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Brexit prompts global outlook cut; S&P on Deutsche Bank; ABN AMRO CEO to leave


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Brexit prompts global outlook cut; S&P on Deutsche Bank; ABN AMRO CEO to leave

IMF cuts global economicoutlook: TheIMF revised itsglobal growth forecast by 0.1 percentage point to 3.1% in 2016 and to 3.4% in2017, from 3.2% and 3.5%, respectively, in April. The revisioncomes amid expectations that the U.K.'s decision to leave the EU will weigh onthe world economy. The fund also said the health of Portugal's banking systemis among the threats facing the global economy, Jornal de Negócios notes.

*The European Court of Justice handed a victory to the European Commission over itsrules governing state aid for banks. Deciding on a case brought by junior debtholders hit by losses during the rescue of Slovenia's banking system in late2013, the court said requirements that investors absorb losses before state aidcan be given are "not contrary to EU law" but added that EU memberstates are not required to impose losses on investors.

* In its adviceon the application of the alternative investment fund managers directivepassport to non-EU alternative investment fund managers and alternativeinvestment funds in 12 locations, the European Securities and Markets Authoritysaid funds from Canada, Guernsey, Japan, Jersey, Switzerland, Hong Kong andSingapore should be allowed to offer their services in the EU using thepassport.

* According to data from Thomson Reuters' Lipper, Europe'smutual funds recorded net outflows of €20.6 billion in June amid investorjitters following the Brexit vote, Reuters notes.U.K. equity funds' net outflows amounted to €1.7 billion, while U.K. bondfunds' net outflows reached €400 million.


Bailey wantsUK to maintain EU access: Andrew Bailey, the new head of the U.K. FinancialConduct Authority, said at the regulator's annual meeting that Britain mustmaintain its access to the EU's single market and should be "seeking tohave in place trade agreements with other countries," the Financial Times writes.Bailey reiterated that there would be no "great bonfire ofregulations" following the Brexit vote as many elements of financialregulation were either based on global rules or were laws that the countrywould want to retain.

* U.K. Chancellor Philip Hammond said the Bank of Englandwould take immediate action to help relieve the slowdown caused by thecountry's decision to leave the EU, and he will present new fiscal plans in theautumn, Reuters reports.The BoE had said it will unveil Aug. 4 a potential monetary package of measuresas an initial response to a shock from the Brexit vote.

* BoE Deputy Governor Sam Woods said yesterday that relyingon the EU's securities rules, which will be implemented in 2018, to allowlenders to access the single market after the Brexit vote was not a"sweeping solution," Reuters reports.Woods warned against lenders depending on the Markets in Financial InstrumentsDirective II rules as the U.K.'s trade negotiations would be more extensive.

* Man GroupPlc saidthis morning that Luke Ellis will succeed Manny Roman as CEO on Sept. 1. Romanwill step down from the board Aug. 31 to become CEO of unit from Nov. 1.


DeutscheBank outlook changed to negative: S&P Global Ratings yesterdayrevised Deutsche BankAG's creditoutlook to negative from stable in view of current market conditions and theBrexit vote, whichare expected to complicate restructuring plans. A credit downgrade couldfollow "if market conditions challenge Deutsche Bank's ability to preserve itscapital and maintain its franchise while implementing its restructuring plans."

* Deutsche Bankappointed Patrick Frowein and Berthold Fuerst as co-heads of corporatefinance for Germany, Austria and Switzerland, Bloomberg News reports.

* German banks eliminated 13,000 jobs in 2015, the mostsince 2004, the Employers Association of Banks says.

* appointedMarcel Schuler new COO of its international wealth management division as ofNovember, Finews reports.

* Julius BärGruppe AG announced a new regional organizational and made changes inits management, which are part of the bank's efforts to strengthen clientorientation and increase efficiency.


ABN AMRO CEO to leaveearly:ABN AMRO Group NV CEOGerrit Zalm is looking to step down from his role earlier than expected, Het Financieele Dagblad reports. Executiveboard member Chris Vogelzang may succeed Zalm.

*Belgium is to change its law to allow independent workers to pay into thesecond tier of its national pension scheme, L'Echoreports.

* A group of 19 chief executive officers have written anopen letter in which they plead for more cooperation and integration betweenBelgium, the Netherlands and Luxembourg after Brexit, De Tijd reports.

*The French government decided to follow Banque de France recommendations andkeep the interest rate on Livret A savings accounts at 0.75% till August 2017,but is reducing the rate for Plans d'Epargne Logement to 1% from 1.5% for newaccounts, Le Monde reports.Les Echos alsocovers.


Sharp drop in Spanishbanks' H1 result seen:Spanish largest banks are forecast to post a 22% drop in first half profits to€6.33 billion due to weakening net interest income, interest rate pressure andcompetition particularly for small- and medium-sized business loans, Expansión says,citing data from Keefe Bruyette & Woods.

*ABANCA Corporación BancariaSA reported first-half net profit of €186 million, up 2.2% from the same period in2015. Net interest income amounted to €199 million in the half, down 9% on ayearly basis, while net commission income increased 10% to €76 million.

*Bankia SA is sellingoff more than 5,900 homes and 950 commercial or industrial buildings atdiscounts of up to 40%, Expansión says.

*Spain's Association of Bank Users plans to ask the Bank of Spain to act"urgently" against banks that do not inform customers of changes totheir charges, El Economista reports.

* AsPortugal's central bank considers bids for state-rescued , progress is also beingmade to sell the bank's units in Macau, France and Cape Verde, Diário Económico reports.The bank, which aims to reduce itsforeign businesses to focus on the domestic market, has already received offers for Novo Banco Ásiaand France-based Banque EspíritoSanto et de la Vénétie.

*Uncertainty about the direction of Caixa Geral de Depósitos SA could start damagingconfidence in the lender, Jornal deNegócios reports.Meanwhile, Portuguese Finance Minister Mario Centeno pledgedto make Caixa's overhaul a priority,Diário Económico reports.


Monte deiPaschi may sell Antonveneta biz: Banca Monte dei Paschi di Siena SpA could sell itsAntonveneta business to Unione diBanche Italiane SpA ahead of the disposal of its nonperformingloans and a subsequent capital increase, Corriere della Sera says.

* Meanwhile, the Italian government is studying thepossibility of tax breaks for banks that would help recapitalize Monte deiPaschi bank either directly or via the bank rescue fund Atlante or itssuccessor Giasone, La Repubblica writes.

* The European Commission said a ruling by the EU's topcourt on bank bail-ins would not affect talks with the Italian government on plansto provide state support to Monte dei Paschi and other troubled Italianlenders, Reuters writes.

* Banca IFISSpA is close to sealing a deal to acquire from theU.S. conglomerate General Electric for about €200 million, MF says.

* Banca Popolaredi Sondrio SCpA will call an extraordinary shareholders meeting inthe autumn to approve the cooperative lender's transformation into a jointstock company, MF says. 

* Talks between Banca Popolare dell'Emilia Romagna SC and local bankingfoundations could result in the foundations acquiring a combined 10% stake inthe lender, MF says.

* Greek investigators have expanded their probe of UBS Group AG and on July 4 raided the Athens homeof a former UBS banker, Reuters reports. The Greek government yesterday confirmed a Financial Times reportthat investigators took computers, documents and disks from the home ofChristos Sclavounis, who also servedas former chairman of the Hellenic Financial Stability Fund.

* Greek bank deposits increased €4 billion so far this year,compared to deposit outflows of up to €5 billion as of May 2015, Imerisia reports,citing the Athens-Macedonian News Agency.

* The ECB approved Bank of Greece Governor Yannis Stournaras'request related to the loosening of capital controls in the Greek bankingsystem, Imerisia writes.Stournaras said any new capital will not be subject to capital controls.

* The Bank of Greece said the criteria for loan granting tononfinancial businesses remained stable in the second quarter and are expectedto show a similar trend in the third quarter, Imerisia writes.Demand for new loans by large businesses slightly increased, whereas demand fornew household loans as well as their approval criteria remained the same.


Nordea posts Q2 result: Nordea Bank AB (publ) this morning reportednet profit of €996 million for the second quarter, up from €952 million a yearearlier. For the first half, the bank's net profit reached €1.78 billion, downfrom €2.03 billionreported in the same period in 2015.

* DNBKapitalforvaltning, the asset management subsidiary of lender , has earned 120 millionNorwegian kroner from the launch of Nintendo's mobile entertainment gamePokémon Go, Dagens Næringsliv reports.DNB Kapitalforvaltning's technology funds began buying Nintendo stock in lateJune.

*Sydbank A/S plans toallocate more funding and other resources to increase its partnership withstart-up fintech firms in Denmark, FinansWatchreports.CEO Karen Frøsig indicated that Danish banks can profit from investing moreheavily in the operations of fintech firms.


Turkey cuts rateagain: TheTurkish central bank yesterday reduced its key interest rates for the fifthstraight month following a failedcoup attempt in the country, The WallStreet Journal reports.

*  hascancelled a $550 million eurobond issuance. The bank said it decided to cancelthe transaction due to the "negative developments and volatility" inthe markets.

* The Russian Deposit Insurance Agency asked to convert itsshares into another type of shares to allow the state agency to obtain interimdividends, Reuters notes.

* Alior BankSA saidyesterday that it obtained approval from the Polish FSA for its acquisition of 's core bank, withoutthe mortgage portfolio and BPH TFI. Alior Bank said it has secured funding forthe transaction through a rights issue in the second quarter.


Asia-Pacific:Malaysian fund, SunLife looking to buy Hong Leong insurance ops; India unveils bank capitalsupport plan

MiddleEast and Africa: Barclays starts Egyptian unit sale process; Commercial Bank H1profit plummets YOY

LatinAmerica: Banco do Brasilreviewing partial sales of Banco Votorantim, Banco Patagonia

NorthAmerica: Goldman reports itsbottom line; GOP hopes to bring back Glass-Steagall

NorthAmerica Insurance: UnitedHealth'searnings rise despite drag from ACA biz; interest rate headwinds to define Q2results for life insurers


: A deal to sell Williams & Glyn toSantander U.K. may be back on the cards. Under an asset transfer structure,vendor RBS could have a chance to offload the unit without finishing off anexpensive and lengthy process of establishing separate IT infrastructure forthe high street lender.

: Nonperforming assets remain high in Spain andcould seriously threaten bank capital when stressed.

S&P Global Ratingsand Global Market Intelligence are owned by S&P Global Inc.

Sheryl Gesto, Ed Meza, BrianMcCulloch, Danielle Rossingh, Jennifer Laidlaw, Helen Popper, Heather O'Brian,Thanasis Kakalis, Gerard O'Dwyer and Ali Kayalar contributed to this report.

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