Latest news with #SociétéGénérale
Morocco World
2 days ago
- Business
- Morocco World
After Morocco, Société Générale Exits Mauritania in African Retreat
Marrakech – A consortium of investors, including Enko Capital and Oronte, announced Monday the finalization of their acquisition of Société Générale's Mauritanian retail banking subsidiary. This marks the French bank's latest withdrawal from the African continent, following its exit from Morocco last year. The consortium says its aim is to strengthen the bank's position as a central player in financing the Mauritanian economy. They will focus particularly on strategic sectors including mining, gas, agriculture, and SMEs. The financial details of the transaction were not disclosed. Société Générale had been the reference shareholder of Société Générale Mauritanie (SGM) since 2007. This subsidiary operates 11 branches serving nearly 40,000 customers. It generates €35 million in net banking income and €9.9 million in net profit, according to a spokesperson for the acquirers. The French banking group has been actively divesting its African subsidiaries over the past two years. This strategy aligns with the roadmap set by CEO Slawomir Krupa, who has led the group since May 2023. Just last month, Société Générale announced an agreement to sell its Cameroonian subsidiary to the state. The bank will transfer its entire 58.08% stake, which would give the Cameroonian government 83.68% ownership of the entity. This transaction is expected to conclude by year-end and would positively impact the group's CET1 ratio by approximately 6 basis points. The Cameroonian subsidiary recorded a net banking income of €146 million in 2024. It employs around 700 staff across nearly 50 branches throughout the country. Since 2023, Société Générale has sold operations in Congo, Chad, Mozambique, Morocco, and Madagascar. The bank also has ongoing sales processes for subsidiaries in Benin, Burkina Faso, Guinea, Equatorial Guinea, and Togo. After completing these divestments, Société Générale will maintain a presence in only five African countries: Algeria, Tunisia, Ivory Coast, Senegal, and Ghana. The bank's withdrawal from Africa follows similar moves by other French financial institutions, including BNP Paribas, Crédit Agricole, and BPCE. Several factors explain this trend. Primarily, these banks seek to improve profitability and financial indicators by focusing on their European operations. Read also: Société Générale Rebranding: Saham Bank Unveils Its Strategy Additionally, France's declining political and economic influence in Africa has reduced business volumes for French banks. The rise of African banking champions from Morocco, South Africa, and Nigeria, coupled with growing influence from China, Russia, India, and Turkey, has further diminished opportunities for European financial institutions. For Société Générale specifically, the integration of retail and commercial banking activities in African countries has proven challenging. The banking structures, competitive environments, and product strategies differ significantly from those in France or Europe, limiting potential synergies. The French group's exit was particularly notable in Morocco. Last December, the Saham Group finalized its acquisition of Société Générale's Moroccan subsidiaries, a €745 million deal that included Société Générale Marocaine des Banques (SGMB) and La Marocaine Vie. Just last month, SGMB officially rebranded as Saham Bank, six months after its acquisition. The bank's supervisory board is now chaired by Moulay Hafid Elalamy, founder of the Saham Group, with Vice-Chairman Moulay M'Hamed Elalamy. Ahmed El Yacoubi leads the executive board, which has maintained its composition under the new ownership. Tags: Mauritania newsSociété Générale
Business Insider
04-08-2025
- Business
- Business Insider
Fed rate cuts could spark a new stock bubble, SocGen says. Here's the level to watch in the S&P 500.
The market sees about an 85% chance that the Federal Reserve delivers a rate cut in September — but doing so could put the stock market on track to enter bubble territory in the coming months. That's according to strategists at Société Générale, who said they saw the possibility that the S&P 500 becomes overheated sometime in the next year. The level of the S&P 500 they're warning investors to look out for is 7,500. That implies a 19% gain for the benchmark index, and would signal that the speculative mania has reached bubble proportions. Here's what they're eyeing. 1) Fed rate cuts. Investors are widely expecting the Fed to cut interest rates, with the odds of a September rate cut spiking after the July jobs report was unexpectedly weak last Friday. According to the CME FedWatch tool, the market-priced probability of a 25-basis-point rate cut next month has jumped to 87%, up from 63% a week ago. "Gradual rate cutting could add to the positive effect of cyclical data, while aggressive Fed rate cuts to the terminal rate could drive a market valuation bubble," strategists wrote. 2) Bullish runway. Fed rate cuts are also adding to an already-positive environment for stocks, strategists said, pointing to factors like higher growth, healthy debt-taking in the private sector, and corporate activities improving from lows earlier in the business cycle. "Strong returns from the S&P 500 over the past three months have borne out our US outlook, crisis of confidence is short-term," strategists wrote. The S&P 500 reaching 7,500 next year would imply valuations similar to levels seen during the peak of the dot-com bubble, according to SocGen's analysis. The bank's base case is for the S&P 500 to land around 6,900 by the end of next year, implying a 9% gain from current levels. Chatter about a potential stock market bubble has been percolating around Wall Street in recent months, given the S&P 500's record-breaking rally. Stocks have quickly rebounded since bottoming on April 8 following Trump's tariff announcements, with the S&P 500 up 28% since then.
Yahoo
04-08-2025
- Business
- Yahoo
WENDEL: Investor conference calls ahead of the launch of a potential €500 million 8-year bond issue
Investor conference calls ahead of the launch of a potential €500 million 8-year bond issue Subject to the successful completion of the bond issue, subsequent make-whole redemption of the bonds maturing in February 2027 with outstanding principal of €500 million Wendel announces that it will hold a series of conference calls with investors today in connection with the potential launch of a 8-year bond issue for a nominal amount of €500 million (the '2033 Bond Issue') in the coming days, subject to market conditions. Wendel intends, subject to the successful settlement and delivery of the 2033 Bond Issue, to exercise its early make-whole redemption option on all of the bond bearing an interest rate of 2.50% maturing in February 2027, with an outstanding nominal amount of €500 million (ISIN FR0012516417), at a price determined in accordance with the provisions of the terms and conditions of these bond. The 2027 bond is traded, and the new 2033 bond would be traded, on the regulated market of Euronext Paris. These transactions would enable Wendel to extend the average maturity of its bond debt. The result and final terms of the 2033 Bond Issue would be announced upon closing of the transaction. The 2033 Bond Issue would be conducted by Crédit Agricole Corporate and Investment Bank, Crédit Industriel et Commercial S.A., Mediobanca - Banca di Credito Finanziario S.p.A., Natixis and Société Générale as press release does not constitute an offer, or an invitation to apply for, or an offer or invitation to purchase or subscribe for any securities either in the United States or in any other jurisdiction which may be subject to restrictions. These securities may not be offered or sold in the United States of America unless they are registered or exempt from registration under the US Securities Act of 1933, as amended. This press release is an advertisement and not a prospectus within the meaning of Regulation (EU) 2017/1129, as amended (the 'Prospectus Regulation'). A prospectus will be prepared and made available to the public, in compliance with the Prospectus Regulation, for the purpose of admitting the 2033 bonds to trading on the regulated market of Euronext Paris. This press release does not constitute an offer of securities in France or in any other country. The 2033 bonds are the subject of a private placement in France to qualified investors as defined in Article 2(e) of the Prospectus Regulation and in accordance with Article L.411-2 of the Monetary and Financial Code, and outside France. As of the date of this press release, no prospectus related to the placement of the 2033 bonds has been approved by a competent authority of any European Economic Area Member State. Wendel will undertake no action as part of this placement with a view to making an offer to the public (other than to qualified investors) in France or abroad. In the United Kingdom, this press release may be sent to qualified investors as defined in Article 2(e) of the Prospectus Regulation as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 only under circumstances wherein section 21(1) of the Financial Services and Markets Act 2000 does not apply. The dissemination of this press release in any country where such dissemination could constitute a violation of applicable legislation is prohibited. Attachment 2025_CP_Wendel_ENG_Bond issue launch - 4 August 2025
The Sun
01-08-2025
- Business
- The Sun
Global shares drop after Trump tariff shock hits markets
LONDON/SYDNEY: Global shares tumbled on Friday after the U.S. slapped dozens of trading partners with steep tariffs, while investors anxiously awaited U.S. jobs data that could make or break the case for a Fed rate cut next month. The Stoxx 600 fell around 1% in the first hour of trading. It was 1.7% lower on the week, on track for its biggest weekly drop since early April. Both Nasdaq futures and S&P 500 futures were down around 1%. Late on Thursday, President Donald Trump signed an executive order imposing tariffs ranging from 10% to 41% on U.S. imports from foreign countries. Rates were set at 25% for India's U.S.-bound exports, 20% for Taiwan's, 19% for Thailand's and 15% for South Korea's. He also increased duties on Canadian goods to 35% from 25% for all products not covered by the U.S.-Mexico-Canada trade agreement, but gave Mexico a 90-day reprieve from higher tariffs to negotiate a broader trade deal. 'The August 1 announcement on reciprocal tariffs are somewhat worse than expected,' said Wei Yao, research head and chief economist in Asia at Société Générale. Market reaction was not as volatile as April's global asset declines, she added. 'We are all getting much more used to the idea of 15-20% tariffs being manageable and acceptable, thanks to the worse threats earlier.' MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.5%, bringing the total loss this week to roughly 2.7%. Japan's Nikkei closed 0.6% lower, Chinese blue chips ended 0.5% down and Hong Kong's Hang Seng index lost more than 1%. Overnight, Wall Street failed to hold onto an earlier rally. Data showed inflation picked up in June, with new tariffs pushing prices higher and stoking expectations that price pressures could intensify, while weekly jobless claims signalled the labour market remained on a stable footing. Fed funds futures imply just a 39% chance of a rate cut in September, compared with 65% before the Federal Reserve held rates steady on Wednesday, according to the CME's FedWatch. Much now will depend on the U.S. jobs data due later in the day and any upside surprise could price out the chance for a cut next month. Forecasts are centred on a rise of 110,000 in July, while the jobless rate likely ticked up to 4.2% from 4.1%. The greenback found support from fading prospects of imminent U.S. rate cuts, with the dollar index up 1.5% this week against its peers to 100, in the biggest weekly rise since late 2022. The tariff news appeared to have little impact on the Canadian dollar, which was last up 0.15%. The yen was the biggest loser overnight, but recovered 0.2% to 170.5 yen. The Bank of Japan held interest rates steady on Thursday and revised up its near-term inflation expectations, but Governor Kazuo Ueda sounded a little dovish in the press conference. Two-year Treasury yields fell one basis point to 3.9428%, while benchmark 10-year yields ticked up 2 basis points to 4.382%, after slipping 2 bps overnight. In commodity markets, oil prices continued to fall after a 1% overnight plunge. Brent fell 24 cents to $71.46 per barrel, while U.S. crude fell 27 cents to $68.99 per barrel. Spot gold prices were up 0.1% to $3,294 an ounce. - Reuters
Reuters
01-08-2025
- Business
- Reuters
Breakingviews - Markets' Trump truce is on ever-shakier ground
LONDON, Aug 1 (Reuters Breakingviews) - If stock markets are to be believed, Donald Trump has pulled off a masterstroke. The U.S. president has ratcheted up tariffs on trading partners while avoiding tanking either the economy or asset prices. Yet investors' muted response to Thursday's latest levies, opens new tab may be misleading. The Trump-market truce will soon face steeper tests. Equities have come a long way since April 2, when the president's so-called reciprocal tariffs sent the S&P 500 Index (.SPX), opens new tab down about 10% in a week. Stocks quickly bounced back and then set records, boosted by the idea that Trump would always chicken out, known as the TACO trade. That theory is crumbling. Thursday's assault raised the average U.S. levy on imports to about 20% – not far off the April 2 level of 22%, Société Générale economists reckon. Canada, Switzerland and others saw their scheduled duties spike. Yet S&P 500 futures fell just 1% before U.S. markets opened, which would still leave the benchmark about a quarter above its April nadir. There are some good reasons for the nonchalance. Some levies, like India's 25% rate, may yet come down. The new package may just be a last-minute ploy to maximise pressure on trading partners before striking deals. And the most damaging scenario – a global trade war – looks unlikely given key trading partners like Europe and Japan have agreed deals without retaliation. Lastly, even if tariffs are now a reality, looser fiscal policy in the U.S. and Germany means there is more money sloshing around two of the world's biggest economies, helping short-term growth. Yet the full brunt of the tariff war is still only starting to emerge, and the final implementation of the global levies is due next week. Core U.S. goods inflation was a reassuring 2.4% in July, yet price rises may have been kept lower by importers bringing in more goods ahead of the duties. Analysts at Pictet reckon the impact will become more apparent in August and September. They note that surveys point to between 60% and 80% of U.S. firms planning price increases over the next three months. That may squeeze consumer confidence, hurting growth. Higher U.S. inflation may also make it harder for the Federal Reserve to cut. That will fuel tensions with Trump, who has a $1.9-trillion deficit to fund this year and wants lower rates. The more the administration attacks Chair Jerome Powell, the more bond markets will fret over wayward fiscal policy and higher inflation, driving up long-term borrowing costs and hitting asset prices. Nor can the rest of the world rest easy. As other countries face more obstacles selling the $3.3 trillion of goods shipped into the United States annually, they will need to find alternative markets, driving down prices elsewhere and hurting rival exporters. Governments like Britain and France can't afford to offset the hit, given stretched budgets. In other words, the full pain of Trump's global tariff onslaught may still be coming. Follow @Unmack1, opens new tab on X
