Holy moly: Banks were drugged by Basel’s rulebook January 23, 2012 LET’S suppose that the human, fallible credit rating agencies produce ratings that are absolutely perfect in terms of measuring the risk of default; and that banks use these ratings to choose who to lend to, at what rates and under what conditions. But then let us add that bank regulators, such as those in the [...]
Mortgage lending edges up January 23, 2012 MORTGAGE lending rose at the end of last year compared to 12 months earlier, yet levels remain relatively deflated. Gross mortgage lending in quarter four of 2011 reached £37.2bn – up on £33.6bn in the final quarter of 2010. Yet total loans are significantly lower than before the credit crunch. Gross mortgage lending last year [...]
Squeeze on income shows little easing January 22, 2012 CUTS to tax credits are set to strain the UK’s “squeezed middle” even further, with wages continuing to fall and mortgages beyond the reach of many under-35s, a report from the Resolution Foundation will say today. The Lloyds TSB spending power report, also out today, reveals spending on essentials, like utilities, rose 4.6 per cent [...]
THE BEST LAID PLANS OF SOME ENTREPRENEURS January 22, 2012 JOHN, Jeremy and Joan had a plan. A good plan. A plan to start a business. They were so sure that the business would succeed that each used £100,000 of their own money to fund the start-up costs and take the inevitable losses until they turned the corner into profit. Their hunch was right, and [...]
Charles Schwab meets forecasts January 18, 2012 CHARLES Schwab’s quarterly profit last night met analysts’ lowered expectations, amid a tough environment of shrinking interest rate margins and a pullback in trading by retail investors. The bank and brokerage, which has offices throughout the US and in London, earned $163m (£105m) in the fourth quarter, compared to $119m a year earlier. Asset management [...]
Avoid exchange-rate pain in Spain January 18, 2012 DIRECTOR OF FX ADVISORY SERVICES, HIFX I F YOU had invested £100,000 in euros this time last year, it would have bought you €120,000 – almost exactly the same amount of euros as today. Less than four months later you would have only received €111,000. Yes, there are major problems within Europe, but the outlook [...]
Homes more affordable as supply slumps January 15, 2012 HOMES are at their most affordable level for 14 years, according to data released today by Halifax, while figures from Rightmove suggest very low housing supply will prevent the market falling further. First-time buyers spent 27 per cent of their disposable income on their mortgage, down from the 37 per cent average seen over the [...]
Crunch easing for euro banks January 11, 2012 THE EUROPEAN Central Bank (ECB) has succeeded in kick-starting bank funding markets, prompting a rush to issue debt that has reached levels not seen since before the latest credit crunch took hold. Funding costs for banks on the continent have plunged to their lowest level since April on the back of a flood of new [...]
FTSE rally ends as investors eye Eurozone bond auctions January 11, 2012 The rally on the FTSE 100 yesterday stalled in early trading today as concerns over upcoming Eurozone bond auctions and slightly weaker commodity stocks took their toll. Heavyweight miners failed to keep up the gains made yesterday which were fuelled by positive data from China showing the country’s demand for metals had risen. Wall Street [...]
London the only region to defy house price slump throughout rest of UK January 9, 2012 UK HOUSE prices continued to fall at the end of last year, a widely-regarded survey revealed this morning, yet prices in the capital are still bucking the trend. London was the only region to show a positive net balance (46 per cent) of surveyors reporting rising prices. Across the country as a whole, a balance [...]