Good morning! Here’s what you need to know in markets on Friday.
1. Charlotte Hogg, who resigned from the Bank of England earlier this year after failing to declare her brother’s job at Barclays, has been named the new head of Visa’s Europe business, the Telegraph. Hogg had been seen as a potential successor to Bank of England Governor Mark Carney, but was forced to quit as both deputy governor and chief operating officer of the BoE in March after it emerged she had not disclosed that her brother was head of strategy at Barclays.
2. The euro climbed above the psychologically significant barrier of 1.20 against the dollar on Thursday afternoon as European Central Bank President Mario Draghi spoke to journalists following the bank’s latest policy announcements. Draghi’s post-decision comments — in which he said that the ECB’s governing council will begin to discuss further tapering of its quantitative easing programme in the “autumn” and could make an announcement at its October meeting — sent the euro higher by more than 1%.
3. The disgraced public relations firm Bell Pottinger is on the brink of collapsing into administration, just days after controversial work for a South African client led to its expulsion from its industry association, according to Sky News. Sky reports that executives at Bell Pottinger briefed staff on Thursday afternoon that the company’s financial position had become parlous and that they could choose to terminate their employment immediately.
4. Consumer goods giant Unilever has snapped up tea group Pukka, reports the Independent. Bristol-based Pukka, which specialises in herbal infusions in exotic flavours, was founded in 2001 by Tim Westwell and Sebastian Pole.
5. Jaguar Land Rover has become the latest large carmaker to say it will stop launching new models solely powered by internal combustion engines, two months after Volvo pledged to do so, the Guardian reports. The UK-based manufacturer promised that all new models from 2020 will be fully electric or hybrid, a year later than Volvo’s target, but a big step beyond its unveiling last November of a single electric concept car.
6. Unions are demanding urgent talks with British Airways after the carrier announced plans to close its main pension scheme, Sky News reports. The airline said it had to address a “significant and growing” funding deficit faced by the New Airways Pension Scheme (NAPS) – a final salary plan with 17,000 members.
7. Eicher Motors, the Indian company that owns Royal Enfield, is set to make a binding bid to buy Ducati of up to $US2 billion by the deadline at the end of the month, the Times reports. Volkswagen, which owns Ducati, put the superbike maker up for sale in April. Other companies reported to have shown an interest in bidding include Harley-Davidson, Suzuki and India’s Bajaj Auto.
8. Asian shares edged up on Friday as investors kept a wary eye on another U.S. storm. MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.1%, but was still down 0.2% in early trading. Japan’s Nikkei stock index was pressured by a stronger yen and slipped 0.5%, losing 2% for the week.
9. Supervisors at the Bank of England expressed “significant concern” to Deutsche Bank in a letter concerning its UK branch authorisation ahead of Brexit, according to a leaked internal document from the German lender. Key areas of concern for the Prudential Regulation Authority, the supervisory arm of the central bank, include Deutsche Bank’s recovery and resolution planning in a crisis and its overall business model, according to a confidential summary of regulatory interaction seen by Business Insider.
10. Zoopla Group is branching out further from its traditional business of house listings with the acquisition of financial comparison website Money.co.uk. ZPG, Zoopla’s parent group, announced on Thursday that it has reached a deal to buy Money.co.uk for £80 million, with the possibility of an additional £60 million payout if the business performs in-line with projections over the coming years.