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British banking watchdogs have given their blessing to a takeover of Credit Suisse by its Swiss peer UBS, as financial regulators around the world race to contain the industry’s biggest crisis since 2008.

Sky News understands that the Bank of England has indicated to international counterparts and to UBS that it will support the emergency transaction, which both European banking giants want to announce later on Sunday.

Credit Suisse has been brought to the brink of financial calamity despite securing a $54bn (£44bn) credit line from Switzerland’s central bank several days ago.

The move, which was designed to reassure markets and depositors, failed to halt a rush of customer withdrawals, prompting a request from the Swiss government for UBS to explore a takeover of its historic rival late last week.

Jeremy Hunt, the chancellor, and Andrew Bailey, the Bank of England governor, are being kept informed about developments relating to the most significant global banking merger since the financial meltdown of 15 years ago.

Although Credit Suisse has a market capitalisation of just $8bn (£6.6bn) – down from close to $100bn (£82bn) at its 2007 peak – fears for its future have sent shockwaves through financial markets across the world.

Its vast investment bank balance sheet is reported to represent a stumbling block in the talks with UBS, and the precise structure of a deal remained unclear on Sunday morning.

UBS’s board, chaired by the former Morgan Stanley executive Colm Kelleher, is said to have been reluctant to explore a deal with its fellow Swiss bank, which has been forced into a string of capital-raisings after huge fines and restructuring charges.

City sources said authorities in the US had pressed the Swiss government to expedite a solution to the crisis during the course of this weekend.

Reports suggest that UBS wants the Swiss government to provide a multibillion dollar backstop to insure it against losses arising from the takeover of its smaller rival.

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The current tumult in the global banking sector was sparked by the collapse of Silicon Valley Bank in the US earlier this month.

Its UK branch was rescued by HSBC for £1, but a number of other mid-sized American lenders have also been forced to seek emergency funding.

Hopes takeover will avert contagion

Nevertheless, there are hopes that a takeover of Credit Suisse will avert the kind of contagion that evokes genuine comparisons with the crisis of 2008, when banks including Bear Stearns and Lehman Brothers collapsed.

Credit Suisse employs approximately 5,000 people in the UK, making it one of the largest investment banking employers in the City.

The Bank of England declined to comment on Sunday, while Credit Suisse and UBS have been contacted for comment.

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Reform took advantage of the PM’s holiday – and it’s clear he’s now changed strategy

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Reform took advantage of the PM's holiday - and it's clear he's now changed strategy

Immigration was the first thing on the government’s agenda to kick off the first week back from recess, and they wanted you to know it.

The home secretary gave an update to the House, announcing a shakeup of family reunion rules for asylum seekers, even before some backbenchers had made it back to parliament from their break.

Facing criticism for being on the back foot after a summer of protest outside asylum hotels, they were keen to defend their record and get back on track – but is it too late?

It’s a clear nod to the political void Reform UK has seized on while the prime minister has been on holiday.

Last week, Nigel Farage unveiled his party’s mass deportation policy – though the issue of women and children still seems to be worked out.

But perhaps none of that matters as voters overwhelmingly believe Reform cares about this issue – and as Chris Philp, the shadow home secretary, pointed out on Monday, voters have lost confidence in the government somewhat to solve what many see as an immigration crisis on their doorstep.

So it’s clear the strategy has changed from the government.

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‘Substantial reforms are needed now’

Gone are the bold slogans of “smashing the gangs” and instead, detail and policy was given on Monday. It was nothing new, but more substance on what the government has done and where they want to move to. Even controversially, reassessing their relationship with the European Convention on Human Rights (ECHR).

The biggest update though, was on their one-in-one-out policy agreement with France, which will now set to start returns later this month.

It’s finally hit home for the government that the public want proof not just rhetoric, and they want to know crucially when they will start to see change.

But the fightback, the reset, whatever the government wants to call it, will only make a difference once that finally starts to work.

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Police ask for help with unsolved murder more than 50 years ago

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Police ask for help with unsolved murder more than 50 years ago

Police are asking for help with an unsolved case, 52 years after the murder of a schoolboy in Belfast.

Brian McDermott was 10 when he disappeared from Ormeau Park on Sunday 2 September 1973. His remains were recovered from the River Lagan almost a week later.

Detectives from the Police Service of Northern Ireland’s Legacy Investigation Branch have given a timeline of events as part of their appeal.

Brian left his home on Well Street in the lower Woodstock Road area of east Belfast at around 12.30pm and failed to return for his Sunday dinner.

Detectives said he was last seen playing alone in the playground between 1pm and 3pm that afternoon.

His remains were recovered in the water, close to the Belfast Boat Club.

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River Lagan, where the remains of schoolboy Brian McDermott were recovered. Pic: PSNI handout/PA
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River Lagan, where the remains of schoolboy Brian McDermott were recovered. Pic: PSNI handout/PA

A PSNI spokesperson said: “We are acutely aware of the pain and suffering that Brian’s family continue to feel, and our thoughts very much remain with the family at this time.

“Despite the passage of time, this murder case has never been closed and I am hopeful that someone may be able to provide information, no matter how small, which may open a new line of inquiry, or add a new dimension to information already available.

“It is also possible that someone who did not volunteer information at the time may be willing to speak with police now. Legacy Investigation Branch Detectives will consider all investigative opportunities as part of the review into Brian’s murder.”

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Premier League flexes its financial muscle in record-breaking transfer window

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Premier League flexes its financial muscle in record-breaking transfer window

The transfer window was a show of strength in a record-breaking summer across the Premier League.

The totaliser crept over £3bn in spending, with more than half of it flowing among the 20 clubs rather than having a redistributing effect across Europe.

The start of new Premier League TV deals – the biggest individual source of income being from Sky News’ parent company Comcast – provides certainty for the next four years, while rival leagues can struggle to sell rights.

And the feared threat from Saudi Arabia has not materialised. It is an attractive and lucrative destination for some players, but not yet the ultimate destination.

But the kingdom has still influenced this transfer window.

Alexander Isak has joined Liverpool. Pic: Reuters
Image:
Alexander Isak has joined Liverpool. Pic: Reuters

Let’s start with Newcastle, four years into their ownership by the Saudi sovereign wealth fund.

Having secured a return to the Champions League, bringing UEFA riches, this was the summer to grow rather than lose talent to rivals.

But the Premier League’s pecking order became clear when Alexander Isak pushed for a move to Liverpool and rejected bids that did not deter his ambitions.

Player power won out.

The 25-year-old striker was able to withdraw himself from the squad, miss the opening three matches of the season, and put out a statement claiming promises had been broken by the Magpies.

Read more: Isak completes £125m Liverpool move

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Will Liverpool’s spend equal success?

Liverpool ‘loading up on talent’

And so he held on until deadline day, biding his time, sitting it out, and standing firm. Newcastle folded, accepting £125m – £20m lower than their apparent valuation.

Breaking the British record fee was Liverpool’s American ownership flexing financial muscle like never before.

The Premier League champions allowed manager Arne Slot to build from a position of strength.

This was the second time they broke the record in this window after bringing in another forward, Florian Wirtz, in a £116m deal.

More than £400m in reinforcements arrived at Anfield in a matter of weeks.

Former Liverpool managing director Christian Purslow told Sky Sports: “Liverpool are making hay while the sun shines, going for it. Really loading up on talent.

“Other clubs should be fearful and respectful of the way [Fenway Sports Group] are running their club.”

Eberechi Eze (centre right), who left Palace for Arsenal this summer, celebrates winning the FA Cup final. Pic: PA
Image:
Eberechi Eze (centre right), who left Palace for Arsenal this summer, celebrates winning the FA Cup final. Pic: PA

The Isak deal weakened their Champions League rivals from the North East after banking £57m from another club owned by the Public Investment Fund when Darwin Nunez was offloaded to Saudi.

And PIF funded Chelsea’s summer spending spree in less obvious ways.

The Blues did negotiate a £44m package with PIF-backed Al Nassr deal for Joao Felix, recouping the fee paid just a year earlier.

But then there was the £90m prize money collected for winning the new FIFA Club World Cup – a competition bankrolled by PIF subsidiaries.

Where does this leave Newcastle? Still spending around £250m.

Florian Wirtz joined Liverpool from Bayer Leverkusen. Pic: AP
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Florian Wirtz joined Liverpool from Bayer Leverkusen. Pic: AP

Players and Liverpool couldn’t get all their way this summer, with Marc Guehi forced to stay at Crystal Palace after the FA Cup winners failed to secure a replacement for the England centre-back.

The late drama was just the latest of the summer transfer window’s twists and turns.

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Both Arsenal and Manchester United also spent more than £200m each. The Gunners spent big in pursuit of a title that’s eluded them since 2004, while the Red Devils are just trying to get back into the Champions League.

It added up to a new record total outlay that comfortably eclipsed the previous Premier League record of £2.46bn from 2023.

The £3bn is more than the rest of Europe combined, showing both where the power is in world football and why the Premier League is the one the world wants to watch.

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