No pleas from Italy: IMF November 28, 2011 ITALY and Spain have not asked the International Monetary Fund for any funding despite fears they will need help beyond a European rescue scheme, its boss Christine Lagarde said last night. She called for a swift solution to the crisis and said the IMF can make loans only when governments ask for them, as happened [...]
WHAT THE OTHER PAPERS SAY THIS MORNING November 28, 2011 FINANCIAL TIMES LLOYDS SET TO EASE PRESSURE ON CHIEF Lloyds Banking Group is exploring ways to reduce the workload on António Horta-Osório, its chief executive, as it attempts to convince investors he will be able to make a successful comeback from a period of medical leave. The state-backed bank is considering fortifying the support around [...]
Greek banks hit by debt haircuts November 28, 2011 Greek lenders Alpha and Eurobank yesterday reported nine-month losses due to impairments from a bond swap agreed in July and said they would adjust their capital raising plans after a new debt exchange plan is finalised. The two lenders have agreed to merge to form one of the largest banks in southeast Europe. Greek banks [...]
Lehman Europe claims $1.4bn November 28, 2011 The European arm of Lehman Brothers yesterday sued a unit of bond insurer Assured Guaranty, claiming more than $1bn for a series of credit derivative transactions. In a lawsuit filed in the US, Lehman Brothers International (Europe) said the unit, AG Financial Products, miscalculated termination payments under the deals, using an incorrect and approach to [...]
Soaring yields push ECB debt over €200bn November 28, 2011 ITALY and Belgium saw their debt costs rocket to new records in bond auctions yesterday in an ominous precursor to Rome’s much larger long-dated debt sale this morning. Despite an early market rally due to reports of a bailout plan for Italy, Rome was forced to pay over 7.3 per cent plus inflation to borrow [...]
Fitch Ratings revises US credit outlook to negative November 28, 2011 FITCH Ratings has cut its outlook on US sovereign debt to negative, after the congressional super-committee failed last week to agree on at least $1.2 trillion in spending cuts. Fitch said yesterday that it will keep its rating for long-term US debt at the top AAA level, but said the negative watch reflected its “declining [...]
Capital flight from periphery accelerating November 28, 2011 MONEY is flooding out of peripheral Eurozone countries and into the core in a worrying sign for the region’s economies, Henderson’s Simon Ward warned yesterday. Examining official statistics released by European authorities, Ward highlighted “a widening core/periphery divergence”, with capital fleeing Greece, Portugal, Ireland, Spain and Italy. “M1” money supply – meaning cash in circulation [...]
Osborne: safe haven status saves £21.5bn November 28, 2011 GEORGE Osborne, the chancellor, will today claim to have saved the taxpayer some £21.5bn in debt interest payments, arguing his deficit reduction plan has kept yields on government bonds at record lows. Osborne is expected to announce the so-called “safe haven dividend” when he delivers his Autumn Statement to the House of Commons this afternoon. It is [...]
EXPECTED ANNOUNCEMENTS November 28, 2011 ● EXTENSION OF FREE CHILDCARE The chancellor is expected to announce £380m a year by 2014-15 to increase the number of two-year-olds eligible for free childcare. Currently, 130,000 two-year-olds are entitled to 15 hours of free childcare a week, but this will increase to 260,000 within four years, equivalent to 60 per cent of two-year-olds from the poorest [...]
Chancellor to unveil £250m to help energy-intensive industry November 28, 2011 THE government will today announce a package of reliefs worth £250m to help offset the crippling impact of its green policies on energy intensive companies. The package, which was first revealed in City A.M. last month, will help those firms who use large amounts of energy such as steelmaker Tata and chemicals specialist Ineos. There will [...]
