US shrinks its AIG stake with $18bn sell-off September 10, 2012 SHARES in American International Group, the insurer bailed out by the US government in 2008, dipped yesterday after the US Treasury announced it was selling a $18bn (£11.2bn) stake back to the market. The US Treasury’s public offering, announced by AIG yesterday, will cut its ownership from 53 per cent to around 20 per cent [...]
Recovering taxpayer money on a bailout boosts moral hazard September 10, 2012 THE White House says the AIG shares sale demonstrates its “commitment to recover taxpayer money”. But not, one can’t help noting, to return it to actual taxpayers. And announcing the sale of $18bn of shares at once doesn’t sound like all that much of a commitment to selling at a great price. Still, the American [...]
BlackRock’s Fink pledges lower ETF fees September 10, 2012 BLACKROCK chief executive Larry Fink yesterday announced plans to lower fees on some of its iShares Exchange Traded Fund products with a strategy change this autumn. Speaking at the Barclays’ Global Financial Services Conference in New York, Fink said growing competition in the ETF sector meant the firm was going to unveil a new strategy [...]
Primark helps AB Foods buck market gloom September 10, 2012 PRIMARK owner Associated British Foods said it is set to enjoy a jump in full year profits thanks to a strong performance at the group’s discount fashion retailer, which continued to strike a chord with cash-strapped shoppers. Sales at Primark for the year to 15 September are expected to be 17 per cent ahead of [...]
Analyst Views | What was your reaction to AB Foods’ trading update? September 10, 2012 DARREN SHIRLEY | SHORE CAPITAL ABF has issued an update that has confirmed strong momentum has been sustained through Q4… In our view, the continuing strength of ABF’s performance in an increasingly challenging consumer environment further demonstrates that Primark is possibly the most potent retail format in the UK. GRAHAM JONES | PANMURE GORDON ABF [...]
Dixons begins bond buyback September 10, 2012 DIXONS Retail yesterday launched a tender offer to buy back half of the £160m bonds it is due to repay in November, giving investors a further sign of confidence over its financial position. The electronics retailer, which earlier this week reported robust quarterly results, is offering to buy back £80m of its outstanding 6.125 per [...]
Betfair fights Cyprus ruling September 10, 2012 ONLINE gambling group Betfair has complained to the European Commission about restrictions on its business in Cyprus. Betfair argued yesterday that any ban on betting exchanges is discriminatory and disproportionate and so breaches EU law. “Current Cypriot law goes against European free market principles,” said Betfair chief legal and regulatory officer Martin Cruddace. The firm’s [...]
Lloyds joins SME loan price war September 10, 2012 CHEAP funds from the government filtered through to small and medium sized enterprises (SMEs) yesterday as Lloyds became the latest bank to cut borrowing costs. It comes a day after RBS announced a similar move to cut rates for manufacturing firms, while several leading banks cut mortgage rates last month. The Bank of England is [...]
HSBC pledges to lend £1bn to boost UK home improvements September 10, 2012 HSBC has pledged to make £17bn available for UK mortgage lending this year, including £1bn for home improvement loans. The figure is a £2bn increase on the amount the bank promised in January, reflecting the coalition’s recent proposals to relax planning laws for homeowners. The government last week announced plans to soften planning rules for [...]
LK Bennett hires former Emilio Pucci boss as its chief executive September 10, 2012 LK BENNETT, the upmarket clothing and footwear chain, said yesterday it has hired the former boss of Italian luxury fashion brand Emilio Pucci to be its new chief executive. Didier Drouet, who will take up the post with immediate effect, replaces Robert Bensoussan, the retailer’s executive chairman who has acted as chief executive since Margaret [...]
