What made the nationals: sponsored by PressChoice
UK BANKS COULD BE SHUT DOWN OR FORCED INTO BAIL-OUTS BY BRUSSELS
By Bruno Waterfield, in Brussels
Banks in London could be shut down or forced into taxpayer-funded bail-outs against the wishes of the British authorities under controversial “banking union” proposals from Brussels, it can be disclosed. The EBA’s panel of European officials would be given new powers to stamp its authority on potential disputes between both eurozone and non-eurozone countries, including Britain
UK FACES CLASH WITH BRUSSELS ON CITY
By Alex Barker in Brussels
Britain faces a fresh fight with Brussels over who has control over the City of London, as it confronts a key element of the plans for eurozone banking union that makes it easier for London to be overruled on contentious matters of supervision. In a proposal that will cause alarm among eurosceptic MPs, the European Commission will on Wednesday unveil reforms that strengthen the European Banking Authority, which co-ordinates rulemaking between the EU’s national supervisors.
BURBERRY WARNING ON PROFITS WIPES £1BN OFF STOCK MARKET VALUE
By Julia Kollewe
Luxury goods maker Burberry shocked the markets on Wednesday with a warning that sales had stalled in the clearest sign yet that slowing demand from China is having an impact on the booming sector. The profit warning wiped £1bn off Burberry’s market value, sending shares in the 156-year-old fashion house down nearly 21% to £10.87.
By Tim Wallace
Economists have slashed China’s GDP growth forecasts as the emerging giant stumbles on the twin pressures of the global economic slump and bad domestic investments. Premier Wen Jiabao was forced to hint that he could use the remaining 100bn yuan (£9.8bn) in the government’s fiscal stability fund to boost growth – although analysts have warned that large sums of government-led spending have been invested poorly, creating problems of its own.
DAVID MILES: ‘HELICOPTER DROPS’ OF MONEY UNWISE, BUT FURTHER QE IS POSSIBLE
By Dominic Jeff
The Bank of England may persist with its quantitative easing (QE) programme but it should not be lured into making “helicopter drops” of money to the population at large, a monetary policy committee (MPC) member says. In a speech delivered at the Scottish Economics Society annual lecture in Edinburgh last night, David Miles defended the Bank of England’s record since the financial crisis and its decision to print billions of pounds through the process of quantitative easing.
BANK MOANS SOAR… GUESS WHO’S WORST?
By Steve Hawkes, Business Editor
One of the biggest mis-selling scandals in history has sent bank complaints up almost a THIRD this year. And taxpayer-backed LLOYDS is the most complained about bank group in Britain, with three times as many as RBS. Figures yesterday showed the Financial Ombudsman Service received 27% more complaints about banks in the first half of the year.
BANK OF ENGLAND CHIEF SIR MERVYN KING ‘FAILED’ TO SPOT CRISIS WARNING SIGNS
By Hugo Duncan
The Bank of England faces fierce criticism over its handling of the economy as the race to succeed Sir Mervyn King as Governor finally gets underway. A hard-hitting report claims that an obsession with inflation led officials to miss the biggest financial crisis in living memory. The Policy Exchange think-tank says that the decision to recruit academic economists rather than financial market experts to key positions within the Bank meant warning signs of the looming crash went unnoticed.
GAMES TARNISH BAA
The Olympics hit passenger numbers at the five UK airports run by BAA last month, the airport operator said. UK passengers stayed at home and non-Olympic visitors opted to put off their journeys until after the Games. A total of 9.5 million passengers used BAA’s five UK airports in August 2012, down 2 per cent on last year’s figure.
FACEBOOK: MARK ZUCKERBERG ADMITS STOCK ‘DISAPPOINTING’
The boss of social network Facebook has spoken for the first time of the drop in his company’s market value. Mark Zuckerberg called the drop in his firm’s value “disappointing”. The value of its shares is almost half the $38 debut price in May. But he vowed that Facebook will make more money on phones than on desktops.
EXCLUSIVE: BUSINESS BANK PLAN ‘IS A PUFF’
By Alistair Bunkall
A Government proposal for a state-backed financial institution is criticised by sources at a UK bank for having too few details. Sources at a UK bank have rubbished the government’s plans for a British Business Bank telling me that they are nothing but a “puff”. The idea is that these banks would help to circumvent major lenders in the hope that they can credit flowing to small and medium sized businesses.
VODAFONE INVESTORS SAID TO FACE VERIZON DIVIDEND WAIT
By Jonathan Browning, Scott Moritz and Amy Thomson
Vodafone Group investors waiting for Verizon Communications to approve a dividend from their U.S. mobile-phone venture will have to hold out longer, according to two people close to the matter. Verizon Wireless’s board doesn’t plan to discuss a potential dividend at a Sept. 19 meeting, said the people. A decision could still be made at a December gathering or at an unscheduled board meeting anytime, one of the people said.
…. AND FINALLY ….
FIRST EVER ADVERT FOR BANK OF ENGLAND BOSS
By Matt Falloon
The government will pick a replacement for Bank of England Governor Mervyn King by the end of the year. Formally advertised for the first time, the post calls for “a person of undisputed integrity and standing” – a sign that any commercial bankers tainted by this year’s market rate-setting scandal need not apply. Financial Services Authority Chairman Adair Turner, Britain’s former top civil servant Gus O’Donnell and BoE Deputy Governor Paul Tucker have been touted as potential replacements.