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News and Analysis | City A.M.

News and Analysis

  • Eurozone production in surprise jump
    Friday, 12th March 2010
    EUROPEAN ECONOMY
    John Dunne
    INDUSTRIAL production in the 16 countries in the eurozone increased by much more than expected in January. The 1.7 per cent growth between December and January was a record jump in the monthly data produced by Eurostat. Consumer goods like cars, furniture and appliances, rose by two per cent. The European Commission's latest forecast suggests the eurozone economy will expand by 0.7 per cent during 2010 after contracting by four per cent in 2009. [Read more]

  • BA to be hit by seven days of strikes
    Friday, 12th March 2010
    AVIATION
    John Dunne
    BA cabin crew will go on strike for three days from 20 March and for four days from 27 March, union official have confirmed. Unite called the walkout after talks to settle a dispute over pay and... [Read more]
  • Luminar suffers clubbers put off by cold
    Friday, 12th March 2010
    LEISURE
    John Dunne
    NIGHTCLUB group Luminar has seen its trading badly dented by freezing winter weather. Clubber numbers have dwindle leaving sales down 9.9 per cent in the year to 25 February. The company, which owns... [Read more]
  • Promethean set for £400m listing
    Friday, 12th March 2010
    JOHN DUNNE
    EDUCATION technology group Promethean World and its owners are set for a £400m listing on the London Stock Exchange. The Blackburn-based company and private equity firm Apax Partners – which owns a... [Read more]

  • Liberty receives takeover approaches
    Friday, 12th March 2010
    RETAIL
    John Dunne
    LIBERTY could be taken over in a deal of up to £70m after more than one potential buyer has emerged. The Regent Street department store told the stock market today that it had received approaches... [Read more]
  • SuperGroup flotation to value company at £395m
    Friday, 12th March 2010
    RETAIL
    John Dunne
    FASHION retailer SuperGroup has said it will go ahead with its stock market listing and expects to receive a valuation of £395m. The company – which has the Superdry brand sported by celebrities... [Read more]
  • Lehman used accounting "gimmicks" before collapse
    Friday, 12th March 2010
    BANKING
    John Dunne
    LEHMAN Brothers used accounting gimmicks and had been insolvent for weeks before it filed for bankruptcy in September 2008, but there was not extensive wrongdoing, a court-appointed examiner has... [Read more]
  • London and NY in tie for finance hub
    Friday, 12th March 2010
    UK ECONOMY
    Steve Dinneen
    LONDON is no longer the world’s leading financial centre, according to a highly rated survey The Global Financial Centres report yesterday slashed its rating to equal that of New York. It is the... [Read more]
  • Tories insist that City has faith in Osborne
    Friday, 12th March 2010
    ELECTION2010
    David Crow and Victoria Bates
    THE Tories yesterday insisted the City had faith in George Osborne, after our City A.M. reader panel said Ken Clarke would make a better chancellor. Shadow business secretary Clarke was the first... [Read more]
  • City mourns Sir Brian Pitman
    Friday, 12th March 2010
    OBITUARY
    David Hellier
    SIR Brian Pitman, one of the most respected bankers of his generation, has died aged 78. Pitman, who was latterly chairman of Virgin Money, led Lloyds Bank for 18 years before retiring almost a... [Read more]
  • Europe is risking a trade war with US
    Friday, 12th March 2010
    EDITOR'S LETTER
    Allister Heath
    Allister Heath
    ONCE again, the European Union has got it wrong. It doesn’t have a clue about regulating hedge funds, private equity or other financial products and players. Brussels is tilting at windmills,... [Read more]
  • WHAT THE OTHER PAPERS SAY THIS MORNING
    Friday, 12th March 2010
    FINANCIAL TIMES PUSH FOR CLEARING HOUSES FAILS TO MOVE OIL TRADERS Big oil traders are choosing to keep more derivatives deals private, in spite of a global regulatory campaign to steer such... [Read more]
  • Tory lead cut to three points
    Friday, 12th March 2010
    ELECTION2010
    Labour crept up two points on the Conservatives, according to the YouGov daily tracker poll published today. The Tories, led by David Cameron, remain unchanged on 37 per cent, while Gordon Brown’s... [Read more]
  • Rival banks cited in Lehman case
    Friday, 12th March 2010
    JP Morgan Chase and Citigroup helped cause the illiquidity that led to the collapse of Lehman Brothers by making new demands for collateral, the failed US investment bank, a court-appointed examiner... [Read more]
  • US and EU in a battle over hedge funds
    Friday, 12th March 2010
    HEDGE FUNDS
    STEVE DINNEEN
    THE bitter war of words between the US and Europe over hedge fund regulation reached new heights yesterday. The EU reacted furiously to criticism of its plans to clamp down on hedge funds. US... [Read more]
  • Calvert gets jailed for insider trading
    Friday, 12th March 2010
    UK ECONOMY
    MARK SHAPLAND
    INSIDER trader Malcolm Calvert, has been jailed for nearly two years after being found guilty of a crime that destroys confidence “in a clear and fair market.” The former Cazenove partner made more... [Read more]
  • Darling rules out a giveaway budget but tax rises not expected
    Friday, 12th March 2010
    Election 2010
    Steve Dinneen
    Alistair Darling says his budget on 24 March will not be a “giveaway.” He said the budget, Labour’s last chance to set out its plans for the economic recovery, before an expected 6 May election, will... [Read more]
  • Data leak hits HSBC clients
    Friday, 12th March 2010
    BANKING
    VICTORIA BATES
    THOUSANDS of clients of HSBC’s Swiss private banking division, including wealthy Britons with off-shore accounts in the country, have been affected after a former employee of the bank filched... [Read more]
  • White Knight could rival the Red Knights’ Old Trafford bid
    Friday, 12th March 2010
    SPORT FINANCE
    STEVE DINNEEN
    A SECOND bid to buy Manchester United from the Glazer family is brewing, City A.M. has learned. A group of wealthy City figures are desperate to wrest control of the club with a bid worth around £1.... [Read more]
  • NEWS | IN BRIEF
    Friday, 12th March 2010
    Advent mulls Poundland sale
    Advent International, the private equity owner of Poundland, the discount retailer that sells all products for £1 or less, has hired advisers to prepare for a possible sale. Pound stores have done... [Read more]
  • NEWS | IN BRIEF
    Friday, 12th March 2010
    CBOE plans $300m offering
    The Chicago Board Options Exchange (CBOE) plans a $300m public offering in a long-awaited move that could allow the biggest US options exchange to expand or be acquired. Completion of the IPO is not... [Read more]
  • BP begins its $7bn Brazilian oil adventure
    Friday, 12th March 2010
    ENERGY
    MARK SHAPLAND
    BRITISH Petroleum (BP) has begun its long-awaited venture into the Brazilian offshore market after agreeing to buy $7bn (£4.6bn) worth of assets from Devon Energy. Devon’s largely unknown but... [Read more]
  • Hayward joins the carnival with key deal
    Friday, 12th March 2010
    BOTTOM LINE
    David Crow
    BP finally joined the carnival yesterday, spending $7bn to snap up assets in Brazil, Azerbaijan and the Gulf of Mexico. It will strengthen the oil major’s presence in all these regions, especially... [Read more]
  • Old Mutual to sell off its US life businesses
    Friday, 12th March 2010
    INSURANCE
    Mark Shapland
    INSURER Old Mutual said yesterday it would reduce its exposure to the US, selling its life business and listing its US asset-management arm as it revealed a fall in pre-tax profit. The Anglo-South... [Read more]
  • Johnston Press is ready to wield the axe after more disappointing results
    Friday, 12th March 2010
    MEDIA
    Johnston Press saw its pre-tax profits plummet 56 per cent to just £43m last year, dragged further into the doldrums by the ongoing advertising drought. Like-for-like ad revenue fell 26.5 per cent... [Read more]
  • Morrisons in bid to expand
    Friday, 12th March 2010
    RETAIL
    JOHN DUNNE
    SUPERMARKET chain WM Morrison yesterday pledged to open more smaller stores after new openings last year helped it to record a 30 per cent rise in full-year pre-tax profit. In 2009, pre-tax profits... [Read more]
  • Wetherspoon dividend back as profit rises
    Friday, 12th March 2010
    LEISURE
    PUB chain Wetherspoon announced the end of a year-long dividend freeze yesterday after successfully completing its debt refinancing. Shareholders will receive a 12p dividend on 1 April for the year... [Read more]
  • Home Retail ups forecast
    Friday, 12th March 2010
    RETAIL
    JOHN DUNNE
    HOME retail Group – which owns Argos and Homebase – has tipped its pre-tax profit for the year to come in at £290m. The figure is slightly ahead of its earlier forecast of £285m for the year to 27... [Read more]
  • John Lewis gives staff 15pc bonus
    Friday, 12th March 2010
    RETAIL
    CAITLIN NOLAN
    JOHN Lewis will hand its staff a 15 per cent bonus after reporting a surge in annual profits. The staff-owned retailer made a profit before the employee bonus and tax of £306.6m in the year to the... [Read more]
  • ANALYST VIEWS: IS THE HIGH STREET CRISIS OVER?
    Friday, 12th March 2010
    Interviews by Caitlin Nolan
    TONY SHIRET | CREDIT SUISSE RETAIL "Home Retail Group’s results were pretty poor. They were worse than expected but we had been forewarned about that. Overall sales should improve but recovery in... [Read more]
  • Pound boosted by uptick in inflation expectations
    Friday, 12th March 2010
    UK ECONOMY
    JESSICA MEAD
    STERLING yesterday managed to claw back some of Wednesday’s sharp losses after Bank of England data showed that consumers’ expectations for inflation over the next year inched higher. Figures from... [Read more]
  • NEWS | IN BRIEF
    Friday, 12th March 2010
    US trade deficit shrinks
    America’s burgeoning economic recovery could be slowing after figures published yesterday showed the US trade deficit narrowed in January, in part due to a slump in demand for overseas oil. The... [Read more]
  • NEWS | IN BRIEF
    Friday, 12th March 2010
    China CPI soars to 16-month high
    Consumer inflation in China has soared to a 16-month high, according to official data published yesterday. Annual consumer price inflation rose to 2.7 per cent in February compared to 1.5 per cent... [Read more]
  • Citigroup to return to profit, says Pandit
    Friday, 12th March 2010
    BANKING
    HARRY BANKS
    CITIGROUP chief executive Vikram Pandit told investors yesterday the bank is on track to return to sustained profitability and losses from some of its worst assets should be manageable if the economy... [Read more]
  • CITY VIEWS: do you think the fsa’s crackdown on insider
    Friday, 12th March 2010
    Interviews by Lou Cooper
    ADRIAN YEUNG | JP MORGAN CHASE “Historically, it’s always been a hard thing for the Financial Services Authority (FSA) to crack down on. Proving intent is difficult. It’s the difference between... [Read more]
  • AstraZeneca in emerging markets deal
    Friday, 12th March 2010
    PHARMACEUTICALS
    HARRY BANKS
    ASTRAZENECA is stepping up its footprint in emerging markets through a branded generics supply deal with Indian group Torrent Pharmaceuticals that mirrors similar tie-ups by other big pharma groups.... [Read more]
  • NEWS | IN BRIEF
    Friday, 12th March 2010
    Scottish Power to cut bills
    Scottish Power yesterday caught up with rivals annoucing that it will cut gas prices by an average of eight per cent from the end of March. The company said its 1.6m domestic gas customers would save... [Read more]
  • NEWS | IN BRIEF
    Friday, 12th March 2010
    Google faces AdMob inquiry
    US regulators are stepping up their investigation into Google’s planned acquisition of mobile advertising company AdMob, suggesting that the government may challenge the $750m deal. The Federal Trade... [Read more]
  • NEWS | IN BRIEF
    Friday, 12th March 2010
    Daihatsu issues vehicle recall
    Daihatsu is the latest Japanese carmaker to issue a recall, affecting 274,551 vehicles. The company, a subsidiary of beleaguered Toyota, announced the recall yesterday amid fears of several possible... [Read more]
  • UK high-speed rail network to cost £30bn
    Friday, 12th March 2010
    TRANSPORT
    EMMA SADOWSKI
    PLANS to build a high-speed rail network connecting London with Northern Britain were revealed yesterday by transport secretary Andrew Adonis, in a project expected to cost £30bn. Adonis laid out his... [Read more]
  • Carlyle quits Shanks takeover
    Friday, 12th March 2010
    PRIVATE EQUITY
    EMMA SADOWSKI
    TAKEOVER talks between buyout firm Carlyle Group and Shanks fell apart yesterday after a disagreement between the two over pricing. Carlyle had looked poised to take over the waste management group... [Read more]
  • Air demand up as flight losses halve
    Friday, 12th March 2010
    AVIATION
    AIRLINES in emerging markets will lead a global rebound in air traffic, as commercial carriers worldwide see collective losses halve this year, according to an airline trade body. The International... [Read more]
  • BMW records a fall in profit
    Friday, 12th March 2010
    BANKING
    VICTORIA BATES
    BMW’S cost cutting measures have begun to gain traction as the German premium automaker posted a better-than-expected 2009 profit despite lower vehicle production. BMW said yesterday its pre-tax... [Read more]
  • Superfast broadband roll-out
    Friday, 12th March 2010
    TECHNOLOGY
    STEVE DINNEEN
    TECHNOLOGY that allows superfast broadband to be transmitted using telegraph poles is being trialled. If successful the scheme could be rolled out to allow London commuters in key towns to increase... [Read more]
  • Arbuthnot strikes out at government for damaging prospects at small banks
    Friday, 12th March 2010
    BANKING
    ARBUTHNOT Banking Group yesterday hit out at the government for crippling smaller banks with a “one-size-fits-all” approach to punitive regulatory policy. Arbuthnot has avoided the Bank Payroll Tax... [Read more]
  • Conservatives pledge to invest in a high-speed Internet network
    Friday, 12th March 2010
    TECHNOLOGY
    INVESTING in a high-speed Internet network would open up a new global trade route for Britain, boosting economic recovery and creating thousands of jobs, the opposition Conservative party claimed... [Read more]
  • CITY MOVES | WHO’S SWITCHING JOBS
    Friday, 12th March 2010
    Victoria Bates
    Alexander Proudfoot The consultancy has hired a slew of City heavyweights to its new UK advisory board, chaired by Sir Patrick Brown, chair of the Go-Ahead Group. The board also includes Schroders... [Read more]
  • HSBC admits that data theft hit up to 24,000 accounts
    Thursday, 11th March 2010
    BANKING
    JOHN DUNNE
    HSBC has confirmed that a theft of data by a former employee affected up to 24,000 Swiss client accounts. The bank had previously said "less than 10 clients" were compromised after a former HSBC... [Read more]
  • John Lewis to give staff £151m bonus
    Thursday, 11th March 2010
    RETAIL
    JOHN DUNNE
    JOHN Lewis will hand its staff a 15 per cent bonus after reporting a surge in annual profits. The retailer made a profit before the staff bonus and tax of £306.6m in the year to the end of January –... [Read more]
  • JD Wetherspoon restores dividend after record profit
    Thursday, 11th March 2010
    LEISURE
    RHIAN NICHOLSON
    PUB chain Wetherspoon today announced the end of a year-long dividend freeze after successfully completing its debt refinancing. Shareholders will receive a 12p dividend on 1 April for the year to... [Read more]
  • Home Retail Group ups forecasts but Argos slumps
    Thursday, 11th March 2010
    RETAIL
    JOHN DUNNE
    HOME retail Group – which owns Argos and Homebase – has tipped its pre-tax profit for the year to come in at £290m The figure is slightly ahead of market forecasts for the year to 27 February.... [Read more]
  • Morrisons raises dividend after profits surge
    Thursday, 11th March 2010
    CONSUMER
    JOHN DUNNE
    SUPERMARKET chain Morrisons saw a 21 per cent surge in profits last year to £767m. The company, Britain’s fourth largest grocer, raised its full year dividend 41 per cent to 8.2 pence a share on the... [Read more]
  • CITY: KEN CLARKE FOR CHANCELLOR
    Thursday, 11th March 2010
    POLITICS
    DAVID CROW
    KEN Clarke would make a better chancellor than George Osborne, according to our panel of City A.M. readers. Clarke, who held the job between 1993 and 1997 and is now shadow business secretary, topped... [Read more]
  • Banks told to prepare for gloom
    Thursday, 11th March 2010
    BANKING
    MARK SHAPLAND
    UK banks have been ordered by the Financial Services Authority (FSA) to prepare for a double dip recession, another crash in house prices and a sharp increase in unemployment. The 2010 stress test... [Read more]
  • EU to look at a swaps ban
    Thursday, 11th March 2010
    EU ECONOMY
    MARK SHAPLAND
    THE European Union has been asked by a group of Europe’s leading economies to look into banning speculative trading in credit default swaps (CDS). France and Germany are leading the attack and want... [Read more]
  • The City is not in love with Osborne
    Thursday, 11th March 2010
    EDITOR'S LETTER
    ALLISTER HEATH
    Allister Heath
    SOMETHING has gone badly wrong for the Tories. Not only is their lead in the national opinion polls looking too low to prevent a hung parliament – they are on just 37 per cent, against 32 per cent... [Read more]
  • WHAT THE OTHER PAPERS SAY THIS MORNING
    Thursday, 11th March 2010
    FINANCIAL TIMES SHINSEI IN CAPITAL DRIVE AS MERGER FALTERS Shinsei, the Japanese bank, is preparing to raise about Y75bn ($830m) in fresh capital as a merger with a rival domestic lender once seen as... [Read more]
  • MEPs want a Tobin tax
    Thursday, 11th March 2010
    EU ECONOMY
    MARK SHAPLAND
    MEMBERS of the European Parliament have taken the extraordinary step of voting in favour of a Tobin tax on financial transactions. The resolution was passed by 536 to 80 votes yesterday and the... [Read more]
  • Tory lead increases by a point
    Thursday, 11th March 2010
    ELECTION2010
    The Conservatives saw their lead return to 5 points yesterday, according to a daily YouGov poll. Labour support stayed the same on the day the chancellor confirmed the budget date for 24 March. The... [Read more]
  • Dubai creditors get repayment
    Thursday, 11th March 2010
    Lenders to Dubai World will get a range of options including full repayment once Abu Dhabi decides how much additional support it will give its debt-laden neighbour, sources close to the discussions... [Read more]
  • Rules on pay disclosure to be tightened
    Thursday, 11th March 2010
    BANKING
    VICTORIA BATES
    TENS of thousands of investment bankers could be forced to disclose the size of their pay packet, in a government move that will send shock waves through the City. City minister Lord Myners yesterday... [Read more]
  • Cazenove’s Calvert found guilty of insider trading
    Thursday, 11th March 2010
    BANKING
    MARK SHAPLAND
    MALCOLM Calvert, a former partner at Cazenove, has been found guilty of five counts of insider trading and faces up to seven years behind bars. The verdict was reached at Southwark Crown Court... [Read more]
  • Vikram Pandit plans Citigroup return to profit
    Thursday, 11th March 2010
    BANKING
    THE battered US banking giant, Citigroup, will look to earn as much as $20bn (£13bn) by the end of 2012 as the company looks to get back on its feet. Vikram Pandit, Citigroup’s chief executive,... [Read more]
  • EMI boss quits ahead of key refinancing
    Thursday, 11th March 2010
    MUSIC
    DAVID HELLIER
    THE financially troubled EMI music label yesterday revealed that its chief executive Elio Leoni-Sceti is leaving after only 18 months in the post. Leoni-Sceti leaves with no job to go to. Having... [Read more]