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| RBS and Santander rapped over PPI failures – business live | RBS and Santander rapped over PPI failures – business live |
| (32 minutes later) | |
| And news from Harland and Wolff, the shipbuilder whose yellow cranes dominate the Belfast skyline: administrators have extended a temporary lay-off period to give more time to find a buyer. | |
| The historic Belfast shipyard that built the Titanic fell into administration at the start of the month, threatening the end of centuries of shipbuilding in the city. | |
| BDO NI, the administrators, have extended the unpaid temporary lay-off position to 30 September to try to find a buyer, the company said in a statement on Friday. | |
| The company has received a “healthy level of interest” from potential purchasers who could preserve the existing jobs. | |
| This has resulted in a number of non-binding offers for the business, assets & employees on a going concern basis. There are also other interested parties who are in constructive discussions with the administrators which may result in further offers. | |
| An update from Ryanair, whose pilots are currently striking over pay and conditions: flights from British airports are operating as usual today, with no disruption to its schedule expected. | An update from Ryanair, whose pilots are currently striking over pay and conditions: flights from British airports are operating as usual today, with no disruption to its schedule expected. |
| A judge rejected an application on Wednesday for an injunction against the British Airline Pilots’ Association (Balpa), which would have forced pilots to return to work. | A judge rejected an application on Wednesday for an injunction against the British Airline Pilots’ Association (Balpa), which would have forced pilots to return to work. |
| Hong Kong is gripped by protests and the backlash by government, and the airport will likely be disrupted again this weekend – raising concerns of a recession hitting the city. | Hong Kong is gripped by protests and the backlash by government, and the airport will likely be disrupted again this weekend – raising concerns of a recession hitting the city. |
| Hong Kong is a free marketer’s dream. The tiny island has a GDP bigger than many industrialised countries, low tax and abundant cheap labour, and is a world-class financial centre boasting a stock market with a total value of more than £2.5tn, write the Guardian’s Martin Farrer and Erin Hale in Hong Kong. | Hong Kong is a free marketer’s dream. The tiny island has a GDP bigger than many industrialised countries, low tax and abundant cheap labour, and is a world-class financial centre boasting a stock market with a total value of more than £2.5tn, write the Guardian’s Martin Farrer and Erin Hale in Hong Kong. |
| No wonder then that the city’s most powerful vested interests are showing signs of nerves after 11 weeks of street protests that have paralysed the city, prompting its biggest political crisis since the handover to China in 1997 and threatening to push it into recession. | No wonder then that the city’s most powerful vested interests are showing signs of nerves after 11 weeks of street protests that have paralysed the city, prompting its biggest political crisis since the handover to China in 1997 and threatening to push it into recession. |
| Even worse, some observers believe the standoff could destroy Hong Kong’s cherished entrepot status and send it on a journey of no return into China’s orbit. | Even worse, some observers believe the standoff could destroy Hong Kong’s cherished entrepot status and send it on a journey of no return into China’s orbit. |
| You can read more here: | You can read more here: |
| Hong Kong businesses fear protests will push economy into recession | Hong Kong businesses fear protests will push economy into recession |
| Hasbro, the US toymaker behind My Little Pony and Play-Doh, has snapped up the Peppa Pig owner Entertainment One in a £3.3bn takeover. | Hasbro, the US toymaker behind My Little Pony and Play-Doh, has snapped up the Peppa Pig owner Entertainment One in a £3.3bn takeover. |
| The deal, which sent Entertainment One’s share price soaring by 30% in morning trading, marks the latest UK-listed company to be targeted by a foreign buyer since the dramatic weakening of the pound over fears of a no-deal Brexit. | The deal, which sent Entertainment One’s share price soaring by 30% in morning trading, marks the latest UK-listed company to be targeted by a foreign buyer since the dramatic weakening of the pound over fears of a no-deal Brexit. |
| The deal, the biggest in Hasbro’s history, is more than three times the amount ITV offered in an aborted takeover attempt three years ago. | The deal, the biggest in Hasbro’s history, is more than three times the amount ITV offered in an aborted takeover attempt three years ago. |
| You can read more from the Guardian’s Mark Sweney here: | You can read more from the Guardian’s Mark Sweney here: |
| Hasbro buys Peppa Pig owner Entertainment One in £3.3bn deal | Hasbro buys Peppa Pig owner Entertainment One in £3.3bn deal |
| Here’s a chart that tells a story: shares in Woodford Patient Capital Trust since 2015. | Here’s a chart that tells a story: shares in Woodford Patient Capital Trust since 2015. |
| The shares are down by 6% today, to 41p, but earlier hit an all-time low of 38.1p – a far cry from levels above 90p at the start of the year, before the investor stampede to the exit from Woodford’s investments. | The shares are down by 6% today, to 41p, but earlier hit an all-time low of 38.1p – a far cry from levels above 90p at the start of the year, before the investor stampede to the exit from Woodford’s investments. |
| If you take a look at the list of troubled Eddie Stobart Logistics’ biggest shareholders, one stands out: Woodford Investment Management. | If you take a look at the list of troubled Eddie Stobart Logistics’ biggest shareholders, one stands out: Woodford Investment Management. |
| Woodford, run by prominent but by now bedraggled investement manager Neil Woodford, owns 23% of Eddie Stobart, whose shares have now been suspended. When it rains, it pours. | Woodford, run by prominent but by now bedraggled investement manager Neil Woodford, owns 23% of Eddie Stobart, whose shares have now been suspended. When it rains, it pours. |
| Investors are currently blocked from withdrawing money from his equity income fund, but shares in the listed Woodford Patient Capital Trust today hit a record low after a separate announcement that it must reduce the valuation of its stake in IH Holdings International Limited. | Investors are currently blocked from withdrawing money from his equity income fund, but shares in the listed Woodford Patient Capital Trust today hit a record low after a separate announcement that it must reduce the valuation of its stake in IH Holdings International Limited. |
| That is the parent company of Industrial Heat, a North Carolina company trying to use “low-energy nuclear reactions” as an energy source. The FT described Industrial Heat’s central idea (£) as “on the fringes of modern physics”. | That is the parent company of Industrial Heat, a North Carolina company trying to use “low-energy nuclear reactions” as an energy source. The FT described Industrial Heat’s central idea (£) as “on the fringes of modern physics”. |
| Woodford Patient Capital Trust’s statement said: | Woodford Patient Capital Trust’s statement said: |
| The valuation adjustment reflects a reassessment of the current progress of the business. | The valuation adjustment reflects a reassessment of the current progress of the business. |
| Sterling went on a bit of a tear yesterday as Angela Merkel, the German chancellor, appeared to strike an emollient Brexit tone. It gained 1% yesterday, but is back down 0.4% today. | Sterling went on a bit of a tear yesterday as Angela Merkel, the German chancellor, appeared to strike an emollient Brexit tone. It gained 1% yesterday, but is back down 0.4% today. |
| France’s Emmanuel Macron perhaps reminded traders last night that, to coin a phrase, nothing has changed on the UK’s departure from the EU so far. | France’s Emmanuel Macron perhaps reminded traders last night that, to coin a phrase, nothing has changed on the UK’s departure from the EU so far. |
| The FTSE 100 is up by 0.5% in early trading – in part thanks to the weakness of the pound, which has lost 0.4% this morning against the US dollar. | The FTSE 100 is up by 0.5% in early trading – in part thanks to the weakness of the pound, which has lost 0.4% this morning against the US dollar. |
| Germany’s Dax and France’s Cac 40 indices are both up by 0.5% as well. | Germany’s Dax and France’s Cac 40 indices are both up by 0.5% as well. |
| Eddie Stobart Logistics has said chief executive Alex Laffey will step down immediately as the company applied to suspend its shares from trading after it failed to publish its half-year results in time. | Eddie Stobart Logistics has said chief executive Alex Laffey will step down immediately as the company applied to suspend its shares from trading after it failed to publish its half-year results in time. |
| The company, which provides transportation and warehousing facilities, found errors in its previous financial statements in a review a month ago. | The company, which provides transportation and warehousing facilities, found errors in its previous financial statements in a review a month ago. |
| Eddie Stobart said on Friday it would publish the results in early September and announced a review of its dividend policy. It said Laffey will be replaced by Sebastien Desreumaux, the head of its iForce unit. | Eddie Stobart said on Friday it would publish the results in early September and announced a review of its dividend policy. It said Laffey will be replaced by Sebastien Desreumaux, the head of its iForce unit. |
| In a statement, Stobart said it need to apply “a more prudent approach to revenue recognition, re-assessing the recoverability of certain receivables, as well as considering the appropriateness of certain provisions”. | In a statement, Stobart said it need to apply “a more prudent approach to revenue recognition, re-assessing the recoverability of certain receivables, as well as considering the appropriateness of certain provisions”. |
| While revenue expectations for the first half are broadly in line with previous guidance, the full impact of these items on adjusted EBIT is unclear, but it is likely to be significantly lower than anticipated at the time of the half year trading update on 9 July 2019. | While revenue expectations for the first half are broadly in line with previous guidance, the full impact of these items on adjusted EBIT is unclear, but it is likely to be significantly lower than anticipated at the time of the half year trading update on 9 July 2019. |
| 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. |
| The UK’s competition regulator has ordered Royal Bank of Scotland and Santander to appoint an independent body to audit their PPI processes after they failed to tell thousands of customers about their policies. | The UK’s competition regulator has ordered Royal Bank of Scotland and Santander to appoint an independent body to audit their PPI processes after they failed to tell thousands of customers about their policies. |
| The Competition and Markets Authority (CMA), led by former Conservative MP Andrew Tyrie, said RBS and Santander failed to provide required accurate reminders of their payment protection insurance (PPI) policies to 11,000 and 3,400 customers respectively. The failures took place over six and five years respectively. | The Competition and Markets Authority (CMA), led by former Conservative MP Andrew Tyrie, said RBS and Santander failed to provide required accurate reminders of their payment protection insurance (PPI) policies to 11,000 and 3,400 customers respectively. The failures took place over six and five years respectively. |
| The PPI scandal, in which banks systematically missold insurance to customers with little likelihood of it ever being used, has been a millstone around the necks of the banks. New City Agenda, a think tank, calculates that the bill for the British banking sector has reached £48.5bn – and it could breach £50bn. | The PPI scandal, in which banks systematically missold insurance to customers with little likelihood of it ever being used, has been a millstone around the necks of the banks. New City Agenda, a think tank, calculates that the bill for the British banking sector has reached £48.5bn – and it could breach £50bn. |
| Top 10 retail banking scandals. Top is #PPI at a cost to the banks and building societies of £48.5 bn so far - https://t.co/kBRFePZ0qI | Top 10 retail banking scandals. Top is #PPI at a cost to the banks and building societies of £48.5 bn so far - https://t.co/kBRFePZ0qI |
| The banks were meant to send customers an annual reminder from their PPI provider that clearly sets out how much they’ve paid for their policy, the type of cover they have, and reminds them of their right to cancel. RBS failed to send reminders, and will have to refund customers another £1.5m, while Santander sent inaccurate information. | The banks were meant to send customers an annual reminder from their PPI provider that clearly sets out how much they’ve paid for their policy, the type of cover they have, and reminds them of their right to cancel. RBS failed to send reminders, and will have to refund customers another £1.5m, while Santander sent inaccurate information. |
| Adam Land, a senior director at the CMA, said: | Adam Land, a senior director at the CMA, said: |
| It is unacceptable that some banks aren’t providing PPI reminders – or are sending inaccurate ones – eight years after our order came into force. The legally binding directions we’ve issued today will make sure that both RBS and Santander now play by the rules. | It is unacceptable that some banks aren’t providing PPI reminders – or are sending inaccurate ones – eight years after our order came into force. The legally binding directions we’ve issued today will make sure that both RBS and Santander now play by the rules. |
| These are serious issues that, in the future, may result in fines if the government gives us the powers we’ve asked for. | These are serious issues that, in the future, may result in fines if the government gives us the powers we’ve asked for. |
| For now, we expect RBS to repay all affected customers quickly, and for both RBS and Santander to make sure that similar breaches do not happen again. | For now, we expect RBS to repay all affected customers quickly, and for both RBS and Santander to make sure that similar breaches do not happen again. |
| We’re also requiring RBS and Santander to appoint an independent body to audit their PPI processes to make sure they are fully compliant. | We’re also requiring RBS and Santander to appoint an independent body to audit their PPI processes to make sure they are fully compliant. |
| The final deadline for new PPI claims is 29 August, with the Financial Conduct Authority, the City regulator, currently carrying out an Arnold Schwarzenegger-themed advertising campaign – yes, really – to remind people to claim. | The final deadline for new PPI claims is 29 August, with the Financial Conduct Authority, the City regulator, currently carrying out an Arnold Schwarzenegger-themed advertising campaign – yes, really – to remind people to claim. |
| It is yet another reputational blow to the banks in the scandal which will not die. | It is yet another reputational blow to the banks in the scandal which will not die. |
| Meanwhile, in Jackson Hole... | Meanwhile, in Jackson Hole... |
| We’re well into sleepy August on the economic data front, with no really notable releases. Those economists who aren’t on the beach (and probably some who are, given its importance this year) will be tuning into coverage of Jackson Hole, the annual central bankers’ holiday retreat in the Wyoming countryside. | We’re well into sleepy August on the economic data front, with no really notable releases. Those economists who aren’t on the beach (and probably some who are, given its importance this year) will be tuning into coverage of Jackson Hole, the annual central bankers’ holiday retreat in the Wyoming countryside. |
| Who would take the job of Jerome Powell right now? Every Federal Reserve chair has to put up with their fair share of brickbats, but nobody for the best part of a century has had to take such furious criticism from the White House. | Who would take the job of Jerome Powell right now? Every Federal Reserve chair has to put up with their fair share of brickbats, but nobody for the best part of a century has had to take such furious criticism from the White House. |
| Powell will have a chance to hit back later today – or at least to lay out his reasons for resisting Trump’s calls to cut rates to stimulate the economy. He speaks at the central bankers’ summer retreat in Jackson Hole, hosted by the Kansas City Fed, at 3pm BST. You can see the full schedule here – Bank of England governor Mark Carney is due to speak at 8pm BST. | Powell will have a chance to hit back later today – or at least to lay out his reasons for resisting Trump’s calls to cut rates to stimulate the economy. He speaks at the central bankers’ summer retreat in Jackson Hole, hosted by the Kansas City Fed, at 3pm BST. You can see the full schedule here – Bank of England governor Mark Carney is due to speak at 8pm BST. |
| But what to expect? After Powell delivered the first rate cut in a decade at the start of the month, investors are looking for signs of more to come as fears around a recession rise. On bond markets the US two-year/10-year yield curve inverted again yesterday, flashing another warning sign over the world’s largest economy. | But what to expect? After Powell delivered the first rate cut in a decade at the start of the month, investors are looking for signs of more to come as fears around a recession rise. On bond markets the US two-year/10-year yield curve inverted again yesterday, flashing another warning sign over the world’s largest economy. |
| China’s renminbi hit its lowest point in more than 11 years against the US dollar in early trading, but currency moves have mostly been muted as traders await Powell’s comments. | China’s renminbi hit its lowest point in more than 11 years against the US dollar in early trading, but currency moves have mostly been muted as traders await Powell’s comments. |