* The EU's revised Markets in Financial Instruments Directive, or MiFID II, is expected to have a significant impact on about 20% of corporate and investment banking activities in Europe, the Middle East and Africa, according to research company Coalition. Total industry revenues in the region could drop approximately 2.6% as a result of the new regulations, which are set to take effect in January 2018.
* The EU could have plans for its own finance minister and a European Monetary Fund completed by 2019, according to the European Commission, as reformers see a chance to push ahead with integration amid booming economic performance in the bloc.
* Financial services executives said the arrival of open banking and the revised Payments Services Directive, or PSD 2, in 2018 will not hamper plans by major banks to enter the market for "do-it-yourself" investment management and may even help them.
UK AND IRELAND
* Prudential Plc has notified potential buyers of its intention to sell up to £13 billion of its £33 billion U.K. annuity business, insiders told Sky News. Bidders were reportedly asked to submit offers for one or more of the company's legacy book portfolios by Dec. 22.
* Ping An Insurance (Group) Co. of China Ltd. has raised its stake in HSBC Holdings Plc to 5.01% from 4.96%, making it the second-biggest shareholder in the British lender, the Financial Times reported.
* Saga Plc shares fell by more than 20% yesterday after it lowered its profit forecast, saying it expects group underlying pretax profit to grow by just 1% to 2% for the year ending Jan. 31, 2018, driven by more challenging trading in insurance broking and the collapse of Monarch Airlines, which impacted its tour operations business and caused a one-off cost of approximately £2 million.
* The U.K. government published a strategy paper setting out its long-term approach for the asset management industry, focusing on six areas of growth, including promoting the country's tax and regulatory environment, and advancing the development of asset management financial technology solutions. The FT covered.
* U.S. fund manager Federated Investors Inc. is considering a bid for U.K.-based Hermes Investment Management Ltd., an insider told Reuters. Other possible bidders for the British company include Australia's Challenger Ltd. as well as OM Asset Management plc and Eaton Vance Corp.
* Legal & General Group Plc said today in a trading update that it remains on track for a record year in 2017 with earnings and profits, with a Solvency II surplus of around £6.9 billion and a shareholder coverage ratio of 190% at the end of October.
* The U.K. Financial Conduct Authority fined Bluefin Insurance Services more than £4.0 million for misleading customers about its independence from 2011 to 2014, when it was still owned by Axa unit Axa UK Plc.
* Proxy advisory firm Institutional Shareholder Services has recommended that London Stock Exchange Group Plc investors oppose The Children's Investment Fund Management's bid to oust Chairman Donald Brydon from the company's board, Sky News reported.
GERMANY, SWITZERLAND AND AUSTRIA
* Credit Suisse Group AG estimates that it will take a CHF2.1 billion hit if a U.S. bill, which aims to sharply cut the country's corporate tax rate, is signed into law, while UBS Group AG expects CHF3 billion in write-downs on deferred tax assets, Reuters reported.
* After its record loss last year, Norddeutsche Landesbank Girozentrale does not rule out a capital injection from its owners, the states of Lower Saxony and Saxony-Anhalt, Handelsblatt wrote. While the bank's current capital ratio of around 12% puts the lender in safe territory, NordLB CEO Thomas Bürkle said it is "not enough."
* Joachim Faber is considering a re-election bid as Deutsche Börse AG chairman in 2018, followed by an early resignation in 2019, Handelsblatt reported. Faber faces criticism due to the company's failed merger bid with LSE and a criminal investigation that led to the resignation of Carsten Kengeter as CEO.
* Ulrich Schröder, CEO of German state development bank KfW, is stepping down Dec. 31 due to health reasons, according to Handelsblatt.
* Landessparkasse zu Oldenburg appointed Michael Thanheiser CEO, effective March 1, 2019, succeeding Gerhard Fiand, who will retire, Börsen-Zeitung noted.
FRANCE AND BENELUX
* Natixis
* In an interview with Les Echos, Standard Chartered Plc CEO Bill Winters said the number of workers in the bank's Paris office has doubled over the last three years, adding that the company aims to increase this number by a further 40% in the next few months.
* French regulator AMF concluded a settlement with BNP Paribas SA in relation to failings in the controls procedures in its London branch, Les Echos wrote. The bank will pay €390,000 as part of the deal.
* A Dexia SA extraordinary meeting will be held today for the conversion of preferred shares into common shares, according to L'Echo. During the financial crisis, the French and Belgian states injected €5.5 billion into the bank in exchange for preferred shares.
SPAIN AND PORTUGAL
* The Portuguese central bank is considering the possibility of tightening access to housing credit as a way to prevent banks from being exposed to a potential crisis, Dinheiro Vivo wrote.
ITALY AND GREECE
* Banca Carige SpA shareholders took up about 66% of the bank's €500 million cash call, Reuters wrote. The Italian lender said it has several accords with investment firms that are ready to take up unsold shares. Separately, the bank sold a portfolio of nonperforming loans valued at €1.2 billion and its debt-servicing platform to Credito Fondiario SpA.
* Banca di Credito Cooperativo di Cambiano SCpA and Banca di Pisa e Fornacette Credito Cooperativo carried out a securitization deal for residential mortgages with a total value of €704 million, MF said.
NORDIC COUNTRIES
* Iceland hired banks for the potential issuance of a five-year, euro-denominated international bond, marking the country's first foray into international debt markets since mid-2014, the FT wrote.
* The leaders of Denmark's five largest trade unions all denied plans to sell Arbejdernes Landsbank A/S, saying they needed a bank which can make money available if there is a strike, Berlingske Business reported.
* Nordea Bank AB (publ) is laying off nearly 10% of the employees in its capital market segment Nordea Markets, according to Dagens Industri.
EASTERN EUROPE
* The Russian finance ministry hopes to get back 75 billion Russian rubles of state budget funds spent on boosting the capital of Otkritie Financial Corp. Bank, B&N Bank and JSC GENBANK and written off following the launch of financial recovery procedures for the lenders, Interfax reported. The ministry continues negotiations on the matter with the Deposit Insurance Agency.
* The Russian central bank published detailed stress test scenarios for pension funds, which will become binding from February 2018, Kommersant said. After discussions with market participants, the regulator weakened some of the test requirements, but a number of pension funds will still have to withdraw from their high-risk investments or get capital boost from their shareholders, the paper noted.
* PAO Sberbank of Russia pension fund NPF Sberbank will acquire NPF VNIIEF-Garant, a pension fund controlled by entities affiliated with Russia's Rosatom State Atomic Energy Corp., Vedomosti reported.
* The Ukrainian banking sector could become marginally profitable in 2018, but still-high funding costs, impairment charges and weak loan growth will continue to constrain any improvements, Fitch Ratings said.
* The Romanian banking sector is in "robust" health, but some smaller firms are weak, according to the Romanian central bank, which ran a moderately adverse stress test.
* Turkish Deputy Prime Minister Mehmet Simsek said the U.S. Treasury has requested information regarding a Turkish bank in relation to a U.S. court case against Türkiye Halk Bankasi AS executive Mehmet Hakan Atilla, who is accused of conducting schemes designed to help Iran avoid U.S. sanctions, Reuters reported.
IN OTHER PARTS OF THE WORLD
Asia-Pacific: Ping An becomes 2nd biggest HSBC shareholder; India keeps rates steady
Middle East & Africa: Bahrain banks launch fintech firm; Ghana asks banks to submit bad loan plans
Latin America: Panama lands on EU blacklist; Banorte shareholders OK Interacciones deal
North America: California regulator seeks to suspend/revoke Wells Fargo licenses
North America Insurance: UnitedHealth's Optum inks $4.9B deal; Calif. wildfire could cost insurers $2B
NOW FEATURED ON S&P GLOBAL MARKET INTELLIGENCE
European banks brace for mortgage hit to capital as Basel IV deal nears: Global regulators look set to impose rules that could push down European lenders' capital ratios.
Leo Magno, Ed Meza, Danielle Rossingh, Esben Svendsen, Beata Fojcik, Heather O'Brian, Stephanie Salti, Sophie Davies and Mariana Aldano contributed to this report.
The Daily Dose has an editorial deadline of 7 a.m. London time. Some external links may require a subscription. Coalition is owned by CRISIL. S&P Global Market Intelligence and CRISIL are owned by S&P Global Inc.
