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☆ Dealmakers face pressure to clinch M&A quickly in volatile markets
▼ + stars: | 2022-12-06 | by ( Maiya Keidan | ) www.reuters.com time to read: +4 min

HSBC wrapped up the deal in just eights weeks after saying it was considering selling its Canadian business in early October. From its first contact, RBC, Canada's biggest lender, told HSBC it could close the deal quickly if selected, a person familiar with the matter told Reuters. After the final bids went in around mid-November, RBC said it could turn everything around in a week, the person added. In the United States, deal timelines fell by almost 30% to 66 days this year from last year, where transactions took more than one day to close, the data shows. Deal announcements are one thing but getting all the regulatory approvals to close a deal are another matter altogether.

☆ TSX falls after better-than-expected domestic jobs data, materials weigh
▼ + stars: | 2022-12-02 | by ( Johann M Cherian | ) www.reuters.com time to read: +2 min

Traders see a 75% chance of a 25-basis-point rate hike by the BoC next week, down from 84% before the data was published. The materials sector (.GSPTTMT) fell 1.2% tracking bullion prices that dipped after a strong U.S. jobs data rekindled worries of an aggressive Federal Reserve. This week was a cocktail of economic data iced with mixed bank earnings, as markets enter into the holiday season. The big fear and debate is all about whether the economic data is starting to point to a recession coming in 2023," Taylor added. Reporting by Johann M Cherian in Bengaluru; Editing by Shailesh KuberOur Standards: The Thomson Reuters Trust Principles.

☆ TD Bank quarterly profit jumps on higher rates boost
▼ + stars: | 2022-12-01 | by ( ) www.reuters.com time to read: +1 min

Dec 1 (Reuters) - Canada's TD Bank (TD.TO) posted a surge in fourth-quarter profit on Thursday as gains from higher interest rates boosted its personal and commercial business and helped offset weakness in underwriting and capital markets. The lender set aside C$617 million in loan loss provisions, compared to a release of C$123 million a year earlier. TD Bank joined peers Royal Bank of Canada (RY.TO), Bank of Nova Scotia and National Bank of Canada (NA.TO) to mark higher funds this year to prepare for potential loan losses as worries of an economic downturn grow. read moreThe bank's personal and commercial business posted an 11% increase in net income, reflecting higher margins and strong volume growth. Overall net profit was C$6.67 billion, or C$3.62 per share, compared with C$3.78 billion, or C$2.04 per share.

The global job cuts at the London-headquartered bank will fall across several business units and geographical locations and result in the loss of at least 200 positions, mostly with the title of Chief Operating Officer (COO), the sources said. HSBC, which used to position itself as the world's local bank, employs many COOs because country and business lines have their own separate COO, the sources said. The lender has been shrinking its sprawling global business for several years, downsizing in many regions and exiting some countries entirely as it tries to improve shareholder returns. The initiative, codenamed Project Banyan, follows HSBC's last major redundancy plan in 2020, which targeted up to 35,000 job cuts globally across all staffing levels. Three separate sources confirmed job cuts were underway, as HSBC joins a chorus of other western banks axing staff as a bleak global economic outlook weighs on business, consumer and investment banking revenues.

☆ Top Canada banks RBC, National Bank's profits dip as bad debt provisions mount
▼ + stars: | 2022-11-30 | by ( ) www.reuters.com time to read: +2 min

Profit from personal and commercial banking for RBC and National Bank in the quarter grew 5% and 13%, respectively. RBC earmarked C$381 million in provisions for credit losses (PCL), compared with a C$227 million release last year. National Bank reported C$87 million versus a C$41 million release a year ago. Shares of RBC, which agreed to buy HSBC's (HSBA.L) Canadian business on Tuesday, were down 1.4%, while National Bank fell nearly 4%. National Bank, on the other hand, posted an adjusted profit of C$2.08 per share, below analysts' expectation of C$2.24.

TORONTO, Nov 29 (Reuters) - Canadian regulators will review the sale of HSBC's (HSBA.L) business in Canada to Royal Bank of Canada (RY.TO) for C$13.5 billion ($10 billion) in cash, the Canadian government's finance ministry said on Tuesday. The Competition Bureau, under the Competition Act, will also review the transaction," the finance ministry said in a statement. RBC's purchase price reflects a 30% premium to the value some analysts had attributed to HSBC's Canada business. Analysts had valued HSBC's Canada business in the range of C$8 billion to C$10 billion. "The Minister of Finance's decision will be informed by all required regulatory review processes," it added.

[1/2] HSBC logo is seen on a branch bank in the financial district in New York, U.S., Aug. 7, 2019. REUTERS/Brendan McDermid/File PhotoLONDON, Nov 29 (Reuters) - HSBC (HSBA.L) has agreed to sell its business in Canada to Royal Bank of Canada (RY.TO) for $13.5 billion Canadian dollars ($10.04 billion) in cash. Chinese insurance company Ping An Insurance Group has been pushing HSBC to split off its Asian business to boost returns. "We decided to sell following a thorough review of the business, which assessed its relative market position within the Canadian market and its strategic fit within the HSBC portfolio," Chief Executive Noel Quinn said. Analysts had valued HSBC's Canada business in the range of C$8 billion to C$10 billion.

The transaction is also fraught with regulatory risks, analysts said, though RBC argues that HSBC's Canada business accounts for just 2% of Canadian banking market share. The finance minister has the authority to impose any terms and conditions, the finance department said in a statement. "This regulatory assessment isn't likely to be completed for some time," Calvin Goldman, former commissioner of Canada's competition bureau, told Reuters, referring to the latest deal. QUICK MOVEDespite the expected regulatory risks, RBC was keen to move quickly. RBC is paying 9.4 times HSBC's 2024 adjusted earnings, which KBW analysts said was a steep price, though offset by savings potentials.

Nov 27 (Reuters) - Top Canadian banks are expected to post a decline in fourth-quarter profits as choppy markets hurt wealth management and a slow deal pipeline dents income from investment banking, offsetting expected gains from business loans. On average, profit for the Big Six banks are expected to drop 4% from last year, hurt by lower investment banking activity. Royal Bank of Canada (RY.TO) and Bank of Montreal (BMO.TO), which have the largest capital markets businesses, are expected to see the biggest hit to profits. "Business lending was particularly strong and aided by strength in balances outside of Canada," KBW analysts Mike Rizvanovic and Abhilash Shashidharan said. National Bank of Canada (NA.TO) and Toronto-Dominion Bank (TD.TO), also among the Big Six, will report earnings on Wednesday and Friday, respectively.

☆ Stocks finish higher as the Street awaits key inflation data next week
▼ + stars: | 2022-11-25 | by ( Zev Fima | ) www.cnbc.com time to read: +4 min

Stocks finished higher on this holiday-shortened trading week, with all the major U.S. averages posting gains. Under the hood, all sectors closed higher for the week, led by utilities, materials and financials. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. The U.S. Federal Reserve, alongside global central banks, has been trying to get a handle on soaring inflation.

SummarySummary Companies Coal miners struggling to fund expansion plansThermal coal costs more than coking coal after price surgeMost Western bankers pulling back from coal industryLONDON, Nov 24 (Reuters) - It's the best of times, it's the worst of times. At least when it comes to mining coal. With funding hard to come by from Western banks, coal miners outside China have turned more to equity markets this year. "With regard to thermal coal mining, any transaction in coal mining requires an enhanced environmental risk review," a Deutsche spokesperson said, adding that the bank was updating its coal policy. Bens Creek listed shares partly because of the lack of appetite from banks to support any expansion of coal mining, chief executive Wilson said.

Nov 24 (Reuters) - Manulife Financial Corp (MFC.TO) will outsource its property operations in Canada to focus on its entrepreneurial investment management unit, Canada's biggest life insurer said Thursday. The change to a new structure will result in Manulife Investment Management, which overseas the real estate portfolio, shedding 50 jobs, two sources familiar with the matter told Reuters on Thursday. Among other financial services companies, Canada's biggest lender, Royal Bank of Canada (RY.TO) and Bank of Montreal (BMO.TO) have recently cut jobs in the United States. Manulife Investment Management's real estate arm uses a pool of capital to invest in real estate in 29 cities across the United States, Asia and Canada. According to its annual report, the insurer had about C$13.2 billion ($9.90 billion) worth of real estate investments in 2021.

The new targets include a plan for a 35% reduction in so-called Scope 1 and 2 emissions intensity from the oil and gas sector, those linked to clients' own operations and energy use. Intensity is a measure of emissions per unit of output. "Ultimately, the achievement of our Scope 3 target range will require a concerted effort from consumers, industries and governments globally," RBC said in a statement. For the power sector, RBC said it was targeting a 54% reduction in Scope 1 emissions, while for the automotive sector it was aiming for a combined 47% reduction in Scope 1, 2, and 3 reductions. Reporting by Simon Jessop in London and Manya Saini in Bengaluru; Editing by Aurora EllisOur Standards: The Thomson Reuters Trust Principles.

☆ Deutsche Bank names head of semiconductor sector within TMT group
▼ + stars: | 2022-10-18 | by ( ) www.reuters.com time to read: +1 min

Oct 18 (Reuters) - Deutsche Bank (DBKGn.DE) has hired Robert Lee as managing director and head of the semiconductor sector within its technology, media & telecom (TMT) group in the Americas, according to an internal memo seen by Reuters on Tuesday. The memo, the contents of which were confirmed by a Deutsche Bank spokesperson, said Lee comes with over two decades of experience in the technology hardware industry, and has executed deals across banking products including M&A and initial public offerings. The hiring comes at a turbulent time for the U.S. M&A market that has suffered from dampened investor sentiment, particularly for tech companies, amid geopolitical turmoil, rising interest rates and fears of a recession. Lee, who will be based in San Francisco, joins Deutsche Bank from BMO Capital Markets (BMO.TO) and has previously also worked within tech investment banking at RBC Capital Markets (RY.TO) and Jefferies & Company. Register now for FREE unlimited access to Reuters.com RegisterReporting by Manya Saini in Bengaluru; Editing by Krishna Chandra EluriOur Standards: The Thomson Reuters Trust Principles.

☆ Credit Suisse taps RBC, Morgan Stanley for capital increase -Bloomberg News
▼ + stars: | 2022-10-18 | by ( ) www.reuters.com time to read: +1 min

Oct 18 (Reuters) - Credit Suisse Group AG (CSGN.S) is working with banks including Royal Bank of Canada (RBC) (RY.TO) and Morgan Stanley (MS.N) on a potential capital increase, should it need to shore up its balance sheet and raise funds for its restructuring, Bloomberg News reported on Tuesday, citing people familiar with the matter. A capital increase through a possible share sale, under the name Project Ghana, could come after the bank's formal restructuring announcement on Oct. 27, the report added. Credit Suisse and Morgan Stanley declined to comment. Royal Bank of Canada did not immediately respond to a Reuters request for comment. Earlier, Reuters reported citing a source that Credit Suisse has approached at least one Middle Eastern sovereign wealth fund for a capital injection, while some funds are looking at the scandal-hit bank's businesses as potential investment opportunities.

☆ Credit Agricole and CACEIS to buy RBC Investor Services' Europe unit
▼ + stars: | 2022-10-17 | by ( ) www.reuters.com time to read: +1 min

PARIS, Oct 17 (Reuters) - CACEIS, the asset servicing business owned by French bank Credit Agricole (CAGR.PA) and Spanish bank Santander (SAN.MC), has struck a preliminary deal to buy the European asset servicing business of RBC Investor Services (RY.TO). The acquisition, due to be completed by the end of the third quarter in 2023, would result in CACEIS having about 4.8 trillion euros ($4.7 trillion) worth of assets under custody and 3.5 trillion euros of assets under administration, CACEIS said on Monday. The acquisition of the European asset servicing activities of RBC Investor Services will also entail the takeover of an associated Malaysian division. "This combination with RBC Investor Services helps us consolidate our position as a leading European player in asset servicing," said CACEIS Chief Executive Jean-François Abadie. ($1 = 1.0256 euros)Register now for FREE unlimited access to Reuters.com RegisterReporting by Sudip Kar-Gupta Editing by Kim Coghill and David GoodmanOur Standards: The Thomson Reuters Trust Principles.

"And I'm really pleased with the high-caliber bankers who are attracted to both our platform and our culture." Register now for FREE unlimited access to Reuters.com RegisterWhile Wall Street powerhouse Morgan Stanley (MS.N) boosted its ranks by 11% to 81,567, compensation at the firm fell 5%. "We're looking at headcount," James Gorman, Morgan Stanley's chief executive officer, told analysts in a conference call. Separately, Morgan Stanley's chief financial officer in an interview said that the company is "constantly evaluating" its resources, and "when we think about headcount, we always think of it relative to the economic environment." The culls come as a darkening economic outlook and rising U.S. interest rates weighed heavily on dealmaking businesses.

☆ Futures up on higher gold, crude prices; U.S. inflation data awaited
▼ + stars: | 2022-10-13 | by ( ) www.reuters.com time to read: +2 min

Oct 13 (Reuters) - Futures for Canada's resource heavy stock index on Thursday ticked higher, tracking gold and crude prices, with investors avoiding big bets ahead of a crucial U.S. inflation data later in the day. December futures on the S&P/TSX index rose 0.3% after five days of losses on the TSX. Gold prices were steady, while crude oil prices enjoyed extended support from the OPEC+ cuts last week, which the International Energy Agency warned may push the global economy into recession. [GOl/]Register now for FREE unlimited access to Reuters.com RegisterS&P futures rose 0.5% to lead gains among the U.S. stock futures ahead of September consumer prices data due at 08:30 a.m. Canada's stock index (.GSPTSE) closed lower on Wednesday, as U.S. producer price data and minutes from the Federal Reserve's September meeting bolstered expectations for additional rate hikes.

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