FT : Wirecard: katastrophe

Date for publication of annual and consolidated financial statements 2019 delayed due to indications of presentation of spurious balance confirmations

Wirecard AG's auditor Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft, Munich, informed Wirecard AG that no sufficient audit evidence could be obtained so far of cash balances on trust accounts to be consolidated in the consolidated financial statements in the amount of EUR 1.9 billion (approximately a quarter of the consolidated balance sheet total).

There are indications that spurious balance confirmations had been provided from the side of the trustee respectively of the trustee's account holding banks to the auditor in order to deceive the auditor and create a wrong perception of the existence of such cash balances or the holding of the accounts for to the benefit of Wirecard group companies. The Wirecard management board is working intensively together with the auditor towards a clarification of the situation.

In light of the above the audit of the annual and the consolidated financial statements 2019 will not be concluded as planned by June 18, 2020. A new date will be announced. If certified annual and consolidated financial statements cannot be made available until June 19, 2020, loans made to Wirecard AG amounting to approximately EUR 2 billion can be terminated.

To round things off, we’ll re-up this from March 28 2019. Just for posterity’s sake:

FT : ByteDance in talks with Singapore’s Lee family on banking licence bid

ByteDance in talks with Singapore’s Lee family on banking licence bid
Chinese tech group behind TikTok seeks to expand reach with move into financial services

ByteDance is in talks to join forces with Singapore’s influential Lee business family, as the Chinese technology group looks to expand into banking for the first time.

The company has bid for a digital bank licence in the city-state and is negotiating a tie-up with an investment group linked to the Lees, said three people with knowledge of the situation. 

ByteDance is best known for its short-video app TikTok, but like many other technology companies, the Beijing-based group has been trying to make a move into financial services.

The Monetary Authority of Singapore is set to issue five virtual banking licences by the end of the year, for which ByteDance will compete with a number of other Asian technology companies including Alibaba’s Ant Financial and smartphone maker Xiaomi.

For ByteDance, which has a valuation of $75bn and has traded far higher in the secondary market, a partnership with the influential family would be a credibility boost. 

The Lees are one of Singapore’s most well-known corporate families and derive a large part of their wealth through their stake in OCBC Bank, south-east Asia’s second-biggest bank by assets. Patriarch Lee Kong Chian is known as OCBC’s founding father and was a long-serving chairman, while various members of the family have held senior positions at the bank the Lees co-founded.

The family has a number of businesses, including Lee Rubber Group, and the Lee Foundation, its charitable arm, supports a number of schools and other cultural projects. 

Some members of the Lee family have ties to government entities. Lee Seng Wee, son of Lee Kong Chian and another former OCBC chairman, was founding chairman of Temasek Trust, the philanthropic arm of the state-backed investment company.

The Lee family is not directly related to the family of Lee Kuan Yew, Singapore’s first prime minister. 

ByteDance has not publicly confirmed its involvement in Singapore’s digital bank process. It declined to comment on the bid when contacted by the Financial Times.

When initially contacted for comment on this article, the Lee Group of Companies requested all correspondence be sent by physical post and declined to comment further.

After publication, the Lee Group of Companies emailed to request the following clarification be amended to the original article: “The Lee Group of Companies wishes to clarify that none of the Lee Group of Companies are involved in the reported bid for a digital bank licence in Singapore, or in any negotiations relating to the said bid.”

OCBC, which counts family member Dr Lee Tih Shih as a board director, declined to comment.

ByteDance had previously explored applying for a virtual banking licence in Hong Kong, which last year opened its banking sector to technology companies including Tencent and Alibaba.

The Beijing-based company does not operate a digital bank in China, where most virtual financial services are dominated by Tencent and Alibaba through their respective WeChat Pay and Alipay platforms. Instead, ByteDance considers places such as Singapore as better opportunities for disruption.

The push for a Singapore banking licence comes as the Chinese group seeks to boost its footprint in the city.

The company has applied for one of the three wholesale bank licences on offer, the people said, which would mean it would be limited to serving corporate clients including small and medium-sized businesses.

Critics have questioned the ability of the tech challengers to make inroads into Singapore, given that it is a small, well-banked market and home to some of the most digitally savvy incumbent lenders in the world.

But people close to the discussions said the wholesale applicants could potentially make their respective banks a hub for transactions involving other parts of the business, for instance for merchants selling products on TikTok.

In China, ByteDance has beefed up its ecommerce business to monetise traffic to its Douyin video app.

>>> Eurppe : Brokers Upgrades & Downgrades - 18th of june 2020 V2(+)

>>> Up
* Aena Raised to Neutral at JPMorgan; PT 136 euros
* Anglo American Raised to Outperform at RBC; PT 2,200 pence
* CNH Industrial Raised to Buy at UBI Banca
* Genus PT Raised to 4,120 pence from 3,450 pence at Liberum
* *Kuehne + Nagel Raised to Outperform From Mkt Perform by Bernstein (+)
* Lancashire Raised to Hold at HSBC; PT 754 pence
* Marks & Spencer Raised to Buy at HSBC; PT 140 pence
* Melexis PT Raised to 74 euros from 65 euros at Liberum
* Metso Oyj Raised to Buy at SEB Equities; PT 35.20 euros
* Remy Cointreau Raised to Overweight at Barclays; PT 152 euros
* Schaeffler Raised to Buy at HSBC; PT 8 euros
* Swissquote Raised to Buy at AlphaValue
* Tesla PT Raised to $1,200 from $650 at Jefferies
* Traton Raised to Buy at Jefferies; PT 23 euros

>>> Down
* Aeroports de Paris Cut to Underweight at JPMorgan; PT 90 euros
* Atlas Copco Cut to Hold at Berenberg; PT 370 kronor
* Bank of Ireland Cut to Add at AlphaValue
* Bankia Cut to Reduce at AlphaValue
* *CARNIVAL PLC CUT TO SELL VS HOLD AT BERENBERG, PT 800P
* *CARNIVAL CORP. REMAINS SELL RATED AT BERENBERG; PT CUT TO $10
* CIE Automotive Cut to Hold at Grupo Santander; PT 17.50 euros
* Eurazeo SE Cut to Add at AlphaValue
* GL Events Cut to Neutral at Oddo BHF; PT 14 euros (+)
* Hastings Cut to Hold at Peel Hunt; PT 185 pence
* MIPS AB Cut to Hold at ABG; PT 300 kronor
* MTU Aero Cut to Sell at Hauck & Aufhaeuser; PT 130 euros (+)
* Sanne Group Cut to Hold at Liberum; PT 610 pence
* Schroders Cut to Sell at Goldman; PT 2,330 pence
* Taylor Wimpey Cut to Hold at Jefferies; PT 146 pence

>>> Initiation
* Banca Ifis Rated New Hold at MainFirst; PT 9.60 euros
* Evraz Reinstated Sell at Goldman; PT 251 pence
* FNM SpA Rated New Hold at UBI Banca (+)
* Galp Rated New Buy at JB Capital Markets; PT 14 euros
* Gesco Rated New Buy at M.M. Warburg; PT 21 euros (+)
* Invinity Energy Systems Reinstated Buy at Investec (+)
* TP ICAP Reinstated Overweight at Barclays; PT 440 pence

>>> Call
* Atlas Copco Cut at Berenberg, Sees Next Quarters Challenging (+)
* Carnival Valuation ‘Highly Unattractive,’ Berenberg Cuts to Sell
* *EUROPEAN MATERIALS SECTOR RAISED TO OVERWEIGHT AT CITI (+)
* Miners Still Have Upside for RBC: European Materials Premarket (+)
* Hastings Cut at Peel Hunt as Positive Trends Likely to Be Offset (+)
* ‘Disliked Stock’ Remy Cointreau Gets Double Upgrade at Barclays (+)
* Safestore Results Show Resilience Against Virus Impact: Citi (+)
* Spanish Bank Earnings Outlook ‘Inevitably Negative’: Berenberg
* Taylor Wimpey Share Sale Raises Questions, Jefferies Cuts Rating
* TP ICAP Rated Overweight at Barclays Amid OTC Derivatives Growth (+)
* Maersk Update Shows Volume Decline ‘Less Than Feared’: SHB
* Negative Catalysts Are Nearing for Saudi Banks: Morgan Stanley
* Superdry’s China JV Exit Resets the Opportunity: Jefferies (+)

>>> Stoxx 600 Pre-Market Indications

  • Zalando (ZAL TH) +4.7%
    • Lockdown Boosts Business at Europe’s Top Online Fashion Retailer
  • Rolls-Royce (RRU TH) +1.3%
  • TeamViewer (1UD TH) -1.7%
  • Airbus (AIR TH) -1.8%
    • 4-Traders: Airbus: Last A380 convoy in French village spells end of an aviation era
  • MTU Aero (MTX TH) -1.9%
  • Porsche SE (PAH3 TH) -2%
  • Commerzbank (CBK TH) -2%
  • Puma (PUM TH) -2.1%
  • Enel (ENL TH) -2.3%
  • ArcelorMittal (ARRD TH) -2.6%
  • Banco Santander (BSD2 TH) -2.9%
  • Lufthansa (LHA TH) -3.4%
    • Le Maire Says Air France Should Cut Less Than 8,000 Jobs
  • Wirecard (WDI TH) -10%
    • Company scheduled to publish annual report today

>>> TradeGate Pre-Market Indications

DAX:
  • Wirecard (WDI TH) +3.8%
    • Wirecard scheduled to publish annual results today
  • HeidelbergCement (HEI TH) -1.3%
  • MTU Aero (MTX TH) -1.5%
    • BlackRock, Inc. Cuts MTU Aero Voting Rights to 7.65%
  • Deutsche Bank (DBK TH) -1.6%
  • Henkel (HEN3 TH) -2%
  • Lufthansa (LHA TH) -2.7%
    • Le Maire Says Air France Should Cut Less Than 8,000 Jobs
MDAX:
  • Zalando (ZAL TH) +5%
    • Lockdown Boosts Business at Europe’s Top Online Fashion Retailer
  • Hugo Boss (BOSS TH) -1.2%
  • Commerzbank (CBK TH) -1.2%
  • Evotec SE (EVT TH) -1.2%
  • Puma (PUM TH) -1.5%
  • Airbus (AIR TH) -1.7%
SDAX:
  • Hamburger Hafen (HHFA TH) +1.7%
  • Schaeffler (SHA TH) +1.5%
    • Schaeffler Raised to Buy at HSBC; PT 8 euros
  • Kloeckner (KCO TH) +1.2%
  • Nordex (NDX1 TH) +1.1%
  • Ceconomy (MEO TH) -2%
  • Corestate (CCAP TH) -2.3%
  • Encavis (CAP TH) -2.3%
    • Encavis Conference Scheduled By Quirin Privatbank AG for June 18
  • Draegerwerk (DRW3 TH) -2.5%

Reuters : Massive spying on users of Google's Chrome shows new security weakness

Massive spying on users of Google's Chrome shows new security weakness - https://reut.rs/2Y9AmOI

SAN FRANCISCO (Reuters) - A newly discovered spyware effort attacked users through 32 million downloads of extensions to Google’s market-leading Chrome web browser, researchers at Awake Security told Reuters, highlighting the tech industry’s failure to protect browsers as they are used more for email, payroll and other sensitive functions.

Alphabet Inc’s (GOOGL.O) Google said it removed more than 70 of the malicious add-ons from its official Chrome Web Store after being alerted by the researchers last month.

“When we are alerted of extensions in the Web Store that violate our policies, we take action and use those incidents as training material to improve our automated and manual analyses,” Google spokesman Scott Westover told Reuters.

Most of the free extensions purported to warn users about questionable websites or convert files from one format to another. Instead, they siphoned off browsing history and data that provided credentials for access to internal business tools.

Based on the number of downloads, it was the most far-reaching malicious Chrome store campaign to date, according to Awake co-founder and chief scientist Gary Golomb.

Google declined to discuss how the latest spyware compared with prior campaigns, the breadth of the damage, or why it did not detect and remove the bad extensions on its own despite past promises to supervise offerings more closely.

It is unclear who was behind the effort to distribute the malware. Awake said the developers supplied fake contact information when they submitted the extensions to Google.

“Anything that gets you into somebody’s browser or email or other sensitive areas would be a target for national espionage as well as organized crime,” said former National Security Agency engineer Ben Johnson, who founded security companies Carbon Black and Obsidian Security.

The extensions were designed to avoid detection by antivirus companies or security software that evaluates the reputations of web domains, Golomb said.

If someone used the browser to surf the web on a home computer, it would connect to a series of websites and transmit information, the researchers found. Anyone using a corporate network, which would include security services, would not transmit the sensitive information or even reach the malicious versions of the websites.

“This shows how attackers can use extremely simple methods to hide, in this case, thousands of malicious domains,” Golomb said.

All of the domains in question, more than 15,000 linked to each other in total, were purchased from a small registrar in Israel, Galcomm, known formally as CommuniGal Communication Ltd.

Awake said Galcomm should have known what was happening.

In an email exchange, Galcomm owner Moshe Fogel told Reuters that his company had done nothing wrong.

“Galcomm is not involved, and not in complicity with any malicious activity whatsoever,” Fogel wrote. “You can say exactly the opposite, we cooperate with law enforcement and security bodies to prevent as much as we can.”

Fogel said there was no record of the inquiries Golomb said he made in April and again in May to the company’s email address for reporting abusive behavior, and he asked for a list of suspect domains. Reuters sent him that list three times without getting a substantive response.

The Internet Corp for Assigned Names and Numbers, which oversees registrars, said it had received few complaints about Galcomm over the years, and none about malware.

While deceptive extensions have been a problem for years, they are getting worse. They initially spewed unwanted advertisements, and now are more likely to install additional malicious programs or track where users are and what they are doing for government or commercial spies.

Malicious developers have been using Google’s Chrome Store as a conduit for a long time. After one in 10 submissions was deemed malicious, Google said in 2018 here it would improve security, in part by increasing human review.

But in February, independent researcher Jamila Kaya and Cisco Systems’ Duo Security uncovered here a similar Chrome campaign that stole data from about 1.7 million users. Google joined the investigation and found 500 fraudulent extensions.

“We do regular sweeps to find extensions using similar techniques, code and behaviors,” Google’s Westover said, in identical language to what Google gave out after Duo’s report.