UK faces credit downgrade, warns Pimco January 5, 2010 THERE is an 80 per cent chance Britain will lose its “AAA” credit rating if drastic action to reduce the budget deficit is not taken, according to Pacific Investment Management Co (Pimco). Scott Mather, head of the American investment group’s global portfolio management, slammed the UK’s debt reduction plan, saying it is “lacking in conviction [...]
US factory orders increase but new home sales tumble January 5, 2010 THE upswing in the US economy was underlined yesterday as the latest government figures showed new factory orders rose 1.1 per cent, their third straight monthly increase. Inventory figures for November continued the recovery trend by growing for the second month in a row with a 0.2 per cent rise. After stocks fell for more [...]
Iceland in bid to block £3bn payout to UK January 5, 2010 ICELAND’S President Olafur Grimsson has refused to sign into law a bill to repay more than $5bn (£3.1bn) that was lost by British and Dutch savers when the island’s banks collapsed. The country’s parliament initially passed the bill on New Year’s Eve but the President’s move yesterday now means that under the constitution a referendum [...]
FSA GETS TOUGH January 5, 2010 CITY regulator the FSA may up its penalties after fining a record number of firms last year. New rules could see guilty firms fined up to 20 per cent of turnover and individuals fined up to 40 per cent of their salary and bonuses. Margaret Cole, director of enforcement (pictured) said the watchdog was embracing [...]
Festive cheer as Next hikes profit targets January 5, 2010 NEXT has increased its full-year profit forecast after reporting an unexpected boost in sales. The fashion retailer’s like-for-like sales grew by 3.2 per cent in the 22 weeks to Christmas Eve. It has now raised its full-year profit forecast to between £490m and £500m – above its previous estimate of £472m. In a statement Next [...]
JOHN LEWIS SMASHES RECORDS January 5, 2010 BELLWETHER retailer John Lewis posted a surge in sales over the Christmas period, including its best ever week’s trading, and forecast a slow recovery in consumer spending in 2010. “As the year progresses we expect to see a long slow recovery with the retailers who continue to focus on giving customers what they want prospering,” [...]
LINKS OF LONDON FORECASTS FURTHER GROWTH THIS YEAR January 5, 2010 STRONG Christmas trading helped luxury jeweller Links of London enjoy a record year despite the recession. The company yesterday said it expected sales for 2009 to be up at least 28 per cent on the previous year’s figure in excess of £60m. Sales for 2007 were just over £45m. Links, known for its popular “sweetie [...]
Shop Direct sales surge on internet January 5, 2010 LITTLEWOODS owner Shop Direct enjoyed a 6.3 per cent sales rise in the run-up to Christmas as shoppers flocked to buy over the internet. The home shopping group, which also operates the Woolworths.co.uk, Kays and Very.co.uk brands, said online sales were up 19 per cent on the previous year in the six weeks to 1 [...]
CITY VIEWS: WHAT DO YOU THINK CHRISTMAS HAS BEEN LIKE FOR THE HIGH STREET THIS YEAR? January 5, 2010 ANDY STEWART | FIDESSA “It didn’t seem that busy, personally. Possibly slightly better than the shops might have anticipated earlier in the year. Hopefully the redundancies are coming to an end and it will have a knock-on effect.” CHARLOTTE HAZLETON | ICAP “I shopped the week before Christmas and did go to John Lewis – [...]
MARKS AND SPARKS BOSS ROSE SUFFERS A SARTORIAL SETBACK January 5, 2010 IT’S a good job Marks and Spencer boss Sir Stuart Rose can look forward to updating the market later today on his firm’s encouraging trading over Christmas, since The Capitalist can reveal he’s about to suffer a disappointment in the style stakes. Rose, you see, has a reputation in the City for being one of [...]
