New CBI chief starts today as crisis continues
Former CBI chief economist Rain Newton-Smith will take over as CEO of the business lobby group today.
The group is struggling to survive amid allegations of sexual misconduct first reported by The Guardian, including two women who have claimed to have been raped.
On Monday, the president of the CBI, Brian McBride, said in a letter to its members that the organization had “made mistakes” and “seriously let down” its staff. He said the future of the group was at stake and he didn’t know if the members would “consider trusting us again.”
Newton-Smith worked at the CBI for nine years, leaving in March to join Barclays. she will replace Tony Dankerwho was fired after separate allegations of misconduct against him.
Danker said in an interview with the BBC last week that he felt he had been “made the scapegoat” for allegations unrelated to his own conduct and that his reputation had been “shattered”.
Some have questioned whether, as a former CBI employee and executive board member, Newton-Smith is the right person to lead the organization.
More than 50 CBI members, including John Lewis and NatWest, publicly resigned or suspended their ties with the business group on Friday after new allegations, including a woman who said she was raped by two male colleagues. After the exodus, the CBI announced it would suspend all membership and political activity until a special meeting in June, when members will vote on its future and purpose.
key events
European stock markets have fallen modestly in early trading as investors remain nervous about the banking sector.
The UK’s FTSE 100 index fell 8 points, or 0.1%, to 7,883, while Germany’s Dax, Italy’s FTS MiB and Spain’s Ibex fell 0.4%. France’s CAC lost 0.5%.
New CBI chief starts today as crisis continues
Former CBI chief economist Rain Newton-Smith will take over as CEO of the business lobby group today.
The group is struggling to survive amid allegations of sexual misconduct first reported by The Guardian, including two women who have claimed to have been raped.
On Monday, the president of the CBI, Brian McBride, said in a letter to its members that the organization had “made mistakes” and “seriously let down” its staff. He said the future of the group was at stake and he didn’t know if the members would “consider trusting us again.”
Newton-Smith worked at the CBI for nine years, leaving in March to join Barclays. she will replace Tony Dankerwho was fired after separate allegations of misconduct against him.
Danker said in an interview with the BBC last week that he felt he had been “made the scapegoat” for allegations unrelated to his own conduct and that his reputation had been “shattered”.
Some have questioned whether, as a former CBI employee and executive board member, Newton-Smith is the right person to lead the organization.
More than 50 CBI members, including John Lewis and NatWest, publicly resigned or suspended their ties with the business group on Friday after new allegations, including a woman who said she was raped by two male colleagues. After the exodus, the CBI announced it would suspend all membership and political activity until a special meeting in June, when members will vote on its future and purpose.
Introduction: First Republic Bank shares fall 50%, raising new fears about the banking sector
Good morning, and welcome to our ongoing coverage of business, financial markets, and the global economy.
Bank of the First RepublicShares of ‘s closed nearly 50% lower yesterday, a day after the troubled US bank announced a $100 billion drop in deposits, raising fears it could be the third bank to fail after the collapse of Silicon Valley Bank and signature bank.
This sent Wall Street lower, and European stock markets will open in the red this morning. The S&P 500 closed down 1.6%, while the Nasdaq lost almost 2% and the Dow Jones fell 1%.
In Europe, the Spanish bank Santander and UBS in Switzerland, both booked larger-than-expected provisions in their latest quarterly results yesterday. Santander raised concerns about the outlook for the mortgage market.
Happily, westpacanother US regional bank, brought some calm to the markets when it announced after the closing bell that its deposits stabilized in March and its shares rose nearly 14% in after-hours trading.
Also, Microsoft and Google he released better-than-expected results after the bell.
Not everything is pessimism. In Germany, Consumer confidence has improved for the seventh month as energy bills fall, according to GfK. Its consumption index rose to -25.7, the highest in more than a year and better than expected, but remains well below the long-term average of -10.1.
The agenda
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9.30am BST – Transport committee to question RMT leader Mick Lynch and rail bosses over government strike bill
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11am BST: UK CBI Retail Sales Survey for April
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13:30 BST: US Durable Goods Orders for March (0.7% forecast)
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13:30 BST: US trade for March