Accounting gains prop up BoA earnings October 18, 2011 BANK of America/Merrill Lynch (BoA/ML) reported a dramatic rise in profits yesterday, with earnings rising from a $5.9bn (£3.75bn) loss last year to $7.4bn in pre-tax profit for the third quarter of this year. However, $1.7bn of the profit figure was due to an accounting gain that has also affected the results of other US [...]
CFTC approves plans to crackdown on spectators October 18, 2011 THE US pushed through its toughest measures yet to curtail speculation in commodity markets in a tight vote yesterday, likely shifting the focus of a fierce four-year debate from the regulators to the courts. In a measure decried by Wall Street and trading companies as a misguided political attempt to cap soaring oil and grain [...]
EU reaches deal on naked short selling ban law October 18, 2011 THE EU agreed last night to ban naked credit default swaps (CDS) on sovereign debt in an attempt to curb what some policymakers see as hedge fund bets on the Eurozone crisis. The measure had been deadlocked for months because of a split between the European Parliament and EU states, which have joint say. The [...]
Italy’s banks facing higher funding costs October 18, 2011 STANDARD & Poor’s downgraded 24 Italian banks and financial institutions last night, citing renewed “market tensions” and lower growth prospects. It also raised the risk assessment on Italy’s banking industry from group 2 to group 3, which could prompt higher borrowing costs. Meanwhile jittery investors moved out of French bonds yesterday. The move was prompted [...]
World’s largest exporter suffering from contraction in global demand October 18, 2011 WHILE China’s 9.1 per cent growth recorded for the third quarter of the year may have disappointed analysts — with some still questioning the reliability of the government’s uber-fast estimates — it is little surprise that the world’s largest exporter is facing a hit from the global economic slowdown. The third quarter involved two months [...]
Slowing growth in China spooks global investors October 18, 2011 CHINA’S economy grew 9.1 per cent in the third quarter from a year earlier, its weakest pace since early 2009, and just below market forecasts. The country’s growth slowed from 9.5 per cent in the second quarter of the year, according to official figures released yesterday. The bearish news contributed to some sharp drops in [...]
CITY VIEWS: HAVE YOU NOTICED RISING PRICES IN YOUR EVERYDAY LIFE? October 18, 2011 DAVID PHILLIPS | JRP UNDERWRITING “Yes, on a daily basis we hear about extremely high rises in every day living expenses, it doesn’t worry me just yet but if it gets any worse then it will be something we seriously need to worry about.” SHANE KILLEEN | PERCEPTION “I haven’t particularly noticed a large increase [...]
Fastest price rises since CPI began in 1996 October 18, 2011 CONSUMER prices increased at a record rate in the year to September, the Office for National Statistics (ONS) said yesterday. The consumer price index (CPI) rose to 5.2 per cent – the highest since it was introduced in 1996, and equal to the peak in September 2008. The figure was 4.5 per cent in the [...]
Inflation-linked benefits bill set to soar in 2012 October 18, 2011 BENEFITS will cost billions more due to soaring inflation, the Institute for Fiscal Studies (IFS) claimed yesterday. Pensions, job-seekers’ allowance, incapacity benefit and severe disability allowance are all linked with consumer price index (CPI) inflation. Next April’s increases are calculated using September’s rate, the highest ever. When the Office for Budget Responsibility increased its inflation [...]
Canaccord on stand-by for Evolution bid October 18, 2011 CANACCORD Financial, the Canadian financial services group, was waiting on the sidelines yesterday as Investec’s £200m-plus all-share takeover of Evolution Group hit problems. Canaccord pulled out of the bidding last month, leaving Investec as preferred bidder. Under Takeover Panel rules Canaccord is barred from relaunching a takeover for six months but yesterday those close to [...]
