Weekend economic news headlines


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Weekend economic news headlines

Removing the stumbling block to a Junior Cash Isa
The government is seeking to make it possible for CTF money to be transferable to a Junior Cash ISA.
The Guardian Money, p. 5

That £160,000 home? It really costs £200,000
Developers have been criticised for advertising homes to first–time buyers at four–fifths of the actual price to entice them onto the government’s latest Help to Buy shared equity scheme and get the housing market moving.
The Daily Telegraph Your Money, p. 6

First-time buyers boost market
According to the Council of Mortgage Lenders, increased activity from first-time buyers boosted the UK mortgage market in March.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Money, p. 2

More London bankers in line for bonus pain as the EU cap gets tighter
Thousands more London bankers are set to be caught by the EU’s controversial bonus cap, it has emerged. The European Banking Authority’s board of supervisors has ruled that any employee making more than €500,000 (£420,000) annually should be deemed a “material risk taker”.
The Independent, p. 48-49
Also appeared in : The Guardian, p.33, Financial Times, p.1, The Daily Telegraph, p.37, Independent i, p.46

Lloyds’ shares rise above break-even level, raising hopes for sell-off of taxpayers’ stake
The prospect of the Government getting rid of its stake in Lloyds has moved closer as shares in the bank broke the level set as the breakeven price for taxpayers.
The Independent, p. 48-49
Also appeared in : The Guardian, p.32, Independent i, p.47

UBS bankers voice concerns on confidentiality and chat groups
Senior bankers at UBS have raised concerns about using Bloomberg chat groups to share confidential information about clients.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 17
Also appeared in : Financial Times, p.19

Former executive of Caja Madrid briefly jailed
Miguel Blesa, the former executive chairman of Caja Madrid, has become the first prominent Spanish banker to go behind bars since the start of the financial crisis.
International Herald Tribune, p. 9-11
Also appeared in : Financial Times, p.13

JPMORGAN launches convertibles option
JPMorgan will launch an income-focused investment trust next week, investing in convertible bonds.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Money, p. 3
Also appeared in : Independent i, p.47

Warning on Bank economy boost
Martin Weale, a member of the ratesetting Monetary Policy Committee, has doused hopes that the incoming Governor Mark Carney will be able to give the economy a boost on his arrival in July. Weale has warned that a new stimulus risked a damaging surge in inflation because price rises have already been higher than target for most of the past 4 years.
The Daily Telegraph, p. 39

ABN Amro profits fall 17% as Dutch economy contracts
ABN Amro’s profits fell 17 per cent in the first quarter.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 17

Money for old hope
Britain is facing a pension crisis as millions of workers are not saving enough for their retirement – and also living longer to boot, reports Hanna Tavner. To combat the problem, the Government is bringing in a new law to force all employers to enrol their staff on a workplace pension scheme
The People, p. 47

Bank chief sounds alarm over mortgage guarantees
In an interview to be broadcast on Sky’s Murnaghan programme today, Sir Mervyn King has warned that George Osborne’s Help To Buy scheme is ‘too close for comfort’ to a state guarantee for mortgages.
The Mail on Sunday, p. 20

Capitalism broken, warns Co-op boss
Euan Sutherland, the new boss of the Co-operative Group, claimed yesterday that capitalist business models are broken, as concerns continued to mount about the mutual’s banking business.
The Sunday Times Business, p. 2
Also appeared in : The Mail on Sunday, p.86

Could the stock market triple in the next 10 years?
Analysts have predicted that the FTSE 100 could almost triple to 18,500 in 10 years but there could be sharp bumps along the way. The index neared a 13-year high at the end of last week after an upbeat economic assessment by Sir Mervyn King, the outgoing governor of the Bank of England. It closed on Friday at 6,723. Thomas Becket, chief investment officer at Psigma Investment Management, said: ‘Investors who subscribe to the long-term growth view should back large, globally exposed companies with low valuations, Becket said. He tips banks and industrials, such as HSBC and Rio Tinto.’
The Sunday Times Money, p. 1
Also appeared in : The Sunday Times Money, p.6

City bankers boast they will dodge EU crackdown on excessive pay
The High Pay Centre, an independent body set up to monitor top pay, has concluded that the EU’s new rules on banking bonuses would do little top curb remuneration policies, with basic salaries likely to rise substantially in place of performance-related payments.
The Observer, p. 3

Co-op hopes £10 billion sale boosts its buffers
Co-operative Bank will to put a total of £10 billion of troubled loans up for sale or into run off as part of plans to improve its capital position. The bulk of those are commercial loans that originated from the Britannia Building Society, which the bank acquired in 2009. Co-op is set to appoint external banking advisers to help it sell what it can of the portfolio.
Sunday Express Financial, p. 3

Pressure on for bosses at JP Morgan and HSBC
HSBC and JP Morgan will face pressure from investors this week, when both hold their annual meetings. HSBC will hold its shareholder meeting on Friday and it is expected to come under attack over its renumeration packages, while JP Morgan is trying to head off a shareholder revolt ahead of its annual meeting on Tuesday in Florida.
Sunday Express Financial, p. 3

IMF puts spotlight on UK’s ‘recovery’
The International Monetary Fund could deliver its verdict on the state of the UK economy as early as the middle of this week. Having previously backed Chancellor George Osborne’s fiscal consolidation, the Fund only recently changed its tune, with Managing Director Christine Lagarde suggesting that the UK Government should slow the pace of its cuts in the face of sluggish growth. In the Chancellor’s favour, Britain has narrowly avoided a “triple-dip” recession because the economy grew in the first quarter. However, the underlying economic recovery remains fragile.
Sunday Express Financial, p. 3

Bank mortgage tracker increase ‘may be illegal’
The Bank of Ireland may have acted illegally when it increased tracker mortgage rates for 13,500 borrowers by up to 122pc, it has emerged. Justin Selig, of the Law Department, a London firm specialising in commercial and property litigation, is acting for one hundred borrowers. Rather than going direct to court, he wants to try other avenues such as the Financial Ombudsman Service and the Office of Fair Trading first.
The Mail on Sunday, p. 94

Bonus curbs for stock pickers
Experts managing money for pension funds, insurers and hedge funds would be hit by tougher curbs on pay than investment bankers, under new rules threatened by Brussels.
The Sunday Times Business, p. 2

Coming soon: Credit Crunch 2 – and this time it’s personal
Dominic Lawson gives his view on the current speculative bubble of the UK economy, with a warning that another credit crunch could be around the corner. Mentions Ros Altmann, the former pensions adviser to Tony Blair.
The Sunday Times, p. 22

The above articles appeared on 18/05/13 & 19/05/13 reproduced with the kind permission of Kantar Media UK. All rights reserved.

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