Gap falls after cutting forecasts May 19, 2011 Shares in clothing retailer Gap fell 13 per cent after it slashed its full-year profit outlook yesterday on rising cotton and production costs. Net income in its first-quarter, which ended on 30 April, fell 22.8 per cent to $233m (£144m), or 40 cents per share, from $302m, or 45 cents per share, a year earlier. [...]
EU bailout funds plan debt sale May 19, 2011 The Eurozone’s bailout funds plan to issue another €3bn to €5bn (£2.6bn to £4.4bn) in bonds within the coming weeks to help to fund Portugal and Ireland’s multi-billion euro rescue funding packages, the EU said yesterday. The European Financial Stabilisation Mechanism (EFSM) and European Financial Stability Facility (EFSF) aim to sell a total of €15.3bn [...]
Gagging order shredded in a blow for Fred May 19, 2011 A SUPER-INJUNCTION taken out by former RBS boss Sir Fred Goodwin was partially lifted by the high court after a peer told the House of Lords of its details yesterday. Liberal Democrat peer Lord Stoneham – whose comments can be reported as they were covered by parliamentary privilege – questioned why events leading up to [...]
Disappointing float debut for Glencore May 19, 2011 GLENCORE shares closed flat yesterday after the launch of conditional trading in the commodities trader. It now has a value of $61bn (£37bn) after raising $10bn in the second-biggest float in London’s history. The company’s owners had hoped for a price rise of five to ten per cent on Glencore’s first day of trading, but [...]
German insurer admits hosting sex party for its best salesmen May 19, 2011 A PROSTITUTE-filled sex party was arranged to reward top salesmen at a subsidiary of the world’s biggest reinsurance company, Munich Re, the firm admitted yesterday. Munich Re’s insurance arm Ergo said the party took place at the Gellert Baths thermal baths in Budapest, where 100 of its best salesmen were given free access to at [...]
New FSA to be EU’s enforcer May 19, 2011 FSA chief Hector Sants yesterday unveiled plans for a new UK regulatory authority that critics say will gold-plate European regulation by “second-guessing” the management of financial institutions. The new Prudential Regulatory Authority, which will take over a portion of the FSA’s functions next year, is to adopt a “forward-looking” approach and will have powers to [...]
Government gears up for fight with banks over lending targets May 19, 2011 THE GOVERNMENT ratcheted up the pressure on the banks yesterday, ahead of new figures that are expected to show that the industry is failing to meet lending targets. As part of the Merlin deal, banks were asked to lend £190bn this calendar year, with £76bn of that going to small businesses. But official figures due [...]
Investec sees upgrades as profits grow May 19, 2011 ANALYSTS upgraded South African lender Investec after its full-year results for the year to March yesterday, despite the bank taking an unexpected hit from a rise in impairments in its private bank, which posted a loss of £91.4m. The bank’s managing director Bernard Kantor told City A.M.: “The problem was Ireland. We wrote off £97m [...]
Focus on wealth management pays off May 19, 2011 AT first glance, Investec has missed forecasts with full-year operating profit of £434m: analysts had been hoping for something nearer the £450m mark. But the South African bank and wealth manager still gained the most in two-months during trading yesterday. A candidate for demotion from the FTSE100, thanks to the entry of mining giant Glencore, [...]
Buying still an option for Close May 19, 2011 FINANCIAL services firm Close Brothers yesterday hinted its buying spree might not be over yet in a bid to boost its stagnant assets under management (AUM). The firm said AUM at its investment management arm were flat at £8.2bn. Close Brothers recently bought financial adviser Cavanagh, although said its financial performance had left it “well [...]
