BANKING
Banks urged to fully implement scam protections
Consumer group Which? has said not all banks are using the full technology available to them to protect customers from phishing scams. Banks should be implementing a system called DMARC - domain-based message authentication, reporting and conformance – to prevent spoofing attacks. The system protects web addresses banks own or use and can be utilised to tell email providers how to handle the unauthorised use of their domains. But Which? found not all banks have fully implemented the system. Jenny Ross, Which? Money editor, said: “It has never been harder for people to know whether they're receiving genuine communications from their bank, or being tricked – so it is crucial that banks take every measure to protect their customers from these devastating scams."
Isa deposits hit record high but most savers lose money
Concerns have been raised after the number of people investing in cash Isas grew by 1.2m in the 2019/20 financial year, with an extra £4.8bn put into the products. According to data from HMRC, the total amount paid into Isas rose £7bn to £75bn in the year and about £1.6bn was invested into stocks and shares Isas. However, Tom Selby of AJ Bell warned: “Inflation poses one of the biggest risks to cash investors in the coming years. Anyone with a longer-term time horizon who is concerned about the impact of rising prices on their funds and happy to take some investment risk should consider putting at least some of their portfolio in stocks and shares.”
Average mortgage deal down to 28 days
Research from Moneyfacts shows that people moving house now have only 28 days to secure their preferred mortgage, amid changes to interest rates and mortgage terms. Aaron Strutt, at broker Trinity Financial, remarked: "Many of the mortgage rates are not available for as long as normal because the prices keep coming down. Some of the biggest lenders are improving their best deals a couple of times a week." He noted: "As soon as one large bank makes a price cut, the others are not normally far behind."
UK plan for financial services carve out wins support from EU states
Rishi Sunak's bid to exempt the City from G7 tax proposals has been backed by several European Union member states, the Telegraph reports, with France rumoured to be among them. Joe Biden is not expected to support the move, however. Tom Clougherty, head of tax at the Centre for Policy Studies, said a carve-out over financial services showed the tax deal was far from clear cut.
PRIVATE EQUITY
Lenders want proof of private equity’s intentions
With ESG-linked loan issuance hit $87bn during the first quarter, triple the amount over the same period last year, lenders are growing wary about relying on the word of borrowers that they are meeting ESG targets. Now, three industry associations that represent underwriters, law firms and asset managers in Europe, the United States and Asia revised their sustainability-linked loan principles requiring borrowers to obtain independent, external verification of their performance against the targets.
Away Resorts targeted by CVC
Private equity firm CVC Capital Partners could announce a £250m takeover of British holiday park operator Away Resorts as soon as this week, Sky News has learnt. If the negotiations are successfully concluded, CVC is expected to examine bids for rival operators Park Holidays and Verdant Leisure in the coming months.
INTERNATIONAL
Brussels demands Germany recognise supremacy of EU law
The European Commission has retaliated after Germany’s constitutional court ruled that the European Court of Justice had overstepped its powers by backing the European Central Bank’s quantitative easing and bond-buying last May. Brussels has now started infringement proceedings against Germany demanding case law is changed to recognise the primacy of the ECJ.
BBVA jobs cuts confirmed
Some 2,935 BBVA employees in Spain are to be laid off, representing about 12% of the firm's banking workforce in its home market. The bank has revised an initial plan to close 530 branches down to 480. This comes after Caixabank and unions representing its workers decided to prolong their negotiations regarding around 7,600 job cuts.
China tells banks, insurers to prepare 'living wills'
China's Banking and Insurance Regulatory Commission (CBIRC) has asked large banks and insurers to prepare recovery plans - commonly known as "living wills" - to reduce the risk of them needing bailouts in the event they run into trouble.
US financial regulator warns against strict cryptocurrency rules
Hester Peirce of the US Securities and Exchange Commission has cautioned that attempts to regulate cryptocurrencies more strictly could discourage investors.
MONETA shareholders urged to vote against deal
Glass Lewis and Institutional Shareholder Services have recommended MONETA Money Bank shareholders vote against a plan to buy investment group PPF's Czech and Slovak lending assets, saying the price may be too high.
AUTOMOTIVE
EV maker may run out of cash before first car is sold
Lordstown Motors, an electric vehicle maker backed by General Motors, warned in a filing to US regulators on Tuesday that it might not survive the next twelve months. The company went public via a Spac last August and was worth more than $5bn as recently as February but now says it does not have the funds to bring its flagship product, the Endurance electric pick-up truck, to market.
VW claws back €270m from insurers over Dieselgate
Some €270m will be paid by insurers to Volkswagen for the damage the company suffered from the actions or inaction of senior executives during the diesel-emissions scandal.
AVIATION
Flying taxi firm in $2bn merger talks
A company developing an aircraft whose tilting propellers enable it to take off and land like a helicopter is is close to agreeing to be taken over by New York listed blank cheque company Broadstone Acquisition Corp in a deal valuing it at almost $2bn. Bristol-based Vertical Aerospace says its futuristic looking VA-X4 will carry four passengers plus a pilot, move near-silently at more than 200mph and be powered entirely by electric batteries.
Carriers probed over Covid refunds
The Competition and Markets Authority is investigating British Airways and Ryanair, warning that the airlines should have issued refunds for trips cancelled when planes were grounded due to coronavirus measures. The watchdog stated: “The CMA is concerned that, by failing to offer people their money back, both firms may have breached consumer law and left people unfairly out of pocket."
Rolls-Royce names first female chair
Anita Frew has been named the next chair of Rolls-Royce, to succeed Sir Ian Davis in October. Sir Kevin Smith, Rolls-Royce senior independent director, said Frew would bring a “wealth of experience from two decades of board appointments both in the UK and internationally and her skills, and reputation with investors and government institutions will be invaluable to the group.”
FINANCIAL SERVICES
LME scraps plan to close Ring
The London Metal Exchange has bent to lobbying from dealers and dropped plans to close its historic Ring trading floor permanently. The Ring is Europe’s only remaining open outcry market and is used to set prices for industrial metals. It has been shut since March last year because of COVID-19, forcing the exchange to move to electronic trading. It will now reopen in September with official prices, which are fixed each day at lunchtime, to be set through open outcry while closing prices will be fixed at the end of the day using electronic trading.
CMC Markets to launch new investment platform
CMC Markets is to launch a new wealth platform to take on the likes of Hargreaves Lansdown, AJ Bell and Interactive Investor. The plan is set to be announced alongside CMC's full-year results on Thursday. The online trading firm will offer access to self-invested personal pensions, ISAs and third-party funds and looks set to be branded CMC Wealth.
Pensions industry welcomes climate legislation 'milestone'
The pensions industry has welcomed the Government’s decision to push forward with climate reporting and assessment legislation, branding it a “major milestone.”
HEALTHCARE
Datavant and Ciox Health to combine to form health data behemoth
- healthcare data giants Datavant and Ciox Health have agreed to merge in a deal valued at $7bn. The combined company, which will be named Datavant, will become largest health data network in the country.
LEISURE & HOSPITALITY
Hospitality will be slowest sector to recover
The hospitality sector will need until the second quarter of 2023 to recover fully, according to the British Chambers of Commerce. This is over a year longer than the wider economy, which is expected to return to its pre-COVID-19 size by the first quarter of next year. Manufacturing, however, would recover quicker, the BCC said, returning to its pre-crisis size by the end of this year. The BCC said that the economy would expand by 6.8% this year, assuming the government sticks to its road map for reopening the economy. This is less optimistic than the Bank of England which expects growth of 7.25%.
MEDIA & ENTERTAINMENT
Guardian CEO loses power struggle with editor
The chief executive of the Guardian Media Group, Annette Thomas, will leave the at the end June following a clash with editor Katharine Viner over the publisher's finances and strategy. GMG and the Scotts Trust, the Guardian’s owners, are undergoing a governance review and insiders say it could be six months before a new CEO is in place.
REAL ESTATE
RICS: House prices will continue to rise
A monthly survey by the Royal Institution of Chartered Surveyors shows house prices in all parts of the country are expected to rise further as buyers rush to meet the deadline for the end to partial stamp duty relief. Demand continues to outstrip supply with RICS stating that the disparity between new buyer enquiries and new instructions was at its widest since November 2013.
ECONOMY
Haldane: Lifting restrictions “will be fantastic for the economy”
Andy Haldane, the Bank of England's chief economist, told LBC radio that ending Covid restrictions as planned on June 21st would be "fantastic" for growth and help businesses and workers get their "mojo" back. Mr Haldane said the full reopening would bring “very significant economic positives, psychological positives". He added: “I think that would encourage people, their confidence, boost their confidence even further than it is already.” His comments come as modelling from Imperial College shows a "risk of a substantial third wave" of infection amid reports that the Chancellor is willing to delay the next stage of reopening.He went on to say there were already "some pretty punchy pressures on prices" and it might soon be time to rein in QE. "We could start tightening the tap on that, slowing down the amount of money we're printing, and ultimately, perhaps even starting to turn that around," Haldane said.