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City A.M. Content

  • Labour rejects recommendations to overhaul benefits for under 25s

    November 20, 2013

    The Labour party has distanced itself from a report which calls for, among other things, overhauling out-of-work benefits for the under 25s. The influential Institute for Public Policy Research (IPPR) on Wednesday published the report "No more NEETs: A plan for all young people to be learning earning." The report made three key recommendations which [...]

  • Just four commuters use Boris’ £60m Emirates Airline cable cars

    November 20, 2013

    One of London's great white elephant projects – the Emirates Airline cable cars – were used by just four regular commuters in the week from Saturday 13 October. With a capacity of 2,500 people an hour, the link between the O2 in Greenwich and the ExCel centre at the Royal Docks operates well below that [...]

  • UK mortgage lending hits five year high

    November 20, 2013

    Gross mortgage lending in October has risen to £17.6bn according to Council of Mortgage Lenders (CML) data. This represents an increase of 36.6 per cent year-on-year and nine per cent month-on-month and was the highest monthly gross mortgage lending seen since October 2008. The housing market is being supported by improving consumer confidence, increasing employment [...]

  • Diageo quenches thirst for bourbon with new premium brands

    November 20, 2013

    Alcohol giant Diageo has said it does not need to buy spirits producer Beam Inc and is set to launch two new premium bourbon brands, Orphan Barrel and Blade & Bow. Commenting on whether Diageo would seek to acquire the maker of Jim Beam and Maker's Mark, chief executive of officer, Ivan Menezes said, "we [...]

  • Bankers explain difficulties of outside-in valuations as their Royal Mail figures vastly outstrip £3.3bn sell-off price

    November 20, 2013

    Some interesting stuff is coming out of the BIS select committee, where a panel of MPs is grilling the invement banks involved in the sell-off of Royal Mail. Details from the banks not selected to run the flotation have been garnered. A quick reminder, because the bankers have not made it clear: Some of the [...]

  • Bank of England may keep rates low even if unemployment threshold is reached

    November 20, 2013

    Minutes from the Bank of England November Monetary Policy Committee meeting reiterate that the Bank believes there may be a case for not raising rates immediately after unemployment falls to the seven per cent threshold rate – the seven per cent is a marker, not a trigger. A scan of the minutes shows no fundamental [...]

  • UBS downgrades Royal Mail to “sell” as panel of MPs begin grilling bankers on sale

    November 20, 2013

    UBS analysts have downgraded their recommendation for the Royal Mail, advising clients to "sell" shares in the postal service. UBS, one of the banks that ran the flotation of the company, recommends selling on valuation grounds, with a target of 450p. Shares have surged over 60 per cent since they were sold, but UBS now [...]

  • GSK Aspen sale raises pharma giant £429.5m

    November 20, 2013

    GlaxoSmithKline (GSK) said this morning that it has completed the partial sale of its stake in Aspen Pharmacare, Africa's largest drug company, earning R7,059m (£429.5m) for the UK pharma firm. (Release) The net proceeds of the transaction, which is for around six per cent of GSK's stake in Aspen, will be used for "general corporate purposes". [...]

  • Royal Mail rival lands 63 per cent profit increase

    November 20, 2013

    UK Mail group has reported 63 per cent increase in half year pre-tax profits. The private postal company reported profit before tax of £11.9m and post tax profit of £9.3m. The improving economy and rises in parcel revenue were major factors contributing to the company's bumper profits. Group revenues reached £243.4m compared with £225.7m, in [...]

  • Police search house of Co-op’s Crystal Methodist

    November 20, 2013

    Police have searched the property of former Co-op Bank chairman Paul Flowers. The Methodist minister dubbed the "Crystal Methodist" after being filmed allegedly buying a number of illegal substances, Flowers has since been suspended as a minister. "Officers executed a search warrant … as part of their investigation into alleged drugs offences arising from a [...]

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