Credit Agricole scores European Central Bank permission to hike Banco BPM stake up to 19.9%
A branch of the French Credit Agricole bank is seen in Warsaw, Poland.
Jaap Arriens | NurPhoto | Getty Images
The European Central Bank has authorized Credit Agricole to raise its stake in Italian lender Banco BPM up to 19.9%, the French bank said Wednesday.
The ECB’s permission is a prerequisite for stakeholders to increase their position in a lender within the European Union past certain thresholds.
Credit Agricole on Wednesday disclosed it has gained a 9.9% stake in Banco BPM through derivatives since the fourth quarter of last year. It plans to exercise physical delivery of Banco BPM shares underlying that position and bring its holding to 19.8% of the Italian lender’s share capital.
“Crédit Agricole S.A. does not intend to launch a public offer for the capital of Banco BPM,” the French bank said. Banco BPM has already drawn the takeover sights of Italian rival UniCredit, which earlier on Wednesday revealed Italian regulators had authorized its offer document.
— Ruxandra Iordache
Europe stocks open lower
European stock markets opened lower Wednesday, with the Stoxx 600 index down 0.36% at 8:04 a.m. in London.
France’s CAC 40 and Germany’s DAX were both down around 0.35%, while the U.K.’s FTSE 100 fell 0.18%.
Stoxx 600 index.
Investors will be assessing scale of upside on tariffs, economist says
The Trump administration has guided that it will impose “maximum” reciprocal tariffs on trading partners on April 2, but the scale of the upside scenario is still to be gauged, Florian Ielpo, head of macro at Lombard Odier, told CNBC on Wednesday.
Ielpo said that according to his calculations, markets were pricing an effective tariff rate of between 6% and 10%, accounting for elements like import levels and exemptions.
“Markets are ready for that, they’ve been discounting the immediate effect of that — not the long-term, forward effect of that because it’s very difficult to know,” Ielpo said.
“The worst-case scenario is probably something in the region of 17%, which would be the largest increase in tariff duties we would have seen in 125 years of tariff data. For that, the Vix [Volatility Index] is clearly not high enough.”
“The key message for markets is rather than looking at sectors, [look at] the overall level of tariffs and the scale of magnitude with which they will be applied,” he added.
— Jenni Reid
Italian regulator approves UniCredit’s offer document for Banco BPM bid
The Commerzbank AG headquarters, in the financial district of Frankfurt, Germany, on Thursday, Sept. 12, 2024.
Emanuele Cremaschi | Getty Images News | Getty Images
Italian securities regulator Consob on Wednesday approved the document of UniCredit‘s takeover bid for Italian domestic peer Banco BPM, UniCredit said in a release.
The offer, which has been greenlit for a tender period between April 28 and June 23, entitles holders of each Banco BPM share to 0.175 newly issued UniCredit ordinary shares with regular dividend rights.
On the footsteps of building and increasing a surprise stake in Commerzbank late last year, UniCredit unexpectedly launched a $10.5 billion takeover offer for Banco BPM in November. Banco BPM at the time responded that the bid did not reflect its profitability and potential for further value creation.
— Ruxandra Iordache
Europe’s pharma industry braces for tariffs
Containers of Ozempic and Wegovy seen at Children’s Hospital in Aurora, CO, Nov. 18, 2024.
Kevin Mohatt | The Washington Post | Getty Images
Europe’s pharmaceutical sector is bracing for the potential impact of U.S. tariffs as hopes of an industry-wide exemption by U.S. President Donald Trump fade.
The pharmaceutical industry has until now been exempt from trade levies, but Trump confirmed last week that he would soon impose tariffs on the sector.
Drugmakers are now lobbying the president for a phased approach to duties on imports to the U.S., Reuters reported Tuesday, citing four sources familiar with the discussions. The sources said the levies may not be announced Wednesday but were likely inevitable.
— Karen Gilchrist
European markets: Here are the opening calls
European markets are expected to open lower Wednesday as global traders prepare for U.S. President Donald Trump’s trade tariffs.
The U.K.’s FTSE 100 index is expected to open 24 points lower at 8,558, Germany’s DAX down 38 points at 22,501, France’s CAC 4 points lower at 7,872 and Italy’s FTSE MIB 74 points lower at 37,977, according to data from IG.
There are no major data releases Wednesday. Earnings are set to come from Raspberry Pi.
— Holly Ellyatt
White House considering roughly 20% tariff on most imports, report says
White House aides have drafted a proposal that would levy tariffs of roughly 20% on most imports, The Washington Post reported Tuesday.
The report cited three people familiar with the matter. It also said White House advisors cautioned that several options are still on the table, meaning the 20% tariffs may not come to pass. Another plan being considered is the country-by-country “reciprocal” approach, according to the Post.
The report comes a day before April 2, when President Donald Trump is set to announce his larger plans for global trade. The date has loomed over Wall Street, where stocks have been struggling in part due to uncertainty around rapidly changing global trade policy.
— Jesse Pound
