Redrow’s family focus pays off February 23, 2012 Housebuilder Redrow said its recovery looked set to continue after a strong start to the second half as it reported an 80 per cent jump in first half profit, driven by a focus on higher priced family houses. The company delivered a pre-tax profit of £15m in the six months to 31 December on revenue [...]
Sears hopes sell-off will lift firm February 23, 2012 US retail giant Sears plans to raise about $770m (£489m) by spinning off more than 1,250 stores and selling some real estate, hoping to convince Wall Street that the struggling chain has enough assets to tap to pay down debt. The news boosted shares of the operator of Sears department stores and the Kmart discount [...]
Recession looms as EC slashes forecasts February 23, 2012 THE EUROZONE economy will contract by 0.3 per cent this year, according to updated forecasts published yesterday by the European Commission (EC). The forecast for a recession represents a sharp turnaround from the 0.5 per cent growth predicted just four months ago, as economic data since November has been much weaker than expected. The Greek [...]
Consumers pay off debts as businesses reduce borrowing February 23, 2012 GROWTH in mortgage lending fell to its slowest pace for eleven years in January while the amount borrowed by consumers and businesses also tumbled, according to figures released yesterday. The British Bankers’ Association (BBA) said net mortgage lending rose 1.3 per cent in the year to January, compared with growth of 2.3 per cent in [...]
Greek MPs approve debt swap as part of bailout February 23, 2012 THE GREEK parliament endorsed a debt swap with private bondholders yesterday that forms the core of its €130bn (£110.2bn) bailout, despite new protests against budget cuts demanded in return for the rescue deal. The swap, in which private investors exchange their bonds for lower-value debt, will slice €100bn off Greece’s debt, a vital part of [...]
German firms remain upbeat February 23, 2012 GERMAN business confidence rose again in February according to the IFO business index published yesterday, and the official Italian statistics agency reported consumers became slightly less pessimistic in the month. The IFO index rose from 108.3 in January to 109.6, while the expectations index increased from 100.9 to 102.3, pointing to modest economic growth. Italian [...]
HALDANE: SMES NEED SMALLER BANKS February 23, 2012 The structure of the banking industry in the UK is stunting the growth of small- and medium-sized enterprises (SMEs) according to the Bank of England’s Andrew Haldane. The Financial Policy Committee (FPC) member told a business conference yesterday that the UK lacks the medium-sized banks which can provide “the financing SMEs need to be tomorrow’s [...]
Benefit errors declining February 23, 2012 The Department for Work and Pensions (DWP) cut overpayments and underpayments of benefits last financial year, according to data released yesterday. Fraud and error resulted in 2.1 per cent of total benefit expenditure, or £3.2bn, being overpaid in 2010-11. That was down from 2.2 per cent, or £3.3bn, in 2009-10.
London firms set to expand February 23, 2012 London’s entrepreneurs have set themselves ambitious growth targets, with 93 per cent looking to expand this year and one-fifth planning on growing by over 25 per cent, research from RSM Tenon showed yesterday. Respondents remained upbeat on the weak economic outlook with two-thirds claiming the challenging environment brings more opportunities, although under one-third are looking [...]
No longer just rate-setters: how top Bank officials are set to take control February 23, 2012 IN an almost austere office, buried in one of the less glamorous corners of the Bank of England, Paul Fisher performs his tasks as the Bank’s executive director of markets. The room suits Fisher, a mild mannered central banker with a PhD in macroeconomic modelling. Yet the modest surroundings are not what one expects for [...]
