IFR 07 11 2020 PDF room

JULY 11 2020 ISSUE 2341 www.ifre.com It’s green, but not as we know it: BBVA raises €1bn from AT1 but investors remain sceptical SMIC listing surfs China wave: chipmaker raises Rmb45.3bn from 2020’s biggest IPO Between a rock and a hard place: US-China tensions hang over banks in Hong Kong PEOPLE & MARKETS EQUITIES BONDS LOANS Dedicated ESG credit derivatives make faltering start 02 Rocket rides MORTGAGEûRElû boom to US$3bnplus listing 04 After record debt binge, investors take stock of corporate America 08 Surge in riskweighted assets may curtail syndicated lending 10 IFR’s ESG Financing Briefing IFR’s ESG Financing Briefing is a subscription service offering daily news, data and analysis on green and ESG financing from across the Refinitiv Capital Markets Insight Team To subscribe or learn more, e-mail ifr.clientsupport@refinitiv.com Upfront Gathering storm I TSûHARDûTOûlNDûAûMOREûSTRIKINGûEXAMPLEûOFûCAPITALûMARKETSû MOVINGûOUTûOFûSTEPûWITHûFUNDAMENTALSûTHANûINû(ONGû+ONGû 4HEûCITYûISûCENTREûSTAGEûINûAûlNANCIALûSTAND OFFûBETWEENûTHEû WORLDSûTWOûBIGGESTûECONOMIES ûYETûITSûSTOCKûINDEXûHASûGAINEDû MOREûTHANûûSOûFARûTHISûMONTH 4HEû(ONGû+ONGûMARKETûHASûRALLIEDûSINCEû#HINAûENFORCEDûAû CONTROVERSIALûNATIONALûSECURITYûLAWûSHORTLYûBEFOREûMIDNIGHTû ONû*UNEû ûEVENûTHOUGHûTHEû53ûISûPREPARINGûSANCTIONSûTHATû COULDûCRIPPLEûTHEûCITYSûBANKINGûSYSTEM 4HEû53ûAIMSûTOûPUNISHûTHOSEûRESPONSIBLEûFORûERODINGûTHEû CITYSûAUTONOMYûFROMû#HINA ûANDûANûACTûTOûDOûJUSTûTHATûnûTHEû (ONGû+ONGû!UTONOMYû!CTûnûISûHEADINGûFORû0RESIDENTû4RUMPSû DESK )FûTHEû53ûAUTHORITIESûTAKEûAûMAXIMALISTûAPPROACHûTOûITSû APPLICATIONûINûTERMSûOFûINDIVIDUALSûSUBJECTûTOûSANCTIONSûANDû THEûPUNISHMENTSûLEVIEDûONûBANKSûTHATûFAILûTOûENFORCEûTHEM û THEûRAMIlCATIONSûFORûBANKSûAREûENORMOUS 3ANCTIONSûTHATûTHREATENû#HINASûNATIONALûSECURITYûAREû ILLEGALûUNDERûTHEûNEWû(ONGû+ONGûLEGISLATIONû(OWûTHATûWILLû BEûINTERPRETEDûISûNOTûYETûCLEAR ûBUTûITûISûNOûLONGERûFANCIFULûTOû SUGGESTûTHATûBANKSûMIGHTûHAVEûTOûCHOOSEûBETWEENûBEINGû BARREDûFROMûTHEû53ûDOLLARûSYSTEMûONûTHEûONEûHAND ûORû HAVINGûTHEIRûLICENCEûTOûOPERATEûINû(ONGû+ONGûREVOKEDûONû THEûOTHER 4HATûCHOICEûWILLûBEûAûMISERABLEûONEûFORûANYûBANKûWITHûAû (ONGû+ONGûBUSINESSûnûBUTûINûTHEûENDûNOTûAûDIFlCULTûONE ûGIVENû THATûTHEû53ûDOLLARûISûTHEûLIFEBLOODûOFûGLOBALûlNANCE "UTûWHATûABOUTû(3"#û7HICHûWAYûWOULDûITûJUMPûIFûITûWEREû FORCEDûTOûCHOOSEûBETWEENû(ONGû+ONGûWHEREûITûMAKESûMOREû THANûTWO THIRDSûOFûITSûPROlTS ûORûACCESSûTOû53ûDOLLARSûOFûWHICHû ITûISûONEûOFûTHEûWORLDSûLARGESTûCLEARERS  3TANDARDû#HARTERED vû3EWINGûTOLDûSTAFF 9$&3ûSAIDûINûTHEûCASESûOFû$ANSKEû%STONIA û which is embroiled in a money laundering SCANDAL ûANDû&"-% û$EUTSCHEûFAILEDûTOû properly monitor their correspondent and DOLLAR CLEARINGûBUSINESSES TRUMP’S FINANCES )NûAûBUSYûWEEKûFORû$EUTSCHEûINûTHEû53 ûTWOû days later the US Supreme Court ruled that $ONALDû4RUMPSûlNANCIALûRECORDSûCOULDûBEû TURNEDûOVERûTOûPROSECUTORSûINû.EWû9ORK 4RUMPûHASûFOUGHTûHARDûTOûKEEPûHISûTAXû RETURNSûANDûOTHERûELEMENTSûOFûHISûlNANCESû SECRET ûBUTûTHEû3UPREMEû#OURTûSAIDûTHEREûAREû LIMITSûTOûTHEûPOWERSûOFûTHEûPRESIDENT (OWEVER ûTHEûCOURTûPREVENTEDûnûATûLEASTûFORû NOWûnû(OUSEûOFû2EPRESENTATIVESûCOMMITTEESû FROMûGETTINGûlNANCIALûRECORDSûFROMû4RUMPSû LONG TERMûACCOUNTINGûlRMû-AZARSûANDûTWOû BANKSûnû$EUTSCHEûANDû#APITALû/NEû4HATû means Congress is unlikely to be able to ACCESSûTHEMûBEFOREûTHEû.OVEMBERûELECTION $EUTSCHEû"ANKûHASûlNANCEDûMANYûOFû 4RUMPSûBUSINESSûVENTURESûINûTHEûLASTûTWOû DECADES “Deutsche Bank has demonstrated full respect for the US legal process and remained neutral throughout these PROCEEDINGSû7EûWILLûOFûCOURSEûABIDEûBYûAû lNALûDECISIONûBYûTHEûCOURTS vûSAIDû$EUTSCHEû SPOKESMANû$ANIELû(UNTER Steve Slater Additional reporting by Jonathan Stempel at Reuters 13 “The bank needs a profound transformation ANDûAûNEWû#%/v OUTGOING COMMERZBANK CEO MARTIN ZIELKE, P17 Time to consolidate, ECB tells eurozone banks "UTûTHEû%#"ûGUIDANCEûCOULDûlXûTHATû)Nû 3PAIN ûBANKIAûCOULDûGETûAûBADWILLûBENElTûOFû €11bn if it bought SABADELL ûORûTHEREûCOULDû be a €9bn gain for BBVA or CAIXABANK if either BOUGHTû"ANKIA ûANALYSTSûATû"ARCLAYSû ESTIMATEDûFOLLOWINGûTHEû%#"SûGUIDANCE h7EûTHINKûTHESEûDRAFTûGUIDELINES ûALONGû with a more stable legal framework for labour and more clarity on the economic IMPACTûOFû#OVIDûAFTERûTHEûSUMMER ûCOULDû ACCELERATEû-!ûDISCUSSIONSûHEADINGûINTOûFALLû  vûSAIDû"ARCLAYSûANALYSTû&ERNANDOû'ILûDEû 3ANTIVANESûONû3PANISHûBANKS PALTRY RETURNS 7HILEûTHEûCORONAVIRUSûMAYûDELAYûCLARITYûAROUNDû -! ... 12 Oct 17 Nov 21 Dec 26 Jan 30 Mar 2020 Apr May 14 June 18 Source: Federal Reserve International Financing Review July 11 2020 For daily news stories visit www.ifre.com Shenzhen-listed electric... 30-year mortgage has declined from 3.74% entering the year to 3 .07% currently, according to Fed data International Financing Review July 11 2020 Rocket, already the largest originator of home mortgages... (rhs) — Main spread — Main ESG spread Source: JP Morgan International Financing Review July 11 2020 Mar 2020 Top news SMIC listing surfs China wave „ Equities Chipmaker doubles valuation target