CITY VIEWS: ARE THE TORIES RIGHT TO PROPOSE A PUBLIC-SECTOR PAY FREEZE? October 7, 2009 STEVE RYAN AXA“Yes I think it’s the right thing to do. There are other things they could do as well to cut the fiscal deficit. I’m worried about the government’s debts for my children’s sake – they will be the ones who pick up the bill. For a very long time Gordon Brown has been [...]
AT-A-Glance October 7, 2009 • Action on failing schoolsMichael Gove, the shadow schools secretary, promised that failing schools would be closed within 100 days of a Tory government assuming power, adding that teachers would also be given the power to restrain violent pupils to crack down on problem children. • Police to name and shamePolice services would be given [...]
Firms’ profits staying weak October 7, 2009 BRITISH corporate profitability deteriorated to its weakest level in eight years during the second quarter of 2009, official data showed yesterday, driven by a fall in oil and gas companies’ profitability. Figures from the Office for National Statistics (ONS) showed that the net rate of return by private non-financial corporations in the second quarter of [...]
US consumer credit down as appetite for debt diminishes October 7, 2009 TOTAL US consumer credit fell by a greater-than-expected $11.98bn (£7.5bn) in August, according to Federal Reserve data released yesterday, suggesting consumers are opting to cut their debt rather than spend. Analysts said the drop, the seventh consecutive monthly decline, was unsurprising given the high level of unemployment, and was further confirmation that consumers would not [...]
Eurozone economy shrinks more than expected in second quarter October 7, 2009 THE Eurozone economy shrank by slightly more than expected in the second quarter of 2009, official data revealed yesterday, but the 0.2 per cent contraction in the single currency bloc indicated the economy was nonetheless close to stabilisation. Germany and France, which both recorded 0.3 per cent quarter-on-quarter growth in the three months to June, [...]
COSTCO PROFITS DIP October 7, 2009 COSTCO said a stronger dollar and higher staff health care costs helped drive its fourth-quarter profit down six per cent to $374m yesterday, but the members-only warehouse club chain still beat analysts’ expectations. Costco has been one of the stronger retailers during the recession because of its focus on lower priced goods.
Uncertainty will see QEand rates held October 7, 2009 QUANTITATIVE EASING (QE) and interest rates should both be kept on hold this month, according to a majority of City A.M.’s shadow monetary policy committee (MPC) ahead of the Bank of England’s decision due at midday today. While seven members voted for no change, Henderson New Star’s Simon Ward, who advocates suspending QE, argues that [...]
CITY A.M. SHADOW MPC October 7, 2009 ALLISTER HEATH CITY A.M.“Weak money supply growth masks the strong likelihood that the demand for money has dropped, which suggests that there is now enough liquidity in the economy. So the Bank should start winding down QE.” SIMON WARD HENDERSON NEW STAR“Hold rates, suspend QE. Asset price strength and pound weakness suggest excess liquidity. Sluggish [...]
Sportingbet’s profits surge October 7, 2009 ONLINE gaming firm Sportingbet yesterday posted a surge in full year pre-tax profit, suggesting it has weathered an economic storm that threatened to destroy it. The group also said it would reinstate its dividend of 1p and unveiled plans to move to a full listing on the main market of the London Stock Exchange. Sportingbet [...]
ARE YOU BETTING ON SPORTINGBET’S RECOVERY? October 7, 2009 NICHOLAS BATRAM KBC PEEL HUNT“Sportingbet’s results are slightly ahead of our expectations and the statement is undoubtedly positive. The dividend payout and news that it will move to an official list shows further signs that the business is developing. But its advances make it a tempting takeover target.” IVOR JONES EVOLUTION SECURITIES“Sportingbet has shown its [...]
