FCA launches money laundering proceedings against NatWest, Unite reinstates dividend

London open

The FTSE 100 is expected to open 38 points higher on Tuesday, having closed down 0.17% on Monday at 6,749.70.

Stocks to watch

Britain’s Financial Conduct Authority has started criminal proceedings against NatWest for money laundering. The FCA on Tuesday said the bank allegedly accepted “increasingly large cash deposits” totalling £365m into the accounts of a UK incorporated customer between November 2011 and October 2016, including £264m in cash. “It is alleged that NatWest's systems and controls failed to adequately monitor and scrutinise this activity,” the regulator said. The bank is scheduled to appear at Westminster Magistrates’ Court on April 14 in what will be the first criminal prosecution under money laundering regulations against a bank. No individuals are being charged, the FCA added.

Student accommodation developer and operator the Unite Group reported a 12% fall in EPRA earnings in its final results on Tuesday, to £97.3m, in line with its expectations. The FTSE 250 company reinstated its dividends with its results for 2020, with a 12.75p final dividend payable in May. It said 95% of rent was collected so far for the 2020-2021 academic year, as contracted occupancy stood at 88%, down from 98% year-on-year.

Newspaper round-up

Yorkshire Building Society will become the first lender to relaunch 95% mortgages in the mainstream market, nearly a year after the pandemic spooked lenders into withdrawing low-deposit home loans. However, the deal will only be available to first-time buyers and the society will apply strict conditions on lending, including ruling out flats and new-build homes. - Guardian

Elon Musk’s Tesla lobbied the UK government to raise taxes on petrol and diesel cars in order to fund bigger subsidies for electric vehicles, alongside a ban on hybrids. The US electric car pioneer called for a rise in fuel duty and a charge on petrol and diesel car purchases to pay for grants and tax breaks such as a VAT exemption for battery-powered cars, according to submissions to the government seen by the Guardian.

Broadband providers have lashed out at the communications watchdog over data-sharing proposals that could force them to cede more power to Silicon Valley tech giants. Ofcom faces a backlash over its Open Communications scheme, which is designed to help customers switch providers and boost innovation by making providers share data with third parties. - Telegraph

Chocolate seller Thorntons is the latest retailer to disappear from the high street, more than a century after it started life, putting 600 jobs at risk. The firm’s retreat could lead to all 61 UK stores being closed permanently after sales were hammered by the pandemic. - Telegraph

Screwfix plans to open 50 more shops in the UK and Ireland, creating 600 jobs because of the surge in demand for home improvements during lockdowns. The trade retailer, part of the FTSE 100-listed Kingfisher group, said that roles would be available in retail management, service assistants and supervisors as of January next year. - The Times

US close

Stocks closed firmly in the green on Wall Street on Monday, with the Dow Jones Industrial Average rising 0.53% to 32,953.46.

The S&P 500 added 0.65% to 3,968.94, and the Nasdaq Composite was 1.05% firmer at 13,459.71.