There was no other choice – now George Osborne must hold his nerve

first_imgWednesday 20 October 2010 9:00 pm Tags: NULL whatsapp There was no other choice – now George Osborne must hold his nerve IT was a timely reminder that action is desperately required to tackle Britain’s out of control budget deficit. At 9:30 yesterday morning, a full three hours before George Osborne got up to deliver his spending review to the House of Commons, the latest monthly budget deficit figures popped up on traders’ screens across the City. They were absolutely grim. Public sector net borrowing rose again to £16.2bn in September, a record deficit for the month. Even though the economy had grown during the past 12 months, that figure was even higher than the £15.5bn suffered a year ago. The fine print was just as depressing. True, VAT receipts were up 17.2 per cent year-on-year in September, not surprisingly given that the rate was taken back up to 17.5 per cent during that time. However, the year-on-year increase in income and capital gains tax receipts slowed to a disappointing 1.5 per cent. In part, this is because pay growth is now so weak – for the first time, Osborne may be regretting his war on City bonuses. In part, this low revenue growth is because hiking direct tax is not bringing in as much as the Treasury was hoping for. The 1,000 or so hedge fund mangers who have quit the UK have left behind a £500m-£1bn black hole in the numbers; hiking capital gains tax may also have backfired. Just as ominously, the breakdown of central government expenditure shows interest payments shot up to £2.3bn in September, from £912m a year earlier – an increase of 155 per cent. So Osborne’s determination not to shy away from the challenge of implementing a dramatic reduction in the state’s share of the UK economy is to be welcomed – and was indeed broadly given the thumbs up by the City. The coalition’s credibility as a responsible government with a firm grip on the public finances was reinforced yesterday; however, some of the details turned out to be a bit murky, especially the emergence of vicious £1bn green stealth tax on business involving carbon credits, which rightly angered many. At times, the review – and especially Osborne’s speech – reminded one of Gordon Brown’s statistical sleights of hand, though at least now all of the published documents have been audited by Robert Chote’s independent Office for Budget Responsibility.It turns out that total spending will fall, in real terms, by 3.3 per cent by 2014-15, less than the 3.6 per cent promised at the emergency budget. The difference is that an extra £2bn will be spent on capital projects (and thus an extra £2bn borrowed); this slight loosening of fiscal policy won’t derail Osborne’s target, which is to eliminate the structural deficit on current spending. What has changed much more dramatically is the composition of the cuts, which now involve reducing welfare by a further £7bn, on top of the £11bn announced in June, in return for cutting departmental spending by substantially less. While cash spending goes up every year, it will do so at a slower rate than inflation, which means that total expenditure will fall in real terms. By way of a benchmark, since 1970, total real spending has only fallen in five years. One of Osborne’s long-term challenge will therefore be to actually deliver on his real term cuts against the massive opposition of the public sector, unions and large swathes of the public. It is a historic mission.In real terms, the total cuts are worth £23.3bn a year by 2014-15. But while that is the number economists and financial markets care about – and is clearly too low to derail the economy, let alone push it into a double-dip, as some critics claim – this is not the figure that matters when it comes to gauging the impact on the public. The surge in interest payments will continue to gobble up a much larger share of the overall public sector spending cake, meaning that the squeeze to government departments and welfare is much larger than the headline figures suggest.The real cut to government departments will hit £42.2bn a year by 2014-15, or roughly 10 per cent; while much less than previously feared, this will hurt a lot of people. Many of the reforms to the welfare system – an additional cut of around £18bn a year in real terms by 2014-15 – will also have a substantial impact, on the middle classes as well as on the poor. But it is a shame that the debate is being confused by the coalition’s obsession with the idea that it has saved much more than that; its figure of £81bn doesn’t really exist or at least doesn’t describe “cuts” as ordinary mortals would understand them. It is derived from a baseline which assumes continuous growth in welfare payments; it also includes a £10bn “cut” from lower interest payments caused by the coalition’s prudence. It is strange that the coalition seems intent on deliberately exaggerating the scale of its own cuts. Public spending will drop from 47.7 per cent of GDP in 2009-10 and 47.3 per cent in 2010-11 (on the Treasury’s figures) to 41.0 per cent of GDP in 2014-15. As Investec points out, Osborne’s planned reduction in the budget deficit is of a similar order of magnitude to the 8.3 percentage point improvement seen during John Major’s fiscal consolidation of the early 1990s (a deficit of 7.7 per cent in 1993-94 became a surplus of 0.5 per cent in 1998-99). However, this occurred at a time when the economy was growing by 3.5 per cent per annum, compared with the OBR’s forecast of an average 2.5 per cent growth looking ahead. This shows the magnitude of the task facing Osborne; it is always easier to cut a deficit when the economy is booming.The Institute for Fiscal Studies calculates that the revised plans imply the deepest six-year period of cuts to public services spending (defined as all expenditure minus debt and welfare payments) since the six years starting in April 1976. A few months ago, it seemed that these cuts would have been significantly deeper – the sharpest, in fact, since the Second World War, a comparison which Labour wrongly continued to use yesterday. This is an important shift, psychologically as well as in terms of what the majority of the public will experience. Within governments, the cuts are very uneven: to offer some protection to spending on schools, hospitals and defence, the axe is to fall hard on higher education teaching, social housing, environment, food and rural affairs, local government and justice. Weirdly, foreign aid will reach record levels. The plans also assume no increase in the EU budget until 2013/14, then a massive rise of 24 per cent (£2bn) in nominal terms to 2014/15. Bizarre. The pain across the public sector will be severe, with a net 490,000 state sector jobs being abolished over the next four years, albeit mostly through vacancies not being filled rather than redundancies. Some believe that an additional 500,000 private sector jobs could also be lost among contractors and others. But the other side of the coin is that OBR believes that private sector jobs will rise by a net 1.5m during the same time. All in all, this was a courageous spending review from Osborne, who was right to mostly stick to his tough approach. There were the odd lapses, especially the £1bn tax hike on business and the absence of any new pro-growth policies other than the preservation of spending on Crossrail. But it is clear that the coalition is serious about dragging Britain out of our fiscal morass. Its next challenge will be to hold its nerve as opposition and protests begin to [email protected] by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comTaonga: The Island FarmThe Most Relaxing Farm Game of 2021. No InstallTaonga: The Island FarmDefinitionDesi Arnaz Kept This Hidden Throughout The Filming of ‘I Love Lucy’Definitionthedelite.comNetflix Cancellations And Renewals: The Full List For 2021thedelite.com whatsapp KCS-content Show Comments ▼ Sharelast_img read more

Mortgage aprrovals lowest since February

first_img whatsapp Mortgage aprrovals lowest since February Friday 29 October 2010 4:52 am Tags: NULL Show Comments ▼ Mortgage approvals came in slightly better than expected in September, but still fell to the lowest since February, Bank of England figures showed. The Bank of England said mortgage approvals numbered 47,474 in September, down from 47,498 in August. Analysts had forecast a reading of 46,000, and the equivalent measure from the British Bankers’ Association hit an 18-month low earlier in the week.The figures suggest that both the housing market and broader credit conditions remain tough as the Bank of England considers whether to start a new bout of quantitative easing next week.Net consumer lending rose by £262m in September after a £21m fall in August. Analysts had forecast that there would be a 0.03 billion pound fall in consumer credit lending.However, net mortgage lending was much weaker than expected at £112m, well below forecasts for a rise by 1.00 billion pounds and August’s level of £1.617bn.The Bank’s preferred gauge of money supply, M4 excluding intermediate other financial corporations grew 2.6 percent on an annualised basis on the quarter between July and September.On the year, broad money supply growth was one per cent, the lowest since comparable records began in 1983. center_img More From Our Partners I blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.org980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comMatt Gaetz swindled by ‘malicious actors’ in $155K boat sale boondogglenypost.comInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.comMark Eaton, former NBA All-Star, dead at 64nypost.comWhy people are finding dryer sheets in their mailboxesnypost.comBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comSidney Crosby, Alex Ovechkin are graying and frayingnypost.comUK teen died on school trip after teachers allegedly refused her pleasnypost.comKiller drone ‘hunted down a human target’ without being told tonypost.com whatsapp John Dunne Share by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastUndoMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryUndoMoneyPailShe Was Famous, Now She Works In {State}MoneyPailUndoSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesUndoMagellan TimesThis Is Why The Roy Rogers Museum Has Been Closed For GoodMagellan TimesUndoElite HeraldExperts Discover Girl Born From Two Different SpeciesElite HeraldUndoZen HeraldThe Truth About Why ’40s Actor John Wayne Didn’t Serve In WWII Has Come To LightZen HeraldUndomoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comUndoTaonga: The Island FarmThe Most Relaxing Farm Game of 2021. No InstallTaonga: The Island FarmUndolast_img read more

Capita says cuts will hit its revenues

first_img Tags: NULL Show Comments ▼ KCS-content whatsapp Thursday 18 November 2010 8:14 pm Sharecenter_img Capita says cuts will hit its revenues whatsapp by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeNext RefinanceThey Drained Niagara Falls — They Weren’t Prepared For This Sickening DiscoveryNext RefinanceFilm OracleHer Love Triangle Inspired 3 Of The Most Popular Songs Ever WrittenFilm OraclePast Factory4 Sisters Take The Same Picture For 40 Years. Don’t Cry When You See The Last One!Past FactoryFinanceChatterViewers Had To Look Away When This Happened On Live TVFinanceChatterFactableThis Is What Historical Figures May Have Really Looked LikeFactablezenherald.com20 Rules Genghis Khan’s Army Had To Live Byzenherald.comItsTheVibeThe Cutest 1980’s Stars Are Now In Their 60s, This Is Them NowItsTheVibemoneywise.comKirkland Products That Are Actually Big Brands In Disguisemoneywise.comQuizscape8 Out Of 10 Men Fails This Car Engine Quiz. Can You Pass It?Quizscape Read This NextRicky Schroder Calls Foo Fighters’ Dave Grohl ‘Ignorant Punk’ forThe WrapCNN’s Brian Stelter Draws Criticism for Asking Jen Psaki: ‘What Does theThe WrapDid Donald Trump Wear His Pants Backwards? Kriss Kross Memes Have AlreadyThe WrapHarvey Weinstein to Be Extradited to California to Face Sexual AssaultThe WrapPink Floyd’s Roger Waters Denies Zuckerberg’s Request to Use Song in Ad:The Wrap’The View’: Meghan McCain Calls VP Kamala Harris a ‘Moron’ for BorderThe Wrap’Sex and the City’ Sequel Series at HBO Max Adds 4 More ReturningThe WrapNewsmax Rejected Matt Gaetz When Congressman ‘Reached Out’ for a JobThe Wrap2 HFPA Members Resign Citing a Culture of ‘Corruption and Verbal Abuse’The Wrap CAPITA yesterday said revenues would be hit harder by government spending cuts than it previously expected, casting a shadow over predictions that robust support services firms stand to gain from the era of austerity.Since the coalition was formed in May, many large support services firms such as Capita and rival Serco have sounded bullish about their ability to gain market share because of increased levels of government outsourcing.“We indicated that pressures on public spending might potentially affect growth in the short term… This is now occurring and will subdue revenue growth in the second half of the year more than previously anticipated,” Capita said.Capita, which processes 25m life, savings and pensions policies and handles complaints for the BBC, said revenue growth would be modest because many existing contracts would not be renewed or offset with new deals, and because fewer contracts had been signed in the second half.The support services sector’s largest players had been expected to cash in on the cuts because of their penetration, size and diverse list of services. last_img read more

Miliband tries to woo Lib Dems into anti-right alliance

first_img whatsapp whatsapp KCS-content Miliband tries to woo Lib Dems into anti-right alliance Share Monday 13 December 2010 8:55 pm Show Comments ▼ ED Miliband yesterday tried to woo disaffected Liberal Democrats by calling on them to “work with Labour on issues of common interest”.Capitalising on last week’s bloody vote on tuition fees – which sparked the worst rebellion in the party’s history – Miliband said some Lib Dem MPs “fear their deal with the Tories is shifting the gravity of British politics to the right”.He said he was issuing his plea to those “that are reluctant to abandon ship but are concerned at the direction of their party”.“I invite them to work with us on issues of common interest,” he added. But Miliband’s overtures received short shrift from Tim Farron, the Lib Dem president-elect who voted against the coalition on tuition fees and who is seen as a left-wing standard-bearer for disgruntled colleagues. He said: “Why would any sane progressive give Labour a second glance? As part of the coalition, Lib Dems have started fixing Labour’s economic mess, taking millions out of income tax and reforming British politics. Things Labour had 13 years to do but failed to deliver.”In the words of one senior Lib Dem strategist, the party has been left “bruised not broken” by last week’s vote on university fees, which saw over half the party rebel against plans to triple the upper fees limit to £9,000. More From Our Partners Russell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.com980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.comBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comFeds seized 18 devices from Rudy Giuliani and his employees in April raidnypost.com‘Neighbor from hell’ faces new charges after scaring off home buyersnypost.comKiller drone ‘hunted down a human target’ without being told tonypost.comMark Eaton, former NBA All-Star, dead at 64nypost.comMatt Gaetz swindled by ‘malicious actors’ in $155K boat sale boondogglenypost.comSidney Crosby, Alex Ovechkin are graying and frayingnypost.com Tags: NULLlast_img read more

Desire gives up on well in the Falklands

first_img Tags: NULL whatsapp Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofChicken Bao: Delicious Recipes Worth CookingFamily ProofCheese Crostini: Delicious Recipes Worth CookingFamily ProofHomemade Tomato Soup: Delicious Recipes Worth CookingFamily Proof Share SHARES in Desire Petroleum plunged more than 26 per cent yesterday after the Falkland Islands-focused oil explorer said it had abandoned its latest well, the Dawn/Jacinta prospect in the southern part of the North Falklands basin.The mile-deep well is Desire’s latest disappointment, having found no hydrocarbons at its Rachel prospect in the same region in October. “We now believe that Desire Petroleum has some major problems in that the company is now starting to run out of cash,” says Panmure Gordon analyst Peter Hitchens.Oil exploration in the Falklands has resulted in only one commercial discovery at Rockhopper’s Sea Lion well last spring in the northern part of the North Falklands basin, some 100km away from the Dawn/Jacinta prospect.The oil rig that was used by Desire will now be subcontracted to Rockhopper, which plans to drill one or two separate wells. Desire will then use the well to explore one well in an undisclosed location. “It [the dry hole] really shouldn’t come as too much of a surprise to people. It had just an eight per cent chance of working,” says Evolution analyst David Farrell, adding that Rockhopper’s Ernest well is the only other well to be drilled in the vicinity and that was also a dry hole.Analysts at Oriel Securities retain their “hold” recommendation on Desire as they see longer term potential in Desire’s acreage in the Northern part of the North basin.AIM-listed shares in Desire closed 12.75p down at 35.25p. The stock has lost more than 80 per cent of its value since the firm revealed the failure of the Rachel prospect in October. Meanwhile, shares in AIM-listed colleague Rockhopper closed up 0.7 per cent at 370p. Desire gives up on well in the Falklands KCS-content Show Comments ▼ Tuesday 4 January 2011 7:28 pm whatsapplast_img read more

Goldman: ECB has bought up a fifth of Eurozone bonds

first_imgThursday 6 January 2011 7:45 pm KCS-content Tags: NULL Show Comments ▼ whatsapp Sharecenter_img whatsapp Ad Unmute by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryUndoMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailUndoTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastUndoSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesUndoBrake For ItThe Most Worthless Cars Ever MadeBrake For ItUndoBetterBe20 Stunning Female AthletesBetterBeUndoElite HeraldExperts Discover Girl Born From Two Different SpeciesElite HeraldUndoZen HeraldThe Truth About Why ’40s Actor John Wayne Didn’t Serve In WWII Has Come To LightZen HeraldUndoAlphaCute30 Rules That All “Hells Angels” Have To FollowAlphaCuteUndo Goldman: ECB has bought up a fifth of Eurozone bonds More From Our Partners Killer drone ‘hunted down a human target’ without being told tonypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgUK teen died on school trip after teachers allegedly refused her pleasnypost.comInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.comSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comWhy people are finding dryer sheets in their mailboxesnypost.comBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comMatt Gaetz swindled by ‘malicious actors’ in $155K boat sale boondogglenypost.com980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comFeds seized 18 devices from Rudy Giuliani and his employees in April raidnypost.comMark Eaton, former NBA All-Star, dead at 64nypost.com THE European Central Bank’s intervention in Eurozone sovereign bond markets means that the central bank amounts to 20 per cent of marketable stock, according to analysis by Goldman Sachs.The note, released yesterday, says: “The ECB remains the main buyer of Portuguese government securities.” It adds: “The ECB has effectively removed from the private markets roughly the equivalent of the entire gross supply of Portuguese medium-to-long-term government bonds for 2010.”The ECB is notoriously secretive about whose debt it is buying for fear of panicking bond markets if it is seen to intervene drastically. However, it publishes weekly totals for its purchases, which show that it bought €165m (£138.7m) last week, the lowest level for several weeks due to the Christmas holiday. In the three weeks previously, it bought €1.12bn, €603m and €2.67bn.Meanwhile, France held a long-dated debt auction yesterday, selling just shy of up to €9bn euros of 10, 15, and 20-year government bonds.The sale saw decent demand but with yields rising since the previous sale. “These auctions are doing well and it’s relatively important for the market psychologically because there was some concern at the end of last year, even for triple A paper,” said BNP Paribas rate strategist Patrick Jacq.Figures showing the ECB’s purchases in the last week will be released on Monday. last_img read more

FTSE held back by blue-chips and miners

first_imgWednesday 9 February 2011 4:28 pm Tags: NULL whatsapp whatsapp London trading was weighed down by falls in major stocks trading ex-dividend, outweighing strong performances by financial stocks.The FTSE 100 closed down 0.64 per cent or 30.04 points at 6,052.29, as BP, GlaxoSmithKline, International Power, Royal Dutch Shell, Sage Group and Unilever all lost their payout attractions.“After Tuesday’s leap to multi-year highs, a bit of a hangover today is inevitable, though without the ex-dividend factors the FTSE would be higher,” said Ben Barty-King, head of options trading at ETX Capital.The fallers were led by International Power, which fell 21.48 per cent to 330.4p as investors traded without the right to its 92p special dividend. Investec adjusted its target price for the utility to 416p, down from 538p, and repeated its “buy” rating.Household products giant Reckitt Benckiser fell 5.08 per cent to 270p after missing its fourth-quarter forecasts.“Household products provider Reckitt Benckiser could well need their Nurofen headache pills after today’s market reaction to this year’s profit numbers. “The company fell short of analyst expectations, even though profits were 13 per cent higher than 2009,” said Michael Hewson, market analyst at CMC Markets. Insurers benefited from upbeat investor sentiment, with Prudential up 2.24 per cent to 731.5p as Societe Generale upgraded it to “buy” from “hold” and named it the broker’s preferred stock in the sector, replacing Aviva.Resolution also rose 1.39 per cent to 270.5p. Mining stocks lost ground later in the day on falling metals prices, led by Kazakhmys, down 3.27 per cent to 1,569p and followed by Anglo American, African Barrick Gold and Vedanta.In the FTSE 250, the London Stock Exchange rose 3.14 per cent to 920p after saying it was buying the Toronto Stock Exchange.“Shareholders appear to have lapped up the news, buying strongly into LSE’s shares, forcing prices as high as 950p, a level not seen since September 2008,” Nick Serff, market analyst at City Index said.And Bluetooth specialist CSR gained ground after announcing it would pay its first-ever dividend alongside strong fourth-quarter results.“CSR shares saw a high degree of buyer demand after reporting figures that beat market expectations,” Serff said.The markets didn’t react to news that Chancellor George Osborne has finalised a bank lending and bonus deal, Project Merlin, today. “London’s blue chip index remained somewhat unaffected by the news,” Hewson said.Instead, all eyes are on Thursday’s Bank of England interest rate decision, which could see rates rise for the first time in almost two years.“MPC members appear to be stuck between a rock and a hard place at the moment,” said Serff. “Most of the market is pricing in an interest rate hike in either May or September later this year. Whilst no action is expected from tomorrow’s decision, the Bank of England has surprised the market before so traders need to be on their guard.” alison.lock center_img FTSE held back by blue-chips and miners Show Comments ▼ Sharelast_img read more

FTSE bounces on commodity rebound as oil price weakens

first_img Show Comments ▼ Tags: NULL A REBOUND by commodity stocks fuelled strong gains by the UK’s top share index yesterday, as oil prices fell back on hopes for a peace deal in Libya, easing concerns over global demand.The FTSE 100 was up 90.20 points or 1.5 per cent at 6,005.09 at the close, ending above the 6,000 level for the first time since 21 February. It had fallen in eight of the previous nine trading days.“The sun has come out today in true ‘risk-on’ style, and after three days of suffering, London’s headline-index is trying to turn positive for the week,’ said Will Hedden, sales trader at IG Index.Heavyweight energy stocks and miners led the rally, two sectors that have been hit recently by fears the rising cost of oil could derail a fragile global economic recovery and dampen demand for commodities.Brent crude fell below $115 (£70.64) a barrel as the Libyan government accepted a plan for a negotiated solution to the revolt in the North African country, a spokesman for Libyan ally Venezuelan President Hugo Chavez said.Oil explorer Tullow Oil was a major gainer, up 3.9 per cent after announcing an oil discovery offshore Ghana.“While the oil price remains high, we believe the outperformance will continue (for Tullow),” said Richard Curr, head of dealing for CFD specialist Richard Curr. He said Tullow stock was a “buy”, with a target of 1,500p-plus in the coming weeks, though he recommended “a tight stop loss to take into account any oil-price-driven volatility.”Xstrata was a strong performer among the miners, up 2.6 per cent after stakeholder Glencore reported bumper profits.But gold miners African Barrick Gold and Randgold Resources missed out on the sector rally as the price of the precious metal fell, with recent safe-haven-related demand softened by the peace possibilities in Libya.Gold also fell as the dollar dropped back against the euro after European Central Bank chief Jean-Claude Trichet said the bank would exercise “strong vigilance” over inflation, raising the prospect that it might lift interest rates in Europe as soon as next month.Travel firms benefited from an easing in worries over fuel costs, with TUI Travel adding 4.6 per cent.TUI Travel was also boosted as German parent TUI’s board gave the go-ahead for a possible initial public offering of container shipping group Hapag-Lloyd, raising hopes for a mop-up bid for the British firm.International Consolidated Airlines added 3.3 per cent as the recently merged firm reported 8.2 per cent growth in group premium traffic in February.Strong corporate earnings data in the services and engineering sectors also helped market sentiment. Engineer IMI topped the risers board, gaining 6.6 per cent to 943p after hiking its 2010 dividend by 29 per cent, while oil services company AMEC closed up 5.4 per cent at 1,190p after it posted a 27 per cent rise in profits for the past year. Weir Group was also up four per cent at 1,770p.US blue chips were up 1.4 per cent by London’s close, supported by the easier crude price as well as by news US weekly jobless claims dropped to a two-and-a-half year low. The jobless claims news came one day after a similarly robust ADP report on private sector hiring.Taken together, the two could bode well for Friday’s key February payroll report. Share Thursday 3 March 2011 7:09 pm center_img KCS-content whatsapp whatsapp FTSE bounces on commodity rebound as oil price weakens last_img read more

Elliott piles pressure on UK targets

first_img Show Comments ▼ Tags: NULL Share Monday 4 April 2011 12:12 am whatsapp Read This NextWATCH: Shohei Ohtani continues home run tear, Los Angeles Angels winSportsnautYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofChicken Bao: Delicious Recipes Worth CookingFamily ProofWhat to Know About ‘Loki’ Ahead of Disney+ Premier on June 9Family ProofBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofBaked Sesame Salmon: Recipes Worth CookingFamily Proof’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofCheese Crostini: Delicious Recipes Worth CookingFamily Proof Elliott piles pressure on UK targets center_img whatsapp Activist hedge fund Elliott Advisors has stepped up its assault on two UK companies after garnering the support of extra shareholders.At National Express, where it has built up a 17 per cent stake and called for a shake-up of strategy, it is expected to receive the backing of the transport group’s largest shareholder, Spain’s Cosmen family. The Cosmen family, a major investor in National Express since 2005, holds a 20 per cent stake but has not publicly backed the board.Sources close to National Express told City A.M. the family “has been a long term supporter of the company” and it “remains to be seen” which side of the debate it will support.Meanwhile, at Alliance Trust, where Elliott recently bought a three per cent stake, stockbroker Brewin Dolphin is set to meet management tomorrow to persuade it to discuss its share price performance, which trades at a discount to the firm’s net asset value. Elliott has not yet demanded any changes at Alliance Trust, which manages £2.4bn of funds, but in February Laxey Partners, another activist fund with a 1.3 per cent stake, called for a control mechanism to reduce its gaping 17-20 per cent share price discount. Brewin Dolphin is said to be representing shareholders that own a combined four per cent of the firm’s stock, who all want the firm to shake up its strategy. by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastMoneyPailShe Was Famous, Now She Works In {State}MoneyPailSenior Living | Search AdsNew Senior Apartments Coming to Scottsdale (Take A Look at The Prices)Senior Living | Search AdsSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesDrivepedia20 Of The Most Underrated Vintage CarsDrivepediamoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comZen HeraldThe Truth About Why ’40s Actor John Wayne Didn’t Serve In WWII Has Come To LightZen HeraldBetterBeDrones Capture Images No One Was Suppose to SeeBetterBe KCS-content last_img read more

ASML hit by fears over supply chain

first_img whatsapp ASML hit by fears over supply chain KCS-content by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMoneyPailShe Was Famous, Now She Works In {State}MoneyPailMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryNews SharperGrab A Tissue Before You See Richard Simmons At 72News SharperThe Sports DropForgotten College Basketball Stars: Where Are They Now?The Sports DropUpbeat NewsThese 25 Celebrities Ruined Their Career in a Matter of MinutesUpbeat NewsMagellan TimesThis Is Why The Roy Rogers Museum Has Been Closed For GoodMagellan TimesTaco RelishOnly People With An IQ Of 130 Can Name These ItemsTaco RelishDrivepedia20 Of The Most Underrated Vintage CarsDrivepediaForbes14 Richest Black Billionaires RankedForbes Wednesday 13 April 2011 8:01 pm Tags: NULLcenter_img whatsapp Show Comments ▼ Dutch chip equipment maker ASML, a bellwether for the European tech sector, said yesterday some customers were holding back on confirming orders because the Japan quake had disrupted their supply chain.ASML, the world’s largest maker of semiconductor lithography machines, which map out electronic circuits on silicon wafers, reported a record quarterly profit on strong demand for the newest chips used in tablet computers and smartphones, but reported a lower-than-expected order book in the first-quarter.ASML also sounded a note of caution because of the devastating 11 March earthquake. Chief financial officer Peter Wennink said: “There is a level of uncertainty about the ability of the entire supply chain. Share More From Our Partners 980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orglast_img read more