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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
FINANCIALS
Bank consolidation - lots of news in the wake of BBVA going hostile for Sabadell so worth noting that there’s lots of noise around European bank M&A but little real action. Sabadell’s equity price is still 8% below the value of BBVA’s bid, so still some market scepticism there. SABSM spreads are 24bp tighter on the month (€IG banks: -18bp) and trade tighter than (better-rated) BKTSM (see senior non-preferred graphic).
- FT is carrying a story indicating Unicredit CEO Orcel welcoming French President Macron’s recent expression of support for consolidation. Macron reportedly sees dealmaking as important to creating a capital markets union and Orcel specifically wants larger banks to compete with “US and Asian rivals”. Unicredit did nearly buy BMPS to aborted the deal late in the process and is also linked with, amongst others, Commerzbank and Banco BPM (also trading tighter than might be imagined).
- BBVA – Sabadell currently looks like an example of the opposite attitude. Spanish Economy Trade and Enterprise Minister, Carlos Cuerpo, is reported as saying BBVA can own Sabadell but not merge with it (source: Onda Cera radio). He cites reduced competition as his reasoning.
- BBG is also reporting the BBVA has hired lobbyists in an attempt to overcome such political hurdles.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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