Pru moves to rejig AIA bid May 11, 2010 AIG, the US-government owned insurance titan, is close to giving Prudential the thumbs-up to restructure the $35.5bn (£24bn) purchase of its AIA business in Asia. AIG chief executive Robert Benmosche yesterday told employees in New York the deal would go ahead despite the UK regulator’s concerns over the enlarged group’s capital strength. In March, Prudential [...]
ECB set to buy up to €1.7tr of national debt May 10, 2010 THE European Central Bank could buy up to €1.7 trillion (£1.4 trillion) of securities from troubled Eurozone countries alongside the unprecedented €750bn rescue fund unveiled yesterday. World equities soared as the ECB started buying bonds on secondary markets, lifting the pressure on Greece and Spain after weeks of hammering by speculators. The move came as [...]
Gatwick firm eyes second buyout fund May 10, 2010 GATWICK airport owner Global Infrastructure Partners is understood to be preparing to raise a second $5bn (£3.4bn) fund, braving a still-tough market for infrastructure fundraising. GIP, which also owns London City airport, is thought to have held informal discussions with existing and potential investors about its plans and will kick off fundraising in earnest in [...]
CITY MOVES | WHO’S SWITCHING JOBS May 10, 2010 Conduit Capital Markets The derivatives and securities dealer has hired ex-3i managing partner Bruce Carnegie-Brown as its new non-executive chairman. Carnegie-Brown has been working for 3i since 2007, latterly as managing partner and chairman of the financial services practice. Prior to that, he was chief executive of Marsh, and spent 18 years at JP Morgan, [...]
Pru pushes on with cash call after FSA deal May 9, 2010 PRUDENTIAL was last night on the verge of thrashing out an emergency compromise with the City regulator, clearing the way for the release of its rights issue prospectus this week. The British insurer is locked in talks with the Financial Services Authority over its capital structure after the planned $35.5bn (£24bn) acquisition of AIA in [...]
Credit Agricole is the latest to reveal its Greek debt exposure May 7, 2010 FRENCH bank Credit Agricole revealed a total £2.17bn corporate exposure to Greece today, as debt worries continued to undermine bank and insurance shares. Credit Agricole said its insurance unit had slightly less than £347m in exposure to Greek sovereign debt and its interbank risk exposure was £156m. Credit Agricole shares fell 5.3 per cent in [...]
Swiss Re gears up to repay loan to Warren Buffett May 6, 2010 SWISS Re, the world’s second-biggest reinsurer, boosted its capital by around $3bn (£2bn), giving it confidence it can repay a costly convertible loan from billionaire Warren Buffett and regain a key credit rating. A much improved investment performance also enabled the company to beat profit expectations for the first quarter, despite large natural catastrophe claims [...]
Moving away from equities can pay May 4, 2010 THE markets may have recovered from the credit crunch, but the investment community is still trying to navigate a post-crisis world and reduce portfolio risk. New research by Towers Watson, the professional services firm, has found that although many pension funds and institutional investors still rely on equities to generate their returns, in reality a [...]
EC to rein in derivatives May 3, 2010 EUROPEAN politicians are poised to crack down on derivatives trading after blaming speculators for exerbating fears over Greece and Spain’s finances to their own advantage. Internal markets commissioner Michel Barnier will kick off his term by bringing in new rules as early as June. They are expected to fall along lines set out by the [...]
FTSE drops after Spain downgrade April 28, 2010 BRITAIN’S top share index closed lower yesterday, extending the previous session’s steep falls, after ratings agency Standard & Poor’s cut Spain’s credit rating to AA, overshadowing strong corporate earnings. The FTSE 100 index closed down 16.91 points, or 0.3 per cent, at 5,586.61, after it tumbled 2.6 per cent on Tuesday — its biggest one-day [...]