Natixis’ Chief Economist for Asia Pacific discusses Europe’s role in trade war with Cinco Días.

Featured in Cinco Días, the oldest financial and business newspaper in Spain, Alicia García Herrero, Natixis Chief Economist for Asia Pacific, discussed how the ECB’s delay in raising interest rates represents an opportunity for stock markets and European companies to win in the commercial trade war.

Ultimately, the trade war is strategic, not tactical, says Herrero, with any agreement becoming increasingly unlikely. Donald Trump’s aim is to slow down the technological boom in China and reduce the deficit simultaneously. Sanctions on Europe are only being used to detract attention from these objectives, she says.

While Europe has the power to sway the favour towards whichever player offers the most favourable terms, major obstacles to its success as a balancing actor are those of distrust within the eurozone, not listening to member states’ concerns and refusing to negotiate with them.

The interview was published in the Saturday newspaper and online. Read the full article here.

News of BNY Mellon realigning its Treasury Services leadership team in EMEA covered by the specialist press

BNY Mellon’s Treasury Services business has realigned its leadership team in Europe, the Middle East and Africa to focus on its different market segments across the region.

Daniel Verbruggen and Bana Akkad Azhari have both been promoted to the business leadership team. Verbruggen will continue to be responsible for relationship management in Europe, and Akkad Azhari for the Middle East, Africa and the Commonwealth of Independent States.

Commenting on the new roles, global head of relationship management and business development for treasury services at BNY Mellon, Alan Verschoyle-King said, “The realignment will ensure that we can bring specialisation to two distinct market segments, with Verbruggen focusing mainly on liquidity and cash management solutions for clients and Azhari on more traditional cash management and trade solutions.”

Following Moorgate’s outreach, the news was covered by: GTR, TMI, TFR, FX-MM, Treasury Today, TXF, bobsguide, Global Banking & Finance Review

Deutsche Bank publishes new guide to EU Payment Services Directive 2

Banks and payment providers will need to adapt their systems and processes to comply with the requirements of the new EU Directive on Payment Services (PSD2), according to a new guide published by Deutsche Bank, in collaboration with PPI AG, that explains the directive’s most important provisions, as well as its impact on the operations of payment service providers and corporates. 

Applicable from 13 January 2018, PSD2 is a major update of the EU’s first Directive on Payment Services, published in 2007, which laid the legal foundation for the creation of an EU-wide single market for payments. PSD2 aims to bring EU regulation up-to-speed both with the step-change in technological development and the shake-up of the payments market that have occurred since the first directive came into force.

It extends the existing directive’s scope to cover transactions in all currencies where both the payer’s and payee’s payment service providers (PSP) are located in the EU/EEA (two-leg-in), as well as to transactions where only one PSP is located in the EU/EEA (one-leg-out).

It introduces stricter safety requirements for accessing payment account information and for the initiation of payment transactions via online channels, mandating 2-factor authentication; and it extends market access to   ̶   and control over   ̶   third party providers of payment initiation and account information services.

“We welcome PSD2 as a further step in the development of the European payments market that will facilitate a completely new “innovation ecosystem” in payments in Europe” says Shahrokh Moinian, contributor to the new guide, Global Head of Cash Management Corporates, and Programme Lead of the PSD2 Implementation Project at Deutsche Bank. “It widens the scope of the existing directive by covering new services and players, as well as by extending it geographically and by currency. PSD2 will strengthen consumer rights and security as well as encouraging competition in the payments space”.

Following Moorgate outreach, news of the guide’s publication was picked up in Asset Finance International, AssetMan.net , Global Custody, Institutional Asset Manager, Transaction Banker, TXF. 

You can access the guide “Payment Services Directive 2: Directive on Payment Services in the Internal Market (EU) 2015/2366” here.

 

Deutsche Bank’s Andrew Reid in The Paypers: B2B payment innovation is possible only through collaboration

Andrew Reid explains in The Paypers that collaboration is needed for banks to achieve the same level of transformation and convenience in the B2B space that they have already delivered in the retail banking space.

In an interview previously published in the B2B Fintech: Payments, Supply Chain Finance & E-invoicing Guide 2016, Reid says that banks and corporates need to invest in real-time payments. These will benefit corporates who wish to execute time-sensitive transactions – such as High-Value, critical vendor or M&A-related payments – while receiving close-to-immediate proof of execution.

“For large banks, involvement in establishing such future payment/collection platforms is a “revenue loss avoidance” tactic rather than a “profit creation” one, as they will otherwise lose market share to disruptors,” says Reid. This is why Deutsche Bank and others are helping to develop a Pan-European Instant Payment Solution.

Reid goes on to talk about the benefits   ̶  but also the challenges  ̶  of implementing pay-on-behalf-of/collect-on-behalf-of (POBO/COBO) structures. These can help corporates consolidate cash flows and rationalise account structures, as well as increase their purchasing power when negotiating cash management terms with banks.

You can read the full interview here.

 

 

Specialist press cover Deutsche Bank’s trade finance hire of David Herbert

 

david-herbert

Deutsche Bank has made a significant hire to its Trade Finance London team. David Herbert rejoins Deutsche Bank after five years with Bank of America Merrill Lynch (BAML), where he latterly headed the Western European Trade Sales team.

David has over 30 years banking experience and spent the majority of his career in a variety of trade finance related roles.  Prior to his time at BAML, David was with Deutsche Bank AG, London, for 15 years.  Before joining Deutsche Bank, he worked within the trade finance department at Sumitomo Banking Corporation, London, for 9 years.

David rejoins the London-based sales team and will be focused on growing Deutsche Bank’s trade finance corporate business in the UK. David will report to Russell Brown, Head of Trade Finance for the UK & Ireland.

The move was covered by GTR, International Trade, TFR, TXF and Trade Finance.

World Finance names Commerzbank ‘Best Commercial Bank in Germany’

commerzbankRecognising the years spent assisting German companies engage in international trade, leading magazine, World Finance, names Commerzbank ‘Best Commercial Bank, Germany’ in  yet another award for 2016.

The magazine notes Commerzbank’s comprehensive range of products and services to over 100,000 German clients, its role as the country’s leading financer of SMEs, as well as its global network which offers clients a truly international reach.

Commerzbank Divisional Board Member, Roland Boehm, remarks: “Globalisation is continuing, countries are becoming ever more interrelated, and we are very keen to be an active part of that. This award reflects our ability to offer corporate clients access to a substantial network of global branches and subsidiaries, with over 70 sites in over 50 countries.”

World Finance‘s annual Banking Awards have celebrated innovation and achievement in the best financial institutions worldwide since 2007. The winners – drawn from a list of nominees selected by the magazine’s readership – are judged by a panel of experts and editors with a combined experience of over 230 years in financial and business journalism.

Recorded at the World Finance studio, please view the video interview with Roland Boehm here and his short acceptance speech here.

ICC United Kingdom in The Telegraph’s live EU referendum feed

Telegraph feedFollowing the UK’s vote to leave the EU, the International Chamber of Commerce (ICC) United Kingdom has featured in The Telegraph’s live referendum feed. In the post, Chris Southworth, Secretary General of ICC United Kingdom, states:

“The UK is part of a global economic system and the impact of today’s decision goes far and wide.

“It will take a while to be absorbed – parts of the world are only now waking up to the news – and, while it is easy to get caught-up in the emotions, we must stay calm, take a step back, and carefully assess the impact on global commerce.

“As an organisation, ICC’s focus is on reiterating the importance of trade and investment – trade and investment channels with the EU must remain open, trade flows must remain strong, and we must remember that ratifying trade agreements is the key to encouraging growth and prosperity.”

To see the ICC’s statement in The Telegraph, please click here.

Post- Brexit, could the UK infrastructure market weather the storm? S&P Global asks investors

Mike Wilkins

With just days to go until the UK decides on whether or not to remain in the EU, Michael Wilkins, managing director of infrastructure finance at S&P Global Ratings, writes for leading infrastructure publication, InfraNews, about the likely impact of a ‘Brexit’ on infrastructure investment in the UK. Based on the results of a recent survey of 51 UK and international institutional investors conducted by the ratings company, Wilkins concludes the that the only certainty is uncertainty. According to Wilkins, not only does a potential Brexit threaten the vital flows of EU funding to the UK’s infrastructure market – such as €19.1 billion from the European Investment Bank, and even more from the Juncker Plan’s European Fund for Strategic Investments – it also unnerves investors, with some already curtailing their allocations to the UK.

He goes on to suggest that it is the overseas investors – who currently finance more than two thirds of British infrastructure – that could be hit hardest. This is because a Brexit would likely increase currency volatility. In fact, an overwhelming majority – around 71% – of S&P’s survey respondents said they would be dissuaded from further investment in the UK if the pound was to drop in value.

Wilkins concludes that while most of the UK’s current infrastructure projects and companies could weather the immediate economic turbulence created by an ‘out’ vote, in the long term, indirect effects on creditworthiness could be significant – especially for those tied to the UK’s sovereign rating, which could face a ‘negative outlook’ rating following a Brexit.

For the full article please click here (note: subscription is required).

S&P discusses the challenges of funding Europe’s infrastructure in Global Banking and Finance Review

CaptureEurope needs infrastructure to help spur its growth – but faced with high levels of debt and policies of austerity, governments are finding it difficult to justify funding expensive projects. Writing for Global Banking and Finance Review’s latest monthly issue, Standard & Poor’s Michael Wilkins, managing director of infrastructure finance ratings, points to greater collaboration between the private and public sectors as a solution. Building on a survey of key industry experts, he notes that with the support of such collaboration, government authorities can better identify and prioritise the correct projects, while institutional investors can channel financing according to risk, cost and demand.

The obvious means for fostering this collaboration, as highlighted in S&P’s survey, is improved public-private partnerships (PPPs). Given Europe needs a more developed and flexible PPP framework, Wilkins suggests that ‘capital recycling’ – that is, the sale of existing ‘brownfield’ infrastructure assets to free up funding for new ‘greenfield’ projects – or the raising of new dedicated taxes, like those used to source the funds for London’s new Crossrail, can help.

The magazine can be viewed in full here – please turn to pages 37-39 for S&P’s article.