Obama shouldn’t break up the banks January 21, 2010 BARACK Obama might be planning to limit the size of investment banks and the risks they can take on, but those who support a newer version of the legislation that emerged in the Great Depression – such as the now-defunct Glass Steagall Act – should take note: If the recent glut of US bank earnings [...]
Ad revenues help Google to buck slump January 21, 2010 Google yesterday said its revenues had increased by 17 per cent between October and 1 December, showing the internet search giant is weathering the advertising recession. “Given that the global economy is still in the early days of recovery, this was an extraordinary end to the year,” said Google chief executive Eric Schmidt. But shares [...]
AmEx and Capital One see profits lift as spending surges January 21, 2010 Two of the US’s largest credit companies yesterday reported rebounding profits, raising hopes the American consumer is spending again. American Express yesterday reported profits for the last quarter of 2009 had quadrupled thanks to increased consumer spending and reduced losses on defaults. The credit card lender and payment network beat forecasts by posting net income [...]
Banks consider legal challenge to government’s bonus supertax January 21, 2010 A GROUP of banks including Royal Bank of Scotland has hired City law firm Clifford Chance to explore a legal challenge to the government’s 50 per cent bonus windfall tax. The Global Financial Markets Association, which counts RBS, Goldman Sachs and Credit Suisse among its members, is examining the legal route as well as a [...]
LSE loses out as rivals steal market share January 21, 2010 TRADING on the London Stock Exchange (LSE) has plunged with new rivals like Chi-X Europe snapping at its heels, sending the company’s revenues down nine per cent to £154.9m. The LSE has seen its share of trading of FTSE 100 stocks drop to 64 per cent last month from 78 per cent a year earlier. [...]
Fresh cull at Lloyds hits 585 January 21, 2010 Lloyds Banking Group is to cut another 585 jobs by March next year as part of changes to its wholesale and retail divisions. The bank – which unions say cut more than 15,500 jobs in 2009 as it tried to reduce costs following its merger with HBOS in 2008 – yesterday said 455 jobs would [...]
FSA cracks down on poor client asset management January 21, 2010 SOME insurance brokers and investment firms are failing to properly safeguard clients funds and could face regulatory penalties, the Financial Services Authority (FSA) said yesterday. The City watchdog has written to all major insurance brokers and investment firms to express concern over the handling of clients’ money and assets, and has already referred two firms [...]
ANALYST VIEWS: IS COMPETITION KILLING THE LSE? January 21, 2010 NESE GUNER | NOMURA We were pleasantly surprised by the announcement of further cost cuts. Going forward, we expect further positive newsflow in regards to both cost reductions and organic/inorganic growth initiatives. While these bode well for long-term prospects, we did note that management stated that market conditions would remain testing over the near term. [...]
Hershey bows out of race to win Cadbury January 21, 2010 HERSHEY yesterday conceded defeat in the battle to win Cadbury, admitting the recommended bid of 840p per share, plus a 10p dividend, is too high for it to top. The decision follows a unanimous vote by Hershey’s board of directors late on Wednesday against a competing offer. The decision by Hershey was widely expected. “It [...]
EasyJet expects profits to surge on soaring passenger numbers January 21, 2010 EASYJET yesterday forecast a “substantial” improvement in full-year profit as revenues and passenger numbers increase. First quarter revenues jumped by 10.5 per cent to £607m ($982m) at the low cost airline. Passenger numbers jumped by nine per cent to 11m. Easyjet said it managed to operate 90 per cent of its flights in December, despite [...]