Swedbank CEO fired amid money laundering allegations
Swedbank has dismissed its chief executive Birgitte Bonnesen amid money laundering allegations.
The Stockholm-based bank announced Bonnesen’s departure ahead of its Annual General Meeting on Thursday.
She is set to be temporarily succeeded by Anders Karlsson as it sees out the fallout from the allegations.
The decision came after “enormous pressure” had been put on the bank in the wake of the scandal.
“The developments during the past days have created an enormous pressure for the bank,” the Swedbank chairman, Lars Idermark, commented.
He continued: “Therefore, the board has decided to dismiss Birgitte Bonnesen from her position. With that said, Birgitte Bonnesen has during her three years as CEO made an important contribution by creating a leading digital bank with physical presence.”
Swedbank was raided on Wednesday by Swedish authorities over allegations of aggravating fraud and violating law relating to insider information. It is also set to face an investigation by US regulators over the claims.
Swedbank is a Nordic-Baltic bank which is based in the Swedish capital of Stockholm.
It was founded back in 1820, nearly 200 years ago, it now one of Sweden’s largest lenders.
Shares in the embattled bank (STO: SWED-A) are currently down -3.70% was of 13:54PM (GMT) on the back of the announcement.
Goldman Sachs fined £34m by city watchdog
Goldman Sachs has been dealt a £34.3 million penalty by the Financial Conduct Authority (FCA), as a result of historic reporting failures at its London unit.
The FCA identified “serious and prolonged failures” in its reporting of transactions over the course of 10 years.
The fine is the largest the city watchdog has imposed thus far, in relation to transaction reporting shortcomings as determined under the European Mifid legislation.
Mark Steward, the head of enforcement at the FCA, commented on the decision: “The failings in this case demonstrate a failure over an extended period to manage and test controls that are vitally important to the integrity of our markets. These were serious and prolonged failures. We expect all firms will take this opportunity to ensure they can fully detail their activity and are regularly checking their systems so any problems are detected and remedied promptly, unlike in this case.”
Meanwhile, Goldman Sachs issued a statement addressing the penalty:
“We are pleased to have resolved this legacy matter. We dealt with the issues proactively at the time and have made significant investments across the period to develop and enhance our reporting procedures.”
Because Goldman Sachs cooperated with the FCA’s proceedings, the bank received a 30% discount on the fine, otherwise the fine would have totalled £49,063,900.
Shares in the investment bank (NYSE:GS) are currently steady during pre-market trading as of 13:04PM (GMT).
WOW Air suspends flights amid financial difficulties
Icelandic low-cost airline WOW Air has grounded its flights leaving thousands of passengers stranded on Thursday morning.
The heavily in debt airline has been searching for a financial backer for the past few months. According to the Independent, the airline is believed to owe roughly £150 million.
The carrier operates between Iceland, Europe and North America. Founded in 2011 by entrepreneur Skúli Mogensen, it employs roughly 1,000 people.
In a statement published on its website the Icelandic carrier said that it was in the final negotiation stages with a group of investors.
“WOW air is in the final stages of finalising equity raise with a group of investors. All flights have been postponed until documentation with all parties involved have been finalised,” the message read.
It said that further information will be delivered at 9 am local time, which is 10 am GMT.
The company informed all of its passenger via text message/email. It said that passengers scheduled to fly to and from Iceland with the airline on Thursday are entitled to cancelling their reservation for a full refund, or change their flight to the next available WOW air flight.
The suspension of flights disrupts the travel plans of thousands of its passengers. It still remains unclear how long the disruption is set to last.
Elsewhere in aviation, EasyJet (LON:EZJ), Delta Air Lines (NYSE:DAL) and Italy’s state controlled railway entered in discussion to form a consortium in order to rescue the struggling Italian carrier, Alitalia.
Ryanair (LON:RYA) posted a loss for its third quarter, joining a list of airlines facing rising costs and overcapacity that are both weakening margins.
Equally, Hungarian Airline Wizz Air (LON:WIZZ) saw its profits plummet in the third quarter of 2018 amid rising fuel and staff costs.
Canopy Growth backs Seth Rogen’s cannabis brand
Actor, stand-up comedian, writer, producer and director Seth Rogen has partnered with Canopy Growth Corporation (TSE:WEED) to launch a new cannabis brand in Toronto – Houseplant.
Canopy Growth Corporation said in a statement that “it is pleased to welcome Houseplant, a new brand of Canadian cannabis, to the Canopy Growth family today.”
“Founded by Seth Rogen and Evan Goldberg, Houseplant represents years of product expertise and an unmatched attention to detail within each strain that has been carefully selected and grown,” it continued.
According to Houseplant, Canopy Growth Corporation owns 25% of the business.
“We could not be more excited to partner with Seth, Evan and the entire Houseplant team. Together we will make Houseplant a cannabis brand synonymous with quality everywhere it is available,” Mark Zekulin, President and Co-CEO of Canopy Growth Corporation commented.
The 36-year-old Pineapple Express star is not the only celebrity active in the cannabis industry. Snoop Dogg, who recently invested in a Swedish fintech start-up, has a venture capital firm named Casa Verde. It is best known for adding cannabis companies to its portfolio.
As countries around the word begin to change their perception of, and policies regarding, the drug, cannabis is emerging as one of the hottest sectors to invest in.
In Canada, where Seth Rogan’s Houseplant will be based, the use of medical cannabis has been permitted since 1999. As for the United States, cannabis for medical reasons is legalised in 29 states.
Over in Europe, countries have begun decriminalising usage of the drug for recreational purposes, but it is still illegal in the UK for recreation use. Medically speaking, however, the British government has begun making certain exemptions that allow specialist GPs to prescribe cannabis.
At 16:00 GMT -4 yesterday, shares in Canopy Growth Corporation (TSE:WEED) were trading at -3.75%.
Churchill China raises dividend amid strong 2018 results
Churchill China (LON:CHH) raised its final dividend after a strong set of results for 2018, sending shares up during Wednesday morning trading.
The hospitality ceramic manufacturer said that group revenue for the year to December-end was up 7% to £57.5 million, compared to £53.5 million reported a year ago.
Meanwhile, profit before tax and exceptional items rose 26% to £9.4 million, up from £7.5 million in 2017.
Adjusted earnings per share jumped 26% to 69.6p.
As a result, the company proposed a final dividend of 20.3p, up 18%
Churchill China said that overall its hospitality revenue growth increase by 10%, up 2% from a year ago.
In addition, group export revenues rose 17%, with exports now representing 60% of total group revenue.
Alan McWalter, Chairman of Churchill China, commented on the results:
‘2018 has been a very successful year for Churchill, we have exceeded our expectations in relation to business and financial performance. 2019 has started well and we believe that we can make further progress.’
Churchill China has been listed on the London Stock Exchange as of 1994. It is a constituent of the junior aim market.
Shares in the company are currently trading +4.59% as investors react to the latest results.
Brexit: uncertainty prevails two days before original departure date
With only two days until the official Brexit departure date, the outcome of Brexit still remains uncertain.
Theresa May is expected on Wednesday to reveal her own departure date from her position, paying the price for the approval of her formerly twice-rejected Brexit deal.
Jacob Rees-Mogg has now suggested that he will back Theresa May’s Brexit deal, after he admitted that “the choice seems to be Mrs May’s deal or no Brexit.”
The British government has, however, rejected the online petition which demanded the revocation of Article 50, collecting over 5.8 million signatures.
“It remains the Government’s firm policy not to revoke Article 50. We will honour the outcome of the 2016 referendum and work to deliver an exit which benefits everyone, whether they voted to Leave or to Remain,” the department for exiting the EU said in a response to the petition.
“Revoking Article 50, and thereby remaining in the European Union, would undermine both our democracy and the trust that millions of voters have placed in government.”
Today the Commons will hold a debate and vote on up to 16 alternative Brexit options.
“The prime minister might get a deal over the line on Thursday or Friday,” said the Conservative former cabinet minister Oliver Letwin. “If she does, no one would be happier that I am,” he continued.
“If, however, that doesn’t happen and if we do go forward to Monday, and if on Monday one or more propositions get a majority backing in the House of Commons, then we will have to work with the government to get the government to implement them.”
Last Friday the Prime Minister was granted a Brexit delay until 22 May only if MPs approve the negotiated deal this week. If the negotiated deal with the EU is not approved by MPs, Britain will have until 12 April to offer a new plan or crash out of the EU without a deal.
The GBP/USD has stabilised around 1.3200 ahead of Parliament’s vote on the 16 Brexit alternatives.
As how, when or if the nation will even leave in the first place all remain unanswered questions, uncertainty prevails.
Sports Direct announces potential £61.4 million Debenhams bid
Sports Direct (LON:SPD) announced on Wednesday that it was considering taking full control of Debenhams (LON:DEB) in a £61.4 million bid for the struggling department store.
Shares in Debenhams plc surged over 50% following the announcement.
The announcement comes after weeks of back and forth moves between the two businesses.
Currently, Mike Ashley’s Sports Direct owns almost 30% of Debenhams. However, last week Debenhams revealed potential restructuring plans that could wipe out its existing shareholders, threatening Sports Direct’s stake in the business.
Brandes Investment Partners, Odey Asset Management and Landmark Group also hold significant stakes in the business.
Last week the department store chain saw its fifth-largest investor call it quits after Invesco Asset Management confirmed it had sold its almost 5% stake in the business.
Sports Direct said on Wednesday that it was now considering making an offer of 5p per share for the department store. This is more than double its closing share price on Tuesday of 2.2p.
“The terms of the possible firm offer are that Sports Direct would offer 5p in cash per ordinary share for the entire issued and to be issued share capital of Debenhams which would value the total currently issued share capital of Debenhams (excluding treasury shares) at approximately £61.4 million,” the company said in a statement.
The potential offer, however, is condition upon the immediate appointment of Sports Direct boss Mike Ashley as CEO of Debenhams. Debenhams said only yesterday that Mike Ashley’s takeover plans will not provide immediate relief to its funding problems.
The department store chain has previously questioned whether a conflict of interest would occur if Mike Ashley was appointed CEO. This is because Sports Direct also owns Debenhams’ largest rival – House of Fraser. Sports Direct has reaffirmed, however, that Mike Ashley is prepared to leave his current Sports Direct role if he were to gain control of Debenhams.
“In addition, the Possible Offer is pre-conditional upon the Debenhams group agreeing not to enter into any third party funding arrangements (including those outlined in Debenhams statement of 22 March 2019), granting any new security over any of its assets or entering into any administration, CVA or other insolvency process,” Sports Direct continued.
At 09:55 GMT Wednesday, shares in Debenhams plc (LON:DEB) were trading at +50.32%.
Shares in Sports Direct International plc (LON:SPD) were trading at +0.07% as of 09:44 GMT.
Crest Nicholson announces new chief executive
Crest Nicholson (LON:CRST) announced Peter Truscott as its new chief executive, sending shares soaring on Tuesday.
The FTSE 250 house builder said that Truscott would assume the role following the end of his current contract with Galliford Try later in September this year.
Mr Truscott is set to replace Patrick Bergin at Crest Nicholson, who has agreed to step down.
The company said that Chris Tinker, who is currently Chairman of Major Projects and Strategic Partnerships and Board director, will become interim Chief Executive.
He is set to be also helped by Stephen Stone, Chairman in the meantime.
Stephen Stone, Chairman, commented on the announcement:
“We are delighted to welcome Peter to Crest Nicholson. We announced last year that we were shifting strategy from growth to cash generation with a strong emphasis on partnerships and other joint ventures, to de-risk the portfolio while delivering more homes.
Peter is highly experienced at delivering a broad range of housing needs to customers working with Local Authorities, Housing Associations as well as private homebuyers. This, together with his operational and public company experience, will bring strong additional expertise to our team.”
He also thanked outgoing chief executive Patrick Bergin for his work for the company of the years. He added:
“We are extremely grateful to Patrick Bergin for his dedication, time and commitment to Crest Nicholson over the last 13 years both as Group Finance Director and latterly as Chief Operating Officer and Group Chief Executive and wish him well for the future.”
The house builder posted its final results for the year back in January, reporting a 15% decline in profits as Brexit uncertainty weighed.
Crest Nicholson is listed on the London Stock Exchange. It was founded back in 1963 and is headquartered in Surrey in the UK.
Shares in the firm are currently trading +6.22% as of 13:20PM (GMT).
Moss Bros posts £4.2 million loss and axes dividend
Moss Bros swung to a £4.2 million loss for the year in its latest annual results, blaming warmer weather and a “volatile” trading environment.
The mens suit retailer said that total group revenue (excluding VAT) for the 52 week period to 26 January, fell 2.1% on the previous year at £129.0 million.
In addition, group like-for-like sales totalled £140.2 million during the period, declining 4.3% compared to a 1.6% rise a year ago.
Meanwhile, Like-for-like retail sales including e-commerce also fell 3.6%, whilst Like-for-like hire sales also dipped by 9.3%.
Moss Bros said that e-commerce had grown by 19.6%, now representing 14.5% of total sales as shoppers increasingly turn to online mediums.
Overall, the company reported an adjusted loss before tax of £0.4 million, compared to a £6.7 million profit the year before.
Moss Bros posted a loss before tax of £4.2 million after adjusting items of £3.8 million.
As a result, the company said that the board had not recommended a final dividend payment, citing a ‘volatile trading environment’.
Brian Brick, Chief Executive Officer, commented on the figures:
“It has been an extremely challenging year for the business on many fronts, but I am confident that we have made significant progress in a number of areas of the business.
He added that this was the first time since 2010/11 that Moss Bros had reported an adjusted loss ahead of tax.
He continued:
“As previously reported, we suffered from a combination of a significant stock shortage and extremes of weather, alongside sporting distraction in the first half, which impacted footfall into our stores. Whilst we were able to improve our performance in the second half of the year, this was in part as a result of adopting a more aggressive trading stance in reaction to competitor activity.”
With respect to future outlook, Brick said:
“we continue to anticipate an extremely challenging retail landscape, particularly within our physical stores, as a result of reduced footfall and rising costs. Alongside the macro trend of more retail transactions moving online, we expect the uncertain consumer environment and significant cost headwinds to continue.”
Shares in Moss Bros (LON:MOSB) are currently down -5.93% as of 11:08AM (GMT).