Coutts CEO stands down in Farage bank account row, as Sunak fails to back chairman Davies – business live

Coutts CEO Departs Amid Farage Bank Feud

Breaking News: The CEO of Coutts has stepped down following a heated controversy surrounding Nigel Farage's bank account closure.

NatWest, the parent company of Coutts, has recently revealed that Peter Flavel will resign with immediate effect.

Paul Thwaite, who took on the role of CEO for NatWest Group yesterday following Alison Rose's resignation, states:

Peter Flavel and I have reached a mutual agreement that he will retire from his positions as CEO of Coutts and CEO of our Wealth Businesses, effective immediately.

Although I will personally feel regretful about Peter's departure as a coworker, I genuinely believe that this choice is the correct one for Coutts and the broader organization.

Mohammad Kamal Syed, who leads the asset management division at Coutts, has been chosen as the temporary CEO of Coutts, according to Thwaite.

Mo brings a wealth of knowledge and experience in managing finances and investments, making him the perfect candidate to guide Coutts during these challenging times while we initiate the quest for Peter's successor.

Earlier this week, Farage demanded that Flavel resign, following the revelation that a Coutts report revealed the closure of the ex-Ukip leader's bank account due to financial reasons - his wealth having decreased to a certain level - and due to concerns regarding his "discriminatory, nationalistic, and prejudiced opinions".

Here's the chronological sequence of events regarding the unfolding crisis at NatWest, one of the largest banks in the United Kingdom, over the past few weeks:

Nigel Farage takes to Twitter to express his belief that it was inevitable for Coutts CEO Peter Flavel to step down at some point.

It was inevitable that Peter Flavel, the CEO of Coutts, would resign at some point.

He is ultimately responsible for excluding me from the banking system due to my political beliefs.

I actually reached out to Mr. Flavel on two separate occasions before making this issue public, but unfortunately, I didn't receive any kind of response or acknowledgement from him.

Peter Flavel: Fully Accountable For Farage Matter

Peter Flavel, who is leaving his position as the leader of Coutts, states that he is assuming accountability for how the Bank managed Nigel Farage's situation.

I feel an immense sense of pride regarding my seven-year tenure at Coutts, and I would like to express gratitude to the team responsible for transforming it into a remarkably successful enterprise. However, in our dealings with Mr. Farage’s situation, we have regrettably not met the bank’s exceptional benchmarks for providing personalized service.

As the Chief Executive Officer of Coutts, it is only fitting that I accept complete accountability for this situation, which is why I am resigning from my position.

Coutts CEO Resigns Amidst Farage Bank Row

Breaking News: The leader of Coutts has stepped down due to the dispute surrounding Nigel Farage's closure of his bank account.

NatWest, the parent company of Coutts, has recently declared the prompt resignation of Peter Flavel.

Paul Thwaite, the newly appointed CEO of NatWest Group following Alison Rose's departure, stated:

Peter Flavel and I have reached an agreement for him to resign as the CEO of Coutts and our Wealth Businesses, effective immediately. This decision has been made mutually by both parties.

Although I will personally feel regretful about parting ways with Peter as a coworker, I am confident that this choice is the most appropriate for Coutts and the larger organization.

According to Thwaite, Mohammad Kamal Syed, who is currently leading Coutts' asset management team, will take on the position of temporary CEO at Coutts.

Mo has a vast background in managing wealth and is the perfect individual to guide Coutts during this challenging period as we embark on the quest for a successor to Peter.

Earlier this week, Farage demanded that Flavel resign, following the revelation that a Coutts report revealed that the ex-Ukip leader's bank account was shut down due to financial considerations - as his wealth had dropped below a certain limit - and worries regarding his "prejudiced, nationalistic, and discriminatory beliefs".

Lagarde: Uncertain Growth & Inflation Outlook

ECB President Christine Lagarde informs journalists that the future of economic growth and inflation in the eurozone is shrouded in considerable uncertainty.

Potential drawbacks to economic growth consist of the ongoing conflict between Russia and Ukraine, or the potential occurrence of escalated geopolitical tensions that disrupt trade.

She cautions that inflation might increase due to the escalating expenses of energy and food, which are connected to Russia's departure from the Black Sea grain initiative.

Lagarde also states that the unfavorable climatic circumstances, caused by the ongoing climate crisis, might result in a larger than anticipated spike in food prices.

According to Christine Lagarde, the President of the European Central Bank, the manufacturing sector in the eurozone is facing obstacles due to low demand from foreign markets, while momentum is gradually declining in the services sector.

She foresees a period of low growth in the near future, but expects it to improve later on, thanks to the strong job market.

Lagarde: ECB Prioritizes "data-based Rates"

ECB chief Christine Lagarde is currently hosting a media briefing to elaborate on the recent surge in interest rates.

She starts by reciting the announcement that was published thirty minutes ago, which cautions about the persistence of elevated inflation levels for an extended period, and the sustained presence of high underlying inflation.

Lagarde affirms that the ECB will maintain interest rates at "adequately constraining levels for as much time as required" in order to reduce inflation to its desired 2% goal.

The Governing Council will persist in using data as the basis for deciding how much and for how long restrictions should be enforced.

Especially, the decisions regarding interest rates will still rely on the central bank's evaluation of the inflation forecast considering the latest economic and financial information, the changes in regular inflation, and the effectiveness of monetary policy transmission.

????️ #ECB Chief Lagarde is about to start her press briefing in just five minutes.

???? Anticipate her delivery of the ECB's potential hike in rates during September, however, convincing the market may pose a challenge due to prevailing economic patterns and the time span before September.#Forex

Analysts' Take On ECB Rate Hike

Here's further feedback regarding the increase in interest rates by the European Central Bank.

Carsten Brzeski, ING's Macro Chief, states:

The European Central Bank (ECB) has recently increased its main policy interest rates by 25bp. As a result, the deposit interest rate has reached 3.75%. What is particularly noteworthy is that the accompanying policy statement has not indicated any hesitation or concern, thus leaving room for the possibility of future rate hikes. We will have to wait and see if this position is reinforced during the upcoming press conference, scheduled for 2.45pm CET.

Following the prior announcement made in June, it was quite challenging to refrain from increasing interest rates at present. The European Central Bank has been extremely clear that the possibility of terminating rate hikes too early carries a considerably greater risk compared to exceeding the boundaries.

Here we have Alex Livingstone, leading the trading department for foreign exchange and exchange-traded funds at Titan Asset Management.

The European Central Bank (ECB) made a similar move to the Federal Reserve today by raising interest rates by 25 basis points to reach 4.25%. Nonetheless, the statement from the ECB used a more cautious tone than expected by the markets. The ECB acknowledged that there were indications of inflation decreasing and acknowledged that tightening financial conditions were affecting demand.

This is a clear acknowledgement that as inflation subsides, there will be an increasing emphasis on economic growth in the future.

According to Ben Laidler, a market strategist at eToro, the increase in interest rates in Europe is nearing its end.

Due to a significant decrease in inflation fueled by a sudden burst of energy, as well as an impending economic downturn led by Germany, the European Central Bank (ECB) has decided to increase interest rates by 0.25% today. Moving forward, the ECB will adopt a more cautious and data-dependent strategy, with the highest probability of a single final rate hike.

"This more lenient position will dampen the momentum of the Euro's upward trend, provide reassurance to numerous exporters in Europe, and bring the world's two leading central banks strikingly near the conclusion of their intense measures to raise interest rates."