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Version 6 Version 7
UK manufacturing slides, as Italian bank rescue hopes build – business live UK manufacturing slides, as Italian bank rescue hopes build – business live
(35 minutes later)
11.45am GMT
11:45
EC antitrust commissioner Margrethe Vestager declined to comment directly on the Monte dei Paschi rescue talks.
But she did point out that the commission is keen to support citizens who have been missold financial products.
That could be significant, as the small retail investors who own Italian bank bonds may argue that they were deceived about the risk of being possibly ‘bailed into’ a rescue. And some analysts reckon the Italian government could circumvent those new bail-in rules by compensating these small investors.
Vestager told reporters in Brussels that:
“One of the things that we are working with is tools to enable governments to compensate for mis-selling of different kinds.
“It is something we have set up before. We will work with governments again if they want to set up schemes that can allow citizens to be compensated if mis-selling has been taking place.”
11.14am GMT11.14am GMT
11:1411:14
JP Morgan and HSBC also reject Euribor findingsJP Morgan and HSBC also reject Euribor findings
The European Commission have got a fight on their hands over today’s Euribor fines.The European Commission have got a fight on their hands over today’s Euribor fines.
JP Morgan and HSBC have both announced that reject the EC’s conclusions that they breached antitrust laws, and will fight on to try to prove it.JP Morgan and HSBC have both announced that reject the EC’s conclusions that they breached antitrust laws, and will fight on to try to prove it.
A spokeswoman for JP Morgan (fined €337m today) says the bank could launch an appeal:A spokeswoman for JP Morgan (fined €337m today) says the bank could launch an appeal:
“We have cooperated fully with the European Commission throughout its five year investigation. We did not engage in any wrongdoing with respect to the EURIBOR benchmark.“We have cooperated fully with the European Commission throughout its five year investigation. We did not engage in any wrongdoing with respect to the EURIBOR benchmark.
We will continue to vigorously defend our position against these allegations, including through possible appeals to the European courts.”We will continue to vigorously defend our position against these allegations, including through possible appeals to the European courts.”
HSBC (fined €33m) is also adamant that it didn’t take part in a cartel:HSBC (fined €33m) is also adamant that it didn’t take part in a cartel:
The European Commission’s decision relates to allegations of Euribor manipulation and related purported conduct during the course of one month in early 2007. We believe we did not participate in an anti-competitive cartel. We are reviewing the European Commission’s decision and considering our legal options.The European Commission’s decision relates to allegations of Euribor manipulation and related purported conduct during the course of one month in early 2007. We believe we did not participate in an anti-competitive cartel. We are reviewing the European Commission’s decision and considering our legal options.
UpdatedUpdated
at 11.15am GMTat 11.15am GMT
10.56am GMT10.56am GMT
10:5610:56
Credit Agricole to appeal Euribor rulingCredit Agricole to appeal Euribor ruling
French bank Credit Agricole is refusing to accept that it breached antitrust rules!French bank Credit Agricole is refusing to accept that it breached antitrust rules!
In a short, sharp statement, it says:In a short, sharp statement, it says:
Crédit Agricole takes note of today’s decision of the European Commission in the Euribor case.Crédit Agricole takes note of today’s decision of the European Commission in the Euribor case.
Crédit Agricole firmly believes that it did not infringe competition law. Accordingly, it will appeal the Commission’s decision before the European courts.Crédit Agricole firmly believes that it did not infringe competition law. Accordingly, it will appeal the Commission’s decision before the European courts.
Payment of the fine will not affect the 2016 financial statements given the provisions set aside previously.Payment of the fine will not affect the 2016 financial statements given the provisions set aside previously.
10.16am GMT10.16am GMT
10:1610:16
Today’s fines mark the end of the euribor scandal, hopefully, Vestager continues.Today’s fines mark the end of the euribor scandal, hopefully, Vestager continues.
But....But....
The Commission will not hesitate to investigate and sanction any other cartel it may uncover in the future in the financial industry.The Commission will not hesitate to investigate and sanction any other cartel it may uncover in the future in the financial industry.
10.14am GMT10.14am GMT
10:1410:14
Commissioner Vestager is outlining the euribor ruling now.Commissioner Vestager is outlining the euribor ruling now.
You can watch it live here.You can watch it live here.
She says JP Morgan, HSBC and Credit Agricole all breached antitrust rules by conspiring to rig the euribor rate.She says JP Morgan, HSBC and Credit Agricole all breached antitrust rules by conspiring to rig the euribor rate.
The euribor market is means to provide protection from market volatility in euro-denominated securities, Vestager says. If this market is rigged, it will benefit only a few.The euribor market is means to provide protection from market volatility in euro-denominated securities, Vestager says. If this market is rigged, it will benefit only a few.
Traders used IM services and corporate chatrooms to exchange confidential information to distort the euribor rate to serve their own interests, she adds.Traders used IM services and corporate chatrooms to exchange confidential information to distort the euribor rate to serve their own interests, she adds.
Euribor was calculated from submissions from individual banks, which created the ability to rig it.Euribor was calculated from submissions from individual banks, which created the ability to rig it.
Vestager cites one example, from 19th March 2007, in which the cartel members decided they would benefit from a lower euribor rate. So, weeks earlier, they conspired to submit low numbers to the committee which calculated the daily figure.Vestager cites one example, from 19th March 2007, in which the cartel members decided they would benefit from a lower euribor rate. So, weeks earlier, they conspired to submit low numbers to the committee which calculated the daily figure.
(this will sound depressingly familiar to anyone who’s read about the Libor scandal).(this will sound depressingly familiar to anyone who’s read about the Libor scandal).
UpdatedUpdated
at 10.14am GMTat 10.14am GMT
10.07am GMT10.07am GMT
10:0710:07
Here’s the details of the euribor-rigging fines just announced by the EC.Here’s the details of the euribor-rigging fines just announced by the EC.
Margrethe Vestager, the EU’s antitrust commissioner, says:Margrethe Vestager, the EU’s antitrust commissioner, says:
“Banks have to respect EU competition rules just like any other company operating in the single market.”“Banks have to respect EU competition rules just like any other company operating in the single market.”
These fines come three years after four other banks were fined over Euribor rigging, Barclays, Deutsche Bank, RBS and Societe Generale.These fines come three years after four other banks were fined over Euribor rigging, Barclays, Deutsche Bank, RBS and Societe Generale.
UpdatedUpdated
at 10.08am GMTat 10.08am GMT
10.02am GMT10.02am GMT
10:0210:02
Crédit Agricole, HSBC and JP Morgan fined over Euribor scandalCrédit Agricole, HSBC and JP Morgan fined over Euribor scandal
Newsflash! The European commission has fined Cr´dit Agricole, HSBC and JP Morgan a combined total of €485m for their role in the Euribor fixing scandal.Newsflash! The European commission has fined Cr´dit Agricole, HSBC and JP Morgan a combined total of €485m for their role in the Euribor fixing scandal.
This is the case in which traders were accused of conspiring to rig the official rates at which banks would lend to each other in various currencies (euros, in this case)This is the case in which traders were accused of conspiring to rig the official rates at which banks would lend to each other in various currencies (euros, in this case)
More to follow....More to follow....
UpdatedUpdated
at 10.16am GMTat 10.16am GMT
9.49am GMT9.49am GMT
09:4909:49
City experts are pretty unimpressed by the slide in UK manufacturing in October:City experts are pretty unimpressed by the slide in UK manufacturing in October:
Ugh! October UK ind. production was worst month since September 2012, falling 1.3%m/m. -8.6%m/m plunge in mining & -0.9%m/m in manufacturing pic.twitter.com/nEawxnV39XUgh! October UK ind. production was worst month since September 2012, falling 1.3%m/m. -8.6%m/m plunge in mining & -0.9%m/m in manufacturing pic.twitter.com/nEawxnV39X
Despite better surveys, #UK manufacturing remained very weak in October despite weaker #GBP. May's #Brexit plan is to make it great again... pic.twitter.com/M22vIRpMPpDespite better surveys, #UK manufacturing remained very weak in October despite weaker #GBP. May's #Brexit plan is to make it great again... pic.twitter.com/M22vIRpMPp
9.44am GMT9.44am GMT
09:4409:44
That disappointing UK manufacturing report has hit the pound, sending it down 0.5% against the US dollar:That disappointing UK manufacturing report has hit the pound, sending it down 0.5% against the US dollar:
Pound falls to $1.26 after manufacturing output unexpectedly drops, by 0.9% https://t.co/5LG42Arn5o pic.twitter.com/3ng0Tr5F3sPound falls to $1.26 after manufacturing output unexpectedly drops, by 0.9% https://t.co/5LG42Arn5o pic.twitter.com/3ng0Tr5F3s
The Office for National Statistics reports that most areas of manufacturing struggled in October, led by pharmaceuticals, where output shrank by 3.6%.The Office for National Statistics reports that most areas of manufacturing struggled in October, led by pharmaceuticals, where output shrank by 3.6%.
9.40am GMT9.40am GMT
09:4009:40
This chart shows how Britain’s manufacturing sector weakened in October, after two months of gains:This chart shows how Britain’s manufacturing sector weakened in October, after two months of gains:
UK manufacturing output fell 0.9% in October 2016 vs September & was 0.4% lower than a year ago.#ukmanufacturinghttps://t.co/aqSS1d7cve pic.twitter.com/LejkS32iYsUK manufacturing output fell 0.9% in October 2016 vs September & was 0.4% lower than a year ago.#ukmanufacturinghttps://t.co/aqSS1d7cve pic.twitter.com/LejkS32iYs
Not so good. UK Manufacturing month on same month a year ago decreased by 0.4% in October 2016.Not so good. UK Manufacturing month on same month a year ago decreased by 0.4% in October 2016.
9.37am GMT9.37am GMT
09:3709:37
UK industrial production takes a tumble in OctoberUK industrial production takes a tumble in October
Breaking: Britain’s industrial sector has suffered its biggest fall in output sine 2012.Breaking: Britain’s industrial sector has suffered its biggest fall in output sine 2012.
UK industrial production shrank by 1.3% in October, dashing hopes of a 0.2% rise.UK industrial production shrank by 1.3% in October, dashing hopes of a 0.2% rise.
It’s partly due to the temporary shutdown of the Buzzard oil field in the North Sea.It’s partly due to the temporary shutdown of the Buzzard oil field in the North Sea.
But... manufacturing certainly had a poor month too. Output across manufacturing firms fell by 0.9% in October. That’s the weakest performance since February, and will raise fears that the economy is weakening.But... manufacturing certainly had a poor month too. Output across manufacturing firms fell by 0.9% in October. That’s the weakest performance since February, and will raise fears that the economy is weakening.
Economist Mark Astley says the figures are much weaker than expected.Economist Mark Astley says the figures are much weaker than expected.
UK #manufacturing & ind product much weaker than expected in Oct (-0.9%,-1.3% m/m; -0.4%,-1.1% y/y) #PMI giving false post #brexit picture?UK #manufacturing & ind product much weaker than expected in Oct (-0.9%,-1.3% m/m; -0.4%,-1.1% y/y) #PMI giving false post #brexit picture?
Investec’s Philip Shaw hopes that the underlying picture is better.Investec’s Philip Shaw hopes that the underlying picture is better.
UK manufacturing output down 0.9% in Oct. Note that surveys of the sector have been positive and so this is likely to be an erratic number.UK manufacturing output down 0.9% in Oct. Note that surveys of the sector have been positive and so this is likely to be an erratic number.