Weekend economic news catch up

Charterbridge

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Weekend economic news catch up

No Royal Mail shares, 10–day wait for refund
Hundreds of thousands of savers who missed out on shares in Royal Mail have been forced to wait for more than 10 days to get their money back.
The Daily Telegraph Your Money, p. 8

Widows upset by pensions blunder
The Church of England has apologised to nearly 18,000 clergy pensioners over a gaffe in which many were told their husbands had recently died.
Sunday Express, p. 26

New tools to unearth top funds
A new screening process has been unveiled which aims to identify the minority of unit trusts which consistently beat their rivals. FundExpert.co.uk, the investment supermarket arm of financial adviser Dennehy Weller, has launched the “vintage Test”, one among several systems aiming to help DIY investors identify the best funds of any particular sector in which to invest.
The Daily Telegraph Your Money, p. 6

Norwegian fund going green on investments
Royal Dutch Shell was one of the companies dropped from the portfolio of the Norwegian sovereign wealth fund, one of the biggest in the world, after it reviewed the environmental and human rights ethics of its investee companies.
The Independent, p. 58

French look at Tilney
According to City sources, Société Générale, the French bank, is one of the bidders for the wealth management business Tilney.
The Sunday Times Business, p. 2

£31bn held in dud pension funds
Research has revealed that billions of pounds is languishing in poorly performing funds, causing Bestinvest to advise savers to review their investments.
The Sunday Times Money, p. 1

Home loan approvals surge amid signs of recovery
Gross mortgage lending increased by almost a fifth between the second and third quarters, according to data from the Council for Mortgage Lenders.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 4
Also appeared in : The Independent, p.55

Royal Bank of Scotland review is ‘imminent’
The chief executive of Royal Bank of Scotland has told staff that the Treasury’s review of whether to split up the bank has taken up too much management time and has indicated that the outcome is imminent.
The Times, p. 60
Also appeared in : The Daily Telegraph, p.35, The Times, p.58

Bank to offer 300,000 instant loans
Instant loans will be offered to hundreds of thousands of small businesses with Barclays, the bank will announce tomorrow.
The Mail on Sunday, p. 98

Wonga buys German pay group
Wonga has stepped up its international expansion with the acquisition of Bill-Pay.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 18
Also appeared in : Daily Mail, p.95, The Times, p.60, The Times, p.58

Bankers bonuses hit almost £5bn
Bankers’ bonuses are set to rise for the first time since 2010 to nearly £5 billion due to an increase in business in the City, according to the Centre For Economics & Business Research. The Financial Conduct Authority’s chief executive, Martin Wheatley, told the British Bankers’ Association’s annual conference that “concerns remain” for the regulator over how bonuses can affect bankers’ behaviour.
Sunday Express Financial, p. 1

HSBC to contest US court penalty
HSBC is to appeal against a $2.46bn ruling imposed by a US court after the UK bank lost a class action lawsuit against Household International.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 19
Also appeared in : The Daily Telegraph, p.36

US tax fight sees closure of second Swiss bank
Swiss bank Frey & Co has closed shop because of the ongoing US campaign against wealthy Americans suspected of using the European country’s secretive banking system to skirt domestic tax laws.
The Independent, p. 53

Barclays and Libor – back in the news
The Financial Conduct Authority says it is ready to review new allegations about potential Libor-rigging at Barclays – despite having already fined the bank £290m for manipulating the key interest rate last year.
The Observer, p. 49

£40bn of student loans put on block
Rothschild and Barclays have been asked by the Department for Business, Innovation and Skills to study the feasibility of selling big tranches of student loans to the private sector.
The Sunday Times Business, p. 3

RBS bonuses tied to happy customers
Royal Bank of Scotland may change its bonus scheme to make staff suffer financially if customer service declines. Ross McEwan, the new chief executive, has warned that they can only win back the trust of the public, and politicians, by improving customer service.
The Sunday Times Business, p. 3

Plan to split banks ‘will hurt recovery’
In a letter to the Treasury, the British Bankers Association (BBA) says that new laws to split high street branches from the “casino” of investment banking have been botched by the Treasury and could jeopardise the economic recovery.
The Sunday Times Business, p. 2

Bank hints at early interest rate rise
Spencer Dale, chief economist at the the Bank of England, has said that it could rip up its forecasts for unemployment and interest rates within weeks because of the strength of Britain’s recovery.
The Sunday Times Business, p. 2

JP Morgan faces $4bn penalty
JP Morgan Chase is understood to have reached a settlement with America’s Federal Housing Finance Agency, only days after it agreed to pay regulators $100 million to settle a claim over its “London Whale” trading blunder.
The Times, p. 58

Businesses miss out on lending bonanza
The success of the Government’s Funding for Lending Scheme has been called into question after new research revealed that banks were still failing to give loans to Britain’s businesses – even though mortgage borrowing had surged to a 5-year high. The Bank of England reports that net lending to businesses fell by £2.3bn in the 3 months to August.
The Times, p. 59

The above articles appeared on 20/10/13 reproduced with the kind permission of Kantar Media UK. All rights reserved.

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