Businesses gauge impact of virus, Barclays CEO probed over Epstein ties, and crypto scams hit the mainstream: This Week in Finance

Welcome to This Week in Finance, your weekly roundup of the conversations trending among financial professionals on LinkedIn. Click Subscribe above to be notified of each edition. This week:

Virus threatens U.S. bottom lines

Nearly 90% of U.S. companies operating in China expect the virus to hit their 2020 revenues, according to the American Chamber of Commerce in Shanghai. About a quarter of those businesses expected revenue to fall by 16% or more. Supply Chain Dive noted that concern about the virus could be increasing inside boardrooms since a similar survey of businesses from late January showed little worry about a major disruption. The Federal Reserve said Wednesday it is “closely monitoring” the impact of the virus. ?? Here's what people are saying.

• Industries hit the hardest by coronavirus
• IEA sees rare drop in oil demand
• Supply chain hit to top SARS?
• Asian banking roiled by coronavirus
• EU: Coronavirus a "key downside risk"

Wells Fargo nixes forced arbitration

Wells Fargo appears to be the first big bank to ditch mandatory arbitration in cases where employees claim to have been sexually harassed. The bank, rebuilding a scandal-scarred reputation, is launching several reforms. But while Big Tech companies have done away with forced arbitration in such cases, Wells Fargo’s Wall Street peers continue the practice. A 2015 study by the Economic Policy Institute found that employees lose two-thirds as often in mandatory arbitration as in federal court. ?? Here's what people are saying.

RBS tries on a new name

The Royal Bank of Scotland announced plans to rebrand itself as NatWest Group as it said profits nearly doubled for a second straight year. The UK lender has been moving away from the RBS brand to "distance itself from the bank's financial crisis legacy," per Yahoo Finance. New chief executive Alison Rose also shared a new strategy for the bank, including plans to become "climate neutral" and tie executive pay to those targets. ?? Here's what people are saying.

Barclays chief under investigation

The chief executive of Barclays is being probed over his links to disgraced financier Jeffrey Epstein, the British bank disclosed. UK regulators are assessing the relationship between American Jes Staley and Epstein, who died in jail last year, and how that relationship was described to regulators. Staley, who became chief executive in late 2015, has admitted he kept in contact with Epstein for seven years after his conviction, and said he "deeply regrets" the connection. ?? Here's what people are saying.

SoftBank roughed up by Vision Fund

SoftBank's giant Vision Fund recorded a $2 billion loss for October to December as net profit, at 55 billion yen ($500 million), fell short of analyst estimates. The results came amid a sea of bad news: Its investment Brandless just shut down for good, and activist investor Paul Singer's Elliott Management has taken a stake in the conglomerate. Some small cheer: SoftBank, which owns 85% of U.S. telco Sprint, gets to remove about $40 billion in net debt from its balance sheet as a U.S. judge this week approved Sprint's takeover by T-Mobile. ?? Here's what people are saying.

U.S. investors take a shine to Europe

U.S. venture capitalists are taking a shine to European startups. Sequoia, an early backer of Apple, Google, and WhatsApp, is opening its first European office in London this year as more seed money finds its way across the Atlantic. U.S. investors were involved in 19% of funding rounds for European startups last year, up from 7% in 2018 and 3% in 2013. Silicon Valley firms are taking a greater interest in European startups because they give them more bang for the buck, wrote Sifted. ?? Here's what people are saying.

Crypto scams rake in over $4 billion

2019 was a big year for cryptocurrency fraud, according to an analysis by researcher Chainalysis. Ponzi schemes and scams involving bitcoin and other forms of cryptocurrency brought in at least $4.3 billion from investors in 2019 — more than the $3 billion in 2018 and 2017 combined. One expert told The Wall Street Journal that "mimic investing opportunities" are proliferating and becoming more sophisticated in how they reach the mainstream. Just six scams made up roughly 90% of the funds stolen last year, according to Chainalysis. ?? Here's what people are saying.

Low rates, digital payments affect Finn finances

The Finnish central bank wants citizens to become more financially literate. In Finland, household debt has doubled since the turn of the century and a record 7% of the population is having trouble paying the bills. Low interest rates and the rise of digital payments are at the root of the problem, according to Bloomberg. The central bank plans to give citizens access to financial aid, set national targets for financial literacy, and work with third parties on a country-wide strategy. ?? Here's what people are saying.

How to exit negative interest rates

Once you go negative, it’s hard to become positive once more. When Sweden’s Riksbank raised its interest rate level to zero in December, it became the first central bank to exit negative interest rates, which are harmful to savers and lenders. But Sweden’s inflation outlook has worsened since the rate hike, putting Governor Stefan Ingves between a rock and a hard place. Getting rates back up is seen as critical in order to tackle a future crisis, but a deteriorating inflation outlook could force the bank to revert to stimulus packages or a policy of negative rates yet again. ?? Here's what people are saying.

Digital bank N26 quits UK over Brexit

Challenger bank N26 is exiting the UK, blaming difficulties created by the Brexit process. The Berlin-based lender has given its 200,000 customers less than two months to move their money, with all UK accounts to be closed by April 15. The company, which only started offering UK services after the 2016 EU referendum, said the "timing and framework" of the withdrawal agreement made it impossible to continue. The majority of N26’s UK staff will move into new roles within the business, the bank said. ?? Here's what people are saying.

GCC’s financial wealth gone by 2034?

Global oil demand is expected to peak in the next two decades, carrying fiscal consequences that could be larger and more pressing than the GCC countries have envisaged, according to a report by the IMF. Projections show the region's hydrocarbon revenue to GDP halving by 2050. The GCC could exhaust its net financial wealth, currently estimated at $2 trillion, in the next 15 years as countries become net borrowers, the IMF warned. ?? Here's what people are saying.

—With Andrew Seaman, Salma Altantawy, Riva Gold, Yunita Ong, Pieter Cranenbroek, Monica Fike, Natalie MacDonald, and Lynn Chouman.

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