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| RBS shares hit three-year low after new wave of charges - business live | RBS shares hit three-year low after new wave of charges - business live |
| (35 minutes later) | |
| 12.28pm GMT | |
| 12:28 | |
| Shell shareholders approve BG deal | |
| Newsflash from The Hague - Royal Dutch Shell shareholders have just voted in favour of its £35bn merger with rival oil firm BG. | |
| That’s despite pressure from some shareholders to renegotiate the tie-up, which was negotiated before the oil price slumped to just $30 per barrel. | |
| During the meeting, Shell chief executive Ben van Beurden told the meeting that the deal would be a “springboard to simply Shell”, and still made sense despite the cheaper oil price. | |
| The deal was approved by 83% of shareholders, with 17% opposing the plan. | |
| BG investors give their verdict tomorrow, but there’s little chance that they will block the deal. | |
| 12.23pm GMT | |
| 12:23 | |
| RBS is helping to drag the London stock market down into the red today. | |
| As traders scoff a quick sandwich (or three courses at Gaucho), the FTSE 100 is down 22 points at 5888. | |
| RBS are the second biggest faller, down 3.8% at 251p. The only biggest faller is Anglo American, the mining company, which has shed 5.2%. Other miners are also in the red, reflecting ongoing concerns over global growth. | |
| Other European markets are also in the red, as investors wait to hear from the US Federal Reserve at 7pm GMT (when it will surely leave interest rates unchanged). | |
| 12.02pm GMT | |
| 12:02 | |
| Here’s more reaction to RBS’s latest financial woes, via Press Association: | |
| Russ Mould, investment director at AJ Bell, said: | |
| “It’s another bitter pill, but putting legacy issues behind it is essential if Chancellor George Osborne is going to off-load the Government’s stake during this parliament.” | |
| But banking analyst Gary Greenwood, at Shore Capital, said that, while “disappointing”, the latest financial charges are not unexpected. | |
| 11.42am GMT | 11.42am GMT |
| 11:42 | 11:42 |
| Over in America, traders are expecting Apple’s share price to slide after it warned that revenue will fall this quarter, for the first time in 13 years. | Over in America, traders are expecting Apple’s share price to slide after it warned that revenue will fall this quarter, for the first time in 13 years. |
| Apple set to open 3.5% lower. HT: @sunchartist pic.twitter.com/XLGH8YhlZe | Apple set to open 3.5% lower. HT: @sunchartist pic.twitter.com/XLGH8YhlZe |
| Market caps of huge companies. Will Google soon overtake Apple? pic.twitter.com/SoWrGyC9RX | Market caps of huge companies. Will Google soon overtake Apple? pic.twitter.com/SoWrGyC9RX |
| 11.11am GMT | 11.11am GMT |
| 11:11 | 11:11 |
| RBS isn’t the only bank counting the cost of the PPI scandal today. | RBS isn’t the only bank counting the cost of the PPI scandal today. |
| Santander, the Spanish financial giant, has announced it is setting aside another £450m to cover compensation to customers who were missold Payment Protection Insuranace. | Santander, the Spanish financial giant, has announced it is setting aside another £450m to cover compensation to customers who were missold Payment Protection Insuranace. |
| The move will dent profits at Santander UK. | The move will dent profits at Santander UK. |
| It could be the bank’s final bill for the scandal, but we won’t know for sure until the deadline for PPI claims in 2018. | It could be the bank’s final bill for the scandal, but we won’t know for sure until the deadline for PPI claims in 2018. |
| Related: Santander sets aside another £450m as PPI still haunts UK banks | Related: Santander sets aside another £450m as PPI still haunts UK banks |
| Updated | Updated |
| at 11.14am GMT | at 11.14am GMT |
| 10.48am GMT | 10.48am GMT |
| 10:48 | 10:48 |
| A wave of ‘challenger banks’ have sprung up since the financial crisis, hoping to win business from scandal-splattered big players such as Royal Bank of Scotland. | A wave of ‘challenger banks’ have sprung up since the financial crisis, hoping to win business from scandal-splattered big players such as Royal Bank of Scotland. |
| And one of them, Metro Bank, has announced plans to float on the stock market. Metro, which is losing around £10m per quarter, wants to raise £500m from shareholders. | And one of them, Metro Bank, has announced plans to float on the stock market. Metro, which is losing around £10m per quarter, wants to raise £500m from shareholders. |
| Related: Metro Bank to pursue stock market listing in February | Related: Metro Bank to pursue stock market listing in February |
| Random fact: Metro encourages dogs into its branches, and even lays on water bowls and doggie toys. If only bankers had spent more time doing that before the crisis, instead of churning out toxic debt and lumbering customers with PPI contracts.... | Random fact: Metro encourages dogs into its branches, and even lays on water bowls and doggie toys. If only bankers had spent more time doing that before the crisis, instead of churning out toxic debt and lumbering customers with PPI contracts.... |
| 10.19am GMT | 10.19am GMT |
| 10:19 | 10:19 |
| The British public had better face the truth - we’ll all be shareholders in the banks for a while longer yet. | The British public had better face the truth - we’ll all be shareholders in the banks for a while longer yet. |
| So argues Chris Beauchamp, senior market analyst at City firm IG. | So argues Chris Beauchamp, senior market analyst at City firm IG. |
| He told clients: | He told clients: |
| RBS’s ability to surprise investors with fresh bad news has been one of the hardy perennials of the past six years, and yet still the news keeps coming. George Osborne’s decision to sell a chunk of the government’s stake last August, which was derided at the time, now looks like a sound financial decision, but it does mean any further sales are essentially off the table. | RBS’s ability to surprise investors with fresh bad news has been one of the hardy perennials of the past six years, and yet still the news keeps coming. George Osborne’s decision to sell a chunk of the government’s stake last August, which was derided at the time, now looks like a sound financial decision, but it does mean any further sales are essentially off the table. |
| Coincidentally, with Lloyds down 2% this morning in sympathy, it seems the government will remain a key asset manager when it comes to UK banks. | Coincidentally, with Lloyds down 2% this morning in sympathy, it seems the government will remain a key asset manager when it comes to UK banks. |
| 10.05am GMT | 10.05am GMT |
| 10:05 | 10:05 |
| RBS CEO promises 'clean-up' after £2.5bn profits hit | RBS CEO promises 'clean-up' after £2.5bn profits hit |
| If you’re just tuning in, here’s Jill Treanor’s news story about the latest problems at RBS: | If you’re just tuning in, here’s Jill Treanor’s news story about the latest problems at RBS: |
| RBS takes £2.5bn hit to profits as chief executive announces bank ‘clean-up’ | RBS takes £2.5bn hit to profits as chief executive announces bank ‘clean-up’ |
| Royal Bank of Scotland is set to report its eighth consecutive year of full-year losses after announcing a string of charges for legal bills, compensation and a pension payment. | Royal Bank of Scotland is set to report its eighth consecutive year of full-year losses after announcing a string of charges for legal bills, compensation and a pension payment. |
| The bank, which is more than 70%-owned by the taxpayer, said it would take a £2.5bn hit to profits in 2015 as a result of a clean-up exercise, driving its share price to a three-year low in Wednesday’s early trading. | The bank, which is more than 70%-owned by the taxpayer, said it would take a £2.5bn hit to profits in 2015 as a result of a clean-up exercise, driving its share price to a three-year low in Wednesday’s early trading. |
| RBS shares fell 5% to 246p – below the 330p at which George Osborne sold off the the government’s first tranche of shares in August, and less than half the 502p average price at which taxpayers pumped £45bn into the bank. | RBS shares fell 5% to 246p – below the 330p at which George Osborne sold off the the government’s first tranche of shares in August, and less than half the 502p average price at which taxpayers pumped £45bn into the bank. |
| Issuing an unscheduled trading update on Wednesday, Ross McEwan, the chief executive of RBS, said the move was part of a continued clean-up but conceded that that the bank would make another full-year loss for 2015. It has not reported a profit since 2007. | Issuing an unscheduled trading update on Wednesday, Ross McEwan, the chief executive of RBS, said the move was part of a continued clean-up but conceded that that the bank would make another full-year loss for 2015. It has not reported a profit since 2007. |
| “I am determined to put the issues of the past behind us, and make sure RBS is a stronger, safer bank. We will now continue to move further and faster in 2016 to clean up the bank and improve our core businesses,” said McEwan. | “I am determined to put the issues of the past behind us, and make sure RBS is a stronger, safer bank. We will now continue to move further and faster in 2016 to clean up the bank and improve our core businesses,” said McEwan. |
| “We’ve always been open about the scale of past issues facing RBS and although there is clearly much more to do, this announcement is a further step towards addressing legacy issues and building a great bank for our customers and delivering long-term value for our shareholders,” he added..... | “We’ve always been open about the scale of past issues facing RBS and although there is clearly much more to do, this announcement is a further step towards addressing legacy issues and building a great bank for our customers and delivering long-term value for our shareholders,” he added..... |
| Here’s Jill’s full story: | Here’s Jill’s full story: |
| Related: RBS takes £2.5bn hit to profits as chief executive announces bank 'clean-up' | Related: RBS takes £2.5bn hit to profits as chief executive announces bank 'clean-up' |
| 9.45am GMT | 9.45am GMT |
| 09:45 | 09:45 |
| The latest problems at RBS show that bankers need keeping on a tight leash, argues campaigners for a financial transaction tax. | The latest problems at RBS show that bankers need keeping on a tight leash, argues campaigners for a financial transaction tax. |
| David Hillman, spokesperson for the Robin Hood Tax campaign, says: | David Hillman, spokesperson for the Robin Hood Tax campaign, says: |
| “It’s groundhog day in the City as RBS announces yet another huge provision for dodgy dealing and fleecing its customers. | “It’s groundhog day in the City as RBS announces yet another huge provision for dodgy dealing and fleecing its customers. |
| “Try as it might, the banking sector is incapable of shaking off its past sins. The government must take note — now is not the time for it to ease up on financial sector reform.” | “Try as it might, the banking sector is incapable of shaking off its past sins. The government must take note — now is not the time for it to ease up on financial sector reform.” |
| There are signs that Britain is taking a softer line with the City. An inquiry into banking culture was curiously abandoned at the end of last year, alarming campaigners. And yesterday, Bank of England deputy governor Andrew Bailey was appointed as head of the Financial Conduct Authority - and hand-picked by George Osborne for this crucial job. | There are signs that Britain is taking a softer line with the City. An inquiry into banking culture was curiously abandoned at the end of last year, alarming campaigners. And yesterday, Bank of England deputy governor Andrew Bailey was appointed as head of the Financial Conduct Authority - and hand-picked by George Osborne for this crucial job. |
| Updated | Updated |
| at 9.48am GMT | at 9.48am GMT |
| 9.26am GMT | 9.26am GMT |
| 09:26 | 09:26 |
| Citigroup analysts have warned that RBS could suffer even more legal charges this year, points out the BBC’s Kamal Ahmed: | Citigroup analysts have warned that RBS could suffer even more legal charges this year, points out the BBC’s Kamal Ahmed: |
| “We still see significant additional litigation charges in 2016, on top of the charges that have been announced today. | “We still see significant additional litigation charges in 2016, on top of the charges that have been announced today. |
| Citi describes RBS announcement as "profit warning" "We still see significant additional litigation charges in 2016" https://t.co/z44noTclTd | Citi describes RBS announcement as "profit warning" "We still see significant additional litigation charges in 2016" https://t.co/z44noTclTd |
| 9.21am GMT | 9.21am GMT |
| 09:21 | 09:21 |
| A quick explanation. When RBS says it is setting aside £1.5bn to cover “various US residential mortgage-backed securities (“RMBS”) litigation claims”, it is referring to one of the more noxious elements of the 2007-08 financial crisis. | A quick explanation. When RBS says it is setting aside £1.5bn to cover “various US residential mortgage-backed securities (“RMBS”) litigation claims”, it is referring to one of the more noxious elements of the 2007-08 financial crisis. |
| In the build-up to the crisis, milions of mortgages were sold to US citizens with shaky credit histories, who could not really afford them. Those loans were repackaged by investment banks into new financial products (the RMBSs) and sold onto investors who weren’t told how dangerous they might be. | In the build-up to the crisis, milions of mortgages were sold to US citizens with shaky credit histories, who could not really afford them. Those loans were repackaged by investment banks into new financial products (the RMBSs) and sold onto investors who weren’t told how dangerous they might be. |
| Cue the credit crunch, and the collapse of the subprime market. Mortgage-backed securities plunged in value, as the borrowers behind them failed to meet their payments and handed back the key to their homes. | Cue the credit crunch, and the collapse of the subprime market. Mortgage-backed securities plunged in value, as the borrowers behind them failed to meet their payments and handed back the key to their homes. |
| And the smaller banks, credit unions, insurers and suchlike who had been left holding them when the music stopped (and the Big Short paid out) launched waves of legal action against Wall Street. | And the smaller banks, credit unions, insurers and suchlike who had been left holding them when the music stopped (and the Big Short paid out) launched waves of legal action against Wall Street. |
| RBS had a finger in this unsavoury pie though its US subsidiary, Greenwich Capital Markets. In 2013, the SEC accused it of “misleading investors” and cutting corners, by selling loans that didn’t meet underwriting guidelines. | RBS had a finger in this unsavoury pie though its US subsidiary, Greenwich Capital Markets. In 2013, the SEC accused it of “misleading investors” and cutting corners, by selling loans that didn’t meet underwriting guidelines. |
| Updated | Updated |
| at 9.21am GMT | at 9.21am GMT |
| 8.53am GMT | 8.53am GMT |
| 08:53 | 08:53 |
| Important point: The £1.5bn in new US legal charges announced by RBS this morning does not cover any potential settlements with the US Department of Justice, or various US State Attorney General investigations. | Important point: The £1.5bn in new US legal charges announced by RBS this morning does not cover any potential settlements with the US Department of Justice, or various US State Attorney General investigations. |
| Ian Gordon of Investec warns that: | Ian Gordon of Investec warns that: |
| The timing and the cost of resolving those cases remains highly uncertain. | The timing and the cost of resolving those cases remains highly uncertain. |
| 8.39am GMT | 8.39am GMT |
| 08:39 | 08:39 |
| City analysts are punting out their opinions now. | City analysts are punting out their opinions now. |
| And Sandy Chen of Cenkos Securities isn’t too alarmed by RBS’s announcement. He argues that the bank is simply cleaning up the mess of previous eras (or possibly ‘previous errors’). | And Sandy Chen of Cenkos Securities isn’t too alarmed by RBS’s announcement. He argues that the bank is simply cleaning up the mess of previous eras (or possibly ‘previous errors’). |
| The new £1.5bn provision against US mortgage-backed security costs brings the total bill to £3.8bn - “closer to the £4-6bn totals that most analysts have had in mind”, Chen says. | The new £1.5bn provision against US mortgage-backed security costs brings the total bill to £3.8bn - “closer to the £4-6bn totals that most analysts have had in mind”, Chen says. |
| And the £500m payment protection insurance top-up should be one of the last big ones, given the FCA’s consultation on a 2018/19 time-bar on PPI claims, Chen adds. | And the £500m payment protection insurance top-up should be one of the last big ones, given the FCA’s consultation on a 2018/19 time-bar on PPI claims, Chen adds. |
| His conclusion: | His conclusion: |
| Bad news – really? More like putting their past in their behind, as Pumba said (in the Lion King). | Bad news – really? More like putting their past in their behind, as Pumba said (in the Lion King). |
| [I think Pumba actually says “you got to put your behind in your past.” -- but we get the gist] | [I think Pumba actually says “you got to put your behind in your past.” -- but we get the gist] |
| Updated | Updated |
| at 8.43am GMT | at 8.43am GMT |
| 8.29am GMT | 8.29am GMT |
| 08:29 | 08:29 |
| The UK government currently owns almost 73% of RBS, and at today’s share price I fear we’re stuck with it for some time. | The UK government currently owns almost 73% of RBS, and at today’s share price I fear we’re stuck with it for some time. |
| The taxpayer paid around 502p per share when it bailed the stricken bank out in 2008. | The taxpayer paid around 502p per share when it bailed the stricken bank out in 2008. |
| Today, RBS shares are trading at just 250p, so we would take a stonking loss if George Osborne sells another slice of the bank. | Today, RBS shares are trading at just 250p, so we would take a stonking loss if George Osborne sells another slice of the bank. |
| Last summer, he sold £2.1bn of stock at around 320p - crystallising a £1bn loss for the taxpayer. That deal was criticised, but with hindsight the hedge funds who bought the stock are now sitting on a loss themselves. | Last summer, he sold £2.1bn of stock at around 320p - crystallising a £1bn loss for the taxpayer. That deal was criticised, but with hindsight the hedge funds who bought the stock are now sitting on a loss themselves. |
| All the people who complained about Osborne selling RBS shares at 330p will of course notice that it dropped back below 250p this morning. | All the people who complained about Osborne selling RBS shares at 330p will of course notice that it dropped back below 250p this morning. |
| 8.13am GMT | 8.13am GMT |
| 08:13 | 08:13 |
| RBS shares hit lowest point since 2012 | RBS shares hit lowest point since 2012 |
| RSB shares have just hit their lowest level since September 2012, I reckon. | RSB shares have just hit their lowest level since September 2012, I reckon. |
| That’s not good news for George Osborne, as he tried to sell the bank back to the private sector. | That’s not good news for George Osborne, as he tried to sell the bank back to the private sector. |
| 8.06am GMT | 8.06am GMT |
| 08:06 | 08:06 |
| RBS shares fall 5% after new wave of costs | RBS shares fall 5% after new wave of costs |
| Shares in Royal Bank of Scotland have slumped by 5% at the start of trading, shedding 12.1p to 248p. | Shares in Royal Bank of Scotland have slumped by 5% at the start of trading, shedding 12.1p to 248p. |
| That makes RBS is the biggest faller on the FTSE 100. | That makes RBS is the biggest faller on the FTSE 100. |
| Bad news for shareholders - which in RBS’s case is every member of the UK public, as we bailed the bank out in 2008. | Bad news for shareholders - which in RBS’s case is every member of the UK public, as we bailed the bank out in 2008. |
| 8.05am GMT | 8.05am GMT |
| 08:05 | 08:05 |
| Q: When did RBS last make a profit, asks Jill Treanor. | Q: When did RBS last make a profit, asks Jill Treanor. |
| CEO Ross McEwan sucks through his teeth and takes a stab at 2007 -- the year before Lehman Brothers failed. | CEO Ross McEwan sucks through his teeth and takes a stab at 2007 -- the year before Lehman Brothers failed. |
| We told you that 2015 and 2016 was about tidying up these legacy issues, and that’s exactly what we’re doing, McEwan adds. | We told you that 2015 and 2016 was about tidying up these legacy issues, and that’s exactly what we’re doing, McEwan adds. |
| 7.59am GMT | 7.59am GMT |
| 07:59 | 07:59 |
| Q: How much has RBS paid out on PPI? | Q: How much has RBS paid out on PPI? |
| The total bill is around £4.3bn, says McEwan. | The total bill is around £4.3bn, says McEwan. |
| Takes total #RBS set aside for PPI mis-selling to £4.3 billion. CEO Ross McEwan says bank will make a 2015 loss after money set aside today | Takes total #RBS set aside for PPI mis-selling to £4.3 billion. CEO Ross McEwan says bank will make a 2015 loss after money set aside today |
| 7.58am GMT | 7.58am GMT |
| 07:58 | 07:58 |
| RBS will post a loss in 2015 | RBS will post a loss in 2015 |
| Q: Do today’s provisions mean RBS will declare a loss for 2015? | Q: Do today’s provisions mean RBS will declare a loss for 2015? |
| Yes, McEwan replies. Some of these charges will hit the bottom line (not the pension changes, though) | Yes, McEwan replies. Some of these charges will hit the bottom line (not the pension changes, though) |
| Updated | Updated |
| at 8.11am GMT | at 8.11am GMT |
| 7.57am GMT | 7.57am GMT |
| 07:57 | 07:57 |
| McEwan: Hopefully this is the end of PPI costs | McEwan: Hopefully this is the end of PPI costs |
| My colleague Jill Treanor asks whether today’s £500m PPI provision is finally the end of the saga. | My colleague Jill Treanor asks whether today’s £500m PPI provision is finally the end of the saga. |
| We’ve done the best we can, based on what we know today, to estimate what the final provision will be, McEwan replies. | We’ve done the best we can, based on what we know today, to estimate what the final provision will be, McEwan replies. |
| We think it is hopefully the end. | We think it is hopefully the end. |
| People have until spring 2018 to file PPI claims. | People have until spring 2018 to file PPI claims. |
| McEwan says PPI has been a long and torturous journey for many banks, and a reminder of how to treat consumers (or how not to mistreat them). | McEwan says PPI has been a long and torturous journey for many banks, and a reminder of how to treat consumers (or how not to mistreat them). |
| 7.53am GMT | 7.53am GMT |
| 07:53 | 07:53 |
| RBS is briefing the media now, on a conference call. | RBS is briefing the media now, on a conference call. |
| Chief Financial Officer Ewen Stevenson is telling reporters that “underneath it all we’ve got a strong core bank”. | Chief Financial Officer Ewen Stevenson is telling reporters that “underneath it all we’ve got a strong core bank”. |
| 7.52am GMT | 7.52am GMT |
| 07:52 | 07:52 |
| Will it ever end, wonder City journalists.... | Will it ever end, wonder City journalists.... |
| You would think RBS had run out of kitchen sinks by now..but no...bank to take another £3.6bn in charges - on @fasft https://t.co/xkwiUvfp5b | You would think RBS had run out of kitchen sinks by now..but no...bank to take another £3.6bn in charges - on @fasft https://t.co/xkwiUvfp5b |
| Banks still can't escape past.@RBSGroup taking £3.6b impairment charge on pensions,PPI &RMBS litigation. @bancosantander took Eu600m hit PPI | Banks still can't escape past.@RBSGroup taking £3.6b impairment charge on pensions,PPI &RMBS litigation. @bancosantander took Eu600m hit PPI |
| 7.49am GMT | 7.49am GMT |
| 07:49 | 07:49 |
| Is Ross McEwan is cleaning up RBS ahead of a sale, wonders the BBC’s Kamal Ahmed. | Is Ross McEwan is cleaning up RBS ahead of a sale, wonders the BBC’s Kamal Ahmed. |
| Ross McEwan, RBS CEO, launches huge clean up operation. £4.2bn payment for pensions deficit, extra £1.5bn for US mortgage legal actions... | Ross McEwan, RBS CEO, launches huge clean up operation. £4.2bn payment for pensions deficit, extra £1.5bn for US mortgage legal actions... |
| RBS sets aside extra £500m for Payment Protection Insurance mis-selling (total bill £4.3bn) & £498m write-down of private bank value | RBS sets aside extra £500m for Payment Protection Insurance mis-selling (total bill £4.3bn) & £498m write-down of private bank value |
| 7.46am GMT | 7.46am GMT |
| 07:46 | 07:46 |
| RBS pumps more cash into pension pot | RBS pumps more cash into pension pot |
| RBS has also told the City that it is putting £4.2bn into its pension scheme, to cover an accounting deficit of £3.3 billion. | RBS has also told the City that it is putting £4.2bn into its pension scheme, to cover an accounting deficit of £3.3 billion. |
| That’s mainly an accelerated payment of existing committed future contributions. It follows changes in accounting practice, which have made RBS rethink whether or not it has an unconditional right to a refund of any surpluses in its employee pension funds. | That’s mainly an accelerated payment of existing committed future contributions. It follows changes in accounting practice, which have made RBS rethink whether or not it has an unconditional right to a refund of any surpluses in its employee pension funds. |
| RBS: £1.5bn provision for RMBS bonds, extra £500m for PPI and £498m writedown on the private bank... | RBS: £1.5bn provision for RMBS bonds, extra £500m for PPI and £498m writedown on the private bank... |
| RBS also appears to pumping £4.2bn into its pension too... | RBS also appears to pumping £4.2bn into its pension too... |
| 7.40am GMT | 7.40am GMT |
| 07:40 | 07:40 |
| RBS announces £2.5bn in new provisions | RBS announces £2.5bn in new provisions |
| Royal Bank of Scotland has stunned the City with a fresh wave of provisions to cover bad behaviour and legal bills. | Royal Bank of Scotland has stunned the City with a fresh wave of provisions to cover bad behaviour and legal bills. |
| In an unscheduled announcement, RBS announced a series of new charges. In a nutshell: | In an unscheduled announcement, RBS announced a series of new charges. In a nutshell: |
| "RBS today announces a series of updates to the market" #NeverAGoodOpeningLine | "RBS today announces a series of updates to the market" #NeverAGoodOpeningLine |
| More than seven years after being rescued by the taxpayer, RBS is still a work in progress..... | More than seven years after being rescued by the taxpayer, RBS is still a work in progress..... |
| CEO Ross McEwan insists that he is cleaning up the mess of the past: | CEO Ross McEwan insists that he is cleaning up the mess of the past: |
| “I am determined to put the issues of the past behind us and make sure RBS is a stronger, safer bank. We will now continue to move further and faster in 2016 to clean-up the bank and improve our core businesses. | “I am determined to put the issues of the past behind us and make sure RBS is a stronger, safer bank. We will now continue to move further and faster in 2016 to clean-up the bank and improve our core businesses. |
| We’ve always been open about the scale of past issues facing RBS and although there is clearly much more to do, this announcement is a further step towards addressing legacy issues and building a great bank for our customers and delivering long term value for our shareholders.” | We’ve always been open about the scale of past issues facing RBS and although there is clearly much more to do, this announcement is a further step towards addressing legacy issues and building a great bank for our customers and delivering long term value for our shareholders.” |
| Updated | Updated |
| at 7.54am GMT | at 7.54am GMT |
| 7.21am GMT | 7.21am GMT |
| 07:21 | 07:21 |
| The agenda: Oil, markets, and then the Fed | The agenda: Oil, markets, and then the Fed |
| Good morning, and welcome to our rolling coverage of the world economy, the financial markets the eurozone, and business. | Good morning, and welcome to our rolling coverage of the world economy, the financial markets the eurozone, and business. |
| Two things dominate today -- the turmoil in the stock markets, and the first US Federal Reserve interest rate decision of 2016. | Two things dominate today -- the turmoil in the stock markets, and the first US Federal Reserve interest rate decision of 2016. |
| Traders can’t take their eye off the oil price, which is lurching around the $30 per dollar mark this week. Brent crude is currently trading around $31.42 per barrel, helped by rumours that Russia and Saudi Arabia might carve up some kind of deal to cut production. It’s all a bit flaky, though. | Traders can’t take their eye off the oil price, which is lurching around the $30 per dollar mark this week. Brent crude is currently trading around $31.42 per barrel, helped by rumours that Russia and Saudi Arabia might carve up some kind of deal to cut production. It’s all a bit flaky, though. |
| Michael Hewson of CMC Markets explains: | Michael Hewson of CMC Markets explains: |
| The symbiotic relationship between equity markets and oil prices continued yesterday as after a rocky start to trading saw a slide in oil prices below $30 drag equity markets lower, the lack of follow through saw a semblance of stability return and a sharp recovery back above the $30 level on vague chatter that senior OPEC officials were looking to open a dialogue and put together some form of deal with Russia in an effort to put a floor under prices. | The symbiotic relationship between equity markets and oil prices continued yesterday as after a rocky start to trading saw a slide in oil prices below $30 drag equity markets lower, the lack of follow through saw a semblance of stability return and a sharp recovery back above the $30 level on vague chatter that senior OPEC officials were looking to open a dialogue and put together some form of deal with Russia in an effort to put a floor under prices. |
| European markets are likely to be calm this morning, as investors await new from America’s central bank. | European markets are likely to be calm this morning, as investors await new from America’s central bank. |
| At 7pm GMT tonight, the Federal Reserve announces its decision on monetary policy. It will surely (surely!) leave interest rates unchanged, having made the first symbolic post-crisis hike last month. | At 7pm GMT tonight, the Federal Reserve announces its decision on monetary policy. It will surely (surely!) leave interest rates unchanged, having made the first symbolic post-crisis hike last month. |
| The Fed’s statement will be scrutinised for its view on the global economy, and any signs of ‘hikers’ remorse’, given the turmoil in the markets in recent weeks. | The Fed’s statement will be scrutinised for its view on the global economy, and any signs of ‘hikers’ remorse’, given the turmoil in the markets in recent weeks. |
| Lots of companies reporting results today, although the biggie - Facebook - comes at 9pm GMT. | Lots of companies reporting results today, although the biggie - Facebook - comes at 9pm GMT. |
| UK companies posting results today - Antofagasta, Britvic, Paragon, Aberdeen Asset Management, Sage Group | UK companies posting results today - Antofagasta, Britvic, Paragon, Aberdeen Asset Management, Sage Group |
| US companies posting interim results - PayPal, Boeing, Biogen Idec, Texas Instruments, Facebook | US companies posting interim results - PayPal, Boeing, Biogen Idec, Texas Instruments, Facebook |
| The City will also be digesting Apple’s results last night, which showed that the iPhone boom may finally be over: | The City will also be digesting Apple’s results last night, which showed that the iPhone boom may finally be over: |
| Related: Apple iPhone sales flatline as growth falls well short of expectations | Related: Apple iPhone sales flatline as growth falls well short of expectations |
| We’ll be tracking all the main events through the day.... | We’ll be tracking all the main events through the day.... |
| Updated | Updated |
| at 7.24am GMT | at 7.24am GMT |