REHN SAYS EUROZONE CRISIS FAR FROM OVER January 10, 2012 GREECE is nearing an agreement with private sector bond holders on a debt swap crucial to a second bailout package, EU economic and monetary affairs commissioner Olli Rehn said yesterday. He also warned that the Eurozone’s crisis was not over, and urged markets to be patient to avoid pushing the bloc into a liquidity crisis. [...]
UniCredit stock in volatile bounce January 10, 2012 UniCredit shares and rights to buy into the Italian bank’s €7.5bn (£6.2bn) capital increase rallied after three days of falls yesterday, with traders saying volatility remains high. The bank’s rights issue, which runs to 27 January, is regarded as a litmus test of investor appetite for European banks, which must find €115bn by June to [...]
Bank of France reveals stagnation January 10, 2012 French economic growth stalled to zero in the fourth quarter of 2011, confirming a slowdown in the Eurozone’s second-biggest economy, according to a Bank of France survey published yesterday.
Record overnight deposits at ECB January 10, 2012 With no end to the Eurozone’s debt crisis in sight, banks have been choosing safety over profit, pushing overnight deposits at the ECB to record highs of €482bn yesterday. The ECB pays 0.25 per cent interest for overnight deposits, well below the 0.372 per cent at which banks could lend out their spare cash on [...]
BBVA takes a hit on US goodwill January 10, 2012 BBVA, Spain’s second-biggest bank, said it would take a €1bn (£825m) hit on 2011 net profit due to an adjustment in its goodwill, boosting capital by €400m. The goodwill adjustment in its US unit was due to the slow economic recovery and an expectation of low interest rates in that country, BBVA said yesterday.
Hays hurt by slowdown in global market January 10, 2012 TOUGH economic conditions have hit the confidence of employers and jobseekers alike in recent months, recruitment company Hays said yesterday, as it reported a drop in business in its home market and a slowdown in growth overseas. Hays said net fees – or gross profit – rose eight per cent in its second quarter to [...]
Westminster prompts row over Scottish referendum January 10, 2012 THE WESTMINSTER government has raised the tension in the row with Scottish nationalists by telling Edinburgh it has no power to call a referendum on independence. Coalition sources said a vote could be organised within 18 months with Scotland Secretary Michael Moore saying it would put an end to “uncertainty”. Alex Salmond, the First Minister, [...]
Do you support the HS2 rail plans? January 10, 2012 This week we are asking members of the City A.M. Voice of the City panel, run with PoliticsHome.com, what they think of the HS2 rail link now it has been given the green light. Will the high speed train line between London and the north of the country help or hinder the UK’s economy? Will it [...]
RESTAURANT GROUP GETS OUT-OF-TOWN LIFT January 10, 2012 FRANKIE & Benny’s and Garfunkel owner Restaurant Group expects to report strong sales for 2011 as people shun high street chains and opt for its restaurants located in the suburbs, chief executive Andrew Page (inset) said yesterday. Restaurant Group bucked the downbeat leisure environment by selling more than 39m meals in 2011, up five per [...]
Bill for HS2 likely to fall mainly on UK taxpayers January 10, 2012 TAXPAYERS are set to foot a mammoth bill for the new HS2 rail line, with the combined cost of construction and operation estimated to be in excess of £60bn. Yet the government says the £33bn construction costs will be affordable, spread out over around 15 years. “Actual infrastructure costs would only start once we have [...]