Regulator hits State Street with £22.9m fine January 31, 2014 The Financial Conduct Authority has fined State Street £22,885,000 for "a deliberate strategy to charge clients substantial mark-ups on certain transitions, in addition to the agreed management fee or commission" by the bank's Transitions Management business. Those mark-ups had not been agreed by clients, and were concealed from them, said the FCA. Tracey McDermott, director [...]
Britain’s record real wage crisis explained January 31, 2014 Inflation has been outstripping wage growth consistently since 2010, meaning that in real terms wages have been falling since then. It's the longest period since such records began in 1964, says the Office for National Statistics (ONS), as inflation measured by the Retail Price Index remains stubbornly above average weekly earnings growth. The ONS identifies [...]
The power of monetary policy in 4 charts January 31, 2014 The monetary policy responses of Japan and the Eurozone to weak inflation couldn't be more different. Deflation risks At a dovish extreme, you have the Bank of Japan respondingly aggressively to deflation. 2013 saw newly installed central banker Haruhiko Kuroda steer the economy from deflation to inflation in excess of one per cent. While the [...]
Chuka’s convinced he’s not “bling” and thinks he has the solution to PMQs chaos January 30, 2014 Chuka Umunna joked his way through the monthly press gallery lunch in Westminster today, opening by telling journalists that he couldn’t possibly be “bling” because he cuts his own hair. The Shadow Business Secretary managed to navigate an hour or so of speech and questions without a serious stumble, though the relief on his face [...]
3i takes £14m write-down on Hobbs January 30, 2014 Private equity firm 3i denied reports today that it is looking to sell Hobbs after taking a huge write-down in the value of its investment in the fashion group, blaming poor sales over Christmas. The company, which bought Hobbs in 2004 from Barclays Private Equity for £111m, said it was forced to write down the [...]
Savers are getting crushed – despite rising mortgage rates January 30, 2014 Mortgage interest rates are going up – but Britain’s savers are being crushed again by plunging rates on their accounts. This is not the recovery you wanted if you thought you were doing the right thing by saving up for the future. The justification for loose monetary policy has always been that low interest rates [...]
In 3 charts: The UK jobs recovery has a dark side January 30, 2014 Despite a recent and rapid drop in the UK’s unemployment rate, an international comparison by the Office for National Statistics (ONS) today recalls the dismal aspects of the UK labour market. The recent drop in unemployment for the UK is certainly impressive, especially in comparison to stubbornly high Eurozone unemployment rates. British unemployment plunged from [...]
US growth drops to 3.2 per cent in fourth quarter January 30, 2014 Huge US data release today. The big number is the fourth quarter GDP growth stat, down from 4.1 per cent to 3.2 per cent, on an annualised basis. That's bang in line with the consensus forecast. Paul Ashworth, chief US economist at Capital Economics, says that the broad picture is one of diminishing fiscal drag, [...]
Trader mistake sends HSBC shares soaring January 30, 2014 Someone out there is probably feeling very daft right now, after a huge fat finger saw some hefty HSBC price action. A 1.6m share order saw shares rocket. Over 1.6m shares traded on that $HSBA spike to 688p, possibly a #HFT algo ran amok? Expensive mistake if so! #HSBC RO pic.twitter.com/5OtFjki1ty — IGSquawk (@IGSquawk) January [...]
German unemployment rate sees surprise fall in January January 30, 2014 At least one Eurozone country isn't struggling. German unemployment fell by a seasonally adjusted 28,000 in January, much greater than December's 15,000 drop. Economists had expected unemployment to fall by just 5,000. Berenberg's Rob Wood says that this reflects a German economy that "is humming along", with this fall the largest in two-and-a-half years. That [...]
