DIRS.INFO The most relevant business & tech news

☆ UK could borrow a leaf from Canada’s mortgage book
▼ + stars: | 2023-07-07 | by ( Edward Chancellor | ) www.reuters.com time to read: +6 min

The amount of mortgage debt rose even more sharply. This would require lenders to fix total monthly payments – of both interest and principal – relative to the outstanding mortgage balance. When interest rates rise sharply, as is happening now, repayments might be less than the monthly interest bill. The amount of mortgage debt outstanding would then increase as unpaid interest is added to the principal – a situation known as “negative amortisation”. Since borrowers always hand over a proportion of their income, mortgage payments wouldn’t shrink when interest rates decline.

Persons: Irving Fisher, ”, “, Neal Hudson, Michael Gove, Patrick Macaskie, Victor Dodig, Edward Chancellor, Peter Thal Larsen, Oliver Taslic Organizations: Reuters, Bank of England, Office, National Statistics, Bank of, Fiscal Studies, Canadian Imperial Bank of Commerce, CIBC, Reuters Graphics, Thomson Locations: United Kingdom, ”, Britain, England, Bank of England, United States, Canada

☆ UK bank’s 25% drop adds further investor wildcard
▼ + stars: | 2023-07-07 | by ( ) www.reuters.com time to read: +2 min

LONDON, July 7 (Reuters Breakingviews) - Being a bank investor was already hard enough in 2023. Shareholders who thought rising interest rates were a one-way bet realised otherwise when losses on long-term bonds helped sink Silicon Valley Bank. In it, OSB said it will take a roughly 170 million pound hit to revenue because customers were refinancing home loans quicker than expected. That, in turn, involves predicting how long customers will stay on higher variable-rate tariffs after their fixed-rate deals expire. Central banks’ inflation fight has changed the dynamics here, since rising rates incentivise borrowers to switch more quickly.

Persons: OSB, Liam Proud, Lisa Jucca, Oliver Taslic Organizations: Reuters, Bank, Twitter, Thomson

☆ Canary Wharf faces stiff test to reinvent itself: podcast
▼ + stars: | 2023-07-06 | by ( Aimee Donnellan | ) www.reuters.com time to read: 1 min

LONDON, July 6 (Reuters Breakingviews) - HSBC is quitting the financial hub and moving to smaller quarters. In this Viewsroom podcast, Breakingviews columnists discuss how hybrid working is an existential threat for commercial property and how Canary Wharf’s pivot to residential and retail may only be a partial salve. Listen to the podcastFollow @aimeedonnellan on TwitterSubscribe to Breakingviews’ podcasts, Viewsroom and The Exchange. Editing by Oliver TaslicOur Standards: The Thomson Reuters Trust Principles. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Oliver Taslic Organizations: Reuters, HSBC, Twitter, Thomson

☆ UK’s leaky water model faces a growing storm
▼ + stars: | 2023-07-05 | by ( Neil Unmack | ) www.reuters.com time to read: +8 min

The fallout raises two big questions: whether the regulatory regime works, and whether Britain’s water companies should still be privately owned. Average UK water bills are 448 pounds in the current year, versus 409 pounds in Scotland. One option would be to squeeze water companies – cutting allowed prices, and imposing bigger penalties on those that allow leaks. For the sector as a whole, Ofwat assumes equity comprises 45% of water companies’ 94 billion pound RCV, or 42 billion pounds. Reuters Graphics Reuters GraphicsFollow @Unmack1 on TwitterCONTEXT NEWSThames Water investors have become more “concerned” about the company’s turnaround, the chief executive of UK water regulator Ofwat David Black told a UK parliament committee on July 4.

Persons: Macquarie’s, Severn, Ofwat, Jefferies, David Black, Iain Coucher, “, Black, George Hay, Oliver Taslic Organizations: Reuters, Conservative, Thames, Ofwat, Reuters Graphics Regulators, Yorkshire Water, United Utilities, Scottish, Dwr Cymru, Barclays, Reuters Graphics Reuters, Thames Water, Water, Sky News, Thomson Locations: Severn Trent, RCV, Water, Wales, Scotland, Germany, United States, Italy, Ireland, Britain

☆ Insurers’ net-zero club looks easy to shun
▼ + stars: | 2023-07-05 | by ( ) www.reuters.com time to read: +2 min

LONDON, July 5 (Reuters Breakingviews) - Global insurers are looking to re-write the rules to salvage their net-zero club. The once 30-strong U.N.-backed Net-Zero Insurance Alliance (NZIA) unveiled ambitious decarbonisation targets in January, but now has only 12 companies left, including Italy’s Generali (GASI.MI) and Britain’s Aviva (AV.L). As a result, the club may effectively allow insurers to postpone that deadline. But the move may simply raise more questions around NZIA’s raison d’être: insurers may be better off simply publishing their own path to decarbonisation. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Italy’s, Pamela Barbaglia, Neil Unmack, Oliver Taslic Organizations: Reuters, Global, Zero Insurance, Britain’s Aviva, Allianz, AXA, Tokio, Republican, Glasgow Financial Alliance, Twitter, KKR, Thomson Locations: May, Ukraine, China

☆ Ghost of Silicon Valley Bank turns up in Italy
▼ + stars: | 2023-07-04 | by ( Lisa Jucca | ) www.reuters.com time to read: +3 min

The rapid collapse of Silicon Valley Bank earlier this year was largely down to an ill-advised bond portfolio and liabilities that were less sticky than assumed. While Italy’s Eurovita isn’t a bank, its demise has some similarities with events across the Atlantic. Eurovita, whose 2022 balance sheet was only about 15 billion euros, chiefly offered life insurance products that guaranteed policyholders’ invested capital and a fixed annual return. Follow @LJucca on TwitterCONTEXT NEWSItaly’s top four insurers and Germany’s Allianz have agreed a multibillion-euro rescue deal for ailing life insurer Eurovita, industry supervisor IVASS said on June 30. The deal also involves banks that sold the insurance products through their networks.

Persons: policyholders ’, Cinven, Intesa, redemptions, Eurovita, Marco Sesana, weren’t, IVASS, George Hay, Oliver Taslic Organizations: MILAN, Reuters, Banco, Reuters Breakingviews, Allianz, Germany’s Allianz, Thomson Locations: Silicon, Eurovita

☆ Why central banks cannot relax in inflation fight: podcast
▼ + stars: | 2023-07-04 | by ( Francesco Guerrera | ) www.reuters.com time to read: 1 min

LONDON, July 4 (Reuters Breakingviews) - Western policymakers have frantically hiked interest rates to dampen consumer prices. In this Exchange podcast, Claudio Borio, a top official at the Bank for International Settlements, argues that rate-setters need to keep going to ensure costs of living won’t stay elevated. Listen to the podcastFollow @guerreraf72 on TwitterSubscribe to Breakingviews’ podcasts, Viewsroom and The Exchange. Editing by Oliver TaslicOur Standards: The Thomson Reuters Trust Principles. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Claudio Borio, Oliver Taslic Organizations: Reuters, Bank for International, Twitter, Thomson

☆ Italy’s hottest financial saga gets new twist
▼ + stars: | 2023-07-03 | by ( ) www.reuters.com time to read: +2 min

MILAN, July 3 (Reuters Breakingviews) - Italy’s most gripping corporate soap opera has entered a new chapter. Delfin, the holding company of the family of late eyewear billionaire Leonardo Del Vecchio, won regulatory approval to raise its stake in Assicurazioni Generali (GASI.MI) above its current holding of about 10%. The saga also involved a failed attempt by a broader anti-Mediobanca coalition to replace Generali CEO Philippe Donnet last year, but seemed to quiet down after Del Vecchio passed away in June 2022. Despite the market rally, there is no sign that the Del Vecchio clan wants to increase its Generali presence right now. The family could nonetheless still increase its bet at some point in the future, but the next Generali plot twist may take time to materialise.

Persons: Delfin, Leonardo Del Vecchio, Assicurazioni, Del Vecchio, Philippe Donnet, Lisa Jucca, Liam Proud, Oliver Taslic Organizations: MILAN, Reuters, Delfin, Del, Twitter, KKR, Thomson Locations: Mediobanca, Generali, China

☆ The next revolution in monetary policy is underway
▼ + stars: | 2023-06-30 | by ( Felix Martin | ) www.reuters.com time to read: +7 min

LONDON, June 30 (Reuters Breakingviews) - Monetary policy, Milton Friedman said, acts on the economy with long and variable lags. Monetary policy regimes evolve in response to the changing nature of prevailing economic challenges – though this also takes time. The next revolution in monetary policy may be brewing. One question Gopinath did not address is how the financial system came to dominate monetary policy. When contractions hit, however, central banks eased monetary policy and governments loosened their purse strings, just as before.

Persons: Milton Friedman, Gita Gopinath, Gopinath, ’, “, Peter Thal Larsen, Pranav Kiran, Oliver Taslic Organizations: Reuters, International Monetary Fund, Bank for International, IMF, Central, SVB, Signature Bank, Credit Suisse, Fed Funds, BIS, Thomson Locations: Portuguese, Sintra, Korean, United States, Europe, Central, England, London, U.S, China, Ukraine, “

☆ UK water meltdown resurrects bank crisis dilemmas
▼ + stars: | 2023-06-29 | by ( Neil Unmack | ) www.reuters.com time to read: +7 min

The government may take over heavily indebted Thames Water, a hapless privately held utility unable to fund capital needs that may stretch to 10 billion pounds. Under Macquarie’s (MQG.AX) ownership, which lasted from 2006 to 2016, Thames’ debt rose to over 80% of RCV. They’re issued through a vehicle called Thames Water Utilities Finance. Thames Water CEO Sarah Bentley resigned abruptly on June 27. Thames shareholders, led by Ontario Municipal Employees Retirement System, committed in 2022 to provide 1.5 billion pounds of extra funds.

Persons: Ofwat, Rishi Sunak, Gordon Brown, Kemble, They’re, Sarah Bentley, “, George Hay, Oliver Taslic Organizations: Reuters, Royal Bank of Scotland, Thames, Ontario, Thames ’, Guardian, UK, RBS, Investors, Water Utilities Finance, Yorkshire Water, SES Water, Sky News, Thames Water, Thomson Locations: –, Thames, Yorkshire, Britain’s

☆ Putin’s problems are only minor boost for Ukraine: podcast
▼ + stars: | 2023-06-29 | by ( Aimee Donnellan | ) www.reuters.com time to read: 1 min

LONDON, June 29 (Reuters Breakingviews) - The Russian president restored a semblance of calm in Moscow after an aborted mutiny. In this Viewsroom podcast, Breakingviews columnists debate what this means for the country’s invasion of its neighbour. Listen to the podcastFollow @aimeedonnellan on TwitterSubscribe to Breakingviews’ podcasts, Viewsroom and The Exchange. Editing by Oliver TaslicOur Standards: The Thomson Reuters Trust Principles. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Oliver Taslic Organizations: Reuters, Twitter, Thomson Locations: Russian, Moscow

☆ EU’s digital euro plan reflects defensive crouch
▼ + stars: | 2023-06-28 | by ( ) www.reuters.com time to read: +2 min

A digital euro, he argues, is essential so that the EU does not fall “behind the curve” in global payments, private-label digital currencies and electronic versions of central bank money. Under the proposal, the European Central Bank would have control over who can use the digital euro, how it will be used internationally, and how much people can hold at one time. At the same time, the plan calls for a digital European currency to have an international role, part of efforts to shore up the euro as a global reserve currency. The EU plan calls for the digital euro to be accepted as legal tender almost everywhere, at no cost to ordinary consumers. If there is going to be a digital euro, Europe’s governments and institutions are clear that they, not the private sector, will be in charge.

Persons: Valdis Dombrovskis, Rebecca Christie, Eli Lilly, Aston Martin, George Hay, Oliver Taslic Organizations: Reuters, European Central Bank, U.S . Federal Reserve, Bank of England, EU, ECB, Twitter, Thomson Locations: BRUSSELS

☆ Hydropower IPO tests appetite for weather risks
▼ + stars: | 2023-06-28 | by ( Yawen Chen | ) www.reuters.com time to read: +4 min

LONDON, June 28 (Reuters Breakingviews) - A jumbo hydropower listing may define how investors assess extreme weather risks. Over the last decade, hydropower has been the largest source of clean energy, International Energy Agency data shows. At the top of the range it would raise up to 2 billion euros and be Europe’s largest IPO so far this year. Alarmingly, Hidroelectrica’s gross hydropower generation fell about 15% last year from its annual average of 15.9 terawatt-hours in the decade to 2022. The IPO carries a price range of between 94 Romanian lei and 112 lei (18.95 euros and 22.58 euros) per share, giving the company a potential market capitalisation of 42.3 billion lei to 50.4 billion lei (8.53 billion euros to 10.16 billion euros), Hidroelectrica said in its prospectus.

Persons: Romania’s, Austria’s Verbund, Bogdan Nicolae Badea, Hidroelectrica, Fondul Proprietatea, Franklin Templeton, Lisa Jucca, Oliver Taslic Organizations: Reuters, International Energy Agency, World Bank, Alarmingly, Investors, U.S, Thomson Locations: Europe, Romania, Ukraine, Romanian, China, France

☆ UK banks are appropriate airbag for mortgage crash
▼ + stars: | 2023-06-27 | by ( George Hay | ) www.reuters.com time to read: +4 min

Last year this was 2.9% on average for Lloyds, NatWest and Barclays. Hunt may be able to get banks to hike their savings rates merely by veiled threats. After all, the government would only be getting banks to do what they should be doing anyway. “It is taking too long for the increase in interest rates to be passed on to savers, particularly with instant access accounts,” Hunt told parliament. Around 60% of household deposits are held in instant access accounts, the committee said.

Persons: Banks, Jeremy Hunt, shouldn’t, it’s, Hunt, ” Hunt, “, Neil Unmack, Oliver Taslic Organizations: Reuters, Monday, Banking Group, NatWest, Barclays, Lloyds, JPMorgan, NatWest –, Alpha, Treasury, Bank of England, Labour Party, National Savings and Investments, of, Lloyds Banking Group, HSBC, Barclays –, Thomson

☆ Yacht maker’s westward detour comes at a price
▼ + stars: | 2023-06-27 | by ( ) www.reuters.com time to read: +2 min

LONDON, June 27 (Reuters Breakingviews) - Hong Kong-listed Ferretti went the extra mile to ensure its shares could finally trade in Europe. At 13 times its expected 2023 net profit , Ferretti traded at a discount to rival Sanlorenzo’s (SNL.MI) 15 times multiple. That’s a modest outcome for a company that has laboured since 2019 to try and list in its Italian home base. That compares to the 2.5% fee Italian gambling company Lottomatica (LTMC.MI) paid for its Milan market debut in May. Weichai will still hold on to nearly a third of Ferretti’s shares after its Milan listing.

Persons: Ferretti, pricey Riva speedboats, Sanlorenzo’s, Weichai, Goldman Sachs, Danilo Iervolino, Karel Komárek, Alberto Galassi, Yawen Chen, Aston Martin, Lisa Jucca, Oliver Taslic Organizations: Reuters, JPMorgan, Milan, Twitter, ICICI Bank, Siemens, Thomson Locations: Hong Kong, Europe, Milan, Abu Dhabi, China, Canada

☆ AI’s deflationary winds will blow away profits
▼ + stars: | 2023-06-27 | by ( Francesco Guerrera | ) www.reuters.com time to read: +6 min

LONDON, June 27 (Reuters Breakingviews) - The prevailing expectation for artificial intelligence’s (AI’s) impact on humans is laden with doom. Yet the history of technological innovation suggests humans will see at least one tangible benefit from AI: lower prices for what they consume. One innovation that could give consumers an advantage over companies is AI agents. Streaming services like Netflix (NFLX.O) and Walt Disney’s (DIS.N) Disney+ could also suffer if AI agents take off. Junior lawyers, call centre operators and advertising copywriters, to name but a few, should probably be afraid, very afraid of AI’s looming threat.

Persons: ”, Geena Davis, David Cronenberg’s, Goldman Sachs, Morgan Stanley, Morgan Stanley reckons, HelloFresh, Walt Disney’s, Peter Thal Larsen, Oliver Taslic Organizations: Reuters, Goldman, McKinsey, Nvidia, May, Reuters Graphics Reuters, U.S . Bureau of Labor Statistics, Bureau of Labor Statistics, Netflix, Deloitte, Thomson Locations: United States, Mallorca

☆ Blackstone deal is a bright spot in gloomy sector
▼ + stars: | 2023-06-26 | by ( ) www.reuters.com time to read: +2 min

NEW YORK, June 26 (Reuters Breakingviews) - The U.S. commercial real estate industry is mired in gloom, but some pockets are still sunny. The portfolio includes 14 million square feet of industrial properties in cities like Atlanta, Phoenix and Dallas, and the deal is premised in part on rising rents. According to the two companies, the net operating income generated by the warehouses is 4% of the acquisition price. Meanwhile, listed real estate investment trusts which own industrial warehouses trade at a narrowing discount to net asset value, according to S&P Global Market Intelligence. In a gloomy sector, so-called big boxes are a bright spot.

Persons: Steve Schwarzman, Avison Young, Jennifer Saba, Aston Martin, Peter Thal Larsen, Oliver Taslic Organizations: YORK, Reuters, U.S, P Global Market Intelligence, Twitter, Siemens, Telecom Italia, Vivendi, Thomson Locations: Atlanta, Phoenix, Dallas, Canada

☆ Peak oil is another reason to shun OPEC club
▼ + stars: | 2023-06-26 | by ( Robert Cyran | ) www.reuters.com time to read: +4 min

The group known as OPEC+, which includes the organization’s 13 oil-producing members as well as allied nations like Russia, produces over 40% of the world’s oil. Guyana’s recoverable reserves of around 11 billion barrels in that field alone make it an obvious candidate to join OPEC. Non-OPEC oil nations, such as the United States, Brazil and Canada, are growing production. Even OPEC+ members aren’t united in their desire to prioritize price over production. OPEC+, which comprises the cartel’s 13 oil-producing states and ten other allied nations such as Russia, represents over 40% of the world’s oil production.

Persons: Groucho Marx, It’s, aren’t, Abdulaziz bin Salman, Haitham, Bharrat Jagdeo, Hess, Peter Thal Larsen, Oliver Taslic Organizations: YORK, Reuters, Organization of, Petroleum, Wall Street, Exxon Mobil, International Energy Agency, OPEC, United Arab Emirates, Cooperation, Saudi Energy, Wall Street Journal, Exxon, Thomson Locations: Guyana, OPEC, Russia, United States, Brazil, Canada, Nigeria, Saudi Arabia

☆ Aston Martin pulls out of slow lane in EV race
▼ + stars: | 2023-06-26 | by ( ) www.reuters.com time to read: +2 min

LONDON, June 26 (Reuters Breakingviews) - Aston Martin Lagonda’s (AML.L) route to viability is a brain-teaser worthy of Q, James Bond’s quartermaster famous for turning everyday objects into whizzy tools. The 2.6 billion pound carmaker’s latest deal with $11 billion Lucid (LCID.O) shows the marque made famous by the fictional spy is, however, making progress. The deal with Lucid – majority-owned by the PIF, handily enough – will make Aston’s ambition to roll out its first electric vehicle by 2025 more credible. The deal sent Aston shares up over 9% in early Monday trading. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Aston Martin Lagonda’s, Q, James Bond’s, Aston, Lawrence, –, Mercedes, Neil Unmack, George Hay, Oliver Taslic Organizations: Reuters, Jefferies, Public Investment Fund, Porsche, Mercedes, Benz, U.S, Aston, Twitter, Canada, Siemens, Telecom Italia, Vivendi, Thomson

☆ Siemens Energy’s green windfall fades over horizon
▼ + stars: | 2023-06-23 | by ( ) www.reuters.com time to read: +2 min

LONDON, June 23 (Reuters Breakingviews) - It would be logical to assume that wind turbine manufacturers would be the first to benefit from the many government incentives designed to combat climate change. The German company issued late on Thursday a major profit warning, and scrapped its profit guidance this year. Siemens Energy’s stock dropped by more than 30% on Friday morning, wiping some 5.5 billion euros off the company’s market price. After Friday’s hit, Siemens Energy is trading at 0.4 times sales, way below rival Vestas Wind Systems’ (VWS.CO) multiple of 1.7. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Christian Bruch, Friday’s, Karen Kwok, Pierre Briancon, Oliver Taslic Organizations: Reuters, Siemens Energy, Siemens, Systems, Twitter, Telecom Italia, Vivendi, Intel, Thomson

☆ Telecom Italia grid talks leave Vivendi in a bind
▼ + stars: | 2023-06-23 | by ( ) www.reuters.com time to read: +2 min

LONDON, June 23 (Reuters Breakingviews) - Telecom Italia (TLIT.MI) is moving ahead with the long-awaited sale of its grid. The 5.5 billion euro Italian group has entered exclusive talks with private equity powerhouse KKR (KKR.N), and wants a binding offer by Sept. 30. Vivendi however is valuing the NetCo at 31 billion euros. A 26 billion euro price tag would imply an EV/EBITDA multiple of 14 times. That’s almost three times that of Vodafone (VOD.L) or Telefonica (TEF.MC), assuming the grid’s EBITDA at 1.8 billion euros, according to Barclays estimates.

Persons: Pietro Labriola, Il Messaggero, That’s, – Labriola, Pamela Barbaglia, Pierre Briancon, Oliver Taslic Organizations: Reuters, Telecom, KKR, Vivendi, hardball, Telecom Italia’s, Vodafone, Telefonica, Barclays, Twitter, Intel, Thomson Locations: Rome, York, French

☆ Interest rates have broken the global wealth pump
▼ + stars: | 2023-06-23 | by ( Edward Chancellor | ) www.reuters.com time to read: +7 min

Rising inflation and higher interest rates would appear to make matters even worse. In the United States, immigration and the offshoring of manufacturing has undercut the power of labour. Ultra-low interest rates proved the greatest wealth pump ever devised, loading the dice in favour of the financial elite. Since the turn of the century, when the Federal Reserve under Alan Greenspan reduced interest rates to a new post-war low, wealth has consistently grown faster than GDP. That’s where higher interest rates come in.

Persons: Leonard Cohen, Peter Turchin, “ cliodynamics ”, Clio, Turchin, Hong Xiuquan, Andrew Carnegie, Henry Clay Frick, ”, Donald Trump, ” Turchin, Alan Greenspan, Peter Thal Larsen, Oliver Taslic Organizations: Reuters, Times, Elites, Steel, Reuters Graphics Reuters, Wall Street, Federal Reserve, McKinsey Global Institute, McKinsey, Thomson Locations: United States, France, China, Taiping, Japan

☆ Rebuilding Ukraine: how much and who pays?: podcast
▼ + stars: | 2023-06-22 | by ( Peter Thal Larsen | ) www.reuters.com time to read: 1 min

LONDON, June 22 (Reuters Breakingviews) - Talk of reconstruction may seem premature with Russia still firing missiles at Kyiv. Yet that’s what policymakers and financiers gathered in London this week to debate. In this Viewsroom podcast, Breakingviews columnists discuss the cost, the timetable, and who picks up the tab. Listen to the podcastFollow @peter_tl on TwitterSubscribe to Breakingviews’ podcasts, Viewsroom and The Exchange. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Oliver Taslic Organizations: Reuters, Twitter, Thomson Locations: Russia, London

☆ Satellite stray’s lonely orbit has a cash booster
▼ + stars: | 2023-06-22 | by ( ) www.reuters.com time to read: +2 min

LONDON, June 22 (Reuters Breakingviews) - SES and Intelsat are orbiting away from each other. After being locked in merger talks since March, the two satellite operators have decided instead to pursue their own turnaround plans independently. Both companies operate in the stagnant satellite-video market and so would have been doubling down on an old technology. And the combined company would have been burdened with a heavy initial net debt load of around 4 times combined EBITDA, according to Deutsche Bank analysts. It wants to broaden its business to new areas, like the medium earth orbit constellations, which provide quick internet connections in hard-to-reach places.

Persons: Steve Collar, Pamela Barbaglia, Neil Unmack, Oliver Taslic Organizations: Reuters, SES, Intelsat, Deutsche Bank, Elon, SpaceX, U.S, Twitter, Intel, Thomson Locations: Luxembourg

☆ Credit-card crackdown will net limited rewards
▼ + stars: | 2023-06-22 | by ( John Foley | ) www.reuters.com time to read: +8 min

NEW YORK, June 22 (Reuters Breakingviews) - With more than two open accounts for every American, credit cards are practically part of the family. The point of credit cards is to make spending easier, yet in practice their complexity rivals the edgiest financial derivatives. At Capital One, late fees account for a little less than $2 billion of revenue, or roughly 5%, a year. If late fees have raised hackles among U.S. lenders, they’re only a taste of what could lie in store. Currently, issuers can charge $30 for a first late payment and $41 for late payments thereafter if they happen within the following six billing cycles.

Persons: Joe Biden’s, Biden, Banks, don’t, Goldman Sachs, Rohit Chopra, Michael Barr, that’s, There’s, Chase, they’re, –, Joe Biden, Jeffrey Goldfarb, Oliver Taslic Organizations: YORK, Reuters, JPMorgan, Consumer Financial, Bureau, American Bankers Association, Citigroup, Federal Reserve, Securities and Exchange Commission, Discover Financial Services, Bank of America, One, Fed, Biden, University of Michigan, Apple, Chase Sapphire, American Express, Capital, U.S, Consumer Financial Protection Bureau, New York Fed, Thomson Locations: U.S, United Kingdom

Search resuls for: "Oliver Taslic"

25 mentions found