Cameron backs Liam Fox October 10, 2011 PRIME MINISTER David Cameron said yesterday that Liam Fox made “serious mistakes” in his dealings with Adam Werritty but backed his embattled defence secretary pending a full report into his conduct. Cameron’s comments came after an interim report on Fox’s ties with Werritty – a close friend who has no official post within the government [...]
US stocks rally on Eurozone’s rescue pledge October 10, 2011 US STOCKS soared yesterday as investors bet on a pledge by Germany and France to unveil new measures to solve the European debt crisis by the end of the month. Following weeks of intense swings in the stock markets, the Dow Jones industrial average closed up by 330.06 points, or 2.97 per cent, to end [...]
Bailout frenzy for Euro Banks October 10, 2011 EUROZONE leaders scrambled to bail out another two banks yesterday after unveiling a €4bn (£3.5bn) rescue of Dexia, the bankrupt Belgian lender. The EU was also forced to postpone a summit scheduled for next Monday in order to give politicians more time to “allow [us] to finalise our comprehensive strategy” to bail out banks, Brussels [...]
Baby boomers make way for baby busters October 10, 2011 THE NEW generation of “baby busters” faces an uphill struggle to match the housing and pension wealth accrued by their “baby boomer” generation parents. “This is the legacy handed down by the early 1960s ‘baby boomers’ to the generation of students just starting at university,” according to the report published today by PwC. People born [...]
Lastminute trims losses October 10, 2011 ONLINE travel firm lastminute.com has cut its losses despite suffering a grim year caused by the volcanic ash cloud and strikes by airline crews. The private equity-owned firm increased turnover by 6.45 per cent to £49.14m and cut costs as it tackled the consumer spending slump. Operating losses narrowed 77 per cent to £10.26m, according [...]
BIS says bank buffer worth economic hit October 10, 2011 THE BENEFITS for taxpayers of a safer financial system will far outweigh the temporary hit to economic growth of imposing tough new capital rules on top banks, a committee of international regulators concluded yesterday. The report, published yesterday by the Bank for International Settlements in Basel, claimed that increasing the extra capital banks are required [...]
Dexia saved as fire sale of assets begins October 10, 2011 A FIRE SALE of Dexia assets was underway last night after France, Belgium and Luxembourg agreed to spend €90bn (£78.45bn) on a bailout for the crippled bank’s ailing bonds unit. The break-up of the group will see Dexia Bank Belgium, the largely retail division, sold to Belgium for €4bn. Dexia is also seeking backing from [...]
€60bn bailout bill heaps pressure on Belgian state October 10, 2011 THE BAILOUT of Dexia has further weakened Belgium’s chances of avoiding a downgrade of its government debt, ratings agencies warned. The central European nation has spent nearly €60bn on shoring up Dexia and buying its Belgian retail arm, just three days after Moody’s warned of a possible downgrade. After the Dexia bailout was finalised yesterday [...]
Grand rescue plan is certain to fail October 10, 2011 Markets are on tenterhooks to see how the Eurozone’s new merry-go-round of money, known as its bank recapitalisation scheme, is going to work. And following yet another delay in the unveiling of the plan – with Monday’s summit pushed back a week and few details likely until November – they will be waiting a little [...]
ECB is seeing its overnight lending soar October 10, 2011 EMERGENCY overnight lending from the European Central Bank remained in demand, while overnight deposits hit a new 15-month high, figures showed yesterday, a sign of strains in bank funding markets. Banks took €2.8bn (£2.4bn) from the 17-country bloc central bank’s expensive overnight lending facility, where they have to pay 2.25 per cent interest, compared with [...]
