Halo effect: Sage of Omah invests $5bn in buffeted Bank of America August 25, 2011 BILLIONAIRE investor Warren Buffett rode to the rescue of America’s biggest lender yesterday with a $5bn (£3bn) investment in the beleaguered Bank of America Merrill Lynch (BofA). Buffett’s investment provides a much-needed vote of confidence in BofA, which has seen its share price halve this year as it has fought to convince investors it had [...]
Tensions rising again in the markets August 25, 2011 WHEREVER one looks, there is danger in the air. Global equities are down 10.2 per cent in August and 11.3 per cent in the year to date. European and UK shares are down 13 and 10.4 per cent respectively in August, and 16.8 per cent and 11.5 per cent so far this year, Evolution Securities [...]
S&P president leaves after US downgrade August 23, 2011 STANDARD and Poor’s president Deven Sharma yesterday announced that he would leave the ratings agency. In a move described as having “nothing to do with the reaction to the US credit downgrading”, Sharma will stand down next month to pursue other opportunities. The president of four years has always had a rebellious streak, and has [...]
Pathetic markets want Bernanke to save them August 22, 2011 IT was heady stuff. The price of gold smashed through the $1,900 level in after-hours trading last night, as investors worried about instability and inflation piled into the precious metal. It was not just gold: equities also rose yesterday. Libya helped, of course, but there was one much more powerful reason why stock markets gained ground: [...]
Ireland eyes mortgage debt restructuring August 22, 2011 The Irish government is likely bring in legislation to restructure mortgage debts for thousands of troubled loanholders as it does not have the resources to fund a significant debt forgiveness programme, a junior minister has said. Ireland’s ruling coalition has promised to examine ways to ease the burden on mortgage holders struggling to cope with [...]
Gloomy American data fuels recovery doubts August 18, 2011 SHOCKINGLY negative economic data rattled markets in New York yesterday, adding to an ultra-bearish day for equities. Claims for US unemployment benefits rose; home sales dropped; inflation picked up; and a Philadelphia factory index collapsed to worse than a two year low. The gauge of factory activity in the Mid-Atlantic region fell off a cliff, [...]
US announces probe into S&P August 18, 2011 THE US department of justice is investigating the ratings that Standard & Poor’s gave to dozens of mortgages in the run up to the financial crisis, amid concerns pressure was put on analysts to hike the ratings. Though the investigation is said to have been underway since before the rating agency downgraded US debt from [...]
Mortgage lending slows in UK August 18, 2011 The rate of UK house-buying is set to fall again in the next few months, experts warned yesterday, after new data showed the faltering recovery in UK mortgages ground to a halt in July. Bob Pannell, chief economist of the Council of Mortgage Lenders (CML), said Britain had been hit by the effects of the [...]
Mortgage lending subdued August 18, 2011 Mortgage lending shows no sign of picking up, according to the latest figures from the Council of Mortgage Lenders (CML). Gross new lending, for both house buyers and those remortgaging, fell by one per cent in July to £12.6bn. That was also six per cent down from the figure for July last year. The CML [...]
Inflation to stay above 4pc August 15, 2011 INFLATION in the UK could have slowed further in July, yet is expected to spike again in late summer and during autumn. July’s consumer price index (CPI) and retail price index (RPI) figures are set for publication this morning, with some analysts forecasting a fall to 4.1 per cent in the CPI, and for the [...]