CITY VIEWS: CAN WE ATTRIBUTE THE RISE IN CAR SALES TO AN IMPROVEMENT IN CONSUMER CONFIDENCE ABOUT THE ECONOMY? November 5, 2009 JAMES NOYCE ACCENTURE“The figures surprise me – I wouldn’t have thought people were up for buying new cars at the moment. I think the rise is more down to the scrappage scheme than an increase in confidence because people are concerned the UK is lagging behind Europe in terms of recovery.” ABROR ABDULAZIZOV PRUDENTIAL“No, I [...]
Slow recovery and limited credit behind QE extension November 5, 2009 A SLOW economic recovery and the likelihood that credit will remain limited as banks repair their balance sheets were behind the Bank of England’s decision to extend quantitative easing (QE) by £25bn yesterday. The Bank said stimulus measures were still working their way through the economy from the substantial easing in monetary and fiscal policy. [...]
DOES THIS MARK AN END TO THE POLICY OF QUANTITATIVE EASING? November 5, 2009 PHILIP SHAW INVESTEC“The schedule suggests that the operations should cease in the run up to the February MPC meeting, which means there will be some tapering off in QE. We will learn more in the MPC minutes (due 18 November), and while we are keen not to rule anything out, we suspect that this will [...]
UK factories see rebound November 5, 2009 MANUFACTURING output rose at its fastest pace since July 2002 in September, returning to growth after a sharp drop in output in August. Data from the Office for National Statistics (ONS) showed that factory output rose 1.6 per cent on August’s downwardly-revised two per cent contraction. But output is still 10.5 per cent lower than [...]
Eurozone rates on hold but ECBpaves the way for exit strategy November 5, 2009 INTEREST rates were kept on hold at one per cent yesterday in the eurozone but a more upbeat European Central Bank (ECB) cheered markets. ECB President Jean-Claude Trichet said there had been some improvement in the economic situation but stressed the need to remain prudent and cautious. He said that while data was more positive, [...]
Thomson Reuters beats expectations November 5, 2009 FINANCIAL news and data publisher Thomson Reuters said yesterday its third-quarter sales fell but that its profits beat Wall Street estimates. The group said that revenue in its markets division, which serves the financial industry, fell four per cent to $1.86bn (£1.1bn) in the period. Revenue from ongoing businesses, excluding the impact of foreign exchange [...]
ITV lifted by recovery and hiring hopes November 5, 2009 SHARES in ITV soared yesterday after the commercial broadcaster forecast an upturn in advertising revenue, and ex-City financier Bob Wigley was said to be in pole-position to take over as its new chairman. In a surprise market update, the troubled broadcaster forecast a four per cent rise in net ad revenue (NAR) for December, as [...]
WE’RE NOT OUT OF THE WOODS YET November 5, 2009 THE City was bitterly divided last night over the wisdom of the Bank of England decision to extend its quantitative easing (QE) policy by a further £25bn to an eye-watering £200bn. But commentators were united in interpreting the Monetary Policy Committee’s (MPC) extension to QE as a clear sign it believed the economy is not [...]
HESTER TOLD TO OFFLOAD HOARE GOVETT November 5, 2009 ROYAL Bank of Scotland (RBS) boss Stephen Hester is facing calls to sell off one of the crown jewels in its empire, corporate broking house Hoare Govett, amid concerns new rules on bonuses at the group will irreparably damage the bank’s competitiveness. Rival City bankers last night claimed the future of RBS’s investment banking business [...]
Strikes at Royal Mail called off November 5, 2009 THE latest round of postal strikes, which have plagued Britain for the past month, were last night called off at the eleventh hour. However, the dispute between unions and management over modernisation of the Royal Mail, the main motivation for the industrial action, remains unresolved. The postal service is cutting jobs and pay as it [...]