Libor rises on EU debt worries May 16, 2010 Fears that European banks could be exposed because of Eurozone debts has increased banking lending fees. The London inter-bank offer rate, known as the Libor, has risen to its highest level since August, even though central banks have not tightened monetary policy. Economists blame the recent rise on fears the agreed EU bailout will not [...]
London rights issues fall to zero May 16, 2010 No company listed on the London Stock Exchange held a rights issue in the first quarter, according to research by Trowers & Hamlins. The three months to March was the first quarter without a cash call since the credit crunch bit in the third quarter of 2007, indicating the urgent need for funds to repair [...]
Lower renminbi “would hurt US” May 16, 2010 The chief economist for the World Bank has said that if China were to revalue its currency it would actually hurt rather than help the US economy. Speaking on China’s role in the world economy, Justin Yifu Lin said critics who claim an intentionally undervalued Chinese currency is a hampering US growth are wrong. Lin said [...]
German call for fiscal law May 16, 2010 GERMANY is keen for other Eurozone countries to adopt a version of Berlin’s balanced budget law after economists voiced concern over Greece’s ability to repay its huge debt. Germany’s fiscal constraints – known as Schuldenbremse – will prohibit the federal government from running a deficit of more than 0.35 per cent of the gross domestic [...]
Europe should have allowed Greece to default May 16, 2010 THE vested interests have won the battle against the taxpayers in the Greek debt crisis. The risks of Greek profligacy are now spread around EU citizens. They will either bear the costs of default directly or, if the Eurozone inflates its way out of the problem, through the imposition of an inflation tax on holders [...]
BP not helped by Hayward’s silly slip-ups May 16, 2010 SOMEWHAT excruciatingly, BP boss Tony Hayward decided to downplay the volume of oil leaking into the Gulf of Mexico over the weekend. His tactic has not been universally applauded as the oil giant struggles to maintain a clean reputation. Hayward argued that the “amount of volume of oil leaking into the Gulf, is tiny in [...]
BP May 16, 2010 IT doesn’t rain it pours. Or in the case of BP, it spills. The situation facing the oil major goes from bad to worse. Chief executive Tony Hayward, initially credited with changing the firm’s reputation in the wake of the Texas oil refinery explosion, limps from one public relations disaster to the next. Analysts from [...]
Investors may flip homes to avoid taxes May 16, 2010 FLIPPING is set to become the norm amongst second homeowners, say tax experts, as they look to avoid paying the government’s planned increase in capital gains tax. “Flipping homes is a real possibility for second home investors and is one way of avoiding capital gains tax,” said John Whiting, president of the Chartered Institute of [...]
Buyout houses bring in help for £2.5bn RBS unit May 16, 2010 AMERICAN EXPRESS and Permira, the buyout house, are understood to have joined forces to bid for Royal Bank of Scotland’s £2.5bn payment processing unit. Vying with them for the asset is a team comprising French IT group Atos Origin and private equity operators CVC Capital Partners and Welsh Carson Anderson & Stowe. RBS’ Global Merchant [...]
Stelios set to launch battle with easyJet May 16, 2010 A BITTER dispute between Sir Stelios Haji-Ioannou and budget airline easyJet escalated over the weekend after it emerged that the easyGroup owner plans to campaign shareholders to join his revolt against the airline’s fleet expansion plans. Haji-Ioannou is meeting this week with some of the airline’s largest shareholders, including Schroders, Standard Life and Capital Research, [...]