Latest news with #financialsector
Bloomberg
a day ago
- Business
- Bloomberg
Saudi Arabia Seeks New IPOs to Attract Foreign Investors
Saudi Arabia aims to increase potential public offerings as it seeks to diversify its economy away from oil and develop its financial sector. 'We are doing almost 30% from last year,' said Mohammed Al-Rumaih, chief executive officer of the Saudi stock exchange in an interview with Bloomberg Television, referring to the increase in numbers.
Bloomberg
3 days ago
- Business
- Bloomberg
Sheinbaum Pitches Growth Plan to Bankers Amid Lending Pledge
In her first in-person address to Mexico's financial elite as president, Claudia Sheinbaum pointed to the country's economic resilience and signed a pledge for more lending to small and medium companies. 'We should all be satisfied with our economy's solid position and at the same time feel optimistic, because, despite the international scenario we have faced in recent months, the economy and financial sector have reacted in an extraordinary way,' Sheinbaum said at the country's most important financial event of the year, the annual banking convention.
Zawya
4 days ago
- Business
- Zawya
Rome's seat at Italian bank M&A table keeps investors guessing
MILAN/LONDON - Rome's determination to have a say in the reshaping of Italy's financial sector has made things increasingly unpredictable for investors who have waited years for consolidation of the country's fragmented banking landscape. UniCredit and its CEO Andrea Orcel are locked in a standoff with the Italian government over the bank's bid for smaller rival Banco BPM. Italy's second-largest lender said on Friday it would challenge in court the conditions the government has imposed for its bid to proceed, after securing a 30-day suspension of the offer while it disputes Rome's demands. Italy has special powers it can use to protect national security interests but these have become a major hurdle to some of the M&A efforts in the banking sector. "Things have turned out completely differently than expected," said David Benamou, chief investment officer at Axiom Alternative Investments, whose European bank fund holds positions in some Italian lenders. "There are many moving parts and when politics get involved it's much more difficult to anticipate the drivers." Andreas Kokkinis, an associate professor at the University of Birmingham's law school, who has published work on bank corporate governance, described the conditions Rome has placed on UniCredit's bid for BPM as "unusual". "This is clearly motivated by 'national interest' type of concerns and not merely by financial stability or customer protection concerns," he said, adding that this type of behaviour can harm shareholders as well as economies. Italian Economy Minister Giancarlo Giorgetti has defended the government's right to vet banking deals, saying EU states are in charge of national security. The ministry did not immediately reply to a request for comment. The government was one of the instigators of the dealmaking flurry, when in November it sold a stake in Monte dei Paschi di Siena. That has since led to seven banking takeover offers in just six months. POLITICS VS MONEY Politicians' desire to influence the make-up of their banking industries - motivated partly by job protection - is playing out elsewhere in Europe too, slowing the consolidation that bank executives and supervisors say is needed. Germany opposes UniCredit's ambition to acquire Commerzbank , and the Spanish government is unhappy about BBVA's bid for domestic peer Sabadell. Investors see Italy as a testing ground for the merger activity that would help European banks close a profitability and valuation gap with U.S. rivals. M&A speculation is helping to keep European bank stocks near 17-year highs, though falling interest rates pressure earnings. Shareholders interviewed by Reuters are convinced there is no alternative to reducing the number of players. "Our playbook here is the United States," James Davidson, co-manager of the Artemis Global Income Fund, told Reuters. "The number of U.S. banks has halved in the past 22 years; we expect it to halve again. The biggest U.S. banks have grown market share quickest – leveraging technology & scale." Italy's conservative government has its own view. It has repeatedly said it would use the re-privatisation of MPS, which it rescued in 2017, to create a bigger competitor to market leaders Intesa Sanpaolo and UniCredit. "It surely looks messy, but the dynamics are quite clear: politics on one side and people trying to make money on the other. A compromise needs to be found," Benamou said. OPPORTUNITIES AND RISKS To promote its agenda, Rome in November sold chunks of MPS to the Del Vecchio and Caltagirone families, who are also major investors in insurer Generali and in its biggest shareholder, merchant bank Mediobanca. In response, UniCredit's Orcel has sought to bolster the bank's leverage, building a 6.7% Generali stake and throwing his weight behind Caltagirone at a key Generali shareholder vote. Orcel needed allies after UniCredit's swoop on BPM deprived Italy's Treasury of its favoured merger partner for MPS, which has since bid for larger rival Mediobanca. To fend off the MPS takeover, Mediobanca moved on Banca Generali, a private bank owned by Generali. It would finance the deal by handing over its stake in the insurer. The web of dealmaking is complicated, but for investors the M&A chaos is better than the years of stasis that preceded it. "Now banking consolidation has struck," said Andrea Scauri of Lemanik Asset Management. "I see it positively: it carries opportunities. Also risks, if you find yourself on the wrong side of the trade, but that's for investors to navigate." Some, however, worry that the rewards from having fewer banks risk being lost. "Consolidation aims to strengthen Italy's banks but governance weaknesses rooted in ownership structures and possible political agendas threaten to undermine its benefits," said Guy de Blonay, fund manager at London-based Jupiter Asset Management.
Yahoo
23-05-2025
- Business
- Yahoo
Industry expert issues urgent warning about economic impact of looming disaster: 'Threatens the very foundation of the financial sector'
A top insurance executive is sounding the alarm on the growing risks of increasing global temperatures — not just to our ecosystems but also to our economy. As extreme weather intensifies and the costs stack up, the foundations of our systems could start to crack under pressure. Günther Thallinger, board member at insurance and financial services company Allianz SE, said the premiums needed to cover the risks of increasing temperatures and related ripple effects are too high for customers to afford. "Entire regions are becoming uninsurable," Thallinger wrote on LinkedIn, per The New York Times, calling this a "systemic risk that threatens the very foundation of the financial sector." "Capitalism as we know it ceases to be viable," Thallinger added. The climate-induced economic crisis refers to the financial fallout from worsening climate disasters such as wildfires, floods, and heat waves. These events can cause significant damage to homes, infrastructure, and farmland, which in turn increases insurance prices, drives down property values, and disrupts communities. According to the Times, the impacts of global warming could exceed $38 trillion per year by 2049, per research at the Potsdam Institute for Climate Impact Research. In the U.S. alone, climate risks may wipe out $1.5 trillion in property value by 2055 due to flooding and other growing hazards, according to First Street, as cited by the Times. Without homeowners insurance, banks may not issue mortgages. That can mean no buying, selling, or refinancing homes, which would drag down neighborhood wealth and cut funding for schools, hospitals, and emergency services. Per the Times, ETH Zurich researchers warned that a global temperature rise of 3 degrees Celsius (5.4 degrees Fahrenheit) — a fairly likely outcome without swift action — could shrink global economic output by 10%. Do you think America has a plastic waste problem? Definitely Only in some areas Not really I'm not sure Click your choice to see results and speak your mind. In places such as California and Florida, some homeowners are already being priced out of insurance. A warming climate isn't just hitting housing; it's also making food, electricity, and water more expensive, straining budgets across the country. Some communities are pushing back. Cities are planting trees and installing cool roofs to fight extreme heat. Families are investing in weatherized homes to cut energy costs. By upgrading insulation, sealing air leaks, and installing efficient heating systems, homeowners can reduce their energy bills and take advantage of rebates. Addressing climate risks will take effort and investment, but the cost of doing nothing is far higher. Cleaner energy, stronger infrastructure, and smarter building practices can help communities stay safe and financially secure. From installing solar panels to weatherproofing homes, people are already embracing solutions that reduce pollution and save money. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-05-2025
- Business
- Yahoo
Analysis-Rome's seat at Italian bank M&A table keeps investors guessing
By Valentina Za and Tommy Reggiori Wilkes MILAN/LONDON (Reuters) -Rome's determination to have a say in the reshaping of Italy's financial sector has made things increasingly unpredictable for investors who have waited years for consolidation of the country's fragmented banking landscape. UniCredit and its CEO Andrea Orcel are locked in a standoff with the Italian government over the bank's bid for smaller rival Banco BPM. Italy's second-largest lender said on Friday it would challenge in court the conditions the government has imposed for its bid to proceed, after securing a 30-day suspension of the offer while it disputes Rome's demands. Italy has special powers it can use to protect national security interests but these have become a major hurdle to some of the M&A efforts in the banking sector. "Things have turned out completely differently than expected," said David Benamou, chief investment officer at Axiom Alternative Investments, whose European bank fund holds positions in some Italian lenders. "There are many moving parts and when politics get involved it's much more difficult to anticipate the drivers." Andreas Kokkinis, an associate professor at the University of Birmingham's law school, who has published work on bank corporate governance, described the conditions Rome has placed on UniCredit's bid for BPM as "unusual". "This is clearly motivated by 'national interest' type of concerns and not merely by financial stability or customer protection concerns," he said, adding that this type of behaviour can harm shareholders as well as economies. Italian Economy Minister Giancarlo Giorgetti has defended the government's right to vet banking deals, saying EU states are in charge of national security. The ministry did not immediately reply to a request for comment. The government was one of the instigators of the dealmaking flurry, when in November it sold a stake in Monte dei Paschi di Siena. That has since led to seven banking takeover offers in just six months. POLITICS VS MONEY Politicians' desire to influence the make-up of their banking industries - motivated partly by job protection - is playing out elsewhere in Europe too, slowing the consolidation that bank executives and supervisors say is needed. Germany opposes UniCredit's ambition to acquire Commerzbank, and the Spanish government is unhappy about BBVA's bid for domestic peer Sabadell. Investors see Italy as a testing ground for the merger activity that would help European banks close a profitability and valuation gap with U.S. rivals. M&A speculation is helping to keep European bank stocks near 17-year highs, though falling interest rates pressure earnings. Shareholders interviewed by Reuters are convinced there is no alternative to reducing the number of players. "Our playbook here is the United States," James Davidson, co-manager of the Artemis Global Income Fund, told Reuters. "The number of U.S. banks has halved in the past 22 years; we expect it to halve again. The biggest U.S. banks have grown market share quickest – leveraging technology & scale." Italy's conservative government has its own view. It has repeatedly said it would use the re-privatisation of MPS, which it rescued in 2017, to create a bigger competitor to market leaders Intesa Sanpaolo and UniCredit. "It surely looks messy, but the dynamics are quite clear: politics on one side and people trying to make money on the other. A compromise needs to be found," Benamou said. OPPORTUNITIES AND RISKS To promote its agenda, Rome in November sold chunks of MPS to the Del Vecchio and Caltagirone families, who are also major investors in insurer Generali and in its biggest shareholder, merchant bank Mediobanca. In response, UniCredit's Orcel has sought to bolster the bank's leverage, building a 6.7% Generali stake and throwing his weight behind Caltagirone at a key Generali shareholder vote. Orcel needed allies after UniCredit's swoop on BPM deprived Italy's Treasury of its favoured merger partner for MPS, which has since bid for larger rival Mediobanca. To fend off the MPS takeover, Mediobanca moved on Banca Generali, a private bank owned by Generali. It would finance the deal by handing over its stake in the insurer. The web of dealmaking is complicated, but for investors the M&A chaos is better than the years of stasis that preceded it. "Now banking consolidation has struck," said Andrea Scauri of Lemanik Asset Management. "I see it positively: it carries opportunities. Also risks, if you find yourself on the wrong side of the trade, but that's for investors to navigate." Some, however, worry that the rewards from having fewer banks risk being lost. "Consolidation aims to strengthen Italy's banks but governance weaknesses rooted in ownership structures and possible political agendas threaten to undermine its benefits," said Guy de Blonay, fund manager at London-based Jupiter Asset Management. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
