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(Alliance News) - Credit Suisse Group on Friday said the board has "unanimously" accepted the resignation of Tidjane Thiam as chief executive.
His resignation will be effective Friday next week. He will step down following the presentation of the company's fourth-quarter and full-year results, the Swiss bank said.
Thomas Gottstein, who has been with Credit Suisse for more than 20 years, has been appointed as the new CEO. He is currently CEO of Credit Suisse (Switzerland) Ltd.
"I have agreed with the board that I will step down from my role as CEO. I am proud of what the team has achieved during my tenure. We have turned Credit Suisse around. In particular, we have grown our leading Wealth Management franchise, reenergised our Global Markets business and pursued a bespoke regional approach to client coverage," said Thiam, who prior to Credit Suisse ran UK insurer Prudential.
"I had no knowledge of the observation of two former colleagues. It undoubtedly disturbed Credit Suisse and caused anxiety and hurt," Thiam added. "I regret that this happened and it should never have taken place."
Credit Suisse was shaken by the discovery in September that surveillance had been ordered on star banker and former wealth management chief Iqbal Khan. Kahn was tailed after he jumped ship to competitor UBS, sparking fears he was preparing to poach employees and clients.
That revelation came after Khan confronted the private investigators tailing him, leading to a fight in the heart of Zurich. Khan pressed charges.
An internal probe at the end of last year confirmed a second executive had been spied on.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: called down 19.0 points at 7,485.79
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Hang Seng: down 0.5% at 27,367.44
Nikkei 225: closed down 0.2% at 23,827.98
DJIA: closed up 88.92 points, 0.3%, at 29,379.77
S&P 500: closed up 0.3% at 3,345.78
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GBP: flat at USD1.2939 (USD1.2933)
EUR: soft at USD1.0971 (USD1.0980)
Gold: up at USD1,566.10 per ounce (USD1,563.48)
Oil (Brent): down at USD54.92 a barrel (USD55.14)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Friday's Key Economic Events still to come
0830 GMT UK Halifax house price index
0830 EST US nonfarm payrolls report for January
1000 EST US monthly wholesale trade
1500 EST US consumer credit
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A Chinese doctor who was punished after raising the alarm about China's new coronavirus died from the pathogen on Friday, sparking an outpouring of grief and anger over a worsening crisis that has now killed more than 630 people. At least 31,000 people have now been infected by a virus that ophthalmologist Li Wenliang and colleagues had first brought to light in late December. The disease has since spread across China, prompting the government to lock down cities of tens of millions of people, while global panic has risen as more than 240 cases have emerged in two dozen countries. A quarantined cruise ship in Japan now has 61 confirmed cases. Chinese President Xi Jinping and US President Donald Trump, whose countries have tussled over trade and human rights, spoke on the phone about the health emergency on Friday.
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BROKER RATING CHANGES
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GOLDMAN RAISES HSBC TO 'CONVICTION BUY LIST' (BUY) - PRICE TARGET 860 (865) PENCE
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GOLDMAN CUTS MELROSE INDUSTRIES TO 'BUY' ('CONVICTION BUY LIST') - TARGET 260 (250) PENCE
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JEFFERIES RAISES VODAFONE TO 'BUY' (HOLD) - PRICE TARGET 176 (144) PENCE
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COMPANIES - FTSE 100
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Peter Hargreaves, the co-founder of Hargreaves Lansdown, has sold GBP550 million million worth of stock in the fund supermarket, via an accelerated share bookbuild offering to institutional investors. He sold 34.4 million shares at 1,600.00 pence per share. Hargreaves Lansdown shares closed at 1,708.50 pence each in London on Thursday. Following the sale, Peter Hargreaves still holds an interest in about 24% of the company's issued share capital. The placing was extended from the original GBP500 million Hargreaves was hoping to raise due to "strong investor demand". Peter Hargreaves said the sale is part of a "process of long-term financial planning" to diversify his assets. "I remain, and will continue to be, a substantial shareholder in Hargreaves Lansdown. I am very proud of the business that I co-founded and helped build."
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Fashion brand Burberry said the coronavirus in China is having a "material negative effect on luxury demand". Burberry said 24 of its 64 stores in mainland China are closed, with the open stores working on reduced operating hours - where footfall has declined "significantly". "The spending patterns of Chinese customers in Europe and other tourist destinations have been less impacted to date but given widening travel restrictions, we anticipate these to worsen over the coming weeks," Burberry added. Nonetheless, the fashion label said it is taking "mitigating actions" and is "confident" in its strategy.
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Insurer Admiral said it expects its 2019 pretax profit to be "strong" due to higher than expected reserve releases in UK motor insurance. Admiral is guiding for pretax profit between GBP510 million and GBP540 million, which would represent anywhere between a 6% and 13% rise year on year. "The higher than expected profit is due to unusually positive development, during 2019, in the cost of UK motor bodily injury claims from a number of prior underwriting years. This has led to elevated reserve releases and profit commission revenue," Admiral explained. The insurer did note, however, its loss ratio will be higher than recent years, due to higher levels of claims inflation during 2019.
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COMPANIES - FTSE 250
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Housebuilder Bellway said it completed 5,321 new homes in the six months to March 31, a new record for the company, and a 6.3% rise year on year. Pretax profit is expected in line with market forecasts, Bellway said. Housing revenue is guided to rise by about 4% to GBP1.53 billion from GBP1.47 billion a year before. The rise in completions was partially offset by a 2.5% slip in the average selling price to GBP286,500 from GBP293,882. The reservation rate for private homes was up 11% to 151 per week, with a 6% rise in the overall reservation rate to 194 per week.
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Friday's Shareholder Meetings
Brewin Dolphin Holdings
Cerillion
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By Tom Waite; thomaslwaite@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
