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Stocks rise despite Fed warning over $700bn in Covid-19 loan losses – business live

June 26, 2020 at 08:15AM

Rolling coverage of the latest financial and economic news, following the release of US bank stress test results

Not great news for corporate gender diversity:

Karen Hubbard is stepping down from Card Factory after four years. This means there are now ZERO women at the top of any FTSE listed retailers. This is despite 60% of the 3m retail workforce being female & women making 80% of all purchasing decisions. https://t.co/TiT6xXfhcz

Karen and the board have agreed that this is an appropriate time to transition to new leadership committed to the longer term successful implementation of the next phase of the Group’s return to growth.

The board and Karen have therefore agreed that she will step down as CEO and from the board at the end of June and a search for a successor will commence immediately.

Intu Properties said on Friday it was likely to go into administration after the shopping centre owner failed to secure an agreement with its creditors, my colleague Zoe Wood writes.

The company, whose centres include Lakeside in Essex and the Trafford Centre in Manchester, has debts of more than £4.5bn and said it had been unable to persuade lenders to grant a debt repayment holiday before Friday night’s deadline. The company owns a total of 17 shopping centres across the UK.

Since that update, discussions have continued with the Intu Group’s creditors in relation to the terms of standstill-based agreements. Unfortunately, insufficient alignment and agreement has been achieved on such terms.

The board is therefore considering the position of Intu with a view to protecting the interests of its stakeholders. This is likely to involve the appointment of administrators.

Related: Shopping centre owner Intu expected to go into administration

And European markets are open for trading:

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

Equity investors in both Asia and Europe seem unfazed by the results from the US Federal Reserve’s much-anticipated bank stress tests, covering the country’s 34 largest lenders

The Fed will allow US banks to continuing paying dividends but they will be capped at their current levels, but there is chatter that dividends will be cut.

If banks want to pay dividends, they must have a formula that is connected to their earnings. The next round of the reporting season will be interesting as dividend polices and provisions for bad loans will be in focus.

European Opening Calls:#FTSE 6215 +1.11%#DAX 12340 +1.33%#CAC 4988 +1.40%#AEX 567 +1.19%#MIB 19474 +1.25%#IBEX 7351 +1.11%#OMX 1676 +0.89%#STOXX 3264 +1.40%#IGOpeningCall

Continue reading… via Banking | The Guardian https://bit.ly/3i3g29B

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