BANKING
UK lender CYBG garners approval to cut capital requirements
CYBG has received IRB accreditation for both its Mortgage and SME/Corporate portfolios from the PRA. CEO David Duffy remarked: "I am delighted the PRA has approved CYBG's applications for IRB accreditation across our Mortgage and SME/Corporate portfolios in what is an incredibly important milestone for the group. It reinforces our capital efficiency as we cement our position as a true national banking competitor with a full-service offering to millions of retail and SME customers across the country.” Challenger rivals Metro Bank, OneSavings and Charter Court are also seeking similar approval.
RBS ups savings rate
Goldman Sachs' entrance to the UK market has prompted Royal Bank of Scotland (RBS) to up its instant access savings rate to 1.5% on balances up to £10,000. For wealthier savers, RBS will offer a rate of 0.85% on balances between £50,000 and £100,000. Andrew Hagger of personal finance website Moneycomms.co.uk commented: "It's refreshing to see this type of savings account not just restricted to online applications.”
Goldman opens first UK office outside capital
Goldman Sachs is to open its first office in the UK outside London with a call centre housing 150 staff to open next summer in Milton Keynes. The staff base for its new savings brand Marcus will double.
Reduction in banks' appetite for mortgage risk
The third quarter saw banks become more cautious in mortgage lending, according to a survey of credit conditions produced by the Bank of England. With corporate credit supply remaining flat overall and increasing for small businesses, lenders were found to be less cautious about lending to firms. Despite this, the fourth quarter is expected to see banks lend slightly less to businesses.
Flint expected to become Standard Life Aberdeen chairman
Standard Life Aberdeen is expected to announce shortly the appointment of Douglas Flint, who stepped down from HSBC in September 2017, as chairman.
PRIVATE EQUITY
Payout for LDC staff
Staff at LDC could share £100m after an agreement was reached between Lloyds' private equity arm and rival Blackstone over the sale of Birmingham's NEC for £800m.
Rapha to sell on Wiggle
London-based cycling gear maker Rapha is to sell its range of clothing and accessories on online sports retailer Wiggle, owned by private equity firm Bridgepoint.
Glanbia buys Slimfast for $350m
Glanbia, an Irish nutrition firm, has bought diet milkshake brand Slimfast for $350m (£264.9m) from US private equity firm Kainos.
INTERNATIONAL
HSBC hires Wall St veteran
HSBC has hired former JPMorgan Chase executive Greg Guyett as co-head of its investment bank as it seeks to improve performance at the division. He is to work alongside existing co-head Robin Phillips.
UBS request to drop money laundering charge denied
A French court has thrown out a request by UBS for money-laundering charges to be dropped and proceedings limited to complicity in tax fraud. The court however said the lender's arguments were "devoid of seriousness".
Australian banks promise to improve
Commonwealth Bank of Australia and Westpac have promised to prevent a repetition of the misconduct that came to light during an investigation into the sector.
South African bank scandal for KPMG
A report on a corruption scandal at South African mutual lender VBS has led to KPMG coming under fresh attack from politicians and campaigners.
AVIATION
Airlines' revenue-sharing partnership probed
An investigation into the Atlantic Joint Business Agreement revenue-sharing partnership on transatlantic flights is underway, the Competition and Markets Authority has confirmed. British Airways, American Airlines, Iberia and Finnair all split revenue on passenger routes between Europe and the US.
FINANCIAL SERVICES
Mass credit rating downgrades may result from disorderly Brexit
Rating agency Standard & Poor’s has warned of the possibility of mass credit rating downgrades should Britain leave the EU without a deal in place. It said that should a no-deal Brexit occur, “UK banks are the most vulnerable” to results which could include “a domestic political crisis and the economy contracting, leaving the property market vulnerable”. Giles Edwards, a credit analyst at S&P, commented: “Amid political uncertainty, financial institutions have had to plan for a disorderly outcome in March 2019 and with less than six months to go, they are executing those plans”.
Ingenico payments deal for Natixis
Natixis is considering a €4bn-plus deal with financial technology group Ingenico as it seeks to grow its influence in the payments sector.
Hargreaves Lansdown warns of ‘industry-wide slowdown’
Hargreaves Lansdown has blamed market uncertainty and weak sentiment for an industry-wide slowdown, resulting in a 13% drop in net new business from last year, to £1.3bn last quarter.
CISI appoints chairman
City executive Michael Cole-Fontayn has been appointed chairman of investment banking trade group the Chartered Institute for Securities & Investment.
Third quarter brings £1.4bn in funding for UK startups
Despite Brexit-related worries, startups in the UK drew some £1.4bn from venture capital firms in the third quarter.
Japanese groups prepare to leave UK ahead of Brexit
Assuming that a pre-Brexit temporary tax amnesty on cross-border mergers between Britain and other EU countries will apply, Japanese firms are preparing to move businesses out of Britain.
Damages claim against Nikko Asset Management chief
Nikko Asset Management and chief executive Takumi Shibata have been accused by seven former executives of altering an incentive plan to benefit him.
MEDIA & ENTERTAINMENT
Age verification scheme for social media mooted
The government is considering plans for an age verification system to prevent underage children from accessing social media sites. Officials will monitor the impact of a similar scheme being rolled out in January that will need anyone accessing pornography websites to prove they are over 18 via third party firms. A decision on extending the scheme to Facebook, Instagram, Snapchat and other such sites will be made next year after its impact is reviewed by the British Board of Film Classification and ministers.
Asset deal for Dialog and Apple
Apple is to pay $300m in cash to license power management technologies, purchase assets including lab equipment and patents, and acquire 16% of Dialog Semiconductor’s workforce.
Johnston Press for sale
The Scotsman-owner Johnston Press has put itself up for sale to help tackle its £220m debt. Johnston posted a 10% year-on-year decline in revenues for the six months to the end of June, to £93m, while pre-tax profit held at £6.2m.
REAL ESTATE
Foxtons founder's offices firm in profit
Jon Hunt, the billionaire founder of estate agent Foxtons, has seen his offices business Heven return to profit on the back of lower refurbishment costs. Heven, which owns offices developer Ocubis and has properties across London, saw pre-tax profits in 2017 hit £6m, from a £227,697 loss, while turnover rose 10% to £18.8m.
Parents expected to give £6bn to children to buy homes
With Legal & General figures showing that a quarter of property transactions depend on money from parents, some £6bn is expected to be given to children to buy homes this year.
RETAIL
WH Smith reveals restructuring
Shares in WH Smith tanked on Thursday after the retailer revealed plans to cease initiatives to revive its high street offering amid the challenging trading market. WH Smith's traditional stores weathered a 3% drop in trading profits for the year ended August 31, to £60m, and a 3% fall in like-for-like sales, knocking pre-tax profits at group level down 4% to £134m.
Coast enters administration
Coast has collapsed into administration putting 300 jobs at risk, with all 24 standalone sites to close. Concessions in department stores including Debenhams and John Lewis will continue to trade and gift vouchers will be honoured online. Karen Millen has bought the group's brand and website, a move that will see it take on over 600 Coast staff.
Ikea spin-off opens
Javier Quiñones, Ikea’s UK and Ireland country retail manager, has unveiled the Ikea Planning Studio spin-off, with the first outlet launching in central London yesterday. The new chain consists of kitchen and bedroom showrooms that offer customers one-to-one advice sessions. Mr Quiñones said the move is “part of the transformation of Ikea,” adding: “This is only the tip of the iceberg. We are looking for other city centre stores… we expect to open more like this but also other formats.”
Record profit for Uniqlo parent
Fast Retailing, Uniqlo's parent company, has recorded a record annual net profit of 154.8bn yen. The total marks a 30% increase on the year before. Uniqlo represented 80% of the retailer’s turnover, which was up 14% to 2.1trn yen.
SPORT
Fight for control of Premiership heats up
CVC Capital Partners may face competition in its bid to buy a majority stake in Premiership Rugby, with Saracens owner Nigel Wray claiming several "serious players" are in contention.
Gunners in Adidas
Adidas has agreed a £60m-a-year deal to manufacture the Arsenal kit from next season, in a deal that doubles the club's annual return. The deal places them joint-second with Chelsea as the Premier League’s second highest earner, behind Manchester United.
ECONOMY
OBR says no-deal Brexit would harm economy
The Office for Budget Responsibility has warned an "abrupt and disorderly" Brexit could have a severe short-term impact on the UK economy and public finances. The OBR said a no-deal Brexit could result in weaker economic activity and higher prices, as well as temporary constraints on the supply of some imported products and domestic goods.