Inflation forecast to stay stubbornly high June 13, 2010 INFLATION data out this week is likely to cause a further headache for the Bank of England’s Monetary Policy Committee (MPC) after data on Friday showed the public’s expectations of long-term inflation had shot up sharply. The MPC has long argued it would look through what it sees as a temporary spike in inflation. But, [...]
SHOULD THE MPC BE WORRIED ABOUT THE RISE IN INFLATION EXPECTATIONS? June 13, 2010 MICHAEL SAUNDERS | CITIGROUP “Signs that high CPI and RPI figures are lifting inflation expectations are bound to worry the MPC. The MPC takes the inflation target seriously and it cannot stand by if it loses credibility. So far, longer-term inflation expectations remain fairly stable, combined with early fiscal tightening will keep the MPC on [...]
Supermarket showdown as rivals report June 13, 2010 SUPERMARKET giants Tesco and J Sainsbury are this week expected to report fairly flat sales growth for the first quarter of the year, signalling a slowing of consumer activity across the food sector. Tesco is expected to report sales growth of between zero and 1.5 per cent tomorrow for the first quarter according to analysts, [...]
China takes Club Med stake June 13, 2010 CHINA’S largest non-state holding, Fosun, has acquired 7.1 per cent of holiday resort group Club Med, the first time a quoted Chinese group takes a direct holding in a high-profile listed French company. Club Med hopes to make China its second-biggest market in the next five years while Fosun is keen to invest in Club [...]
GMC sniffs at gold mining targets after Plus listing June 13, 2010 GOLD Mining Company (GMC), a venture set up to invest in the precious metals sector, will today make its debut on the Plus stock market, having raised £820,000m in cash via a placing of 37m new shares. GMC said its listing would provide the company with better opportunities for exposure to the robust gold and [...]
Tesco is a better pick than Sainsbury’s June 13, 2010 THOSE looking for proof the UK is going to bump along the bottom for a while before making a convincing exit from recession need only look at this week’s supermarket sales figures. Now the comparatives are beginning to get tougher, things are looking decidedly lacklustre. Analysts at RBS reckon J Sainsbury will report flat UK [...]
CITY MOVES | WHO’S SWITCHING JOBS June 13, 2010 Bupa The healthcare provider has appointed Rita Clifton to its board as a non-executive director, effective from July. Clifton is also a director at DSG International and chairman of brand consultancy Interbrand. She began her career in advertising at DMB&B and J Walter Thompson, before joining Saatchi and Saatchi in 1986, where she became vice-chairman [...]
Centrica looks hard at its nuclear option June 13, 2010 CENTRICA’S finance director Nick Luff is busy trying to work out if the new coalition energy secretary Chris Huhne is a man the country’s largest gas and electricity supplier can do business with. Huhne – a Liberal Democrat – had previously described nuclear power as a “failed technology.” But that was before he scented the [...]
South Korea unveils currency controls June 13, 2010 SOUTH Korea yesterday unveiled long-anticipated currency controls, saying it aimed to curb the rapid shifts in capital flows linked to short-term foreign debt and posed a risk to the world’s ninth-biggest exporter. The authorities, alarmed by the won’s sharp swings during recent market turbulence caused by Europe’s debt problems, have been priming investors for weeks [...]
Tax is a matter for UK government, not the EU June 13, 2010 THIS week, in a speech to leading figures from across the financial services industry at Mansion House, George Osborne will outline the government’s plans for reform within the banking sector. One of the most significant proposals I have no doubt the Chancellor will touch upon is his determination to introduce a “bank tax” in the [...]
