RBS would leave Scotland in case of independence
In a blow to the Scottish independence campaign, top financial groups including the Royal Bank of Scotland and Lloyds Banking Group say they will move headquarters to England should Scots vote to break away from the United Kingdom.
RBS, which has been based in Scotland since 1727, said Thursday it has drawn up contingency plans because of uncertainties that could hurt its business and customers should Scots vote to become independent next week. Lloyds Banking Group, which owns Halifax and Bank of Scotland, also said it had plans to set up new “legal entities” in England if the Yes campaign succeeds.
“There are a number of material uncertainties arising from the Scottish referendum vote which could have a bearing on the bank’s credit ratings, and the fiscal, monetary, legal and regulatory landscape to which it is subject,” RBS said in a statement.
ARGENTINA OK’S DEBT RESTRUCTURING LAW
Argentina’s Congress has approved a bill to restructure the country’s debt and sidestep a U.S. ruling that recently pushed it into default.
The lower house of Congress voted in favor of the bill early Thursday. It had already passed the Senate.
The measure would let Argentina’s government pay bondholders locally to skirt the U.S. financial system, which is bound by a U.S. court order restricting Argentina’s repayments.
Argentina settled most of its debt with creditors after its 2001 default by trading lower-value bonds for defaulted debt. But a group of holdouts refused to accept that deal and continues to seek about $1.5 billion.
GAZPROM TO FACE BIGGEST DROP IN EU REVENUE
OAO Gazprom, the world’s largest natural gas exporter, may face the biggest decline in European gas revenue in five years as demand weakens and buyers negotiate discounts, according to two company officials.
Sales to the European Union, the source of 40 percent of revenue under Russian accounting, are forecast to fall more than 10 percent to about $55 billion this year, said the officials, asking not to be identified before the number is public.
The forecast doesn’t take into account the rift between the European Union and Russia over its involvement in the crisis in Ukraine, the main transit route for gas to Europe. While flows so far remain unaffected, the European Union is seeking to ease reliance on Russian gas. Demand is falling after the region pumped a record volume of the fuel into underground storage to guard against shortages.
HOME DEPOT HACKERS DIFFERENT FROM TARGET’S
Home Depot was hacked with a malicious software program that plunders store registers while disguising itself as antivirus software, according to two security researchers.
The credit card-stealing program used in the attack on the Atlanta-based retailer is being dubbed FrameworkPOS, and differs significantly from the software used last year to hack Target, said Dan Guido, chief executive of Trail of Bits, an information security company. Guido, who reviewed technical information about the Home Depot incident, said the differences in the malware are strong indicators that the hacks are probably the work of two different groups.
FINGERPRINT CARDS MIRED IN INSIDER TRADING
Fingerprint Cards, a Swedish maker of biometric sensors for smartphones, said chief executive Johan Carlstroem and a former board member are being investigated for insider trading. The shares plunged as much as 42 percent.
Fingerprint Cards is cooperating with the Swedish Economic Crime Authority’s investigation, the company said Thursday. Stockholm police held Carlstroem for a day and a half after the executive was arrested on Tuesday, he said in a phone interview.
“I’m innocent and that will be proven,” Carlstroem said. “Why would I take the risk? So far the prosecutor has proven nothing. The allegations will be dismissed when he investigates more.”
EL SALVADOR TO PLAN BENCHMARK BOND SALE
El Salvador is seeking to sell benchmark bonds abroad three months after the International Monetary Fund said the Central American country needs to cut its deficit and boost growth to make its debt load sustainable.
El Salvador is targeting a yield of about 6.75 percent in Thursday’s sale of 12-year notes, according to a person familiar with the matter, who asked not to be identified because the information isn’t public. Citigroup and Deutsche Bank were hired to sell the debt, the person said. A benchmark offering is typically at least $500 million.
DISNEY, FOX MULL JOINING SONY’S INTERNET TV
Walt Disney and 21st Century Fox are in discussions to supply Sony with programming for its planned Internet-based TV service, according to people familiar with the conversations.
Disney and Fox would join Viacom, which said Wednesday it will provide 22 networks, the first time the media company, headed by chairman Sumner Redstone, has made its shows available for a Web-based service. The deal covers live and on-demand programming, Viacom and Sony said in a statement.
Sony’s service will debut with “major programmers,” according to Wednesday’s statement. The company wouldn’t specify when, or identify potential partners. No deal with Disney or Fox is imminent, said the people, who asked not to be named because the talks are private. Sony shares rose.