BIS:low rates increase risk December 7, 2009 KEEPING interest rates low could encourage banks to take bigger risks, according to a study published by The Bank for International Settlements (BIS) yesterday. Its latest quarterly report into 600 listed EU and US banks said there was evidence suggesting that the risk of loan defaults “shot up” when interest rates remained low for long [...]
BEST OF THE BROKERS December 7, 2009 GAME GROUPSinger said it was expecting to see an improvement in trade over the most recent period for Game Group, despite a rather disappointing summer in terms of new software releases. It suggested declines of mid to high single digits in that period, and said performance over the final eight weeks will be key to [...]
Petropavlovsk is only group set to join bluechip FTSE 100 index December 7, 2009 GOLD producer Petropavlovsk, formerly Peter Hambro Mining, is expected to be the only company promoted to the FTSE 100 index when the latest quarterly indexes review is announced tomorrow. Tour operator Thomas Cook Group looks set to be demoted back to the mid caps after a poor run by its shares with the sector hit [...]
Dubai World to sell off overseas assets December 7, 2009 THE Dubai government has confirmed it will not sell any assets to help state-controlled Dubai World meet its debt repayments, while the company’s prize assets will be ring-fenced. The beleaguered conglomerate last week asked creditors for a six-month grace period while it restructured its $26bn (£15.5bn) debt pile. The payment standstill was announced on 25 [...]
Red Flag opens to the public December 7, 2009 Begbies Traynor, the insolvency and recovery specialist, will launch its Red Flag Alert system as a commercial tool to allow companies to measure the financial health of their customers and competitors. Until now, Red Flag Alert has been used internally by Begbies and for media houses to assess the corporate landscape in the UK. It [...]
Aer Lingus November traffic up December 7, 2009 Irish airline Aer Lingus said yesterday that the number of passengers travelling with it for long-haul flights last month was 25 per cent lower than in the same month last year. But overall passenger numbers were up by nearly 5 per cent. The airline also said its November traffic decreased 6.4 per cent to 1.08bn [...]
FORMER MERRILL LYNCH STAFFERS HERALD A TRIUMPHANT BULL RUN December 7, 2009 BANK of America’s integration with fellow banking scion Merrill Lynch might have been fraught with difficulty over the course of the past year, but it seems the powers that be are finally learning the art of tactful compromise. After Merrill’s beloved bovine logo appeared to have been dropped by BoA in favour of a new, [...]
EU seeking tighter rules and new growth model December 7, 2009 Europe needs a new growth model and tighter regulation to prevent another meltdown, said incoming EU internal market commissioner Michel Barnier yesterday. The former French agriculture minister said the financial crisis meant “more governance and regulation where needed,” adding, “obviously times are different now.” “Faced with the exit from the crisis that we’re trying to [...]
CITY VIEWS: IS LONDON STILL THE WORLD’S LEADING FINANCIAL CENTRE? December 7, 2009 ELLIOTT PERRY RK HARRISON“London is still at the top of the game as a financial centre. Technology is developing all the time, which drives people to come and work here. As long as the downturn doesn’t hit development in that area, London will remain competitive.” SAM WARD MARSH“There is real expertise in London – it’s [...]
Shanks asks for 10 per cent more after offer December 7, 2009 WASTE management firm Shanks Group revealed a £536m buyout approach yesterday, sending its shares soaring, but said its board and key shareholders were looking for at least 10 per cent more. Shanks did not name the company behind the approach but a person familiar with the matter said it was the Carlyle Group, the well-connected [...]