We all love bankers now that they've had a kicking

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We all love bankers now that they’ve had a kicking

Higher earners face £1,000 cut in state pensions
Pensions Minister Steve Webb has warned that high earners will lose £1,000 a year from state pensions under planned reforms.
Daily Mail, p. 12

An impeccable addition to Pru’s impeccable board. Pimm’s all round
Prudential has been busily collecting boardroom baubles since the spectacular mishandling of its attempted takeover of Asian insurer AIA. Yesterday the life insurer added another member of the City’s aristocracy in the form of Philip Remnant, who has been hired as the senior independent director.
The Independent, p. 53

Eye-catching pension deals
This week there have been three big transactions in the bulk annuities, with trustees of Tate & Lyle agreeing a £347 million deal with Legal & General covering almost half the members of its final-salary pension scheme, and the General Motors UK Plan yesterday securing the pensions of all 11,000 members via a £230 million bulk annuity deal with Rothesay Life.
The Times, p. 55

House prices are up £7,000 in a year
Britain’s property market is ending the year on a high with a raft of positive news for homeowners, a report has shown.
Daily Express, p. 2

New Bank chief warned on curbing inflation
MPs have warned the incoming Governor of the Bank of England that ditching Britain’s inflation target could lead to falling living standards and higher mortgage payments.
Evening Standard London, p. 13

Home sales will rise to highest level since crash, poll says
The number of homes bought in the UK will rise next year to the highest level since the market crashed in 2007, according to a Royal Institute of Chartered Surveyors’ forecast of the housing market in 2013.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 4

Nottingham and Shepshed link up
The Nottingham and Shepshed building societies are to merge in July. The Shepshed will add three branches to the 31 held by the Nottingham and will take the larger society’s name.
Independent i, p. 50

UBS set for $1bn fine next week over Libor fiddling accusations
Swiss bank UBS is set to be fined early next week for its role in fiddling Libor submissions. It is expected to be hit by a $1bn (£621m) fine, divided between four regulators across the UK, US and Switzerland. That is more than double the £290m charge Barclays attracted earlier this year, and represents a major blow to a bank already reeling from a rogue trader scandal and in the process of laying off 10,000 staff to cut costs and exit under performing businesses.
City AM London, p. 3

2,000 staff to go in Barclays’ major review
Barclays in tends to cut 2,000 investment banking jobs as part of a major review of the entire corporate structure.
City AM London, p. 6

New regulator to ban banks from competing too aggressively for more lending business
Banks competing “too aggressively” to raise market share will be banned, says the Prudential Regulation Authority.
City AM London, p. 11

INVESTORS can be an […]
Investors can be an ungrateful bunch. While eurozone officials were celebrating a double dose of good news in their bid to prevent the fragmentation of the single currency bloc, stock markets in Germany and France declined and the euro lost ground against the dollar.
Daily Express, p. 64

UBS set for fine
UBS is set to be handed a $1bn fine to settle charges of fixing the Libor interest rate.
Daily Express, p. 65

A two-tier Europe as Britain opts out of banking union
The Prime Minster has promised to secure ‘a better deal for Britain’ after an historic deal on EU banks established a two-tier Europe. European Commission president Jose Manuel Barroso suggested that the banking union, agreed in the early hours yesterday, was the start of a United States of Eurozone.
Daily Mail, p. 2

Osborne could scrap inflation targets to concentrate on growth
George Osborne has refused to rule out a suggestion from the incoming governor of the Bank of England that Britain’s inflation target could be scrapped.
Daily Mail, p. 10

Queen: Banks were too lax
The Queen yesterday brought bankers to account over the financial crisis – branding them “lax” in an unprecedented attack on the City.
Daily Mirror, p. 9

HMV facing the music with banks
HMV is in talks with banks after worse-than-expected sales. The entertainment chain has warned that it was “probable” it would breach two bank loan requirements next month and said that tough trading had resulted in “material uncertainties facing the business”.
Daily Mirror, p. 68

We must avoid the lost decade that still blights Japan
The Office for National Statistics reported in September that the average British household income last year was lower than at any time since 2002. And in October some other cheerful souls from the Commission on Living Standards predicted that even if the economy recovers, at least a third of the working age population – some 11 million people – will be no better off in 2020 than they were in 2000.
Evening Standard London, p. 14

Osborne hails EU deal that will ‘protect City’
The Chancellor today hailed an EU banking deal as protecting the City as Europe’s top financial centre. George Osbourne and other EU finance ministers reached the agreement just before 5am after 14 hours of talks and months of tortuous negotiations.
Evening Standard London, p. 2

Barclays low-key as Sants marches in
When Barclays appointed former FSA chief Hector Sants as head of compliance, it did not feel the market needed to be told.
Evening Standard London, p. 62

Bank’s new man could find it tough to shift the goalposts
If the new man at the Bank of England wanted a taste of the treatment he is going to get for the next five years, this week was it, writes Russell Lynch. Mark Carney’s first speech since he was wooed by George Osborne had plenty to get economists, accustomed to a 20-year inflation-targeting regime, hot under the collar.
Evening Standard London, p. 60

London is tipped to dodge the ‘jobs axe’ at Barclays
Barclays could cut up to 2000 jobs from its investment bank when its new chief executive Antony Jenkins reveals his strategic plans in the new year.
Evening Standard London, p. 59

Sigh of relief greets ‘major step forward’
Europe’s banks have praised the agreement on the historic banking union announcement yesterday hoping the union will reverse the disintegration of the European single market.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 6

EU seeks to peg bankers’ bonuses to salary
Under a tentative EU agreement that would mark the most severe crackdown on pay since the 2008 financial crisis, bankers’ bonuses in Europe would be capped at two times fixed salary.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 6

Battle lines drawn for next stage of integration
Analysis on the next phase of banking union: joint rescues for failed banks. Without a European framework for handling failing banks, critics argue the ECB would be hamstrung.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 6

Draghi’s rally cry for new EU powers
Mario Draghi, president of the European Central Bank, claims the EU needs fresh powers to wind up failing banks in a speedy push to the next phase of banking union.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 1

Deutsche Bank hit by one-off charges
Deutsche Bank announced fourth-quarter profits would be affected by a series of one-off charges as it tried to draw a line under hiving unwanted assets into a non-core operations unit.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 22

BofA pulls out of Japan private banking
Bank of America Merrill Lynch has announced that it is disposing of its Japanese private banking joint venture with Mitsubishi UFJ Financial Group, becoming the latest in a string of foreign banks to pull out of high net-worth retail banking in Japan.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 20

Fed begins stress tests on bank liquidity
The US Federal Reserve is carrying out its first ever system-wide stress test of bank liquidity that could force banks to change their funding sources.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 17

Spanish domestic lenders invest €430m in bad bank
A batch of domestic lenders has invested €430m in equity into Spain’s state-run bad bank which Madrid hopes will clear billions of euros of bad property assets from the balance sheets of nationalised banks.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 18

MUFG becomes latest bank fined over US sanctions
Japan’s biggest banking group, Mitsubishi UFJ Financial Group has agreed to pay an $8.6m fine after admitting to violating US sanctions.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 20

Deutsche Bank falls after profit alert
European market report featuring Renault being rewarded for selling its remaining 6.5 per cent stake in Volvo. Investors sent its shares climbing 1.5 per cent to €40.22.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 34

Central banks force rethink of forex strategies
News analysis looks at how central bank intervention has been blamed for creating an environment where volatility is at its lowest level in five years and trends fail to get off the ground.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 33

Virgin Money eyes listing after NBNK stake move
Virgin Money is looking at a potential stock market listing, following the acquisition by leading shareholder Wilbur Ross of a significant share-holding in shell acquisition vehicle NBNK.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 18

E.U. leaders reach accord on bank supervision
E. U. leaders gathering here Thursday for their year-end summit meeting hailed an agreement to place euro zone banks under a single supervisor, calling it a concrete measure to maintain the viability of the currency as well as a step in laying the groundwork for a broader economic union.
International Herald Tribune, p. 1-18

Wilbur Ross buys NBNK Investments stake in £8m deal
Wilbur Ross has bought a stake in listed NBNK Investments, paving the way for a consolidation of the banking and insurance sector.
The Daily Telegraph Business, p. 3

Banks have become too big to prosecute, says regulator
The largest banks have become too big to prosecute because of the impact criminal charges would have on confidence in them, Andrew Bailey, chief executive designate of the Prudential Regulation Authority, has admitted.
The Daily Telegraph Business, p. 1

Federal Reserve to test US banks for liquidity
The Federal Reserve is testing US banks for their liquidity, or their ability to raise cash quickly.
The Daily Telegraph Business, p. 4

Henderson loses Pennant-Rae to Royal London
Rupert Pennant-Rea yesterday announced he was standing down as chairman of FTSE 250 money manager Henderson Group at the group’s next annual meeting.
City AM London, p. 11

Henderson set to return home
Fund manager Henderson will move its tax base back to the UK following the Chancellor’s Autumn Statement last week.
Daily Mail, p. 89

Wealth wipeout for WH Ireland
The lunchtime gossip in packed City watering holes yesterday was of the sudden resignation of Paul Compton, chief executive of Manchester-based stockbroker and wealth management group WH Ireland.
Daily Mail, p. 88

MPs to probe Bank’s policy of QE
MPs will announce a wide-ranging inquiry into the Bank of England’s controversial policy of money-printing, it has emerged. The Treasury Select Committee, chaired by conservative MP Andrew Tyrie in the autumn said it intended to launch a probe into the winners and losers from quantitative easing or QE, amid concerns that pensioners and savers are suffering.
Daily Mail, p. 89

We all love bankers now that they’ve had a kicking
Economic comment noting that Unilever’s Paul Polman has said: “We are in for at least 10 years of slow economic growth in Europe, and I don’t see that changing. As for the US, that country has 46 million people relying on benefits, so don’t expect growth of beyond 2%.”
Evening Standard London, p. 62

City grandee to step down from Henderson
Focus on City grandee Rupert Pennant-Rea, who is stepping down as chairman of fund manager Henderson, which today said it would shift its tax base back to the UK. He is a former editor of the Economist and, as an independent director of The Times, will have a say in picking the newspaper’s new editor.
Evening Standard London, p. 61

Permal’s deal for Fauchier to finalise in 2013
It is reported that Permal, one of the world’s largest funds of hedge funds, is to acquire rival Fauchier Partners in a further sign of consolidation in the embattled industry.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 24

Henderson returns to London as chairman exits
Henderson Global Investors, the Anglo-Australian group, has become the first high-profile company to return to London from Dublin prompted companies such as WPP to follow suit.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 24

The Short View
Market analysis on how the Portuguese 10-year bond yields dropped close to 7 per cent, the level at which markets concluded in February last year that Lisbon had to seek help.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 17

Pound hurt by S&P warning
Currency reports, Sterling fell sharply after Standard & Poor’s became the latest rating agency to put the UK on negative watch.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 34

ING fundraising caps record year for Japan’s debt market
ING, the Dutch bancassurer, has completed the biggest ever fundraising by a European issuer, seizing on ultra-loose credit conditions created by the Bank of Japan.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 33

Osborne hints at scrapping Bank’s 2% inflation target
George Osborne signalled yesterday that he would consider scrapping the Bank of England’s 2 per cent inflation target and replacing it with a more pro-growth mandate.
Independent i, p. 49

SWITZERLAND’S CENTRAL BANK SAYS IT WILL DEFEND CEILING ON FRANC
The Swiss National Bank stressed its determination Thursday to keep a lid on the franc at 1.
International Herald Tribune, p. 19

Osborne backs inflation target review
George Osborne didn’t rule out switching the Bank of England’s inflation target to a focus on economic growth as he called for a debate on the future of Britain’s monetary policy framework.
The Daily Telegraph Business, p. 1-2

Banks are in charge of money, politicians are in charge of growth
Comment on the idea that the Bank of England should be given specific growth targets to meet.
The Daily Telegraph Business, p. 2

Chancellor welcomes inflation-target idea
George Osborne yesterday contemplated moving the Bank of England’s inflation target. The Chancellor welcomed the radical ideas of Mark Carney, the incoming governor of the Bank of England, who on Wednesday suggested targeting economic output instead of inflation, but said it would be up to the Government to decide.
The Times, p. 53

The Fed speaks and worried investors still sit on their hands
Market report leading with the historic move from the US Federal Reserve Bank failing to spark a global market rally as has happened previously this year.
The Times, p. 69

The above articles appeared on 14/12/12 reproduced with the kind permission of Kantar Media UK. All rights reserved.

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