What you need to know before the open March 20, 2014 Following a broadly favourable Budget yesterday, then something of a curveball from Janet Yellen – her suggestions about the course of interest rates unsettling markets, European bourses are expected lower today, tracking Asian and US counterparts. Markets sold off sharply on talk that the Fed could raise rates by the spring of next year, and [...]
Next overtakes M&S as CEO delivers economic warning March 20, 2014 High street fashion store next had, in its own words, a great year last year. In a landmark moment, it's overtaken Marks and Spencer as the biggest clothes retailer by profits in the UK. It's upped its sales growth forecast significantly – from between one and four per cent to between four and eight per cent. [...]
The pensions revolution March 19, 2014 City stunned as chancellor unveils greatest overhaul of savings for a generation A SWEEPING reform of the UK’s pension system that will revolutionise the way Britons save for retirement was cheered by campaigners yesterday, despite investors wiping billions of pounds off the value of the pension industry over fears that profits could be hit. The changes, [...]
Budget at a glance: Osborne’s plans for Britain’s economy March 19, 2014 As growth bounces back, the focus turns to reforming savings THE ECONOMY UK growth for this year is now expected to be 2.7 per cent, the Office for Budget Responsibility (OBR) said yesterday – up from its previous estimate, made in December, of 2.4 per cent GDP expansion. A year ago the OBR expected growth [...]
Yellen says Fed may raise rates by spring 2015 March 19, 2014 THE Federal Reserve will probably end its massive bond-buying programme this coming autumn, and could start to raise interest rates around six months later, Fed chair Janet Yellen said yesterday. US stocks fell after the statement with the Dow closing 0.7 per cent lower at 16,222.17. The Fed had pledged not to raise rates until [...]
What the other papers say this morning – 20 March 2014 March 19, 2014 FINANCIAL TIMES Starbucks aims to double market cap Starbucks wants to almost double its market capitalisation to $100bn (£60.5bn), chief executive Howard Schultz said yesterday, even as the US coffee chain underscored the changing landscape facing retailers as more consumers shop online and by mobile phone. THE TIMES London hit by Deutsche Bank job cuts [...]
Lynch slams HP’s actions as misleading in Autonomy probe March 19, 2014 FORMER Autonomy chief executive Mike Lynch hit out at HP yesterday calling the US tech giant’s actions misleading in the investigation into Autonomy’s finances. Autonomy is currently at the centre of fraud investigations by the Serious Fraud Office and the US Department of Justice for its allegedly inflated profits prior to its $11bn (£6.74bn) takeover [...]
Co-op reshuffles management in group’s first wave of reforms March 19, 2014 THE MANAGEMENT team at the Co-op was reshuffled yesterday in the embattled group’s latest bid to show the leadership is serious about reforming its structure. It came as the mutual delayed its annual results and general meeting from next week to 17 April. The shake-up is the first stage of a series of reforms which [...]
Smiths plunges as strong pound hammers profit March 19, 2014 SMITHS Group fell 50p or nearly four per cent per cent yesterday after a weak performance from its medical unit and a strong pound negatively impacted on first-half profits. The FTSE 100-quoted firm, which makes mechanical seals, bomb detectors and medical devices, reported a four per cent decline in pre-tax profit to £215m, while revenue [...]
Bottom Line: Time is running out for turnaround plan March 19, 2014 SMITHS Group is on borrowed time. The only industrial conglomerate left in the FTSE 100, its shares have been buoyed by ongoing hopes that the five-division firm, whose diverse interests range from medical devices to engineering, would be broken up and sold off. The example of similarly diversified firm Invensys, which sold off its rail [...]