Tag Archives: Banking Services (TRBC)

Australian shares close higher on Fed pledges, technology shares shine | Instant News

(Update to close)

By Arundhati Dutta

30 July (Reuters) – Australian shares closed higher on Thursday as investors welcomed the Federal Reserve’s statement that they would use “various tools” to support a virus-stricken US economy, with an increase in technology stocks ahead of a series of key US earnings.

The S & P / ASX 200 index closed 0.74% higher at 6,051.1, halting two consecutive sessions of decline.

Fed policymakers reiterated pledges to keep interest rates near zero for as long as needed to recover from a coronavirus pandemic, but warned that “the economic path will be highly dependent on the path of the virus”.

“The fact that the US Federal Reserve has some pretty dovish comments gives investors little confidence that there will be support, even though we continue to see large COVID cases in Australia,” said James Tao, a market analyst at Commsec.

Australia reports a record jump in COVID-19 new cases with at least 13 deaths and more than 700 new infections mainly in the state of Victoria.

“We have lower US futures at the moment, so we can see the US market giving back some of the recent gains … that might lead to a softer start for Aussie stocks tomorrow,” Tao said.

However, he said, “That is one situation where you cannot look too far ahead with much certainty.”

Most major sub-indices closed higher, with gold stocks the only drag after the gold price fell.

Technology shares led gains by 2.4%, marking their best session in more than a week, after Facebook, Apple and Alphabet’s Google closed higher overnight ahead of their earnings.

Among the top gainers, Afterpay Ltd and WiseTech Global rose 1.6% and 5.9% respectively.

Energy stocks closed 1% higher, helped by heavyweights Woodside Petroleum and Santos Ltd.

In New Zealand, the benchmark S & P / NZX 50 index rose 0.8% to 11,692.02, with main gainers Mainfreight Ltd and A2 Milk Co. each up nearly 3%. (Reporting by Arundhati Dutta in Bengaluru; Editing by Subhranshu Sahu)


image source

Australian stocks give up on viral concerns; Fed decision awaited | Instant News

(Update to close)

By Soumyajit Saha

29 July (Reuters) – Australian shares surrendered initial gains to settle lower on Wednesday, as investors were cautious in the face of a worsening domestic corona virus crisis, and ahead of US Federal Reserve policy decisions and major earnings reports.

The S & P / ASX 200 index fell 0.2% to 6,006.4 in low trading volume after rising 0.5% previously.

Australian officials send emergency medical teams to nursing homes in Melbourne, one of several virus clusters that have sprung up in pubs, restaurants and schools throughout the city, to help deal with the epidemic that is spreading quickly.

“We see evidence in the US earnings reporting season for damage done by new outbreaks, and we can see the same effect in the reporting season here,” said Michael McCarthy, chief market strategist at CMC Markets.

Wednesday’s movement also pointed to “a lack of commitment from buyers and sellers”, especially ahead of risk events such as the Fed’s policy decisions and earnings reports from US heavyweight technology companies later this week, McCarthy added.

Dampening investor sentiment further, data showed Australian consumer prices fell by a record last quarter as the coronavirus crisis caused one slide in various costs.

Among the losers, the mining sector lost 1.6%, with BHP Group and Rio Tinto down 2% and 0.7% respectively.

Energy stocks fell more than 1%, with Woodside Petroleum Ltd and Santos Ltd losing 1.3% and 1.5%, respectively.

Finance, however, rose with the ‘big four’ banks up between 1.1% and 2.1%, after domestic financial watchdogs withdrew demand for banks and insurance companies to freeze dividends due to a pandemic.

IGO Ltd nickel miners are the worst performers on the benchmark index after signaling weakening of gold and nickel production in 2021.

New Zealand’s S & P / NZX 50 benchmark index ended 0.2% higher at 11,599.4, helped by gains in financial stocks and health care. (Reporting by Soumyajit Saha in Bengaluru; Editing by Subhranshu Sahu)


image source

The Australian regulator lifted the freezing of bank dividends, adding to the limit | Instant News

SYDNEY (Reuters) – Australian financial watchdogs on Wednesday withdrew bank and insurance company requests to freeze dividends because of the new corona virus, but ordered them to pay less than half of their profits to shareholders for the rest of the year.

The Australian Prudential Regulatory Authority (APRA) asks the financial sector to postpone dividend payments in April when government agencies race to protect the economy from financial market turmoil and travel closures and much of the community’s activities.

The new guidelines push banking shares higher, because the directive allows some of the country’s biggest companies to continue payments to shareholders. This will also ensure that they maintain a larger than usual buffer against further financial shocks, the regulator said.

“Although the environment remains a high risk, we now have stronger feelings about how the Australian economy and financial institutions are being influenced by COVID-19,” APRA Chair Wayne Byres said in a statement.

“Banks and insurance companies need not continue to delay capital distribution, provided their payments are moderate to a sustainable level based on strong stress testing, and continue to prioritize supporting customers and their economies.”

The change occurred immediately before the country’s largest bank, Commonwealth Bank of Australia and many other Australian companies reported annual results, when they usually announced final dividends.

“We believe this significantly increases the probability of the CBA declaring a final dividend with the results released on August 12,” said Azib Khan, an analyst at Morgans Financial.

CBA, which has a different reporting date than other major Australian banks, provides the final dividend announcement before the initial direction of APRA. That’s because it will post the results of the full year on August 12.

APRA’s guidance is not mandatory but Westpac Banking Corp, Australia and New Zealand Banking Group Ltd, and National Australia Bank Ltd, postpone or deduct dividend payments worth more than A $ 7 billion.

Shares in four major Australian banks are all more than 2% higher on the news.

Reporting by Paulina Duran, Byron Kaye and Renju Jose; Editing by Richard Pullin


image source

Australian stocks rose because of gains in banks because regulators lifted the dividend freeze | Instant News

* Banks rise because regulators lift freeze dividends

* Technology shares hit their lowest level in almost 2 weeks

* NZ is set to take a 5 day loss

By Shruti Sonal

29 July (Reuters) – Australian shares were slightly higher on Wednesday, boosted by strength in financial and gold stocks, although gains were limited due to protracted concerns over the economic impact of the corona virus.

The S & P / ASX 200 index was up 0.5% at 6051.1 points at 0123 GMT. The benchmark closed down 0.4% on Tuesday.

Finance rose 2% after the country’s regulator withdrew banks and insurance companies’ demands to freeze dividends because of the new coronavirus.

The country’s main lender, Commonwealth Bank of Australia rose more than 2.4%, while the Australian and New Zealand Banking Groups and Westpac Banking Corp each rose more than 3%.

Gold stocks rose more than 1%, helped by rising gold prices as US Federal Reserve policymakers begin a meeting expected to provide more monetary stimulus to support the coronavirus-affected American economy.

Chalice Gold Mine jumped more than 7% after the initial diamond drill program at its Pyramid Hill project confirmed a large gold system at Karri Prospect.

Among individual shares, engineering contractor CIMIC Group rose more than 6% in talks to sell 50% of its mining services business, Thiess.

However, other sub-indexes fell due to a standoff in negotiations on US economic stimulus and mixed corporate earnings reports in Europe which damaged global investor sentiment.

Concerns also remain attached to the surge in coronavirus cases in the country, when Australian officials sent an emergency medical team to a nursing home in Melbourne to help deal with the spread of infections that spread rapidly.

The technology sub-index fell as much as 1.5%, following losses on Wall Street peers, reaching their lowest level in almost two weeks.

Buy now paid heavyweight then Afterpay Ltd fell more than 2.6% and led the losses on the sub-index.

Energy stocks fell 0.9%, eyeing a fourth straight session of losses, as oil prices fell on Tuesday.

New Zealand’s S & P / NZX 50 benchmark index rose 0.3% and is set to stop a five-day losing streak on the back of gains in the financial sector.

Reporting by Shruti Sonal in Bengaluru; Editing by Krishna Chandra Eluri


image source

Direcional Brazilian homebuilder cancels Riva 9 IPO | Instant News

SAO PAULO, July 28 (Reuters) – Brazilian homebuilder Direcional Engenharia SA has canceled an initial public offering by a subsidiary of Riva 9, according to a security filing on Tuesday.

Direcional cited adverse market conditions as a reason to cancel the IPO, which will be priced on Tuesday in a bid estimated to total around 900 million reais ($ 174 million).

$ 1 = 5,1651 reais Reporting by Carolina Mandl Editing by Chris Reese


image source

Italia Intesa said UBI’s offer to succeed was due to an extended deadline | Instant News

MILAN (Reuters) – Intesa Sanpaolo Italy (ISP.MI) said it expected a takeover bid for rival UBI Banca (UBI.MI) to be fully successful as market regulator Consob extends it two days to give shareholders more time to make decisions.

FILE PHOTOS: Italian bank logo Intesa Sanpaolo seen in Milan, Italy, January 18, 2016. REUTERS / Stefano Rellandini / Photo File

Intesa and UBI have been facing each other since mid-February because of an offer of 4.1 billion euros ($ 4.8 billion) in paper and cash which was not asked to form the euro zone’s seventh largest banking group.

The offer will expire on Tuesday but Consob said it has extended it to Thursday to protect shareholders after asking UBI for clarification about communications issued in connection with the offer, which UBI provided on Monday.

Intesa has so far earned 43.5% of UBI.

“Based on the taking so far … and taking into account the opinions that have emerged among UBI shareholders, Intesa is considering an offer that is destined for full success,” a spokesman for Italy’s second-biggest bank said in a note.

Where declined to comment.

This offer is valid with a 50% takeover of UBI’s capital plus one share. Intesa targets 66.67% revenue to ensure it controls the outstanding shareholder resolution, so that it can absorb UBI and maximize projected savings.

High acceptance will also make it easier for Intesa to fulfill its antitrust commitment to sell 532 joint group branches, mostly owned by UBI.

Someone at the bid camp said institutional investors, who always waited until the last day to tender their shares, would encourage a significant increase in revenue.

The person said that the withdrawal so far consisted mostly of local investors, many of whom initially opposed the offer but accepted it after Intesa this month raised the premium to 40% from 24% versus UBI’s closing price on the day the deal was announced.

Intesa ruled out further changes to the terms of the offer after extension.

UBI has rejected the sweetened offer by saying it still failed to reflect the value of the bank.

But Intesa expects taking up to 80% in the best case scenario, two sources in the Intesa camp say.

Two of UBI’s largest single investors who hold an aggregate of around 17% of banks – British funds Silchester International Investors and Parvus Asset Management Europe – have not revealed their attitude regarding the offer.

Even without their support, investors are not expected to contribute more than about 30% of UBI’s capital, according to two sources, possibly giving up the majority Intesa needed to control an extraordinary shareholder meeting.

UBI shares closed down 8.8% on Monday after the deadline ended on Friday for investors to buy shares in the market and exchange them for an offer.

Reporting by Valentina Za; editing by James Mackenzie, David Evans and Tom Brown


image source

Gold stocks, comments c.bank gives Australian shares a slight rise | Instant News

* Australia witnessed the biggest daily surge in virus deaths over the weekend

* Lynas Corp jumped 12% based on contracts with the Pentagon

* Gold shares rise as gold gains due to US-Chinese tensions

With an arpit

27 July (Reuters) – Australian stocks edged higher on Monday as gold shares rose as rising Sino-US tensions and positive comments from central bank officials allayed concerns about the economic downturn from the second wave of corona virus infection.

A senior Reserve Bank of Australia said he was ready to buy government bonds to support the economy affected by the country’s virus if market conditions deteriorated significantly.

Australia recorded the biggest jump in COVID-19 deaths on Sunday when a second wave of infections spread throughout Victoria, the most populous country next to New South Wales.

The S & P / ASX 200 index was up 0.2% at 6,037.4, at 0105 GMT. The benchmark closed 1.16% lower on Friday.

However, broader sentiment was subdued as a diplomatic upheaval between the two biggest economies which heated up after Beijing ordered the United States to close its consulate in Chengdu last weekend. The move came in direct response to Washington’s closure of the Chinese consulate in Houston.

Gold stocks posted gains as gold prices were set to hit record highs on solid safe-haven demand amid rising Sino-US tensions, helping metals and mining sub-indices trade in positive territory.

AngloGold Ashanti shares registered in Australia rose by 8.4%, while Newcrest Mining added 2.8%.

Lynas Corp jumped 12% after rare earths miners said it signed a contract with the US Department of Defense to begin initial design work at a separation facility in Texas.

Woodside Petroleum and Santos led the decline in the energy index, which dropped 1.5%.

The financial sector rose 0.4% lower, with Insurance Australia Group extending losses from last week after recording a 70% decrease in cash income for 2020.

New Zealand’s S & P / NZX 50 benchmark index rose 0.1% lower to 11,620.79.

Local Australian shares and the New Zealand Banking Group fell 0.6%, while Milk fell 1.1%.

Reporting by Arpit Nayak in Bengaluru, Editing by Sherry Jacob-Phillips


image source

Australian shares closed lower due to a Wall Street selloff, NSW restrictions | Instant News

* CSL drags the health sector lower

* Australian benchmark is down 0.2% every week

* NZ slip (Update to close)

By Nikhil Subba

24 July (Reuters) – Australian shares closed lower on Friday, led by technology shares after Wall Street plunged overnight triggering a similar reaction in the country, while indications of a worsening COVID-19 situation added to the gloom.

The S & P / ASX 200 index closed down 1.16% at 6,024.0, following a 0.3% increase on Thursday. On a weekly basis, the benchmark is down around 0.2%.

The main US index fell overnight between a little more than 1% to more than 2%, after US Treasury Secretary Steven Mnuchin signaled another round of stimulus checks for the United States early next month.

“Mnuchin’s words are cheap and mostly political … the economy is broken and that means they have to send checks every month to keep it stable until the election. That will make the United States bankrupt and the USD will collapse,” said Mathan Somasundaram, portfolio strategist the market at Blue Ocean Equities.

Mnuchin’s comments came as US jobless claims unexpectedly rose higher last week amid a revival of COVID-19 cases in the country.

Domestic investor sentiment worsened after restrictions were reintroduced in New South Wales on Friday, as coronavirus infections continued to increase.

Technology shares fell 2.1% led by Megaport Ltd, down 6.3%, followed by Bravura Solutions Ltd, losing 3.6%

Drug maker CSL Ltd finished down 1.9% at its lowest close since May 29 after Morgan Stanley cut its price target on its shares, citing “greater depression” in plasma collections than anticipated.

The pharmaceutical giant dragged its health index 1.6% down to its lowest close since July 14.

Financial shares fell 1.5% with all Big Four banks closed in negative territory.

The energy index fell 1% led by Cooper Energy Ltd, down 7.2%, followed by Whitehaven Coal, losing 3.6%.

In New Zealand, the benchmark S & P / NZX 50 index fell 0.5% to 11,636.3.

The top loss was the Kiwi Property Group, down 3.7%, followed by Ryman Healthcare, losing 2.1%. (Reporting by Nikhil Subba in Bengaluru; Editing by Krishna Chandra Eluri)


image source

UBI Italia rejects Intesa’s increasing takeover offer | Instant News

MILAN (Reuters) – UBI BancaUBI.MI) on Thursday rejected a takeover offer by rival Intesa Sanpaolo (ISP.MI), said it still failed to reflect the real value of the fifth largest bank in Italy and was enough to give gifts to its shareholders.

FILE PHOTOS: UBI bank headquarters seen in Brescia, Italy, March 9, 2016. REUTERS / Alessandro Bianchi / Photo File

Intesa and UBI have been in big trouble about what will become one of the biggest banking mergers in Europe since the global financial crisis.

In an effort to win UBI’s core shareholders, Intesa said last week it would offer 0.57 euros in cash in addition to 1.7 new Intesa shares for each UBI share.

Intesa, who had previously ruled out increasing bids, said it would spend up to 652 million euros to offer a 40% premium on UBI’s closing price on the day the offer was launched, up from the initial 24%.

Although UBI rejects the offer, analysts expect generous premiums to convince shareholders. Sweeteners last week encouraged investors holding 20% ​​of UBI to say they would tender their shares.

But UBI said the cash component only partially offset the lack of valuation that the bank and its advisers gave at 1.1 billion euros.

The implicit exchange ratio increased from 2.0 Intesa shares for each UBI share is still below the average ratio according to UBI must be 2.4 times.

Italy’s second-largest bank began its bid on UBI in mid-February, a few days before COVID-19 transmission hit Italy, in an effort to boost profits through cost-cutting by grabbing the healthiest among second-tier counterparts.

UBI has championed the offer, saying it aims to bring out competitors who can play an active role in long-awaited banking consolidation in Italy.

The withdrawal reached 26.4% of UBI’s capital, but is expected to easily reach 60% before the offer ends on July 28, two sources close to the offer told Reuters.

The minimum take for bid validity is 50% plus one share.

An acceptance of 66.7% will guarantee Intesa controls the extraordinary shareholder resolution, reducing the sale of 532 bank branches, mostly at UBI, which Intesa has done on antitrust grounds.

To attract retail customers and small business owners who are roughly half of UBI’s investor base, Intesa has invested in a full-page newspaper ad and TV ad to market the profits from its offer.

UBI, in turn, has advertised the board’s refusal to bid with a full-page ad that says “Trust cannot be bought.”

The Codacons consumer association said on Thursday it had asked Consob market regulators and prosecutors in Milan and Bergamo to ensure that UBI clients received accurate information about Intesa’s offer from their local branch.

Reporting by Valentina Za and Andrea Mandala in Milan; Editing by Matthew Lewis


image source

The German Degussa Bank is being prepared for sales | Instant News

FRANKFURT, July 23 (Reuters) – German retail company and lender Degussa Bank has been put up for sale, said people close to the issue, when their owners faced large payments to other lenders they had after their involvement in fraudulent trade schemes.

Sellside PwC’s advisers plan to send an information package about Degussa Bank to prospective buyers next month, with the aim that the deal will be closed before the end of the year, they said.

Degussa Bank can be worth around 400 million euros ($ 463 million), one of the people said, adding that the core banking activities could be worth around 200 million or roughly the book value.

Other activities such as bank real estate and insurance brokerage businesses can be worth around the same amount, the person said.

Private equity companies, banks, asset managers and insurance brokers are expected to show interest in the bank, said the men, some of whom estimate total valuations of close to 200 million euros.

Degussa Bank is majority owned by Christian Olearius and Max Warburg, who bought it from the Dutch lender ING in 2006 and who also owns the MM Warburg bank based in Hamburg.

The owners of Degussa Bank and PwC declined to comment.

German judges in March ordered MM Warburg to pay 176 million euros for his involvement in the trial of the biggest post-German fraud fraud involving multi-billion euro trade to get false tax returns. The bank appealed the decision.

Olearius and Warburg have said in the past that they would financially support MM Warburg if the bank had to make payments related to its participation in the so-called cum-ex transaction.

Degussa Bank, which was originally part of the Degussa precious metals group, has outlets in the locations of many German companies, which make themselves work banks. Separately, he owns a residential property unit, Industria Wohnen, which among others sells closed property investment funds, and also has an insurance broker Prinas Montan.

In 2019, Degussa Bank reported a profit before tax of 26 million euros. ($ 1 = 0.8632 euros) (Reporting by Arno Schuetze; Editing by Susan Fenton)


image source