Old Mutual earnings dive as new business is hard to find August 5, 2009 OLD MUTUAL, the insurer listed jointly in the UK and South Africa, reported a bigger-than-expected drop in statutory profits yesterday, despite making improvements at its troubled US life business. South Africa’s largest insurer said its earnings were boosted by investment returns from its US bond portfolio, offsetting weakness in Europe and South African arm Nedbank. [...]
IS LLOYDS BANKING GROUP NOW OVER THE WORST OF ITS WOES? August 5, 2009 SANDY CHEN PANMURE GORDONAlthough management expects impairment to abate in the second half of 2009, this is not usually what happens in the trough before a recession. We expect that book value of equity per share will continue to be eroded by further losses. We are comfortable with our full-year forecast of -35p earnings per [...]
WHAT LIES BEHIND THE PROFIT FALLS AT STANDARD LIFE? August 5, 2009 BARRIE CORNES PANMURE GORDON“Standard Life has reported a slightly disappointing set of first-half figures. The miss on statutory profitability stems from lower management charges, Canadian property and other assets on its balance sheet. We maintain our “Hold” recommendation.” DUNCAN HALL FINNCAP“The statutory reporting method does tend to depress profits. The general feeling is that Standard [...]
Small but perfectly formed August 4, 2009 THE FACTS:MINI JCW CONVERTIBLE6-SPEEDMANUAL PRICE: £23,4700-62MPH: 6.9secsTOP SPEED: 146mph (limited)CO2 G/KM: 169g/kmMPG COMBINED: 39.8 THE Met office came in for flak last week after admitting its forecast for a “barbecue summer” was just a little wide of the mark. Darn that jet stream. Well, I’ve come to learn during my road-testing years that waiting for [...]
A drop in stocks and a rise in QE will undermine sterling’s rally August 4, 2009 IN THE face of a ballooning fiscal deficit, quantitative easing and the deepest recession since the Second World War, sterling rose to a nine-month high against the dollar of $1.7005 in Asian trading yesterday morning. And against the euro, it is just shy of the June highs of €0.8426. It’s hard to believe that as [...]
OPTIMISM IN THE POUND IS MISPLACED August 4, 2009 BORIS SCHLOSSBERGDIRECTOR OF CURRENCY RESEARCH, GFT BY ANY reasonable measure the recent rally in the pound appears to be overdone. The UK economy is still in the midst of the worst recession in the post-war era. The UK fiscal budget deficit is projected to exceed 12 per cent of GDP – the highest among all [...]
The firm that has risen above the Magic Circle August 4, 2009 THE Magic Circle model is in need of a re-engineering.” In light of recent revelations about the impact of the economic downturn on City law firms, that statement might not qualify as controversial. However, it’s noteworthy because it is a view espoused by Nigel Knowles, co-chief executive of DLA Piper, the newly-anointed “biggest law firm [...]
TAX CODE THREATENS UK BANKING August 4, 2009 ARABELLA SAKERPARTNER, MAURICE TURNOR GARDNER LLPHM Revenue & Customs recently published a consultation on a new code of practice on taxation for banks, setting out new rules with which banks are expected to comply “in light of the significant taxpayer support” that has been given to the industry. Although voluntary, banks which don’t sign up [...]
Observer fate will be known by autumn as losses mount August 4, 2009 The fate of The Observer, the world’s oldest Sunday newspaper, could be revealed within months, as parent company Guardian Media Group (GMG) mulls ways to control its losses. GMG chief executive Carolyn McCall has confirmed in an internal email that the closure of the 218-year old weekly is an option that a panel of senior [...]
BOTTLING IT August 4, 2009 DRINKS giant PepsiCo yesterday said it had secured a $7.8bn deal to take over its its two largest bottlers, Pepsi Bottling Group and PepsiAmericas. The group said that the takeover will save it £300m by 2012. PepsiCo is battling slumping sales as consumers are increasingly cutting out fizzy drinks. PepsiCo will pay Pepsi Bottling Group [...]
