Following
the resignation of Dave Forsey, the founder of Sports Direct is
taking over as the sports retailer's chief executive officer.
Forsey's departure from the troubled firm follows months of mounting
criticism of their working practices and corporate governance by
shareholders, unions and politicians. Sports
Direct’s share price, which has taken a battering over the past 12
months during which time the company fell out of the FTSE 100, was up
nearly 5% on Friday morning following the announcement of Forsey’s
departure, to about 300p.
On
Thursday, Yahoo revealed that it has suffered from what could be the
biggest data breach in history. The breach could have wider
implications, jeopardising Yahoo's recent deal with Verizon, its
future parent company, costing it hundreds of millions of dollars.
Treasury
minister Lord O'Neil has resigned from the government. The former
Goldman Sachs boss was commercial secretary for 18 months and was a
key figure in pushing the Conservative's Northern Powerhouse agenda.
He is also a key advocate of the UK forging strong links with China.
In his resignation letter, he said that the case for global trade
ties and English devolution is stronger than ever.
Kristen
Forbes, an external member of the Bank of England's nine-person
Monetary Policy Committee, has indicated that she is not inclined to
vote to cut interest rates still further later this year. She cited
the better than anticipated performance of the UK economy following
the Brexit vote. She argued in a speech on Thursday that the economy
had been “less stormy than many expected” followed the shock
result of the referendum.
Britain's
HSBC is seeking to release billions of dollars of capital tied up in
the United States without upsetting the country's politicians and
regulators, senior sources at the bank said. HSBC, which has been in
the sights of U.S. regulators over breaching anti-money laundering
rules, has more than $20 billion
of capital in the U.S.
earning a slim 1% return, of which up to half could be returned to
the holding company via asset sales, analysts and investors say.
Mark
Carney, governor
of the Bank of England, is backing the fledgling market in green
investments to help cut carbon emissions and
boost global economic growth. Carney
used a speech in Berlin on Thursday to highlight green finance as an
opportunity to boost financial stability while tackling climate
change. He said that
more of the $100 tn held by big global investment firms could be
channelled into green bonds to help finance initiatives aimed at
reducing carbon emissions.
Global
investors pulled $7.4 billion (£5.69 billion) from equity funds in
the week to Wednesday, the largest outflow in around three months, as
uncertainty over U.S. and Japanese monetary policy unnerved stocks,
Bank of America Merrill Lynch (BAML) said on Friday. A spike higher
in longer-dated bond yields had caused yield curves in the United
States, Japan and Germany to steepen over the past two weeks,
prompting the redemptions from European, U.S. and emerging markets
stocks funds. Although there was little expectation that the U.S.
Federal Reserve would raise rates at its Sept. 20-21 meeting,
investors erred on the side of caution and parked $15.6 billion in
money market funds in the run up to the Fed decision.
Profits
at the Co-op Group more than halved to £17m in the first six months
of the year. It has also cut the value of its 20% stake in the Co-op
Bank by £45m. The bank said in April it would remain unprofitable
for about two years because of tough trading. Co-op group chief
executive Richard Pennycook said the fall in profit "was
expected and planned" due
to its restructuring
programme. The group announced a £1bn three-year Rebuild programme
in 2014.
In
Other News
- Transatlantic trade war in the offing after Boeing claims victory following WTO ruling on Airbus's EU subsidies – http://www.telegraph.co.uk/business/2016/09/22/transatlantic-trade-war-in-the-offing-after-boeing-claims-victor/
- Frankfurt investment chief woos London bankers in Brexit business pitch – https://www.theguardian.com/world/2016/sep/22/frankfurt-in-front-the-city-poised-to-become-londons-gateway-to-europe
- FTSE retreats, Polymetal slumps – http://uk.reuters.com/article/uk-britain-stocks-idUKKCN11T0SR
- Wall Street rises as Federal Reserve looks to raise rates this year – http://www.telegraph.co.uk/business/2016/09/21/japanese-shares-jump-as-bank-of-japan-overhauls-stimulus-package/
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