Aviva reorganizes the business and sells Hong Kong share

UK insurer Aviva is selling its share in its Hong Kong division to co-investor Hillhouse Capital and is reorganizing the business into five operating divisions. This was announced on Wednesday ahead of a presentation to investors. 

According to analysts and investors, the change follows the company's struggle to find a direction after replacing its chief executive earlier this year. Aviva says it wants to be more commercially focused and disciplined in investments and managing costs. 

The UK insurer has set out a series of three-year targets, a 12% return on equity as well as a 300-million-pound net cost saving by 2022. The future of the business is looking to Vietnam and Indonesia following the sale of its stake in Hong Kong.

Tourism profits grow in Greece while account surplus widens

According to the Bank of Greece, the country's current account surplus rose to 887 million euros ($981 million) in September 2019 from 548 million ($606 million) euros in the same month last year.

This could be the result of a 16% rise in tourism profits, that went from 2.454 billion euros last year to 2.847 billion euros this year. Greece's account balance last year had shown a deficit of 5.3 billion euros. 

Likely delays on France's 5G spectrum auction

France's 5G spectrum auction is likely to be delayed by three months as uncertainty surrounds which telecom networks could be used. According to a Reuters report earlier this week the auction will be postponed to March 2020 at least. 

Arthur Drayfuss, head of the FFT French telecoms federation, said the possible ban of Chinese Huawei from French 5G could result in additional delays. 

France's last spectrum auction in 2015 raised 2.8 billion euros ($3.10 billion) for state funds.

ECB warns of low rates provoking 'excessive risk taking'

The European Central Bank said on Wednesday that historically low eurozone interest rates are likely to remain steady into the future whilst encouraging risk-taking that could threaten financial stability. Luis de Guindos, ECB vice-president, said in a statement "While the low interest rate environment supports the overall economy, we also note an increase in risk-taking which could... create financial stability challenges."
 

"Signs of excessive risk-taking" were spotted by the Frankfurt institution among non-bank financial players like "investment funds, insurance companies and pension funds." 
 

Many "have increased their exposure to riskier segments of the corporate and sovereign sectors," it said.
 

Extremely low or negative yields on debt from safer borrowers have prompted investors to look for riskier bets in search of returns. 
 

Even though the ECB's twice yearly update to its risk assessment shifted focus from May's trade war concerns, "downside risks to global and euro area economic growth have increased" in that time.