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Economics

  • Deutsche Bank’s investment arm is split in two as new boss John Cryan tries to reinvigorate the firm

    October 18, 2015

    Germany's biggest lender Deutsche Bank is overhauling its management and investment bank structure as new boss John Cryan tries to reinvigorate the company’s performance following a number of fines and shareholder dissatisfaction. Long-term management board member Stefan Krause is leaving his post along with Colin Fan, co-head of the firm's investment banking and trading unit. Asset [...]

  • UK Steelmaker Tata Steel expected to axe 1,200 jobs

    October 17, 2015

    Britain's biggest steelmaker, Tata Steel, is expected to cut around 1,200 jobs in what will be a huge blow to the industry, a union source told City A.M. Reports suggest the bulk of the cuts will be at Tata Steel's Scunthorpe site, which employs 4,000 people. However, the axe could also fall at sites in Clydebridge, Cambuslang, Dalzell and Motherwell. The news broke as [...]

  • HSBC chief executive Stuart Gulliver says China’s economy is unlikely to suffer a “hard landing” despite slowdown fears

    October 16, 2015

    HSBC chief executive Stuart Gulliver has said China is unlikely to have a "hard landing", despite mounting concern over the strength of its economy. "The fears for China's economy are overplayed. I do not believe China will have a hard landing," Gulliver said in a speech today. "The last few months have obviously been difficult… (But) the [...]

  • S&P: Impact of Bank of England and Prudential Regulation Authority’s ring-fencing on UK banks’ credit rating “limited”

    October 16, 2015

    Credit ratings agency Standard & Poor's (S&P) has said today that ring-fencing regulations will have a "limited" effect on one of the factors used to determine a big bank's credit rating.  Yesterday, the Bank of England's Prudential Regulation Authority outlined proposals for how big banks should separate their retail banks from their riskier investment arms. It's designed to help [...]

  • Here’s how much alcohol abuse and hungover employees cost the economy

    October 16, 2015

    Inebriated employees who opt to stay out on a school night can cost an economy billions. The US economy lost about $249bn (£160bn) in 2010 due to the effects of excessive alcohol consumption, with binge drinking accounting for $191.1bn, or 76.7 per cent, of this. This was due to lost productivity, healthcare and other factors such as crime. But the effect of a [...]

  • Map: UK house prices are still below 2007 peak in Wales, the North and southern Scotland – but have soared past them in London, Bristol, York and Manchester

    October 16, 2015

    London’s house prices may have surged well beyond the prices of the last property boom, but that’s hardly true of the whole country. Looking at average house prices today against what they were eight years ago shows prices are still below their 2007 peak in about half the country. The map of England, Scotland and [...]

  • Ministers, companies and unions descend on Rotherham for UK steel crisis summit

    October 16, 2015

    Ministers, representatives of producers and unions have descended on Rotherham for a crisis meeting over the UK's remaining steel industry. The summit comes a day after the final closure of the SSI steelworks in Redcar, announced last month, which caused the loss of 1,700 jobs.  The government said today's summit will address the "challenging conditions" facing the market, after [...]

  • London property prices: City rents rocketing as estate agent warns the only way is up

    October 16, 2015

    London rents reached a record high in September after rising 11.6 per cent over the last year, according to new figures released this morning, with agents warning that the only foreseeable trend is an upward one. Rental price growth in the capital was far higher in September than the UK average of 6.3 per cent, the [...]

  • Treasury’s U-turn plugs brain drain fears: City bosses welcome “reverse burden of proof” retreat

    October 16, 2015

    City bosses have welcomed the Treasury’s U-turn on controversial plans for a so-called “reverse burden of proof” for senior bankers, saying that the reversal will help the Square Mile retain and attract top talent. A leading City head-hunter told City A.M. that the Treasury’s initial proposals, which would have required bankers to prove they were unaware [...]

  • Could Crossrail be creating skills shortages in parts of Britain? Recruiter Randstad thinks so

    October 16, 2015

    Crossrail could be to blame for skills shortages in certain parts of Britain, according to a new report out today from Randstad CPE, the specialist recruiter. Randstad says that more than a quarter of Crossrail’s workforce is drawn from regions more than 30 miles away from the project, with one in 20 moving more than [...]

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