UBS agrees $50m settlement with US regulators over CDO fraud allegations August 6, 2013 UBS has agreed to pay $49.8m (£32.45m) to settle charges it misled investors in relation to a mortgage bond transaction structured in 2007 before the financial crisis (release). The US Securities and Exchange Commission (SEC) said the Swiss Bank was charged with violating securities laws while structuring and marketing a collateralised debt obligation (CDO) by [...]
Government agency pressures Osborne to sell off Lloyds stake August 6, 2013 The agency managing the taxpayer stake in Lloyds has said chancellor George Osborne could begin selling as soon as this week. UK Financial Investments (UKFI) reportedly cited the recent jump in share prices as the trigger for their recommendation. Shares rose as the bank returned to profit and then again on rumours it could begin [...]
Osborne urged to begin selling off Lloyds stake – but insiders say don’t expect action soon August 6, 2013 Part of the government stake in Lloyds Banking Group could be sold off imminently thanks to the recent surge in share prices, UK Financial Investments (UKFI) has told chancellor George Osborne. UKFI is the agency charged with managing the taxpayer stake in Lloyds Banking Group. Sky News, who first reported the story, cited sources in [...]
France unlikely to reverse unemployment trend by the end of the year, says economist August 6, 2013 Research firm Capital Economics has said it is doubtful that France will reverse its unemployment rate by the end of the year, despite recent improvements. President Francois Hollande said in his New Year’s address that he would do whatever it takes to reverse the unemployment trend by the end of 2013. It has since risen [...]
Germany needs to lead its fellow eurozone members away from uncertainty, says IMF August 6, 2013 The International Monetary Fund (IMF) has increased Germany’s 2014 growth forecast to 1.4 per cent from 1.3 per cent but is divided on whether the country requires more fiscal stimulus (release). The IMF said it agreed with the German government's prudent economic management and a modest loosening of fiscal policy to boost domestic demand, and [...]
Niesr sees UK GDP growth accelerate in three months to July powered by consumer spending August 6, 2013 The National Institute of Economic and Social Research (Niesr) has estimated UK GDP rose by 0.7 per cent in the three months ending in July after growth of 0.6 per cent in the three months ending June 2013. Niesr said their latest estimates suggest a narrowing of the UK's large negative output gap, underpinned by [...]
Another electric car maker finds crucial cost savings needed to drive this market forward August 6, 2013 General Motors has cut the price of its 2014 model of the Chevrolet Volt by $5,000 (£3,252) to boost demand for the electric car. Prices will start at $34,995, plus an $810 destination fee, although prices could fall as low as $27,495 if federal tax credits are taken into account (release). According to the United [...]
Political crisis in Portugal saw ECB support for banks hit highest level since 2012 August 6, 2013 The European Central Bank increased its lending to Portuguese banks to €50.1bn in July from €49.4bn in July – the highest since December. This was the month a political crisis gripped the country, triggered by the resignation of CDS-PP leader Paulo Portas from his post as foreign minister, and later reinstated as deputy prime minister. [...]
US trade deficit narrows to lowest since October 2009 – upwards GDP revision likely August 6, 2013 The US Bureau of Economic Analysis has said the country’s trade deficit narrowed in June, coming in at a lower than expected $34.22bn. This was down from a downwardly revised $44.10bn deficit the month before. Analysts had expected to see the trade deficit shrink slightly less drastically to $43.50bn. June's trade deficit was its lowest [...]
Fed’s Lockhart says he wouldn’t rule out tapering in October August 6, 2013 The Fed's Dennis Lockhart has said that he wouldn't rule out tapering at the the October Federal Open Market Committee (FOMC) meeting. While analyst speculation has rested on tapering beginning in September or December, this upsets things somewhat. Rumours about tapering – or a reduction in the rate at which the Fed expands the monetary [...]