FSA BOSS SANTS TO GO DOWN FIGHTING July 23, 2009 HECTOR Sants, boss of the embattled Financial Services Authority, yesterday launched a robust defence of the City’s existing regulatory structure in defiance of Tory proposals, fuelling talk that he is preparing to step down within the next few months. City sources told City A.M. Sants will retire from the regulator either before or when his [...]
GLOBAL MARKETS SURGE ON STRONG EARNINGS AND DATA July 23, 2009 INVESTORS were cheered yesterday as stocks on both sides of the Atlantic made healthy gains on largely positive corporate and economic news. In the UK, the FTSE 100 rose for a ninth day in a row by 1.5 per cent to 4,559.80, the highest closing level since early January. It was the longest winning run [...]
Water firms hit by Ofwat July 23, 2009 SHARES in utility companies dropped yesterday after water regulator Ofwat ordered firms to reduce household bills by four per cent over the next five years, potentially denting profits massively. Analysts warned that Ofwat’s price limits combined with new requirements on infrastructure spending would see dividends slashed across the sector. Water firms had hoped to raise [...]
Things are still bad but not disastrous July 23, 2009 WE will know this morning by how much the British economy shrank in the second quarter. The good news, if one can call it that, is that the official figures will confirm that after falling off a cliff in the first quarter, economic output fell by much less in the subsequent three months. And although [...]
BA and Unite talks fail July 23, 2009 TALKS between British Airways and union Unite over cost savings and redundancies broke down last night. The two sides, battling over an agreement to cut thousands of jobs and freeze pay, must now abide by a 14-day cooling off period, during which there is no communication between them. BA wants staff to accept a two-year [...]
WHAT THE OTHER PAPERS SAY THIS MORNING July 23, 2009 FINANCIAL TIMES Ericsson joins fight for Nortel wireless unitEricsson has joined the battle for control of Nortel Network’s core wireless division in a move that pits it against Nokia Siemens, one of its biggest European rivals, and MatlinPatterson, a US private equity fund. The flurry of interest, ahead of today’s planned auction of the assets, [...]
Pearl overhaul to get green light July 23, 2009 Pearl Group is expected to get the go-ahead for its capital restructuring from investors in Liberty Acquisition, the vehicle which is putting around ¤600m (£519m) into the company. Liberty, a special purpose acquisition firm in Amsterdam, will count votes on the deal at an extraordinary meeting today. Liberty fell into difficulty after overstretching itself by [...]
Five slashes budget by a quarter July 23, 2009 Terrestrial TV broadcaster Five has slashed its programming budget by 25 per cent in a reaction to the slide in advertising. In what is to be the biggest reduction of any big British station, Five has cut the budget by £55m to £165m this year. Dawn Airey, the executive chairman, said yesterday that consolidation among [...]
First drop in revenue for Microsoft July 23, 2009 SOFTWARE giant Microsoft yesterday posted its first drop in revenue since it went public in 1986, after it was hit by the global downturn and falling sales of its key products. The world’s biggest software firm said revenue for the three months to the end of March was $13.65bn (£8.3bn), a drop of six per [...]
Banks warn against protectionist reform July 23, 2009 GOVERNMENTS and regulators across the world are risking a push towards protectionism in their efforts to shore up the banking system and financial markets, a group of bankers warned yesterday. A report from the Institute of International Finance, which was written by officials from Deutsche Bank and JP Morgan Chase said that governments must develop [...]