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Banks typically sold these perpetual bonds - known as AT1 bonds - with five years before an option to repay was triggered. In the past, investors got their money back, and banks replaced the bonds with new ones, but some are changing tack. The banks' actions show how the wipeout of billions of dollars of Credit Suisse AT1 bonds still reverberates around this market, which is estimated at roughly $275 billion. "The AT1 market is splitting," said Alessandro Cameroni, a portfolio manager at asset manager Lemanik. SHOCK ABSORBERThe AT1 bonds were designed to help banks absorb losses, and they count towards their capital buffers.

Persons: Kai Pfaffenbach, Banks, Alessandro Cameroni, Lemanik, Peter Harvey, Federated Hermes, Italy's, Morgan Stanley, Karsten Junius, J . Safra Sarasin, Chiara Elisei, Carlo Giovanni Boffa, Jane Merriman Organizations: REUTERS, Suisse, Raiffeisen Bank, Reuters, Deutsche, Aareal Bank, Credit Suisse, Investors, Federated, Lloyds, Societe Generale, UBS, Santander, J ., Thomson Locations: Frankfurt, Germany, Ukraine, Swiss, Schroders, Russia

☆ TripAdvisor rival GetYourGuide nears $2 billion valuation as it raises fresh funds to invest in A.I.
▼ + stars: | 2023-06-01 | by ( Ryan Browne | ) www.cnbc.com time to read: +2 min

The Berlin-based company said Thursday it had raised the funding through a mix of equity and debt, with $85 million of equity investment being led by U.S. asset management firm Blue Pool Capital. The investment values the company at nearly $2 billion, up from GetYourGuide's last publicly-disclosed valuation of $1.4 billion, according to a person familiar with the matter. Total investment in GetYourGuide, including both equity and debt, now stands at just over $1 billion. Rather than advertise hotels, flights and other forms of transportation, GetYourGuide sells its users experiences and things to do in unexplored places. These experiences are offered through third-party suppliers on its platform, with GetYourGuide taking a commission on each booking.

Persons: UniCredit, Johannes Reck, GetYourGuide, Reck, didn't Organizations: U.S, Blue Pool Capital, GetYourGuide's, KKR, Temasek, BNP, Citibank, KfW, GetYourGuide, CNBC, omicron Locations: U.S, Berlin, GetYourGuide

☆ ECB warns of hit to top European banks if funds run into trouble
▼ + stars: | 2023-05-30 | by ( ) www.reuters.com time to read: +2 min

The biggest risk it identified was that shadow banks withdrew their funds from banks, such as deposits and repurchase agreements. These account for 13% of all traditional banks' liabilities -- or more for larger banks. This could happen if the shadow banks -- or non-bank financial intermediaries (NBFI) in the regulators' jargon -- were themselves hit by outflows or lost confidence in a bank. Other spillover channels included forced sales of assets by shadow banks, which would cause losses at traditional banks because their portfolios often overlap or are correlated, the ECB said. It added that distress at systemically important lenders would also spell trouble for shadow banks.

☆ ION unlocks financing to finalise Italy's Prelios buy-sources
▼ + stars: | 2023-05-22 | by ( ) www.reuters.com time to read: +1 min

ION has been in talks for months with U.S. investment fund Davidson Kempner to acquire Prelios, a bad loan specialist which DK took private in 2018. While not all of the banks have completed all the necessary internal steps to approve the financing the sources said the finalisation of the deal was imminent. A stalemate over the duration of the financing has been overcome through a 'bridge to bond' structure with a longer maturity than usual, one of the sources said. 'Bridge to bond' financing normally requires the borrower to tap markets within 12-18 months to repay the loan. ION has a single-B credit rating - below the 'BBB' investment grade threshold - by Moody's and S&P Global, according to Refinitiv data.

☆ Analysts say these 11 top-performing stocks are set to soar even more — giving one over 85% upside
▼ + stars: | 2023-05-18 | by ( Weizhen Tan | ) www.cnbc.com time to read: +2 min

The year is nearing its halfway mark, and global stocks have been doing much better than they had in volatile 2022. CNBC Pro screened for stocks that are beating the market nearly halfway into the year — and that analysts love. Only one stock had a 100% buy rating: Japan's Kansai Electric Power Company , a nuclear electric power generation firm. U.S. semiconductor firm Onsemi also made the screen, with analysts giving it 28% potential upside and a nearly 60% buy rating. Italian bank UniCredit had the highest potential upside in the list, at 85%, on top of a decent 88% buy rating.

Foreign holdings of Italian government paper increased in February after 10 consecutive monthly declines, according to Bank of Italy data. "This is a magic moment for Italian bonds," he told Reuters. The share of Italian government debt held by foreign investors fell to below 20% at the end of 2022 from around 50% before the 2008 financial crisis, Bank of Italy data shows. The Italian Treasury has already taken steps to shore up demand for its bonds as the ECB retreats, by boosting purchases among domestic households and companies. Together, Italian families and firms now hold around 215 billion euros, or 9%, of Rome's debt, UniCredit's Cazzulani said, the highest level since mid-2015.

There are some signs that the broader $275 billion AT1 market is recovering. Reuters GraphicsLast month, Japan's Sumitomo Mitsui Financial Group (8316.T) was the first major global bank to sell AT1s since the March rout. With time, analysts expect UBS to sell AT1s aplenty to meet its capital requirements. It has a 700 million Singapore dollar ($755 million) AT1 bond repayable in November followed by a heftier $2.5 billion bond in January. RATINGS GAMEInvestor appetite for a UBS AT1 could also hinge on its future credit profile.

☆ Adidas runs harder, but also stands still
▼ + stars: | 2023-05-05 | by ( ) www.reuters.com time to read: +2 min

That beat analyst expectations of 15 million euros, and was aided by double digit sales growth in Latin America and Asia. The good cheer partly reflects the low expectations of Adidas’s investors. They hold shares worth about half their mid-2021 level, and while sales globally didn’t fall 4% as forecast, they still dipped 1% year-on-year. Meanwhile, CEO Bjorn Gulden has to decide what to do with stacks of Yeezy trainers in storage ever since the company severed ties with the musician. Although certain products like Gazelle and Sambo are doing well, the 40% margins on Yeezy sales were ten times Adidas’s overall level.

☆ HSBC vote gives Ping An a fresh shove towards exit
▼ + stars: | 2023-05-05 | by ( ) www.reuters.com time to read: +2 min

LONDON, May 5 (Reuters Breakingviews) - Ping An Insurance (601318.SS) is having an underwhelming week. Instead, HSBC’s results were decent and the AGM resolution was crushed. True, 20% of votes cast went in favour of plans for a strategic review each quarter which could assess whether to spin off HSBC’s key Asian arm, and to reinstate the bank’s pre-Covid dividend. Ping An could continue to chunter away at HSBC boss Noel Quinn from the sidelines. Throw in the lack of investor support implied by the vote, and Ping An’s essential choice – to pipe down or to sell its stake – has become ever more stark.

☆ Italian bank Intesa raises profit target after beating forecasts
▼ + stars: | 2023-05-05 | by ( Valentina Za | ) www.reuters.com time to read: +1 min

The lender forecast 7 billion euros ($7.7 billion) in net profit this year, having said in February that it would top last year's result of 5.5 billion euros. The upgrade comes after fellow heavyweight UniCredit (CRDI.MI) raised its 2023 profit target this week by more than a fifth. Intesa reported first-quarter net income of 1.96 billion euros, far above a 1.54 billion euro consensus in analyst forecasts compiled by Reuters. Total revenue topped expectations at 6.06 billion euros, up 7% from the previous quarter. However, it said the boost from higher rates would continue to drive profit higher and forecast more than 13 billion euros in net interest income this year.

ROME, May 5 (Reuters) - Italy's Treasury is open to reducing its 64% stake in Monte dei Paschi di Siena (MPS) (BMPS.MI) through one or more share sales on the market, three people briefed on the matters told Reuters. After rescuing MPS at a cost of 5.4 billion euros ($6 billion) for taxpayers, Rome pumped another 1.6 billion into the Tuscan bank last November when it covered 64% of a 2.5 billion euro capital raise. MPS had to raise fresh capital to fund staff exits and replenish its capital reserves after the Treasury failed to clinch a sale of the bank to UniCredit (CRDI.MI) in 2021. Prime Minister Giorgia Meloni said several times that MPS's privatisation should foster the creation of several large banking groups in the country. ($1 = 0.9081 euros)Reporting by Giuseppe Fonte in Rome and Valentina Za in Milan; Editing by Susan FentonOur Standards: The Thomson Reuters Trust Principles.

☆ Adviser to Italy's Treasury tables proposal for windfall tax on banks
▼ + stars: | 2023-05-04 | by ( Giuseppe Fonte | ) www.reuters.com time to read: +2 min

European lenders have consistently beaten expectations in recent quarters as higher rates set by the European Central Bank (ECB) to curb inflation have driven profits higher, while leaving savers disgruntled. Government sources said last week that Economy Minister Giancarlo Giorgetti was working on a windfall tax on banks to fund relief measures for families hit by inflation, which is running above the euro zone average. Giorgetti told parliament that the government "cannot and will not" ignore the fact that banks have seen revenues increase due to higher interest rates, but have not adjusted rates on deposits accordingly. UniCredit (CRDI.MI) CEO Andrea Orcel confirmed on Wednesday that there were discussions ongoing in Italy about a new tax on banks' profits, but there was no certainty it would be introduced. Madrid is planning to raise around 6 billion euros ($6.63 billion) from a windfall tax on energy companies and banks.

☆ UniCredit to use 300 mln euro charges for staff exits-sources
▼ + stars: | 2023-05-04 | by ( ) www.reuters.com time to read: +2 min

In reporting stronger-than-expected quarterly results, UniCredit on Wednesday raised its 2023 profit goal above 6.5 billion euros ($7.2 billion) and said the figure included 300 million euros in restructuring charges it would book mostly in the second quarter. UniCredit last year invited applications from staff who wanted to retire early and were within five years of qualifying for a pension. On Dec. 1 it signed an accord with unions and booked 239 million euros in charges to fund voluntary exits to be replaced by younger hires. Eager to protect its branch network, UniCredit allocated 80% of the 2022 early retirement packages to people from its central offices, raising complaints from unions, the source added. UniCredit underwent years of restructuring under CEO Jean Pierre Mustier, but cost cuts remain a key plank of new CEO Andrea Orcel's strategy.

Lenders wasted little time in charging more for loans when interest rates rapidly rose from an almost 15-year slumber around zero last year, but most have dragged their feet on boosting deposit rates paid to millions of their customers. Money market funds are proving popular among savers seeking bigger returns on their cash as high levels of inflation persist. Data from Refinitiv Lipper showed more than 34 billion euros ($37.6 billion) of net flows into European money market funds in March, the best-selling asset type that month. Fidelity International also reported an 8% year-on-year uplift in flows into money market funds on its investment platform between Jan. 1 and April 26. Some lawmakers have criticised banks for the mismatch between what they charge borrowers and the interest rates offered to savers.

☆ Credit Agricole has no plans to raise stake in Italy's Banco BPM
▼ + stars: | 2023-05-04 | by ( ) www.reuters.com time to read: +2 min

Credit Agricole emerged as Banco BPM's single biggest investor a year ago, shortly after UniCredit (CRDI.MI) ditched a buyout offer for the smaller rival. Credit Agricole recently increased its initial 9.2% stake, but it would need supervisory clearance to cross the 10% threshold. When asked whether Credit Agricole could help shield Banco BPM from potential takeovers, Maioli said: "We don't play that part. Credit Agricole Italy two years ago spent 855 million euros ($941.36 million) to buy regional Italian bank Creval, after agreeing to rescue three small ailing lenders in 2017. "I think the priority of all the parties involved should be that of strengthening Italian banks," he said.

☆ Shopify offloads its logistics baggage
▼ + stars: | 2023-05-04 | by ( ) www.reuters.com time to read: +2 min

TORONTO, May 4 (Reuters Breakingviews) - Shopify (SHOP.TO) is finding that simpler is better after all. Investors welcomed the move: Shares of the company led by Tobias Lütke shot up over 20% in morning trade. Shopify wanted to build out its own logistics business, and now it's leaving that job to Flexport instead. That said, Shopify already uses partnerships with other companies to expand in hard-to-crack areas like fintech, including with payments giant Stripe and buy-now-pay-later company Affirm (AFRM.O). Although Shopify said on Thursday that first-quarter revenue rose 25% year-on-year, beating analyst expectations, Shopify's small-business customers are under pressure from rising interest rates.

☆ Premarket stocks: Why these bank stocks aren't getting crushed
▼ + stars: | 2023-05-04 | by ( Julia Horowitz | ) edition.cnn.com time to read: +7 min

First Horizon (FHN) and TD Bank (TD)also called off a $13 billion deal Thursday that would have formed America’s sixth-largest bank. The Stoxx Europe 600 Banks Index, which tracks big EU and UK banks, has shed 14% over the same period. Year-to-date, European banks are up more than 3%, while US lenders are down 26%. Broader market dynamics have also helped European bank stocks. The European Central Bank, which meets Thursday, has also been slower than the US Federal Reserve to hike interest rates.

☆ Morning Bid: Bank reverb frames Fed decision
▼ + stars: | 2023-05-03 | by ( ) www.reuters.com time to read: +5 min

While there was some minor repricing of Fed probabilities in the futures market, the latest bout of bank stock nerves is unlikely to change the Fed's course on its own. A White House economist on Tuesday said Fed rate hikes were having a negative impact on the banking sector. Signs of some loosening of a very tight labor market may also encourage the Fed that its rate hiking job is done after this week. Private sector job readings for April are due later today along with service sector surveys for the month. With the Fed in view alongside the debt ceiling crunch and bank stock retreat, longer-term Treasury bonds rallied.

☆ UniCredit raises 2023 goals after stronger-than-expected quarter
▼ + stars: | 2023-05-03 | by ( Valentina Za | ) www.reuters.com time to read: +3 min

UniCredit forecast a 2023 profit above 6.5 billion euros ($7.2 billion), up from January guidance that broadly matched its 2022 result of 5.2 billion euros. Net profit in the first three months came in at 2.06 billion euros, well above an average analyst forecast of 1.3 billion euros in a bank-provided consensus, boosted by an 18% yearly jump in revenues. Net interest income in the quarter topped expectations rising 43.6% year-on-year to 3.3 billion euros. Net fees also unexpectedly strengthened 10.7% from the previous quarter, surpassing forecasts at 2.0 billion euros. "There are a number of opportunities we see across Europe [but] financially we still represent the best value proposition for our investors," he said.

☆ BNP only partly earns title of Europe’s JPMorgan
▼ + stars: | 2023-05-03 | by ( ) www.reuters.com time to read: +2 min

LONDON, May 3 (Reuters Breakingviews) - Bank investors and analysts often like to say that BNP Paribas (BNPP.PA) is the closest Europe has to a JPMorgan (JPM.N), the goliath of U.S. banking that just bought First Republic Bank (FRC.N). Compare that with Deutsche Bank (DBKGn.DE), whose deposits fell by 4.7% over the same period. JPMorgan will earn a 19% return on tangible equity this year, using Visible Alpha consensus data, which is good even for a U.S. bank. There’s no shame in losing to a bigger stateside rival on returns, but BNP also risks falling behind regional peers. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Top banking CEO warns of further volatility and predicts more U.S. rescues
▼ + stars: | 2023-05-03 | by ( Silvia Amaro | ) www.cnbc.com time to read: +1 min

A top banking executive highlighted a possible divergence in fortunes for the finance sector in both Europe and the U.S., suggesting that more rescues of American regional lenders are likely. "In the U.S., it is about distressed banks being rescued, I don't see any distressed bank being rescued in Europe," Andrea Orcel, the CEO of UniCredit, told CNBC's Joumanna Bercetche Wednesday. JPMorgan on Monday acquired a substantial majority of assets of First Republic, which included about $92 billion of deposits. Leading economists have told CNBC that further rate increases could expose more fragilities in the U.S. banking sector. But banking authorities in the European Union, where Italy's UniCredit is headquartered, have repeatedly said they do not see the same level of risk in the region, arguing European banks are well-capitalized and face stronger regulation.

☆ UniCredit CEO: Positive macroeconomic environment and continued transformation boosting results
▼ + stars: | 2023-05-03 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailUniCredit CEO: Positive macroeconomic environment and continued transformation boosting resultsAndrea Orcel, CEO at UniCredit, discusses first-quarter earnings and the bank's outlook for rates and cost of risk over the next year.

☆ UniCredit’s M&A hunt has more glitter than gold
▼ + stars: | 2023-05-03 | by ( ) www.reuters.com time to read: +2 min

The resulting improved valuations should in theory put the veteran dealmaker in a strong position to pounce on a rival. As Orcel pushed up earnings, UniCredit shares have recovered and their ratio with BPM is now back to where it was before the conflict. Still, the two lenders have diverged operationally: after a better-than-expected quarter UniCredit is now forecasting net earnings of over 6.5 billion euros in 2023, almost double the 3.9 billion euros it delivered in 2021. At 3 euros, its projected earnings per share this year are more than four times the 0.7 euros seen in 2021, Refinitiv data shows. (By Lisa Jucca)(Corrects to change “5.5 billion euros” to “over 6.5 billion euros” in paragraph three.)

☆ Slowing growth will crash European stock party
▼ + stars: | 2023-05-02 | by ( Francesco Guerrera | ) www.reuters.com time to read: +6 min

LONDON, May 2 (Reuters Breakingviews) - European shares have been on the rise for seven months, outshining their U.S. counterparts, and are now just 6% below their record high. Luck played a part in the recent European surge. Natural gas prices have fallen more than 80% since their August peak, boosting economic growth and reducing companies’ costs. Analysts currently expect a 0.4% fall in European companies’ earnings per share (EPS) in 2023, according to Barclays. European investors have had an unusually enjoyable, and profitable, ride.

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