Bank of England keeps rates at rock bottom despite UK recovery March 6, 2014 INTEREST rates have now been at 0.5 per cent for more than five years, as the Bank of England yesterday held them at rock bottom again. Policymakers have indicated they will not raise rates until the recovery eats away at enough spare capacity that inflation starts to rise. That promise means the Bank’s monetary policy committee [...]
EU forces Barclays to end its 118-year relationship with PwC March 6, 2014 BARCLAYS will have a new auditor from 2017 as new EU rules force the bank to end its historic relationship with PwC and rotate to a different firm, the lender’s annual report shows. The bank has worked with PwC and its predecessor companies since 1896 and last put the deal out to tender more than [...]
Greek bank in bond issuance March 6, 2014 PIRAEUS Bank is the first Greek lender to return to the bond markets five years after investors locked the industry out in the wake of the financial crisis. The bank wants to raise as much as €500m (£414m) and has hired HSBC, BNP Paribas, Credit Suisse, Deutsche Bank and Goldman Sachs to tap up investors [...]
Woodford leaves Invesco fund early March 6, 2014 NEIL Woodford, one of the UK’s best known fund managers, has handed over the reins of his funds at Invesco Perpetual nearly two months earlier than planned. The stock picker will remain at the firm until his departure date of 29 April but has turned command of the fund over to incoming manager Mark Barnett, [...]
John Roberts defends adviser in £1.2bn float March 6, 2014 AO World’s blockbuster IPO was 18 months in the planning THE founder of the Bolton-based fridge retailer AO World, which has provided the most spectacular flotation in the London markets so far this year, yesterday staunchly defended the £12m fee his group agreed with Rothschild, the independent financial adviser on the deal. “£12m is a [...]
Inside Track: Rothschild will only gain from the AO World listing March 6, 2014 HELL HATH no fury like an investment banker jealous of another’s success. Or so it seems after the furore surrounding Rothschild’s £12m fee for its work with AO World, the online electrical retailer that floated with a mega valuation of £1.2bn last week. Ever since news of the bumper fee emerged, rival bankers have been [...]
Swelling house prices continue into February March 6, 2014 UK HOUSE prices surged in February according to a major index of prices, jumping 2.4 per cent in the month alone, and up 7.9 per cent from February last year. The monthly change is the fastest that Halifax has recorded since the first half of 2009, and February saw the 11th month-on-month increase in the [...]
Surveyors call for major reform to stamp duty and Help to Buy March 6, 2014 THE ROYAL Institution of Chartered Surveyors (RICS) is pushing for sweeping reforms to UK housing policy in the upcoming budget, to limit market distortions. The group reveals its suggestions to the Treasury today, stressing the need to change stamp duty so less of a burden falls on homes worth just over £250,000, when the tax rises from [...]
Lloyds swaps defunct capital tool for cocos March 6, 2014 LLOYDS is bolstering its capital position by offering investors a new contingent convertible (coco) instrument in exchange for older securities. The bank issued enhanced capital notes (ECNs) in 2009 to boost its capital buffers. But it now fears regulators will rule them ineligible as additional tier one (AT1) capital, the type the bank wants. As [...]
Aviva’s back in the black with profits of £2bn March 6, 2014 INSURER Aviva announced a strong set of annual results yesterday, following a £2.9bn loss in 2012. Profits rebounded to £2.1bn in 2013, allowing the company to issue a final dividend of 9.4p per share. The value of new business to the group rose by 13 per cent. Although the insurer estimates the cost of UK [...]