OFT HAS SIGHTS ON INVESTMENT BANKING FEES
Investors have welcomed the suggestion that the Office of Fair Trading may examine the fee structures of the investment banking industry. Addressing a panel set up to examine the future of the UK's banking industry, the regulator's chairman Philip Collins said the industry's charging structure was something it could be 'looking at' in the coming months. Although the issue of charging structures is the subject of increasing political and regulatory interest, the organisation has moved to cool speculation that a formal investigation is looming.
DARLING TO USE BUDGET TO BACK BANKS TAX
Alistair Darling is expected next week to endorse plans for a global tax on financial institutions that pose a 'systemic risk'. The chancellor will use the budget announcement to detail his backing of the proposals. Key among his recommendations is the idea that the revenue raised should go to national governments rather than an insurance scheme, which he believes would encourage banks to take more risk. Darling's views are similar to those expressed recently by IMF head Dominique Strauss-Khan, who encouraged Europe to establish a system of orderly bankruptcy for cross border banks which would not rely on an insurance scheme to fund bailouts.
SME SECTOR HIT BY BIG FREEZE
Research carried out by Lloyds TSB Commercial suggests that the severe weather conditions experienced by the UK this winter have left small and medium-sized enterprises facing a combined loss of seven billion pounds. Nearly two-fifths of the respondents said that the harshest winter in decades had forced them to close down for a period of time, while 42 per cent said the weather had disrupted supply channels and delivery routes. Just 23 per cent of firms said they were unaffected.
UNIONS SET TALKS TO AVERT NATIONAL RAIL STRIKE
Under threat of the first nationwide strike by signalmen in 16 years, Network Rail announced on Friday night that it would meet next week at conciliation service Acas to discuss two separate disputes with the Rail, Maritime and Transport Union and the TSSA, which represents managerial grades. The RMT is already threatening to strike over a proposed restructure of Network Rail's maintenance operations and the loss of up to 1,500 jobs, but there are also worries over rostering of signallers in several areas of the country. The Acas talks will take place on either Monday or Tuesday.
CALL FOR GOVERNMENT SUPPORT
Entrepreneurs have called for Chancellor Alistair Darling's budget to support small and medium-sized businesses. A survey conducted by YouGov for industry body Small Business Britain has revealed that 40 per cent of SMEs want to see a fall in employers' national insurance contributions, over 45 per cent want banks to offer better rates to smaller firms and 35 per cent want interest rate cuts to be passed on in full. Small Business Britain is backed by Intuit UK, an accountancy software firm.
CONFIDENCE GAINS GROUND
An HSBC survey has revealed that small- and medium-sized businesses are regaining confidence in the longevity of the UK's economic recovery. The bank's latest Global Small Business Confidence Monitor reported that over three-quarters of SMEs now expected steady or increasing growth over the next six months. SMEs were also expanding internationally according to the report, with 21 per cent of 300 UK SMEs surveyed saying they had overseas operations. Noel Quinn, HSBC head of commercial banking UK, paid tribute to the 'crucial role' of UK-based SMEs in 'getting the UK through recession'.
SOUTHEND AIRPORT EXPANSION APPROVED
Plans to extend the runway at Southend Airport have been given the go-ahead, with Environment Secretary John Denham ruling out a public inquiry, after the proposals won cross-party approval. The expansion will create over 1,000 jobs and help ease traffic congestion around the south-east's other airports. The airport, which is owned by trucking group Eddie Stobart , is expected to prove popular with budget airlines and the expansion is now expected to be completed in time to provide an alternative to Stansted and London City Airport when London hosts the 2012 Olympics.
BARCAP'S DIAMOND AWARDED UP TO SIX MILLION POUND INCENTIVE
Bob Diamond, president of the investment banking arm of Barclays, has been granted up to six million pounds as a 'long-term incentive' award. The award, which will be paid out in 2012 if Barclays Capital meets performance targets, has come to light little more than a month after Diamond waived any 2009 cash bonus in an attempt to quell public outcry over bankers' pay. Diamond earned an additional 27 million pounds last year from selling his stake in the bank's asset management arm.
CADBURY EXECUTIVES JOIN KRAFT TOP TEAM
American food group Kraft Foods has elevated nearly all of the executives of UK confectionery group Cadbury into its top 50 management team. Although Cadbury's Chief Executive Todd Stitzer and Finance Director Andrew Bonfield have left their posts, Kraft confirmed on Friday that all of Cadbury's operational heads will stay on. However, Kraft Chief Executive Irene Rosenfeld's top 10 team remains unchanged, with one insider saying the move showed that Kraft's takeover of Cadbury was 'a bolt-on acquisition rather than a transformational deal'. Around 170 people at Cadbury's Uxbridge head office remain on consultation about their jobs.
CPP FOUNDER 120 MILLION POUNDS IN CREDIT AFTER FLOTATION
Hamish Ogston, the entrepreneur and founder of CPP, is to pocket 120 million pounds following the credit card protection firm's successful initial public offering on Friday. The shares were priced at the lower end of the predicted range of between 225 pence and 270 pence, giving the York based firm a market capitalisation of 396 million pounds. Both miner African Barrick Gold and real estate investment trust Metric Property Investments also made successful market debuts on Friday.
Keywords: PRESS DIGEST FINANCIAL TIMES MARCH 20
COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Investors have welcomed the suggestion that the Office of Fair Trading may examine the fee structures of the investment banking industry. Addressing a panel set up to examine the future of the UK's banking industry, the regulator's chairman Philip Collins said the industry's charging structure was something it could be 'looking at' in the coming months. Although the issue of charging structures is the subject of increasing political and regulatory interest, the organisation has moved to cool speculation that a formal investigation is looming.
DARLING TO USE BUDGET TO BACK BANKS TAX
Alistair Darling is expected next week to endorse plans for a global tax on financial institutions that pose a 'systemic risk'. The chancellor will use the budget announcement to detail his backing of the proposals. Key among his recommendations is the idea that the revenue raised should go to national governments rather than an insurance scheme, which he believes would encourage banks to take more risk. Darling's views are similar to those expressed recently by IMF head Dominique Strauss-Khan, who encouraged Europe to establish a system of orderly bankruptcy for cross border banks which would not rely on an insurance scheme to fund bailouts.
SME SECTOR HIT BY BIG FREEZE
Research carried out by Lloyds TSB Commercial suggests that the severe weather conditions experienced by the UK this winter have left small and medium-sized enterprises facing a combined loss of seven billion pounds. Nearly two-fifths of the respondents said that the harshest winter in decades had forced them to close down for a period of time, while 42 per cent said the weather had disrupted supply channels and delivery routes. Just 23 per cent of firms said they were unaffected.
UNIONS SET TALKS TO AVERT NATIONAL RAIL STRIKE
Under threat of the first nationwide strike by signalmen in 16 years, Network Rail announced on Friday night that it would meet next week at conciliation service Acas to discuss two separate disputes with the Rail, Maritime and Transport Union and the TSSA, which represents managerial grades. The RMT is already threatening to strike over a proposed restructure of Network Rail's maintenance operations and the loss of up to 1,500 jobs, but there are also worries over rostering of signallers in several areas of the country. The Acas talks will take place on either Monday or Tuesday.
CALL FOR GOVERNMENT SUPPORT
Entrepreneurs have called for Chancellor Alistair Darling's budget to support small and medium-sized businesses. A survey conducted by YouGov for industry body Small Business Britain has revealed that 40 per cent of SMEs want to see a fall in employers' national insurance contributions, over 45 per cent want banks to offer better rates to smaller firms and 35 per cent want interest rate cuts to be passed on in full. Small Business Britain is backed by Intuit UK, an accountancy software firm.
CONFIDENCE GAINS GROUND
An HSBC survey has revealed that small- and medium-sized businesses are regaining confidence in the longevity of the UK's economic recovery. The bank's latest Global Small Business Confidence Monitor reported that over three-quarters of SMEs now expected steady or increasing growth over the next six months. SMEs were also expanding internationally according to the report, with 21 per cent of 300 UK SMEs surveyed saying they had overseas operations. Noel Quinn, HSBC head of commercial banking UK, paid tribute to the 'crucial role' of UK-based SMEs in 'getting the UK through recession'.
SOUTHEND AIRPORT EXPANSION APPROVED
Plans to extend the runway at Southend Airport have been given the go-ahead, with Environment Secretary John Denham ruling out a public inquiry, after the proposals won cross-party approval. The expansion will create over 1,000 jobs and help ease traffic congestion around the south-east's other airports. The airport, which is owned by trucking group Eddie Stobart , is expected to prove popular with budget airlines and the expansion is now expected to be completed in time to provide an alternative to Stansted and London City Airport when London hosts the 2012 Olympics.
BARCAP'S DIAMOND AWARDED UP TO SIX MILLION POUND INCENTIVE
Bob Diamond, president of the investment banking arm of Barclays, has been granted up to six million pounds as a 'long-term incentive' award. The award, which will be paid out in 2012 if Barclays Capital meets performance targets, has come to light little more than a month after Diamond waived any 2009 cash bonus in an attempt to quell public outcry over bankers' pay. Diamond earned an additional 27 million pounds last year from selling his stake in the bank's asset management arm.
CADBURY EXECUTIVES JOIN KRAFT TOP TEAM
American food group Kraft Foods has elevated nearly all of the executives of UK confectionery group Cadbury into its top 50 management team. Although Cadbury's Chief Executive Todd Stitzer and Finance Director Andrew Bonfield have left their posts, Kraft confirmed on Friday that all of Cadbury's operational heads will stay on. However, Kraft Chief Executive Irene Rosenfeld's top 10 team remains unchanged, with one insider saying the move showed that Kraft's takeover of Cadbury was 'a bolt-on acquisition rather than a transformational deal'. Around 170 people at Cadbury's Uxbridge head office remain on consultation about their jobs.
CPP FOUNDER 120 MILLION POUNDS IN CREDIT AFTER FLOTATION
Hamish Ogston, the entrepreneur and founder of CPP, is to pocket 120 million pounds following the credit card protection firm's successful initial public offering on Friday. The shares were priced at the lower end of the predicted range of between 225 pence and 270 pence, giving the York based firm a market capitalisation of 396 million pounds. Both miner African Barrick Gold and real estate investment trust Metric Property Investments also made successful market debuts on Friday.
Keywords: PRESS DIGEST FINANCIAL TIMES MARCH 20
COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2010 AFX News
