US on the warpath over BP June 9, 2010 US-LISTED shares of BP plunged nearly 16 per cent last night, hitting their lowest level since 1996 as political pressure on the company over its handling of the Gulf of Mexico oil spill mounted and investors worried it might be forced to suspend its dividend. The plunging share price, came amid a growing backlash against [...]
Debt crisis to hurt growth June 9, 2010 PROLONGED uncertainty and turmoil in the Eurozone risk derailing the world economy recovery if heavily-indebted developed countries have to swallow austerity medicine more quickly, the World Bank said yesterday in its latest Global Economic Prospects 2010. While the World Bank expects global GDP growth to be 3.3 per cent in 2010 and 2011, and 3.5 [...]
Populist reaction to BP is dangerous June 9, 2010 THERE is much that is ugly about the BP fiasco. It goes without saying that the firm hasn’t covered itself in glory, that Tony Hayward, its CEO, has suffered from foot in mouth disease and that parts of the US coast are reeling from an en environmental catastrophe. I’ve criticised BP in the past and [...]
Bernanke is still cautious June 9, 2010 FEDERAL Reserve chairman Ben Bernanke said yesterday the US economic recovery was on a solid footing but cautioned it could be years before the jobs lost during the deep recession of 2008-2009 are restored. While Bernanke said the economy had made an “important transition” to relying less on government support, his emphasis on the struggles [...]
WHAT THE OTHER PAPERS SAY THIS MORNING June 9, 2010 FINANCIAL TIMES BACKLASH OVER INDIAN FLOAT RULES India is facing a growing private sector backlash against a rule change that will lead to a flood of more than $50bn of new shares being listed over three years. There are concerns that the move could damage the country’s stock market and hamper economic growth. The Finance [...]
Virgin and BSkyB appeal ruling June 9, 2010 Virgin Media has appealed against an Ofcom decision forcing BSkyB to charge competitors less for its football coverage, saying the ruling doesn’t go far enough. BSkyB has also appealed the communication watchdog’s decision, saying the regulator “acted unlawfully” in imposing conditions on its programme packages. Virgin said the methods used by Ofcom to calculate the [...]
Euro corporate bonds dry up June 9, 2010 European banks sold $11.7bn (£8bn) of corporate bondS in the last six weeks to Friday – less than a tenth the amount they sold this time last year, according to Dealogic. They have raised less from mainstream capital markets in this period than in any time since 1995. Banks are also said to be under [...]
Rogue trader Kerviel called a liar by boss June 9, 2010 ROGUE trader Jerome Kerviel was branded a liar who took “inhuman” risks by a former boss yesterday during a trial over trading losses that brought French bank Societe Generale close to collapse. The bank’s former head of investment banking, Jean-Pierre Mustier, hit back at Kerviel’s claims in court that SocGen tolerated unauthorised trading positions that [...]
IoD says board members can’t cope with new regs June 9, 2010 THE Institute of Directors, led by director general Miles Templeman, has warned that board members are struggling to cope with the amount of new regulation, in guidelines published today. The Director’s Handbook includes advice on dealing with the reams of law and regulation that have been introduced since the credit crisis. Since the last edition [...]
CBI: Cuts must bear down on public sector June 9, 2010 BRITAIN’S huge deficit should be tackled with £4 in spending cuts for every £1 in tax hikes, the CBI said. In a letter to Chancellor George Osborne yesterday ahead of the emergency Budget on 22 June, the CBI warned that the public finances should be repaired without damaging growth prospects. It called for a shake-up [...]
