US could run out of money by 17 October September 25, 2013 THE US CONGRESS, already struggling to avert a government shutdown next week, turned its attention yesterday to the other fiscal bullet it had to dodge: a federal debt default. Republican leaders in the House of Representatives notified members that a vote on raising the debt limit could come as early as Friday. Treasury Secretary Jack [...]
JP Morgan in talks to settle probes for $11bn September 25, 2013 JP MORGAN Chase is in talks with US officials to settle federal and state mortgage probes for $11bn (£6.8bn), two people familiar with the matter said yesterday. The sum could include $7bn in cash and $4bn for consumers, said the sources, who asked not to be identified because the negotiations are private. The talks are [...]
Bonuses under threat as Icap is fined over Libor September 25, 2013 LONDON-BASED interdealer broker ICAP was yesterday fined £54m by US and UK regulators after 10 of its staff were involved in attempts to fiddle yen Libor from 2006 to 2011. The bill is expected in part to be paid by staff who will face a much lower bonus pool this year as a result. Three [...]
Mandelson says Miliband taking party backwards September 25, 2013 FORMER business secretary Lord Mandelson yesterday accused Ed Miliband of dragging the Labour party backwards with plans to freeze energy prices. Mandelson, widely seen as the architect of new Labour, lashed out after Miliband told the Labour Party conference he would impose a 20-month suspension of household fuel bills if he wins the next election. “As [...]
Energy providers: How easy is it to switch? September 25, 2013 CHANGING energy supplier is not an easy process, it can often take ample amounts of patience and perseverance, but consumers could all save money if they decided to change more often. As Chris Huhne said in 2011, “We should be switching if we’re not on the cheapest tariff.” Which? this week reported that UK consumers [...]
Q and A: What determines our gas and electricity bills? September 25, 2013 Q My electricity bills seem pretty steep. Are they higher in the UK than elsewhere? A In short – not really. Compared to the 15 countries that made up the European Union prior to the 2004 accession (known as the EU15), the UK had the fourth lowest prices in 2012 – when including taxes that [...]
HS2 under fire amid claims of hidden expense September 25, 2013 THE HIGH Speed 2 project will not fix the capacity problems on Britain’s rail network, a research paper out today claims. The Taxpayers Alliance (TPA) argues that putting longer trains on the existing West Coast Main Line would be a better value way to boost space on the route. It argues that there has been [...]
Network Rail chief to help get High Speed 2 plan back on track September 25, 2013 HIGH SPEED 2 has hired the outgoing head of Network Rail to try and steer the project through its latest political problems. Sir David Higgins, who led the Olympic Delivery Authority until he joined Network Rail in 2011, will join HS2 Limited for one day a week from January as he takes the chairmanship from [...]
UK offshoring may reverse as wage gap falls September 25, 2013 WITH the gulf in wages between the world’s advanced and developing economies getting smaller, a new report suggests that UK companies could re-shore some operations which were moved offshore. Research released today by PwC suggests that within two decades, wages in emerging economies will make up a huge amount of ground, while those in developed [...]
Top regulator to keep its eye on hedgie rate risk September 25, 2013 THE BANK of England’s new superregulator will keep a close eye on potential vulnerabilities at hedge funds and in the UK housing market, it said yesterday, despite playing down the risk of a housing bubble. Hedge funds may be particularly vulnerable to sharp upward movements in long-term interest rates, the Bank’s financial policy committee (FPC) [...]