Splits and drama are back at the Bank August 19, 2009 MEETINGS of the Bank of England’s Monetary Policy Committee have become interesting again. After months of near perfect harmony on the committee – not even Danny Blanchflower could argue with holding interest rates at 0.5 per cent, for heaven’s sake – at last there is tension. In the biggest split since April last year, three [...]
WHAT THE OTHER PAPERS SAY THIS MORNING August 19, 2009 FINANCIAL TIMES INVESTCORP REPORTS FIRST LOSSInvestcorp reported its first annual loss in its history after the London and Bahrain-listed investment group suffered big falls on its hedge fund investments and heavy writedowns at its private equity and real estate arms. The company, which made its name investing in retailers Gucci, Tiffany and Saks Fifth Avenue, [...]
AIG faces Madoff action August 19, 2009 BATTERED insurer AIG has been hit with a class action lawsuit in connection with Bernard Madoff’s $60bn (£36bn) Ponzi fraud. A wealthy couple who lost out in the scandal are accusing AIG of “calculated efforts” to redefine the terms of insurance contracts to get out of coughing up to cover their losses. The couple, Robert [...]
Qantas sees profits plunge August 19, 2009 Qantas Airways, the Australian flag carrier, posted an 88 per cent fall in its annual profit to A$117m (£58.5m) yesterday, as it continues to struggle in the economic downturn. The airline said it would not pay a dividend, and added it would not offer any guidance on its profit for the year “given the high [...]
BBVA favoured to buy US bank August 19, 2009 Banco Bilbao Vizcaya Argentaria (BBVA), Spain’s second-largest bank, is expected to win a government-run auction of troubled Texas lender Guaranty Financial Group, sources familiar with the situation said yesterday. A deal would help BBVA build on its US operations after a 2007 purchase of Alabama-based Compass Bank.
EMI trustee head leaves firm August 19, 2009 The chairman of the trustees of EMI Ian Smellie left the music label’s £1bn UK pension fund as a result of a row with Guy Hands, whose private equity firm Terra Firma owns the business. Smellie wanted a £170m top up to the pension pot, but Hands refused.
UBS releases client details in US tax row August 19, 2009 IN AN unprecedented deal Swiss bank UBS has agreed to surrender 4,450 client names to US investigators after a year-long probe by the Internal Revenue Service (IRS). The accounts, some of which have since been closed, held an estimated $18bn (£11bn) at one point. The agreement follows a battle by the IRS to prosecute suspected [...]
Gold loses its shine as the demand for jewellery falls August 19, 2009 GOLD demand fell to its lowest in six years in the second quarter, the World Gold Council said yesterday, as the global downturn hit jewellery consumption and electronics producers’ buying demand. Demand worldwide fell nine per cent in the period to 720 tonnes, the lowest since the first quarter of 2003. Consumption of jewellery dropped [...]
Strike resolved, RMT union says August 19, 2009 The Rail, Maritime and Transport Union (RMT) said yesterday the issue of job cuts on London Underground (LU), which led to a 48-hour strike in June, has been resolved. The RMT said it was a “major victory” as the strike action had saved its members from compulsory redundancies. LU disputed RMT’s claims, saying it had [...]
Venture eyes up acquisitions August 19, 2009 Oil company Venture Production touted the possibility of launching a field buying spree yesterday, as it fights off a $2bn (£1.6bn) hostile takeover bid from Centrica, as it announced a one per cent drop in first-half profits. Venture said that “large asset packages” may come onto the market in the coming year as the international [...]