London and New York need each other July 21, 2008 Much fuss is made about the “lead” or “lag” that London shows vis-ą-vis New York in the financial and business sector. Whenever studies such as the Global Financial Centres Index report is published, many commentators pore over the tables to see by what degree London or New York is ahead. This misses the point: more [...]
Business confidence plummets July 21, 2008 Worsening economic conditions are taking their toll on business confidence in the capital, according to the latest Business in Britain survey. The study, from Lloyds TSB Commercial, revealed that firms’ optimism for the coming six months is lower than ever, with London-based companies hit hardest. The Business Confidence Index for July showed that the balance [...]
High oil price leads Ryanair to cut flights July 18, 2008 Europe’s largest airline Ryanair said yesterday it will cut flights at Stansted by 14 per cent, or 250 flights, this winter because of soaring fuel costs and high airport charges. The Irish carrier’s chief executive Michael O’Leary said the move will see it carry 900,000 fewer passengers and trim its Stansted fleet to 28 planes [...]
Fiscal rules to change July 18, 2008 Treasury officials are working on plans to reform Gordon Brown’s fiscal rules to allow for increased borrowing. The move comes as the government comes dangerously close to breaking its rules limiting public sector debt to 40 per cent of national income. Any changes are likely to be announced in the autumn pre-budget report, once the [...]
Surge in UK jobless July 17, 2008 Expectations that the Bank of England would keep interest rates on hold were heightened yesterday as official data revealed the number of people claiming unemployment benefit had surged by the highest monthly amount for 16 years. The Office for National Statistics said unemployment rose by 15,500 last month, after an upwardly revised 14,300 increase in [...]
Conti attacks banks July 17, 2008 German tyre maker Continental yesterday accused Royal Bank of Scotland, UBS, Credit Suisse and Merrill Lynch of helping motoring rival Scaeffler Group build up a 36 per cent stake by stealth, giving it significant traction in its unsolicited €11.2bn (£8.9bn) bid for the firm. Continental, which yesterday rejected the offer as too low, said that [...]
Ebay posts bumper earnings July 17, 2008 Online auctioneer eBay posted a 22 per cent rise in second-quarter net income to $460m (£230m) beating market forecasts and helped by further auction activity and a boosted sales from its PayPal secure payment unit. Revenue rose 20 per cent to $2.2bn. The company also said it bought back 19 million eBay shares worth $566m [...]
Merrill Lynch sells stake in Bloomberg July 17, 2008 Investment bank sells its 20 per cent stake in the media giant but keeps BlackRock US giants Merrill Lynch, today expected to reveal its fourth consecutive quarterly loss, has reached a deal to sell its stake in financial terminal and data provider Bloomberg for an estimated £2.2bn ($4.5bn). Merrill Lynch, which has a 20 per [...]
The perfect storm July 16, 2008 Higher than expected inflation figures and growing concerns about the banking sector knocked London’s FTSE 100 index of leading stocks down 2.4 per cent yesterday to under 5,200. The benchmark index has now fallen 23 per cent since a June 2007 high and is in clear bear market territory. Bank stocks, unsettled by fears that [...]
Inflation could hit 6 per cent on fuel bill price hike July 16, 2008 Inflation could reach 6 per cent by the end of the year if an anticipated 30 per cent hike in energy bills hits consumers later this year, according to BNP Paribas economist Alan Clarke. His prediction comes after the official consumer price index inflation rate jumped to a record 3.8 per cent in the year [...]