Third helping of recession is starting to look more likely


googleplus linkedin

Third helping of recession is starting to look more likely

Third helping of recession is starting to look more likely
Economic comment predicting more austere times ahead.
The Independent,  p. 53

Christmas clubs with no savings safety net
A consumer feature on the risks of investing in Christmas clubs.
Daily Mail,  p. 53
Inflation set to erode nest eggs for years
A financial advice feature on the effects of inflation on pension and savings products.
Daily Mail,  p. 50
Rates plunge for £18bn in bonus deals
A feature on easy access savings accounts for new savers.
Daily Mail,  p. 50
Boss: Help millions of ISA savers
The boss of Nationwide has said doubling a tax break for savers is a “no brainer.” Graham Beale ramped-up calls for the cash ISA limit to be increased from £5,640 to £11,280 ahead of next week”s Autumn Statement. The call for action came as Nationwide revealed profits nearly halved to £124million in the six months to September 30 after the group faced a number of one-off costs. The country”s biggest building society set aside another £45m to cover PPI mis-selling – taking its total to £173m – and took a big hit on commercial property loans.
Daily Mirror,  p. 44
Delivering on savings
The Post Office is giving savers a glimmer of hope with the launch of two new products. The Reward Saver, paying 2.25% interest, is the better of the two deals as long as you are happy giving 30 days” notice to get your cash. You can get slightly higher, at 2.4%, with Tesco Bank”s best-buy instant-access account but this does include a bonus of 1.15% for the first 12 months. Post Office”s Premier Cash ISA, also paying 2.25%, is not so competitive as it is beaten by M&S and Cheshire Building Society, which both offer 3%.
Daily Mirror,  p. 44

A study from Prudential has found that one in five people aged 40 and over has debts they hide from their partner
The Sun,  p. 47
New advice rules could put end to scandals
It has been reported that a shake-up of how we pay for independent financial advice could backfire by making advisers too expensive for many ordinary people. From December 31, independent financial advisers (IFAs) will be banned from charging their clients commission and will instead have to negotiate with them a pre-agreed fee. The controversial new system has been forced through by City regulator the Financial Services Authority (FSA) because it was thought too many advisers were using commission to rip off their clients.
Daily Express,  p. 44-45
Millions more expect a longer working life
New research has found that the number of people who say they will be forced to work beyond their official retirement date has soared in the past two years. A survey carried out by insurer LV= has found that 6.5 million over-50s now think they will be unable to give up their jobs when they reach the State retirement age, an increase of 43 per cent compared with two years ago. Ray Chinn, head of pensions at LV=, said: “With the Government increasing the State pension age we would hope that those approaching retirement wouldn”t feel they need to work beyond it.
Daily Express,  p. 43
Despite the state pension age heading towards the upper 60s, record numbers of over-50s say they will be forced to work well beyond this age. Research from insurer LV= shows 6.5million people (4.5million of them women) will continue to work on – a 43% increase on the number in 2010 which was 4.5million. Men reckon they will have to work 6.9 years extra and women 5.8 – so they”ll still be grafting well into their 70s.
Daily Mirror,  p. 41
Five ways to secure a great pension
Report looking at five ways to secure a great pension.
Daily Mirror,  p. 40
It has been revealed that pensioners miss out on millions of pounds worth of retirement income because they make the wrong decision when it comes to cashing in their pension pot. In the current climate, when annuity rates are at their lowest level, it is crucial that those heading towards retirement ensure they get the best possible pension income. People make two major mistakes when turning savings into a lifetime income (an annuity). First, they accept the offer they get from the pension firm they have been saving with.
Daily Mirror,  p. 40-41
Big business needs to sort out pay
Anthony Hilton”s city comment discusses pensions. He has recently attended three different debates on executive pay, and in their combined total of five hours of debate, not one person stood up for the present system. He notes that executives get paid as they do because they demand it, not because they deserve it.
Evening Standard London,  p. 42
Unit & Investment Trusts and OEICS
Emerging fund sales top list of popular assets
Data out yesterday revealed that people seeking more return on their personal investments sent emerging market equities soaring to the top of a list of the best selling asset classes for the first time last month.
City AM London,  p. 14
“Party is over” warning for fixed income
The “party is over” for bonds, according to one of Canada”s biggest pension fund managers, Caisse de dépôt et placement du Québec, which plans to cut back significantly on its fixed income holdings.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets,  p. 32
Interest-only deals ban
RBS has announced its intention to abolish interest-only mortgages for homeowners.
Daily Mail,  p. 57
Why housing is the crucial issue for Londoners
The capital”s population is set to grow by a million over the next decade. Where are they all supposed to live, asks Ben Rogers. Polling by the BBC in the run-up to this year”s mayoral election found that housing ranked in the top four issues that mattered most to Londoners, with crime, the economy and transport. Unlike most places, house prices in London have continued to rise because of the growing population, relatively robust economy and limited space for new homes – and now most new homes are now sold to overseas buyers.
Evening Standard London,  p. 14
NATIONWIDE said its mortgage lending […]
Nationwide said its mortgage lending soared to a four-year high – with loans to first-time buyers almost doubling.
Metro London,  p. 69
We”ve helped first-time buyers – Nationwide
Nationwide yesterday claimed responsibility for approximately one in five of all new mortgages to first-time buyers, reporting that its gross mortgage lending in the six months to 30 September rose 15% to £10.2bn and, of that, £2.5bn was lent to first-time buyers.
The Guardian,  p. 30

Spain”s strong banks prepare to snap up assets from weak rivals
Spain”s healthiest banks are looking to buy assets from their bailed out counterparts as the weaker institutions are forced to shrink by the government, ratings agency Fitch said yesterday. The outcome of the bailouts will see increased concentration in the market as larger banks get bigger at the expense of smaller institutions. Banco de Sabadell is looking to buy Banco Mare Nostrum”s retail operations in two regions, a move which Fitch believes will kick off a major new round of merger and acquisition activity in 2013.
City AM London,  p. 16
Eurozone bailout fund gets the green light from highest court
The European Stability Mechanism (ESM) was yesterday approved by the European Court of Justice, removing another hurdle in the way of troubled governments like Spain getting bailed out.
City AM London,  p. 16
Green investment bank launched
The UK”s Green Investment Bank (GIB) was launched today, announcing multi-million pound investments in waste management and energy saving projects. The GIB is backed by £3bn of taxpayer money to invest in “green” projects which private investors are unwilling to fund alone.
City AM London,  p. 4
Why that cheap loan deal could cost you double
A consumer feature on the hidden costs of loan arrangements.
Daily Mail,  p. 52
Lloyds moves 3.5m accounts to Scotland
Millions of Lloyds customers are to have their accounts transferred to the Co-operative Bank following the sale of 447 branches in England and Wales to the latter.
Daily Mail,  p. 51
Lloyds under fire for “bad Co-op deal”
Lord Levene the City grandee has launched a broadside against state-backed Lloyds for selling 632 branches to the Co-op in a cut-price deal. The peer, whose dreams of establishing a bonus free bank have been left in tatters, described the decision as “extraordinary” and a bad deal for British taxpayers. He suggested that the bidding process may have been biased in Co-op”s favour due to a pledge from the Coalition to promote mutuals and co-operatives.
Daily Mail,  p. 71
Mutual pain for taxpayers
Nationwide”s public enthusiasm for the 316 branches being forcibly hived off by the Royal Bank of Scotland cannot be viewed with equanimity by rivals. This is not because the Nationwide is a cut above others. Anyone who has been inside one of its branches recently would testify that both the décor and the staff could do with some updating. Instead the Nationwide”s advantage stems from the “coalition agreement” between the Tories and the LibDems. Buried in the small print is a promise to online casino “support the creation and expansion of mutuals” so as to build a competitive banking sector.
Daily Mail,  p. 73
Tell the payday lenders: YOU”RE FIRED!
Opinion piece from Lord Sugar talking about payday loan companies and his campaign to end legal loan sharking.
Daily Mirror,  p. 8
Qatar cashes in at a bad time for Barclays
News analysis on Qatar Holding, the Gulf state”s direct investment arm, taking profits on its Barclays warrants at a time when the outlook for western investment banking is increasingly challenged.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets,  p. 23
Audit exposes Kabul Bank”s £540m fraud
A British-funded audit has revealed that Afghanistan”s biggest private bank orchestrated a massive fraud from its founding, with $861million diverted to a clique of beneficiaries.
The Daily Telegraph,  p. 20
Bank accused as “swaps row” developer told to repay loan
Clydesdale & Yorkshire Bank has been accused of aggressive tactics after it demanded that a property developer should repay a £5m loan after he complained about being missold an interest rate swap. “This behaviour is completely inappropriate in the context of what banks have agreed with the Financial Services Authority”, says Guto Bebb MP, the chairman of the all-party parliamentary group on swap misselling.
The Daily Telegraph Business,  p. 3
State Street “rogue” turns tables and says everybody knew of overcharging
A bank generated extra fees from one of Britain”s biggest pension funds by using “undisclosed commissions”, an employment tribunal was told yesterday. The practice by State Street was agreed by senior staff throughout the bank, rather than being restricted to a “rogue” individual, it was alleged. Edward Pennings is appealing against his dismissal as head of State Street”s Europe, Middle East and Africa solutions group after complaints about the allocation of assets for the Royal Mail pension fund.
The Times,  p. 51
King warns Carney of his tough future
Outgoing Bank of England governor Sir Mervyn King has welcomed the appointment of Mark Carney as his successor, describing the Canadian central banker as “outstanding”. However, he warns that Carney is coming to the role at a tough time, as the economy is in poor shape and the Bank is taking on new regulatory responsibilities.
City AM London,  p. 1
Outspoken Carney enjoyed a good financial crisis
Career report on Mark Carney, named yesterday to lead the Bank of England.
This abstract from the Financial Times was produced by Kantar Media
Financial Times,  p. 2
Bond bosses back Congress to avoid cliff
European bond managers have backed US politicians to avert the country”s $600bn (£375bn) fiscal cliff before the turn of next year, after a survey from rating agency Fitch revealed 82 per cent of bond fund executives said they were confident a deal would be struck.
City AM London,  p. 14

Economic recovery? Don”t hold your breath
Sir Mervyn King, the Governor of the Bank of England, yesterday described the UK economy as at a “tipping point”, as the OECD”s chief economist warned of the risk of “a major new contraction”.
Daily Mail,  p. 20

Fragile eurozone could cause new global slump
The Organisation for Economic Co-operation and Development warned in a grim report that the world economy risks careering back into recession after five years of crisis and the eurozone “could be in danger”. Sir Mervyn King, outgoing Governor of the Bank of England, echoed the OECD”s pessimism, telling MPs there is a “black cloud of uncertainty” from the eurozone overshadowing confidence, consumer spending and business investment, as he claimed the Old Lady will be in good hands with his successor Mark Carney.
Daily Mail,  p. 71
OECD slashes growth forecast
In its economic outlook published yesterday, the OECD, has slashed its forecast for growth in 2013 and warned that the risk of a serious global recession cannot be ruled out.
This abstract from the Financial Times was produced by Kantar Media
Financial Times,  p. 8
Happy new year? A third helping of recession looks much more likely
Remember when everyone was twitching about a double-dip recession? Those seem like halcyon days now that there”s a new phrase creeping its way into the popular lexicon: the triple dip.
Independent i,  p. 41
Cutting its forecasts for growth, O.E.C.D. sees risk of global recession
The Organization for Economic Cooperation and Development on Tuesday sharply cut its forecast for the world economy, warning that failure to end the euro crisis and avert a fiscal impasse in the United States could cause a global recession.
International Herald Tribune,  p. 14
Bank to challenge accounting that fails to show lenders” true level of risk
Sir Mervyn King has told MPs that the Bank of England”s Financial Policy Committee will raise concerns that British banks” balance sheets fail to give an “accurate representation” of their liabilities and strength.
The Daily Telegraph Business,  p. 5
Another Black Wednesday
The Guardian”s leader writer previews the government”s autumn statement on the economy, which is due to take place next Wednesday. It predicts a tax increase and claims that the government has “fared badly” on the economic front.
The Guardian,  p. 34
It”s an ugly prospect that makes UK look almost attractive
The Guardian”s economics editor, Larry Elliott, analyses the state of the UK economy, claiming that the Bank of England is correct to be “gloomy” about this issue.
The Guardian,  p. 27
The above articles appeared on 28\11\12 reproduced with the kind permission of Kantar Media UK. All rights reserved.

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