UPDATE 1-Gas Natural cautious on 2014 outlook after H1

July 28, 2010 By Leave a Comment

MADRID, July 27 (Reuters) – Spanish power utility Gas Natural (GAS.MC) issued a cautious strategic outlook to 2010-2014 on Tuesday and plans to focus on cutting debt, after first-half results missed forecasts.

The company expects EBITDA growth to slow to 2012 from the double-digit first-half rise and wants to cut its debt to 15-16 billion euros in 2012 from 18.2 billion euros at the end of the first half.

Gas Natural said it would attempt to extract further value from its Fenosa unit, acquired in 2008, to fuel net profit to 1.5 billion euros in 2012 and about 2 billion in 2014, compared with 1.1 billion euros in 2009.

In Gas Natural’s first strategic plan since the company acquired Fenosa in 2008, the company said it had already achieved 98 percent of the 550 million euros of savings it targeted with Fenosa.

Gas Natural posted a 48 percent surge in first-half earnings before interest, taxes, depreciations and amortizations to 2.381 million euros, boosted by the full consolidation of Fenosa in April 2009, although this missed estimates by analysts for 2.40 billion euros.

Net profit rose 37 percent to 853 million euros, supported by the sale of gas generation and distribution assets but also missed forecasts for 917 million euros from a Reuters poll of seven analysts.

Strong electricity generation and Latin American activities offset weakness at Gas Natural’s gas and deregulated business to contribute to modest 3.8 percent pro-forma growth in first half EBITDA, which factors in the Fenosa acquisition.

(Reporting by Jonathan Gleave; editing by Simon Jessop)

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UPDATE 1-Daily Mail ad sales rebound, UK outlook uncertain

July 28, 2010 By Leave a Comment

LONDON, July 27 (Reuters) – British newspaper and professional publisher Daily Mail & General Trust (DMGOa.L) said underlying third-quarter sales rose 6 percent after advertising trends improved and subscriptions to its publications held up.

The group said it was trading ahead of its expectations after underlying advertising revenues rebounded 13 percent at its national newspapers, led by the Daily Mail title, Britain’s best-selling mid-market tabloid.

Advertising sales at its regional newspapers — worst hit by the recession after classified property, recruitment and car ads sales dried up — fell 4 percent.

Total revenues for the quarter to end-June were 508 million pounds, helped by a 9 percent underlying increase at the company’s business-to-business operations, which account for almost half of group sales.

“Trading in the third quarter has continued to reflect the generally positive trends in our international B2B and UK consumer media businesses, although we remain wary about the medium term outlook, particularly in the UK,” Chief Executive Martin Morgan said in a statement.

DMGT said it would maintain its focus on cost control, as part of which it had closed regional titles and slashed jobs.

Daily Mail’s Euromoney (ERM.L) financial-publishing unit last week reported a strong fiscal third quarter but said uncertainty remained amid signs of weakening advertising sales and lower numbers of delegates to its events. [ID:nLDE66J1QZ] (Reporting by Georgina Prodhan; editing by Simon Jessop)

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UPDATE 1-Polish Millennium loosens credit policy in H1

July 28, 2010 By Leave a Comment

WARSAW, July 27 (Reuters) – Bank Millennium BIGW.WA, one of Poland’s lenders hardest hit by the global financial crisis, said on Tuesday it had loosened its credit policy in the first half on an improving economic environment.

The bank, which is controlled by Portugal’s Millennium bcp (BCP.LS), slammed the brakes on its lending more than a year ago after interbank markets dried up and the Polish zloty tumbled, hurting its credit book, which included a large number of foreign currency mortgages.

“The change of the economic situation confirmed by the economic indicators and the improved condition of corporations in the first quarter of 2010 allowed for a change in internal credit policy of the bank taken on at the turn of 2008 and 2009,” Millennium said.

The bank, which boosted its capital by 1 billion zlotys ($318 million) at the beginning of this year, said its first half net profit rose to 138 million zlotys from 21 million in the same period of 2009 thanks to lower bad loan provisions and stronger revenue.

Analysts expected Millennium to earn 134 million zlotys, according to a Reuters poll of nine analysts.

Millennium is the first Polish lender to report results after the second quarter.

It did not break out a quarterly earnings figure for the three months ending in June, but according to Reuters calculations it stood at 70 million zlotys.

Millennium shares have risen 13 percent this year compared with a 7 percent gain of Warsaw’s banking index .BNKI. ($1=3.142 Zloty) (Reporting by Chris Borowski; editing by Simon Jessop)

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UPDATE 1-Verbund H1 earnings fall, outlook stable

July 28, 2010 By Leave a Comment

VIENNA, July 27 (Reuters) – Austrian utility Verbund (VERB.VI) said low water supplies and weaker electricity demand hit first-half earnings, although electricity prices were improving and full-year profits should remain stable.

Verbund, which is 51-percent owned by the state, said it still plans to raise 1 billion euros ($1.3 billion) in a capital hike and this would happen in the fourth quarter at the earliest. The plan has been complicated by government infighting.

Verbund, which generates most of its electricity from hydro power, said net profit for first half fell 42 percent to 210.3 million euros ($271.5 million)

“Of particular detriment to the half-year results was the water supply from rivers, which was well below average,” Verbund said, adding, however, that prices on electricity markets were improving and its second half should be better.

Verbund said it expects a 25 percent fall in full-year operating earnings but stable profits compared with a year earlier. It said its dividend ratio would be 45-50 percent. ($1=.7746 Euro) (Reporting by Sylvia Westall; editing by Simon Jessop)

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Verbund capital raising hit by govt tussle -paper

July 21, 2010 By Leave a Comment

July 20 (Reuters) – Austrian utility Verbund’s (VERB.VI) plan for a capital raising of around 1 billion euros ($1.3 billion) could be delayed because of a government disagreement over whether to take part, a newspaper said on Tuesday.

Verbund, which is 51-percent owned by the Austrian state, said last month the government backed the planned capital increase and would participate in the issue with around 500 million euros, corresponding to its share in the company.

However, daily Der Standard reported that the Social Democrats, partner in Austria’s coalition government, would vote against participation in the capital raising at a government session on Tuesday.

Verbund was not immediately available for comment.

The Social Democrats want similar capital-boosting measures at other companies in which the state owns stakes, such as energy group OMV (OMVV.VI) and Austrian railway OeBB, Der Standard said.

The capital increase would be used to bring down Verbund’s debt, which grew last year after a 2 billion euro spending spree. [ID:nLDE65T04H]

Economy Minister Reinhold Mitterlehner, from the coalition’s conservative People’s Party, hopes to find a solution before the government’s next meeting on Aug. 24, the paper reported.

The Social Democrats and conservatives have ruled together since 2008 in a mostly stable broad-based coalition. ($1=.7706 Euro) (Reporting by Sylvia Westall; editing by Simon Jessop)

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GE considers selling Garanti stake in parts: report

July 10, 2010 By Leave a Comment

(Reuters) – General Electric (GE.N) is looking at selling its 20.85 percent stake in Turkish lender Garanti Bank (GARAN.IS) in parts, after an unsuccessful attempt at a block sale, Sabah newspaper said on Friday.

A representative of GE Turkey, Kursat Ozkan, said the sale method to be used was still unclear and work was continuing.

Few banks came forward to publicly declare their interest in the stake after GE said it was up for sale earlier this year.

Analysts speculated that the size of the stake, valued at around $3.8 billion but not giving control of the bank, had limited interest in the sale.

“The block sale of the 20.85 percent stake didn’t look very possible. Therefore, GE gave a message that it might sell the stake in parts. So that method is also being talked about now,” said the unnamed source.

The bank is just under 50 percent publicly traded, while Turkish conglomerate Dogus Group owns 30.5 percent and has first refusal on the stake. It has declined to clarify its intentions.

(Additional reporting by Aali Kandemir; Editing by Simon Jessop)

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UPDATE 1-GE considers selling Garanti stake in parts -paper

July 10, 2010 By Leave a Comment

ISTANBUL, July 9 (Reuters) – General Electric (GE.N) is looking at selling its 20.85 percent stake in Turkish lender Garanti Bank (GARAN.IS) in parts, after an unsuccessful attempt at a block sale, Sabah newspaper said on Friday.

A representative of GE Turkey, Kursat Ozkan, said the sale method to be used was still unclear and work was continuing.

Few banks came forward to publicly declare their interest in the stake after GE said it was up for sale earlier this year.

Analysts speculated that the size of the stake, valued at around $3.8 billion but not giving control of the bank, had limited interest in the sale.

“The block sale of the 20.85 percent stake didn’t look very possible. Therefore, GE gave a message that it might sell the stake in parts. So that method is also being talked about now,” said the unnamed source.

The bank is just under 50 percent publicly traded, while Turkish conglomerate Dogus Group owns 30.5 percent and has first refusal on the stake. It has declined to clarify its intentions. (Additional reporting by Aali Kandemir; Editing by Simon Jessop)

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UPDATE 1-Iberdrola signs 2 bln euro 5-yr syndicated loan

July 10, 2010 By Leave a Comment

July 9 (Reuters) – Spain’s Iberdrola (IBE.MC) said on Friday it had signed a 2 billion euro ($2.54 billion) 5-year revolving syndicated loan.

The loan is priced at Euribor plus 75 basis points, and is adjustable, according to the company’s credit rating.

The facility has an option for additional syndication up to 500 million euros, the electricity company said.

No further details were immediately available. ($1=.7885 Euro) (Reporting by Elisabeth O’Leary; editing by Simon Jessop)

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GE considers selling Garanti stake in parts -paper

July 10, 2010 By Leave a Comment

July 9 (Reuters) – General Electric (GE.N) is looking at selling its 20.85 percent stake in Turkish lender Garanti Bank (GARAN.IS) in parts, after an unsuccessful attempt at a block sale, Sabah newspaper said on Friday.

Few banks came forward to publicly declare their interest in the stake after GE said it was up for sale earlier this year.

Analysts speculated that the size of the stake, valued at around $3.8 billion but not giving control of the bank, had limited interest in the sale.

“The block sale of the 20.85 percent stake didn’t look very possible. Therefore, GE gave a message that it might sell the stake in parts. So that method is also being talked about now,” said the unnamed source.

The bank is just under 50 percent publicly traded, while Turkish conglomerate Dogus Group owns 30.5 percent and has first refusal on the stake. It has declined to clarify its intentions. (Editing by Simon Jessop)

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KKR plans shale gas exploration – Bloomberg

July 10, 2010 By Leave a Comment

(Reuters) – U.S. private equity firm Kohlberg Kravis Roberts & Co [KKR.UL] is planning to start up a natural gas exploration company focusing on shale and coal-bed gas, Bloomberg said, citing a person familiar briefed on the plan.

KKR will mostly use equity to fund the exploration business, which will focus on parts of Appalachia and Texas, it said.

“The promise of shale and what it means to domestic oil and gas production is significant, but the cost to get there is very significant too,” Marc Lipschultz, a partner who oversees energy and infrastructure investments, told the agency in an interview.

Shale gas accounts for between 15 percent and 20 percent of U.S. gas production but is expected to quadruple in coming years, touching off a scramble among producers large and small for access to resources. [ID:nN18229665]

KKR could not immediately be reached for comment by Reuters outside regular U.S. business hours. (Reporting by Sakthi Prasad in Bangalore; editing by Simon Jessop)

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UPDATE 1-Anglo American CEO to chair Anglo Platinum unit

July 6, 2010 By Leave a Comment

LONDON, July 5 (Reuters) – The chief executive of Anglo American Plc (AAL.L), Cynthia Carroll, will become the chairwoman at the group’s biggest unit, Anglo Platinum (AMSJ.J), which has been striving to cut costs.

Carroll, who launched a reorganisation of the group earlier this year to cut management layers, will take over as chairwoman on Sept. 1, following the resignation of Fred Phaswana, a statement said on Monday.

The company gave no further detail about the appointment.

Carroll has been closely involved with turning around South Africa’s Angloplat, which last year accounted for 31 percent of the group’s net operating assets but only 1 percent of operating profit.

On May 17, Angloplat, the world’s No. 1 producer of the metal, said its first-half headline earnings were expected to rise 20 percent compared with last year. [ID:nLDE64G1NG]

“I have worked closely with Cynthia since I became CEO of Anglo Platinum, during a time when we have achieved a significant restructuring and operational turnaround of the world’s leading platinum company,” Angloplat CEO Neville Nicolau said.

The firm said Valli Moosa will become deputy chairman of Angloplat. (Reporting by Eric Onstad; editing by Simon Jessop)

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Spyker avoids more debt in final Saab payment

July 6, 2010 By Leave a Comment

(Reuters) – Dutch carmaker Spyker Cars (SPYKR.AS) used internal funding rather than external debt to pay General Motors GM.UL the final $24 million purchase price for Sweden’s Saab, ending concern over how it would foot the bill.

Niche carmaker Spyker, which has never made a profit, took over the larger Saab from GM earlier this year and is now working to revive the flagging brand, but the final installment of the purchase price had been due on July 15.

Spyker Cars said it made the payment without increasing its external debt or issuing new shares, adding the internal funding became available after the acquisition of Saab Great Britain Limited by Spyker on May 31.

Spyker shares were up 0.43 percent at 2.311 euros at 3:13 a.m. ET, in line with a higher Amsterdam market.

A Spyker Cars spokesman said the company paid the final installment to GM using cash from Saab Great Britain.

“Saab Great Britain is a wholly own subsidiary of Spyker Cars and has given an inter company loan to Spyker,” spokesman Mike Stainton said.

Further concern had been sparked about the company’s ability to fund the final part of the deal after it said in February it still needed to secure financing for the $24 million payment.

Spyker Cars had said it intended to fund the payment primarily through senior debt and that it had pledged assets to GM as security for the final payment.

“The early payment of the second and last installment underlines our desire to finalize the transaction with GM as soon as it was possible, enabling management to fully focus on the future of the group,” Spyker Cars Chief Executive Victor Muller said in a statement.

Spyker spent $400 million buying the iconic Swedish brand Saab, $74 million of which was paid in cash for Saab, including $25 million borrowed from a Muller investment vehicle and $25 million from an issue of shares, largely to GEM Global Yield Fund Ltd.

(Editing by Simon Jessop)

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UPDATE 2-Spyker avoids more debt in final Saab payment

July 6, 2010 By Leave a Comment

AMSTERDAM, July 5 (Reuters) – Dutch carmaker Spyker Cars
(SPYKR.AS) used internal funding rather than external debt to
pay General Motors [GM.UL] the final $24 million purchase price
for Sweden’s Saab, ending concern over how it would foot the
bill.

Niche carmaker Spyker, which has never made a profit, took
over the larger Saab from GM earlier this year and is now
working to revive the flagging brand, but the final instalment
of the purchase price had been due on July 15.

Spyker Cars said it made the payment without increasing its
external debt or issuing new shares, adding the internal funding
became available after the acquisition of Saab Great Britain
Limited by Spyker on May 31.

Spyker shares were up 0.43 percent at 2.311 euros at 0713
GMT, in line with a higher Amsterdam market.

A Spyker Cars spokesman said the company paid the final
instalment to GM using cash from Saab Great Britain.

“Saab Great Britain is a wholly own subsidiary of Spyker Cars
and has given an inter company loan to Spyker,” spokesman Mike
Stainton said.

Further concern had been sparked about the company’s ability
to fund the final part of the deal after it said in February it
still needed to secure financing for the $24 million payment.
[ID:nLDE61H0GS]

Spyker Cars had said it intended to fund the payment
primarily through senior debt and that it had pledged assets to
GM as security for the final payment.

“The early payment of the second and last instalment
underlines our desire to finalise the transaction with GM as
soon as it was possible, enabling management to fully focus on
the future of the group,” Spyker Cars Chief Executive Victor
Muller said in a statement.

Spyker spent $400 million buying the iconic Swedish brand
Saab, $74 million of which was paid in cash for Saab, including
$25 million borrowed from a Muller investment vehicle and $25
million from an issue of shares, largely to GEM Global Yield
Fund Ltd.
(Editing by Simon Jessop)

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REFILE-UPDATE 1-John Lewis sales get Father’s Day fillip

June 26, 2010 By Leave a Comment

LONDON, June 25 (Reuters) – British retailer John Lewis [JLP.UL] posted another week of double-digit sales growth with trade boosted by shoppers splashing out on gifts for Father’s Day.

The employee-owned firm, traditionally seen as a bellwether of the UK retail sector, but which has outperformed competitors for over a year, said sales at its 28 department stores and one “at home” store increased 13.0 percent to 52.5 million pounds ($78.59 million) in the week to June 19.

Fashion sales rose 15.3 percent, with homewares sales up 14.1 percent and sales in the electricals and home technology category up 7.9 percent.

“Two key factors played a part last week: Father’s Day and matching our competitors’ sales under (the) ‘Never Knowingly Undersold’ (pledge),” said Nat Wakely, director, selling operations

UK retailers are generally emerging from a deep recession but fear steps, such as higher taxes, to rein in a record government deficit will hit spending in the months ahead.

John Lewis also owns the 228-store Waitrose supermarket chain, where week to June 19 sales rose 10.7 percent to 97.3 million pounds, underscoring its status as one of the UK’s fastest growing grocers. [ID:nLDE65L0MX] [ID:nLDE65K2BW]

Waitrose said the increase was driven by shoppers dining at home during the World Cup, as well as the continuing ‘Delia effect’ — recipe promotions featuring celebrity chef Delia Smith. ($1=.6680 Pound) (Reporting by James Davey; editing by Simon Jessop)

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Maersk says leases port to Virginia for 20 years

June 26, 2010 By Leave a Comment

June 25 (Reuters) – APM Terminals, the port arm of Danish shipping and oil group A.P. Moller-Maersk (MAERSKb.CO), has agreed to lease its facility in the U.S. state of Virginia to the Virginia Port Authority (VPA) for 20 years, Maersk said on Friday.

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APM Terminals did not disclose financial details, but Lloyd’s List cited a VPA spokesman as saying payments to APM Terminals to lease the Portsmouth facility would amount to more than $1.1 billion over the 20 years.

“VPA’s operating arm, Virginia International Terminals, will begin operating the facility on July 6, 2010,” APM Terminals said in a statement.

“Ultimately, the greatest benefits for all stakeholders are gained by integrating our operations under the VPA umbrella,” Eric Sisco, President of APM Terminals Americas, said in the statement.

“It made good business sense for us to work with the Port Authority to address the market situation and rationalise the Port’s capacity.”

APM Terminals cited Virginia Governor Bob McDonnell as saying last month that combining the Maersk facility with VPA’s existing assets would “substantially increase the marketability of this port” and position Virginia to become the leading port on the U.S. East Coast faster than anticipated.

APM Terminals will continue to own the facility and will keep its headquarters for the company’s Americas region at the terminal facility in Portsmouth.

In addition to the Virginia terminal, APM Terminals operates 11 terminals in North and South America and numerous inland facilities in the region, it said.

The lease agreement and its accompanying documents will be signed on June 30, APM Terminals said.

(Reporting by John Acher; editing by Simon Jessop)

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UPDATE 1-Safaricom plans to buy two local ICT firms

June 25, 2010 By Leave a Comment

NAIROBI, June 24 (Reuters) – Kenya’s Safaricom (SCOM.NR) plans to acquire two local information and communications technology firms in a drive to boost its data business, the firm said.

Safaricom said its board had approved the purchase of IGO Wireless Limited, a fixed wireless data firm, and Instaconnect, an application service provider. No details were given for the size of the planned purchases.

“Both companies are active players in the ICT market and our intended acquisition is pursuant to our stated strategic objective of enhancing our ability to grow our data business,” the company said in a statement issued late on Wednesday.

Safaricom has previously said that, as the voice market matures, the greatest growth opportunities will lie in data services.

East Africa’s largest company by market value, which is part-held by Britain’s Vodafone (VOD.L), posted a 37 percent rise in pretax profit to 20.97 billion shillings ($258.7 million) for the year to March, helped by a 72.8 percent jump in data revenue. ($1=81.05 Kenyan Shilling) (Reporting by George Obulutsa, editing by David Lewis and Simon Jessop)

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BP, Chevron target China deep water block-WSJ

June 25, 2010 By Leave a Comment

(Reuters) – Besieged energy giant BP Plc (BP.L) (BP.N) is set to partner with U.S. rival Chevron Corp (CVX.N) to bid for a South China Sea exploration block, the Wall Street Journal said, citing a person familiar with the matter.

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The move signals rival firms are still willing to partner with BP in deep water projects in spite of the company’s failure to stop a Gulf of Mexico oil well leak that is threatening to pollute the U.S. Gulf coast, the Journal said.

Chevron will have a 60 percent stake in the block and act as operator, with BP holding the remaining interest, the person told the paper.

Cnooc Ltd (0883.HK), a unit of China National Offshore Oil Corp, has the right to take a 51 percent stake in the block if the companies make a commercial oil or natural gas discovery, according to the paper.

However, it was not known whether Cnooc would exercise pre-emption rights on the asset, the newspaper said.

Oklahoma City-based Devon Energy Corp (DVN.N) has selected BP and Chevron as preferred buyers for block 42/05, located about 250 kilometers south of Hong Kong, according to the Journal.

The companies involved in the deal declined to comment to the Journal. They could not immediately be reached for comment by Reuters outside regular U.S. business hours. (Reporting by Sakthi Prasad in Bangalore; editing by Simon Jessop)

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Weinstein Co, Goldman agree debt restructuring-WSJ

June 25, 2010 By Leave a Comment

(Reuters) – Movie studio The Weinstein Co has agreed to a major debt restructuring that gives Goldman Sachs Group Inc (GS.N) and Assured Guaranty Ltd (AGO.N) possession of as many as 250 films in its library, the Wall Street Journal said.

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The restructuring, finalised by the companies on Wednesday, is designed to allow Weinstein Co to continue as a going concern and resolve the financial struggles that beset the studio shortly after it opened in 2005, the paper said.

As part of the restructuring deal, Goldman has agreed to subtract $115 million from Weinstein Co’s total outstanding debt of $450 million, the newspaper said.

Any interest payments owed by Weinstein Co on the debt were eliminated in the agreement, the Journal reported.

Goldman and Assured Guaranty, which insured some of the company’s debt, will also own a small portion of Weinstein Co’s future projects, the report said.

If Weinstein Co can pay off the $335 million through film library revenue, it will emerge debt free and be able to reclaim ownership of those 250 movies, the newspaper said.

Weinstein Co and Goldman could not be immediately reached for comment by Reuters outside normal U.S. business hours.

Harvey and Bob Weinstein founded the company after they sold Miramax Films, the powerhouse studio behind such 1990s movies as “Pulp Fiction” and “Shakespeare in Love,” to Walt Disney Co (DIS.N).

Over the years, Goldman has helped raised hundreds of millions of dollars to finance Weinstein Co’s projects. (Reporting by Anne Pallivathuckal in Bangalore; editing by Simon Jessop)

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UPDATE 2-Rail strike to hit London’s financial district

June 12, 2010 By Leave a Comment

LONDON, June 11 (Reuters) – Staff on London’s Docklands Light Railway (DRL) are to strike over pay and working conditions, a rail union said on Friday, adding to disruption already planned by maintenance staff on the Underground subway.

The DLR line carries commuters to and from the Canary Wharf financial sector in the east of the city. The DLR platform and station staff will walk out for three days starting Wednesday June 23, coinciding with a strike by maintenance workers at contractor Tube Lines on the Jubilee, Northern and Piccadilly underground lines.

The RMT union said operating company Serco (SRP.L) had not offered adequate reward for the increased workload and responsibility of running an extra third carriage on trains.

“Our members on the Docklands Light Railway have shown once again that they will not be bullied by management in to taking on more work and more responsibility without being properly compensated by the company,” RMT General Secretary Bob Crow said in a statement.

Staff voted by almost nine to one for industrial action last week, he added.

Serco said the dispute was unmerited.

“This threat of industrial action is an opportunistic demand for cash for employees who have not had any change to job descriptions or terms or conditions of their employment,” said Serco Docklands Managing Director David Godley.

Nobody was immediately available for comment from the capital’s transport authority, Transport for London.

On Thursday, the RMT announced that workers on Tubes Lines would carry out two 48-hour strikes over pay, jobs and working conditions.

The strikes, from Wednesday, June 23, and Wednesday, July 14, will likely have a knock-on effect across the transport system, it added.

(Reporting by Avril Ormsby; editing by Simon Jessop)

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Risk aversion could hurt JPMorgan’s Q2 -Staley

June 12, 2010 By Leave a Comment

June 11 (Reuters) – A reduction in clients’s risk appetite could affect JPMorgan’s (JPM.N) second-quarter performance, its investment banking chief Jes Staley said on Friday.

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“Client activity has reduced. Clients are taking risk off … People are a little more wary, and that may have an impact on Q2, but I think it’s way too early to tell right now,” Staley told reporters on the sidelines of a financial industry conference in Vienna.

Investment banks are experiencing more difficult markets than in the first quarter, and Switzerland’s UBS (UBSN.VX)(UBS.N) on Thursday said it faces weaker second quarter earnings after capital markets turbulence. [ID:nLDE65911O]

Staley said JPMorgan would also be affected by a drop-off in primary issuance and said while the bank had enjoyed market share gains, its top priority was serving clients.

“If you get overly focused on market share you may lose sight of your clients — and that’s the surest way to lose market share,” he said.

“It’s very hard to hypothesise what the economic impact” of proposed derivatives regulation would be, Staley added.

(Reporting by Quentin Webb; editing by Simon Jessop)

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