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☆ Britain's Metro Bank returned to profit in September, sees no customer stress
▼ + stars: | 2022-11-02 | by ( ) www.reuters.com time to read: 1 min

LONDON, Nov 2 (Reuters) - Metro Bank said on Wednesday it returned to profit in September by keeping a tight rein on costs and has so far seen no sign of increased stress among its customers as Britain grapples with higher interest rates and an escalating cost of living crisis. The bank set aside a 10 million pound ($11.49 million) provision in case of losses on loans, and it expects its net interest margin to continue to increase through 2023 as interest rates climb. "There has been no deterioration in early warning indicators and no signs of stress or increased delinquency across the customer base," the bank said in third quarter trading update. ($1 = 0.8703 pounds)Reporting by Huw Jones, editing by Sinead CruiseOur Standards: The Thomson Reuters Trust Principles.

☆ Ithaca Energy breathes life into UK stock market as bookrunners eye $3.6 bln listing
▼ + stars: | 2022-11-02 | by ( ) www.reuters.com time to read: +1 min

LONDON, Nov 2 (Reuters) - Ithaca Energy's (IPO-IHEG.L) London listing will be priced at 250 to 310 pence, giving the North Sea oil and gas producer an implied market value of 2.5 billion to 3.1 billion pounds ($2.87 billion to $3.56 billion), bookrunners said on Wednesday. Ithaca, owned by Tel Aviv-listed Delek Group (DLEKG.TA), expects to be eligible for inclusion in the FTSE UK indices. The bookrunners said the listing is expected to have a free float of at least 10%, with the first day of trading on November 9. Goldman Sachs (GS.N) and Morgan Stanley are joint global co-ordinators on the deal while HSBC (HSBA.L), Jefferies (JEF.N) and Bank of America (BAC.N) are joint bookrunners, with ING (INGA.AS) acting as co-lead manager. ($1 = 0.8702 pounds)Reporting by Huw Jones and Sinead Cruise; editing by Jason Neely and Louise HeavensOur Standards: The Thomson Reuters Trust Principles.

☆ Frankfurt steps up efforts to shift euro clearing from London
▼ + stars: | 2022-11-01 | by ( Huw Jones | ) www.reuters.com time to read: +3 min

LONDON, Nov 1 (Reuters) - Deutsche Boerse's (DB1Gn.DE) derivatives division stepped up efforts on Tuesday to attract a bigger slice of multi-trillion euro derivatives clearing from London to its base in Frankfurt ahead of anticipated European Union legislation. More than 600 clearing members and buy-side clients have been signed up by Eurex Clearing for swaps clearing, but many of the accounts are inactive. LSEG has repeatedly said there has been no material shift in volumes from London to Frankfurt, and some 75% of euro interest rate swaps are traded among non-EU counterparts in any case. Banks say privately that mandating a shift in euro clearing would hit EU banks most as they benefit from LCH's multi-currency pool, while Eurex focuses on the euro. Global banks say they can also shift clearing to U.S. clearers which have open ended permission from Brussels to serve customers in the EU.

☆ Senate Republicans want the SEC to explain why staff are quitting
▼ + stars: | 2022-10-30 | by ( Nell Mackenzie | ) www.reuters.com time to read: +2 min

Oct 30 (Reuters) - Senate Republicans want the SEC to explain why staff are leaving the nation's corporate watchdog at the highest rate in 10 years amid a flurry of proposed rules, according to a letter seen by Reuters on Sunday. Republicans want Gensler to explain how he will address the concerns in the report and also to allow more time for industry feedback on the new rules. Employees interviewed for the internal watchdog report said they received little feedback on rules they had written, according to the report. The SEC is losing employees at its highest pace in 10 years, said the Inspector General's report. Senate Republicans Thom Tillis from North Carolina, Mike Crapo from Idaho, Tim Scott from South Carolina, Michael Rounds from South Dakota, Bill Hagerty from Tennessee and Steve Daines from Montana signed the letter.

☆ Denmark's central bank raises key rate to highest level in 13 years
▼ + stars: | 2022-10-27 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

COPENHAGEN, Oct 27 (Reuters) - Denmark's central bank raised its key interest rate by 0.60 percentage points to 1.25% on Thursday to its highest level in thirteen years, following a rate hike earlier in the day by the European Central Bank. "The interest rate increase is a consequence of the increase by the European Central Bank of its main monetary policy rate," the central bank said in a statement. Denmark's move puts its main interest rate at its highest level since August 2009. Normally, the central bank follows the ECB's rate moves, but this time it raised rates less, Danske Bank chief economist Las Olsen said in a note. "This time they have chosen a slightly smaller interest rate increase because they actually want a slightly weaker crown," Olsen added.

☆ Libor demise and Brexit reshape derivatives market, says BIS
▼ + stars: | 2022-10-27 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

"The most significant factor contributing to the decline in turnover is the continuing shift away from Libor for major currencies," the BIS said in its latest triennial snapshot of the global OTC interest rate derivatives market. Banks and their clients use interest rate swaps to insure themselves against unexpected moves in borrowing costs. Replacing Libor shrank turnover in forward rate agreements or FRAs, a type of derivatives contract, with turnover in dollar FRAs tumbling by 98%. BIS OTC Derivatives Graphic 1Sales desks in Britain recorded the highest turnover of interest rate derivatives, at $2.6 trillion, or 46% of global 'net-gross' turnover, down from 51% in 2019. BIS OTC Derivatives Graphic 2Reporting by Huw Jones; Editing by Toby ChopraOur Standards: The Thomson Reuters Trust Principles.

☆ Britain proposes regulation of all cryptoassets
▼ + stars: | 2022-10-27 | by ( ) www.reuters.com time to read: +1 min

LONDON, Oct 27 (Reuters) - Britain would have the power to regulate all cryptoassets under a proposal the UK financial services minister has added to a draft law before parliament that will almost certainly pass. Andrew Griffith, re-appointed as City Minister on Thursday by Britain's new Prime Minister Rishi Sunak, put forth the amendment to the financial services and markets bill, which parliament has begun approving. The bill, as originally drafted, gives the Financial Conduct Authority powers to regulate stablecoins only, but the amendment broadens the remit to cover promotions for all cryptoassets. "This new clause amends the Financial Services and Markets Act 2000 to clarify that the powers relating to financial promotion and regulated activities can be relied on to regulate cryptoassets and activities relating to cryptoassets," the amendment says in a parliamentary document dated Thursday. It would put Britain more on par with the European Union's markets in cryptoassets law which is now being finalised, seen as the world's first comprehensive set of rules to regulate the emerging crypto sector.

☆ Turning City of London into the 'Wild West' would be self-defeating, says BoE's Woods
▼ + stars: | 2022-10-27 | by ( Huw Jones | ) www.reuters.com time to read: +3 min

LONDON, Oct 27 (Reuters) - Turning the City - London's financial district - into a "Wild West" to attract more business after Brexit would be self-defeating as maintaining financial stability is key to competitiveness, Bank of England Deputy Governor Sam Woods said on Thursday. Woods said in a speech to be delivered to the annual City Dinner that financial stability is the single most important ingredient of competitiveness in the sector. "Any attempt to become a global financial centre by competitively de-regulating would be self-defeating by its nature: major international financial institutions want a safe harbour, not a Wild West." Woods has clashed with an insurance industry that wants him to go further in easing capital rules to help it invest in infrastructure. A "comprehensive" public consultation paper on introducing the final leg of global bank capital rules, known as Basel 3.1, will be published by the end of the year, he added.

☆ Bank instant payment shift to help business and consumers, says EU
▼ + stars: | 2022-10-26 | by ( Huw Jones | ) www.reuters.com time to read: +3 min

European Commissioner Mairead McGuinness proposed a draft EU law that will require banks across the 27-country union to offer and receive "instant payment" (IP) services for a fee that is the same or lower than they charge for traditional credit transfers. Currently, some banks charge far more for an IP transfer, up to 30 euros ($30) in some cases, compared with traditional transfers. "We want to extend euro instant payments internationally at a later stage," European Commission executive vice president Valdis Dombrovskis told reporters. "By mandating instant payments, the biggest blockers to open banking payments becoming mainstream are instantly solved," said Tom Greenwood, CEO of instant payments gateway Volt. Currently, non-bank payment firms are excluded as they don't have direct access to payment systems, but Brussels plans to revise its rules to allow them to compete alongside banks in IP payments, an EU source said.

☆ 'Seismic shift' in bank payments to help business and consumers, says EU
▼ + stars: | 2022-10-26 | by ( Huw Jones | ) www.reuters.com time to read: +3 min

LONDON, Oct 26 (Reuters) - Forcing banks across the European Union to offer instant payments in euros is a "seismic" shift to make the economy more efficient and reap savings for businesses and customers, the bloc's financial services chief said on Wednesday. "By mandating instant payments, the biggest blockers to open banking payments becoming mainstream are instantly solved," said Tom Greenwood, CEO of instant payments gateway Volt. IP allows people to receive and make instant payments 24/7, critical if payday falls on a weekend, and for businesses to manage their cash flows by receiving funds instantly after a sale. Banks will have to screen daily their IP customers against the most updated EU sanctions list, which has expanded since Russia's invasion of Ukraine. Currently, non-bank payment firms are excluded as they don't have direct access to payment systems, but Brussels plans to revise its rules to allow them to compete alongside banks in IP payments, an EU source said.

☆ Delayed, not denied
▼ + stars: | 2022-10-25 | by ( ) www.reuters.com time to read: +2 min

Markets have welcomed Sunak's appointment, with sterling creeping towards a one-month high and gilts rallying on the news. Register now for FREE unlimited access to Reuters.com RegisterMeanwhile, the did-they-or-didn't-they question around yen intervention continues. The beaten-down currency traded at 148.81 per dollar following two consecutive days of suspected Bank of Japan intervention straddling the weekend. Japanese Finance Minister Shunichi Suzuki insists the two policy objectives - monetary easing to get wage growth up and intervention to defend the yen - are not contradictory. ($1 = 0.8853 pounds)Register now for FREE unlimited access to Reuters.com RegisterReporting by Ankur Banerjee; Editing by Edmund KlamannOur Standards: The Thomson Reuters Trust Principles.

☆ EU to propose banks offer mandatory 'instant payments' in euros
▼ + stars: | 2022-10-25 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

LONDON, Oct 25 (Reuters) - Banks in the euro zone would be required to provide 'instant payments' in the single currency 24/7 under draft European Union rules seen by Reuters. The draft sets out a mandatory deadline for PSPs to receive instant payments in euros in the euro area six months after the new rules come into force. They would have to be able to send euro denominated instant payments within a year. Banks outside the euro area would have longer to comply. A cross-border euro IP should be priced at the same or a lower level than a corresponding regular cross-border euro credit transfer, the draft law proposes.

☆ Morning Bid: Delayed, not denied
▼ + stars: | 2022-10-25 | by ( ) www.reuters.com time to read: +2 min

☆ UK financial watchdog proposes rules to stamp out 'greenwashing'
▼ + stars: | 2022-10-25 | by ( Huw Jones | ) www.reuters.com time to read: +3 min

Trillions of dollars have flowed globally into investments touting their environmental, social and governance (ESG) credentials, but rules on what constitutes ESG are patchy. The market for UK-listed responsible investment funds grew 64% in 2021 to reach 79 billion pounds ($89.34 billion), the Financial Conduct Authority said. "Greenwashing misleads consumers and erodes trust in all ESG products," said Sacha Sadan, director of environment, social and governance at the FCA. "This places the UK at the forefront of sustainable investment internationally." It said it was stepping up checks on sustainable products and enhancing enforcement.

☆ Tech tonic and Sunak salve
▼ + stars: | 2022-10-25 | by ( ) www.reuters.com time to read: +5 min

A massive week for top technology firms worldwide pits U.S. mega cap earnings against the withering slide in China tech shares amid domestic political and economic fears. read moreBut the decimation of Chinese tech stocks (.HSTECH) this week was more worrying. read moreU.S.-listed shares of Chinese companies such as Pinduoduo (PDD.O), JD.com and Baidu Inc plunged between 12% and 25% in New York on Monday. read moreHSBC's shares fell almost 7% in London, meantime, as investors digested a sudden management change and rising bad loan charges. As investors awaited the European Central Bank's latest interest rate rise on Thursday, German business readings were above forecast for October.

"Policy stability is absolutely critical," Miles Celic, chief executive of finance lobby group TheCityUK told Reuters. Finance chiefs want Sunak to balance spending on infrastructure with easing immigration policy for skilled workers and investing in education, Celic added. Sunak confirmed on Tuesday that he was keeping Hunt as his finance minister, after he was appointed late in Truss' brief premiership to shore up confidence in Britain's finances - and tear up much of her planned tax-cutting agenda. Britain's 164 billion pound ($185 billion) financial industry was largely locked out of directly serving EU customers after Brexit. Any moves to extract more tax from banks are likely to be met with industry opposition.

☆ EU proposes matching UK move to boost 'dark' share trading, documents show
▼ + stars: | 2022-10-21 | by ( Huw Jones | ) www.reuters.com time to read: +3 min

REUTERS/Alex GrimmLONDON, Oct 21 (Reuters) - A curb on "dark" or off-exchange trading of shares in the European Union should be completely removed to compete better with Britain, EU documents seen by Reuters showed on Friday. The documents set out the latest compromises among EU states on reforming the bloc's "MiFID" securities law to catch up with advances in trading technology and practices in markets. Dark trading currently is subject to two types of caps on volumes, and the European Commission has proposed removing one of them. The Czech Presidency of the EU is proposing the complete removal of the double volume cap, EU documents for meetings next week show. "This will allow for a dynamic and nimble approach, allowing price formation, sufficient transparency and leeway to react to situations within the EU (or in the UK)," the documents said.

☆ U.S. stocks turn red as investors eye prolonged Fed hawkishness
▼ + stars: | 2022-10-20 | by ( Stephen Culp | ) www.reuters.com time to read: +4 min

Harker's comments also helped support the 10-year Treasury yield's march past 14-year highs. "Harper’s comments provided further confirmation that the Fed is all in on continued aggressive policy and future (interest) rate increases." The pan-European STOXX 600 index (.STOXX) rose 0.26% and MSCI's gauge of stocks across the globe (.MIWD00000PUS) shed 0.55%. Benchmark Treasury yields resumed their rise after economic data appeared to confirm the Fed is unlikely to relent in its aggressive campaign to rein in inflation. The Japanese yen weakened 0.10% to 150.05 per dollar, while Sterling was last trading at $1.1229, up 0.13% on the day.

☆ Wall St jumps, Treasury yields climb on Truss resignation, solid earnings
▼ + stars: | 2022-10-20 | by ( Stephen Culp | ) www.reuters.com time to read: +4 min

All three major U.S. stock indexes overcame initial indecision to surge into positive territory, and 10-year Treasury yields continued to march past 14-year highs. European stocks whipsawed after Truss said she would leave 10 Downing Street, but were last showing solid gains. Emerging market stocks rose 0.03%. Benchmark Treasury yields resumed their rise after economic data appeared to confirm the Fed is unlikely to relent in its aggressive campaign to rein in inflation. The dollar index fell 0.64%, with the euro up 0.48% to $0.9818.

☆ Stocks sag, bond yields firm as yen sinks further
▼ + stars: | 2022-10-20 | by ( Huw Jones | ) www.reuters.com time to read: +5 min

The strong dollar continued to loom over currency markets, with the yen sinking to a 32-year low against the greenback. U.S. 10-year Treasury yields touched a 14-year high, while 2-year German government bond yields rose to their highest since December 2008. But earnings are likely to fall next year which, along with anticipated interest rate hikes in the United States and elsewhere, are already largely priced into markets, Osman said. China's stock market (.SSEC) fell while Hong Kong stocks (.HSI) hit levels last seen during the 2008-09 global financial crisis. The rise in the dollar and yields pushed gold lower, with prices lingering at a three-week trough on Thursday.

☆ Most British adults struggle with bills, watchdog says
▼ + stars: | 2022-10-20 | by ( ) www.reuters.com time to read: +1 min

LONDON, Oct 21 (Reuters) - Nearly 32 million people, or 60% of all UK adults, are finding it a heavy burden or somewhat of a burden to pay their bills as a cost of living crisis bites, a watchdog said on Friday. "One in four UK adults are in financial difficulty or could quickly find themselves in difficulty if they suffered a financial shock," the watchdog said in a statement. The survey found that 27% of Black people said they found it a heavy burden to keep up with bills, compared with 15% of all UK adults. The watchdog said it has already begun reminding banks about how to support customers in financial difficulty, who should contact providers in the first instance to discuss options. Register now for FREE unlimited access to Reuters.com RegisterReporting by Huw Jones; Editing by Andrew CawthorneOur Standards: The Thomson Reuters Trust Principles.

☆ Banks, Big Tech seek clearer guidance on combating scams
▼ + stars: | 2022-10-20 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

Banks have already improved defences against scams, but a report from industry body Stop Scams UK and the Royal United Services Institute on Thursday said complex guidelines and processes around privacy law make it difficult for companies to share data to stop fraud. Banks hope the bill will include clearer guidance on allowing them to share anonymised customer data - or data that does not identify the individual if refers to - to spot new types of scams more quickly. "If we are to unlock data sharing at scale, we call for proportionate and sensible changes to guidance around the interpretation of privacy law," said Ruth Evans, chair of Stop Scams UK, whose members include HSBC, Lloyds, NatWest, Barclays, TalkTalk, Meta and Google. Last month, more banks jointed Stop Scams UK's fraud-reporting hotline as the cost of living crisis is leading to an increase in the number of financial scams. However, banks demanding more certainty over sharing anonymised data face opposition from privacy groups.

☆ Bank of England and City square off over new government powers
▼ + stars: | 2022-10-19 | by ( Huw Jones | ) www.reuters.com time to read: +3 min

A general view of the Bank of England (BoE) building in London, Britain, August 4, 2022. While Britain remains Europe's biggest financial sector after its exit from the European Union, banks are keen for regulators to help boost the City's global competitiveness. Britain's finance ministry will use a financial services and markets bill now before parliament to give itself powers to intervene in financial rulemaking, when in the public interest. David Postings, chief executive of UK Finance, a banking lobby, said powers to override regulators should be tightly drawn and used sparingly. A source at the ministry confirmed this was still the plan under new finance minister Jeremy Hunt.

This year there's an added twist: the Swiss franc basis has blown out to levels not seen for years. Register now for FREE unlimited access to Reuters.com RegisterThis seems unusual because the Swiss franc is considered one of the safest, strongest and most stable assets. Even though Swiss franc cross-currency basis does move in times of market stress, it usually does so less than its peers. The Swiss franc basis stands out - it is notably wider than the others, and significantly wider than it usually is. Goldman Sachs' Swiss financial conditions index rose to an 11-year high above 107 bps late last month, up more than 300 bps so far this year.

☆ UK cliff edge arrives as Bank of England prepares to end its emergency bond buying
▼ + stars: | 2022-10-14 | by ( Elliot Smith | ) www.cnbc.com time to read: +5 min

The Bank's Financial Stability Committee on Sep. 28 announced a two-week emergency purchase program for long-dated U.K. government bonds. Bloomberg | Bloomberg | Getty ImagesLONDON — The Bank of England's emergency bond-buying program draws to a close on Friday, with traders remaining on edge as volatility in the U.K. bond market looks set to continue. The central bank initially announced the two-week intervention in the long-dated bond market on Sep. 28, having been informed that a number of liability driven investment (LDI) funds — held by pension plans — were hours from collapse as U.K. government bond prices plunged. The BOE's Pill also highlighted that recent actions taken to ensure orderly market function and financial stability sought to preserve the effectiveness of monetary policy, but should not be considered monetary policy actions in themselves. Chris Lupoli, U.K. rates and inflation strategist at BNP Paribas , told CNBC Thursday that the Bank of England remained focused on the temporary purchases serving as a "backstop."

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