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UK Brexit secretary resigns; TSB future with Sabadell in doubt

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UK Brexit secretary resigns; TSB future with Sabadell in doubt

UK AND IRELAND

* Brexit Secretary David Davis has resigned from the U.K. government, Bloomberg News and BBC News reported. His resignation comes days after U.K. Prime Minister Theresa May secured backing for her Brexit plan, saying her cabinet reached a "collective position" on a blueprint for the country's economic ties with the EU after Brexit.

* Some members of Spanish bank Banco de Sabadell SA's leadership are reassessing whether TSB Banking Group PLC still has a future as part of the group, following the latter's botched IT upgrade, the Financial Times wrote, citing sources close to the companies.

* British asset manager River & Mercantile Group PLC said it reduced its provision for a competition probe by the U.K. Financial Conduct Authority to £109,000 from a previous £1 million.

* AIB Group Plc's overall capital requirement will rise by 0.71% based on current exposures, following the Irish central bank's application of a 1% countercyclical buffer from July 5, 2019. The new regulation has no impact on Bank of Ireland Group PLC's capital guidance, but will add about 60 basis points to its capital requirement.

* Aviva Investors hired a number of executives from Standard Life Aberdeen PLC, including Mikhail Zverev as the Aviva PLC unit's head of global equities and Alistair Way as head of its global emerging market equities, the Financial Times reported.

* London Stock Exchange Group PLC and Japan Exchange Group Inc. agreed to cooperate in a push for environmental, social and governance investing, The Nikkei reported.

* A spokesman for Aberdeen Standard Investments said the U.K. asset management firm is venturing into investment in Cuba, according to Reuters. The firm is set to manage Cuban property fund Ceiba Investments once the latter is listed on the London Stock Exchange, which would mark Aberdeen Standard's first experience of managing investment in Cuba.

* Barclays PLC intends to increase its limit on unsecured lending to small businesses to £100,000 from £50,000 as part of efforts to help boost profitability, City A.M. reported.

* Ray Stenton, head of new business at NorthEdge Capital LLP, said the U.K. private equity firm has raised £120 million to invest in smaller start-up businesses in a bid to fill a funding gap in that market, the Financial Times reported.

GERMANY, SWITZERLAND AND AUSTRIA

* Swiss stock exchange operator SIX Group AG said it is building a fully integrated trading, settlement and custody infrastructure for digital assets, with the first services expected to be launched in mid-2019.

* Munich Re Co. will continue to underwrite coal-related businesses, Reuters reported, despite a number of some major investors wanting the company to follow the example of Swiss Re AG and reduce its coverage of the coal industry to encourage the transition away from the energy source, which is a top producer of greenhouse gases.

* Deutsche Bank AG's share price jumped more than 4% on July 6 after German business magazine Wirtschaftswoche reported that JPMorgan Chase & Co. and Industrial & Commercial Bank of China Ltd. were considering investing in the troubled German lender. Insiders also told the magazine that German Chancellor Angela Merkel had sought an expert view on Deutsche's situation from Axel Weber, formerly president of Germany's central bank and current chairman of Swiss bank UBS Group AG. The report was denied by both the German federal government and JPMorgan, however.

* Credit Suisse Group AG appointed Antoinette Poschung to serve as conduct and ethics ombudswoman, a new role aimed at leading the bank's response to cases of sexual harassment, CEO Tidjane Thiam told the group's employees.

FRANCE AND BENELUX

* U.S. asset manager BlackRock selected Paris rather than London as its new base from where it will offer alternative investment services across Europe and Asia, the Financial Times reported.

* Following a Dutch court judgment, insurer Achmea BV increased its tax provisions on earnings from its divestment of a stake in Polish insurer PZU SA by €35 million to €233 million. Achmea believes that the €1.2 billion of the overall €4.2 billion that it earned from the stake sales in 2009 and 2010 should be exempt from Dutch corporate tax, but the court ruled that just €248 million qualified for such treatment.

SPAIN AND PORTUGAL

* Banco Bilbao Vizcaya Argentaria SA has completed the sale of the 68.19% stake it owned in BBVA Chile to Scotiabank for about $2.2 billion. The transaction was first announced in November.

* Portuguese investment bank Banco Invest SA posted a lower net profit in the first financial quarter of the year, hampered by impairments for nonperforming loans, but its net interest income is being boosted by its entry into the vehicle financing market, Jornal de Negócios reported.

* Portugal's Febase banking trade union has threatened to call a nationwide strike due to a deadlock in wage negotiations, the official Lusa news agency reported.

ITALY AND GREECE

* Francesca Balzani resigned from the board of directors of Banca Carige SpA, Il Sole 24 Ore reported. The paper also noted that a Genoa court sentenced former Chairman Giovanni Berneschi to 8.5 years in a trial for fraud in the insurance business of the bank for which other eight people were also standing trial. Reuters also covered.

* Milan magistrates dismissed charges against Alessandro Profumo and Fabrizio Viola, respectively the former chairman and CEO of Banca Monte dei Paschi di Siena SpA, who were facing allegations of obstruction to supervisory powers, most dailies including Il Sole 24 Ore reported.

* Six offers from investors, including Credito Fondiario SpA and Elliott Management Corp. as well as Pimco and Phoenix Investment Partners, are expected for Italian lender Banco BPM SpA's debt collection business and its remaining bad loans, insiders told Reuters.

* U.S. alternative investor Cerberus Capital Management LP and its affiliates agreed to acquire a 57% share of Officine CST S.p.A., an Italian provider of credit management services, from founder and CEO Gianpiero Oddone and other shareholders. Oddone will continue as CEO and retains a 28% stake in Officine.

NORDIC COUNTRIES

* Leading tech company start-up entrepreneur David Helgason is severing all business ties with Danske Bank A/S, according to Dansk Radio. He attributed the action to the escalating controversy surrounding investigations into money laundering at Danske Bank Estonia, telling the bank in a letter that he was taking a "principled stance" and warning about long-term reputational damage at the bank.

* Skandinaviska Enskilda Banken AB is primed to launch a recruitment drive exclusively focused on hiring digital technology specialists, Göteborgs Posten reported. This forms part of the bank's drive to accelerate the digitization of products and services; the first stage will see SEB recruit an initial 100 digital system engineers and other specialists.

EASTERN EUROPE

* Polish banks earned a total of 6.44 billion Polish zlotys for the first five months of 2018, up 24.5% year over year, Rzeczpospolita wrote. Net interest income grew by 9.1% to 18.59 billion zlotys, although fees and commissions income fell by 1.7% to 5.55 billion zlotys.

* Polish stock exchange operator Gielda Papierów Wartosciowych w Warszawie SA and Tel Aviv Stock Exchange signed a letter of intent to deepen technological cooperation and jointly explore innovative business opportunities, Rzeczpospolita reported.

* Zagrebacka Banka d.d. finalized the sale of a €245.7 million portfolio of retail and corporate nonperforming loans to B2 Kapital, the Croatian unit of Norway's B2Holding ASA, SEENews reported.

IN OTHER PARTS OF THE WORLD

Asia-Pacific: New Zealand to tighten capital adequacy rules; Indian bank to sell sour debt

Middle East & Africa: VBS Mutual Bank faces bribery claims; Bank of Israel governor to step down

Latin America: Peru seeks Agrobanco absorption; CEO successor seen in Banco do Brasil shakeup

North America: JPMorgan to relocate dozens of staff ahead of Brexit; 2 Nebraska banks to merge

Global Insurance: Interest rates could hit solvency; Munich Re sticks with coal; Allianz flow woes

NOW FEATURED ON S&P GLOBAL MARKET INTELLIGENCE

More deals set to follow Generali's German life insurance sale: Run-off specialists such as Viridian will manage more than half the closed life insurance business by 2022, ratings agency Fitch estimates.

Deutsche's low market cap fuels investment talk, shares rise: The troubled German lender's share price jumped more than 4% after a report that JPMorgan Chase and Industrial & Commercial Bank of China were considering investing in it.

Ben Meggeson, Ed Meza, Meike Wijers, Gerard O'Dwyer, Beata Fojcik, Yael Schrage, Stephanie Salti, Sophie Davies and Helen Popper contributed to this report.

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