Eurozone told to brace for another year of recession December 6, 2012 THE EUROPEAN Central Bank (ECB) slashed the currency area’s growth forecasts yesterday, predicting another year of recession as the battered peripheral economies struggle to turn their fortunes around. President Mario Draghi now expects Eurozone GDP to fall by 0.3 per cent next year, well down on its previous forecast for growth of 0.5 per cent. [...]
Careful, chancellor: there is good austerity and bad austerity December 6, 2012 THERE are many reasons why the economy is underperforming. One of them is that George Osborne has been dishing out the wrong kind of austerity. Don’t get me wrong: the chancellor is right to want to cut the deficit by 9.2 per cent of GDP. But the speed and composition of the plans are wrong. [...]
Apple hit by Chinese iPhone sales worries December 6, 2012 APPLE’S market capitalisation fell below $500bn yesterday following news that the iPhone maker had fallen behind competitors in the crucial Chinese market. Although the stock recovered to finish slightly up yesterday, Apple has still lost more than eight per cent of its value this week, and is far below September’s $659bn value. Researchers IDC said [...]
What the other papers say this Morning December 6, 2012 FINANCIAL TIMES Regulator sat in on Deutsche audits German regulators were briefed about Deutsche Bank’s valuation of a clutch of complex derivatives now under investigation by the Securities and Exchange Commission. The revelation potentially sets up a transatlantic regulatory conflict with US investigators. Deutsche reiterated a statement that the allegations were “wholly unfounded”. The bank’s [...]
Pharma firms hit by EU ruling December 6, 2012 The European Union’s highest court has upheld a €52.5m (£42m) antitrust fine levied against AstraZeneca for blocking the entry of cheaper rivals to its then bestseller ulcer drug Losec. The decision is a blow for the British drugmaker and the wider pharmaceutical industry, which will in future have to take greater care not to overstep [...]
More bidders enter RBS sell-off December 6, 2012 Two private equity giants are to team up and enter the race for 316 Royal Bank of Scotland branches, it emerged last night. JC Flowers and Apollo Global Management, two of the biggest buyout houses in the world, are understood to be on the cusp of launching a joint venture to bid for the branches, [...]
US and Ireland tax evasion pact December 6, 2012 The United States and Ireland have agreed to share information about wealthy citizens’ financial accounts in a pact intended to combat tax evasion, another in a series of bilateral deals announced in recent weeks by the US Treasury Department. The deals are part of the implementation of the US Foreign Account Tax Compliance Act, or [...]
StanChart set for another $330m US fine December 6, 2012 SHARES jumped in British bank Standard Chartered yesterday, as it revealed its final fine for breaking US sanctions against Iran will be smaller than previously feared. It expects to pay $330m (£205.6m) to regulatory authorities including the Federal Reserve, the Department of Justice, the Treasury department and the local district attorney. That takes Standard Chartered’s [...]
HSBC expects to be hit with $1.8bn charge over laundering December 6, 2012 HSBC is likely to face a bigger than expected fine from the US authorities, after lax controls allowed terrorists and drug dealers to launder money through its accounts. The bank had already pencilled in a $1.5bn (£935m) hit, but it is now thought the fine could come in at $1.8bn. But markets held steady, as [...]
Barclays unveils final plan to combine African banking units December 6, 2012 BARCLAYS yesterday announced African bank Absa is taking over its banking operations in the continent, while the British bank is increasing its majority shareholding in Absa. The consolidation is worth 18.33bn rand (£1.3bn) in shares and increases Barclays’ stake in the bank from 55.5 per cent to 62.3 per cent. The combined firm will be [...]
