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Morning Briefing

Morning Briefing

Bank of America has said that US banks could face $100 billion in exposure to struggling mining company Glencore. The assessment came in a Bank of America Merrill Lynch research note on Wednesday.

"We estimate the financial system's exposure to Glencore at over US$100bn, and believe a significant majority is unsecured. The group's strong reputation meant that the build-up of these exposures went largely without comment. However, the recent widening in GLEN debt spreads indicates the exposure is now coming into investor focus," the note said.

Deutsche Bank has warned that it could report a net loss of €6.2 billion in the third quarter and it may have to suspend dividends for the year.

Deutsche said it would book a €5.8 billion charge in impairments, "largely driven by the impact of expected highly regulatory capital requirements". It was also setting aside €1.2 billion to meet litigation costs. The bank will report third-quarter results on 29 October

Convicted currency trader Tom Hayes bought takeaway curries for six London brokers in exchange for helping him fix multi-million pound yen currency trades, according to evidence given in their trial at Southwark Crown Court.

The six brokers are accused of helping Tom Hayes — who was sentenced to 14 years in prison earlier this year for conspiracy to defraud — and others fix Libor rates. The court heard he repeatedly asked the brokers for help through instant messages and emails — including messages sent using Bloomberg Chat in which he offered to buy them curries if they helped him manipulate the Libor rate.

China's central bank, The People's Bank of China (PBOC), has said it launched the first phase of its Cross-border Interbank Payment System (CIPS) in Shanghai today. The international payments system will allow market participants outside China to clear yuan transactions with their counterparts in China. It launched with the direct participation of 11 Chinese and eight overseas banks.

In India, Axis Bank has partnered with online marketplace Snapdeal to offer pre-approved loans to SMEs. The bank said in a release that the loans will be available to some Snapdeal sellers until 31 October.

"These collateral-free loans will be offered to select sellers under Snapdeal's seller financing programme — Capital Assist. Sellers will be identified for these offers on the basis of their past performance on the Snapdeal platform."

Nigeria's central bank has said that there will be no extension of the 31 October deadline for bank customers to obtain a Bank Verification Number (BVN).

"By November 1 if you don't have a BVN you won't be able to operate your account, but that does not mean that your money will be confiscated as some people have said", the central bank's director of the Banking and Payment System Department, Dipo Fatokun, stated."No, what it means is that you should go and do your BVN, once you do your BVN and you link it to your account, you continue to operate your account."

BVNs are unique identity numbers that can be verified across the Nigerian banking industry and are intended to reduce fraud.

Meanwhile, Ecobank has decided not to sell part of its Nigerian business because of falling market values affecting its potential price.

"The market is not right for us to be selling part of that unit," said Mr Ayeyemi, the bank's new CEO, Ade Ayeyemi, "We will not be doing any dilution at the moment."

Mr Ayeyemi joined the bank last month, having previously been Citigroup's CEO for sub-Saharan Africa. His predecessor, Albert Essien, had said in June that the bank would sell a stake in Ecobank Nigeria by the end of 2015.

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