King says UK outlook weaker June 26, 2012 The outlook for Britain’s economy has worsened over the past few weeks due to turmoil in the euro zone, Bank of England governor Mervyn King said. “In the last six weeks… I am very struck by how much has changed since we produced our May Inflation Report,” King told parliament’s Treasury Committee. “I am pessimistic [...]
Public borrowing rises as tax receipts fall June 26, 2012 Public borrowing was higher than expected in May after income tax receipts fell and spending rose, in a sign the government may face a struggle to meet its debt reduction target as the economy weakens. The Office for National Statistics said that public sector net borrowing excluding public sector interventions – the government’s preferred measure [...]
Stagecoach profits dented by rail unit June 26, 2012 British bus and rail operator Stagecoach reported a slight fall in full-year profit after its UK rail business delivered a worse-than-expected performance. Scotland-based Stagecoach said its pretax profit for the year to the end of April fell 1.5 per cent to £202.5m on revenues 8.4 per cent higher at £2.59bn. “This reduction was principally due [...]
Ocado says sales hit by Jubilee June 26, 2012 Online supermarket Ocado said trade in its third quarter was disrupted by celebrations to mark Queen Elizabeth II’s Diamond Jubilee as it posted a 4.5 per cent rise in underlying first half earnings. “The third quarter is particularly hard to forecast as we have already seen some disruption from the Jubilee events, and there is [...]
Nein Nein Nein June 25, 2012 The Eurozone crisis escalated last night as credit rating agency Moody’s slashed the ratings of 28 Spanish banks, while earlier in the day German Chancellor Angela Merkel appeared to rule out plans to mitigate the euro area’s troubles with more debt sharing. The mass downgrades followed the lowering of Spain’s sovereign rating to Baa3 on [...]
Online blunder puts Hester’s bonus under threat again June 25, 2012 As the computer meltdown at NatWest entered another week, pressure mounted yesterday to make senior management pay the price for the disruption. Liberal Democrat peer Lord Oakeshott told Sky News that there was “no question that [RBS boss] Stephen Hester should not be eligible for a bonus after this fiasco.” Interviewed yesterday, Hester said management [...]
RBS customers may reach for the switch after fiasco June 25, 2012 Furious customers were searching for a way out of their relationship with part-nationalised banking group RBS yesterday as promises of further extensions to normal opening hours failed to reassure. Comparison site Moneynet.co.uk reported a 10 per cent jump in hits from those searching for alternative current account providers. One business leader told City A.M.: “This [...]
Credit Suisse to cut investment banking staff June 25, 2012 SWISS bank Credit Suisse is to cut senior staff in its European investment banking department by up to a third, sources said yesterday, as tighter regulation and weak markets hit the sector. “In the European investment banking business, they are going to get rid of 60 directors and managing directors,” one said. The investment banking [...]
WHAT TO DO IF YOU HAVE BEEN AFFECTED June 25, 2012 First steps The Payments Council, the voluntary industry body that sets strategy and standards for payment systems and services industry in the UK, provided the following advice yesterday: • Speak to your bank or building society. They should help to resolve your problems as quickly as possible • Make a note of all communication and [...]
WHAT THE OTHER PAPERS SAY THIS MORNING June 25, 2012 FINANCIAL TIMES EU plan to rewrite budgets The European Union would gain far-reaching powers to rewrite national budgets for Eurozone countries that breach debt and deficit rules under proposals likely to be discussed at a summit this week, according to a draft report seen by the Financial Times. State-backed cyber attack cost UK company £800m, [...]