Banks said to be petrified by ICB report April 7, 2011 EXECUTIVES at Barclays are preparing for a “disaster” scenario when the Independent Commission on Banking (ICB) releases its interim report on Monday, which could involve an ultra hard-line ring-fencing of bank functions. Banks are said to be “petrified” that the report could signal a major industry overhaul. In pre-briefings this week, analysts have been told [...]
CITY VIEWS: SHOULD THE BANK OF ENGLAND RAISE INTEREST RATES TOMORROW? April 5, 2011 ANTHONY JEFFERYS | AXA INSURANCE “Yes I think it should start to increase Bank rate. Mainly because inflationary pressures are too heavy at the moment, and the rise in oil prices means an interest rate increase is all but inevitable at some stage.” OLIVER STAPLE | HORN & CO “As someone with a mortgage, I [...]
Record drop in mortgage debt at end of 2010 April 4, 2011 BRITONS are no longer withdrawing equity from their houses to fuel consumer spending, official data suggests. Outstanding mortgage debt plummeted by £7bn in the final three months of last year — a record fall in debt — the Bank of England revealed yesterday. The figure sharply contrasts with levels of mortgage debt prior to the [...]
ECB should hike rates – but don’t forget Spain April 3, 2011 It is all but certain that the ECB will raise rates this week. It has been itching to do so for some time. Now that the moment has arrived what will the move actually mean for the Eurozone and the global economy? The simple answer is probably not very much. The move has been well [...]
Shock rise in mortgage defaults in 2011 March 31, 2011 MORTGAGE defaults have unexpectedly shot up in the first three months of the year, the Bank of England revealed yesterday. A positive balance of 11.5 per cent of respondents to the Bank’s credit conditions survey reported a rise in defaults on secured loans to households. Worse, even more – a positive balance of 14.3 per [...]
PAINFUL TRANSITION FOR HOUSING MARKET March 31, 2011 BRITAIN’S housing market is undergoing a “painful transition” in adapting to weaker credit conditions, Bank of England rate-setter David Miles said yesterday. Demand for housing is lagging following the end of “unsustainable” levels of mortgage debt availability, Miles said. Speaking at the Home Builders Federation conference, Miles said that first-time buyers would adapt to save [...]
Labour market recovery boosts optimism on US March 30, 2011 AN ADP report yesterday showed that private employers added 201,000 jobs in March – slightly below consensus expectations for an increase of 208,000 jobs. Small and medium firm payroll growth remained strong in March, adding 102,000 and 82,000 jobs, while large firms added 17,000 jobs. “This indicates continued momentum in the pace of labour market [...]
PERSONAL FINANCE NEWS March 30, 2011 OFGEM FORCES NOTICE CHANGES Ofgem has responded to pressure from consumers to force energy suppliers to give increased notice of rate changes. Suppliers have been ordered to give their customers 30 days notice before implementing price hikes. Geared towards protecting consumers from shock utility bill increases, the energy industry regulator Ofgem has issued new changes [...]
Northern Rock to axe 680 jobs March 28, 2011 STATE-OWNED bank Northern Rock is to cut up to 680 jobs this year as it streamlines to cut costs before a return to the private sector. Newcastle-based Northern Rock said yesterday cost management was a key focus as it seeks to return to profit. The bank said economic and trading conditions were challenging for lenders [...]
Why we shouldn’t bail out Portugal March 25, 2011 HERE’S a heretical thought: let’s not bail out Portugal. The near-bankrupt country has just seen its Prime Minister resign after losing a key vote on his government’s fourth austerity package in a couple of years, while Fitch has just downgraded the country’s credit rating. Yet the talk now is of a bailout – even though [...]