UK banks could be tested for climate change resilience from next year
Bank of England Governor Mark Carney says UK bank stress tests could next year include resilience to the impact of climate change. Mr Carney said he was considering whether the risks and opportunities of climate change should be included in the tests, which explore the potential impact of a hypothetical scenario. The FT notes that the risk-based approach is one that is gaining approval in banking circles. Daniel Klier, HSBC's global head of sustainable finance, said: “I think the right way of having this discussion is saying they are prudential regulators and want to make sure financial institutions are prepared. It's less about a green-supporting or a brown-penalising factor: it's about credit risk.”
Banks warned to communicate better on Brexit
The European Banking Authority has criticised lenders for not telling customers how they might be affected by Brexit. The watchdog said it had found “little evidence of financial institutions communicating effectively to their customers on how they may be affected by the UK withdrawal”. The message echoes a similar one back in June, which also urged banks to speed up their Brexit contingency planning, calling their preparations “inadequate”.
Digital money can usher in new lending model
Writing in City AM, Phil Mochan, Chief Commercial Officer of Koine Finance, explains why he believes digital money has the potential to usher in a new banking model. He says such a model would avoid the risk of payment systems collapsing in the event of bank failures.
StanChart to spin out its private equity business
Standard Chartered expects to take a restructuring charge of about $160m as it spins out its private equity business and sells most of the unit's investment portfolio to funds managed by Intermediate Capital Group. CEO Bill Winters has been trying to split off the private equity arm for two years as part of his drive to improve performance.
Goldman Sachs charged over 1MDB fraud
The Malaysian government has filed criminal charges against Goldman Sachs and two former employees – Tim Leissner and Roger Ng - in connection with a corruption and money laundering probe at 1MDB, Malaysia’s investment fund. The US bank has been under scrutiny for its role in helping 1MDB to raise funds. Goldman said it would “vigorously defend the charges” and called them “misdirected”.
Denmark’s Saxo Bank strikes deal to buy BinckBank for €424m
Denmark’s Saxo Bank is buying Dutch lender BinckBank for an equity value of €424m in order to better compete in the online trading and investment sector.
Access Bank to buy rival Diamond to create Nigeria’s largest lender
Access Bank is acquiring Diamond Bank to create Nigeria’s biggest financial institution by both deposits and assets. The deal ends Carlyle Group’s troubled investment in Diamond Bank.
Spain’s Bankia to sell €3bn ‘toxic’ asset portfolio to private equity
Spanish lender Bankia has agreed the sale of €3.07bn in ‘toxic’ real estate assets to the private equity firm Lone Star.
Nissan board fails to appoint Ghosn replacement
Nissan has not been able to fill its chairman post following a board meeting yesterday. The position has been vacant since the arrest of Carlos Ghosn.
Wizz Air to become Luton’s largest airline
Wizz Air has said it will overtake Easyjet as Luton’s largest carrier once six new routes come into force from next summer. The six new routes will serve Bergen, Thessaloniki, Turku, Porto, Catania and Oslo, with the latter two routes coming into force in mid-September.
Boeing and Embraer approve terms of $4.2bn joint venture
Boeing and Embraer have approved the terms of a $4.2bn joint venture which will give the US aircraft maker 80% control over Embraer’s commercial aircraft and services operations.
Monarch Airlines owner puts engineering arm up for sale
Greybull Capital has put the engineering arm of Monarch Airlines up for sale. The business is the last remnant of Monarch, which collapsed last year.
European Commission to extend access to Swiss stock exchanges
The European Commission has announced that it will extend its equivalence deal with Swiss share trading venues for six months, allowing EU banks to access Swiss stock exchanges until June. The commission said the move will ensure that business and markets will be able to operate smoothly and without any disruptions when the current deals ends on December 31.
BNP appoints new head of digital marketing
BNP Paribas Asset Management has named Hilda Tingle as global head of digital marketing. She will be responsible for defining and delivering BNPP AM's global digital marketing strategy for websites, social media and digital campaigns.
LEISURE AND HOSPITALITY
Fankhauser hoovering up Thomas Cook shares
Thomas Cook boss Peter Fankhauser has bought £50,000 of company shares as the firm's share price continues to struggle. He received a modest pay rise this year, from £717,800 in 2017 to £732,100, and did not receive his annual bonus.
MEDIA AND ENTERTAINMENT
Google to open $1bn office in lower Manhattan
Google is to build a $1bn office campus in lower Manhattan as part of a significant expansion in New York. The announcement comes just weeks after Amazon unveiled a similar plan in Queens.
Property market will stagnate
The Royal Institution of Chartered Surveyors (Rics) has said house prices will stagnate in 2019 and the number of sales will fall as Brexit and affordability constraints take their toll on the property market. Rics expects house sales to fall by 5% to about 1.15m compared with this year.
Battersea power station deal finalised by Malaysian pension funds
Two Malaysian funds have finalised a deal to take a £1.6bn stake in the £9bn redevelopment of London’s Battersea power station. The sale covers the Grade II-listed building itself and the six acres of land it sits on, but not the rest of the 42-acre riverside site under development.
Asos issues profit warning over fashion discounting
Asos has warned of lower profits this financial year after "unprecedented" discounting hit its trading in November. Although sales rose 14% in the first three months of its financial year, the last month of the quarter saw “a significant deterioration” in revenue. Consequently, the online retailer says it now expects sales growth of 15% for the year to August 2019, down from a prior forecast of 20%-25%, while its anticipated earnings margin has been revised down from 4% to 2%.
CVC nears £225m deal for stake in English rugby union
CVC Capital Partners is close to agreeing a £225m deal to acquire a minority stake in Premiership Rugby.
Student loans add £12bn to government borrowing
A change in how student loans are recorded in the public finances will add £12bn to the deficit, following a ruling by the ONS. The amount expected not to be repaid, which could be 45% of lending, will be reclassified as public spending.
Poorer families facing Christmas crisis
Research by Citizens Advice suggests that poorer families could face interest and fees of £228 to afford Christmas. Those relying on payday loans, used by 1.6m, will spend an extra £715, according to the research. The Bank of England has estimated that the average festive spend is £500.
Nuisance call bosses face fines
The Information Commissioner’s Office has announced that directors of firms who cold-call consumers can now be fined up to £500,000. The new rule follows a ban on unsolicited phone calls which came into effect in September.