BNP Halts New Commodity Trade Finance Deals as It Reviews Unit

(Bloomberg) — BNP Paribas SA has suspended new commodity trade finance deals while it reviews its involvement in the business in Europe, Middle East and Africa, according to people familiar with the matter.

The French bank, one of the largest lenders to global commodity traders, has recently told clients that no new deals will be concluded unless there’s a contractual obligation, said the people, who asked not to be identified because the information isn’t public. BNP is currently reviewing options for the future of its EMEA commodity trade finance business, the people said.

The move comes after the bank took a hit from commodity trade houses facing financial stress from Dubai to the U.S., the people said. BNP’s commodity trade finance team suffered heavy losses from the bank’s exposure to companies including crop trader Phoenix Group, energy firm GP Global Group as well as coffee dealer Coex Coffee International Inc.,

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What to Look Out for

Wall Street expects a year-over-year decline in earnings on lower revenues when WhiteHorse Finance (WHF) reports results for the quarter ended June 2020. While this widely-known consensus outlook is important in gauging the company’s earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 10. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management’s discussion of business conditions on the earnings call, it’s worth handicapping the probability of a positive EPS surprise.

Zacks Consensus Estimate

This lender to small companies is expected to post quarterly earnings of $0.26 per share in its upcoming report, which

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U.K. Finance Split on Case for Extending Crisis Capital Measures

(Bloomberg) — U.K. bankers and investors are split on whether emergency measures that are making it easier for companies to raise much-needed capital during the coronavirus crisis should be extended beyond the summer.

Financial standard-setters recommended in early April that shareholders support U.K.-listed companies that want to sell as much as 20% in new stock — double the usual ceiling — to ease themselves through the pandemic.

U.K.-listed companies including Informa Plc, Compass Group Plc and Asos Plc have sold 14.4 billion pounds ($18.7 billion) in additional equity since then, according to data compiled by Bloomberg, a more than threefold increase on the same period in 2019. The 20% cap is due to expire on Sept. 30.

“Long may it continue, as it is a useful tool,” Luke Bordewich, a managing director at Numis Securities Ltd., said in a phone interview. “The increased cap on equity placings to 20% has

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