* Global investment banks have announced roughly 30,000 job cuts since April amid declining interest rates, weak trading volumes and automation, the Financial Times reported.
* European fund managers will likely see their 2019 profits slip about 6% year over year to €74 billion from €79 billion due to increased competition, outflows and the shift to cheaper passive trackers by investors, among other factors, the FT reported, citing an analysis by consultancy firm Prometeia.
* The European Securities and Markets Authority is working with banking lobby group Association for Financial Markets in Europe on the development of a system that catches failed transaction reports, Financial News reported.
* There is a 50% chance that the U.K. will leave the EU without a deal, up from a 40% prospect, due to a volatile political environment and tight timetable, according to French bank BNP Paribas SA, Reuters reported.
UK AND IRELAND
* U.K. Prime Minister Boris Johnson's government is preparing a bailout fund to aid businesses at risk of collapse if a no-deal Brexit occurs, The Times reported. The ministers have purportedly identified a list of high-risk U.K. employers, with construction and manufacturing sectors expected to be worst affected.
* Royal Bank of Scotland Group PLC is poised to name Alison Rose, currently head of commercial banking, as CEO to replace Ross McEwan, media outlets including Sky News and the FT reported. An official announcement could reportedly be made as early as this week, with Rose set to formally take over before year-end.
* The forthcoming split of Prudential PLC's U.K. business from its Asian and American operations is seen as the first step in a wider breakup of the company, analysts told the Financial Times. A timetable on the split could be expected along with the release of Prudential's first-half results on Wednesday, with the split expected to be completed as early as autumn.
* The U.K. Financial Conduct Authority has notified some authorized corporate director companies to prepare for a probe of the industry in the wake of the collapse of Neil Woodford's investment business, the Financial Times wrote.
* Legal & General Group PLC has acquired the creator of My Future Now, a pension dashboard service that enables users to trace old pension entitlements, for an undisclosed amount, according to The Times. Although still in a planning stage, a pension dashboard service enables a person's entitlement to be displayed in a single screen.
* Intermediate Capital Group PLC has tapped Goldman Sachs as an adviser to look at options to divest from debt enforcement firm Marston Group Ltd., sources told Bloomberg News. Proceeds from a sale could potentially reach £600 million.
* Burford Capital Ltd. said a preliminary review of the trading in its shares last week revealed evidence consistent with illegal market manipulation. The firms said it has notified regulators and authorities about the matter and is assessing its own options. Meanwhile, Daniel Yu, the founder of short seller Gotham City Research LLC, said Burford Capital is being inappropriately financed due to risks associated with litigation assets, Bloomberg reported. This follows a report by Muddy Waters LLC criticizing Buford's accounting practices. Buford has also been found as the financier of two shareholder class-action suits in Australia, according to The Guardian.
GERMANY, SWITZERLAND AND AUSTRIA
* Deutsche Bank AG is struggling to revive its equity capital markets business as it grapples to rebuild its reputation after recent scandals, Josef Ritter, head of equity capital markets for Europe, the Middle East and Africa, told the FT. Despite withdrawing from equities, the bank plans to keep its ECM business, with Ritter saying it has "to explain a lot to clients." The bank's first-half revenues from the businesses dropped 35% year over year.
* SIX Group AG CEO Jos Dijsselhof said the trading of Swiss shares on EU bourses must be restored in order for Swiss stocks to remain attractive, Reuters reported, citing Dijsselhof's interview with NZZ am Sonntag. Switzerland and the EU ended access to each other's exchanges in July amid a row on a partnership treaty.
FRANCE AND BENELUX
* Dutch insurer Aegon NV proposed to appoint Lard Friese CEO to replace Alex Wynaendts during the firm's general meeting next year. Friese will join Aegon as CEO-designate on March 1, 2020. He is currently CEO of NN Group NV, which will be taken up by David Knibbe, currently CEO of NN Netherlands.
* Dutch lender ING Groep NV has commenced a review of its euro-denominated government bond business, with plans to cut staff at its London-based trading team, a spokesman told Reuters. The bank will also exit dealing in Belgium, confirming a statement from the Belgian Debt Agency that the bank will stop the business beginning Sept. 1.
* The average daily transaction value on Euronext NV's cash-order book amounted to roughly €7.20 billion in July, down 14.9% from June and 10.5% from a year ago. The average daily volume on equity index derivatives stood at 212,720 contracts, up 2.3% year over year.
SPAIN AND PORTUGAL
* Two court sentences handed out in June and July ruled that Banco Santander SA must return €40,000 to two former Banco Popular Español SA clients who invested in the shares of the entity shortly before it was sold to Santander, Europa Press reported.
* Moody's affirmed Portugal's long-term domestic- and foreign-issuer and senior-unsecured ratings and revised the outlook on the ratings to positive from stable, owing to decline debt and further and sustained improvement in the local banking sector.
* Portugal's central bank decided to revoke the authorization of Orey Financial SGPS SA to operate in the country, and submitted a related request to the ECB, Jornal de Negócios reported. The regulator said the move took into account the fact that the financial institution does not take customer deposit and has no significant presence in the market.
ITALY AND GREECE
* Matteo Salvini, the head of Italy's League party and deputy prime minister, said leaving the eurozone was not on the agenda, Reuters reported. His comments followed a La Repubblica report that Salvini, who has called for snap elections after pulling the plug on the coalition government, was preparing to campaign on an anti-Europe ticket and could pull Italy out of the single currency bloc if no budget compromise can be reached with the EU. Salvini has summoned all allied lawmakers to a meeting today as he seeks a no-confidence vote against the 5-Star Movement as early as this week, a move that could trigger snap elections and his appointment as the country's new leader, Reuters reported.
* Banca Carige SpA's temporary administrators and a consortium of investors — the Italian Interbank Deposit Protection Fund, Cassa Centrale Banca - Credito Cooperativo Italiano, Società per la Gestione di Attività and other investors — have agreed on a binding framework for the troubled lender's rescue, through a €700 million share capital increase and a €200 million issue of new subordinated bonds. Carige said the plan would allow it to trim its nonperforming exposure ratio to less than 5% and raise its total capital ratio to over 15% over the next few years.
* Società Cattolica di Assicurazione SC CEO Alberto Minali told Milano Finanza that the insurer could potentially sell assets and carry out a capital increase to help fund an eventual bancassurance joint venture with Unione di Banche Italiane SpA, for which it presented a nonbinding offer. Analysts expect the UBI bancassurance transaction to be worth a total of €1 billion, meaning that a buyer will need some €600 million to €700 million for the 60% to 70% stake being sold in the business.
* Pope Francis has approved new statues governing Istituto per le Opere di Religione, or the Vatican Bank, that would subject the bank under an external audit and prohibit employees from holding other posts in other companies, among other things, Reuters reported. The number of members of the bank's lay board of supervisors has also been increased to seven from five to improve oversight of the lender.
* Prosecutors in Estonia had ordered a local court to confiscate in July roughly €2 million from a Latvian bank account belonging to a former Danske Bank A/S employee, who was one of the 10 individuals arrested last December, Reuters noted. The move forms part of an investigation into alleged money laundering in the Danish lender's Estonian branch.
* Danish financial regulator Finanstilsynet has instructed five of Denmark's largest banks — Nordea, Jyske Bank, Nykredit, Sydbank and Spar Nord — to present detailed explanations about how they comply with existing rules and regulations governing customer-centered investing and investment schemes, Berlingske reported.
* Fitch Ratings upgraded Russia's long-term foreign- and local-currency issuer default ratings to BBB from BBB-, with a stable outlook.
* The Russian central bank said U.S. sanctions imposed on Russia at the beginning of August do not pose a significant threat for the state eurobond market as Russian banks hold sufficient foreign-currency liquidity to purchase potential new eurobond issues, Reuters reported.
* Russian insurer AlfaStrakhovanie PLC is involved in talks to acquire local insurance company Nadezhda and applied with the Russian Federal Antimonopoly Service to secure an approval for the potential deal, Vedomosti reported.
* A swap transaction facility launched by the Turkish central bank could be an additional liquidity source for lenders and lessen their dependence on foreign funding, an insider told Bloomberg News. The facility would have local banks place foreign-currency with the central bank in exchange for lira funding, a move that could also improve the country's foreign-currency reserves.
IN OTHER PARTS OF THE WORLD
Asia-Pacific: HSBC Greater China chief quits; 400,000 NAB customers eligible for class action
Middle East & Africa: KCB bets on South Sudan; S&P lifts Rwanda; Mozambique's debt scandal crackdown
NOW FEATURED ON S&P GLOBAL MARKET INTELLIGENCE
Italian banks face expensive funding, volatile economy as snap election looms: With a snap election on the cards, Italian banks will have to contend with expensive funding and a more volatile economy, according to Scope Ratings.
OTP Bank may hike dividends from 2020 as M&A spree peters out: The Hungary-based lender has no new acquisition plans after it closes the two deals remaining in its current pipeline, CFO László Bencsik said, and if growth remains strong, the bank may hike dividends soon with a policy update coming in early 2020.
S&P Ratings: Reinsurers face tough decision on cat risks if prices keep rising: The rating agency said the top 20 reinsurers' responses to rising property-catastrophe prices is already diverging as they grapple with whether to increase their exposure to capitalize on the higher rates, or be more defensive and cut back.
Sheryl Obejera, Ed Meza, Danielle Rossingh, Gerard O'Dwyer, Beata Fojcik, Heather O'Brian, Stephanie Salti, Sophie Davies and Mariana Aldano.
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