BANKING
CYBG axes 10X deal
CYBG, the new owner of Virgin Money, has cancelled its partnership with technology firm 10X Banking, run by former Barclays chief executive Antony Jenkins. Virgin Money had hired the fintech start-up to create a digital platform for the challenger bank; however CYBG is opting to use its own inhouse “B” service. A CYBG spokesperson said: “10x Future Technologies has been a valuable partner to Virgin Money through its digital journey. However, since we first announced our proposed acquisition of Virgin Money we have been clear that we plan to use CYBG's existing B technology platform - designed for the world of Open Banking.”
Revolut reels in funding
Revolut is raising a $500m (£389m) fifth funding round from the likes of Softbank, to fuel its expansion plans. The British fintech firm is looking to launch its banking app in the US, one of the fintech markets which is deemed notoriously hard to crack. The move comes less than seven months after Revolut closed its last funding round at $250m, which valued the start-up at $1.7bn.
INTERNATIONAL
Sewing: Bank needs to be more balanced
Christian Sewing, the boss of Deutsche Bank, has said he wants to keep the German lender’s investment banking unit but that the company must be a more balanced business. He said: “My goal is to have a bank that, of course, comprises investment banking, which is a considerable value generator for our customers, but we must be more balanced.”
Germany targets Brexit bankers
Germany’s Finance Ministry is planning to poach thousands of finance jobs from London to Frankfurt after Brexit. “If insurers, if asset managers, if the entire financing ecosystem moves to Germany, then the banks won’t just think about moving several hundred jobs to Frankfurt, to Germany, but several thousands,” Deputy Finance Minister Joerg Kukies said at the Euro Finance Week conference.
Citigroup scouts bigger Paris office as Brexit plans ramp up
Citigroup is looking for a bigger office in Paris having boosted the number of trading jobs it plans to relocate to the city as a result of Brexit.
Italian banks step in to rescue struggling Carige
Banca Carige has confirmed that it will receive up to €400m from Italy’s biggest banks and private investors to meet a European Central Bank year-end deadline to boost its capital.
Europe must cut a grand bargain with Italy
David Folkerts-Landau, the chief economist at Deutsche Bank, warns an Italian debt crisis poses an existential risk to the eurozone and that the EC and Italy must co-operate over the country’s budget.
AVIATION
IAG seeks help from Spanish government
International Airlines Group, the owner of British Airways, has been seeking Spanish government support to continue its operations in the wake of a disorderly Brexit. According to reports, there are doubts that IAG can remain compliant with EU airline ownership rules. IAG has reportedly been in talks with Madrid since last month as it attempts to satisfy the EU over its status.
FINANCIAL SERVICES
Data blackout biggest Brexit threat
Financial experts have warned that data for the City of London and financial centres across the EU could be at risk if an agreement on data protection is not secured as part of Brexit negotiations. The experts suggested that a “deeply concerning” lack of attention has been paid to the implications for the City from a data shutdown. They added that there was a dangerous assumption that GDPR would be sufficient to clinch a deal.
Aberdeen Standard focuses commitment to Asia small firms
Aberdeen Standard has restructured its £486m Asian Smaller Companies Trust and appointed Hugh Young as the fund manager of the renamed Aberdeen Standard Asia Focus. “The fundamental attractions of investing in Asia Pacific remain strong, with the region accounting for nearly two-thirds of global growth,” Nigel Cayzer, chairman of Aberdeen Standard Asia Focus, commented.
HEALTHCARE
Elliott and Veritas team up to buy Athenahealth for $5.7bn
Veritas Capital and hedge fund Elliott Management are buying Athenahealth for $5.7bn, according to the FT.
Advisers set for Takeda windfall
Banks, law firms and other advisers stand to earn up to £749m in fees from Takeda Pharmaceutical's $62bn takeover of Shire.
LEISURE AND HOSPITALITY
Restaurant Group plans £315m rights issue to fund Wagamama deal
The Restaurant Group has launched a discounted rights issue to raise £315m to help fund its acquisition of the Wagamama chain.
Diageo sells non-core drinks portfolio to focus on premium spirits
Diageo is selling a portfolio of non-core brands, including Seagrams Canadian whisky and Goldschlager schnapps, to US-based Sazerac in a deal worth $550m.
MEDIA AND ENTERTAINMENT
EU copyright laws are threatening creativity, says YouTube CEO
Susan Wojcicki, the CEO of YouTube, has said new copyright rules proposed by the EU will harm the creative industries and place an impossible burden on open platforms. In an interview with the FT, Ms Wojcicki said the complexity of rights issues connected with video uploads would mean companies would be unable to take on the risk of breaching the law and would therefore be forced to block content to avoid liability.
Johnston Press shares soar following takeover speculation
Shares in Johnston Press rose by more than 17% yesterday following reports that Daily Mail and General Trust, the owner of the Daily Mail, was preparing to bid for its national flagship, the i newspaper.
REAL ESTATE
Private equity firms hunting for London offices
According to research there is currently 204,000 sq ft of requirements for new space in London from private equity firms. Private equity firm Novalpina has just confirmed that it is expanding its London headquarters, taking a 10-year lease at the new Buckingham Green offices development between Victoria and St James’s.
ECONOMY
UK debt set to hit £6.7trn
New research indicates that Britain’s total debt will rise from £5.1trn last year to £6.7trn by 2023, with the proportion of household debt increasing from £1.9trn to £2.6trn over the period. Debt as a proportion of GDP is set to rise from 252% last year to 259% in 2023, almost as high as during the financial crisis. The rise in household debt is said to be driven by an increase in student loan debt and car finance deals.
Bank of England predicts no-deal will be avoided
The Bank of England’s deputy governor Ben Broadbent has suggested that a deal remains the most likely Brexit outcome, despite the ongoing uncertainty around the negotiations. In the event of a positive Brexit deal, he predicted businesses would begin to invest more after relatively weak spending since the referendum. He explained: “If we get a good deal, a good transition, I think we can expect to see investment spending pick up, domestic demand growth pick up. On the other hand, sterling presumably would also be stronger, and those act in different directions on inflation.”
OTHER
Adoboli faces possible deportation
Kweku Adoboli, the former UBS trader who was jailed for fraud, has been arrested in Scotland and could be deported to Ghana in the coming days. Adoboli lost his most recent legal challenge when he sought permission in the immigration court for a judicial review of the refusal of his latest application to remain in the UK.