity in 2016.

EEMEA news

Banks frustrated as Iran’s Swift return is held up

Banks frustrated as Iran’s Swift return is held up

Euromoney February 2016

Teething troubles for messaging system; ICBC at vanguard of interested foreign banks.


Kuwait’s banks brace for property crash

Euromoney February 2016

Market set to slump, claims new report; financials make up 80% of bourse.

Lending growth coming, says Ukraine’s CB governor

Euromoney February 2016

Banking sector clean-up to continue; UniCredit heads for the exit.

West Africa's BRVM aims for expansion

Euromoney February 2016

Bourse expects 20 listings in three years; Nigeria and Ghana links planned.

Comment

JPMorgan’s results a warning to investment bank shareholders

JPMorgan’s results a warning to investment bank shareholders

Euromoney January 2016 euromoney.com

Shareholders should be as worried by modest returns at the American market leader as by outright losses at Deutsche and other struggling European investment banks.


Rise of the asset manager

Euromoney February 2016

It might not be sexy, but everyone wants in now. After all, money has to be managed.

Portugal problem stumps Isda

Euromoney February 2016

Unable to agree on whether or not a credit event had occurred, Isda has had to turn to outside help to determine what has happened at Novo Banco.

Italy’s bad bad bank

Euromoney February 2016

Europe’s plan for a bad bank in Italy, it turns out, is to not have a bad bank at all.

China GDP scepticism upends trading strategies

Euromoney February 2016

Distrust in official data coincides with hedge-fund closures, including Nevsky Capital.

Columns

Macaskill on markets: The mystery of the Basel outlier

Macaskill on markets: The mystery of the Basel outlier

Euromoney February 2016

The Basel Committee on Bank Supervision released long-awaited guidance on a new capital regime for market risk in January. It did not, however, solve the mystery of which bank was the outlier in a study of the potential effect of a change in trading risk evaluation.


Sideways: Loss, camera, action

Euromoney February 2016

The film of The Big Short provides a welcome reminder of the glory days of Morgan Stanley’s fixed income franchise, when Howie Hubler managed to lose $9 billion on botched structured credit tranche trades.

Against the tide: China’s bumpy ride

Euromoney February 2016

It is going to be a bumpy ride for Asia and other commodity-producing economies this year.

Inside investment: The fog of debt

Euromoney February 2016

Fears of a 1980s-style debt crisis in emerging markets are overblown. But to clear the miasma of statistics, investors would do as well to understand the sentiment of their peers as well as the credit fundamentals of their investments.

Panda breath – Street food for thought

Euromoney February 2016

The people seem to underwhelmed by the four horsemen of the Asian apocalypse.

Off message: Shy sovereigns should speak for themselves

Euromoney February 2016

The latest market turmoil could finally persuade emerging market countries to become more proactive in communicating with global financial markets.

Front end

Goldman Sachs' job lot

Goldman Sachs' job lot

Euromoney February 2016

Goldman Sachs launched an apprenticeship programme in partnership with Queen Mary University of London in late January.


What will Adia get out of Dodge?

Euromoney February 2016

Is there a finer name in all of financial services than Sherwood Dodge?

Iran – History in the making

Euromoney February 2016

It wasn’t quite John Simpson on the plane with the Ayatollah returning to Iran in 1979, but nonetheless Euromoney experienced a bit of history in January.

No one messes with HMRC

Euromoney February 2016

As the UK’s tax deadline day loomed at the end of January, Her Majesty’s Revenue & Customs helpfully sent out a reminder to editors that it is not a body to be messed with.

Quotes of the month

Euromoney February 2016

Off the record

Euromoney February 2016