Avis Budget to pay £636m for Avis Europe June 14, 2011 Care hire company Avis Budget has agreed to buy its European counterpart Avis Europe for £636m in cash to create a group with revenues of $7bn (£4.3bn). The 315p-per-share offer is at a 60 per cent premium to Avis Europe’s share price at yesterday’s close and will reunite the two companies after 25 years. The [...]
Barclays goes it alone on PPI compensation June 13, 2011 BARCLAYS surprised its rivals yesterday by promising to settle customer complaints about its mis-selling of insurance with “no questions asked”. The decision means that the bank is likely to pay out the £1.1bn it has earmarked for the costs of wrongly selling payment protection insurance (PPI) far quicker than other banks will spend their provisions. [...]
HSBC could wind down US cards business June 13, 2011 HSBC will run off its US cards business, valued at some $6-10bn by analysts on deposits of $33bn (£20bn), if it can not find a buyer for the assets, said chief executive Stuart Gulliver. “If we can’t find a buyer we will put it into rundown,” he said, in his first definitive statement that the bank [...]
Just-in-time is on the rocks but not sunk yet June 13, 2011 DURING Japan’s rise, its companies developed the just-in-time method of manufacturing, allowing greater efficiency of production. Following the devastating Tohoku earthquake earlier this year, manufacturers across the world – including Toyota, which pioneered the just-in-time production system – suffered, and continue to suffer, from disruption to their global supply chains. Many companies have bounced back [...]
FSA extends PPI mis-selling settlement time June 13, 2011 The City watchdog has extended the amount of time the banks have to settle claims for mis-selling payment protection insurance while Barclays has pledged to fully compensate thousands of customers. Barclays has committed to settle tens of thousands of outstanding claims over the scandal, putting pressure on rivals to follow suit. The Financial Services Authority [...]
China’s money supply and bank lending fall June 13, 2011 China’s money growth slowed to a 30-month low in May and banks extended fewer new loans than expected as tight monetary policy weighed on bank lending. Despite signs that growth in the world’s second-biggest economy is cooling slightly, ongoing stubbornly high inflation is expected to persuade the government to keep its foot on the credit [...]
CITY MOVES | WHO’S SWITCHING JOBS June 9, 2011 Barclays Wealth Calum Brewster has been appointed as a director within Barclays Wealth’s wealth management and private banking business, based in Glasgow. Brewster will join on 21 June from Lloyds Banking Group, where he is head of customer experience and strategy in the life pensions and investment division, responsible for a team of 150 staff. [...]
FTSE falters as retailers slide June 9, 2011 Stocks defied downbeat expectations to post gains this morning but have since downhill after a number of UK retailers said sales were falling. Heavyweight banking stocks are also down following yesterday’s Treasury Select Committee debate over whether to ringfence their operations, and Vince Cable’s attack on their lending levels on Tuesday. State-backed Lloyds Bank is [...]
OIL SURGES AFTER OPEC STALEMATE June 8, 2011 THE PRICE of oil jumped yesterday after cartel Opec failed to agree a deal to increase its output, making future supply uncertain and raising concerns over the economic recovery. Brent crude spot prices rose 2.1 per cent to $117.84 a barrel after Opec’s meeting in Vienna ended without deciding whether the 12 members should raise [...]
Bank chiefs clash on plan for ringfence June 8, 2011 THE heads of Britain’s four biggest lenders were at loggerheads over banking reform yesterday, with RBS chief Stephen Hester saying that the Vickers Commission’s proposals would “increase systemic risk” while HSBC chairman Douglas Flint said they are “required” to protect depositors. Following business secretary Vince Cable’s latest attack on banks for insufficient lending yesterday, the [...]