UKFI warns on bank splits January 27, 2011 THE manager of the government’s stake in RBS and Lloyds defended the structure of the UK’s biggest banks, hitting back at advocates of splitting them into retail and investment arms yesterday. Sir David Cooksey, chairman of UK Financial Investments, which administers the government’s shares in the lenders, argued that breaking up banks would destroy their [...]
Banks defend fees as OFT slams equity underwriting January 27, 2011 THE OFFICE of Fair Trading (OFT) strongly criticised the UK’s equity underwriting market for a lack of competition yesterday, but stopped short of referring it to the Competition Commission as banking bodies defended the industry. The OFT urged companies and institutional shareholders to pressure firms to barter for equity underwriting fees, after it found prices [...]
US crisis report hurt by politics January 27, 2011 THE FINAL report from the 10-member Financial Crisis Inquiry Commission (FCIC) into the causes of the US financial crisis, issued yesterday, was marred by political wrangling. Just six Democratic members of the 10-member panel endorsed the final 545-page report, with four Republican members dissenting, ensuring that the impact of the commission’s work on policy-making will [...]
BoE: Double cash ratios January 27, 2011 MINIMUM capital ratios for banks must be doubled in order to provide sufficient protection against future financial crises, the Bank of England argued yesterday. In a discussion paper, the Bank slammed current Basel III rules on capital requirements as “too weak”, and said banks should be made to hold equity capital equal to between 16 [...]
Colgate and P&G report sluggish sales January 27, 2011 Procter & Gamble (P&G) and smaller rival Colgate-Palmolive were both hurt by sluggish sales in the US and Western Europe. P&G says it remains confident and expects shoppers to buy new, higher-priced products as the year progresses. Chief executive Bob McDonald said: “We believe that we’re in the midst of a recovery”. Profits at both [...]
Johnson: Friday night’s all right for fighting January 27, 2011 ENGLAND boss Martin Johnson insists a Friday night showdown in Wales will “get the blood flowing” and provide the perfect setting to kick off his side’s RBS 6 Nations campaign. Next week’s highly-charged encounter with age-old rivals will demand that England hit the ground running if they are to mount a serious challenge for a [...]
BP faces legal action over Rosneft deal January 27, 2011 RUSSIAN billionaires involved in BP’s Russian venture TNK-BP yesterday took legal action to block BP’s $16bn (£10bn) share-swap with Russia’s state-owned oil group Rosneft. The four partners in TNK-BP, who operate through a group named Alfa-Access-Renova, claim that BP’s deal with Rosneft might breach earlier agreements that give TNK first refusal on any BP activity [...]
World Cup doubt as England venue axed January 27, 2011 FRESH doubts were raised about the suitability of the subcontinent as a venue for the upcoming World Cup after the International Cricket Council adjudged one of India’s most iconic venues, Eden Gardens in Kolkata, not fit for purpose. The 100,000 capacity stadium was due to host England’s Group B match against the co-hosts on 27 [...]
Amazon fails to wow investors January 27, 2011 Amazon.com last night forecast lower margins than some investors hoped for, reflecting the costs of its growth strategy, and shares of the world’s largest online retailer plunged 8.5 per cent. The company, which was widely believed to have enjoyed a stellar holiday season as it took market share from competitors, also posted fourth-quarter revenue that [...]
Microsoft gets business boost January 27, 2011 Microsoft surprised Wall Street with better-than-expected profits, but its shares stayed flat as investors worried about the weakness of computer sales amid a faltering US recovery. It reported second-quarter profits of $6.63bn (£4.17bn) compared with $6.66bn a year earlier. Sales rose five per cent to $19.95bn, helped by strong sales of its Kinect hands-free gaming [...]
