Dominic's Feed
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
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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.

Jul 23, 2014
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“New Deutsche” just got pushed back again

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By Dominic Elliott

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

Raising $12 billion last month now looks like the easy part of Deutsche Bank’s renewal. The German lender is, it emerges, under fire from United States regulators for a raft of procedural failings. Deutsche may have repaired its capital position and revamped its strategy this year. But persuading investors the bank holds itself to higher standards than before the crisis is starting to look like a generation’s work.

Jul 22, 2014
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Credit Suisse cost cuts mask uneven performance

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By Dominic Elliott

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

Credit Suisse’s cost-cutting is masking uneven performance overall. The Swiss bank’s ugly second-quarter net loss was down to an already announced 1.6 billion Swiss franc charge: part of a mega-fine to U.S. authorities for helping American citizens evade taxes. But even after stripping that out, investors can’t sleep easy.

Jul 3, 2014
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Cash calls misstate likely EU bank equity deficit

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By Dominic Elliott

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

European bank cash calls could be misstating the sector’s overall equity deficit. Sixteen lenders have raised over 18 billion euros in equity this year, with Portugal’s Millennium BCP the most recent. Until the European Central Bank divulges its comprehensive assessment results in October, it’s not certain which ones are doing so out of desperation, and which are just being cautious.

Jun 30, 2014
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Philips lighting split is a bright idea

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By Dominic Elliott

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

A lighting split at Philips is a bright idea. The Dutch electronics group, which makes everything from defibrillators to air purifiers, has already spent years restructuring, pulling back from areas like televisions and home audio. Now Philips is moving its high-powered LED and car lights components operations into a standalone unit. Stepping out of their parent’s shadow should help the fast-growing businesses attract outside capital.

Jun 27, 2014
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Barclays’ hit reflects investment bank fears

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By Dominic Elliott

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

The market’s reaction to accusations that Barclays duped clients in its dark pool reflects more general fears of investment banking. Shares in the UK bank tanked as much as 9 percent on June 26 after New York Attorney General Eric Schneiderman alleged Barclays misled investors by playing down the number of “predatory” high-frequency traders on its private trading platform for equities. Barclays says it takes the allegations “very seriously.”

Jun 27, 2014
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Review: Rebooting banking – with Google’s help

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 By Dominic Elliott

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

Brett King may be, as his own author’s note claims, “the foremost global expert on retail banking innovation.” But his latest book is let down by an excess of acronyms and gushing advertorial.

Jun 12, 2014
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Brazil’s companies need soccer team’s global clout

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By Dominic Elliott

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

Brazil’s corporate squad pales beside its soccer stars. The country’s national football side has unquestioned world-class quality in almost every position on the pitch. Yet if there were a World Cup for businesses, Brazil would struggle to get past the group stage.

    • 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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