Our latest Investing Matters Podcast episode with QuotedData's Edward Marten has just been released. Listen here.

Less Ads, More Data, More Tools Register for FREE
Stefan Bernstein explains how the EU/Greenland critical raw materials partnership benefits GreenRoc
Stefan Bernstein explains how the EU/Greenland critical raw materials partnership benefits GreenRocView Video
Utilico Insights - Jacqueline Broers assesses why Vietnam could be the darling of Asia for investors
Utilico Insights - Jacqueline Broers assesses why Vietnam could be the darling of Asia for investorsView Video

Latest Share Chat

Pin to quick picksBP Share News (BP.)

Share Price Information for BP (BP.)

London Stock Exchange
Share Price is delayed by 15 minutes
Get Live Data
Share Price: 495.70
Bid: 496.00
Ask: 496.10
Change: 0.00 (0.00%)
Spread: 0.10 (0.02%)
Open: 0.00
High: 0.00
Low: 0.00
Prev. Close: 495.70
BP. Live PriceLast checked at -

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

UPDATE 1-Wall Street curtails corporate lending in Europe to put America first -sources

Fri, 24th Apr 2020 17:42

* Bank of America, others cut lending to Europe clients

* Goldman Sachs and JPMorgan more selective in lending

* European banks pressured to help national companies

* BNP Paribas wins market share across Europe
(Adds no comment from Citigroup)

By Arno Schuetze, Pamela Barbaglia and Maya Nikolaeva

FRANKFURT/LONDON/PARIS, April 24 (Reuters) - U.S. investment
banks are shrinking lending activity in Europe as the
coronavirus crisis forces them to retreat home, allowing BNP
Paribas and other European lenders to fill the funding gaps and
grab market share, seven sources told Reuters.

Facing unprecedented demand for loans, and under pressure to
support their local economy, the likes of Bank of America
and JPMorgan have taken a more cautious approach
on Europe, the sources said, speaking on condition of anonymity.

Goldman Sachs, Morgan Stanley and Citigroup
have also become more risk-averse in taking lending
decisions in Europe as they fret over a wave of potential loan
defaults, the sources added.

With U.S. banks focusing on their home turf, France's BNP
Paribas is using its robust balance sheet to gain
market share by increasing lending across the continent,
according to the sources and Refinitiv data.

Bank of America, JPMorgan, Goldman Sachs, Morgan Stanley,
Citigroup and BNP Paribas all declined to comment.

The U.S. banks remain active on selective deals, however,
with Goldman Sachs and Citigroup underwriting a 3.5 billion euro
credit facility for Fiat Chrysler in March.

They are also deploying different financing tools - such as
issuing bonds as well as providing bridge capital or bilateral
loans - to spread their bets in Europe.

Sources at the banks say that their European rivals can
afford to be more aggressive in their capital allocation as they
can access ultra cheap financing from the European Central Bank.

The retreat of Wall Street's giants nonetheless follows a
lending bonanza of several years, with U.S. lenders consistently
dominating European investment banking league tables since the
financial crisis in 2008, Refinitiv data shows.

"U.S. banks are right now more concerned with their domestic
commercial and retail banking activities, so they are taking a
more careful approach to Europe," said Societe Generale Germany
country head Guido Zoeller.

Bank of America, for example, turned down requests by
British events organiser Informa in March to underwrite
a new 750 million pound ($926.5 million) credit line, according
to one source with direct knowledge of the matter, despite being
its joint corporate broker.

BNP Paribas, HSBC and Spain's Banco Santander decided
instead to take on the job and underwrite the facility, while
Goldman Sachs and Morgan Stanley agreed to syndicate the debt.

Bank of America subsequently failed to land a key role in
handling Informa's share sale on Apr. 16 which raised 1 billion
pounds and was led by Goldman Sachs and Morgan Stanley as joint
global coordinators, the source said.

Informa did not respond to a request for comment.

A source close to Bank of America said the bank had
committed more than $9 billion to European clients for liquidity
back-up facilities since March 1.

FRENCH OFFENSIVE

BNP Paribas, under CEO Jean-Laurent Bonnafé, leads both
Refinitiv and Dealogic's league tables for syndicated loan
bookrunners in Europe, with Dealogic data showing it has
underwritten $32 billion worth of loans so far this year.

Despite oil market turmoil, BNP Paribas solely underwrote a
$10 billion credit facility for Britain's BP on Apr. 6.
It is unusual for one bank to underwrite such a large facility
alone, particularly in a sector under strain.

French lenders Societe Generale and Credit
Agricole, along with Santander and Italy's
UniCredit, have also moved to fill the lending gap,
Refinitiv data shows.

While facing pressure to provide much-needed financing to
domestic businesses, French banks have the backing of the
country's political establishment to expand overseas.

Having high levels of liquidity means French banks are
likely to be less affected from the fallout of the coronavirus
pandemic than other European lenders, one of the sources said.

BNP is widely seen as having emerged a relative winner from
the financial crisis by keeping a tight rein on costs and risk.
French banks say they have built up higher capital ratios and
liquidity levels than during the last crisis.

"The French banking system is seen as the most active and
the most solid," said a Paris-based banking source.

EXCEPTIONAL DEMAND

American banks' international focus had to give way as the
fallout from the coronavirus pandemic has triggered exceptional
demand for liquidity from both U.S. and European clients.

The eight banks topping this year's Refinitiv league table
for syndicated loans are all European, while Bank of America -
which was number one last year - has slipped to 10th position,
providing around $6 billion of loan commitments.

JPMorgan is the highest-ranked American bank, in ninth
place, down from seventh last year.

For an interactive version of this graphic, click here https://tmsnrt.rs/2XZv6NO
<https://tmsnrt.rs/2XZv6NO
>

Banks have seen cash-strapped clients around the world draw
down more than $150 billion of revolving credit facilities in
the first quarter of the year as business activity came to a
halt in many countries.

The rush to deploy lifelines has prompted lenders to set
aside billions of dollars in provisions to cushion potential
losses, while missing financial targets and stomaching sharp
declines in profit.

The bleak outlook, combined with a series of government
relief packages for struggling businesses in the United States
and Europe, has increased pressure on lenders to prioritize
domestic clients, using state guarantees to rescue companies.

"In this crisis most banks need to align their interests
with their own governments' and come forward to support
state-backed schemes," said a London-based banker.

"That's where nationalism comes from. It leaves banks with
tough choices to make as there is huge demand for liquidity
across borders."
($1 = 0.8095 pounds)

(Reporting by Arno Schuetze in Frankfurt, Pamela Barbaglia,
Abhinav Ramnarayan in London and Maya Nikolaeva in Paris;
Additional reporting by Karin Strohecker; Editing by Pravin Char
and Alexander Smith)

More News
28 Mar 2024 10:00

How the oil industry is thriving despite Joe Biden's climate policies

GRAPHIC on Biden's oil boom: https://www.reuters.com/graphics/USA-BIDEN/OIL/lgpdngrgkpo/

By Nichola Groom, Jarrett Renshaw

Read more
27 Mar 2024 20:59

New England offshore wind auction draws multiple bidders

March 27 (Reuters) -

Read more
27 Mar 2024 12:47

Ithaca Energy gets bid rights on Eni's UK assets, profit slips

March 27 (Reuters) - Ithaca Energy has been given a four-week exclusivity period by Italy's Eni, to make an offer for UK exploration and production assets that could expand its output massively, the London-listed company said on Wednesday.

Read more
27 Mar 2024 09:01

Big Oil's climate planning not good enough, investor group says

Climate Action 100+ assessed 10 top oil companies

*

Read more
27 Mar 2024 08:31

Big Oil's climate planning not good enough, investor group says

Climate Action 100+ assessed 10 top oil companies

*

Read more
25 Mar 2024 16:51

LONDON MARKET CLOSE: Renewed global tensions put pressure on stocks

(Alliance News) - Stock prices in London started the week in bad shape and closed lower on Monday, as investors sat on their hands amid rising global tensions.

Read more
21 Mar 2024 15:00

UK dividends calendar - next 7 days

Friday 22 March 
easyJet PLCdividend payment date
FRP Advisory Group PLCdividend payment date
Gulf Investment Fund PLCdividend payment date
Henderson Opportunities Trust PLCdividend payment date
Hercules Site Services PLCdividend payment date
Impax Asset Management Group PLCdividend payment date
JLEN Environmental Assets Group Ltddividend payment date
JPMorgan Multi-Asset Growth & Income PLCdividend payment date
Mattioli Woods PLCdividend payment date
Mobeus Income & Growth 2 VCT PLCdividend payment date
Mobeus Income & Growth 4 VCT PLCdividend payment date
Ramsdens Holdings PLCdividend payment date
Riverstone Credit Opportunities Income PLCdividend payment date
Ruffer Investment Co Ltddividend payment date
Samuel Heath & Sons PLCdividend payment date
Troy Income & Growth Trust PLCdividend payment date
Unilever PLCdividend payment date
Monday 25 March 
AstraZeneca PLCdividend payment date
Endeavour Mining PLCdividend payment date
Mountview Estates PLCdividend payment date
Shell PLCdividend payment date
Tuesday 26 March 
no events scheduled 
Wednesday 27 March 
abrdn Diversified Income & Growth PLCdividend payment date
Thursday 28 March 
Alliance Trust PLCdividend payment date
Balanced Commercial Property Trust Ltddividend payment date
Berkeley Group Holdings PLCdividend payment date
BHP Group Ltddividend payment date
BlackRock Energy & Resources Inc Trust PLCex-dividend payment date
BlackRock Sustainable American Income Trust PLCex-dividend payment date
BlackRock Throgmorton Trust PLCdividend payment date
BP PLCdividend payment date
City of London Investment Group PLCdividend payment date
Crown Place VCT PLCdividend payment date
CT UK Capital & Income Investment Trust PLCdividend payment date
Develop North PLCdividend payment date
Diversified Energy Co PLCdividend payment date
Downing Renewables & Infrastructure Trust PLCdividend payment date
Gateley Holdings PLCdividend payment date
Genus PLCdividend payment date
Hargreaves Lansdown PLCdividend payment date
HICL Infrastructure PLCdividend payment date
Idox PLCex-dividend payment date
Imperial Brands PLCdividend payment date
Melrose Industries PLCex-dividend payment date
Mid Wynd International Investment Trust PLCdividend payment date
Moneysupermarket.com Group PLCex-dividend payment date
NextEnergy Solar Fund Ltddividend payment date
North Atlantic Smaller Cos Investment Trust PLCdividend payment date
Personal Group Holdings PLCex-dividend payment date
Premier Miton Global Renewables Trust PLCdividend payment date
Quartix Technologies PLCex-dividend payment date
Renewables Infrastructure Group Ltddividend payment date
Schroder Real Estate Investment Trust Ltddividend payment date
SDCL Energy Efficiency Income Trust PLCdividend payment date
Smith & Nephew PLCex-dividend payment date
Taylor Wimpey PLCex-dividend payment date
Thames Ventures VCT 2 DSO 1 D PLCdividend payment date
Travis Perkins PLCex-dividend payment date
Utilico Emerging Markets Trust PLCdividend payment date
Vaalco Energy Incdividend payment date
Value & Indexed Property Income Trust PLCex-dividend payment date
VH Global Sustainable Energy Opportunities PLCdividend payment date
Volution Group PLCex-dividend payment date
Wynnstay Group PLCex-dividend payment date
  
Comments and questions to newsroom@alliancenews.com
  
A full 14-day events calendar is provided each day with a subscription to Alliance News UK Professional.
  
Copyright 2024 Alliance News Ltd. All Rights Reserved.

Read more
19 Mar 2024 16:57

LONDON MARKET CLOSE: European large-caps rise on eve of Fed decision

(Alliance News) - Blue-chip stock prices in Europe closed higher on Tuesday, showing little signs of nerves ahead of Wednesday's Federal Reserve decision and UK inflation reading.

Read more
19 Mar 2024 11:52

LONDON MARKET MIDDAY: European markets flat ahead of Fed and BoE

(Alliance News) - Stock prices in London were down at midday on Tuesday, as investors sat on their hands ahead of interest rate decisions from the UK and US.

Read more
18 Mar 2024 11:49

LONDON MARKET MIDDAY: FTSE 100 as shakes off pre-interest rate nerves

(Alliance News) - Stock prices in London were higher at midday Monday, as eyes were firmly on interest rate decisions across the globe.

Read more
15 Mar 2024 13:07

IN BRIEF: Costain wins place on GBP4 billion carbon capture project

Costain Group PLC - Maidenhead, Berkshire-based construction and engineering firm - Selected as one of nine specialist partners to deliver a carbon capture project beneath the North Sea off the east cost of England. The engineering, procurement, and construction contracts for the East Coast Cluster have a combined value of around GBP4 billion, Costain says. The contracts will be with Net Zero Teesside Power and the Northern Endurance Partnership. NZT Power is a electricity generating joint venture of the UK's BP PLC and Norway's Equinor. NEP is a joint venture of BP, Equinor and France's TotalEnergies SE that will provide CO2 transport and storage for the East Coast Cluster. Final investment decisions are expected in September or earlier, with the projects aiming for commercial operations from 2027.

Read more
15 Mar 2024 12:11

LONDON MARKET MIDDAY: FTSE 100 underperforms despite mining, oil boost

(Alliance News) - London's FTSE 100 overcame a muted morning to head into Friday afternoon on the up, though its progress was shy of the loftier gains seen by mainland European peers, as investors showed some signs of trepidation ahead of a pair of interest rate decisions next week.

Read more
14 Mar 2024 11:54

BP details green credentials in similar push towards net zero as Shell

(Alliance News) - BP PLC on Thursday outlined similar targets to cut emissions as peer Shell PLC, as both oil and gas majors strive to become net zero for carbon emissions by 2050.

Read more
14 Mar 2024 10:19

BP picks up Ashford site to boost electric charging scope for trucks

(Alliance News) - BP PLC on Thursday stepped up plans to increase its electric charging capacity for heavy goods vehicles by buying one of the largest truck stops in Europe.

Read more
8 Mar 2024 13:42

BP appoints Aviva boss Amanda Blanc as senior independent director

(Sharecast News) - Oil giant BP said on Friday that it has appointed Aviva chief executive Amanda Blanc as senior independent director with effect from after the annual meeting on 25 April.

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.