State backed Royal Bank of Scotland is the front page of the business press this morning after further details emerged from the Tan Chi Man case in Singapore. He is the senior trader who was dismissed for gross misconduct, but is suing RBS on the basis he was simply the scapegoat of a widespread problem. Details emerged that senior traders at RBS boasted about operating a “cartel” that made “amazing” amounts of money by rigging the global interest rates. Analysts are stating they believe the fine RBS will receive is likely to be larger than Barclays (£290m) and could be liable for sizeable lawsuits.
Markets fell across Europe yesterday ahead of today’s bailout figures from Spain:
IBEX 35: -3.9%
FTSE MIB: -3.3%
CAC 40: -2.8%
FTSE 100: -1.6%
*Source the CityAM
There were also riots in Madrid and Athens on Wednesday, which unfortunately has almost become the norm. A picture of riot police, flames and crowds no longer shock or surprise, they are the associated pictures to illustrate the European crisis.
However overnight in the Asian markets, China's stocks rallied the most in 3-weeks on speculation of further stimulus from the government. The Shanghai index jumped 2.6% closing at 2,056.32
Rescue talks have been stalled over a tug of war that has emerged between adidas and Sports Direct over JJB Sports stock – The Times
Starbucks plans to invade the pricey Nordic region after previously virtually ignoring the highest coffee consumption market in the world – The Wall Street Journal
RBS is sell shares in Direct Line at just below book value (£2.7bn) – CityAM
Standards Commission told to set up a "bankers’ qualification" to improve behavioural standards – CityAM
Economic data on the wires, German unemployment at 8:55, UK GDP at 9:30, US GDP, durable goods & initial jobless at 1:30. (All times London)