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Spotlight on Commerzbank capital cushion; H1 profit tumbles at Man; new UniCredit execs


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Spotlight on Commerzbank capital cushion; H1 profit tumbles at Man; new UniCredit execs

Reinsurancepricing floor could be in sight: Analysts at MacquarieResearch said the surge in catastrophe losses during the second quarter mayhelp enforce a reinsurance pricing floor at the renewal season in January 2017,Artemis writes.

* S&P Global Ratings said yesterday that the Brexit vote"dramatically raised" the level of uncertainty on the future of boththe U.K. and the EU. S&P Global Chief Economist Paul Sheard said the bloc'scurrent structure is "unsustainable" and should be transformed into amore "natural, coherent and consistent" form.


H1profits drop at Man Group and JLT: this morning reportedfirst-half statutory profit attributable to owners of the parent of $49million, compared to $130 million a year ago, as performance fees fell to $40million from $200 million.

* Also this morning, Jardine Lloyd Thompson Group Plc reported first-halfprofitattributable to owners of the parent of £33.3 million, down from £73.9 millionin the year-ago period.

* The U.K. Parliament's Treasury Committee said Britainneeds a new financial regulator focused on penalizing wrongdoing andrecklessness to regain public confidence and avoid another instance of the"inadequate" response to the near-collapse of HBOS Plc, Bloomberg News writes.The new watchdog should operate independently from the Bank of England'sPrudential Regulation Authority and the Financial Conduct Authority. The Guardian, Reutersand The Daily Telegraph also have reports.

* The British government indefinitely suspended paymentsfrom the £3 billion European Regional Development Fund due to be released tobusinesses, days after the country voted to leave the EU, The Independent says.

* Royal Bankof Scotland Group Plc and unit National Westminster Bank Plc warned that they may needto charge business and commercial customers interest on their credit balancesdue to very low interest rates, BBC News reports. Sky News also covers.

* HSBCHoldings Plc has held talks to sell its Lebanon-based unit to Lebanese lenderBLOM BANK SAL.

* Jonathan Beebe, who most recently served as head of globalequities liquid markets at Barclays Plc, is leaving to "take a break from theindustry," accordingto Bloomberg News.


HigherRWAs trim Commerzbank's capital cushion: reportedpreliminary net profit attributable to shareholders of €209 million in thesecond quarter, down from €307 million a year ago. The preliminary fully loadedcommon equity Tier 1 ratio under Basel III fell to 11.5% at June 30 from 12.0%at March-end, mainly due to higher risk-weighted assets, in particular foroperational risks, and higher pension liabilities.

* The Bundesbank is conducting a reviewof 1,500 sparkassen, Volks- und Raiffeisenbanken and small private banks,Spiegel Online reports. The survey is seen as "a slimmed-down stresstest" for smaller banks. The results of the survey, initiated by theBundesbank and Bafin, are set to be published in the second half of 2017.

* Deutsche Bank AG must face a lawsuit oversubprime disclosures, Reuters reports. A U.S. judge on Monday allowed part of a lawsuit that claims Deutsche Bank deceived investors thatbought more than $5.4 billion of preferred securities by concealing its exposureto the subprime mortgage market.

* Former Deutsche Bank Americas M&A head will join . Deutsche Bankpromoted Charlie Dupree to succeed Ratigan.

* UNIQA Versicherungsverein Privatstiftung is in advancednegotiations toacquire part of RaiffeisenZentralbank Österreich AG's stake in UNIQA Insurance Group AG. A deal to sell a 17.64% stakein UNIQA comes as RZB attempts to simplify its corporate structure.

* Julius BärGruppe AG recruited morethan 200 relationship managers this year as itseeks to expand its asset management operations, Börsen-Zeitung reports. Half the new hires were in , the Financial Times says. CEO Boris Collardi also said the group could afford toacquire a lender with AUM of up to CHF15 billion without raising additionalcash, Reuters reports.


Lifeinsurance takes a beating in France: In June, life insurance netinflows were €800 million in France, the worst performance in the last 18months, Les Echos says,citing figures from the French federation for insurance.

* Online brokers BinckBank NV and Keytrade Bank SA recorded a 30% decline in the number oftransactions in Belgium during the first quarter as a result of theintroduction of the speculation tax, accordingto L'Echo.

* Luxembourgian Deputy Prime Minister Etienne Schneider said thecountry intends to partner with the U.K. following Brexit, and not take Britishfinancial firms away from the U.K., Reuters writes.


SantanderConsumer tumbles on earnings report delay: Shares in , 'sU.S.-based car financing unit, fell on Monday after the company saidit would delay the release of its second-quarter results because it had not yetcompleted its financial statements. The company said there could be an impacton previous financial statements.

* Shareholders of Bankia MAPFRE Vida SA de Seguros y Reaseguros approvedits merger with insurers Aseval and Laietana Vida, Europa Press reports.The two companies will be merged into Bankia MAPFRE Vida.

* António Domingues, incoming CEO of Portugal's state-run lender , hasasked former PT director Pedro Leitão and ex-Banco Santander director ÁngelCorcostegui to join the new management team, accordingto Expresso. Herbert Walter, former CEO of Dresdner, is set to join as a nonexecutivedirector, Jornal de Negócios says, adding that the finance ministry has asked the current administration at the lender to stay in theirposts beyond the official July 31 endof their term due to delays in appointing their replacements, partlydue to consultations with the ECB.


Management overhaul at UniCredit:New UniCredit SpAchief Jean Pierre Mustier will present a new management team in anextraordinary board meeting today, with corporate and investment bank head andDeputy General Manager Gianni Franco Papa to become the bank's sole generalmanager and Strategy and Finance Head Marina Natale and COO Paolo Fiorentino —both now deputy general managers — replaced by internal candidates, Il Sole24 Ore says. Italy countryChairman Gabriele Piccini is also set to lose his job.

* Specialist Italian pension funds are considering a requestto invest €500 million in a new fund, Atlante 2, that is being set up toacquire nonperforming loans and is expected to help acquire some of the €10billion in net NPLs on the books of Banca Monte dei Paschi di Siena SpA, Reuters says.

* Meanwhile, Monte dei Paschi shares fell 8.4% in Milantrading amid continued uncertainty on its planned disposal of NPLs and asubsequent capital increase, MF writes.

* Separately, following reports that has beenasked to invest in Monte dei Paschi, a UBI spokesman tells Reuters that amanagement board meeting scheduled for today does not have Monte dei Paschi onthe agenda.

* Bain Capital is close to acquiring the so-called bad bankof Hypo Alpe-Adria-BankSpA, known as Heta Asset Resolution Italia, along with Heta's €657million in gross NPLs, Il Sole 24Ore says.

* National Bank ofGreece SA said the Greek state is no longer represented in thebank's board as the lender completed the full repayment July 22 of governmentbonds, Euro2day writes.


NoDanes in Nordea's Panama Papers shutdown: Therewere no Danish nationals among the 68 clients that had their bank accountsblocked by Nordea Bank AB(publ) following an internal probe in the wake of the Panama Papersleak, Børsen writes.

* Sweden's EconomicCrime Bureau is considering overhauling its investigation and criminalprosecution systems and procedures in the wake of a number of high-profilecases that exposed serious deficiencies in skills and resources, Dagens Nyheter reports.


NCB looks to strengthen holdon Türkiye Finans:National CommercialBank is eager to buy Boydak Group's 22.34% stake in , FinansGündem writes,citing Ekonomist. The Saudi Arabianlender already holds 67% of the Turkish bank.

* Swiss authorities froze assets of Sergei Pugachev, the owner ofcollapsed Russian lender ZAOInternational Industrial Bank, Vedomosti and Kommersantreport. saysPugachev is accused of having laundered some $700 million via a Genevabranch. The investigation is based on the Panama Papers revelations.

* PAO Rosgosstrakh filed an application with the Russian Association of Motor Insurers to join an agreement on the agency sale of compulsorymotor insurance in Russian regions where sale of these products is limited dueto losses they generate for insurers, Vedomostireports. Kommersantadds that eight insurersdid not sign the agreement and will have to exit the compulsory motor insurancesegment.

* The Russian centralbank intends to introduce additional requirements for auditors checking thestatements of banks and other financial institutions, Kommersant reports.

* Poland will introducenew accounting rules for local credit and savings unions as of 2017, Rzeczpospolita reports. The new rules have already been criticized by Polishfinancial supervisors as being too soft and potentially helping the unions to artificially boost their financial results.

* The insolvency administrator of Czech mining company OKD rejectedtwo creditor claims amounting to around 10 billion koruny filed against thefirm by Citibank's Czech unit, CTK reports. The administrator did not say why the claims wererejected.


Asia-Pacific: Julius Bär hires 200 managers in Asia; Dai-ichi Life to openCambodian office

Middle East & Africa: Saudi group, banks ink key debt restructuring deal; Fitch acts onEMEA sovereigns

Latin America: Bradesco plans to create corporate debt restructuringdivision

North America: First Hawaiian IPO pegged at $3B-$4B; 2 Tenn. banks to merge

North America Insurance: Higher cat losses, pricing pressure to hit US P&C insurers in'16; Ironshore files for IPO


Attijariwafaeyes Barclays Egypt but faces competition: With bids for Barclays'Egypt business due at the end of August, Morocco's Attijariwafa Bank willattempt to continue an expansion across Africa it started in 2005, with anEgyptian footprint that has eluded it.

MAPFRE looksahead to Spanish motor recovery, but foreign markets give cause forconcern: The Spanish motor insurance market is showing signs ofrecovery, which is expected to feed through to MAPFRE's bottom line, butconcerns about some foreign exposures won't be allayed during the insurer'snext few quarterly earnings seasons, experts say.

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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