BY TORY CUTS MUST GO FURTHER, SAYS CITY October 6, 2009 ECONOMISTS yesterday welcomed Tory plans to cut public spending by £23bn over the next parliament, but warned that the party would need to make much deeper cuts to plug the massive budget deficit. Speaking at the Tory party conference in Manchester, shadow chancellor George Osborne set out plans to shave £7bn a year from existing [...]
Gold surges as traders ditch dollar October 6, 2009 THE PRICEof gold surged to an all-time high of over $1,040 a troy ounce yesterday, as falls in the USdollar caused investors to go on the hunt for alternatives. A surprise interest rate rise in Australia contributed to the US currency falls, as the higher yields on offer Down Under caused traders to ditch the [...]
Economy flat in UK but… October 6, 2009 BRITAIN’S economy failed to expand in the third quarter of 2009, a leading think tank forecast yesterday, dashing hopes that the UK would start to experience modest growth. The National Institute for Economic and Social Research (NIESR) said that the disappointing figures were because of much weaker than expected industrial production in August. Figures from [...]
Osborne’s cuts are merely the first step October 6, 2009 IT was Philip Hammond, the Tory shadow chief secretary to the Treasury, who put it best last night. He readily explained that the package of spending cuts and reforms outlined by his party yesterday were only a start and that there would be more to come. His frankness came as something of a relief after [...]
SocGen ready to repay aid October 6, 2009 SOCIETE Générale launched a €4.8bn rights issue yesterday as it seeks to repay €3.4bn (£3.1bn) worth of state aid and build a war chest for possible acquisitions. The bank joined French rival BNP Paribas in seeking to exit government support, saying that the cash call would allow it to pursue “external growth opportunities”. However, SocGen [...]
…FTSE gains 2.3 per cent October 6, 2009 BRITAIN’S top share index closed 2.3 per cent higher yesterday – its biggest gain since mid-July – as heavyweight commodity and bank issues rallied on renewed hopes over the gathering pace of the global economic recovery. At the close, the FTSE 100 was up 113.65 points at 5137.98, after closing 0.7 percent higher on Monday. [...]
Treasury appoints Alastair Clark October 6, 2009 The Treasury has announced the appointment of ex-Bank of England director Alastair Clark as senior adviser on financial stability issues, working two days a week. Clark has worked at the BoE since 1971, in a variety of roles, including executive director of financial stability and adviser on the financial sector to the governor Mervyn King.
Pepsi bottling profit fizzes October 6, 2009 Pepsi Bottling Group reported a slightly-better-than-expected quarterly profit yesterday, but revenue fell short of Wall Street estimates, hurt by lower volume in the United States, Canada and Europe. Pepsi Bottling said net income rose to $254m (£160m), or $1.14 per share, in the third quarter, from $231m, or $1.06 per share, a year earlier. Net [...]
Brammer launches rights issue October 6, 2009 The industrial services group Brammer said yesterday it would raise £38.3m from a rights issue to reduce debt. The company said its current trading was in line with expectations. It plans to issue 53.1m shares at 72p. The issue is at a 57 per cent discount to its Monday closing price of 167.5p. Brammer, which [...]
Tesco beats forecasts with 1.4bn profits October 6, 2009 TESCO chief executive Sir Terry Leahy yesterday said that the UK was “past the low point” of the slump as he unveiled bumper profits and sales. Britain’s biggest retailer said that group sales had jumped 8.3 per cent to £30.4bn during the 26 weeks to 29 August – meaning the giant supermarket chain was ringing [...]