Housing boom predicted as lending leaps

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Housing boom predicted as lending leaps

Housing boom predicted as lending leaps
The Council of Mortgage Lenders published figures yesterday showing that mortgage lending leapt by nearly a quarter in May, prompting experts to predict another housing boom. Total gross mortgage lending in May rose to £14.7bn, up 21 per cent on the previous month and 17 per cent higher than the £12.6bn in May 2012.
The Daily Telegraph Business, p. 1
Also appeared in : Financial Times, p.2, The Guardian, p.4, The Times, p.42

Share Dealing Services
Marketsdive on fears over US move to end stimulus
Shares fell on both sides of the Atlantic yesterday and gold slumped close to a three-year low as markets took fright at the US Federal Reserve signalling it could begin scaling back its stimulus programme this year. Also weighing on the markets was the move by China’s central bank to reject a plea to increase money supply, while fresh data showed that Chinese manufacturing has contracted again, hitting a nine-month low.
The Daily Telegraph Business, p. 1

Lenders face penalties after ‘doing most to aid economy’
Barclays and Nationwide, which have both increased their net lending this year, face the threat of being forced by the Prudential Regulation Authority (PRA) to raise more capital or sell off loans to meet a new “leverage ratio” target. Nomura has estimated that if Barclays is forced to meet the 3 per cent ratio by the end of the year, it would have to raise as much as £8bn in fresh equity or shrink its assets by £280bn. In the case of Nationwide, the impact could be even more severe due to its mutual status. As a building society, it does not have recourse to shareholders.
The Daily Telegraph Business, p. 1-4
Also appeared in : The Guardian, p.37, The Guardian, p.37, The Independent, p.50-51, The Times, p.42, The Times, p.45

Banks ordered to plug balance sheets by £27bn
The Prudential Regulation Authority warns that Barclays, Lloyds Banking Group and Royal Bank of Scotland must raise £27. 1billion to cover their risks.
Metro London, p. 62

Banking/EU finance ministers work on a plan to handle failing banks
Today European Union finance ministers will try to hammer out a blueprint for rescuing or winding down failing banks, aiming to lift the burden on the taxpayer and avoid a repeat of the chaotic Cypriot bailout. The meeting in Luxembourg comes after finance ministers from the 17 eurozone nations yesterday tackled a related problem: exactly how and when money from the European Stability Mechanism (ESM) bailout fund can be used to prop up a failing bank.
The Independent, p. 54-55
Also appeared in : International Herald Tribune, p.14, Independent i, p.49

Plans to taper QE3 send vulnerable currencies into retreat
Emerging markets are braced for a reversal in money flow as the US Federal Reserve provides clarity over its plan to start slowing its monetary easing.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 4

Businesses hit by surge in bank fees
Australian banks have been accused of gouging business customers, after bank fees paid by the sector surged by a quarter over the past three years despite minimal growth in borrowing.
Independent i, p. 47

CBI queries RBS ‘groundhog day’ decision as shares take a tumble
The Chancellor’s announcement that he may split up Royal Bank of Scotland has received a cool response in the markets, with the CBI warning it was an idea whose time had passed.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 3

Continent isolated
The Prudential Regulation Authority is imposing a minimum leverage ratio on banks as an adjunct to easy-to-game capital measures.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 16

Insurers cool on accounting reform
Insurance companies have given a lukewarm response to efforts to overcome their resistance to a long-delayed overhaul of the sector’s accounting rules.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 20

Japanese lender fined for sanction violations
New York State has imposed a $250 million fine on the Bank of Tokyo-Mitsubishi UFJ over claims that the bank, Japan’s largest by assets, transferred illicit funds on behalf of Iran and other countries blacklisted from doing business in the United States, officials announced Thursday.
International Herald Tribune, p. 16
Also appeared in : Financial Times Companies and Markets, p.16

World shares plummet as Bernanke signals end to QE
Traders and investors around the world began selling stocks and bonds yesterday, sucking money out of global markets after the US Federal Reserve signalled that it could begin rolling back its money-printing programme later this year and end it altogether by about next summer.
Independent i, p. 46

Attempt to protect Swiss banks
The Swiss government is expected to make a last-ditch bid to protect its banks from criminal charges in the US by issuing an executive order allowing them to pass data to US authorities, a day after parliament blocked a bill that would have allowed banks to do just that.
Independent i, p. 48

The above articles appeared on 21/06/13 reproduced with the kind permission of Kantar Media UK. All rights reserved.

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