Weekend roundup, Eddie Stobart haulage issue 5.5% bond, pressure to raise GAD income, HSBC ran fund for Assad’s paymasters.
‘LEGALISED PIRACY’ BY THE BANKS
Credit card firms are hiking up interest rates as Christmas approaches. Christmas shoppers are expected to put £4.6billion of online purchases on plastic and use cards to spend billions more on the high street. Banking watchdogs slammed the rise, which comes as families are struggling with record energy, food and fuel prices.
Sunday Mirror, p. 2
How to protect your cash from inflation
Holly Thomas looks at ways to make your savings work harder as rising prices compound the effect of low interest rates. Due to inflation, £10,000 put away in savings five years ago, earning an average interest rate of 1.04% and taxed at 20%, would have a spending power of just £8,899 today, according to figures from Moneyfacts. Eddie Stobart, the haulage company, launched a retail bond last week. It will pay a yield of 5.5% for six years. The minimum investment is £2,000 and the offer will close no later than November 27.
The Sunday Times Money, p. 4-5
Every little helps in war against inflation
Price rises are chipping away even further at people’s savings but there are still ways of earning more interest. Chiara Cavaglieri and Julian Knight report.
The Independent on Sunday, p. 93
Rising prices and lower annuities prey on the elderly
Retirees suffer a higher rate of inflation, so it’s vital they make the most of their pension pot, writes Julian Knight.
The Independent on Sunday, p. 94
Rule change to boost incomes
Feature looks at how pensioners with drawdown plans could also soon enjoy some relief after reports that caps on income could be raised by the government.
The Sunday Times Money, p. 6
Continuation of the Financial Mail’s campaign against Government rules that have slashed the income of tens of thousands of pensioners who saved diligently for retirement. Several leading pension experts, including Ros Altmann, director general of over-50s financial provider Saga, and the powerful Association of British Insurers, have also said the Government must amend the rules as a matter of urgency.
The Mail on Sunday, p. 79-80-81
Property ladder is tougher to climb
According to First Direct, second time around home buyers are being hit by the credit crisis. First-time buyers who bought a property in 2007 now need an extra £62,300 when trying to purchase their second home.
The Sunday Telegraph Money and Jobs, p. 5
Raising the standard
Skipton building society has raised the standard variable rate to which new borrowers will revert at the end of their deals from 4.95% to 5.49%.
The Sunday Times Money, p. 2
Bank branches in closure threat
Senior banking industry sources say that hundreds of branches are to be closed by the big high-street banks as they strive to build up their capital buffers ahead of Basel III, which will be introduced next year.
Sunday Express Financial, p. 1
Whitehall eyes RBS branch network
A network of 316 branches being sold by Royal Bank of Scotland could be nationalised and turned into a new business lender under a Whitehall plan. If no buyer can be found for the business, it could be set up as a standalone bank, owned 100% by the taxpayer, and would focus on lending to small firms, say sources familiar with the plan.
The Sunday Times Business, p. 3
HSBC ran fund for Assad’s paymasters
HSBC reportedly ran an offshore slush fund for billionaire businessmen who have bankrolled Bashar al-Assad, the president of Syria, during his civil war against his own people. The banking group, Britain’s largest, kept secret the fact that two of Assad’s relatives – described separately as the “face and brain” of Syrian corruption – were beneficiaries of a trust in the Cayman Islands. They also held accounts with HSBC in Geneva
The Sunday Times, p. 14
Focus on income stocks to beat stagflation
Financial advisers have recommended that investors should focus on income as “stagflation” looks set to stay for the long-haul. This follows Sir Mervyn King’s warning last week that the economy “faces the unappealing combination of a subdued recovery with inflation remaining above target for a while”.
The Sunday Times Money, p. 5
Small companies ‘can lead a revival if banks share £80bn’
The Bank of England has said that small firms could lead a revival in business investment, provided banks use a Government scheme to pump up their lending to entrepreneurs.
The Mail on Sunday, p. 91
Chancellor tipped to slash growth figures
Economists have said that growth forecasts for the economy in 2012 and 2013 are likely to be downgraded in the upcoming Autumn Statement, stoking fears of a triple-dip recession.
Sunday Express Financial, p. 3
Advisers will not dump middle-class clients
A survey by the Financial Services Authority allegedly shows that the 63% of advisers plan to retain clients with savings and investments worth between £20,000 and £75,000, while 38% will help those with less than £20,000 after next year’s shake-up of the financial advice market. In a survey of financial advisers last month, Allianz Global Investors found that more than one-third were planning to reduce service levels to clients with less than £50,000 to invest next year.
The Sunday Times Money, p. 8
The above articles appeared on 14\11\12 reproduced with the kind permission of Kantar Media UK . All rights reserved.
Charterbridge Private Financial Planning, Independent Financial Advice, Thornbury, Bristol