Coalition papers over cracks May 20, 2010 THE NEW Liberal Conservative coalition government has launched a huge number of commissions and reviews, kicking uncomfortable party differences into the long grass. Prime Minister David Cameron and his deputy Nick Clegg yesterday launched six commissions and 28 reviews into virtually every area of government policy, from the Human Rights Act to long-term care for [...]
Sovereign crisis now the biggest risk May 20, 2010 DOWN, down, down – that is how it has felt in the markets over the past few days. Once again, politicians are making matters worse, with Angela Merkel’s obsession with bashing financial institutions especially disturbing. If she is unhappy with the disastrous state of the Eurozone, she ought to consider focusing her ire on her [...]
Vodafone Egypt in £3bn talks to sell its holding May 20, 2010 VODAFONE could be poised to sell off a majority stake of its Egyptian business, as the telecoms giant is understood to have been approached by one of its rivals in the region. The talks, which are still in the early stages, could see Telecom Egypt acquire more than 50 per cent of Vodafone Egypt valuing [...]
WHAT THE OTHER PAPERS SAY THIS MORNING May 20, 2010 FINANCIAL TIMES BOOK PUBLISHERS FEAR THREAT OF DIGITAL PIRACY Publishers have warned that the fight against illegal copying of digital books could impose a huge cost on the industry, raising fears of a new wave of online piracy. Gail Rebuck, chairman and chief executive of The Random House Group, part of Bertelsmann, said illegal copying [...]
Asian broker rejects Pru forecasts for AIA growth May 20, 2010 ONE of the largest independent brokers in Asia has accused Prudential of “artificially massaging” AIA’s numbers to persuade shareholders to back its $35.5bn (£24bn) takeover. CLSA said Prudential’s management had “resorted to revising embedded value assumptions and using high growth targets” to justify the purchase of AIG’s Far Eastern arm, which will involve tapping investors [...]
National Grid unveils £3bn rights issue May 20, 2010 UTILITIES giant National Grid yesterday shocked the market by revealing plans to tap investors for £3.2bn to keep up with investment demands in a rapidly-changing energy landscape. The firm will issue 2 new shares per 5 existing shares, at a price of 335p – a 43.7 per cent discount to Wednesday’s closing price. Shares in [...]
National Grid May 20, 2010 INVESTORS like certainty, something National Grid yesterday failed to provide making it the biggest falling stock on the FTSE 100. Having previously denied the need for a rights issue, the energy company now says it needs a hefty £3.2bn one to help it finance a £22bn investment in replacing ageing infrastructure and to maintain its [...]
Investec profits rise on asset management push May 20, 2010 SOUTH African bank Investec has seen profits rise 11.3 per cent over the past year despite the challenging environment, with a flood of impairments at its private banking arm offset by a drive to improve its less risky asset management business. Investec posted a pre-tax profit of £409.9m for the year to end of March, [...]
Much to please City but doubts remain May 20, 2010 WHEN George Osborne delivered his first major speech earlier this week, he ended on an upbeat note. He said there was lots the City should be proud of – “pensions, insurance… accountancy and legal services” – but one industry was notable by it’s absence. Yep, you guessed it: banking is still persona non grata, public enemy [...]
HOW THE AGREEMENT AFFECTS THE CITY May 20, 2010 BANKING • The coalition has agreed to impose some kind of levy on the banking industry, although its exact form has yet to be decided. The Tories want to introduce a fee on banks’ wholesale funding, while the Liberal Democrats would prefer a tax on profits. • There is a vague commitment to tackle “unacceptable [...]
