Dominic's Feed
Oct 23, 2014
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Credit Suisse’s future is mid-table drabness

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By Dominic Elliott

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Credit Suisse’s future is more workmanlike than its racy third quarter might suggest. The Swiss group revealed on Oct. 23 that its investment bank had trumped Wall Street: fixed income trading revenue leapt by a half year-on-year, against U.S. peers’ average mid-teens increase. But questions linger over Credit Suisse’s ability to maintain that performance if rates rise.

Oct 21, 2014
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FX business now shares equities’ harsh economics

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By Dominic Elliott

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Currency trading is taking over from equities as the challenged business in investment banking. Resurgent volatility in foreign exchange markets during September and October is unlikely to offer more than a temporary respite for the business.

Oct 17, 2014
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More is less for Credit Suisse’s three co-heads

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By Dominic Elliott

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Three looks a crowd at the top of Credit Suisse’s investment bank. The Swiss firm has promoted Jim Amine and Tim O’Hara alongside existing co-chief Gael de Boissard, adding a new twist to the turf wars typical when big sections of lenders are run by co-heads. But the moves could prefigure a more significant succession – that of Chief Executive Brady Dougan.

Oct 15, 2014
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Qualcomm signals $2.5 bln belief in Bluetooth

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By Dominic Elliott

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Qualcomm’s 1.6 billion pound ($2.5 billion) deal to buy Britain’s CSR sends a positive signal to rivals on Bluetooth. The U.S. chipmaker’s $120 billion market cap means the purchase isn’t a stretch – but it comes at a high price and an odd time.

Sep 24, 2014
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BNP Paribas needs a chair to shake up its board

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By Dominic Elliott

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

A new chairman at BNP Paribas should start by refreshing the board. Baudouin Prot is set to step down as the chairman of France’s biggest bank, with technocrat Jean Lemierre his expected successor. Lemierre is an acceptable, if not quite perfect, replacement. But whoever succeeds Prot, his or her most important task is to shake up BNP’s non-executive directors.

Sep 2, 2014
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Banks risk provoking EU with bonus get-arounds

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By Dominic Elliott

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Investment banks that are too successful in mitigating the impact of Europe’s new bonus curbs could be setting up another fight over pay. Most big banks are now paying so-called allowances to circumvent European Union rules, which bar firms from paying bonuses worth more than double base salary. If policymakers conclude that bankers are still wrongly paid, they could do something about it.

Sep 1, 2014

Credit Suisse/Baer tie-up would have weak logic

(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own.)

By Dominic Elliott

LONDON, Sept 1 (Reuters Breakingviews) – The idea that
Credit Suisse should buy Julius Baer looks
like it originated in a Zurich beer hall. The city’s latest
parlour game is to imagine a tie-up between Switzerland’s
second-biggest bank by assets and the country’s largest
standalone wealth manager. The financial and strategic logic of
such a move seems weak.

Aug 8, 2014
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BlackRock is right: European IPOs need more work

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By Dominic Elliott

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

BlackRock is right: European initial public offerings need more work. The world’s largest asset manager recently emailed bookrunners asking why a third of new listings in Europe this year were trading down and how matters could be improved. The IPO market is much healthier than when BlackRock railed against UK listings in 2011. But there are still too many banks per deal and buyers are still rushed into decisions.

Aug 1, 2014

Underwriters share blame in Portuguese bank fiasco

By George Hay and Dominic Elliott

LONDON, Aug 1 (Reuters Breakingviews) – Banco Espirito
Santo’s shares have tanked 70 pct since a rights issue barely
two months ago. UBS and Morgan Stanley, which led the 1 bln euro
equity raise, hoisted red flags. The banks could have heeded
their own findings and refused the job. Customers have a right
to be angry.

A full view will be published shortly.

CONTEXT NEWS

- Banco Espirito Santo on July 30 reported a loss of 3.6
billion euros and said it would need to raise fresh capital. The
Bank of Portugal said senior BES officials had been suspended
over suspected “harmful management” that may have contributed to
the bank’s losses.

Jul 29, 2014
via Breakingviews

Deutsche/UBS: there’s life in EU bond trading yet

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By Dominic Elliott

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Deutsche Bank and UBS have shown there is life in Europe’s bond traders yet. The two banks and Credit Suisse have been losing share to Wall Street since last year, but in the second quarter they hit back. Fixed-income revenue at Deutsche was flat year-on-year, and down just 2 percent at UBS – against a 9 percent average fall at American banks.

    • About Dominic

      "Dominic is a London-based columnist covering investment banking. Prior to Breakingviews, he spent two years at moneydealer ICAP, where he brokered equity derivatives trades between investment banks, high-frequency trading firms and hedge funds. He has more than five years of financial journalism experience, including stints as news editor and investment banking editor at Financial News. He has also written for The Wall Street Journal Europe. Dominic holds an MA in Classics from Oxford University and an MSc in Development Management from the London School of Economics. Follow Dominic on Twitter @DominicElliott"
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