1. UPDATE 1-Deutsche could need 9 bln euros to pass new EU test - sources


    By Philipp Halstrick and Alexandra HudsonFRANKFURT/BERLIN, Oct 13 (Reuters) - Deutsche Bank would need 9 billion euros ($12.4 billion) in fresh equity if new EU stress tests imposed a 9 percent core tier 1 capital ratio, two people with direct knowledge of the bank’s finances said on Thursday.The bank would pass the latest European Banking Authority test if a 7 percent ratio were to be required, the sources told Reuters.Deutsche Bank declined to comment, but in separate remarks the bank’s chief executive said it would do all it could to avoid a forced recapitalisation.Josef Ackermann said the bank had enough funds of its own to cope with a crisis and added that writedowns of sovereign debt, or haircuts, combined with demands to boost bank capital could lead to a credit crunch in the real economy.The European financial watchdog is going to require banks to hold more capital than previously demanded in order for them to be able to withstand sovereign debt writedowns and a worsening economic situation.Ackermann, Germany’s most high-profile banker, said it was doubtful whether a blanket recapitalisation of European banks — a measure being considered by politicians in Germany and France — would help solve the sovereign debt crisis.”It is not the capital position which is the problem, but the fact that sovereign debt as an asset class has lost its risk-free status,” Ackermann told a conference in Berlin. “The key to the solution is therefore in the hands of governments, to restore confidence in the solidity of state finances.”He said it was key to ensure that banks had access to long-term financing from markets. “At the moment that is close to impossible for any bank,” he said.Before considering further measures to stabilise the euro zone politicians and regulators should consider the cumulative impact of proposals such as forced recapitalisation, a transaction tax and writedowns on bonds.”We need to find the right balance between stricter regulation of the financial sector and the impacts these have on the economy as a whole,” he said.Deutsche Bank’s obligation to retain Greek bonds had cost it 400 million euros this year, he said.Ackermann’s warning comes as Europe’s economic engine faces slowing growth in many of Germany’s top export markets as governments rein in spending to bring down high debt levels.The German government expects gross domestic product growth of 3 percent this year, which would provide vital economic stimulus to a euro zone that has become increasingly dependent on Germany as the debt crisis intensifies.

  2. Investment in European property rises in Q3


    The CBRE data showed third-quarter property investment in the UK was 7.5 billion euros, down 22 percent from a year earlier. In Germany it rose 56 percent to 5.7 billion euros, while in France it was up 43 percent to 3.6 billion.In central and eastern Europe (CEE), property investment rose 70 percent to 2.7 billion euros, making it the fastest-growing European property investment market, with activity focused on Poland, the Czech Republic and Hungary.”With 81 billion euros of investment activity reported in the market in the first three quarters of the year, we expect European investment turnover to exceed that in 2010, when 110 billion euros was transacted for the full year,” Hull said.

  3. BASIS POINT-IFC Development refinancing cut 71% to HK$5 bln


    When it first sounded the market in July, the borrower, owned by blue chips Sun Hung Kai Properties Ltd , Henderson Land Development Co Ltd and Hong Kong & China Gas Co Ltd , was considering a HK$17 billion facility to refinance a maturing deal of roughly the same size. But in early August the company opted to cut the size to HK$10 billion in a bid to ensure successful syndication.IFC Development is now inviting relationship banks to join as underwriters at an all-in of between 140 basis points and 150 basis points via a margin of 135 basis points over Hibor with commitments of HK$500 million to HK$1 billion. Tenor of the unsecured deal is set at 3.5 years.The deal’s loan pricing is at the low end of the previous price talk of between 150 basis points and 180 basis points all-in.”It’s a reflection of the cautious sentiment in Hong Kong’s loan market where many banks are suffering with soaring funding costs,” said a corporate loans banker with one of IFC’s existing lenders.After a bull run in the first half this year, Hong Kong’s loan market has turned because tighter liquidity and spiking funding costs have made lenders more selective and prompted them to demand higher prices on new deals. Loan pricing for large corporate borrowers in Hong Kong has almost doubled to 170 basis points all-in, compared to the sub-90 basis points margins seen at the end of 2010.As a result, the city’s total syndicated loan volume plunged to $11.55 billion in the third quarter, down 42% from the second quarter, marking the sharpest quarter-on-quarter fall in five years, according to Thomson Reuters LPC data.Nevertheless, some loan bankers looking at the situation do not expect IFC Development to experience any hiccups in the syndication as the deal is largely relationship-driven.Meanwhile, banking sources said shareholders of IFC Development — which holds International Finance Centre, the premier office and retail complex in Hong Kong’s Central district — are planning to inject cash into the company to repay part of the maturing facility that is being refinanced.The new IFC loan will refinance a HK$17.35 billion five-year facility completed in March 2007. A total of 19 banks joined IFC’s 2007 loan as mandated lead arrangers and 14 others joined in general syndication. The 2007 loan paid a top-level all-in of 43 basis points via a margin of 37 basis points over Hibor.The MLAs on the 2007 loan were ABN AMRO Bank, Bank of China Hong Kong, Bank of Communications, Bank of East Asia, Bank of Tokyo-Mitsubishi UFJ, BayernLB, BNP Paribas, the then Calyon, CCB International Finance, Citigroup, DBS Bank, Fortis Bank Hong Kong, Hang Seng Bank, HSBC, ICBC Asia, Mizuho Corporate Bank, Rabobank International, Standard Chartered Bank and Sumitomo Mitsui Banking Corp.The rest of the participants were Shanghai Commercial Bank, Agricultural Bank of China, Wing Lung Bank, Bangkok Bank, BBVA, KBC Bank, Scotia Bank, Bank of China Tokyo, Nanyang Commercial Bank, Public Bank, Tai Fung Bank, Mega International Commercial Bank, Bank of China Macau and Chong Hing Bank.

  4. ACÇÕES PORTUGAL-PSI20 em queda c/Europa, olhos voto Eslováquia


    * A Eslováquia é o último dos 17 membros da Zona Euro a votar esta proposta. A União Europeia adiou a cimeira de líderes para 23 de Outubro de forma a finalizar a estratégia da Zona Euro para resolver a crise de dívida soberana.”Os mercados aproveitaram para corrigir e fazer mais valias após vários dias de subidas sucessivas, num dia em que se espera a ratificação da Eslováquia em relação ao FEEF e, do outro lado do Atlântico, o destaque vai para a Alcoa que apresenta contas”, disse Diogo Oliveira, trdaer do Banco Best.”O voto eslovaco está na ponta da faca: qualquer coisa pode acontecer. Mas, se votarem contra, podem votar novamente”, disse Jeremy Batstone-Carr, da Charles Stanley, frisando: “o mercado acha que eles se estão a fazer difíceis”.* A acentuar o nervosismo dos investidores estiveram também as declarações do ainda presidente do Banco Central Europeu (BCE), Jean Claude Trichet, que afirmou que a crise de dívida tornou-se sistémica e que os riscos à economia estão a aumentar rapidamente, com os bancos europeus numa zona perigosa.* O índice PSI20 cai 1,53 pct para 5.970,01 pontos, com 19 títulos em queda e uma subida, tendo-se negociado 23,3 milhões de acções ou 27 ME, na NYSE Euronext Lisbon .* Os analistas técnicos do BPI apontam os 5.945 pontos como próximo nível de suporte do PSI20 e aconselham uma postura compradora, explicando que há uma “dinâmica compradora de curto prazo, após terem sido alcançados níveis mínimos”.* A Brisa lidera as descidas percentuais do índice com uma queda de 3,24 pct para 2,602 euros, estando a Portugal Telecom a recuar 2,48 pct para 5,344 euros e a Jerónimo Martins a perder 2,75 pct para 12,01 euros.* Na banca, o Banco Espírito Santo perde 1,62 pct para 1,938 euros, o BPI recua 1,35 pct para 0,657 euros, o Millennium bcp tomba 2,86 pct para 0,17 euros e o Banif cai 0,77 pct para 0,388 euros, em linha com os pares europeus.* O euro cai 0,26 pct para 1,3602 dólares, a corrigir dos máximos de uma semana alcançados ontem.* Os futuros do Dow Jones DJc1 caem 0,3 pct e os do Nasdaq cedem 0,41 pct, apontando para uma abertura em baixa do outro lado do Atlântico, no dia em que a Alcoa apresenta as suas contas e dá início à época de resultados nos EUA.* O contrato do barril de brent para Novembro LCOc1 cai 0,49 pct para 108,42 dólares e o de crude CLc1 recua 0,49 pct para 84,99 dólares, com os investidores a recear quanto à saúde da zona euro e quanto à greve dos funcionários das alfândegas no Kuweit, que poderá causar interrupções no fornecimento de crude.(Por Patrícia Vicente Rua; Editado por Filipa Cunha Lima)