Prepare for interest rate rise next spring, homeowners told

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Prepare for interest rate rise next spring, homeowners told

Mortgages & Residential Property

Prepare for interest rate rise next spring, homeowners told
In an interview with Sky News, Martin Weale, a member of the Bank of England’s Monetary Policy Committee, signalled that an interest rate increase from the historic low of 0.5 per cent was probable next spring but could come sooner. The Bank expects earnings to start outpacing inflation in the second half of this year,
The Times, p. 1-2
Also appeared in : The Times, p.51, City AM London, p.3, The Guardian, p.2, Financial Times, p.4, Independent i, p.50, The Independent, p.62, The Daily Telegraph Business, p.1, The Independent, p.62

Mortgage boom grows as house prices keep soaring
The Council of Mortgage Lenders has reported mortgage lending hitting new post-crisis highs. The intense pressure in the market could lead the Bank of England to cut back the Help to Buy mortgage guarantee scheme, to stop the market overheating.
City AM London, p. 2
Also appeared in : The Daily Telegraph Business, p.3, Financial Times, p.4, The Guardian, p.31, Independent i, p.11

Housebuilding revival continues but can’t keep pace with demand
Housebuilding in England has recovered to levels not seen since the start of the financial crisis, giving the coalition’s controversial Help to Buy scheme a boost.
The Times, p. 44
Also appeared in : The Times, p.42

Retail Banking

Lloyds brings in the machines with plan for mini-banks
Lloyds is looking at setting up a range of mini-branches across London with fewer staff and more machines, it has emerged.
City AM London, p. 1

Round Up

Nationwide seizes market share
Nationwide made £21.6bn of mortgage loans in the nine months to December and believes that the seven-day current account switching scheme has given the lender a boost – 316,000 new current accounts were opened.
City AM London, p. 11
Also appeared in : Independent i, p.51, The Guardian, p.32, Financial Times Companies and Markets, p.22, The Times, p.44, The Independent, p.63

RBS will slash thousands of jobs next week
Royal Bank of Scotland is expected to announce tens of thousands of job cuts next Thursday as part of plans to reduce its cost base. The cost-cutting plan is understood to have been dubbed “Project Cook” internally.
City AM London, p. 2
Also appeared in : Financial Times, p.1, The Daily Telegraph Business, p.1, The Times, p.49

Governor of Nigeria’s central bank suspended
The Nigerian naira fell against the dollar after President Jonathan suspended the Governor of the central bank weeks after he claimed that $20bn of state oil revenues had gone missing.
The Times, p. 44
Also appeared in : The Daily Telegraph Business, p.4, Independent i, p.48

Tchenguiz victory in SFO case
Robert and Vincent Tchenguiz have won a key battle in their £300m damages suit against the Serious Fraud Office, after the Court of Appeal ruled that sensitive documents relating to the property moguls’ unlawful 2011 arrests must be produced in court.
The Daily Telegraph Business, p. 3
Also appeared in : The Independent, p.62, Independent i, p.50

Bank to pay $1bn to heirs of Leo Kirch
Deutsche Bank said on Thursday that it would pay more than €775mn to the heirs of the late media mogul Leo Kirch to settle a long-running dispute over the collapse of his empire.
International New York Times, p. 17
Also appeared in : Independent i, p.51, Financial Times Companies and Markets, p.18

ECB’s favoured gauge may miss big picture
The European Central Bank’s non-worry about deflation is partly based on the market’s long-term inflation expectations.
International New York Times, p. 21
Also appeared in : Financial Times Companies and Markets, p.31

JP Morgan’s commodity sales fall
JP Morgan Chase’s commodity revenues fell 12 per cent last year, the bank said in a filing yesterday, shedding new light on the unit as the bank prepares to sell its physical trading arm to Swiss-based trader Mercuria.
City AM London, p. 16

Lloyds bondholders shaken by talk of cheap bank buyback
Lloyds Banking Group is facing a run-in with retail and institutional bond investors after threatening to buy back billions of its high-interest-bearing debts at less than their face value. The row emerged amid preparations for a government sell-off of billions of pounds of Lloyds shares.
The Times, p. 49

Lloyds creates holding company for TSB float
Lloyds Banking Group is reportedly preparing for the flotation of its TSB arm later in 2014.
The Guardian, p. 32

Lloyds investors to escape heaviest Coco losses
It is expected that Lloyds Banking Group will waive its right to impose heavy losses on investors from ‘bail-in bonds’ that it issued.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 17

A $14m pay packet
The chief executive of Bank of America, Brian Moynihan, has had his salary and bonus for 2013 boosted by 17pc to $14m after the lender made its best profit since 2007.
The Times, p. 41

Bank of Ireland tax claim dismissed for second time
A British tax tribunal has rejected a second attempt by Bank of Ireland (BoI) to avoid £27m in corporation tax by transferring a financial contract between subsidiaries.
The Daily Telegraph Business, p. 4

French malaise hits growth in the struggling eurozone
The Eurozone’s private-sector companies stuttered in February, a new Markit survey has warned. Analysts said the signs of weakness kept further rate cuts on the table at the European Central Bank, where President Mario Draghi is battling the threat of deflation. Markit’s surveys suggest growth of 0.5pc for the eurozone in the current quarter, accelerating from the 0.3pc seen at the end of last year and the strongest pace for 3 years.
The Independent, p. 66

BBVA to buy US digital lender Simple
BBVA has agreed to buy Simple, a fast-expanding digital bank in the US.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 20

EU watchdog insists ‘progress’ made in Euribor rate reform
The European Banking Authority (EBA) has claimed “significant progress” has been made in strengthening the Euribor benchmark borrowing rate against potential manipulation by traders.
The Daily Telegraph Business, p. 5

The above articles appeared on 21.02.2014. Reproduced with the kind permission of Kantar Media UK. All rights reserved.

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