Deficit row as IMF calls for growth May 22, 2012 THE IMF heaped praise on George Osborne’s deficit reduction plans yesterday, but warned that the coalition might have to change tack if the economy worsens much further. IMF boss Christine Lagarde expressed delight at the austerity measures, saying “when I think back to May 2010, when the UK deficit was at 11 per cent and [...]
Higher public spending pushes up UK borrowing May 22, 2012 GOVERNMENT borrowing jumped in April as spending increased unexpectedly, official figures showed yesterday, although the takeover of the Royal Mail pension fund’s assets skewed the data in the month. The Office for National Statistics (ONS) officially recorded a budget surplus of £16.5bn in April, compared with a deficit of £16.9bn in March and £9.06bn in [...]
OECD warns of Eurozone risk to world economy May 22, 2012 THE EUROZONE crisis remains the single biggest threat to the global economic recovery, the Organisation for Economic Co-operation and Development (OECD) said yesterday. “The crisis in the Eurozone remains the single biggest downside risk facing the global outlook,” said OECD economist Pier Carlo Padoan. “Adjustments in the euro area are now taking place in an [...]
WHAT THE OTHER PAPERS SAY THIS MORNING May 22, 2012 FINANCIAL TIMES Trafigura to move to Singapore Singapore has enticed Trafigura, one of the world’s biggest commodities trading houses, to move its legal headquarters from Switzerland to the Asian city state, highlighting the attractions of its low-tax regime and proximity to China. Trafigura’s relocation is a big boost for Singapore as it challenges the supremacy [...]
Facebook loses friends as stock drops further May 22, 2012 FACEBOOK shares tumbled again yesterday on the third day of trading as more investors turned their backs on the website’s inflated price. Falling 4.3 per cent in pre-market trading, the stock slid further in the day to close down 8.9 per cent at $31. The social networking giant has now shed $19bn from its initial [...]
Investors have chance to snap up photo agency Getty Images May 22, 2012 PHOTO agency Getty Images could be on the market after its owners appointed advisers to consider a potential sale or IPO. Hellman & Friedman, the US private equity fund which bought the business for $2.4bn (£1.5bn) four years ago, is understood to be working with Goldman Sachs and JP Morgan Chase to help it decide whether [...]
CME knocked out of race to buy London Metal Exchange May 22, 2012 JUST two bids for the London Metal Exchange (LME) remain on the table after an offer from US exchange group CME fell short of expectations. This leaves just InterContinental Exchange (ICE) and Hong Kong Exchanges and Clearing (HKEx) in the race to purchase the world’s largest metals marketplace. Both remaining parties are understood to have submitted bids of around [...]
Germany and France to clash over eurobonds May 22, 2012 FRENCH President Francois Hollande faces his first major negotiating test at today’s informal EU summit, as he wants Germany to back jointly guaranteed eurobonds, lowering weak governments’ borrowing costs. European Council president Herman van Rompuy convened the summit to bash out a common position among leaders on plans to “boost growth and jobs across the [...]
Greek banks in line for €18bn recapitalisation May 22, 2012 GREECE’S four largest commercial banks will receive €18bn (£14.5bn) recapitalisation funds by Friday, a senior banker at one of the four said yesterday. “We will get the money by Friday at the latest. Maybe we will get it tomorrow,” said the banker, who did not want to be identified. The funds are needed to recapitalise [...]
Europe’s consumers remain cautious May 22, 2012 CONSUMER confidence remained very low in May, European Commission data showed yesterday, with falling inflation expectations giving consumers a little extra hope. The index rose to minus 19.4 in May from minus 20.2 in April in the EU as a whole, and to minus 19.3 from minus 19.9 in the Eurozone. That leaves confidence still [...]