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Tuesday 14th of October 2008

All Financial News

The latest financial news:

October 13, 2008

Royal Bank of Scotland leads rescued UK banks lower

by Elaine Frei
Royal Bank of Scotland leads rescued UK banks lower
European equities markets saw gains Monday as governments in Europe and the US began to release more details on how they will help banks try to recover from the credit crisis. In London the FTSE 100 was up 8.26 percent to 4,256.9 while the FTSE 250 added 3.72 percent to 7,030.35. Bucking the trend of gains for banks in Europe, ...



Stock markets give mixed response following bailouts

by Kay Murchie
”Stock
Shares on the FTSE 100 index recovered this morning on the news that the UK Government is to pump £37 billion into three of the country’s largest banks. The Government is to inject £20 billion into Royal Bank of Scotland (RBS) while a further £17 billion will be pumped into Lloyds TSB and HBOS. However, at the end of trading today, ...



BoE to loan £100m to Landsbanki

by Kay Murchie
”BoE
Talks between the UK and Iceland look like they have reached a satisfactory conclusion after the Bank of England (BoE) has agreed to provide a short-term secured loan of up to £100 million to the UK division of Icelandic bank, Landsbanki. It is hoped that the loan, announced to parliament this afternoon by Chancellor Alistair Darling, is to help maximise the returns ...



Mortgage brokers not so gloomy

by Gill Montia
Mortgage brokers not so gloomy
Prior to today's part nationalisation of Royal Bank of Scotland, HBOS and Lloyds TSB, the Intermediary Mortgages Lenders' Association (IMLA) had reported a slight improvement in its members' expectations. According to an IMLA poll of 486 intermediaries, mortgage brokers expect volumes to decline by 2.3% for first-time buyers over the next two months. In the case of remortgagers, volume is expected to fall by ...



Mortgage lenders cautious of increasing lending

by Gill Montia
Mortgage lenders cautious of increasing lending
The Council of Mortgage Lenders (CML) is asking for clarification from the Treasury regarding its suggestion that High Street banks benefiting from injections of capital from the Government will have to increase mortgage lending. The Treasury has made it clear that it will be asking for various commitments from bank rescue beneficiaries, Royal Bank of Scotland, HBOS and Lloyds TSB. The partly nationalised ...



European leaders meet to discuss financial crisis

by Kay Murchie
”European
The 15 Eurozone leaders have met in Paris this weekend and agreed on an emergency plan to prevent further financial institutions collapsing. France and Germany followed the UK by spending billions of euros to guarantee loans in leading banks in a bid to fight off financial meltdown. Banks' reluctancy to lend to each other has been the main problem of the ...



Lloyds revises HBOS takeover offer

by Kay Murchie
”Lloyds
The terms of Lloyds TSB’s takeover for Halifax owner, HBOS, have been revised. HBOS shareholders will now receive 0.605 shares for each HBOS share they own, revised from the original offer last month of 0.833. The news comes as the Government announces a £37 billion rescue plan, which will see £20 billion injected into Royal Bank of Scotland (RBS) and a further £17 ...



Iceland stock exchange remains closed

by Kay Murchie
”Iceland
Iceland had a disastrous week last week after the nationalisation of the country’s three largest banks. On Thursday, it announced that trading had been suspended on the OMX Nordic Exchange in a bid to prevent further crises. It was expected that the stock exchange would reopen today but it remains closed due to ‘unusual market conditions‘. Meanwhile, talks between Britain and Iceland ...



Shares recover as £37bn rescue plan revealed

by Kay Murchie
”Shares
Shares on the FTSE 100 index have risen this morning on the news that the UK Government is to pump £37 billion into three of the country’s largest banks. Under the terms of the deal, banks have agreed to scrap executive bonuses for the current year and future bonuses will be paid in the form of shares. In addition, banks will ...



Birmingham blighted by fall in city centre flat prices

by Gill Montia
Birmingham blighted by fall in city centre flat prices
Average property prices in some of the UK's city centres are showing sharp falls as a result of the plummeting values of flats and apartments. According to research by property price website, mouseprice.com, the value of city centre flats in Birmingham have fallen more steeply than anywhere else in the UK. Some areas of the city have seen prices decline ...



October 12, 2008

Talks in Britain and Iceland begin over frozen assets

by Kay Murchie
”Talks
Talks between Britain and Iceland have begun with regard to the British deposits frozen in Iceland’s banks. The talks commenced after Treasury officials headed to Reykjavik late last week to discuss its banking crisis and the affect on UK savers and councils with money in its banks. Britain's Local Government Association estimated 108 British local authorities have £750 million ...



G7 nations reveal five-point plan

by Kay Murchie
”G7
G7 ministers, which comprise the US, Japan, Britain, Germany, France, Italy and Canada have met in Washington, and issued a five-point plan to unfreeze credit markets. The nations have pledged to take ‘decisive action and use all available tools‘ to support financial organisations. The plan is intended to protect major banks and other financial institutions from collapse and ensure they can raise ...



October 10, 2008

Royal Bank of Scotland in steep decline

by Elaine Frei
Royal Bank of Scotland in steep decline
European equities markets saw another day of steep declines Friday. In London, the FTSE 100 was down 8.85 percent to 3,932.06, closing below 4,000 for the first time in five years, while the FTSE 250 dropped 5.59 percent to 6,778.31. Banks were hard-hit, with Barclays Bank (LSE: BARC; NYSE: BCS; TYO: 8642) down 14.17 percent as HBOS (LSE: HBOS) fell 19.09 percent ...



Mortgage providers uninspired by £500bn rescue plan

by Gill Montia
Mortgage providers uninspired by £500bn rescue plan
The announcement earlier this week of the £500 billion Government package of support for UK banks, plus a 0.5% cut in the Bank of England's base rate, has met with disappointing results in the mortgage market. According to financial website, Moneyfacts.co.uk, home loan providers have continued to withdraw products with high loan-to-value (LTV) ratios, leaving the number of deals that do ...



CAB reports sharp rise in mortgage arrears enquiries

by Gill Montia
CAB reports sharp rise in mortgage arrears enquiries
Latest figures from the Citizens Advice Bureau (CAB) show a steep rise in the number of enquiries about arrears on mortgages or secured loans, over the past three months. The number of people falling behind with their homeloans and seeking help from the charity increased by 51% over the three months to the end of September, compared with the ...



European shares tumble, FTSE hits five-year low

by Kay Murchie
”European
Following the sharp falls in Asian stock markets today, Europe has followed suit as the global financial turmoil continues. Tokyo’s Nikkei-225 index shed 9.6% and saw its biggest fall in a single session since Black Monday in October 1987. At the end of trading on Friday, Tokyo shares had plummeted 24% during the week. Meanwhile, the financial crisis has claimed ...



Frosty relations between Iceland and UK

by Kay Murchie
”Frosty
Prime Minister Gordon Brown said yesterday that the UK may freeze the assets of Icelandic companies after he branded Iceland’s failure to guarantee British savings in its failed banks as ’unacceptable and illegal‘. The two countries are battling over who should compensate British savers whose money is in Icelandic amid the collapse of the country’s banking system. Iceland has had a disastrous ...



Dow Jones plummets, Asian stocks follow suit

by Kay Murchie
”Dow
Yesterday, the continued uncertainty in the markets resulted in the Dow Jones index falling 678.9 points to 8579.2, its biggest percentage drop since October 1987. Today, stock markets in Asia followed suit after Tokyo’s Nikkei-225 index shed 9.6% and saw its biggest fall in a single session since Black Monday in October 1987. At the end of trading on Friday, Tokyo ...



October 9, 2008

Drax Group, other power generators see declines

by Elaine Frei
Drax Group, other power generators see declines
Equities markets in Europe declined again Thursday on concerns that governments’ efforts to avoid a global recession will not be sufficient. In London, the FTSE 100 closed down 1.21 percent to 4,313.8 after earlier gains, while the FTSE 250 dropped 0.3 percent to 7,179.43. Power generators saw declines on broker downgrades as Drax Group (LSE: DRX) fell 5 percent and Scottish ...



Stock markets fall, Iceland suspends trading

by Kay Murchie
”Stock
Despite shares recovering in early trading today as investors absorbed the news of a half a point percentage cut in interest rates, stock markets this afternoon have fallen as investors fear a world recession. On Wall Street, shares dipped despite opening 1.63% higher and this resulted in its counterparts losing ground. In London, the FTSE 100 was down 2.34%, France's Cac 40 ...