Wednesday 26th November 2014
NEWS TICKER, WEDNESDAY NOVEMBER 26TH 2014: According to local press reports, the chief of the UAE stock market regulator wants more industrial companies to list their shares on exchanges dominated by property and investment firms. Abdulla Al Turifi, chief executive of the UAE Securities and Commodities Authority (SCA), says the regulator is reviewing applications for initial public offerings of up to four companies to list on the UAE bourses and another three applications for a new secondary market for companies that currently trade only OTC. The UAE is seeking to broaden its industrial base and reduce its reliance on hydrocarbons, but the country’s two main stock exchanges are dominated by property and financial listings. Recent IPOs have come from retail, a sector also previously unrepresented on the exchanges. In February this year, the SCA and the Ministry of Economy issued a law requiring private joint stock companies to list their shares on a second market, in the hope that it would encourage firms to eventually move onto the main board- Moody's has placed the B3 corporate family rating, B3-PD probability of default rating and B1 rating on the senior secured facilities of Reynolds Group Holdings Limited under review for downgrade. The review follows RGHL's announcement that it had entered into a definitive agreement to sell its SIG Combibloc business to Onex Corporation for up to €3.75bn. The transaction is expected to close in the first quarter of 2015, pending final regulatory approvals and the satisfaction of other customary closing conditions - Morocco’s House of Representatives yesterday approved a new law authorising the establishment of Islamic banks and private companies to issue Islamic bonds. Since the Islamist-led government took office in 2011, it has been attempting to develop Islamic finance in the country. The bill was passed unanimously - According to Iran’s Fars News Agency (FNA) Iran’s non-oil exports have grown by 28% since the end of March. Iran’s non-oil exports have surged by 28% since the Persian new year (March 21), Fars News Non-oil export revenues, minus gas condensates, were approximately $18bn this year. Roughly $5bn from the non-oil exports revenues were from tourism (up 32%), though the bulk comes from engineering, workforce and transit services. Some 93% of the country’s non-oil export revenue comes from Asian countries. Imports since the end of March have risen 32% to $21.695bn -IXICO the brain health company, today announces that the contracts for two separate clinical trials in Huntington’s disease with two pharmaceutical companies have been extended. As a consequence, IXICO anticipates the revenue from these two contracts to be significantly enhanced to a potential £2.5m over approximately three years – Any announcement around the sale of Japan Post Holding’s projected IPO now looks to be postponed until January, according to the company’s president Taizo Nishimuro, at a news conference earlier today. In October, the government selected Nomura Securities and ten other underwriters for the initial public offering. The IPO is the first leg of the government's plan to sell up to two-thirds of Japan Post's shares. The government is hoping to raise more than $20bn from the sale - The US Commodity Futures Trading Commission (CFTC) filed notice to revoke the registrations of Altamont Global Partners LLC (Altamont), a commodity pool operator of Longwood, Florida, and John G. Wilkins a principal, managing member and approximate one-third owner of Altamont. The notice alleges that Altamont and Wilkins are subject to statutory disqualification from CFTC registration based on an order for entry of default judgment and an amended Order of permanent injunction. The orders include findings that Altamont and Wilkins misappropriated commodity pool funds and issued false quarterly statements to pool participants. The notice alleges that Wilkins is subject to statutory disqualification from CFTC registration based on his conviction for conspiracy to commit mail fraud and wire fraud. A US District Court has sentenced Wilkins to 108 months in federal prison - The Straits Times Index (STI) ended +0.94 points higher or +0.03% to 3345.93, taking the year-to-date performance to +5.72%. The FTSE ST Mid Cap Index gained +0.08% while the FTSE ST Small Cap Index gained +0.08%. The top active stocks were SingTel (+0.26%), Global Logistic (+1.52%), DBS (-0.40%), OCBC Bank (+1.26%) and UOB (-0.42%).The outperforming sectors today were represented by the FTSE ST Consumer Services Index (+0.40%). The two biggest stocks of the FTSE ST Consumer Services Index are Jardine Cycle & Carriage (+0.29%) and Genting Singapore (+0.44%). The underperforming sector was the FTSE ST Utilities Index, which declined -0.97% with United Envirotech’s share price declining -0.61% and Hyflux’s share price gaining +1.09%. The three most active Exchange Traded Funds (ETFs) by value today were the IS MSCI India (+0.78%), SPDR Gold Shares (-0.22%), United SSE 50 China ETF (+2.33%). The three most active Real Estate Investment Trusts (REITs) by value were Suntec REIT (+0.26%), Ascendas REIT (+0.87%), CapitaMall Trust (+0.51%). The most active index warrants by value were HSI23800MBeCW141230 (+20.35%), HSI24400MBeCW141230 (+18.67%), HSI23600MBePW141230 (-20.00%) and the most active stock warrants by value today were OCBC Bk MBeCW150413 (+6.38%), KepCorp MBePW150330 (-5.88%), UOB MB eCW150415 (unchanged) - Sentiment in the Italian consumer sector has taken another step backwards according to the latest figures this month. The Italian Consumer Confidence indicator has now fallen for a seventh straight month to produce a November reading of just 100.8, from a peak above 106.0 this sentiment metric reached 101.3 last month, market expectations for today’s reading were for a slight rise to 101.6. The Organisation for Economic Co-operation and Development (OECD) yesterday published a less than optimistic report for the near term growth prospects of the Italian economy. The previous OECD report projected growth for Italy of 0.5% over the full 2014 year but this has now been revised downwards by almost a full point to forecast a 2014 contraction of -0.4%.

20-20: Ackermann looks to a new future

Thursday, 15 December 2011
20-20: Ackermann looks to a new future The internal structure of Deutsche Bank’s DNA “completely changed under chief executive Josef Ackermann,” says Konrad Becker, an analyst at private bank Merck Finck & Co. Ackermann not only extended the bank’s geographical reach and products but it also became much more client facing. He also introduced a more Anglo-American corporate governance framework with a clear hierarchy. This was revolutionary at the time. By Lynn Strongin Dodds. http://www.ftseglobalmarkets.com/

The internal structure of Deutsche Bank’s DNA “completely changed under chief executive Josef Ackermann,” says Konrad Becker, an analyst at private bank Merck Finck & Co. Ackermann not only extended the bank’s geographical reach and products but it also became much more client facing. He also introduced a more Anglo-American corporate governance framework with a clear hierarchy. This was revolutionary at the time. By Lynn Strongin Dodds.

The past few weeks have tested Deutsche Bank’s chief executive officer (CEO) Josef Ackermann. He unexpectedly withdrew his candidacy to become chairman of the supervisory board and police raided the bank’s Frankfurt offices and legal department. While headline grabbing, these glitches are not expected to diminish his legacy of transforming the one-time commercial bank into a global banking powerhouse and steering it through the market tumult of the last five years.

Historically, German corporate law shunned the idea of an American-style chief executive and an Anglo Saxon board where executives take responsibility for their own business lines. The preferred model was a Vorstand, a statutory managing board that promoted collective responsibility. Ackermann struck a compromise, although at the time it was considered groundbreaking. He became CEO, shrank the Vortsand and created a 12-man group executive committee, which he chaired. The new structure gave the Vorstand a strategy-making role, while the group executive committee, on which Vorstand members also sit, run the bank’s day-to-day operations.



He also severed long-held industrial ties, raising $5.3bn in the process, including the sale of a €1.6bn stake in Munich Re. He eliminated 14,470 jobs (18% of the workforce) and cut costs by one-third by closing retail branches and outsourcing management of the bank’s computer systems and real estate, and built out the bank’s US business. The Bankers Trust $10bn acquisition in 1999 was key in this regard. Although the purchase was not done on his watch (Rolf Breuer was chairman at the time), it provided a launch pad for Ackermann’s global investment banking ambitions.

“In the middle of the last decade, UBS was very profitable and it was the bank that Deutsche measured itself against, but then the financial crisis happened,” says Becker.  Deutsche Bank weathered the storm but did not escape unscathed. Ackermann often claims that the bank did not need a government injection  of capital, but critics note that in fact the bank (along with others) received the equivalent of a back-door bailout from American taxpayers when the US government intervened to prevent the insurer American International Group from collapsing.

Moreover, the bank faces litigation in the US tied to residential mortgages and in Germany regarding the mis-selling of complex financial products to municipalities. Separately, Ackermann himself is also embroiled in legal wranglings involving a former client, the late Leo Kirsch, and in early November 2011 prosecutors raided the bank’s offices looking for evidence of attempts to mislead the court.

Overall though, Ackermann has won plaudits for the way he has navigated the bank through extremely choppy waters over the past three years. Not everyone has been as happy. “The market capitalisation has more than halved since Ackermann and this has left a bitter taste in shareholder’s mouths,” says Michael Rohr, an analyst at Sylvia Quandt Research GmbH in Frankfurt, with the caveat:  “This has more to do with market conditions. Ackermann has had a strategic vision to transition the bank into a more stable business and has done a very good job with its risk management.”

Recent strategy involves a retreat from the investment banking business which contributes roughly 70% of the group’s total pre-tax profit and a return to commercial banking, retail and private banking. Strategic acquisitions are also on the agenda, among them Deutsche Postbank and Sal Oppenheim, Germany’s largest private bank. The bank is now expected to divest its asset management division— except for its profitable DWS retail franchise in Europe and Asia. A sale could raise $4.5bn which would improve the bank’s capital position in light of impending regulation.

The strategy is widely regarded as being driven by CEO-in-waiting Anshu Jain who, together with Jürgen Fitschen, will run the bank starting next May. Even so, Ackermann was not supposed to take a back seat in 2012; but now it looks as if he will retire. He was likely caught out by German law, which holds that  a chief executive of a listed company may not become its chairman without a two-year cooling-off period, unless 25% of shareholders endorse the move. In a fickle move of fate, Ackermann may not have received the support he anticipated and was put in an untenable position. Paul Achleitner, currently chief financial officer of insurer Allianz, is now mooted as the next chairman.

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