RBSmust sell off its investment bank December 3, 2009 IT now seems increasingly likely that the government is planning to launch a series of tax raids on the banks at next week’s pre-Budget report (PBR). The exact form they may take remains unclear; but I suspect that it is not only bankers that will be affected but everybody else deemed “rich”. We shall see [...]
Gold hits record highs December 3, 2009 Gold hit record highs of more than $1,225 an ounce yesterday as it continued to attract investors looking for an alternative to the dollar. The precious metal has risen by more than seven per cent since touching a low of $1,136.80 last Friday on fears of a possible default on debt in Dubai, which spurred [...]
Further financial pain in 2011 December 3, 2009 British households should brace themselves for greater pain in 2011 than 2010, as the brunt of the government's tax rises and spending cuts come into force, economists have warned. Capital Economics has predicted that the worst year of the fiscal squeeze will be in 2011. Most consumers will feel financially worse off as a result [...]
Standard Life backs M&B’s management December 3, 2009 One of Mitchells & Butlers’ largest institutional shareholders yesterday issued a public statement backing the firm’s management, which is facing a revolt from dissident shareholders. Mitchells & Butlers, led by chief executive Adam Fowle, sent documents to the takeover panel this week alleging that Bahamas-based billionaire Joe Lewis, who controls a 23 per cent stake [...]
Kraft to post its Cadbury bid December 3, 2009 KRAFT Foods will today post its offer document to Cadbury shareholders, triggering a two-month £9.8bn takeover fight, sources with knowledge of the situation said. The American food giant has until 7 December to publish its offer document, but the sources said it was expected today, and would be at the same cash and shares terms [...]
Property debt hits 30bn December 3, 2009 THE value of commercial real estate debt in default or in breach of key lending agreements more than doubled to about £30bn in the first six months of the year, according to a study. Banks have also extended or refinanced an extra £16bn in the first-half of the year, the report from De Montfort University [...]
Bernanke defends his post at the Fed December 3, 2009 FEDERAL RESERVE chairman Ben Bernanke staunchly defended his role as head of the US central bank in front of the Senate Banking Committee yesterday. He admitted the Fed could have done more to avoid the crisis but said that without the strong action taken, the consequences could have been markedly worse. The Senate is currently [...]
Selling bonds on the cards at the Bank December 3, 2009 IN WHAT has been interpreted as its first steps towards ending the £200bn quantitative easing (QE) programme, the Bank of England yesterday set out proposals to allow it to sell as well as buy corporate bonds in the secondary market.The Bank said: “The focus of the corporate bond secondary market scheme is to facilitate market-making [...]
ECB prepares for the exit as it unwinds crisis measures December 3, 2009 THE European Central Bank (ECB) announced yesterday it would start to unwind some of its monetary support for the Eurozone, although it gave no indication of when interest rates might start to rise. Speaking after the ECB’s monthly monetary policy meeting, President Jean-Claude Trichet outlined the plans for tightening. He confirmed that December’s 12-month liquidity [...]
US services industry contracts while growth in the UKslows December 3, 2009 THEservices industry in America unexpectedly contracted in November, while growth in the services sector in the UK eased.The US ISM non-manufacturing survey posted a reading of 48.7, below the 50 point that separates growth from contraction. This cast a cloud over the better news that has been emerging from the US jobs market over recent [...]