London — Britain’s Financial Conduct Authority (FCA) could “adjust and refine” a proposal for a multibillion-pound motor finance redress package if it sees convincing, evidence-based feedback during a consultation, its CEO said on Wednesday.
FCA chief Nikhil Rathi told the FT Global Banking Summit the watchdog had received “lively” feedback on its proposals for a compensation scheme that it has estimated could cost the industry £11bn. The issue relates to car dealers receiving commission from banks without a customer’s informed consent. The consultation ends on December 12. Reuters
Sydney Sweeney helps American Eagle lift sales
Bengaluru — American Eagle Outfitters’ shares surged nearly 12% before the bell on Wednesday after the retailer lifted its annual sales forecast, betting on celebrity partnerships and marketing campaigns to boost demand during the holiday season.
Successful campaigns featuring actor Sydney Sweeney, collaborations with US NFL player Travis Kelce’s clothing brand, Tru Kolors, and a pivot to affluent buyers have helped the company counter a broader retail slowdown driven by inflation and trade tensions.
“As a company, we’re leaning into advertising. We need to compete when we see what our competition is doing,” said chief creative officer Jennifer Foyle. Reuters
Germany’s new-car registrations expected to rise
Frankfurt — Germany’s VDIK association of international motor vehicle makers expects new-car registrations to increase slightly next year, to about 2.9-million vehicles, provided the government in Berlin goes ahead with planned support for electric vehicles.
That would be up from 2.83-million new-vehicle registrations in Germany, Europe’s biggest economy, expected for this year, the VDIK said on Wednesday.
“Our prediction is based on the assumption that the government’s planned support for private electric car customers will start retroactively at the start of 2026 and that competitive, transparent electricity prices will be created with a comprehensive infrastructure,” said VDIK president Imelda Labbe.
If that is not the case, and delays ensue, potential buyers will put off purchases of electric vehicles, and any market recovery will be delayed, added the VDIK, which represents international carmakers including Toyota and Renault. Reuters
Consultation on new risk mitigation accounting
London — Banks could give investors a clearer view on how they manage risks, such as those associated with changing interest rates, under a new model proposed by a global accounting rule-setter.
The International Accounting Standards Board (IASB) on Wednesday launched a consultation on a new risk mitigation accounting model, which it said comes after years of dialogue between the IASB and banks that want more flexibility in how their risk management strategies are reflected in accounts.
The consultation is open until July 31 2026, and could involve changes to the IFRS 9 Financial Instruments and IFRS 7 disclosure rules.
“Our proposed risk mitigation accounting model aims to bring accounting and risk management closer together to enhance internal efficiency and strengthen communication between financial institutions and their stakeholders,” IASB chair Andreas Barckow said.
The model will attempt to replace a transaction-driven view of how banks manage interest rate risks, which rarely gives the overall picture, with one that provides investors with a more complete picture of their exposures, Barckow said. Reuters
ECB economist not fazed by inflation moves
Frankfurt — The European Central Bank (ECB) should not react to inflation straying from its 2% target if it expects that move to be short-lived, the ECB’s chief economist, Philip Lane, said on Wednesday.
“Lags in the transmission of monetary policy mean that it would be counterproductive to seek to respond to near-term deviations that are solidly expected to be transitory,” Lane said in a speech. Reuters
Ghana’s inflation continues to slow
Accra — Ghana’s consumer inflation slowed for the 11th consecutive month, falling to 6.3% year on year in November from 8% in October, the statistics service said on Wednesday.
Government statistician Alhassan Iddrisu told a press conference that the drop was mostly driven by a slowdown in food inflation. “Domestic price conditions and external market conditions are both stabilising,” Iddrisu said, adding that inflation is now at its lowest since a rebasing exercise in 2021. Reuters
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