HALISTER1: European Financials Pre-Market: EFG, Deutsche, Credit Suisse

European Financials Pre-Market: EFG, Deutsche, Credit Suisse

(Bloomberg) -- The following news may affect European financials today: COMPANY NEWS
  • Deutsche Bank Ratings Cut by Moody’s on Struggle to Overhau
  • Deutsche Bank Mortgage Bond Losses Said to Be Probed by SEC
  • EFG Takes Over BSI After Serious Money Laundering Breach: Finma
    • MORE: EFG International Sees Completion of BSI Acquisition in 4Q
    • BSI Group CEO Coduri Steps Down as Swiss Open Criminal Probe
  • Commerzbank’s Mandel to Evaluate Synergies With Comdirect: FAZ
  • BofA, Credit Suisse in Line for League, Lucre With Bayer Deal
  • CYBG Sees FY16 Costs of GBP730m, ‘Materially Below’ Guidance
  • Banco Espirito Santo 2015 Loss EU2.6b vs Loss EU9b Y/y
  • Intermediate Capital AUM Rise 20% to Record; Plans Special Div
  • Italy Favors Receiving Monte Paschi Stock as Interest on Aid
  • Old Mutual Says Received Approaches for OM Asset Management
  • Paragon Group 1H Underlying Profit GBP71.9m, ROTE 12.7%
  • RBS Unit Pledges to Help U.K. Firms Win GBP2.5b Export
  • Vienna Insurance 1Q Net Income Declines; Combined Ratio Rises
SECTOR NEWS
  • Banks Keep Cutting Bond Traders With One-Third Gone Since 2011
  • U.K. Banks Said to Call for Swift to Boost Cyber Defenses
  • Brexit Seems Increasingly Unlikely to Corporate-Debt Investors
  • Banks Suffer Worst Start to a Year in Commodities in a Decade
  • ‘Massive Bailout’ Needed in Debt-Saddled China, Analyst Chu Says
  • Morgan Stanley’s Gorman Says ‘Stay Tuned’ for Better Returns
  • Philadelphia Sues Big Banks Over Interest Rate-Swap Market
  • Sweden FSA Says New Methods Will Raise Bank Capital Requirements
ANALYSTS
  • Higher Yielding Banks May Rise on More Benign Basel IV: Barclays
  • Cembra cut to underperform vs neutral at JPMorgan
  • ING Raised to buy vs neutral at Goldman
  • KBC Group raised to buy vs neutral at Goldman
  • Santander Brasil Cut to ’Underperform’ at Itau BBA Securities
  • Scor rated new buy at UBS, PT EU32
  • Hannover Re rated new neutral at UBS, PT EU97
BLOOMBERG INTELLIGENCE
  • HSBC $8 Billion TLAC Debt Is Largest 2016 Dollar Bank Bond Sale
  • SocGen Lauds Early TLAC Adoption, Details Unlevel Playing Field
  • U.S. Bank Credit Trends Could Flip to a Headwind This Year
PEOPLE
  • Deutsche Bank Latin America CEO Said Planning to Leave Firm
  • Goldman Said to Hire Banker Kamo From Credit Suisse: Reuters
  • HSBC Names Bibbey Head of FX Cash Trading and Risk Management
AGENDA
  • Earnings/Sales/Calls: Paragon Group (1H), Intermediate Capital Group (FY), Vienna Insurance (1Q)
  • Roadshows: KBC Groep (in Edinburgh)
  • Shareholders Meetings: Metro Bank, Natixis
  • Weekly finance agenda here
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Stefano Coduri (BSI SA)

Topics
Financial Firm Departures

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UUID: 7947283

HALISTER1: Spanish Bonds Underperform on Talk of 10Y Sale, Trader Says

Spanish Bonds Underperform on Talk of 10Y Sale, Trader Says

(Bloomberg) -- Speculation in the market of potential 10Y SPGB bond issue saw 10Y Spain underperform by ~1bp on 5s10s30s fly yday, says one trader based in London.
  • Lack of auctions from Italy, Spain leaves door open to possible 50Y BTP or 10Y Bono, writes JPMorgan in a client note
  • Potential additional issues expected to be sold in May/June include new 10Y Spain, 50Y Italy, Citi writes in a client note
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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UUID: 7947283

HALISTER1: UK Breakevens Offer Value on ASW; Month-End, Coupon Support: RBS

UK Breakevens Offer Value on ASW; Month-End, Coupon Support: RBS

(Bloomberg) -- There is value in buying the UKT I/L 2046s cash breakeven, RBS strategist Simon Peck writes in a client note.
  • Recommends owning the bond on the IL 37/46/55 real yield fly, and buying on ASW with the issue appearing 2.5bps cheap vs fitted ASW curve
  • Still constructive on U.K. breakevens: despite recent underperformance, fundamental drivers remain unchanged
  • I/L 2046s syndication likely to re-focus investors on the market, believe they will conclude this is a good opportunity to buy linkers
  • Size estimated at GBP3b notional, equates to approximately GBP12m/bp in risk terms
  • Syndication will affect month-end index extension, extending U.K. Actuaries FTSE All Stocks index by +0.07 and the >15y index by +0.01
  • I/L coupon payments for GBP800m that were due yesterday should result in some re-investment flows from investors who track long-dated benchmarks
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Simon Peck (Royal Bank of Scotland Group PLC)

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UUID: 7947283

HALISTER1: USD/MYR Extends Gain; Singapore Orders BSI Shut Amid 1MDB Probe

USD/MYR Extends Gain; Singapore Orders BSI Shut Amid 1MDB Probe

(Bloomberg) -- USD/MYR rises to 4.1298, strongest since March 16, after Singapore’s central bank orders BSI SA’s unit in the city-state to shut down; first time in 32 yrs it has withdrawn license from a merchant bank.
  • Next resistance level at 4.1375, 50% retracement of decline from Jan. 7 to April 13
  • USD/MYR now up 0.9% to 4.1220
  • SGD/MYR up 0.8% to 2.9839
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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UUID: 7947283

HALISTER1: EFG Takes Over BSI After Serious Money Laundering Breach: Finma

EFG Takes Over BSI After Serious Money Laundering Breach: Finma

(Bloomberg) -- BSI has acted in serious breach of money laundering rules in connection with corruption allegation surrounding Malaysia’s 1MDB, Swiss financial regulator Finma says in statement.
  • Finma says it will seize BSI’s profits to the tune of CHF95m, start enforcement procedures against two responsible former bank employees
  • Finma says approves complete takeover of BSI by EFG on the condition that BSI will be full integrated and dissolved
  • Finma says BSI misconduct in relation to 1MDB was “particularly grave” as bank board and senior management made conscious and repeated decision to continue commercially attractive client relationships even after Finma had pointed out grave risks
Link to Statement:Link
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
BSI IN (BSI Ltd/India)
EFGN SW (EFG International AG)
PETR4 BZ (Petroleo Brasileiro SA)

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UUID: 7947283