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

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One of NatWest’s 20 largest shareholders has told Reuters that chairman Howard Davies’ position is looking increasingly shaky.

Sir Howard’s head of one of the three which Nigel Farage demanded on Tuesday night, after Alison Rose confirmed she was the source of the BBC’s now-corrected story that the ex-Ukip leader lost his Coutts account for commercial, not political, reasons.

On Tuesday evening, Farage told viewers of his GB News TV show that:

Sir Howard Davies is responsible for overall governance. He has clearly failed in this task, least of all by endorsing their [Rose and Flavel’s] conduct. In my view they should all go.”

The head of the private bank Coutts has resigned, less than 48 hours after the departure of his boss, NatWest chief executive Alison Rose, amid over a growing row over former Ukip leader Nigel Farage’s bank accounts.

Peter Flavel stepped down “by mutual consent with immediate effect”, said NatWest Group’s acting chief executive, Paul Thwaite.

“While I will be personally sorry to lose Peter as a colleague, I believe this is the right decision for Coutts and the wider group,” Thwaite said.

More here.

Here’s our timeline of how the crisis at NatWest, one of the UK’s largest banks, has unfolded in recent weeks:

Nigel Farage tweets that it was “only a matter of time” before Coutts CEO Peter Flavel stood down:

Peter Flavel, the departing head of Coutts, says he is taking responsibility for the Bank’s handling of Nigel Farage’s case.

Flavel explains:

“I am exceptionally proud of my seven years at Coutts and I want to thank the team that have built it into such a high performing business. In the handling of Mr Farage’s case we have fallen below the bank’s high standards of personal service.

As CEO of Coutts it is right that I bear ultimate responsibility for this, which is why I am stepping down.”

Newsflash: The head of Coutts has resigned, over the row about Nigel Farage’s loss of a his bank account.

NatWest, which owns Coutts, has just announced that Peter Flavel will step down immediately.

Paul Thwaite, who was appointed as NatWest Group CEO yesterday after Alison Rose stepped down, says:

“I have agreed with Peter Flavel that he will step down as Coutts CEO and CEO of our Wealth Businesses by mutual consent with immediate effect.

Whilst I will be personally sorry to lose Peter as a colleague, I believe this is the right decision for Coutts and the wider Group.

Mohammad Kamal Syed, the head of Coutts’ asset management team, has been asked to step into the role of interim CEO of Coutts, Thwaite says.

Thwaite adds:

Mo has extensive Wealth Management experience and is the ideal person to lead Coutts through this difficult time as we begin the search for Peter’s replacement.”

Earlier this week, Farage called for Flavel to step down, after it emerged that a Coutts dossier showed the former Ukip leader’s bank account was closed after commercial considerations – wealth falling below a threshold – and concerns over his “xenophobic, chauvinistic and racist views“.

Rose resigned around 1.30am yesterday following government pressure.

She was forced out after admitting being the source for a BBC story that said Nigel Farage’s bank account was shut because he fell below the wealth limit, thus solely for commercial rather than for political reasons.

The outlook for economic growth and inflation in the eurozone remains highly uncertain, ECB chief Christine Lagarde tells reporters.

Downside risks to growth include Russia’s war against Ukraine, or the possibility of a wider increase in geopolitical tensions that fragments trade.

She warns that inflation could be pushed up by rising costs of energy and food, related to Russia’s withdrawal from the Black Sea grain initiative.

Lagarde adds that adverse weather conditions, due to the “unfolding climate crisis” could push up food prices by more than projected.

Christine Lagarde then explains that eurozone manufacturing is being held back by weak external demad, while momentum is slowing in the services sector.

She predicts that growth will remain weak in the near term, but then pick up, helped by the “robust” labour market.

ECB president Christine Lagarde is holding a press conference now to explain today’s interest rate rise.

She begins by reading out the statement released half an hour ago, which warns that inflation is expected to remain too high for too long, and that underlying inflation remains high overall.

Lagarde insists that the ECB will keep interest rates at “sufficiently restrictive levels for as long as necessary” to bring inflation down to its 2% target.

She adds:

The Governing Council will continue to follow a data-dependent approach to determining the appropriate level and duration of restriction.

In particular, its interest rate decisions will continue to be based on its assessment of the inflation outlook in light of the incoming economic and financial data, the dynamics of underlying inflation, and the strength of monetary policy transmission.

Here’s more reaction to the European Central Bank’s interest rate rise.

Carsten Brzeski, global Head of Macro at ING, says:

The ECB just hiked its main policy interest rates by 25bp. The deposit interest rate is now at 3.75%. What is more interesting, the accompanying policy statement kept the door for further rate hikes wide open and did not strike a more cautious note. Let’s see whether this stance will be confirmed at the press conference, starting at 2.45pm CET.

After the June pre-announcement, it was hard not to hike interest rates today. The ECB has been too explicit that the risk of stopping rate hikes prematurely is much higher than going too far.

And here’s Alex Livingstone, head of trading for FX & ETFs at Titan Asset Management:

“The ECB decided to follow in the Fed’s footsteps today hiking rates by 25bps to 4.25%. However, the language in the statement struck a more dovish tone than markets anticipated as the ECB gestured to clearer signs of inflation easing and admission of tightening financial conditions weighing on demand.

This is a clear nod to economic growth becoming a more important topic of focus down the line as inflation dissipates.”

Europe’s rate hikes are “drawing to a close”, predicts Ben Laidler, global markets strategist at trading and investing platform at eToro.

“With a sharp energy-driven fall in inflation already underway, and a German-led recession looming, the ECB opted to raise rates by 0.25% today and its approach will be increasingly cautious and data-driven from here on in, with one final rate rise the most likely outcome.

“This more dovish stance will take the wind out of the sails of the Euro rally, be a relief to the continent’s many exporters, while putting the world’s two dominant central banks tantalisingly close to the end of their dramatic tightening cycles.”