Facebook costs may hit $200m June 7, 2012 Losses by banks and brokerages due to Facebook’s botched debut on the Nasdaq exchange last month may be as high as $200m (£128m), Thomas Joyce, chief executive officer of Knight Capital, said yesterday. Nasdaq said on Wednesday that it would offer $40m in cash and rebates to clients harmed by its mishandling of Facebook’s market [...]
US corporate cash growth slows June 7, 2012 US companies are sitting on around $1.74 trillion in cash – but this is $500bn smaller than previously thought, according to the Federal Reserve’s flow of funds report published last night. While firms are holding 16 per cent more than they were in June 2009, the Fed has slashed its estimates in an apparent slowing [...]
Critics question independence of WPP’s Rosen June 7, 2012 PIRC, the shareholder advisory group that is urging investors to vote against Sir Martin Sorrell’s £12.9m pay deal, yesterday questioned the independence of Jeffrey Rosen, the chair of the company’s compensation committee. Rosen, who joined the WPP board in 2004, was earlier a bank adviser to the group when he was at Wasserstein Perella. He [...]
Cameron and Osborne promise to defend UK interests in Europe June 7, 2012 PRIME Minister David Cameron yesterday vowed to protect the UK’s interests in Europe, while both he and his chancellor George Osborne ruled out playing any part in a Eurozone banking union. “I can understand why Eurozone countries may want to look at elements of banking union,” Cameron said at a conference in Berlin. “[But] because [...]
Glencore boost as Glasenberg buys shares June 7, 2012 GLENCORE chief Ivan Glasenberg has splurged £10m on 2.9m shares in his FTSE 100 company as part of his promise to spend all of his $110m in dividends on stock. His move is intended to shore up shareholder support ahead of the commodities trader’s proposed merger with Xstrata, which has sparked anger among some investors who say [...]
Supplier saves 4,500 jobs at Clinton Cards June 7, 2012 THE REMAINS of the high street chain Clinton Cards were bought out of administration yesterday by an American cards company, in a deal expected to safeguard 4,500 jobs. Administrator Zolfo Cooper confirmed yesterday that American Greetings, one of Clinton’s biggest suppliers, had paid $37m (£24m) to buy the ailing retailer’s brand and assets including 397 [...]
FSA approvals taking longer as split looms June 7, 2012 NEW businesses face a longer wait to gain approval from the City regulator, according to new research. Firms waited an average of 19.6 weeks in the first three months of this year, according to Financial Services Authority data obtained by law firm Reynolds Porter Chamberlain. The 13.2 per cent jump, the third consecutive quarterly rise, [...]
Merkel vows action to end crisis at long last June 7, 2012 GERMAN Chancellor Angela Merkel said Europe was ready to act to ensure stability in the Eurozone, yesterday, while Prime Minister David Cameron called for “urgent action” to tackle the debt crisis. However, she did not call for jointly-guaranteed eurobonds – instruments which Italian PM Mario Monti again called for as his favoured solution to the [...]
Unemployment hits new record high in devastated Greece June 7, 2012 YOUTH unemployment hit a new record high in Greece in March, while France also saw a surprise jump in joblessness. Well over half of Greece’s under-25s are now unemployed, according to official agency Elstat – 52.8 per cent were jobless in March, up from 42 per cent in March 2011 and more than double the [...]
Fitch: EU too big to fail rules will erode bank credit ratings June 7, 2012 EU PROPOSALS to avoid bank bailouts in future are already feeding through into credit calculations, prompting ratings agency Fitch to announce yesterday that they will “weaken state support in the long term”. That is likely to mean a round of credit downgrades for European banks and an increase in the cost of their debt. On [...]
