European banks to deleverage by €221bn due to stress tests March 11, 2012 EUROPEAN banks will deleverage to the tune of €221bn (£185bn) in the immediate future as a direct result of emergency capital requirements, the Bank of International Settlements (BIS) said yesterday. But the international body of central bankers said that while this is “sizeable”, it is more limited than many had feared when the European Banking [...]
Eurogroup to sign up to a Greek rescue March 11, 2012 EUROGROUP nations will meet in Brussels today with a view to giving the final go-ahead to Greece’s second bailout so that their parliaments can ratify the rescue in quick succession. The IMF must also decide on and approve its share of the bailout money this week, though first it must conclude that the rescue would [...]
Sarkozy defies Europe with protectionist plan for France March 11, 2012 FRENCH President Nicolas Sarkozy, recasting himself as France’s saviour from low-cost competition and high immigration, threatened to disregard European limitations on protectionism as he sought to give his re-election campaign a second wind yesterday. Going out on a limb that risks angering France’s European partners, Sarkozy said it was time to support local companies and [...]
Belgium extends austerity plans to meet EU’s budget restrictions March 11, 2012 BELGIUM will extend austerity measures by €1.82bn (£1.5bn) because of a possible contraction of its economy this year, to keep its 2012 budget deficit within EU limits. After a full week of talks, ministers from the six-party coalition agreed a series of measures yesterday as well as the freezing of a further €650m of spending, [...]
Virgin’s £5bn has no place at Heathrow March 11, 2012 SIR RICHARD Branson said an investment of up to £5bn over the next few years will not find its way to UK shores unless the government rethinks its policy against a Heathrow expansion. He said that opportunities for investment in the UK have “ground to a halt”, echoing concerns voiced by his company Virgin Atlantic [...]
Credit easing to boost reliance on big lenders March 11, 2012 MICRO-BUSINESS funding organisations are becoming increasingly reliant on major banks for capital, a trend that could be accelerated by the government’s credit easing policy. New data for 2011 seen by City A.M. shows that banks now provide a fifth of the capital used for lending by Community Development Finance Institutions (CDFIs), non-profits that lend to [...]
Banks in rate swap dispute with SMEs March 11, 2012 BRITAIN’S top banks face claims of mis-selling from hundreds of small businesses that bought complex interest rate derivatives before the start of the financial crisis. Barclays and HSBC, as well as taxpayer-backed Lloyds and Royal Bank of Scotland, all face allegations that they pushed small- and medium-sized enterprises (SMEs) to take out interest rate swap [...]
Liberal Democrat rebels deal Clegg a blow over controversial NHS reforms March 11, 2012 NICK CLEGG failed to convince his party to give their full backing to the coalition’s controversial NHS reforms, with a vote at the Liberal Democrat spring conference in Gateshead yesterday stopping short of whole-hearted support. Lib Dem rebels managed to alter the party’s vote on the Health and Social Care Bill, removing a line that [...]
Pru considers Brazil in plans for expansion March 11, 2012 PRUDENTIAL could be planning to branch out to Brazil as the British insurance firm, which has a strong presence in Asia and the US, taps into South America as part of its expansion plan. Prudential chief executive Tidjane Thiam is said to have approached the Brazilian government in a bid to loosen the local legislation [...]
Republicans close amid key primaries March 11, 2012 REPUBLICANS Newt Gingrich and Rick Santorum go into this week’s primary contests head-to-head, with Gingrich’s political survival riding on votes in Mississippi and Alabama tomorrow. Gingrich vowed yesterday to push ahead to the Republican convention in Tampa in August even if he loses in the south. But Gingrich’s struggling presidential bid could be at risk [...]