King predicts more pain as growth dives August 14, 2008 Unemployment and inflation on the rise; growth, houses and sterling on the slide Bank of England (BoE) governor Mervyn King yesterday refuted claims he had lost control of the economy as the central bank issued its darkest assessment of the UK economy since it gained its independence in 1997. In its quarterly inflation report, the [...]
Jury out for interest rate August 13, 2008 Analysts were divided yesterday on what the unexpected leap in inflation would mean for the direction of interest rates. The 4.4 per cent annual inflation rate is more than double the Bank of England’s two per cent target. Normally such a sharp increase would lead to an automatic rise in official rates, but with the [...]
UBS rings the changes as it reports a loss August 13, 2008 UBS announced wholesale changes to structure and personnel yesterday, including a new chief financial officer, as it posted an interim loss of Sfr358m (£173m), bringing the curtain down on a dire results season for banks. The Swiss bank posted writedowns of $5.1bn on risky investments, mitigated by a tax credit of $2.8bn. It also took [...]
Sterling slumps as inflation surges to a 16-year record August 13, 2008 Today’s Bank of England quarterly report will slash UK economic growth forecasts A surge in inflation sent sterling tumbling to a 21-month low yesterday as City economists warned that the chances of recession are increasing. Consumer price inflation (CPI) jumped by 4.4 per cent in the year to July, fuelled by rocketing food and oil [...]
Tesco to open wholesaling chain in India August 13, 2008 Supermarket giant Tesco yesterday said it was pushing into India by launching a wholesale cash-and-carry business. At the same time it announced a deal with Indian titan Tata to help it expand its fledgling hypermarket business. Tesco will invest £60m in its wholesale business – which will supply Tata’s chain of food stores, as well [...]
China’s uncertain markets makes it a long term play August 13, 2008 The eyes of the world are on China this week, as the Olympics gets under way. Last year the Chinese stock market tried to break the high-jump record, as the Shanghai Composite hit its highest ever level in October – rising more than 400 per cent in two years. But this year, it seems to [...]
BP closes second pipeline in Georgia as conflict subsides August 13, 2008 British oil giant BP shut down the second of the three pipelines it runs through Georgia yesterday – hours after Russia ended military operations against the former soviet state. BP, part of a 10-strong consortium, that runs a series of pipelines from the Caspian Sea into Georgia, said it cut production in one pipeline as [...]
Property fillip for Mapeley August 12, 2008 Property outsourcing and investment firm Mapeley bucked the trend in the battered property market and saw its funds from operations (FFO) rise 129 per cent to £63.1m yesterday. The firm, which counts HM Revenue & Customs as one of its clients, posted the large rise in funds from operations – a key measure that demonstrates [...]
Record investment for private equity August 12, 2008 Private equity invested a record $686bn (£343bn) globally last year, over a third more than was invested in 2006, according to think tank International Financial Services London (IFSL). The UK buyout market is the most developed in the world, outside the US, managing nine per cent of global investments and 12 per cent of funds [...]
Smurfit profits rise despite higher costs August 12, 2008 Shares in Smurfit Kappa, the Irish cardboard packaging group, spiked yesterday after the firm reported better-than-expected results for the first half of the year. Operating profit at Smurfit Kappa, which floated in Dublin in March 2007, rose four per cent to €312m (£244m) despite rising energy costs and increased competition from US rivals benefiting from [...]