These are the salient Corporate and Financial news for our first edition of the Midday Corporate Dispatch.
Bank of Valletta’s last correspondent bank for US dollars transactions is pulling the plug on its relationship with the Maltese bank come December. ING will stop clearing US dollar transactions for BOV as of December 14, the Maltese bank said in a brief statement to the market on Monday morning. – Via The Times
The establishment of subsidiaries by RyanAir in Austria, Poland and Malta have some other logic beyond fiscal and employment benefits. Low-cost carriers have been slow to gain market share in German-speaking countries, where customer loyalty to national carriers is stronger than elsewhere. Lauda, named after Niki Lauda, an Austrian racing driver who died last month, is a uniquely appealing brand for locals. In Poland, the Buzz name bears more than a passing resemblance to Wizz Air, a rival low-cost airline, which is snapping at Ryanair’s heels in the country. In Malta, favourable employment laws could be the target. Ryanair plans to register 50 of its aircraft in the country, only 10 of which will serve the local market. – Via Economist
“The pilots of the Ethiopian Airline plane that crashed in March with the loss of 157 lives were not at fault, the airline’s chief executive has said. He was responding to claims from a US congressman that mistakes by the pilots were a factor in the aircraft’s failure. The loss of Ethiopian flight ET302 was the second fatal accident involving a 737 Max in the space of five months. A near identical aircraft, owned by the Indonesian carrier Lion Air, went down in the sea off Jakarta in October 2018.” – Via BBC
“British companies look set to cut their investment by the most in 10 years in 2019 as the Brexit crisis drags on, weighing on future economic growth prospects, a survey showed on Monday. Brexit worries will see business investment contract faster this year and recover more slowly next year than was previously thought, the report says. The British Chambers of Commerce (BCC) says firms are putting resources into contingency plans, such as stockpiling, in a way that is “not sustainable”. It says companies should be investing in measures aimed at economic growth.” – Via BBC
German airline Lufthansa has lowered its profit outlook for 2019, as it feels the squeeze from its European low-cost rivals. Via FT
“Apple CEO Tim Cook warned that Silicon Valley companies needed to take responsibility for the “chaos” they create in a speech Sunday at Stanford University. “Lately it seems this industry is becoming better known for a less noble innovation – the belief you can claim credit without accepting responsibility,” Cook said. “We see it every day now with every data breach, every privacy violation, every blind eye turned to hate speech, fake news poisoning out national conversation, the false miracles in exchange for a single drop of your blood.” – Via CNBC
“Huawei Technologies Co Ltd announced a 40% decline in international smartphone shipments. The Chinese technology company is looking at options that include pulling the latest model of its marquee overseas smartphone, the Honor 20, according to the article, which cited people familiar with the matter.” – Via CNBC / Bloomberg /Independent
“Deutsche Bank is readying a revamp and may shut or slash all equity and trading business outside of Europe, according to a report Sunday in the Financial Times newspaper. In its overhaul the company is introducing a “bad bank” to hold tens of billions of euros of assets and shrinking or shutting its U.S. equity and trading businesses, the Financial Times reported. The bad bank would house or sell assets valued at up to 50 billion euros ($56.06 billion)- after adjusting for risk – and comprise mainly long-dated derivatives, the FT reported, citing four people briefed on the plan.” –Via FT/Reuters/The Street
“Oil prices rose on Monday after U.S. Secretary of State Mike Pompeo said Washington will take all actions necessary to guarantee safe navigation in the Middle East, as tensions mounted following attacks on tankers last week. – Via Reuters
“Facebook Inc. said it is ramping up its global advertising spending as it aims to rebuild trust after a series of privacy missteps and other controversies dented the social-networking giant’s reputation.” – Via WSJ
“As President Donald Trump prepares to launch his 2020 campaign, he posted a warning over Twitter: If he’s not elected, the markets will crash.
“The Trump Economy is setting records, and has a long way up to go,” wrote Trump over Twitter. “However, if anyone but me takes over in 2020 (I know the competition very well), there will be a Market Crash the likes of which has not been seen before!” – Via The Street
Traders at the London Metal Exchange will no longer be allowed to drink during the work day. The metal market, where global prices for billions of pounds worth of metals are set each day, is enforcing a zero-tolerance policy that will see traders banned from entering the floor while under the influence. The move follows that of Lloyd’s of London, which in April implemented an alcohol and drugs ban after reports of widespread sexual harassment and misconduct. – Via The independent
Compiled by CI Consulta Advisory Services