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Daily News Roundup: Tuesday, 15th January 2019

Posted: 15th January 2019


Lloyds' overdraft fees branded ‘unacceptable’

The chair of the Business, Energy and Industrial Strategy select committee has criticised Lloyds Banking Group for introducing new overdraft charges on Monday ahead of a proposed crackdown later this year. Labour’s Rachel Reeves described the fees - which will equate to an annual interest charge of up to 61% - as "unacceptable". The Financial Conduct Authority wants to scrap overdraft fees and replace them with a single interest rate. Lloyds Banking Group said: "The changes were announced prior to the FCA's latest recommendations."

Ex-Barclays chiefs plead not guilty

Four former Barclays executives appeared in court yesterday to deny fraud charges. Former chief executive John Varley and three colleagues are accused of fraud when the bank raised £6.1bn from Qatar during the 2008 financial crisis.

CYBG launches SME hub

CYBG has opened a new state-of-the-art SME hub and retail store in the heart of Manchester as part of the bank's expansion of its retail and SME offering across the UK.

Banks brace for next wave of digital shake-up

Despite its slow start, architects of Open Banking have claimed that 2019 will be a "big year" for customers as they prepare to extend its regulatory reach.

HSBC banks on blockchain to finesse forex trades

HSBC has revealed it has processed more than 3m FX transactions worth $250bn using blockchain technology in the past year.


Tilbian named Dowgate Capital chair

Lorna Tilbian, the former head of media at the investment bank Numis, has been appointed chair of Dowgate Capital. Dowgate, which is looking to carve out a niche as a specialist corporate broker, has already attracted clients including Sir Martin Sorrell's new venture S4 Capital and Learning Technologies Group.

Investcorp and Coller to launch $1bn buyout fund

Investcorp has joined forces with Coller Capital to create a $1bn (£778m) European private equity buyout fund. The agreement is part of Investcorp's growth strategy to reach $50bn of assets under management.


Market turmoil hits Citigroup revenues

Citigroup has blamed global market turmoil for a surprise drop in revenue. Fourth quarter revenue slipped 2% to $17.1bn (£13.3bn), falling short of analyst estimates of $17.5bn. The bank said income on its bond trading desks had slumped by a fifth following the fluctuations on financial markets in December. But chief executive Michael Corbat said the lender was making "solid progress".

Euronext launches bid for Oslo bourse

Euronext launched a $729m cash bid for Oslo Bors yesterday, just hours after the Norwegian stock market operator said it had found potential alternative bidders. Euronext already owns 5.3% of Oslo Bors, and will offer to pay shareholders who tender their shares an annualised 6% interest payment on top of the offer price once the deal has been completed.

Julius Baer puts Lacher forward as next chairman

Romeo Lacher is to be proposed by Julius Baer as non-executive chairman, with Eunice Zehnder-Lai and Olga Zoutendijk as board members, chairman Daniel Sauter has said.

US clash over EU privacy rules causes problems for European hedge funds

European hedge funds are said to be struggling to raise money from investors in America because of US concerns over EU data protection rules.

Wells Fargo: repairing a damaged brand

The FT considers whether Wells Fargo can recover its premium valuation after a series of scandals.


Toyota making new model in Derbyshire

Toyota has begun production of a new Corolla model at its plant in Derbyshire, following a £240m investment in the site. Meanwhile, Toyota's Europe boss Dr Johan van Zyl has reiterated his support for the Prime Minister's Brexit deal ahead of today’s key Commons vote.


Hermes sets up Irish base ahead of Brexit

Hermes Investment Management has established a subsidiary in Ireland as part of contingency plans against a hard Brexit. Hermes Fund Managers Ireland received authorisation from the Central Bank of Ireland in December, the firm said. Carol Mahon, former chief executive of Fidelity International's Irish life insurance arm, will join the company as head of Ireland and will be joined by head of Ireland investment Aoifinn Devitt.

ASI plugs $13m into Singapore Life

Aberdeen Standard Investments is to invest $13m (£10.1m) in digital insurance company Singapore Life. The minority equity investment will build on ASI's existing strategic relationship with the company beyond the management of its fiduciary assets.

Arden establishes new wealth management unit

Arden Partners has formed a new wealth management unit, with former Brewin Dolphin executive Henry Algeo to manage and develop the division.

Brexit spells trouble for Europe’s €660tn derivatives market

Banks are preparing for Europe to be split into two distinct capital markets after Brexit – a development which could prove challenging for EU institutions trying to use London futures markets.

Goldman invests in British cyber startup

Goldman Sachs has invested $ 6m (£4.7m) in Bristol-based startup Immersive Labs, which builds cyber war games for technology and security professionals.


Hedge fund makes hostile bid for Gannett

Newspaper owner MNG Enterprises, controlled by Alden Global Capital, has made a hostile takeover bid for Gannett, the listed parent company of publisher Newsquest. The bid values Gannett at about $1.4bn (£1.1bn), a 23% premium on its previous stock market value.

UK advertising faces no-deal Brexit recession

A no-deal Brexit could push the UK advertising sector to its first recession since 2009, according to research by Enders Analysis, which warns that ad spend in 2019 could fall 3% if the UK leaves the EU without an agreement.


PageGroup’s UK profits fall

Full-year profits in the UK division of recruiter PageGroup have fallen by 1.7% to £138m. The firm said that while it had increased its number of fee-earning staff by 561 in the first three quarters of 2018, this slowed to just 58 in the final three months of the year.


Institutional investors plot large property allocations

A survey of institutional investors and fund managers, conducted by Inrev, Anrev and Prea, indicates that more than €72.4bn of new capital will flow into real estate this year.


New Look agrees to restructuring plan

As part of a restructuring deal agreed with investors, New Look has agreed a debt-for-equity swap proposal to reduce debt from £1.35bn to £350m, alongside a new capital raise of £150m through the issuing of new bonds.


Goals Soccer Centres lowers profit expectations

Five-a-side football firm Goals Soccer Centres has warned that it is likely to miss the target on its full-year profits, attributing this to slower US growth and tight margins in food and drink and other areas. Profits are now expected to come in between £4.3m and £4.5m.

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