EU PUTS BANKS’ SHORTFALL AT JUST €90BN
Europe’s grand plan to strengthen its banking system is set to fall well short of current market expectations identifying a capital shortfall of less than €100bn (£87bn) that must be made up over the next six to nine months, according to the latest official estimates. The EU’s estimate of the necessary recapitalisation effort compares with a recent IMF report that identified a €200bn hole in banks’ balance sheets.
SHADOW FALLS OVER SOLAR SUBSIDIES
Subsidies for households to install solar panels are about to be slashed by ministers in a controversial mood that could make a further dent in the coalition’s green credentials. Ministers are also expected to announce today a shake-up of wind power incentives from 2015, which will cut subsidies for onshore wind but improve state help for wave and tidal power.
ARM UNVEILS NEW CHIP FOR $100 SMARTPHONE
ARM Holdings has unveiled a new microchip design that will allow the development of smartphones costing less than $100 (£63) by 2013. The UK-based company, whose designs are used in more than 90 per cent of the world’s mobile phones, has produced a microprocessor achitecture one-fifth the size of those used in smartphones today, and five times more efficient.
COSALT SHARES SHED MORE THAN HALF VALUE IN A DAY
Shares in Cosalt more than halved after the engineering services company warned that full-year revenues would be “significantly lower than the board’s previous estimates”.
ST PAUL’S ASKS ANTI-CAPITALIST PROTESTERS TO GO
St Paul’s Cathedral could be closed for the first time in memory because of the anti-capitalist protest taking place on its doorstep. Cathedral authorities asked the growing number of Occupy London Stock Exchange protesters who have pitched tents outside the main entrance to move on last night.
MILLIONS IN AID LOST TO FRAUD AND CORRUPTION
The department responsible for overseas aid is losing millions of pounds of taxpayers’ money through fraud and corruption because of poor financial management, an influential committee of MPs has found. The Public Accounts Committee said that the potential for fraud will now be much higher because Britain is refocusing its overseas aid to war-torn and difficult countries.
The Daily Telegraph
PRUDENT SAVERS HIT BY “EXCESSIVE” HIDDEN FEES ON PENSIONS
Prudent savers are having their retirement funds “eaten away” by excessive hidden fees, the organisation representing pension funds will admit. The National Association of Pension Funds says that fees are too high and that consumers face an “eye wateringly complex” system of hidden levies.
SHOP DIRECT WARNS OF “BRUTAL” 2012 DESPITE SEEING SALES RISE
Shop Direct, owner of the Littlewoods shopping business, has warned of a “brutal” 2012 after posting an increase in sales last year. The company, the country's biggest catalogue and online retailer, increased sales by 5.5pc to £1.94bn in the year to April 2011, helped by the successful introduction of the Isme brand, aimed at older women.
THE WALL STREET JOURNAL
AT UBS, CHIEF PUSHES NEW CUTS
Under pressure to revive UBS’s fortunes and help the firm recover from a rogue-trading scandal, the Swiss bank’s interim chief is preparing to shrink its once high-flying investment-banking unit. Sergio Ermotti, who has been at the helm for less than a month, has ruled out a sale or spinoff of the investment bank but has decided to significantly reduce its scope and size.
BOFA'S BIG MORTGAGE SETTLEMENT IS MOVED TO US COURT
A federal judge has ruled the $8.5bn settlement between Bank of America and several high-profile investors who lost billions on mortgage-backed securities will be heard in federal court. The ruling goes against BoA and Bank of New York Mellon, the trustee in the case, which had both wanted the settlement to remain in New York state.