Today\u2019s need-to-know storiesJPMorgan drawn into fresh football controversy over Fifa plan<\/p>\n
JPMorgan\u2019s advisory role in Fifa\u2019s proposed $4.2bn fundraising has placed the US bank at the centre of a fierce backlash from football authorities, raising doubts over whether the transaction can proceed.<\/p>\n
On Thursday, the 55 member associations of European football governing body Uefa unanimously threatened to boycott Fifa competitions if it proceeds with plans to bring in external investors to launch a new commercial entity<\/a>, valued at around $20bn.\u00a0<\/p>\n Concacaf, the governing body for football in North America, Central America and the Caribbean, has also rejected Fifa\u2019s proposal.<\/p>\n As reported by the FT, JPMorgan has been advising Fifa on the capital raise for several months and was asked to assemble a global group of sovereign wealth funds, institutional investors and family offices. Thrive Eternal, the fund led by Joshua Kushner, has been lined up as the lead investor.<\/p>\n The backlash has been compared with JPMorgan\u2019s role in the failed European Super League. One sports investor told the newspaper that the bank risked emerging from the dispute with \u201ca big black eye\u201d.<\/p>\n However, sources familiar with JPMorgan\u2019s thinking told the FT that the proposed capital raise was intended to boost funding for football globally and differed fundamentally from the closed-league model pursued by the failed Super League.\u00a0<\/p>\n A person involved in the transaction said: \u201cAnything with soccer gets the same reaction \u2014 the only thing maybe more polarising is politics,\u201d adding that those working on the deal had expected the public reaction to be \u201chysterical\u201d.<\/p>\n NatWest lifts guidance after Q2 profits rise 29%<\/p>\n NatWest has reported a 29 per cent yearly increase in second-quarter pre-tax profit to \u00a32.3bn, beating analyst expectations of \u00a32bn and prompting the bank to lift its full-year profitability guidance.<\/p>\n The UK lender now expects return on tangible equity to exceed 19 per cent, up from its previous guidance of 17 per cent. Total income increased to \u00a34.5bn from \u00a34bn a year earlier, ahead of forecasts of \u00a34.4bn.<\/p>\n Retail banking operating profit rose to \u00a3948mn from \u00a3735mn, while profit at its private banking and wealth division, which includes Coutts, increased 16 per cent.<\/p>\n NatWest has benefited from UK interest rates remaining relatively high, which has supported lending income across the country\u2019s banking sector. Its shares rose 2.7 per cent in early trading.<\/p>\n Chief executive Paul Thwaite is also expanding the bank\u2019s wealth business. NatWest completed its \u00a32.7bn acquisition of \u201cmass affluent\u201d wealth manager Evelyn Partners at the end of June, which will allow Coutts to focus on ultra-wealthy clients.<\/p>\n Other UK banks are focusing on fee and commission-generating business. Yesterday Lloyds announced plans<\/a> to boost its wealth management business as part of a new strategy to reduce dependence on interest-rate cycles.<\/p>\n HSBC begins Australia retail exit with home loans sale <\/p>\n HSBC is to withdraw from the Australian retail market over the next 18 months, following the sale of its home loans business to Blackstone. <\/p>\n The sale of the loan book was agreed for around A$36bn ($25bn) to the US alternative asset manager. Australian non-bank lender Pepper Money will service the loan portfolio for existing customers. The sale of the portfolio is expected to be completed in the first half of 2027. <\/p>\n It was reported earlier this week that the deal was near agreement<\/a>. <\/p>\n In a statement, HSBC also said it would be winding down the remainder of its retail business. This includes closing the bank\u2019s 19 branches across the country and phasing out savings and credit cards. HSBC currently employs 2,000 people in Australia. <\/p>\n It is the latest move by HSBC to streamline operations, with the sale of its insurance business in Singapore<\/a> to Allianz also recently confirmed. <\/p>\n New York State takes Kalshi to court<\/p>\n New York\u2019s attorney-general has sued prediction market operator Kalshi, alleging that it is running an illegal gambling platform without a state gaming licence.<\/p>\n