Directors scrap for positions post-merger February 2, 2012 MERGING Glencore and Xstrata will create fierce competition for positions on the new board – and most of the potential directors already know each other. The two firms have a long history of sharing board members and are based just 3km apart in the twin towns of Zug and Baar, Switzerland. Mick Davis was a Glencore employee [...]
Zynga soars but Facebook has yet to fly February 2, 2012 ZYNGA shares jumped 17 per cent yesterday following Facebook’s revelation that 12 per cent of its 2011 revenues came from the social gaming company. Facebook’s IPO filing on Wednesday also confirmed that Morgan Stanley will lead the troupe of underwriters, who could accept a fee of just one per cent in their keenness to land [...]
BarCap’s mandate on $5bn float shows its growing clout February 2, 2012 BARCLAYS Capital’s claims to be one of the major players in the world of equity capital markets will only have been enhanced by its inclusion as one of the book-runners in Facebook’s $5bn flotation. It is the only UK-based bank on the list and that alone can act to reinforce the view that it picked [...]
CITY VIEWS: DO YOU BELIEVE ZUCKERBERG WHEN HE SAYS “WE DON’T BUILD SERVICES TO MAKE MONEY; WE MAKE MONEY TO BUILD BETTER SERVICES”? February 2, 2012 VIVEK ABRAHAM | TATE BANK OF INDIA “I think he’s in it for the money – he’s getting a big chunk of it! This way his investors can get out of the business. I don’t believe he just wants to build the technology.” REBECCA HOBBS | RECRUITER “It’s for financial reasons. Facebook is all free [...]
Chinese may invest in euro bailout funds February 2, 2012 MARKETS rose yesterday as Chinese Premier Wen Jiabao suggested the country will invest in the Eurozone bailout fund – but fell later when Eurogroup leader Jean Claude Juncker cast doubt on the success of Greek debt talks. Wen (pictured) said the country supports efforts to stabilise the currency, and could invest some of its huge [...]
Posen: Extend QE beyond gilts February 2, 2012 MONETARY Policy Committee (MPC) member Adam Posen yesterday revealed he had pushed colleagues to extend quantitative easing beyond government bonds. The arch-dove wants the Bank to buy corporate debt as part of a wider series of reforms to boost lending, particularly to small businesses. Posen has long argued in favour of quantitative easing, and believes [...]
Brits’ savings dwarfed by large Chinese nest eggs February 2, 2012 CHINESE people save around nine times more than Britons, as a proportion of income, according to figures released yesterday. Since 2001 the savings ratio in China spiked from 27 per cent to a staggering 47 per cent, according to research from Lloyds TSB. In the UK the recession saw the savings ratio rise to seven [...]
Recession will cause unemployment to be permanently higher, think tank says February 2, 2012 THE FINANCIAL crisis will leave the UK with a higher rate of structural unemployment, and even when the economy recovers joblessness will remain elevated, according to a report published today by the National Institute for Economic and Social Research (NIESR). Economic output will fall by 0.1 per cent over 2012 as a whole, before recovering [...]
American jobs market showing signs of gradual recovery, new data shows February 2, 2012 NEW claims for unemployment benefits in the US fell more than expected last week, pointing to more healing in the nation’s battered jobs market. Data on jobless claims zigzagged over the last few weeks, but the figures suggest employers are less eager to lay off workers, offering hope they could also step up hiring as [...]
Construction sector still expanding but rate slows February 2, 2012 THE WEAK UK housing market and cuts to government building budgets have slowed growth in construction activity, Markit’s purchasing managers’ index (PMI) showed yesterday. The headline index fell from 53.2 in December to 51.4 in January, while the employment index fell to 50 – the no-change mark. Construction output has now increased for 13 consecutive [...]
