Negative rates haunt Virgin Money, bank investors

Worsening outlook

The BoE’s August Monetary Report notes if rates turn negative then deposit-taking institutions probably can’t take deposit rates below zero in response as customers would hoard physical cash.

As a result, the profit margins the banks make on the spreads between lending and deposit rates could narrow the most yet in the current rate-cutting cycle.

Virgin Money’s net interest margin in the UK fell 16 basis points over the June quarter to just 1.47 per cent.

Broker Bell Potter cut its valuation on the bank 10 per cent to $1.80, suggesting if UK cash rates go lower then it’ll struggle to reprice its savings rates offered to depositors.

Banks most reliant on retail deposits for funding are the most exposed to negative rates, according to the BoE. Bell Potter reported 79 per cent of Virgin Money’s funding came from retail deposits in the second half of financial 2020.

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LI job growth has slowed as the unemployed await promised $300 aid boost

Long Island reported anemic job growth last month as jobless residents and New Yorkers across the state waited anxiously for a boost of $300 in weekly unemployment payments to hit their bank accounts in the coming days.

In August, Long Island was still down 152,200 jobs from a year earlier, the state Labor Department reported Thursday, with a gain of 7,500 nonfarm jobs on a month-to-month basis. The monthly gain is well below the 17,800 jobs gained in July, and the pace of growth has slowed since the 78,000 new jobs reported in June.

“The overall pace of job growth on Long Island slowed,” said Shital Patel, labor market analyst in the Labor Department’s Hicksville office. “The large gains in jobs in May, June, and July reflect the phased reopening of the economy.”

Patel said that the slower job growth in August is likely due to businesses relying on smaller

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Personal Capital Honors National Financial Planning Month Through New Strategic Partnerships and “Financial Heroes” Campaign

The company announced strategic partnerships with 2x Pro Basketball All-Star Baron Davis and CEO of travel experiences company Peek.com, Ruzwana Bashir. The pair will be the new faces of the integrated campaign which will include print and online advertising, content and virtual events.

“To partner with Davis and Bashir was an easy decision,” said Porter Gale, Chief Marketing Officer at Personal Capital. “Money continues to be a taboo subject, and through the platforms of Davis and Bashir, and their passion for raising awareness around financial literacy, we can spark a conversation that encourages more people to find financial empowerment.”

After a 17-year career as a professional basketball player, Davis is now on a path defined by entrepreneurship, investing, philanthropy, and activism. The founder of several companies, including Sports Lifestyle in Culture (SLIC), The Black Santa Company, Business Inside the Game (BIG) and No Label, Davis will use his

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