Reference News Network August 7 report - According to the Bloomberg News website on August 3, as tariffs scare away customers, Wall Street banks are losing ground in Europe.
As US President Donald Trump escalates his verbal attacks on European trade partners, businesses across the European continent are paying close attention.
According to data compiled by Bloomberg, the result is that some companies have begun to diversify their banking relationships and avoid the big Wall Street banks. This is good news for well-known European banks that have been actively trying to win additional business.
"Some companies say it's wiser to seek advice from European or French investment banks regarding financing or mergers and acquisitions," said Arnaud Petit, General Manager of Corporate Finance at the Edmond de Rothschild Group. Deutsche Bank CEO Christian Sewing has seen similar trends in potential clients' bidding documents.
According to data compiled by Bloomberg, about half of euro bond transactions by non-US companies this year have not involved any of the five major US banks. This proportion has increased by 5 percentage points compared to a year ago.
Sergio Ermotti, CEO of UBS, believes that the ability of a few European banks to provide "competitive services and advisory" to their clients has led some clients to want to switch banks. "We believe we have the necessary conditions to continue benefiting from this trend of diversification."
The latest example of non-US banks winning came this week: Swiss-based ACE Insurance Group issued an offshore RMB bond. The company chose Standard Chartered to handle the transaction.
ACE Insurance Group is not an exception. Ruchika Agarwal, Head of Corporate Banking for Asia-Pacific and Middle East at Greenwich Alliance Research, said this effect is most pronounced in Asia, where economies are expected to be severely impacted by changes in the trade system and the reconfiguration of supply chains.
Agarwal said, "Currently, Asian companies show a high willingness to change their transaction banks, with one-third planning to issue new bidding documents within the next 12 months."
Martin Smith, Head of Market Analysis at East&Partners, said, "We expect the loss of clients of US banks to intensify as large corporations take proactive approaches to managing risks such as foreign exchange, interest rates, counterparty risk, geopolitical tensions, and supply chain disruptions." (Translated by Cao Weiguo)
Original: https://www.toutiao.com/article/7535820062167450175/
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