Brussels fears UK is stoking new debt-fuelled home boom

Charterbridge

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Brussels fears UK is stoking new debt-fuelled home boom

Brussels fears UK is stoking new debt-fuelled home boom
Chancellor George Osborne’s new scheme to boost mortgage lending could simply push up house prices and household debt, rather than benefit the economy, the European Commission warned yesterday. The Help to Buy scheme will use shared equity and mortgage guarantee programmes to make it easier for those on low incomes or with low deposits to buy a house.
City AM London, p. 3

Osborne’s plan will inflate house prices, say economists
The Organisation for Economic Co-operation and Development has joined outgoing Bank of England governor Sir Mervyn King and former chancellor Alistair Darling in warning that George Osborne’s attempts to kickstart Britain’s housing market risk fuelling property prices. They say that house prices, already unaffordable for many Londoners, could go higher.
Evening Standard London, p. 8

Lloyds group sells international private banking business units
Lloyds announced yesterday that is is selling or closing its private banking units overseas, in the latest stage of its plan to refocus operations on the UK retail banking market. The international private banking business will be sold to Union Bancaire for up to £100m. Initially £65m in cash will be transferred, with the remainder dependent on the unit’s performance.
City AM London, p. 6
Also appeared in : The Times, p.38, Financial Times Companies and Markets, p.16, Daily Express, p.51, Independent i, p.49, Daily Mail, p.67, Daily Mirror, p.47, The Independent, p.60

Boost for Osborne as OECD backs cuts and says UK on the right path
The OECD has expressed support for the UK government’s policy of spending cuts, saying it was on the road to balancing its budget, on the same day that the European Commission sanctioned an extension of time for eurozone countries required to reduce their budget overspends. Pier Carlo Padoan, OECD chief economist, also took the opportunity to state concerns that the euro will remain a danger for the world economy.
The Guardian, p. 26
Also appeared in : The Times, p.35, Evening Standard London, p.43, Independent i, p.46, The Sun, p.2

De La Rue to cut £40m in costs
De La Rue set up a £40m-a-year cost-cutting drive yesterday as it blamed increasing competition and delays to orders on an 8 per cent fall in annual revenues to £484m.
Independent i, p. 48
Also appeared in : Daily Mail, p.67, Financial Times Companies and Markets, p.20

E.C.B. warns of risk from euro zone recession
The European Central Bank warned on Wednesday that the euro zone’s slumping economy and a surge in problem loans were raising the risk of a renewed banking crisis, even as overall stress in the region’s financial markets had receded.
International Herald Tribune, p. 14-17
Also appeared in : International Herald Tribune, p.1

Gerhard Ammann appointed permanent chairman at ENRC
The board of scandal-tainted mining group ENRC yesterday confirmed that Gerhard Ammann has been appointed as chairman, having held the role on an interim basis since Mehmet Dalman’s resignation last month.
City AM London, p. 22

End of road for Fannie Mae
A bipartisan group of US senators hopes to introduce a bill in the coming weeks to overhaul the housing finance system and wind down governmentrun Fannie Mae and Freddie Mac.
City AM London, p. 2

Forecasters at IMF say Chinese growth slowing
The Organisation for Economic Cooperation and Development has drawn attention to slower levels of Chinese growth in yesterday’s economic outlook.
City AM London, p. 4

US banking industry makes £26bn in first quarter of 2013
The US banking industry reported earnings of $40. 3bn (£26. 5bn) during the first quarter of 2013, in part due to one-time changes in income and expenses at big banks, according to data released yesterday by the Federal Deposit Insurance Corporation.
City AM London, p. 4

CARNEY’S FINAL CANADIAN MOVE – RATES HELD
Mark Carney, the soon to be new governor of the Bank of England, presided over his final interest rate decision as head of the Bank of Canada yesterday.
City AM London, p. 8

UK’s growing economy will leave Europe behind
The British economy will perform better than all its major European rivals this year as the sluggish recovery picks up pace, according to a leading global watchdog. The Organisation for Economic Cooperation and Development forecast growth of 0.8pc in the UK in 2013 – slightly weaker than the 0.9pc previously expected. Jose Manuel Barroso, president of the European Commission, admitted that governments need to ‘do more to help themselves get back to growth and move Europe beyond the crisis’. He added: ‘There is no room for complacency.’
Daily Mail, p. 19

WE’LL TAKE ON THE PAY DAY GIANTS
One of Britain’s smallest banks has piled pressure on payday giants that charge rip-off rates. The Airdrie Savings Bank yesterday launched short-term loans for customers.
Daily Mirror, p. 47

Ex-partner at KPMG to face court hearing
It has emerged that a former partner at accountancy giant KPMG is due to appear in court on Friday in the US accused of insider dealing. Scott London, 50, agreed earlier in the week to plead guilty to one felony count of securities fraud. He faces a maximum of 20 years in prison. The US Securities and Exchange Commission said London passed privileged information to his friend, Bryan Shaw, who has also admitted illegal conduct, enabling the latter to make at least $1.27m (£840,000) in illicit profits.
Daily Mail, p. 67

tory donor is new finance watchdog
A former banker handpicked by Chancellor George Osborne to help police the financial system donated hundreds of thousands of pounds to the Tory Party.
Daily Mail, p. 19

BoE fears weaker benefit from pound for exports
Britain’s cheaper currency may be failing to boost exports because demand for the country’s goods has become less price-sensitive, Charles Bean, a Bank of England official, said yesterday.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 4

Complaints on finance firms hit record high
Customer complaints about finance firms almost doubled last year, breaking the half-million mark, the Financial Ombudsman Service (FOS) revealed yesterday.
City AM London, p. 6

Bank’s new governor may have to devalue sterling, says Pimco
Forthcoming Bank of England governor Mark Carney plans to devalue the pound by as much as 15% following his July takeover in a last-ditch attempt to help the UK economy recovery, says Pimco.
The Daily Telegraph Business, p. 5

Commerzbank raises €2.5bn to repay bail-out
Commerzbank has raised £2.1bn worth of capital to repay part of its 2009 bailout by the German state and insurer Allianz, reimbursing them EUR1.6bn and £750m respectively.
The Daily Telegraph Business, p. 4

Switzerland moves to let banks settle tax inquiries
The Swiss government said Wednesday that it would allow its banks to disclose information on American clients with hidden accounts, a watershed move intended to help resolve a long-running dispute with the United States over tax evasion.
International Herald Tribune, p. 1-17

The above articles appeared on 30/05/13 reproduced with the kind permission of Kantar Media UK. All rights reserved.

Charterbridge Private Financial Planning, Independent Financial Advice, Thornbury, Bristol.