S&P takes Pru off credit watch after strong results August 17, 2010 RATING agency Standard & Poor’s has rewarded Prudential for its forecast-beating results and better-than-expected costs on the failed AIA deal by removing it from “credit watch”. S&P put the insurance giant on notice in March due to concerns over the balance sheet strains involved in its $35.5bn (£22.8bn) pursuit of AIG’s Far Eastern arm. Yesterday [...]
Barclays could face prosecution after judge derides £190m settlement offer August 17, 2010 BARCLAYS is nervously awaiting the outcome of a legal case in the US today that could leave the banking group facing criminal charges over payments linked to countries barred from trading with the States. A federal judge, who will decide whether to accept Barclays’ $298m (£190m) offer to settle the case, called the bank’s agreement [...]
ANALYST VIEWS: WHAT DOES THE FUTURE HOLD FOR GARTMORE NOW THAT ITS STAR PORTFOLIO MANAGER HAS LEFT? August 17, 2010 KEITH BAIRD | ORIEL SECURITIES In my view, Rambourg wasn’t Gartmore’s star trader – Roger Guy is the real star. With regard to the future, there is still scope for future outflows because of the whole debacle, though they are tapering off somewhat and that’s a good sign. PETER HOWARD | EDISON INVESTMENT RESEARCH It [...]
Melrose reports profits surge August 17, 2010 Scottish oil and gas producer Melrose Resources increased first half pre-tax profit by 32 per cent. The firm posted a $26.2m (£16.7m) profit compared with $19.8m in the first half of 2009. Revenue increased 13 per cent to $110m from $97.5m, largely driven by a steady rise in oil prices. The group, which has operations [...]
Flight Options out of business August 17, 2010 Budget travel firm Flight Options ceased trading last night, affecting more than 70,000 holidaymakers who had trips booked with the firm. The Civil Aviation Authority (CAA) said that approximately 13,000 Britons abroad through the company, mostly through its biggest flight operator Kiss Flights, will get home as normal. Those with Flight Options bookings up to [...]
Cowdery eyes third project as profits leap August 17, 2010 ENTREPRENEUR Clive Cowdery has begun sounding out potential sellers of assets for a third consolidation project after Resolution beat expectations with a £139m first-half profit. Cowdery, who banked a fortune of millions of pounds from the first incarnation of his insurance buyout vehicle, has held talks with both open and closed life companies in the [...]
RESOLUTION August 17, 2010 WHEN it comes to insurance, size matters and that’s the strategy Resolution is betting the farm on. After buying two insurers – Friends Provident and most of Axa’s UK life operations – it is clear that it’s now hunting down its next prey. The question for investors is whether Resolution, founded by insurance entrepreneur Clive [...]
Builders miss out on £6bn of school projects August 17, 2010 BUILDERS have already lost out on more than £5.7bn worth of work after Britain slashed investment in new schools and Balfour Beatty is most exposed to the cutbacks, Reuters research shows. A survey of the 26 local authorities worst hit by a decision to freeze the last government’s £55bn Building Schools for the Future (BSF) [...]
GM set to go ahead with a $20bn float August 17, 2010 GENERAL?Motors (GM) is poised to press ahead with one of the biggest ever IPOs, raising an estimated $20bn (£12.8bn). The momentous flotation of one of the most recognisable US firms will see the government begin to loosen its grip on the troubled carmaker. The initial prospectus was filed yesterday with the Securities and Exchange Commission, [...]
Rok’s accounting woes halve profits August 17, 2010 ROK, the troubled building and maintenance group, posted a 50 per cent fall in first-half pre-tax profit and cut its dividend yesterday. The Exeter-based firm issued its second profit warning in four months last week after saying it had discovered “serious mismanagement” of contracts in its plumbing, heating and electrical business. The firm, one of [...]