MARKETS HIT AS EURO HOPES FADE December 12, 2011 GLOBAL markets were shaken yesterday as fears returned that governments will not manage to save the Eurozone. The honeymoon period that followed last week’s euro deal proved all too brief, making way yesterday afternoon for a show of bitter disappointment from traders. Stocks fell sharply, peripheral Eurozone economies saw their bond yields soar towards the [...]
FSA: Beef up EU rules after RBS December 12, 2011 THE UK must vigorously oppose Europe’s stance on new capital rules in the wake of RBS’s collapse, FSA chairman Lord Adair Turner said yesterday. The long-awaited report into the bank’s 2008 bail-out by taxpayers published yesterday said that regulators were using a “fundamentally flawed” set of rules for how much a bank must put aside [...]
MPs: Finance must be taught December 12, 2011 PERSONAL finance must be taught in schools to equip young people with the knowledge they need to navigate an increasingly complex financial world, said a group of MPs yesterday, as they called for compulsory lessons to be part of the curriculum. A report released by the all-party parliamentary group (APPG) on financial education for young [...]
RBS probe doesn’t answer key issues December 12, 2011 THERE was lots of good stuff in yesterday’s report on the demise of RBS and the idiocy, stupidity and incompetence of the top executives – including Sir Fred Goodwin – advisers, politicians and regulators in charge, including Gordon Brown and Ed Balls. RBS’s rise, fall and slow-motion crash is an astonishing tale of hubris: human [...]
WHAT THE OTHER PAPERS SAY THIS MORNING December 12, 2011 FINANCIAL TIMES Evraz raises prospect of Severstal merger Evraz has raised the possibility of a merger with Severstal in a deal that would unite Russia’s two biggest steelmakers to create the world’s eighth-largest producer by output, with a combined market capitalisation of £12bn. Alexander Abramov, Evraz’s chairman and founder, said in an interview with the [...]
Lloyds bond swap cuts debt needs by 20pc December 12, 2011 LLOYDS has completed a debt exchange that reduces its 2012 financing needs by a fifth, the bank announced yesterday. That means it will have to issue £15-£20bn of new debt next year instead of the previous target of £20-25bn. The move reduces Lloyds’ short-term reliance on wholesale funding markets, which have seized up over the [...]
LSE buys FTSE to win control of key assets December 12, 2011 THE London Stock Exchange took total control of stock index provider FTSE International yesterday, by buying Pearson’s 50 per cent stake for £450m. The move cements the LSE’s hold over the FTSE’s 200,000 indices and global, high growth trajectory. It also puts it in control of a critical piece of trading infrastructure as it seeks [...]
Hendry hedge fund soars as China slows December 12, 2011 HEDGE fund boss Hugh Hendry (pictured below) has bucked the gloom afflicting rivals and recorded stellar gains on his “China short” fund. The charismatic Glaswegian told City A.M. the fund had returned 52 per cent so far this year. The performance contrasts with a loss of 4.37 per cent for the average global hedge fund, [...]
PM: We will bring powers back from EU December 12, 2011 THE UK will work to repatriate powers from the European Union while still seeking a resolution to the Eurozone crisis, David Cameron told MPs yesterday, as he robustly defended his decision to veto a new treaty agreement in last week’s summit. With deputy PM Nick Clegg conspicuous in his absence, Cameron stressed that his actions [...]
Spanish banks on downgrade watch December 12, 2011 MOODY’S has placed eight Spanish banks on review for possible downgrade, in light of a worse than expected economic outlook and exposure to real estate. The ratings agency said 21 financial institutions have also had their ratings cut after a review of systemic support. And it warned yesterday that more Eurozone banks and governments may [...]
