Yesterday’s decision by the US Federal Reserve to cut interest rates by 0.5% was well received by Wall Street, with the Dow Jones industrial average rising sharply on the news. This second rate cut in eight days, to 3%, was accompanied by the news that further reductions could be on the cards. In a statement, [...]
Yesterday the South African Standard Bank announced its plans to begin operating in the Angolan marketplace. Peter Wharton-Hood, the firm’s executive director, said that the starting point for the expansion could be in the investment and commercial sectors. Corporate investment banking may be the first step in the bank’s operations, leading on to the retail [...]
Robert Zoellick, the World Bank’s president, has said he wants to find faster methods of deploying funds to post-conflict African countries attempting to get back on their feet. Yesterday Zoellick met the finance minister of Liberia, Togo, Guinea, Sierra Leone and Ivory Coast during a visit to Liberia. The country endured over a decade of [...]
South African interest rates could be set to rise, as inflation reached 8.6% last month and is expected to break the 9% barrier. The Reserve Bank’s monetary policy committee will meet again in April to discuss possible rate changes, after announcing its latest decision this afternoon. Since mid-2006 the South African interest rate has risen [...]
Yesterday the Federal Reserve cut interest rates again, this time by 50 basis points to 3%. It is the second cut in just eight days, which have seen the interest rate cut by a total of 1.25% in a little over a week. The cuts have been seen by some as chairman Ben Bernanke proving [...]
A new website that can help consumers reclaim dormant savings has been launched this week. Mylostaccount.org.uk allows people to trace overlooked or abandoned bank, building society or National Savings and Investment (NS&I) accounts. In the past, dormant account seekers had to use three separate schemes to trace forgotten savings. It is estimated that up to [...]
New research from Skandia, the pension and long-term investment provider, shows that nearly 65% of financial advisers questioned in its survey believe that pension contributions will increase during the next three years. Around one-third of the 500 experts questioned expect there to be no change in the level of contributions, while just 3% expect to [...]
Under-fire Societe Generale has today announced that it may be willing to listen to takeover offers following the high profile ‘rogue trader’ scandal, which has left the bank billions out of pocket and open to criticism over its security and anti-fraud provisions by analysts throughout market sectors. The bank has been very much in the [...]
Swiss investment bank UBS has today unveiled further sub-prime woes following reports released today that show a loss over the last financial year at the bank further to substantial writedowns against its exposure to sub-prime linked assets, capping what has been a disastrous year for the group. The bank today reported that it had realised [...]
The Chancellor of the Exchequer, Alistair Darling, is proposing that the Treasury be endowed with new powers to enable it to deal with any future crises in the UK banking sector. The new measures would allow for a “period of non-disclosure” to enable the rescue of a financial institution to be kept secret until it [...]
Japan’s second largest broker, Daiwa Securities Group, has announced its profits fell sharply by 36% in the last quarter, as investment banking and the stock market both declined. It is expected that Daiwa will record a double-digit drop in annual profits in March, as is rival firm Nomura Holdings. Nomura was more exposed to subprime [...]
Moody’s Investors Services has published a report which reveals that Islamic banking, cited as more resistant to the negative consequences of the credit crunch, faces its own set of particular difficulties. Entanglement and displaced commercial risks are considered to be the most serious financial risks Islamic banks face. The report also states that the Islamic [...]
Today Mervyn King was reappointed as governor of the Bank of England, for a second term. There had been some speculation that his tenure might come to an end, due to the Northern Rock crisis. His reappointment means he will remain in post for the next five years. Chancellor Alistair Darling has expressed his delight [...]
The Noor Financial Investment Company has indicated its confidence in the Bahrain banking system. The Kuwaiti firm has said it has plans to expand into Bahrain, opening an Islamic investment bank with a share capital of $200m. Naser Al Marri, Noor’s vice chairman, said that the expansion plan would go ahead as soon as the [...]
Alliance & Leicester (A&L) has announced a £130 million rise in its losses from the credit squeeze. In a trading update, the bank reported a £130 million increase in writedowns on Treasury investments, taking losses to £185 million for the full year. The total sum includes a £155 million impairment charge on the value of [...]
The Competition Commission’s enquiry into payment protection insurance (PPI) has revealed that the large profits made by banks from selling PPI alongside personal loans have been propping up unprofitable lending. PPI is sold to cover repayments on loans, mortgages and credit cards should a borrower lose their job or become too ill to work. The [...]
Chiltern, the debt management specialist, has published its latest six-monthly monitor showing that since August 2007, the average yearly income of an individual with an informal debt management plan has risen by nearly £3,000 from £20,540 to £23,432. During the same period average debt levels have decreased by more than £300 from £26,662 to £26,344 [...]
The Financial Services Authority (FSA) has warned that “a significant minority” of people could find themselves in financial trouble in 2008, because of high levels of borrowing. In its Financial Risk Outlook report the authority expresses concerns that difficult market conditions are putting the business models of some financial service providers under strain. It expects [...]
The Scottish Secretary Des Browne has publicly criticised a fundamental facet of contract law in the UK which prevents Scottish bank notes from having the same legal enforceability as their English counterparts nationwide, in what has been described as an “irritation” and often results in the rejection of Scottish bank notes, despite the fact that [...]
The UK’s largest retailer Tesco has today announced that it will no longer be prepared to accept cheques as payment for its goods, in a bid to streamline the retail process and bring about improved security throughout its retail operation, following similar moves by a significant number of retail groups over the last few months. [...]
