Morale falls in United States October 25, 2011 AMERICAN consumer confidence plummeted to a two and a half year low this month, in a worrying sign for the US economy. “What’s more, at 39.8, confidence is far below the long-term average of 92.8,” added Paul Ashworth of Capital Economics. “Aside from a few months during the height of the recession between November 2008 [...]
Ailing hedge funds forced to slash pay October 25, 2011 SALARIES and bonuses in the hedge fund industry are set to slump by an average of 10 per cent this year as global market turmoil bites. Some top hedge fund managers will suffer a cut of up to 30 per cent in their total compensation packages, according to research. The study also showed the typical [...]
Amazon tumbles as Fire burns through its profits October 25, 2011 ONLINE retailer Amazon shocked investors last night with a far weaker-than-expected outlook for the crucial holiday season quarter as it spent heavily on its new Kindle Fire tablet computer. The stock tumbled 12 per cent in extended trading as the news raised concern that Amazon was losing some of the revenue momentum that had helped [...]
Government to clamp down on regulation visits October 25, 2011 THE GOVERNMENT plans to scrap numerous regulatory bodies and limit their powers of inspection to twice a year as part of a deregulation drive, deputy Prime Minister Nick Clegg said yesterday. Employers could also be given a new legal protection to have “frank conversations” with underperforming staff without fear of the content being eligible as [...]
Investment bank loss hits UBS profits October 25, 2011 PROFITS at troubled Swiss bank UBS tumbled in the third quarter but came in above analysts’ worst fears. UBS said net profit fell 39 per cent to SwFr1.018bn (£723m) after one-off items, including a SwFr1.765bn gain on its own debt. In the investment banking division, however, where trader Kweku Adoboli is accused of carrying out [...]
Effect of rogue trading scandal on wealth management still not clear October 25, 2011 THE IMPACT of the rogue trading scandal on UBS’s investment bank was laid bare in its third quarter results. The unit fell to a loss of SwFr2.4bn once you strip out the gains it made on the declining value of its own credit, in large part due to the SwFr1.8bn lost through unauthorised trades. The [...]
Credit Suisse fined £6m for system faliure October 25, 2011 CREDIT Suisse has been fined £5.95m by the Financial Services Authority (FSA) for system failures in its private bank, the second time it has fallen foul of the regulator in less than two years. The FSA said yesterday it has fined Credit Suisse for “systems and control failings in relation to sales by its private [...]
Virgin Money submits bid for Northern Rock October 25, 2011 THE GOVERNMENT has received its first bid on bank assets that it bailed out during the financial crisis. It is understood that Virgin Money sent in a bid for the Northern Rock “good bank” currently on the block. City A.M. also understands that NBNK Investments, Lord Levene’s buy-out vehicle, plans to submit a bid today before [...]
Deutsche Bank plans job cuts as retail lifts profit October 25, 2011 DEUTSCHE Bank’s third-quarter pre-tax profit beat forecasts as retail banking and asset management offset a drop in investment banking which it warned was facing the toughest conditions since 2008 that could lead to more job cuts. Weaker market activity forced Germany’s flagship lender to drop ambitious full-year targets earlier this month and announce 500 job [...]
Lloyds changes way it reports its margins October 25, 2011 PART-NATIONALISED bank Lloyds yesterday changed the way it reports funding costs and capital, resulting in a slightly higher banking net interest margin target for this year but not impacting overall group earnings numbers. Lloyds said the changes would mean that net interest income within its core banking divisions would increase slightly, while there would be [...]
