Austria's Bawag snaps up Depfa Bank; Morgan Stanley, JPMorgan eye Bitcoin

TOP NEWS IN GLOBAL FINANCIALS

* Austrian bank Bawag Group AG agreed to acquire Ireland-based Depfa Bank PLC and its unit Depfa ACS Bank DAC from their parent company, German state-owned bad bank FMS Wertmanagement AöR.

* A Morgan Stanley investing arm, Counterpoint Global, is looking at Bitcoin as an option for its investors, Bloomberg News reported, citing people with knowledge of the matter. Should the Morgan Stanley Investment Management Inc. unit decide to offer it, permission from the firm and regulators would be needed. JPMorgan Chase & Co. co-President Daniel Pinto also expressed the company's openness to the digital asset, saying that JPMorgan's decision would be based on client demand, according to a separate CNBC report.

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

Fund managers and industry experts argue that banks' large commodity losses in 2020 were largely caused by specific bank practices that could have been avoided, and now see the segment as an attractive investment opportunity.

➤ European loan pipeline thins, with repricings anticipated

The forward calendar for the European leveraged loan market stands at €8.41 billion this week, of which €4.70 billion is institutional debt. This is down from €11.33 billion last week.

U.S. & CANADA

* The Federal Reserve released the hypothetical scenarios for the 2021 run of its stress tests, under which lenders will have to prove that they can withstand a 55% crash in the equity prices and a 4% GDP fall from the fourth quarter of 2020 through the third quarter of 2022 under the "severely adverse" scenario.

* Progressive Corp. has agreed to acquire all of the outstanding class A and class B common shares of Protective Insurance Corporation for $23.30 per share in cash for a total transaction value of about $338 million. Progressive will fund the purchase through liquid investments on hand. The acquisition is expected to close prior to the end of the third quarter, subject to customary closing conditions, including receipt of certain required regulatory approvals and approval of Protective's class A shareholders.

Click here for more of the day's essential bank and financial services news in the U.S. and Canada, and here for more of the day's global insurance news.

EUROPE

* The Italian government allowed Crédit Agricole SA to proceed with its €737 million takeover bid for Credito Valtellinese SpA, marking a step closer to the latest consolidation in the country's banking sector. Crédit Agricole Group unit Crédit Agricole Italia SpA said the Italian government cleared its takeover offer.

* Austria's Raiffeisen Bank International AG will acquire Czech Republic-based foreign-currency and payment services provider Akcenta CZ a.s. for an undisclosed sum.

Click here for more of the day's essential financial news in Europe.

MIDDLE EAST & AFRICA

* A group of companies led by Wise Financial Advisors of businessman Ahmed al-Sabea and Saudi investor Mostafa al-Hamidan offered to purchase 75% to 90% of Egypt-based Alexandria National Co. For Financial Investment SAE for 7.48 pounds per share, Amwal Al Ghad reported.

* Uganda's central bank maintained its central bank rate at 7%, saying economic upturn has been uneven given the measures imposed to curb the spread of COVID-19. The regulator also moved to extend for six months beginning April 1 its credit relief measures and maintain its COVID-19 liquidity assistance programs for financial institutions.

Click here for more of the day's essential financial news in the Middle East and Africa.

ASIA-PACIFIC

* The Indian government has shortlisted Bank of Maharashtra, Bank of India, Indian Overseas Bank and Central Bank of India for privatization, Reuters reported, citing two officials. Two of these lenders will be chosen for a sale in the upcoming 2021-22 financial year.

* National Australia Bank Ltd. reported unaudited cash earnings of A$1.65 billion and unaudited statutory net profit of A$1.70 billion in the first fiscal quarter. The Australian bank's cash earnings were flat year over year and grew 47% compared with the quarterly average in the second half of fiscal 2020.

Click here for more of the day's essential financial news in Asia-Pacific.

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