|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |   
Saturday 22nd of November 2008

All Financial News

The latest financial news:

November 21, 2008

Alistair Darling on a mission to kick-start lending

by Kay Murchie
”Alistair
Chancellor Alistair Darling is bracing himself to battle with the banks after the £37 billion bailout package for three UK banks has failed to kick-start lending. Mr Darling is considering tough new laws to force banks to lend to small businesses, in particular those who are still feeling the effects of the banking crisis and the economic slowdown. Meanwhile, pressure ...



Citigroup in sell-off and merger rumours

by Kay Murchie
”Citigroup
US banking giant Citigroup, Citigroup, is rumoured to be in merger talks with after its shares plunged 26% yesterday amid fears about its financial viability. Shares in the bank were trading at $54 two years ago, however, the shares closed yesterday at $4.71. The bank, which is one of the largest banks in the US, announced plans to slash 52,000 jobs earlier ...



CML: Repossessions rise sharply

by Kay Murchie
CML: Repossessions rise sharply
Figures from the Council of Mortgage Lenders (CML) have revealed a sharp rise in the number of properties repossessed by mortgage lenders. The organisation said repossessions in the July to September period rose by 12%, while full year numbers are expected to escalate by 70% compared to 2007. Meanwhile, the number of borrowers in arrears also increased when compared to the previous quarter, by ...



November 20, 2008

RBS apologises for financial difficulties

by Kay Murchie
”RBS
Sir Tom McKillop, the departing chairman of the Royal Bank of Scotland (RBS), has apologised for the bank’s difficulties. The apology came ahead of the shareholder vote for the £20 billion Government bailout, of which shareholders voted by 99% in favour. Earlier this month, the bank said it expected to report its first full-year loss since it was established almost 300 years ago. Sir ...



Insurers Prudential, Aviva see declines

by Elaine Frei
Insurers Prudential, Aviva see declines
Europe’s equities markets declined Thursday after miners and the oil sector saw declines. In London the FTSE 100 was down 3.26 percent to 3,874.99 while the FTSE 250 dropped 2.24 percent to 5,578.68. The biggest losers on the 100 were insurers as Prudential (LSE: PRU; NYSE: PUK) was down 16.33 percent and Aviva (LSE: AV) turned in the worst performance of the day with ...



CML: Slight rise in October mortgage lending

by Kay Murchie
CML: Slight rise in October mortgage lending
Figures released today from the Council of Mortgage Lenders (CML) have revealed a slight improvement in mortgage lending for October. Mortgage lending rose £18.7 billion, almost 7%, however, the CML has cautioned that continued weakness is expected in the market. Despite the slight increase, October’s lending is still 44% lower when compared with October 2007. According to Michael Coogan of the CML, ...



November 19, 2008

Lloyds TSB shareholders vote in favour of HBOS takeover

by Kay Murchie
”Lloyds
Lloyds TSB shareholders voted today on the proposed takeover of Halifax Bank of Scotland (HBOS) with 95.98% voting in favour of the deal. Shareholders also approved proposals to raise £5.5 billion by issuing new shares and special preference shares. The takeover will create a new banking giant called Lloyds Banking Group, which will comprise almost 150,000 staff and ...



NAEA: Property sales up second consecutive month

by Kay Murchie
NAEA: Property sales up second consecutive month
Figures from the National Association of Estate Agents (NAEA) have revealed that the number of properties changing hands rose slightly in October, for the second consecutive month. The NAEA’s survey found that the average estate agent sold seven properties in October, up from six the previous month. The slight rise is attributed to the fact that sellers are being more realistic ...



US consumer prices fall by record 1%

by Kay Murchie
”US
Figures from the Labor Department revealed that US consumer prices plummeted 1% in October - the highest fall since records began in 1947. This fall is seen as a sign of US economic weakness and have raised concerns of an imminent recession. The fall in consumer prices was attributed to the cost of fuel which fell for a third consecutive month. Meanwhile, ...



Further interest rate cuts expected

by Kay Murchie
”Further
This month’s interest rate cut from 4.5% to 3% was a unanimous vote from the nine-member Monetary Policy Committee (MPC), according to the minutes of the meeting, released earlier today. The 1.5 percentage point cut was the largest reduction since 1981, and took rates to the lowest level since 1955. The Bank of England is hinting at a cut to 2.5%, or even ...



Lloyds TSB shareholders vote for HBOS takeover today

by Kay Murchie
”Lloyds
Shareholders in Lloyds TSB are to vote today on the proposed takeover of Halifax Bank of Scotland (HBOS). Lloyds’ shareholders are expected to vote in favour of the takeover, which will create a new UK banking giant called Lloyds Banking Group, which will comprise almost 150,000 staff and 3,000 branches. However, not everyone has been in favour of the ...



November 18, 2008

Friends Provident leads UK insurers higher

by Elaine Frei
Friends Provident leads UK insurers higher
Most European equities markets saw gains Tuesday. The FTSE 100 added 1.85 percent to 4,208.55 in London, but the FTSE 250 was 0.85 percent lower to 5,925.98. Insurers were higher as Legal & General (LSE: LGEN) added 7.54 percent, Aviva (LSE: AV) was up 8.58 percent and Friends Provident (LSE: FP) gained 8.59 percent. The FTSE Eurofirst 300 was up 0.73 percent to 843.56 ...



Barclays puts board up for re-election but still faces shareholder revolt

by Kay Murchie
”Barclays
Last month, Barclays declined financial assistance from the UK Government and instead announced it was to raise £7.3 billion, primarily from Middle East investors. However, Barclays’ shareholders were believed to be infuriated at the generous terms offered to overseas investors and, as a result, the Association of British Insurers (ABI) was asked to get involved in order ...



Northern Rock leading the way in repossessions

by Kay Murchie
”Northern
Nationalised Northern Rock recently came under scrutiny after claims that it was being ‘aggressive’ in its repossessions policy. The lender is expecting to be responsible for 10% of all repossessions this year as its 125% mortgages are driving its repossession rate. The 125% mortgage from Northern Rock, known as ‘Together’ loans, represent around 30% of the lender’s mortgage book, they account ...



uSwitch.com: Banks quick to cut savings rate

by Kay Murchie
”uSwitch.com:
The Bank of England has made aggressive cut in interest rates in the last two months but lenders have been slow to pass on the reduction to consumers, until the Government intervened and some lenders finally caved in to the pressure. However, according to a study by price comparison service, uSwitch.com, providers have cut their savings interest rates either equal to, ...



Which? asks the Government where is consumer bailout?

by Kay Murchie
”Which?
Following the Government’s announcement last month that billions of pounds of taxpayers’ money will be pumped into the UK’s struggling banks, consumer group, Which? says now is the time for banks to help out consumers. The group, which has introduced a new campaign to reform banking, said the Government must ensure that the banks are putting consumers at the heart ...



UK inflation falls sharply

by Kay Murchie
”UK
According to the Office for National Statistics (ONS), UK inflation has fallen from its 16-year high of 5.2% in September down to 4.5%, as energy costs and oil prices have fallen. The fall was much more than economists had expected and will now pave the way for further aggressive interest rate cuts, following a cut of 1.5% to 3% earlier this month. The ONS ...



November 17, 2008

Kazakhmys, Gem Diamonds lead miners lower

by Elaine Frei
xxxxxxxxx
European equities markets were lower Monday on a prediction from the Confederation of British Industry predicted that the UK’s gross domestic product will decline by almost 2 percent next year, making the British economy look worse than earlier thought. In London the FTSE 100 was down 2.38 percent to 4,132.16 while the FTSE 250 dropped 2.46 percent to 5,977.03. Miners were lower as copper miner Kazakhmys (LSE: KAZ)dropped ...



Citigroup slashes a further 50,000 jobs

by Kay Murchie
”Citigroup
US banking giant Citigroup is to slash 52,000 jobs, far more than analysts had predicted. The job losses are in addition to the 23,000 staff cut already this year and the total 75,000 job losses represent a reduction of approximately 20% of its workforce, leaving it with 300,000 jobs globally. The bank, which is one of the largest banks in the US, has ...



London to suffer during recession

by Kay Murchie
”London
A study by the Local Government Association (LGA) has found that the south of England will be the worst hit during the recession. In its report, 'From Recession To Recovery: The Local Dimension', the LGA said cities in the north will weather the storm better because decades of cost-cutting and redundancies have made businesses there leaner and more efficient. According to the LGA, ...