AIG advisory coup for UBS and Goldman
Investment banks win senior bookrunner roles in $20bn Hong Kong listing of AIG’s Asian life insurance operations
(more…)
Equities 2010: Which stocks will rock?
The outlook for equity markets in 2010 is as muddled as ever after a year that only can be described as enigmatic. Equities had one of the best runs ever off of the March 2009 low, but it sure didn’t feel bullish or that we were in the midst of a recovery. Once there were [...]
Equities 2010: Which stocks will rock? originally appeared in the Daily Reckoning. The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today’s markets. Its been called “the most entertaining read of the day.”
FTSE hits 6-week closing high
LONDON (Reuters) – The top share index hit a six-week closing high on Tuesday and rose for a third straight session, led by banks with HSBC firmer after the previous session’s post results sell-off.
 |
 |
Gold hits highs in pound, euro terms
LONDON (Reuters) – Gold hit record highs in euro and sterling terms on Tuesday as the precious metal benefited from volatility in the currency markets, with spot gold prices extending earlier gains.
|
|
Pru to pay max $735 mln in rights fees-sources
LONDON (Reuters) – Prudential will pay as much as $735 million (483 million pounds) for its $21 billion rights issue, the biggest ever in a private sector to back an acquisition, sources said.
|
|
Small businesses fail to grow because of complex tax rules
FSB and ICM survey shows that three quarters of businesses would grow their business if the tax regime was easier to understand
Research carried out by the FSB and ICM of over 1,600 small businesses showed that 75 per cent of small businesses believe that they would be able to grow their business if the UK tax system was simplified.
Over a third (34%) of businesses surveyed said they found income tax the most difficult issue to deal with, while 52 per cent citied taxable allowances – the amount a person is taxed on – hardest to get to grips with. Over half (52%) said VAT is the easiest type of taxation to understand.
Many businesses do not feel confident dealing with tax issues, with 66 per cent employing professional help. Half of businesses spend less than two hours per week on fulfilling their tax responsibilities, but for one in 10 it takes up more than six hours of their time.
John Wright, National Chairman of the Federation of Small Businesses said: "The Government must recognise how important small businesses are to strengthening economic recovery. As our survey findings show, three in four would grow their business if the tax system was more simple to understand. The potential investment and jobs which could be created through such a move would provide the economy with the boost it needs to sustain recovery.
"As we head towards a General Election the message from small businesses is clear: the incoming Government must think small first and get conditions right for entrepreneurs and small businesses to thrive."
Customer services recovering while business services remain under pressure
Firms operating in the UK’s service sector saw volumes of business stabilise in the last three months, according to the latest CBI Service Sector Survey.
However, the situation differed between the Consumer Services sub-sector, where there was a slight improvement in business, and the Business and Professional Services sub-sector where conditions were more difficult.
The quarterly research, conducted between 27 January and 10 February, covered 180 service sector firms. They are divided into Business and Professional Services, such as accountancy, legal and marketing firms, and Consumer Services, including hotels, bars and restaurants, travel and leisure.
In Consumer Services, the value and volume of business both rose slightly. Over the last three months, the balance for value of business was +10 per cent, the highest since November 2007, and for volume of business was +7 per cent, the highest since August 2007. Overall profitability was little changed, with a balance of -2 per cent as costs rose, though this figure was the most encouraging since November 2007, when it was +27 per cent.
There were rises in selling prices in Consumer Services, but these were probably caused in large part by the increase in VAT at the start of the year. 38 per cent of companies said prices rose, and 8 per cent said they fell, giving a balance of +30 per cent, the highest since May 2008. Prices are expected to rise further over the next three months by a balance of +37 per cent of companies.
In Business and Professional Services, the value and volume of business were little changed on the previous three months, which was better than companies expected. 24 per cent of companies said the value of business rose, while 26 per cent said it fell, giving a balance of -2 per cent. For volume of business, 29 per cent it rose, and 30 per cent said it fell giving a balance of -1 per cent.
However, prices, and therefore profitability, fell in the sub-sector. The balance for average selling prices was -21 per cent over the past three months, and for overall profitability was -13 per cent.
Companies appear to be cutting back on staffing numbers. In Consumer Services, employment fell compared with the previous three months, with a balance of -28 per cent. In Business and Professional Services the figure was -25 per cent.
Ian McCafferty, CBI Chief Economic Adviser, said:
"The survey shows that business activity has stabilised across the service sector, however the fortunes of the Consumer Services and the Business and Professional Services differ, with firms selling to households doing slightly better over the past three months. Prices in the Business and Professional Services sub-sector have continued to fall, reducing profits, and making conditions tougher.
"Overall, these figures are consistent with our view that the economy is recovering slowly, but that we will have to wait a while before growth picks up."
On balance, companies in both sub-sectors are more optimistic about the business situation than they were three months ago. However, more firms in Consumer Services plan to expand their business than in Business and Professional Services, where expansion plans are subdued.
Service sector firms are still concerned about the strength of demand over the year ahead as a constraint on business expansion, and their ability to raise funds also remains a key barrier to growth.
UK banks call for care, clarity & costs to be understood
The importance of the UK as an international financial centre was brought home to EU officials when a high level group of British bankers met the new EU Internal Market Commissioner Michel Barnier today. The dinner was hosted by Angela Knight of the British Bankers’ Association.
The meeting covered the:
- cumulative impact of regulatory change;
- need for international co-ordination and co-operation which reflects that banking is an international industry operating across national boundaries; and
- importance of the EU and the need not to operate a ‘go-it-alone’ policy.
Angela Knight said:
"I am very pleased to be meeting Commissioner Barnier for the first time and for the opportunity to discuss some of the key issues facing the banking industry in the UK. Our members are concerned that the total cost of measures currently being devised to prevent future banking problems remain un-costed and there is a prevailing assumption – quite wrongly in my view – that proposed new rules will only hit the banks. The real issue is that changes may have the effect of making it more difficult for banks to lend to businesses and individuals. This, in turn, will not help the economy recovery.
"Banks support the need for change but we are concerned that, in all the emotion around the international financial crisis, we are in danger of over-engineering stability – and making too many changes at a rush – at the expense of recovery and future growth in the wider economy."
100,000 workers have schemes that hit the pension quality mark
Just six months after its launch, over 100,000 people are now saving in pension schemes that have the Pension Quality Mark. They now have a simple way to see that the pension scheme they are offered at work is a good one.
Electrical specialist Comet is the latest scheme to receive the award, bringing to 37 the number of schemes that have hit the Pension Quality Mark. Comet’s scheme has 3,000 members all of whom qualify for a company contribution of at least 7.5%. Comet joins a host of household names who have received the PQM to date, with more waiting in the wings.
NAPF Chief Executive Joanne Segars said:
"The Pension Quality Mark continues to go from strength to strength. It is really exciting to see so many schemes qualified and so many people saving in schemes covered by the Mark so soon after its launch.
"The schemes that have received the award can use it to demonstrate the value of their value to staff. Employers can use it to attract and retain good people and it can help improve employee contributions in pensions. There really are benefits for everyone.
"I encourage employers with DC schemes to go online and apply for the Pension Quality Mark today."
Julie Hendey, Head of Human Resources at Comet said:
"We want to help our employees to prepare for the future so they can maximise their retirement opportunities. Having the PQM demonstrates that we provide a good quality scheme and encourage our employees to think about saving for their retirement."
Nearly 7 million people in the UK fail to join a pension scheme at work – despite missing out on valuable employer contributions. This is often through a lack of understanding about pensions. The Pension Quality Mark is an important way to encourage people to start saving for retirement, and it gives people a clear signal that they can have confidence in their scheme.
Jerry Wattenberg from JTW International February 2010
Jerry Wattenberg from JTW International on CNN Business International
Duration : 0:3:33