The heavily-trailed flotation of the world's largest airport operator has been postponed until at least the early part of next year, a source close to the deal has confirmed.
Spanish government-owned Aena, which owns 46 airports including Luton, Madrid Cuartro-Vientos and Barcelona-El Prat, had been due to list 49 per cent of its shares on November 12, which had been expected to raise $10bn for the company.
The decision is an embarrassing u-turn for the Spanish government, which had been using the listing as a bellwether for retail investors' confidence in the country's economic prospects, advertising the offer heavily on local TV and radio.
Although it has been reported that the delay is due to a "technical flaw", meaning a tender was not organised to find an auditor to sign off the "comfort letter" needed for the prospectus, it is thought shaky figures coming out of European economies and weakening enthusiasm for new listings have also contributed.
There are also reports of in-fighting among government ministers, particularly minister of development Ana Pastor, who is in favour of the deal, and the ministers of finance and economic affairs, Luis de Guindos and Cristóbal Montoro
Last week, the listing was put back when the filing of its prospectus was delayed, although Aenas said it expected the government to give it the go-ahead at some point today.
The Bank of England has revealed proposals to increase the leverage ratio of UK banks to ensure banks have a larger safety net to fall back on in the event of another financial crisis.
The tough new measures will force banks to keep capital of up to 4.95 pence for every £1 they lend by 2019. It’s an increase on the three per cent already required from the UK's biggest banks and includes a minimum 4.05 per cent requirement and an additional buffer of between 0 and 0.9 per cent.
Markets responded positively to the development as analysts expected the BoE to require a higher ratio of more than five per cent. Barclays shares leapt nearly ten per cent in afternoon trading while shares in RBS and Lloyds also went up.
Barclays, HSBC and other global banks will be subject to an earlier requirement however, of introducing a 0.875 per cent buffer on the current three per cent from 2016.
Smaller banks could also be subject to the big banks' current minimum three per cent requirement from 2018 pending a review in 2017.
The BoE's Financial Policy Committee made the recommendations to Chancellor George Osborne this afternoon after he asked the FPC to begin a review of banking leverage ratio in Novemeber last year.
Osborne said the Treasury backed the BoE proposals and would seek to get legislation through parliament which would grant the FPC powers to implement them.
Royal Mail is refusing to deliver a leaflet by the far-right group Britain First to voters in Rochester and Strood, saying it “does not comply with the law”.
My name is Jayda Fransen and unlike the rest, I am proud to be English.I have campaigned hard against the huge new mega mosque that is going to be built on Rochester's doorstep and that is why I am standing in the Rochester and Strood by-election.If this mega mosque is built, Medway will be flooded with more Muslim immigrants. I want Medway, especially Rochester, to remain English – unfortunately none of the other parties do...
Royal Mail has a legal obligation under the Representation of the People Act 1983 to deliver parliamentary election mail. Royal Mail may refuse to carry election mail if we consider its contents to be illegal, for example if it is threatening, abusive or insulting, or is intended to cause distress or anxiety.We have procedures in place to evaluate whether election mail complies with the law. In this instance, we consider that the election mail in question does not comply with the law and have therefore refused to carry it.
Former Tory treasurer and Icap founder Michael Spencer has sold his online spread betting business to US rival Gain Capital for $118m (£74m), in a deal that will create a company with 235,000 customers in more than 180 countries, with annual trading volumes of more than $3tn.
Spencer sold the business, of which his private investment vehicle IPGL owns two-thirds, to Gain in a deal comprising of $20m in cash, $60m in convertible bonds and shares in City Index worth $5.3m. The business has $36m of cash on its books, and $65m of net operating losses, which can be carried forward.
Established in 1983, City Index was one of the UK's first spread betting providers, although it suffered during the recession, writing off £35m and forcing Spencer to inject £70m. However, last year the company reported adjusted earnings of $10.7m on revenues of $124.8m.
Today Spencer said he was "very pleased" with the transaction.
[Gain] will be able to move City Index to the next level, by leveraging its broad array of trading products and services onto a global platform. We believe this combination will enhance Gain's leadership position in the FX/CFD industry by putting together two highly complementary companies to create significant value for customers and stakeholders. This is the latest example of the way that IPGL is able to invest actively in businesses over the long term to support their growth and development
It’s the perfect weather for it today, but anyone wanting to relax and enjoy the views from this stunning office roof garden will have to wait until spring 2016.
Lucky office workers will be able to see stunning views of Buckingham Palace, St James’ Park and across central London from six, yes six, roof gardens being built at the Verde SW1 development in Victoria.
The outdoor space will make up 20,000 of the 282,000 square foot of office space spread over 11 storeys, with terraces on each level from the sixth to the eleventh floor.
Could the development attract business HQs away from the City? With those views on offer, frankly, who wouldn’t be tempted?
Developers Tishman Speyer, which is calling it a park in the sky, says the building is designed to attract the “next big company HQ”.
Managing director Dan Nicholson says “With a statement new glass façade and six dramatic roof gardens, we are creating a 21st century workplace, designed with the wellbeing of workers and productive business in mind.”
City workers will have fingers crossed that their company is eyeing a change of location.
Here's what those six roof gardens will look like. Bring on summer 2016.
Balfour Beatty has completed the sale of its design arm Parsons Brinckerhoff to Canadian firm WSP Global for $1.24bn (£753m).
Balfour Beatty expects to spend the proceeds on returning £200m to shareholders through a share buyback programme and £85m on reducing the group’s pension deficit. The remaining money will be added to the company’s books “to ensure a strong balance sheet and provide increased financial flexibility.”
Executive chairman Steve Marshall had this to say: "This sale represents a significant return on Balfour Beatty's investment and a compelling level of value creation for shareholders. Following the sale, Balfour Beatty will be a simplified and more focused group. It has leading positions in the UK and US construction and infrastructure markets, all supported by a strong balance sheet. Leo Quinn joins as group chief executive in the New Year to take the group forward and to drive shareholder value."
The firm said it would continue to have a turnover of £8bn after the sale of Parsons, which it picked up in 2009 for £382m.
Balfour Beatty's share price ticked up nearly half a per cent at pixel time in afternoon trading.
RBS is the latest bank to set aside a hefty pot of cash for the potential costs of settling with the City regulator after a major investigation into the manipulation of forex markets.
The bank revealed that figure stands at £400m in its third quarter results today. It’s a large sum, but by no means the largest amount from the six banks in talks with the Financial Conduct Authority.
Just yesterday, Barclays revealed its own figure of £500m, while Citigroup earlier earmarked £600m and JP Morgan just over that.
While UBS added an additional £1.18bn in the latest quarter to its war chest of potential legal costs, it did not specify what these costs were in relation to. The Swiss bank did reveal it was in talks with the US department of Justice to resolve forex litigation.
It’s total war chest for potential litigation costs stands at around £2.3bn, some of which is likely to be earmarked for a potential settlement with UK or US regulators, or both, by the end of the year analysts expect.
This brings the total amount earmarked so far to a potential £3.68bn. However, that figure is likely to rise.
HSBC, the sixth British bank with which the FCA has been talking, has yet to earmark potential costs, but is due to report its latest earnings on Monday.