UK government borrowed a record £16bn last month September 21, 2011 THE GOVERNMENT borrowed more last month than in any other in this financial year, the Office for National Statistics (ONS) revealed yesterday. Almost £16bn was added to the national debt in August, excluding financial interventions, reversing July’s surprise surplus. August’s deficit of £15.9bn is up from £14bn in August last year, with spending up by [...]
SHOULD THE BANK OF ENGLAND DO MORE QE? September 21, 2011 TOBY BRYMER | ALLIANZ “Yes, it should, because Europe is in a critical condition at the moment. If the economy gets any worse there will be big repercussions.” KEITH JULIAN | JRP UNDERWRITING “At some stage I think it is inevitable, because of the state of the economy. Whether now is the right time for QE [...]
Record claims plague Lloyd’s of London September 21, 2011 THE Lloyd’s of London group of insurers was hit by unprecedented losses in the first half of 2011, after a string of disasters meant customer claims were up by 24 per cent. Lloyd’s reported a pre-tax loss of £697m in the six months to June, compared to a profit of £628m in the same period [...]
Fingers will be crossed for a calmer winter as catastrophe losses mount September 21, 2011 DESPITE the record hit to revenue, the Lloyd’s performance was still better than some analysts had expected. Audit firm Mazars predicted losses of £1.5bn last week, but yesterday the results compared favourably to the rest of the sector. “Last year the average combined loss ratios of UK-listed insurers were slightly better than Lloyd’s,” said insurance [...]
HEWLETT PACKARD MULLS NEW CHIEF EXECUTIVE September 21, 2011 Shares in US tech firm Hewlett Packard jumped 7.5 per cent last night, as Wall Street gave its approval to news that its board had met to consider ousting chief executive Leo Apotheker (pictured). After less than a year in the role, Apotheker could be replaced by former eBay boss Meg Whitman, a source familiar [...]
Lehman drops Barclays litigation September 21, 2011 Lehman Brothers Holdings said it will drop its appeal of a bankruptcy court’s ruling upholding Barclays’ purchase of its North American business in 2008. In a statement, Lehman said yesterday it will drop its challenge of Judge James Peck’s February ruling denying its attempt to overturn the sale, which was completed in the hectic days [...]
MEET THE JUDGES September 21, 2011 ALLISTER HEATH | CITY A.M. Allister joined City A.M. as editor in early 2008. He chaired our panel of judges. SIR MARTIN SORRELL WPP Sir Martin is the co-founder and chief executive of WPP, the world’s largest communications company. SIMON MACKENZIE-SMITH BANK OF AMERICA MERRILL LYNCH Simon is chairman of UK & Ireland corporate and [...]
Foster’s gives in to improved SABMiller bid September 21, 2011 SABMiller yesterday finally had a A$9.9bn (£6.5bn) bid for Foster’s agreed by the Australian company’s board after months of wrangling. Fosters had rejected SAB’s previous bid worth A$9.5bn, saying it undervalued the company. That triggered a hostile bid from SAB, which approached the company’s shareholders directly in an effort to close a deal. However, the [...]
Imperial in lift as price pain eases in Spain September 21, 2011 IMPERIAL Tobacco said yesterday it expects sales to rise two per cent in the current year, with a damaging price war in Spain set to ease. Imperial is market leader in Spain with a near 30 per cent share from brands like Fortuna, Ducados and Nobel, but suffered from a market depressed by economic woes [...]
ANALYST VIEWS: ARE IMPERIAL TOBACCO SHARES GOOD VALUE? September 21, 2011 TINA COOK | CHARLES STANLEY The firm benefits from cost savings, supportive £500m share buyback and a commitment to progressively raise the dividend payout ratio from 50 per cent in 2011. Volumes have stabilised and pricing momentum remains intact. We remain comfortable with our accumulate recommendation. MARTIN DEBOO | INVESTEC Imperial needed to post a [...]
