London Report: US growth gives the FTSE fuel for a further rally July 31, 2013 THE FTSE 100 rallied yesterday as the quickening pace of the global economy’s heartbeat revived confidence that economic recovery can be sustained even if stimulus is withdrawn. Economic growth in the US unexpectedly accelerated in the second quarter, with gross domestic product growing at a 1.7 per cent annual rate, stepping up from the first-quarter’s [...]
RBS hopes to name new chief executive on Friday July 31, 2013 The Royal Bank of Scotland is hoping to name its new chief executive alongside its results on Friday, according to Sky sources. Sky Sources: RBS hopes to name new chief executive to replace Stephen Hester along with results on Friday — Sky News Newsdesk (@SkyNewsBreak) July 31, 2013 However, there is no formal deadline for [...]
Banks take a bashing July 30, 2013 ■ Barclays forced to fix £12.8bn gap ■ JP Morgan pays $410m settlement ■ Billions more set aside for PPI ■ Deutsche Bank cuts balance sheet ■ RBS investors file £4bn claims BILLIONS of pounds were wiped off banks’ stock market values yesterday as a barrage of regulatory and legal action shocked markets. Barclays [...]
London Report: FTSE shrugs off Barclays rights issue to tick up July 30, 2013 UPBEAT earnings from leading companies nudged Britain’s benchmark equity index higher yesterday, enabling the market to offset a slump in Barclays after the bank announced plans for a $9bn capital hike. The blue-chip FTSE 100 index closed up 0.2 per cent, or 10.70 points, at 6,570.95. Engineer GKN topped the leaderboard with a 6.5 per [...]
World faces productivity challenge as ageing gloom hits equity markets July 29, 2013 OFTEN investors are so preoccupied with the short-term drivers of financial markets – like corporate earnings or central bank actions – that they forget about the long term. However, there are other significant factors – like demographics – which drive markets on both a long and short-term basis. Age, in particular, is a key determinant [...]
CNBC Comment: Ethical vigilance isn’t easy for Church July 29, 2013 MANAGING God’s money would test the patience of Job. The archbishop of Canterbury discovered this last week when his attempt to take on payday lender Wonga exposed the Church of England to accusations of hypocrisy. Justin Welby locked horns with Wonga because the company’s interest charges attract legitimate concerns. But what came next was the [...]
US drugmaker Perrigo agrees deal to buy Elan for $8.6bn ($16.50 per share) July 29, 2013 US drugmaker Perrigo has agreed to buy Elan for $8.6bn (£5.5bn) ending a long battle in which Elan rejected three hostile bids by US investment firm Royalty Pharma before putting itself up for sale last month. The deal will give Perrigo significant tax savings from being domiciled in Ireland, which has a 12.5 per cent [...]
Treasury veteran Sir Jon Cunliffe named Bank of England deputy governor July 26, 2013 Sir Jon Cunliffe has been appointed deputy governor of the Bank of England for Financial Stability. Cunliffe, 60, will replace Paul Tucker who is leaving in the Autumn to become a Harvard academic. Cunliffe has been the UK’s permanent representative to the EU since January 2012, covering policy issues like negotiations on the banking union [...]
UBS $885m settlement with US regulators strikes fear into European banks July 26, 2013 Swiss bank UBS will pay $885m (£575m) in a settlement with US regulators over allegations it misrepresented mortage-backed bonds during the housing bubble, it was announced today. The Federal Housing Finance Agency (FHFA), which oversees state-sponsored housing enterprises Fannie Mae and Freddie Mac, said that UBS would pay $415m to Fannie May and $470m to [...]
Inside Track: All bets on Ross McEwan as field of candidates for RBS narrows July 24, 2013 AND then there was one. The search for Stephen Hester’s successor as chief executive of Royal Bank of Scotland (RBS) was never going to be straightforward – George Osborne put paid to that prospect by engineering the current boss’s removal last month. So it was hardly surprising that Mark McCombe, the former HSBC executive who [...]