Obama to set up US debt body February 16, 2010 President Barack Obama will sign an executive order tomorrow setting up a bipartisan commission to propose ways to tackle the ballooning US deficit, which is forecast to hit a record $1.6 trillion (£1 trillion) this year, a senior administration official said yesterday. Obama will name Erskine Bowles, former chief of staff to President Bill Clinton, [...]
WHAT THE OTHER PAPERS SAY THIS MORNING February 16, 2010 FINANCIAL TIMES YOUNG GENERATIONS FACE WEALTH DEFECIT Baby boomers hold so much of Britain’s wealth that a prosperity gap is opening between the generations, with people born after 1970 unlikely to acquire the wealth their parents enjoy, a Conservative shadow cabinet member has warned. David Willetts said in a speech to the London School of [...]
Foreign demand for US debt hit February 16, 2010 China fell behind Japan to become the second-biggest holder of US Treasuries in a sign the Chinese have been acting on recent complaints about US policy by unloading US debt. As one of the biggest creditors of the US, China has complained over the past year about US policies and worried publicly about the security [...]
Renaissance fund hit by a loss in 2009 February 16, 2010 RENAISSANCE Institutional Equities Fund (Rief) has recorded a six per cent full year loss in 2009 following a difficult year for quantitative hedge funds. It has lost 4.42 per cent since its inception in 2005 and the fund’s assets have plunged to $6bn from $26bn in 2007. Launched by Renaissance Technologies, Rief’s plans had been [...]
Icahn moves to up his Lions Gate stake February 16, 2010 ACTIVIST investor Carl Icahn yesterday sought to increase his ownership stake in Lions Gate Entertainment in a move seen as trying to prevent the film company from making an acquisition he would deem undesirable. Icahn has launched a tender offer, valued at a 15 per cent premium to Friday’s closing price of Lions Gate shares, [...]
BC Partners buys Spotless February 16, 2010 UK-BASED private equity group BC Partners yesterday bought Spotless, the French maker of laundry and cleaner products, in a deal valuing the company at €600m (£523.2m). BC Partners is buying the 65 per cent stake owned by Axa Private Equity with the balance being held by management and other minority investors. Axa bought Spotless for [...]
US banks in homes fire sale February 16, 2010 MAJOR US banks are preparing to clear their books of troubled mortgages through “short sales”, where homeowners settle debts by selling their properties for less than the mortgage value. Short sales at banks such as Bank of America, Wells Fargo, JPMorgan Chase and Citigroup are expected to rise this year as house prices continue to [...]
VT slams bid from Babcock February 16, 2010 ENGINEERING firm VT Group will begin urgent talks with its major shareholders today following a £1.1bn unsolicited approach from Babcock, the shipbuilder. Chief executive Paul Lester will warn investors such as Invesco Perpetual and Newton against the “derisory” offer, which was immediately dismissed by VT’s board. Lester will argue that a tie-up with Babcock would [...]
Affluent tax dodgers pay out £373m as HMRC tightens net February 16, 2010 HM REVENUE & Customs’ (HMRC) crackdown on wealthy tax evaders is gathering pace after investigators clawed back £373m last year, an increase of 21 per cent on 2008’s haul. Hedge fund managers and investment bankers were among those targeted by HMRC teams who examined the affairs of more than 50,000 people earning in excess of [...]
Barclays top dogs decline bonuses as they defend ability to reward key staff February 16, 2010 BARCLAYS’ two top executives yesterday moved to soothe populist anger over the City’s remuneration culture by agreeing to forego their 2009 bonuses while emphasising their “gratitude” for state action to prop up the banking system during the crisis. Chief executive John Varley and president Bob Diamond, head of the lucrative investment bank Barclays Capital, declined [...]
