UKexpects to keep EU passporting rights: The EU is mulling giving theU.K. an "emergency brake" in the unlimited migration of people for upto seven years and keeping the country's access to the single market in orderto lessen the economic impact of Brexit to the bloc's economy, insiders tellThe Guardian. Meanwhile, BritishForeign Secretary Boris Johnson said he expected U.K. lenders and otherfinancial firms to keep their "passporting" rights to the EU, the Financial Times writes.The Daily Telegraph also reports.
* The G-20 said it will useall policy tools to achieve its growth goals amid financial market volatilityand uncertainty following the Brexit vote. British Chancellor Philip Hammondsaid the U.K. will set out "more clearly the kind of arrangement weenvisage going forward with the [EU]", TheDaily Telegraph reports.Reutersand BloombergNews also cover.
* ECB Governing Council member Ignazio Visco tellsBloomberg News that the central bank "will find solutions" if it seesproblems in the implementation of its €1.7 trillion quantitative easingprogram. Visco added that policymakers have so far "no evidence" ofany shortage in government bonds that may put the completion of the program atrisk.
* Fitch Ratings on Friday applied its revisedsovereign criteria to various nations, downgrading 23 long-term local-currencyissuer default ratings, upgrading eight short-term foreign-currency issuerdefault ratings and downgrading one short-term foreign-currency issuer defaultrating, while affirming other long- and short-term local- and foreign-currencyissuer default ratings. The sovereigns affected by the actions include the U.K., Germany, France, Spain, Italy, Denmark and Russia.
HSBCmoves to trim RWAs: HSBC Holdings Plc has put on sale $2.7 billion ininvestment-grade loans, project finance and performing and nonperformingleveraged loans in an aim to slash $290 billion in risk-weighted assets overthe next three years, insiders tellBloomberg News.
* AberdeenAsset Management Plc today reported AUMof £301.4 billion at June-end, compared to £292.8 billion as of March 31.
* NationwideBuilding Society is looking at lending to small and medium-sizedenterprises as part of a strategic review aimed at boosting digitaldevelopments, insiders tellthe Financial Times.
* Euan Munro, CEO of Aviva Investors, tellsReuters that the AvivaPlc unit will decide when to reopen property fund Aviva InvestorsProperty Trust when it has "actual transactional data" to help valuethe fund accurately.
* The U.K. Financial Conduct Authority saidit found "significant shortcomings" in the control and oversight ofU.K. general insurers' appointed representatives. The regulator also discoveredpotential mis-selling and customer detriment due to appointed representatives'actions.
* U.K. Prime Minister Theresa May is set to meet NorthernIreland First Minister Arlene Foster and Deputy First Minister MartinMcGuinness today to insist that she will consult with Northern Ireland in talksover the U.K.'s pending departure from the EU, The Daily Telegraph and The Wall Street Journal report.
* Meanwhile, Scottish First Minister Nicola Sturgeon is setto "find or create" the "best options" to retain Scotland'smembership in the EU in an attempt to avoid another independence referendum andretain its access to the single market, TheTimes writes.
GERMANY,SWITZERLAND AND AUSTRIA
JuliusBär H1 profit up YOY: Julius Bär Gruppe AG this morning posted first-half IFRSnet profitattributable to shareholders of CHF362 million, up from CHF39.0 million a yearago when it booked a $350million provision for an eventual settlement with the U.S. Departmentof Justice regarding its legacy U.S. cross-border business.
* The U.S. FinancialIndustry Regulatory Authority sidedwith former advisers of CreditSuisse Group AG who have been fighting for deferred compensationafter leaving the bank in 2015, The NewYork Times reports. The watchdog said member firms cannot make workers waive their rights tosettle disputes in FINRA's own arbitration forum. Credit Suisse had forced the advisersto use two other arbitration services they did not want.
* German banks have been slow inimplementing the EU's MiFID II guidelines,Börsen-Zeitung reports. Of the 51 small and medium-sized banks and sparkassensurveyed by consulting firm PPI, 11 had not begun to implement the rules by thesecond quarter. The survey found that 32 banks had begun implementation, while13 had paused the entire process.
Bancassurersgain ground in France: Bancassurers in France have beengaining a 0.6% market share in general insurance every year since 2004, Les Echos writes,citing a research from Facts & Figures. Crédit Mutuel Group unit CIC has been one of the bestperformers. L'Agefi also covers.
BBVAplans layoffs: Banco BilbaoVizcaya Argentaria SA is planning to cut at least 2,000 jobs toreduce expenses, El Mundo reports.The cuts will take place globally, impacting the bank's branch network andheadquarters.
* Analysts estimate that Banco Popular Español SA could save up to €150 million ayear if the plan to reduce its workforce and branches comes to fruition, Expansión says.The paper says the bank is set to announce a plan to cut between 2,500 and3,000 jobs. El Economista estimatesthat Spanish banks will lay off 7,000 employees this year.
* BankiaSA CEO José Sevilla said the bank will maintain its dividend payoutpolicy despite the drop in first-half net profit, El Economista says.He also underlined that the bank was not planning further layoffs. Europa Pressalso covers.
* Expansión saysa judge in Valencia ruled that two investors could not sue Bankia because theybought the bank's stock after its ill-fated listing.
* Acting Spanish Economy Minister Luis de Guindos said thecountry's economy is set to grow 2.9% this year, faster than the previouslyforecast 2.7%, despite political uncertainty surrounding the Spanish elections,accordingto Bloomberg News.
* Portuguese central bank Governor Carlos Costa toldparliament that there was still time and sufficient interest from potentialbuyers to sell Novo BancoSA, Jornal de Negócios writes.
*The ECB rejected an initial restructuring plan for state-run Portuguese lenderCaixa Geral de DepósitosSA as unrealistic, but changes have since been made and both sideshave agreed on a "credible" proposal, Diario Económico reports,citing Expresso.
Italybank fund could pick up rescued lenders: Fondo interbancario digaranzia Chairman Salvatore Maccarone told Corrieredella Sera that thevoluntary interbank investor-guarantee fund could purchase the four smallItalian banks that were bailed out late last year to avoid their sale atrock-bottom prices. The highest offerfor the banks was €600 million, well below the most recent valuation of €1.4billion.
* Pressure is being exercised on toacquire Banca Monte dei Paschi diSiena SpA, Corriere della Sera says.The ECB is "cold" on Monte dei Paschi's plans to sell nonperformingloans and boost capital, Il Sole 24 Ore writes.
* According to preliminary indications, of the five bigItalian banks subject to stress tests, Monte dei Paschi is the only one that isviewed at being at risk under the adverse stress test scenario, whileIntesa Sanpaolo SpAhas emerged as among the best performers in Europe in the stress tests, IlSole 24 Ore says.
* Italian Economy Minister Pier Carlo Padoan ruled out theneed for a bail-in of the country's lenders, Il Sole 24 Ore writes.The Wall Street Journal also covers.Bankof Italy Governor Ignazio Visco, meanwhile, said most Italian banks do not faceproblems with the disposal of NPLs. He added that bad loans representingproblems for Italian banks could be quantified at some €7 billion to €8billion. The Financial Times alsoreports.
* Greece is easing capital controls to boost confidence in itslenders, Reuters says.However, Greece retained restrictions preventing people from taking cash out ofthe country, The Wall Street Journal notes.
Danskeexpects costs to rise: Danske Bank A/S is expecting a sharp rise in costsassociated with maintaining and developing its anti-money laundering proceduresand systems. The bank believes that higher regulatory costs may impactprofitability going forward, Børsen reports.
* Ålandsbanken Abp issued a for 2016 after itssecond-quarter operating income almost halved on a yearly basis to €4.6million. The Finnish bank now expects net operating profit in 2016 to be aboutthe same or lower than in 2015, Kauppalehtinotes.
BankAsya loses license: Turkey's Banking Regulation and Supervision Agency canceledAsya Katilim BankasiAS's banking license.
* S&P Global Ratings on Friday acted on five Turkishbanks following the downgradeof the sovereign.
* JSCB NOVIKOMBANK will carry out two additional shareissuances of 13.7 billion rubles and 6.3 billion rubles, instead of just oneissue, Kommersant says. The capitalhikes are expected to complete in September.
* The Russian central bank completed aninspection of the Moscow branch of PJSC JUGRA Bank and asked the lender to improve thequality of assets, as well as risk and capital management procedures, Kommersant says.
* launched the official sale process of Raiffeisen Bank Polska SA, with , and filing initialoffers, Puls Biznesu reports.
*Kazakhstan's competition authority allowed JSC Kazkommertsbank to acquire more than a 50% holdingin BTA Bank Belarus, Kapital.kz reports.
INOTHER PARTS OF THE WORLD
Asia-Pacific: CCB injects capital into New Zealand unit; Fosun's Ironshore filesfor IPO
Middle East & Africa: BLOM BANK confirms HSBC talks; concerns about nonperforming insiderloans in Nigeria
NOWFEATURED ON S&P GLOBAL MARKET INTELLIGENCE
Wind-down alast resort for Novo Banco as Portugal continues hunt for buyer:The Portuguese government has said it will wind down Novo Banco if a sale isnot achieved by August 2017.
Bankia eyescapital easing as NPL improvement continues, but margin worriesloom: Executives of the Spanish lender expressed optimism thatregulators will trim the amount of capital it is required to set aside,potentially paving the way for a merger with Banco Mare Nostrum. But fallingnet interest income remains a concern.
Sabadellsanguine on Brexit as UK unit boosts bottom line: U.K. unit TSBBanking Group made a substantial contribution to Banco de Sabadell's first-halfprofit. The falling value of sterling poses something of a threat, but theSpanish lender's CFO expressed confidence.
Turkishinsurers could face government pressure over pricing in wake of coup: ChartWatch: S&P Global Market Intelligence presents a snapshot ofTurkey's insurance industry, the nonlife sector of which may come underpressure over pricing in the wake of a failed coup in the country.
S&PGlobal Ratings and S&P Global Market Intelligence are owned by S&PGlobal Inc.
Xana Kakoty, Ed Meza,Stephanie Salti, Meike Wijers, Jennifer Laidlaw, Helen Popper, Heather O'Brian,Thanasis Kakalis, Gerard O'Dwyer, Beata Fojcik and Ali Kayalar contributed tothis report.
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