Investment banks will be hit by reform September 9, 2009 PROFITABILITY at the world’s largest investment banks (IB’s) could tumble by as much as a third due to the impact of regulatory reform, leading to hefty staff cuts, JPMorgan Chase analysts have predicted. The bank said it expected that regulatory proposals, if they were applied, would reduce predicted return on equity (ROE) by an average [...]
Oil cause of UK’s wider trade deficit September 9, 2009 BRITAIN’S trade deficit widened in July to £2.44bn from £2.37bn in June, driven by a £100m increase in the deficit of oil, the Office for National Statistics said yesterday. The official data showed that the UK’s deficit on trade in goods in July is provisionally estimated at £6.5bn, unchanged compared with June, while the trade [...]
Mandelson China trip nets $500m September 9, 2009 UK Trade & Investment, the government body that fights for overseas trade, has said Lord Mandelson’s visit to China has netted $500m (£302m) worth of deals for British businesses. The body said the business secretary’s visit has made a slew of contracts and new investment deals possible, as the UK’s low carbon industry becomes increasingly [...]
Diageo rejects plan to save jobs September 9, 2009 Drinks giant Diageo has dismissed as “unworkable” a plan to avoid job cuts at the firm that was submitted by Scottish ministers, as it presses ahead with plans to shut the Johnnie Walker bottling plant in Kilmarnock. The group said the plan, submitted by Scotland’s finance minister John Swinney, would cost more in the longer-term [...]
Aviva names USchief executive September 9, 2009 Insurance giant Aviva has named Christopher Littlefield as chief executive officer of its US business. Littlefield, who was chief operating officer, will lead the firm’s US life and annuity business. He will still report to Tom Godlansky, who runs the overall Aviva North America region. Littlefield joined AmerUs Group – which was later acquired by [...]
USmortgage applications surge September 9, 2009 Mortgage applications in the US surged last week to their highest since late May as consumers sought to take advantage of the lowest interest rates in months. Mortgage Bankers Association data said rates on 30-year fixed-rate home loans fell to a three-month low, spurring a surge in demand for home refinancing loans. Applications to buy [...]
FTSE SMASHES THROUGH 5,000 September 9, 2009 THE FTSE 100 share index closed above 5,000 yesterday, for the first time in nearly a year, fuelled by the return of mega-mergers and optimism for economic recovery The large-cap index breached the psychologically important level in early afternoon and, despite some wavering, closed up by 1.2 per cent at 5,004.30. This week so far [...]
Lloyds gets support for a cash call September 9, 2009 LLOYDS Banking Group executives believe they have secured sufficient appetite from investors for a share placing that would allow the bank to reduce its participation in the government’s costly Asset Protection Scheme (APS), City A.M. can reveal. The bank has been sounding out selected investors over the past few weeks and has received assurances that [...]
MPC to hold but more QE is possible September 9, 2009 QUANTITATIVE easing and interest rates should be kept on hold this month say a majority of City A.M.’s shadow monetary policy committee (MPC) ahead of the Bank of England’s policy decision due at midday today. A number of members say that we need to give quantitative easing (QE)more time to take effect. But they warn [...]
Hostile bid on Kraft’s radar September 9, 2009 KRAFT has opened talks with its bankers to arrange the financing necessary for its £10.2bn bid for Cadbury, in a sign that the US group could go hostile. It is understood that the group is talking to its advisors, Deutsche Bank and Citigroup, about a loan facility of around £5bn, which would be repaid with [...]