Connect with us

Stock Markets

Monte dei Paschi shareholders approve bad loan clean-up By Reuters

Published

on


© Reuters.

MILAN (Reuters) – Shareholders in Monte dei Paschi di Siena (MI:) approved on Sunday a long-awaited bad loan clean-up plan aimed at easing the sale of the state-owned bank to a healthier rival.

Italy has worked for two years on the plan, which gained final approval from the European Central Bank in September and must be completed by Dec. 1.

Rome bailed out Monte dei Paschi in 2017, acquiring a 68% stake for 5.4 billion euros ($6.3 billion). To meet conditions agreed at the time with European Union competition authorities, it must cut that stake before the bank approves 2021 earnings.

The ‘Hydra’ scheme approved on Sunday at an extraordinary shareholders’ meeting will lower Monte dei Paschi’s impaired loans to 4.3% of total lending, below UniCredit’s (MI:) 4.8%, currently the best level among larger commercial banks.

The move was designed to facilitate a merger, but the Treasury is struggling to find buyers for the loss-making bank, people familiar with the matter have said.

Under the ‘Hydra’ scheme Monte dei Paschi will transfer 8.1 billion euros in impaired loans to state-owned bad loan manager AMCO, together with other assets and liabilities including 1.1 billion euros in capital.

The deal, which includes a 3.2 billion euro bridge loan by banks UBS and JPMorgan (NYSE:), allowed Monte dei Paschi to shed the loans without incurring losses.

However, the ECB has demanded the bank replenishes its capital buffers, a condition the Treasury had hoped to fulfil by finding a buyer by the end of the year.

Clinching such a deal, however, will require more time as incentives to lure potential buyers will have to be negotiated, sources have said.

The ruling 5-Star Movement has been calling for the state to hold onto MPS and Prime Minister Giuseppe Conte is yet to sign a decree needed to complete the bad loan spin-off.

($1 = 0.8537 euros)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Stock Markets

Australia stocks lower at close of trade; S&P/ASX 200 down 0.11% By Investing.com

Published

on

By


© Reuters. Australia stocks lower at close of trade; S&P/ASX 200 down 0.11%

Investing.com – Australia stocks were lower after the close on Friday, as losses in the , and sectors led shares lower.

At the close in Sydney, the fell 0.11%.

The best performers of the session on the were Bluescope Steel Ltd (ASX:), which rose 10.86% or 1.560 points to trade at 15.920 at the close. Meanwhile, Cooper Energy Ltd (ASX:) added 4.35% or 0.015 points to end at 0.360 and Santos Ltd (ASX:) was up 3.94% or 0.200 points to 5.280 in late trade.

The worst performers of the session were Iluka Resources Ltd (ASX:), which fell 48.28% or 4.780 points to trade at 5.120 at the close. Regis Resources Ltd (ASX:) declined 4.32% or 0.210 points to end at 4.650 and United Malt Group Ltd (ASX:) was down 3.49% or 0.15 points to 4.15.

Rising stocks outnumbered declining ones on the Sydney Stock Exchange by 648 to 640 and 340 ended unchanged.

Shares in Iluka Resources Ltd (ASX:) fell to 3-years lows; losing 48.28% or 4.780 to 5.120.

The , which measures the implied volatility of S&P/ASX 200 options, was down 1.95% to 19.015.

Gold Futures for December delivery was up 0.11% or 2.10 to $1906.70 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in December fell 0.74% or 0.30 to hit $40.34 a barrel, while the December Brent oil contract fell 0.64% or 0.27 to trade at $42.19 a barrel.

AUD/USD was down 0.08% to 0.7109, while AUD/JPY fell 0.20% to 74.45.

The US Dollar Index Futures was up 0.11% at 93.067.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

Continue Reading

Stock Markets

Asian Stocks Up, After “Slightly More Civilized” Trump-Biden Debate By Investing.com

Published

on

By


© Reuters.

By Gina Lee

Investing.com – Asia Pacific stocks were mostly up on Friday morning, with investors digesting the final presidential debate between President Donald Trump and Democratic candidate Joe Biden ahead of the Nov. 3 presidential election.

“It was a slightly more civilized debate this time around, but Trump failed to make up for lost ground from the first debate. Biden came through better than Trump in this debate and this should help to cement his lead over Trump and may just help him to cross the final line with a win,” OCBC Wealth Management senior strategist Vasu Menon told Reuters.

Japan’s was up 0.43% by 11:10 PM ET (3:10 AM GMT) and South Korea’s gained 0.50%.

In Australia, the inched down 0.10% and Hong Kong’s rose 0.60%.

China’s edged up 0.20%, while the inched down 0.04%.

Some investors warned of market volatility ahead as markets in the region opened.

“There will be a positive bias to the opening tone in Asian trade,” CommSec market analyst Tom Piotrowski told Reuters.

“But regional investors won’t necessarily hang their hats on that outcome, the markets can move around quite quickly,” he added.

Other developments in Washington on investors’ radar is progress on the latest stimulus measures. Continuous, staunch Republican opposition to the measures’ price tag makes the likelihood that Congress will pass them before the election slim. However, U.S. House of Representatives Speaker Nancy Pelosi continued to be optimistic that a deal can be reached soon.

Pelosi and Treasury Secretary Steven Mnuchin are “just about there” vis-a-vis a deal and are currently resolving how to allocate money for testing and tracing to safely reopen schools and the economy, a key part of the measures.

The continuing uncertainty has a big move in the bond market over expectations that a deal will materialize soon.

“The big move in the bond market has been going on for the past few days and it’s mostly because the market is expecting that one way or another there will be a stimulus package, if not before the election then after the election” Yardeni Research president and chief investment strategist Ed Yardeni told Bloomberg.

There are over 41.5 million COVID-19 cases globally as of Oct. 23, according to Johns Hopkins University data. In Europe, which is fighting a second wave, Germany recorded a record number of cases and Spanish health minister Salvador Illa warned that the spread of the virus is out of control in certain parts of his country.

Stocks received a boost, however, from the news of the first approved COVID-19 treatment, after Gilead Sciences (NASDAQ:) received FDA approval on Thursday for its antiviral therapy Veklury (remdesivir) to treat the virus. The approval is for the use of remdesivir in adult and pediatric patients 12 years of age and older weighing at least 40 kilograms (around 88 pounds), the FDA said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

Continue Reading

Stock Markets

Chinese low-cost carrier Spring soars amid COVID downturn By Reuters

Published

on

By


© Reuters. FILE PHOTO: File picture of Spring Airlines’ Airbus A320 aircraft seen at Hongqiao airport in Shanghai

By Stella Qiu and Jamie Freed

BEIJING (Reuters) – Chinese budget carrier Spring Airlines is leveraging its low-cost position to attract customers with cheap fares as the country’s domestic aviation market recovers, pursuing an aggressive expansion strategy that could soon turn profitable.

Domestic capacity at Shanghai-based Spring rose over 50% in September compared with a year earlier, while passenger traffic was up 47% and the airline’s load factor, or percentage of seats filled, neared 90% as it redirected planes from closed international markets. Spring’s market share has doubled from 2% a year ago to 4%, according to broker Jefferies (NYSE:).

The private airline’s success in the Chinese market, traditionally dominated by full-service state-owned carriers, could herald a wider global trend.

Investors expect low-cost, domestic-focused carriers will be the first to recover from the pandemic as leisure travellers focus on value and corporate travel takes longer to recover.

Japan Airlines Co Ltd (T:) has said it plans to bolster its low-cost operations, including its Japanese joint venture with Spring, while sources said ANA Holdings Inc (T:) is weighing whether to use budget carrier Peach for more flights.

“We do see low-cost carriers (LCCs) rebounding the fastest out of all airlines across most regions, not just China,” BOCOM International analyst Luya You said. “The reasons are that LCCs can offer lower prices due to lower costs as well as fill their planes more efficiently than full-service carriers.”

Low-cost carriers held just a 10% market share in the domestic Chinese market, and 17% in Japan in 2018, compared with a majority share in South Korea, India, Malaysia and Vietnam, according to CAPA Centre for Aviation data.

During the COVID-related downturn, Chinese budget operators like Spring and Air China (OTC:) Ltd (SS:) subsidiary Shenzhen Airlines have been expanding relative to rivals.

Spring’s shares have rebounded to pre-COVID levels, compared with declines of up to 25% at the state-owned big three airlines, as investors bet on China’s only listed budget carrier.

“Full-service carriers will mimic the low-cost carrier model over the next few years, which could pressure established low-cost carriers like Spring over time,” BOCOM’s You said. “But right now their clear advantage is still solid.”

SPRING IN ITS STEP

Spring charges customers for extras like priority check-in, meals and using airport lounges, allowing it to offer fares as much as 30% below rivals on some routes while still taking aim at price-conscious business travellers.

“We can see Spring’s offerings for a lot of their domestic routes are even lower than fares on high-speed railway trains,” Chinese aviation expert Li Xiaojin said. “Flying with them is faster and cheaper, which helped bring in a lot of customers.”

Since May, Spring has added more than 60 domestic routes, and will add another 20 in the winter/spring flight season, saving on costs by having a single-type fleet of 103 Airbus SE (PA:) A320 family narrowbodies.

The aggressive expansion has helped Spring outperform its peers, with fares on some domestic routes almost reaching last year’s levels, Spring Airlines Chairman Wang Yu told Reuters.

Chinese brokerage CICC expects Spring to swing to a profit of 150 million yuan ($22.51 million) in the third quarter, barring an one-off capital injection into its Japanese joint venture.

Spring, which mostly focuses on Asian markets, is also well-positioned to recover in a post-COVID global aviation world, given travel bubbles between nations are likely before a full reopening of international travel.

“Compared with Europe and the United States, Asia-Pacific countries have largely managed to keep COVID under control, and are gradually easing travel restrictions. This is a good trend,” Wang said.

“Possibly, the Asia-Pacific region will recover first and we’ll first restore capacity supply to these target markets and resume flights as soon as possible.”

Spring received its first A321neo in September as part of plans to introduce seven planes in the second half of the year, Wang said, adding that the company had ruled out the purchase of widebodies.

In contrast, the state-owned carriers are pushing back deliveries.





Source link

Continue Reading

Trending

Copyright © 2017 Zox News Theme.