Carney willing to let inflation stay high

Charterbridge

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Carney willing to let inflation stay high

Carney willing to let inflation stay high
The new Bank of England Governor, Mark Carney, has hinted that he will take a more aggressive stance on monetary policy to allow the economy to reach “escape velocity”. The Canadian, who will begin his role in July, said that, although price stability was important, there were “tolerances” concerning the speed with which inflation can be brought under control when economies are struggling.
The Daily Telegraph Business, p. 1
Also appeared in : City AM London, p.3, Independent i, p.42, Independent i, p.40, Daily Mail, p.6, Financial Times, p.2

UK tax takes hit as QE increases pension deficits

Quantitative easing has blown open pension fund deficits, making firms pile money in to plug the gap and denying the taxman a major stream of revenue, according to analysis of new data from the Pension Protection Fund (PPF).
City AM London, p. 2
Also appeared in : Financial Times FT fm, p.9

RULES need to be relaxed […]
Pressure groups are warning that banning transfers and imposing maximum contributions on the National Employment Savings Trust will cause issues in light of pension reforms.
Metro London, p. 47

Experts warn against a UK exit from EU
The UK’s Investment Management Association has said that a UK exit from the EU would damage domestic asset managers’ competitiveness.
This abstract from the Financial Times was produced by Kantar Media
Financial Times FT fm, p. 21

Mortgages & Residential Property
Mortgage ‘crunch time’ raises fear of surge in repossessions
Britain is facing a “crunch” period from 2017 as the increase in interest-only mortgages during the boom years raises the prospect of more people losing their homes, the FSA is to say in the next few weeks.
The Times, p. 31

Housing boom ‘on the way’
The housing market is on the road to recovery as property experts predict the number of sales will soar in 2013. Earlier this month, the Council of Mortgage Lenders forecast total lending in 2013 to reach £156billion, up from £143billion last year and £141billion in 2011.
Daily Express, p. 9

Bank scandal helps Berlusconi
Revelations that Monte dei Paschi di Siena, the third-largest bank in Italy, hid losses by using complex financial transactions is causing a political storm in the country, and Silvio Berlusconi, the former prime minister, looks as if he will be the main winner of the spat.
International Herald Tribune, p. 1
Also appeared in : International Herald Tribune, p.18, City AM London, p.9, Financial Times Companies and Markets, p.16

The ‘faulty goods’ that could send Libor bill soaring
Banks could face a huge escalation of the compensation bill for Libor rigging if the businesses suing them rely on laws normally used in the sale of consumer goods.
The Times, p. 31

Early repayers help E.C.B.’s balance sheet
The European Central Bank’s effort to supply banks with funds during the height of the euro crisis was worth the risk.
International Herald Tribune, p. 18

Singapore in rate rigging row
Internal reviews by banks in Singapore have found evidence that traders colluded to manipulate rates in the offshore foreign exchange market, according to a sources.
City AM London, p. 2

Compensation fears for mis-selling victims
The Federation of Small Businesses warns that a Financial Services Authority compensation scheme may fail to help tens of thousands of victims of the interest rate swaps mis-selling scandal because it has “banks at its core”. Tens of thousands of small businesses – ranging from fish and chip shops to children’s nurseries – were sold the complex derivatives products alongside conventional bank loans.
The Daily Telegraph Business, p. 3

Ireland looks to change debt deal
Ireland will make changes to its proposal to ease the states’ bank debt burden, government ministers said yesterday, adding that failure to reach a deal with the European Central Bank could have catastrophic consequences.
City AM London, p. 2

US banks call for time
Michel Barnier, EU Commissioner in charge of financial-market regulation has said that he would have no problem if financial institutions in the United States delayed their implementation of the new Basel III rules on bank capital by up to two years.
The Times, p. 37

Fed warns on lack of unity by regulators
The Federal Reserve and Federal Deposit Insurance Corporation have warned banks not to assume countries will work together.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 1

BofA shifts derivatives to UK
Bank of America has begun to move more than $50bn of its derivatives business out of its Irish operation and into its UK subsidiary.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 13

E.C.B. OFFICIAL WANTS COOPERATION ON CURRENCY DEVALUATIONS
Jörg Asmussen, a member of the executive board of the European Central Bank, called Sunday for international cooperation to address the debate about competitive currency devaluation, saying central banks were not the ones to solve structural problems.
International Herald Tribune, p. 17

CONSUMER SLUMP ¦ TO LAST UNTIL 2017
The accountancy Deloitte has warned that consumer spending has improved only marginally since it fell off a cliff during the credit crunch, and this gloomy trend is set to continue. This came after the most recent forecasts from the official budget watchdog, the Office for Budget Responsibility (OBR), also predicted it would take until 2017 before households were consuming as much as in 2007.
City AM London, p. 1

French gain as US money market funds return to eurozone
Banks in France were the biggest beneficiaries of US investment in the Eurozone banking system at the end of 2012.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 16

Barclays mulls bond issuance
Barclays Bank is expected to launch a new bond in the coming months in response to the Bank of England’s demands that the UK’s biggest banks shore up their finances.
City AM London, p. 9

Banks brace for new wave of swaps claims
The finance watchdog is set to lay out the process for firms to apply for compensation if they think they were mis-sold interest rate swap products, opening the door for potentially billions of pounds of claims. Small firms argue they have lost out, sometimes to the tune of millions of pounds, by splitting a fixed rate loan into a variable rate loan and a swap product to fix the rate. Sky News reports that the bank bosses were concerned that FCA chief Martin Wheatley was pursuing a compensation scheme over misselling that could cost them a total of up to £10bn.
City AM London, p. 9

Singapore emerges as source of Laxfield’s £1bn fund
The government of Singapore Investment Corporation is financing a mortgage fund for the UK’s beleaguered office developers.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 18

RBS faces Libor penalty
A decision by financial watchdogs on a potential multi-million pound fine for Royal Bank of Scotland over Libor rate-fixing allegations could come as soon as this week.
Daily Express, p. 49

Barclays beefs up by raising billions
Barclays plans to raise billions of pounds ahead of a probe into funding by the Bank of England.
Daily Express, p. 49

The above articles appeared on 28/01/13 reproduced with the kind permission of Kantar Media UK. All rights reserved.

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