NatWest: We’ve taken a pretty hard line on crypto
Alison Rose, the head of NatWest bank, says her bank is preventing customers from investing in crypto assets, as part of a crackdown on fraud.
Rose told the Treasury committee that NatWest has “quite strict rules” restricting its customers investing in crypto, and has blocked a number of platforms and exchanges where customers suffered fraud.
“We look at it through a fraud perspective,” Rose told MPs. “We are restricting people investing in crypto because we are concerned.”
She says this policy can frustrate customers who want to invest their own money in crypto.
But, Rose explains:
“We have taken a pretty hard line as a bank on crypto, and we’re blocking retail and wealth customers from transfering into crypto assets because of [concerns over] the volatility and the stability of the platform.”
She reveals that 60% of NatWest customers who fell victim to frauds and scams in the last quarter of 2022 saw them on social media platforms and technology platforms, so the bank is doing its best to combat this “crime against customers” (fraud generally, not just crypto).
Key events
Closing post
Time to wrap up – here are today’s main stories so far:
Bitcoin has crept up towards the $23,000 mark today, up around 0.15% this session.
So far this year, the most poplar crypto currency has gained almost 40%, but had slipped back in the last few days as traders grew more uncertain about monetary policy.
Wael Makarem, Senior Market Strategist – MENA at Exness, explains:
Bitcoin was able to recover strongly since the beginning of the year as sentiment among investors improved globally, inflation retreated and fears of an economic slowdown subdued. However, the crypto market remains well below its historical highs and could strongly benefit from a looser monetary policy.
Over the longer term, interest rates could stabilize this year and could start declining towards the end of the year if the Federal Reserve’s inflation targets are met in the meantime. As a result, while a tighter monetary policy could negatively affect digital assets over the short term, it could pave the way for a more significant recovery within the year.
The dollar has now climbed to a one-month high against a basket of currencies:
U.S. DOLLAR INDEX HITS ONE-MONTH HIGH; LAST UP 0.328% AT 103.920
— Breaking Market News (@breakingmkts) February 7, 2023
Stocks have inched lower at the start of trading in New York.
The Dow Jones industrial average has dipped by 92 points, or 0.27%, to 33,799 points, as anxiety over interest rates lingers. The S&P 500 index is down 0.15%.
But shares in US retailer Bed Bath & Beyond tumbled around 48% at the open, a day after proposing a $1.025bn financing to save it from bankruptcy.
The eleventh-hour deal that will be used to restructure the company’s debt load outside of court. The company had been preparing for a Chapter 11 filing after lenders declared it in default last month.
Rishi Sunak’s first cabinet reshuffle since becoming PM in October has implications for the business world and the UK economy.
The BEIS department is being broken up, with the creation of a new Department for Energy Security & Net Zero to be run by Grant Shapps, and a combined Department for Business and Trade this morning, with Kemi Badenoch as its secretary of state.
Delighted to become the first Secretary of State for the new Department for Energy Security & Net Zero. My focus will be securing our long-term energy supply, bringing down bills and thereby helping to halve inflation.https://t.co/1Qd59oCMg8
— Rt Hon Grant Shapps MP (@grantshapps) February 7, 2023
Sunak is also creating a dedicated Department for Science, Innovation and Technology, and refocusing the Department for Culture, Media and Sport to “recognise the importance of these industries to our economy”.
Stephen Phipson, CEO of Make UK, the manufacturers’ organisation says these departments ned to collaborate to develop an industrial strategy.
“Business now needs a period of stability and for the four new departments to work together to create a powerful industrial and energy strategy which delivers a long-term and consistent plan to boost growth and help Britain’s world class manufacturers compete more effectively on the global stage.
“The continued emphasis on science and innovation demonstrates the Government’s commitment to ensuring the UK remains a science super-power but it is critical that we continue the scale up of innovation within Britain’s businesses to boost growth and tackle the UK’s longstanding issues with under investment and productivity. Now the new Secretaries of State must work urgently with business to develop a consistent industrial strategy to ensure buy in from all Government departments and one which is understood to be a priority at national and regional level.”
The UK property sector, meanwhile, is getting another new housing minister, as incumbent Lucy Frazer has been promoted to Secretary of State for Culture, Media and Sport in the reshuffle.
HOUSING is a huge issue for the UK population, yet @RishiSunak is about to appoint the 15th Housing Minister since the @conservatives gained power in May 2010. No wonder no significant progress is being made to fix the housing crisis.
— Paul Day (@PaulDayMK) February 7, 2023
Speaking of savings…NS&I has launched a new issue of its Green Savings Bonds, paying an annual rate of 4.20% over a three-year term.
Money invested in the bonds will help to finance projects as part of the UK Government’s Green Financing Framework.
Projects will include making transport greener, using renewable energy over fossil fuels, preventing pollution, using energy more efficiently, protecting natural resources and adapting to a changing climate.
Savers will need to be prepared to lock their money away for three years, as funds cannot be withdrawn during this time. There is a a cooling-off period in the first 30 days of investment.
The minimum investment in Green Savings Bonds is £100, with a maximum limit of £100,000 per person for each Issue.
Savings giant @nsandi has just launched a new issue of its Green Savings Bonds paying 4.20% interest. Savers putting money in the bonds will help to finance green projects across the UK. Here’s how the new issue compares with deals already available:https://t.co/MSBXzYO6xF
— Vicky Shaw (@ThisIsVickyShaw) February 7, 2023
MPs on the Treasury committee also challenged the bank bosses over complaints from constituents that they are too tardy in passing interest rate increases onto savers.
Labour MP Angela Eagle accused banks of being “ungenerous” on the rates that they offer on instant saver accounts, as the FT report here.
Tory MP and former minister Andrea Leadsom asked lenders whether they relied on the “inertia” of customers and questioned why they did not inform customers on better offers at competitors.
Lenders pointed to products which they said were highly competitive, and spoke about trying to help customers to move into regular saving.
As Dame Alison Rose, Natwest’s chief executive, put it:
“Our digital regular saver which is paying 5 per cent is encouraging people to build that savings habit.”
Barclays UK CEO Matt Hammerstein told MPs that its Rainy Day saver account paid 5%, and suggested that some customers have lost the habit of saving, due to interest rates being so low for so long.
Banks bosses defend branch closures to MPs
Britian’s banking bosses have insisted they remain committed to physical branches, after a string of recent closure announcements which have been criticised by consumer groups and unions.
During today’s Treasury Committee hearing, Ian Stuart, chief executive of HSBC UK, said the bank is “absolutely committed to a physical footprint in the UK”.
He told MPs:
“We think it’s important, but we have to get it scaled properly for the long term.
“Customer behaviours started to change in 1982 with the advent of the cash machine. And it’s been on a journey from that point and it’s speeded up.
“And through the pandemic it accelerated, there’s no question that customers changed their banking behaviours.”
HSBC announced in November it planned to close more than one in four bank branches in the UK.
Dame Alison Rose, chief executive of NatWest Group, said the bank was seeing significant shifts in customer behaviour.
“But we recognise we need to look after all of our customers and make sure that we support particularly vulnerable customers.”
NatWest announced it was shutting another 23 branches in England and Wales in January.
Charlie Nunn, CEO of Lloyds Banking Group [which announced 40 branch closures last month] told MPs:
“We remain very committed to our branch network.”
In December, research from KPMG found that cost of living pressures have increased the number of customers relying on bank branches to help manage their squeezed budgets.
You can’t patent the sun, as polio vaccine developer Jonas Salk pointed out in 1955.
But in the supermarket sector, Tesco and Lidl have begun a High Court fight over a yellow circle logo. The dispute centres on Tesco’s use of a yellow circular loyalty programme logo which Lidl alleges infringes its trade marks for the circular Lidl logo.
PA Media has the details:
German discount chain Lidl says a trademark, and copyright, has been infringed, while Tesco has made a counterclaim.
Lidl uses a yellow circle in its main logo, and Tesco uses one to highlight offers available to members of its Clubcard scheme.
A judge began overseeing a trial at the High Court in London on Tuesday.
Mrs Justice Joanna Smith was shown images of logos, including a yellow circle, surrounded by a red ring, containing the word “Lidl”; a yellow circle, surrounded by a red ring, with no words; and a yellow circle without a red surround and the words “Clubcard Prices” in the middle.
Xi: China will strive to achieve economic improvement
Over in Beijing, president Xi Jinping has pledged that China will work to achieve economic improvement.
Reuters has the details:
China will strive to achieve overall improvement in economic operations, further guide business entities to strengthen confidence and stabilize expectations, state radio cited President Xi Jinping as saying on Tuesday.
The world’s second-largest economy grew 3% in 2022 from a year earlier, badly missing the official target of around 5.5% and hitting one of its worst rates in nearly half a century.
More from the Treasury committee hearing:
HSBC boss Ian Stuart acknowledged how far the mortgage market has come in recent months, from 7% rates in Dec to sub-4% rates today
In December, 60,000 HSBC borrowers were facing 7% rates. ‘If you heard the strain in our customers, the anxiety in our customers was palpable.’— Ruby Hinchliffe (@rubyhinchliffe) February 7, 2023
