Norway hikes interest rate October 28, 2009 NORWAY yesterday became the first Western European country since the onset of the financial crisis to raise the cost of borrowing, hiking interest rates to 1.5 per cent to control inflationary pressures in the oil-exporting country. “Inflation has been higher than expected and unemployment is considerably lower than previously projected,” the Norges Bank governor, Svein [...]
CITY VIEWS: SHOULD PEOPLE BE FORCED TO CONTRIBUTE TO A PENSION SCHEME? October 28, 2009 ANTHONY JOHN FUND QUEST“Compulsion is going to be the only way most people provide for retirement. Over the last ten years, there has been a privatisation of pensions. The government can’t provide for everyone living here. The burden will be too much for the state.” LEE CHAPMAN VERDANT WEALTH“I haven’t started thinking about pensions yet, [...]
BARGAIN BANKER October 28, 2009 THE government confirmed that it had hired one of the City’s top deal-makers yesterday – on an income believed to be no more than a tenth of what he earned at UBS. Robin Budenberg joined UK Financial Investments (UKFI) for a bonus-free, pension-free bargain salary of just £155,000. Friends said the banker, who they described [...]
BANK SHARES FALL AS LLOYDS TESTS MARKET October 28, 2009 SHARES in Lloyds and Royal Bank of Scotland fell yesterday on fears that this week’s break-up of Dutch bank ING by European regulators is an example of how UK banks that have accepted state aid will be treated. Meanwhile, chancellor Alistair Darling looks set to give Lloyds the go-ahead to market-test its plan for a [...]
Rock gets go-ahead to split October 28, 2009 CHANCELLOR Alistair Darling ruled out the prospect of a quick sale of Northern Rock yesterday, despite winning backing from the European Union to split the troubled lender into a “good” and “bad” bank ahead of a sell-off. EU competition commissioner Neelie Kroes approved the government’s proposals to split the Newcastle-based bank, led by chairman Ron [...]
We need to shake up consumer banking October 28, 2009 YESTERDAY was the 80th anniversary of the Great Crash of 1929. Like the present crisis, which has fortunately turned out to be much less severe, the bubble of the 1920s was caused primarily by errors in monetary policy and a misunderstanding of the way the economy works. There was too much cheap money sloshing around [...]
WHAT THE OTHER PAPERS SAY THIS MORNING October 28, 2009 FINANCIAL TIMES LOVELLS IN MERGER TALKS TO CREATE LEGAL FIRMLovells, the City law firm, was in talks on last night over a merger with Washington-based Hogan & Hartson aimed at creating a rare successful big transatlantic legal tie-up, said people familiar with the matter. The proposed deal would create a law firm with a strong [...]
Obama’s pay tsar set on AIG October 28, 2009 Kenneth Feinberg, the Obama administration’s pay tsar said renegotiating bonuses to American International Group employees is a “top priority” yesterday, adding he believes he can do so without losing key employees. At the same time Feinberg, who reduced pay for executives at seven major US firms, said he didn’t want broader powers over the rest [...]
Saudi Armaco ditches WTI October 28, 2009 Saudi Aramco yesterday announced it will begin using the Argus Sour Crude Index (ASCI) published by Argus Media as the benchmark price for all grades of crude oil sold to US customers – in a move away from WTI. Saudi Aramco has used WTI crude prices published by McGraw Hill’s Platts as the benchmark for [...]
JJB Sports wins over investors October 28, 2009 Embattled sportswear retailer JJB Sports yesterday confirmed it has received shareholder support for 90 per cent of the shares it intends to issue in its £100m cash call. Shareholders will vote today to approve the rights issue.
