Markets fly but hangover feared January 2, 2013 MARKETS around the world rallied yesterday after the US agreed an eleventh-hour deal to limit fiscal cliff tax increases and spending cuts, giving equities a much needed boost. The deal averted sharp rises in income-tax for a majority of Americans, but failed to reach any conclusion over cutting the budget deficit, leading analysts to warn the [...]
FTSE rally eludes UK grocery giants January 2, 2013 SUPERMARKET chains Morrisons and Sainsbury’s failed to make the most of UK investors’ New Year optimism yesterday after analysts raised fears that their performance had been less than stellar over the crucial Christmas trading period. Morrisons was one of just three fallers in the FTSE – closing down two per cent – after house broker [...]
Republican deal sets up a new US budget battle January 2, 2013 US REPUBLICANS have threatened to use the debt ceiling as a political tool once again in March, after yesterday’s budget deal included huge tax hikes with little spending reform. The US has once again hit the legal limit for the total it can borrow – set at $16.4 trillion (£10.1 trillion) – and government could [...]
The optimists come out to play for the first day of 2013 January 2, 2013 For those hardy souls returning to work yesterday after the Christmas break the financial markets provided some welcome and slightly unexpected cheer. Talks in the US aimed at averting a stalemate on the so-called fiscal cliff succeeded (just) and a bill that many Republicans dislike because it contains too few spending cuts passed through the [...]
Analyst Views | What does this mean for the world economy? January 2, 2013 KEVIN BURROWES PWC UK banks will breathe a sigh of relief today as the threat of the biggest economy slipping back into a recession diminishes.” KIT JUCKES SOCIÉTÉ GÉNÉRALE 2013 GDP growth is now likely to be 2–2.5 per cent, and the chances of [second half] growth exceeding three per cent are significant.” DAN MORRIS [...]
What the other papers say this morning January 2, 2013 FINANCIAL TIMES BofA raises lending after years of cuts Bank of America is ramping up mortgage and corporate lending after two years of focusing on capital levels and cost-cutting. Chief executive Brian Moynihan said the company should overtake JPMorgan Chase in direct-to-consumer mortgage lending in the next six months and he had directed bankers to [...]
Zipcar makes getaway with $500m in boot January 2, 2013 CAR-SHARING company Zipcar was yesterday bought by rental giant Avis Budget for $500m (£307m), handing the established company the leading position in the fast-growing car club business. Zipcar offers an alternative to car ownership by allowing its members to use thousands of vehicles in cities across the world, with usage charged on an hourly basis. [...]
What’s the secret of Zipcar’s success? January 2, 2013 Q How do customers hire a car using Zipcar? A Users book a vehicle online for any period from one hour upwards. They unlock it using a phone app or membership card and return it to the parking space before their time is up. Q How much does it cost to drive one of the [...]
Hope of bright 2013 in UK lifted by 15-month factory activity high January 2, 2013 ECONOMISTS registered hope for the UK economy after factory data out yesterday put December as the best month since mid-2011. The UK’s manufacturing purchasing managers’ index (PMI) climbed to 51.4 in December, Markit said, a 15-month high, and up from 49.1 in November. This pushed the sector back above the crucial no-change level of 50 and [...]
Legal threat to Portugal cuts January 2, 2013 PORTUGAL’S austerity budget faces a legal challenge after the country’s President yesterday referred the plans to the nation’s supreme court. Aníbal Cavaco Silva wants to ensure cuts to pensions and public sector pay are constitutional because they do not affect all citizens. If the legal challenge is successful the Portuguese government could be forced to [...]
