WHAT THE OTHER PAPERS SAY THIS MORNING May 24, 2010 FINANCIAL TIMES AIA CHIEF IN THREAT TO QUIT OVER PRU DEAL AIA’s chief executive has told friends and industry executives that he would quit if the UK’s Prudential succeeded in its $35.5bn (£24.6bn) takeover of the Asian businesses of AIG. Mark Wilson has said he would step down once the deal closed because the proposed [...]
Speculators bet against sterling May 24, 2010 Speculators bet against the pound at record levels despite the gradual lifting of uncertainty as the new coalition government unveiled more of its plans. Figures from the Chicago Mercantile Exchange showed speculators had extended bets against sterling to 76,745 contracts from 72,188, equivalent to £4.7bn, in the week to May 18 – a week after [...]
Pension deficits at £160bn May 24, 2010 The UK’s largest private pension plans have racked up a £160bn shortfall, according to a study. The combined deficit on FTSE350 retirement plans has more than trebled from £49bn last March, the report from consultants Mercer showed. The shortfall is smaller than the £170bn reported in early 2010. Mercer’s Deborah Cooper said:?“Events in the wider [...]
Banks face EU levy to insure against crises May 24, 2010 EUROPEAN UNION countries could be forced to impose a levy on their banks to help fund an insurance scheme that would protect against future banking failures. Michel Barnier, the EU internal market commissioner, will announce the plan – which could raise billions of euros – tomorrow and hopes to pass legislation by the end of [...]
ECB increases emergency bond buy-up May 24, 2010 THE European Central Bank (ECB) had snapped up at least €26.5bn (£22.8bn) worth of government bonds by the end of last week. It bought a minimum of €10bn bonds in the second week of a programme supporting a rescue package masterminded by the International Monetary Fund (IMF). The purchases typically take 2-3 days to settle, [...]
Libor rises to highest level in 10 months May 24, 2010 THE COST of borrowing dollars on London’s inter-bank lending market has soared to its highest level in almost ten months, on fears that banks exposed to the European debt crisis could fall into serious difficulties. The three-month Libor edged above 0.5 per cent for the first time since July, amid concerns another liquidity crisis is [...]
IMF tells Spain to introduce wide-ranging labour reforms May 24, 2010 SPAIN must make far-reaching, comprehensive reforms, including labour market reforms, and its economic recovery remains fragile, the International Monetary Fund (IMF) said yesterday. “The challenges are severe: a dysfunctional labour market, the deflating property bubble, a large fiscal deficit, heavy private sector and external indebtedness, anemic productivity growth, weak competitiveness, and a banking sector with [...]
Economists warn of more pain to come May 24, 2010 THE spending cuts announced by the new coalition government yesterday amount to just one tenth of the fiscal tightening that will be needed to repair Britain’s parlous public finances, according to the Institute for Fiscal Studies (IFS). The bleak assessment came as chancellor George Osborne detailed £6.2bn of spending cuts that he said would make [...]
ECONOMIST VIEWS: DO THESE CUTS GO FAR ENOUGH? May 24, 2010 ROBERT CHOTE | IFS “Since £500m is being recycled, and £704m does not have to be found until next year, the likely reduction in borrowing in 2010-11 is around £5bn. This is less than a tenth of the fiscal repair job Alistair Darling’s March 2010 Budget suggested will be needed over the next few years.” [...]
WHERE THE AXE WILL FALL | WHO WILL BE AFFECTED? May 24, 2010 • Local Authorities £1.165bn of savings will be made by reducing grants to Local Authorities. The Government will also remove the ringfences around over £1.7bn of grants to local authorities in 2010-11, to give them greater flexibility to re-shape their budgets and find savings. • Health and defence Savings in these protected areas will be [...]
