RBS: Spain will need bailout of at least €300bn to resolve crisis June 18, 2012 SPAIN’S growing bad bank debt problem means the government will have to seek a €300bn (£241bn) bailout like Ireland’s and Portugal’s, top economists warned yesterday, as aid offered so far will not be enough to resolve its problems. Central bank data showed banks’ bad loans rose to 8.72 per cent of their outstanding portfolios in [...]
ECB rejects new direct lending June 18, 2012 THE EUROPEAN Central Bank is doing all it can to help boost economic growth, a top official said yesterday, hitting out at critics who have called for it to directly increase lending to firms and households. Executive board member Joerg Asmussen defended the ECB’s record, saying it has reduced liquidity risk dramatically through refinancing operations, [...]
Americans’ wealth declines June 18, 2012 US households saw their wealth decline by more than a third between 2005 and 2010 as home values and share prices plummeted, leaving many with weak safety nets to weather the tough economy. The median household net worth dived 35 per cent to $66,740 in the five year period, the Census Bureau said yesterday, although [...]
ECB’s Hansson: no deflation risk June 18, 2012 Estonia’s new central bank governor said yesterday that he did not see deflation risks in the Eurozone and said the debate over whether governments should push for growth or push for austerity was misplaced given high deficits in Europe. “I don’t like this kind of growth vs austerity comparison,” Ardo Hansson, who is on the [...]
Italy calls for limits on spreads June 18, 2012 Italy will push this week at a meeting of Eurozone finance ministers for a semi-automatic mechanism involving the European Central Bank or the permanent bailout fund ESM to reduce spreads of Eurozone bonds over Germany, Italy’s European Affairs Minister Enzo Moavero said yesterday.
Vodafone wins key support for £1bn CWW deal June 18, 2012 VODAFONE’S £1.04bn offer for Cable & Wireless Worldwide was yesterday approved by shareholders after the bid’s main objector withdrew its opposition. After weeks of threatening to vote against the deal, fund manager Orbis – which owns 19 per cent of CWW’s stock – surrendered yesterday morning after the telecoms company revealed it already had the [...]
Evonik pulls float until markets recover enough to raise its price June 18, 2012 THE owners of German chemical company Evonik yesterday scrapped plans for what could have been Europe’s biggest initial public offering (IPO) in more than a year, saying it would only resume efforts for a listing if markets recover. “Many big investors indicated their willingness to invest in Evonik in talks last week, but due to [...]
Hedgie calls on Lloyds to improve its capital base June 18, 2012 A prominent hedge fund has called for Lloyds Banking Group to boost its capital by ditching its contingent convertible debt (cocos). Chris Hohn of the Children’s Investment Fund has written to the FSA to claim Lloyds’ cocos have too low a strike price, meaning the securities would not absorb losses until the bank was in [...]
Nine Elms residential towers granted planning consent June 18, 2012 A scheme to add a pair of high-rise residential towers to London’s South Bank was granted planning consent last night by Wandsworth council. The “One Nine Elms” project, proposed by Green Property and CIT Group, will see the existing 1970s Market Towers replaced with 58 and 43 storey skyscrapers, with 500 homes, offices and shops. [...]
Shake-up starts as Man Group hires Sorrell June 18, 2012 STRICKEN hedge fund Man Group yesterday responded to poor performances and investor disquiet by dropping its finance chief. Outgoing finance director Kevin Hayes has been replaced with immediate effect by Jonathan Sorrell, son of billionaire WPP chief executive Sir Martin Sorrell. The fund, which is the world’s second largest by assets, has made the switch [...]
