National Grid unveils £3bn rights issue May 20, 2010 UTILITIES giant National Grid yesterday shocked the market by revealing plans to tap investors for £3.2bn to keep up with investment demands in a rapidly-changing energy landscape. The firm will issue 2 new shares per 5 existing shares, at a price of 335p – a 43.7 per cent discount to Wednesday’s closing price. Shares in [...]
National Grid May 20, 2010 INVESTORS like certainty, something National Grid yesterday failed to provide making it the biggest falling stock on the FTSE 100. Having previously denied the need for a rights issue, the energy company now says it needs a hefty £3.2bn one to help it finance a £22bn investment in replacing ageing infrastructure and to maintain its [...]
Investec profits rise on asset management push May 20, 2010 SOUTH African bank Investec has seen profits rise 11.3 per cent over the past year despite the challenging environment, with a flood of impairments at its private banking arm offset by a drive to improve its less risky asset management business. Investec posted a pre-tax profit of £409.9m for the year to end of March, [...]
Much to please City but doubts remain May 20, 2010 WHEN George Osborne delivered his first major speech earlier this week, he ended on an upbeat note. He said there was lots the City should be proud of – “pensions, insurance… accountancy and legal services” – but one industry was notable by it’s absence. Yep, you guessed it: banking is still persona non grata, public enemy [...]
HOW THE AGREEMENT AFFECTS THE CITY May 20, 2010 BANKING • The coalition has agreed to impose some kind of levy on the banking industry, although its exact form has yet to be decided. The Tories want to introduce a fee on banks’ wholesale funding, while the Liberal Democrats would prefer a tax on profits. • There is a vague commitment to tackle “unacceptable [...]
Clothes push retail sales up 0.3pc in April May 20, 2010 IMPROVING clothing and department store sales offset flat food sales to push British retail revenues slightly higher than expected in April, according to the Office for National Statistics. Including petrol and diesel, high street sales rose 0.3 per cent last month, above analysts’ forecasts of 0.2 per cent and up 1.8 per cent year-on-year. The [...]
CITY VIEWS: ARE YOU SPENDING MORE? May 20, 2010 DAVID KESBY | KESBY & COMPANY “I am spending more because business is better and I am more confident than I was a year ago when my business went through a dip. Although the retail index is up, consumer confidence is still wavering because there are still fears of a double dip.” DAVOR LALIC | [...]
Profits rise as Post Office eyes sell off May 20, 2010 ROYAL MAIL boosted its full-year operating profit 26 per cent yesterday, while its unions reacted angrily to Lib-Con plans to inject private cash into the state-owned operator. The company raised its operating profit by £83m to £404m last year despite a series of strikes by postal workers last autumn. The business put its improved performance [...]
SEC continues to hunt for 6 May flash crash cause May 20, 2010 FRUSTRATED lawmakers yesterday pressed regulators to move faster to pinpoint the cause of the mysterious 6 May market crash, known as the “flash crash”. Both the Securities and Exchange Commission and the Commodity Futures Trading Commission told a Senate banking committee, working on a joint report, admitted yesterday that they had yet to find a [...]
BP accused by US of cover up May 20, 2010 The US government yesterday accused energy giant BP of falling short in the information it has provided about the Gulf of Mexico oil spill, in a clear sign of Washington’s growing frustration with BP’s handling of the spiralling environmental disaster.