Finance

Confidence returns to deal making

1009160_ConfidenceReturns

Welcome to Thomson Reuters Exchange! We created Exchange, as the name suggests, as a forum for dialogue, a digital publication where ideas and insights, information, news and analysis can be exchanged and shared across the global ecosystem of professionals in a dynamic, interactive format. We invite you to experience the rich content and interactive features on your iPad, iPhone or Android tablet by downloading it from the App StoreGoogle Play or on Amazon. Or, to learn more about Exchange and stay abreast of the latest features, functionality and content in this issue and subsequent issues, visit our website.

This week’s post is by Matthew Toole, Director of Deals Intelligence.

It was the year that deal makers have been waiting for. After grappling with six years of post-financial crisis fits and starts, global deal making began firing on all cylinders over the course of 2014 with significant gains across mergers and capital markets.

Despite improving economic indicators, record corporate cash levels, a rising stock market and low interest rates, C-suite confidence seemed to be the missing component to a resounding signal that the next deal cycle had arrived. All of that changed in the first quarter of 2014 with a number of large-scale strategic bids across a number of sectors – competing bids for New York’s Time Warner Cable and France’s SFR in the Media and Telecom sectors, Facebook’s audacious $19 billion takeover of WhatsApp in the Tech sector and the beginnings of an all-time record year for Healthcare and Pharma M&A with Actavis PLC’s acquisition of Forest Laboratories. (more…)

Our markets – Part two

Our_markets___Corporate_Responsibility___Inclusion__CR_I____2014_Annual_Report___Thomson_Reuters

Being responsible and ethical is part of the Thomson Reuters heritage — a fundamental pillar of our business. We seek to attract and retain the most talented individuals and create an environment where all our people can develop to their full potential to better serve our customers and communities. Valuing and promoting diversity and inclusion is key to this objective. Explore our 2014 Corporate Responsibility & Inclusion report to see how we’re ensuring sustainable growth through diversity of talents, outlooks and ideas. Read part one here.

Pulitzer Prize – Reporting on human-rights abuses leads to Pulitzer — and helps free 900 people from traffickers

In 2014, Reuters won its first-ever Pulitzer Prize for text-based reporting. The 2014 Pulitzer Prize in International Reporting recognized the dedication of a team of Reuters reporters who spent two years investigating human-rights abuses in Myanmar. The Pulitzer committee recognized the team for “their courageous reports on the violent persecution of the Rohingya, a Muslim minority in Myanmar that, in efforts to flee the country, often falls victim to predatory human-trafficking networks.” By bringing the abuses to global attention, the team helped to free more than 900 people from trafficking rings.

Cyberbullying – Fighting back against the cyberbullies

Thomson Reuters this year released a major white paper, ”Fighting Cyberbullying in Schools: What Law Enforcement, Schools and Parents Can Do.” It draws on leading law enforcement professionals, a judge and a county attorney, to help police, school resource officers and security officials better understand, investigate and confront cyberbullying — often cited as a key factor in student suicides and deadly school shootings. Among the solutions outlined in the white paper is CLEAR, an investigative suite from Thomson Reuters, which helps identify and locate people engaged in cyberbullying.

Thomson Reuters Eikon – Eikon in the classroom gives students real-time trading experience

(more…)

AIFMD & IFRS: Fair value measurement & portfolio valuations

Evaluated pricing sits at the heart of fair value measurement. This hasn’t necessarily always been the case. In an interview with Finextra, Jayme Fagas, Global Head of Valuations & Transparency – Thomson Reuters Pricing & Reference Services, takes a look at the changing role of evaluated pricing for practitioners and its importance for portfolio valuations.

The significance of evaluated pricing for portfolio valuations centers and relies on the ability to defend an evaluated price. From a fair value pricing perspective, the capacity to defend an evaluated price is what’s truly needed to meet the regulatory obligations that IFRS and AIFMD as well as numerous other regulations have placed on market practitioners.

Access to market observable inputs is identified by Fagas in her interview with Finextra as one means to defend a price. Although a number of vendors do in fact offer prepackaged measurement tools, Fagas is cautious of their shortcomings resulting from a lack of clarity around how an exact measurement has been derived. Instead she asserts that the best outcome involves a combination of the measurement plus all the available market observable inputs which collectively produce a full package. (more…)

Weekly Investment Banking Scorecard

Weekly Investment Banking Scorecard

Fast facts:

  • UK M&A activity totals $165.8 billion, more than triple YTD 2014 levels
  • Europe ECM activity totals $99.4 billion, a 6% decrease compared to year ago levels
  • Asia DCM hits $233.6 billion so far in 2015, down 22% compared to last year
  • Energy & Power M&A hits $200.5 billion this year, up 56% compared to 2014 levels
  • Technology DCM underwriting totals $61.5 billion for YTD 2015, up 41% from 2014
  • Telecom ECM doubles compared to 2014 with $26.0 billion raised

For more info, download the full Investment Banking Scorecard. (more…)

Risk data aggregation, reporting, & governance

There has been much said about the challenges market participants face when trying to address regulatory change. The cost and resource implications of meeting new regulatory reporting requirements and enhanced risk management obligations are both significant and unavoidable. In an interview with Finextra, Marion Leslie, Managing Director – Thomson Reuters Pricing & Reference Services, explores data management in the context of today’s demanding post-crisis risk reporting climate.

As each new regulation introduces fresh complexities for firms – market participants need to source, manage and store the relevant data, demonstrate transparency and lineage of that data, as well as show confidence in their data and underlying processes.

In the interview below with Leslie, it is revealed that banks are still often more focused on the creation of risk management reporting procedures than the actual analysis and understanding of the risks considered. There is a need to move from the understanding and implementation of regulatory and risk management requirements into derivation of business benefit.

Whilst firms must comply with risk reporting, they are equally driven by the need to reduce costs, increase automation and operational efficiency, improve the accuracy of their regulatory reporting and, ultimately, make better trading and investment decisions. In order to achieve optimal results while managing data spend, Leslie encourages firms to see that regulatory requirements are not necessarily a cost or inhibitor to growth, but are in fact a growth enabler. Adopting a proactive approach to the management of risk enables a firm to make growth-oriented decisions rather than focus purely on post-event mitigation decisions. (more…)

[UPDATE] Australian banking sector outlook – Graphic of the day

UPDATE: We added a fourth bank (National Australia Bank) to the graphic.

Australian banks, renowned for their strong returns, face an earnings slowdown in coming years as stricter capital rules and a softening economy are set to put brakes to the stellar run of record profits and dividend growth. Today’s graphic looks at the earnings history and share performance of three of Australia’s largest banks.

Australia banks

Source: Thomson Reuters Eikon

Sustainable development

1009160_SustainableDevelopment

Welcome to Thomson Reuters Exchange! We created Exchange, as the name suggests, as a forum for dialogue, a digital publication where ideas and insights, information, news and analysis can be exchanged and shared across the global ecosystem of professionals in a dynamic, interactive format. We invite you to experience the rich content and interactive features on your iPad, iPhone or Android tablet by downloading it from the App StoreGoogle Play or on Amazon. Or, to learn more about Exchange and stay abreast of the latest features, functionality and content in this issue and subsequent issues, visit our website.

This week’s post is by Dr. Ranjit Tinaikar, Managing Director of the Advisory and Investment Management business at Thomson Reuters.

Here’s how Big Data and open standards can lower barriers to sustainable development enabling the public and private sectors to work together to achieve greater legal and regulatory transparency: (more…)

Despite the Deutsche Bank fine, an olive branch from the EU

European Commissioner for Financial Services, Jonathan Hill, speaks during a Thomson Reuters Newsmaker event

At last, there is a positive sign. After so many years of reputational damage, the financial services industry has been extended an olive branch by its regulatory masters – and it is one that should be grasped.

The most encouraging indication in many years that financial services has the opportunity to restore its reputation came last week from the summit of EU policymaking. In the midst of the UK’s election frenzy, which has seen the return of much negative comment about our industry, it was good to hear the European commissioner for financial stability issue a challenge for finance to take its rightful place as part of the solution to the EU’s economic troubles.

Lord Hill was speaking at a Thomson Reuters Newsmaker event, principally about Capital Markets Union.

Arguably no individual has greater influence over the future of the financial services industry. The Capital Markets Union he is tasked with establishing could perhaps rival the Single Market in revolutionising the fortunes of the EU’s member states, enabling Europe’s growth businesses to access funding across borders as never before. (more…)

‘When banks don’t do the right thing : Employee options,’ by Adam Augustine Carter, Esq., and R. Scott Oswald, Esq.

 

 

For a one-minute audio intro to the commentary, click here.

WestlawNext users: Click here to read the full article on WestlawNext.

Adam Augustine Carter

Adam Augustine Carter

R. Scott Oswald

R. Scott Oswald

Reuters Newsmaker: Capital markets union

European Commissioner for Financial Services, Jonathan Hill, speaks during a Thomson Reuters Newsmaker event

Breaking down barriers to completing the single market in Europe

A Reuters Newsmaker with Lord Jonathan Hill, European Commissioner for Financial Stability, Financial Services, and Capital Markets Union (CMU) indicated that a wave of regulation from Brussels since the financial crisis may ease on his watch but there would be no repeals of legislation.

The event on Friday (April 17), hosted by Reuters Editor at Large Axel Threlfall and introduced by President of Financial & Risk David Craig, was Lord Hill’s first speech to London’s financial community since his appointment to the European Commission last November.

David Craig said: “We are now a quarter-century on from the historic Maastricht Treaty, which promised free movement of capital within the EU. Perhaps Lord Hill is the man who can finally deliver.”

The aim of CMU reforms, and some $338 (Euro 315) billion in investment, is to kick start growth in Europe. Lord Hill described a lack of jobs and growth as the biggest threat to financial stability in the region. (more…)