Funds find opening in commodity trade finance; US banks see value in branches

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Editor's Pick

Funds see 'strong business case' for commodity trade finance amid banks' retreat

Commodity trade finance suffered a hit to its reputation in 2020 as it faced major losses and fraud scandals. Despite this, funds see the segment as an attractive investment opportunity, even more so now that banks want out.

"They have spotted a market opportunity and they're correct, there is one," said John MacNamara, previously Deutsche Bank's global head of structured commodity trade finance. The outlook for commodities, including within energy, is "pretty positive for 2021," he added.

Financials

Big US banks mount branch-building spree in expansion markets

Banks have been slashing branch networks for about a decade and accelerated the closures in 2020 as the pandemic pushed even more activity online. But big incumbent bank CEOs like JPMorgan's Jamie Dimon still believe branches are key to leveraging national brand names and hitting growth targets.

Mitsubishi UFJ Financial faces growing credit risk from lending outside Japan

Japan's biggest bank, which extends more loans overseas than Sumitomo Mitsui Financial Group and Mizuho Financial Group, has shown the highest nonperforming loan ratios and loan loss provisions among the three Japanese megabanks for at least five consecutive quarters.

BPCE's buyout of Natixis will simplify structure, reduce risk

France-based Groupe BPCE's plan to buy out the minority shareholders of investment banking subsidiary Natixis comes at a time when lenders are suffering from tough competition, low interest rates and the economic impact of the coronavirus.

Technology, Media and Telecommunications

Digital ad spend in Europe resilient in face of pandemic

Advertising spend in Western Europe fell 6.3% year over year in 2020, less than the expected 10.3%, as digital mediums performed better than anticipated amid the coronavirus pandemic.

Battle for No. 3 streaming service behind Netflix, Disney begins – analysts

While Disney and Netflix are expected to be neck and neck for leading the global streaming market by 2024, analysts are convinced that services from the other media conglomerates will fashion a solid second tier over the next few years.

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