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Technology stocks (.SX8P) fell 1.8% to lead sectoral losses in Europe after their U.S. peers were dragged down by weak results from Microsoft Corp (MSFT.O) and Alphabet Inc (GOOGL.O). The European banking index (.SX7P) fell 0.7%. read moreItaly's UniCredit (CRDI.MI) was a rare bright spot as its shares rose 3.9% after the bank raised its 2022 profit goal. "Nonetheless, we are likely to see some hesitation, with the economic implications of rising interest rates yet to be felt. read moreReporting by Sruthi Shankar in Bengaluru; Editing by Arun Koyyur and Saumyadeb ChakrabartyOur Standards: The Thomson Reuters Trust Principles.

☆ World stocks at 5-week high, earnings in the spotlight
▼ + stars: | 2022-10-26 | by ( Dhara Ranasinghe | ) www.reuters.com time to read: +4 min

But European shares headed higher (.STOXX), having opened softer, drawing some comfort from upbeat bank earnings. Deutsche Bank (DBKGn.DE) posted a better-than-expected jump in third quarter profit, while British bank Barclays (BARC.L) too beat profit forecasts on a trading boom. MSCI's World Stock Index (.MIWO00000PUS) touched a five-week high, while Asian shares rallied. The Bank of Canada is widely expected to raise rates by another 75 bps later in the day to contain stubbornly high inflation. In Australia, inflation raced to a 32-year high last quarter as the cost of home building and gas surged.

The British bank made a profit before tax of 2 billion pounds ($2.3 billion) in July-September, up from 1.9 billion a year ago and above analyst forecasts. European rival Deutsche Bank said fixed income trading revenues rose 38%. Barclays' advisory fees including merger and acquisitions (M&A) fell 45% in the third quarter to 533 million pounds. Despite the higher loan loss charge - including 381 million pounds taken in the quarter - Barclays' chief financial officer Anna Cross told reporters this had been taken ahead of time. Barclays said the net loss arising from the error over the year to date was 600 million pounds.

The British bank made a profit before tax of 2 billion pounds ($2.3 billion) in July-September, up from 1.9 billion pounds in the same period a year ago and above analysts' average forecast of 1.8 billion pounds compiled by the bank. Income in the fixed income, currencies and commodities business (FICC) doubled to 1.6 billion pounds from a year earlier as volatile markets saw heavy trading by clients. European rival Deutsche Bank saw fixed income trading revenues rise 38%. Barclays said the net loss arising from the error over the year to date was 600 million pounds. Barclays set aside 381 million pounds in the quarter to cover potentially soured loans – topping up its provisions for the year to 722 million – to reflect the deteriorating outlook.

☆ FTSE 100 dips as mixed earnings offset Sunak-driven optimism
▼ + stars: | 2022-10-26 | by ( ) www.reuters.com time to read: +1 min

The FTSE 100 index (.FTSE) was down 0.1% by 0747 GMT, while the midcap FTSE 250 (.FTMC) rose 0.2%. Shares of WPP (WPP.L) dropped 3.6% to the bottom of FTSE 100 after the group tempered its expectations for operating margin growth, and Reckitt Benckiser (RKT.L) slumped 3.2% despite providing a positive sales outlook. read moreSunak said he would try to fix the mess left by his predecessor, restore trust in British politics and tackle a "profound economic crisis". Shares of Standard Chartered (STAN.L) and Barclays (BARC.L) slipped even as both the lenders reported higher quarterly profit. read moreReporting by Johann M Cherian in Bengaluru; Editing by Sherry Jacob-PhillipsOur Standards: The Thomson Reuters Trust Principles.

☆ European banks’ perfect moment will prove fleeting
▼ + stars: | 2022-10-26 | by ( Liam Proud | ) www.reuters.com time to read: +4 min

LONDON, Oct 26 (Reuters Breakingviews) - Europe’s big banks are enjoying a perfect moment. That dream scenario allowed Deutsche Bank (DBKGn.DE), Barclays (BARC.L) and Banco Santander (SAN.MC) to report chunky profits in third-quarter results released on Wednesday. Barclays’ revenue from trading fixed-income securities, currencies, and commodities in the first nine months of 2022 was 63% higher year-on-year. Deutsche, Barclays and Santander have slashed their group-wide stock of loan-loss provisions since 2020, and in the latter two cases they’re even below pre-pandemic levels. Deutsche Bank and Barclays were down 0.5% and 0.9% respectively.

And Italy's UniCredit (CRDI.MI) raised its 2022 profit goal, helped by higher interest rates and lower loan loss provisions that also drove quarterly earnings above forecasts. For years, banks bemoaned ultra loose monetary policy, but now higher interest rates means banks can start to benefit from the increased gap between what they charge borrowers and what they pay savers. Standard Chartered's third-quarter profit surged 40% as higher interest rates boosted the emerging markets-focused bank's income, giving it ammunition to upgrade its revenue outlook despite a weakening global economy. For Santander, higher loan loss provisions in key markets like Brazil and the United States overshadowed better than expected third-quarter earnings. While benefiting from higher interest rates, banks also face the unwinding of a scheme that buoyed their profits for years.

☆ Cost of insuring UK debt against default drops as Sunak becomes PM
▼ + stars: | 2022-10-24 | by ( ) www.reuters.com time to read: +1 min

LONDON, Oct 24 (Reuters) - The cost of insuring Britain's debt against default fell to its lowest since last month's "mini budget", according to data from S&P Global Market Intelligence on Monday, after Rishi Sunak won the race to become Britain's next prime minister. Five-year sovereign credit default swaps (CDS) on UK government debt fell to 30 basis points, from 35 bps at Friday's close. This was their lowest since Sept. 23, when outgoing Prime Minister Liz Truss and her then-finance minister Kwasi Kwarteng unveiled a fiscal plan that contained billions of pounds in unfunded tax cuts. Sunak, who served as finance minster under Boris Johnson, said on Monday Britain faced serious economic challenges and needed stability and unity. Register now for FREE unlimited access to Reuters.com RegisterReporting by Amanda Cooper; Editing by Karin StroheckerOur Standards: The Thomson Reuters Trust Principles.

☆ Bid deadline for India's Future Retail extended due to low interest -sources
▼ + stars: | 2022-10-21 | by ( Nupur Anand | ) www.reuters.com time to read: +2 min

MUMBAI, Oct 21 (Reuters) - The resolution professional for India's debt-laden Future Retail Ltd (FRTL.NS) has extended the deadline for potential buyers to submit their bids for the retailer, due to tepid interest, two banking sources said on Friday. The deadline had ended on Oct. 20, but has been extended to Nov. 3, according to an updated document released by the resolution professional (RP). Register now for FREE unlimited access to Reuters.com RegisterFuture Retail's RP did not immediately respond to an email seeking comment. Future Group's flagship retail unit, Future Retail was once the country's second-largest retailer but has been in bankruptcy proceedings after it defaulted on loans and its lenders rejected a $3.4 billion sale of its assets to market leader Reliance Industries (RELI.NS). The lead lenders include Bank of India (BOI.NS) and State Bank of India (SBI.NS).

Elon Musk photo, Twitter logos and U.S. dollar banknotes are seen in this illustration, August 10, 2022. The banks, which include Morgan Stanley and Barclays Plc (BARC.L), did not respond to requests for comment. Representatives for Musk and Twitter did not immediately respond to requests for comment. He has not revealed details on Twitter's new leadership and business plan, and many debt investors are holding back until they get more details on that front, the sources said. The debt package for the Twitter deal is comprised of junk-rated loans, which are risky because of the amount of debt the company is taking on, as well as secured and unsecured bonds.

☆ ASOS shares drop on talks with lenders to change borrowing terms
▼ + stars: | 2022-10-17 | by ( ) www.reuters.com time to read: +2 min

LONDON, Oct 17 (Reuters) - ASOS (ASOS.L) shares fell sharply on Monday after the British online fashion retailer said it was in talks with lenders to change the terms of a 350 million pound ($394 million) borrowing facility to provide more flexibility in tough economic times. The statement was issued after Sky News reported ASOS had recently approached its lenders, including Barclays (BARC.L), HSBC (HSBA.L) and Lloyds Banking Group (LLOY.L), to amend its borrowing agreements. Sky News said the lenders were lining up AlixPartners and law firm Clifford Chance to advise them on an "unfolding situation". It also forecast full-year net debt of about 150 million pounds, which was higher than previous guidance. "This happened towards the end of August and there has been no adverse impact on trading relationships with our suppliers," ASOS said in response.

☆ ASOS in talks with lenders to amend terms of $391 mln facility
▼ + stars: | 2022-10-15 | by ( ) www.reuters.com time to read: +2 min

LONDON, Oct 15 (Reuters) - British online fashion retailer ASOS (ASOS.L) is in talks with lenders to amend the terms of its 350 million pound ($391 million) borrowing facility, it said on Saturday. Sky News said the lenders were lining up AlixPartners and law firm Clifford Chance to advise them on an "unfolding situation". It warned last month that it expected profit before tax in the year to Aug. 31 to be around the bottom end of its guidance of 20 million pounds to 60 million pounds after weaker than projected August sales. ASOS also forecast full-year net debt of about 150 million pounds, which was higher than previous guidance. "This happened towards the end of August and there has been no adverse impact on trading relationships with our suppliers," ASOS said in response.

Up to 200 million euros of the capital will come from France's AXA (AXAF.PA), MPS' partner in an insurance joint-venture. Another 50 million euros are being guaranteed by London-based fund Algebris, whose founder Davide Serra is a close associate of Lovaglio. The state will put in 1.6 billion euros towards the capital raising, based on its 64% stake. Local banking foundations in Tuscany - charitable organisations overseen by Italy's Treasury - have already put in some 30 million euros. After its market value shrunk to just 256 million euros, MPS will sell the new shares with a discount of only 8.6% over Wednesday's closing price stripped of subscription rights.

Another 50 million euros are being guaranteed by London-based fund Algebris, whose founder Davide Serra is a close associate of Lovaglio. The state will put in 1.6 billion euros towards the capital raising, based on its 64% stake. If MPS gathers less than the maximum 2.5 billion euros, the state's contribution will be proportionally reduced so as not to exceed 64% of the total. At least 100 million euros will come from France's AXA (AXAF.PA), MPS' partner in an insurance joint-venture. After its market value shrunk to just 256 million euros, MPS will sell the new shares with a discount of just 8.6% over Wednesday's closing price stripped of subscription rights.

But it is unclear how many lenders are tapping the facility and whether pension funds are willing to shell out additional fees for what is a temporary solution, sources told Reuters. Banks are reluctant to increase their lending to LDI funds through the repo facility, according to one official at a European bank. BRIDGING THE GAPLDI is an investment strategy sold by asset managers like BlackRock, Legal & General Investment Management and Insight Investment to pension schemes to help them match their assets and liabilities. Governor Andrew Bailey has rejected calls to continue buying bonds from pension funds which say they still need support beyond Friday. "It's a bridging tool that they can still use to keep the dialogue with the market and the pension funds going."

Typically, banks would sell the debt to investors and pocket an underwriting fee. Elon Musk vs TwitterThe debate, currently a topic of conversation among investment bankers and debt investors, provides a window into the havoc wreaked on Wall Street by Musk’s U-turn last week. Musk, however, conditioned his proposal on his ability to secure debt financing and now has until Oct. 28 to close on the transaction. VARIOUS OPTIONSThe debt financing package is comprised of leveraged loans, which are risky because of the amount of debt the company is taking on, as well as secured and unsecured bonds. In September, banks financing the Citrix buyout undertook a similar restructuring.

Banks are finding the home loan market stacked in their favour after years of low mortgage rates, but are also aware that bigger mortgage bills could spell trouble for cash-strapped customers. But the higher rates will hit borrowers hard. Mortgage payments as a proportion of gross household income were on average around 20% in June, according to BuiltPlace, a property market consultancy. They could rise to around 27% - the highest since the early 1990s - if mortgage rates were to rise to 6%, the consultancy said. The rise in mortgage rates will be a blow for millions of households' finances, Sue Anderson, head of media at debt charity StepChange said.

☆ Wall Street sends regulators a poop emoji
▼ + stars: | 2022-09-28 | by ( John Foley | ) www.reuters.com time to read: +4 min

For Wall Street brokerages, one answer is simply to flout it. At many of the firms, even managers whose job it was to enforce those rules were copiously breaking them. The regulators at least didn’t say they’d uncovered anything illegal, though disappearing-message apps and encryption make evidence easy to hide. But it’s still troubling to find widespread, frequent examples of bank employees, many with “global firm-wide leadership” roles, routinely doing something their companies forbid. The SEC fined the firms $1.1 billion, while the CFTC fined the same companies around $710 million.

☆ After 14 years, Lehman Brothers' brokerage ends liquidation
▼ + stars: | 2022-09-28 | by ( Jonathan Stempel | ) www.reuters.com time to read: +1 min

NEW YORK, Sept 28 (Reuters) - The liquidation of Lehman Brothers' brokerage unit has ended, 14 years and 13 days after its parent's bankruptcy helped trigger a market freefall and global financial crisis. U.S. Bankruptcy Judge Shelley Chapman in Manhattan closed the brokerage's estate on Wednesday and awarded final payments to the trustee who oversaw its liquidation and his law firm. Register now for FREE unlimited access to Reuters.com RegisterLehman's 111,000 customers received all $106 billion they were owed, and secured creditors also received full payouts. Lehman Brothers Holdings Inc, the brokerage's parent, had been Wall Street's fourth-largest investment bank before filing what remains by far the largest U.S. bankruptcy on Sept. 15, 2008. Giddens' law firm Hughes Hubbard & Reed was awarded $424 million as final compensation for 14 years of work on the case.

☆ U.S. fines 16 Wall Street firms $1.8 bln for talking deals, trades on personal apps
▼ + stars: | 2022-09-27 | by ( Michelle Price | ) www.reuters.com time to read: +4 min

Sept 27 (Reuters) - U.S. regulators on Tuesday fined 16 financial firms, including Barclays (BARC.L), Bank of America , Citigroup , Credit Suisse (CSGN.S), Goldman Sachs , Morgan Stanley and UBS (UBSG.S), a combined $1.8 billion after staff discussed deals and trades on their personal devices and apps. Register now for FREE unlimited access to Reuters.com RegisterThe institutions did not preserve the majority of those personal chats, violating federal rules which require broker-dealers and other financial institutions to preserve business communications. The failings occurred across all 16 firms and involved employees at multiple levels, including senior and junior investment bankers and traders, the SEC said. In one example cited by her office, Bank of America staff used WhatsApp, with one trader writing: "We use WhatsApp all the time but we delete convos regularly." The head of a trading desk routinely directed traders to delete messages on personal devices and to use Signal, including during the CFTC's probe.

☆ U.S. fines 16 Wall Street firms $1.1 billion over record-keeping failures
▼ + stars: | 2022-09-27 | by ( ) www.reuters.com time to read: +1 min

Sept 27 (Reuters) - The U.S. Securities and Exchange Commission on Tuesday fined 16 financial firms, including Barclays (BARC.L), Bank of America , Citigroup , Credit Suisse (CSGN.S), Goldman Sachs , Morgan Stanley and UBS, a combined $1.1 billion over failing to maintain and preserve electronic communications. The sweeping industry probe, which was first reported by Reuters last year and had since been disclosed by multiple lenders, is a landmark case for the agency, regulatory experts said. "The firms admitted the facts...acknowledged that their conduct violated recordkeeping provisions of the federal securities laws... and have begun implementing improvements to their compliance policies and procedures to settle these matters," the SEC said. That likely impeded the SEC's ability to gather evidence in other, unrelated investigations, the agency said. The failings occurred across all 16 firms and involved employees at multiple levels of authority, including supervisors and senior executives, the SEC said.

☆ Global rates, retail banking included in Bank of England stress test
▼ + stars: | 2022-09-26 | by ( ) www.reuters.com time to read: +2 min

A general view of the Bank of England (BoE) building, the BoE confirmed to raise interest rates to 1.75%, in London, Britain, August 4, 2022. REUTERS/Maja Smiejkowska/File PhotoLONDON, Sept 26 (Reuters) - Banks' ability to cope with rising global interest rates and the resilience of their retail divisions to market shocks will be under scrutiny in this year's "stress test", the Bank of England said on Monday. It will test "ring-fenced" retail arms of banks on a standalone basis for the first time, the BoE said. There will be a separate stress test of misconduct costs. The test has no pass or fail mark but a bespoke "hurdle" for each bank.

☆ Iberdrola hires Barclays to sell stake in Spanish renewable portfolio, Expansion says
▼ + stars: | 2022-09-26 | by ( ) www.reuters.com time to read: +1 min

Register now for FREE unlimited access to Reuters.com RegisterThe logo of Spanish utility company Iberdrola is seen outside its headquarters in Madrid, Spain, May 23, 2018. REUTERS/Sergio PerezMADRID, Sept 26 (Reuters) - Spanish power company Iberdrola (IBE.MC) hired Barclays' (BARC.L) investment bank to sell up to 49% in a portfolio of Spanish renewable power projects, Expansion newspaper reported on Monday, citing unidentified market sources. The assets are worth about 500 million euros ($482.50 million), the newspaper said, according to its market sources. It has recently agreed to sell a minority stake in a giant off-shore wind project in Germany for 700 million euros. ($1 = 1.0363 euros)Register now for FREE unlimited access to Reuters.com RegisterReporting by Inti Landauro, Editing by Louise HeavensOur Standards: The Thomson Reuters Trust Principles.

☆ Barclays shareholders sue in U.S. over $17.6 billion debt sale blunder
▼ + stars: | 2022-09-23 | by ( Jonathan Stempel | ) www.reuters.com time to read: +2 min

A branch of Barclays Bank is seen, in London, Britain, February 23, 2022. REUTERS/Peter NichollsNEW YORK, Sept 23 (Reuters) - Barclays Plc (BARC.L) was sued on Friday in a proposed U.S. class action in which shareholders claimed they were defrauded in connection with the British bank's sale of $17.6 billion more debt than regulators had allowed. The bank revealed in March that it had sold $15.2 billion more structured and exchange-traded notes than the $20.8 billion U.S. regulators had authorized. read moreThe bank said on Sept. 15 that investors had submitted claims covering $7 billion of the securities. The case is City of North Miami Beach Police Officers' and Firefighters' Retirement Plan et al v. Barclays Plc et al, U.S. District Court, Southern District of New York, No.

☆ Barclays shareholders sue in U.S. over $17.6 bln debt sale blunder
▼ + stars: | 2022-09-23 | by ( Jonathan Stempel | ) www.reuters.com time to read: +2 min

A branch of Barclays Bank is seen, in London, Britain, February 23, 2022. The complaint said Barclays made "materially false and misleading" assurances in its annual reports that its internal controls over financial reporting were effective. read moreThe bank said on Sept. 15 that investors had submitted claims covering $7 billion of the securities. read moreFriday's lawsuit by the City of North Miami Beach Police Officers' and Firefighters' Retirement Plan and City of North Miami Beach General Employees' Retirement Plan seeks damages for Barclays ADR holders from Feb. 18, 2021 to March 25, 2022. The case is City of North Miami Beach Police Officers' and Firefighters' Retirement Plan et al v. Barclays Plc et al, U.S. District Court, Southern District of New York, No.

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