Subscribe Feed (RSS)Treasury preparing to re-privatise RBS And Lloyds.
March 30th, 2010 by tom | 0 Comments | Filed in Central banks, Daily News, Debt, Exchage Rate, Global Credit Crisis, Money Management, Mortgages, Recession, Retail, Stocks and shares, UK Banks, UK Small Business, UK employment, World Banks
There is a lot of speculation about that the Treasury has set the wheels in motion to reduce their stake in the Royal Bank of Scotland and Lloyds Banking Group, both of which are partially state-owned. The staged de-privitisation will be effected through the creation of "convertible gilts", or government bonds. These bonds could then be exchanged for Lloyds or RBS shares once certain price targets are achieved. This way the government might be able to slowly reduce the taxpayers’ stake in the banks, hopefully over the next five years.
On another vein, the Treasury has warned banks that investors could be given the powers to veto top salaries, even before they are paid. Current rules that allow shareholders to vote on remuneration reports detailing pay only for the previous year, meaning that anyone that votes against bonuses in particular or large and unjustified ones in particular are for the protocol only. The revised proposals were made in Budget documents issued by the Treasury, with a more detailed and final proposal unlikely to come before the election.
Telecoms Company Vodafone are reported to be in discussions with their US counterpart Verizon Communications over the future of Verizon Wireless, which is a US mobile phone joint venture between the two companies. Apparently the discussions are based around a full merger of the two groups, which could take the form of an all-stock combination with a value of more than £120 billion.
US consumer electronics retailer Best Buy have outline details of their expansion plans for the UK. Best Buy intends to open four stores across the UK in the spring. A fifth will open in south London in the autumn.
Ofcom has ruled that UK mobile phone companies will have to cut their charges by at least a billion pounds a year. The ruling comes after a review of the cost of connecting mobile phone calls from one network to another, with the move is expected to aid smaller operators as well as consumers, to cut losses through having to pay extra to connect customers to rival networks.
Toyota announced before the weekend that they are temporarily halting production at its factories in France and the UK. The stoppage, expected to last for a total of nine days, come as a result of falling sales that the company have partly attributed to its recent recall woes.
Toyota will put production on hold at its two factories in Britain for five working days sometime in May. In early June, Toyota also plans to halt one of its two assembly lines at its Burnaston plant for a further five working days. The stoppages come after Toyota recalled 8.5 million vehicles globally over braking problems in its Prius hybrid, sticky gas pedals and pedals that can get stuck under floor mats. Toyota’s sales in the 27-nation European Union sank 20 percent in February from a year earlier, even though overall EU car sales rose 3 percent.
News has been released that the Teeside Cast Products steelmaking site has been approached by a potential buyer, with the purchase offer being the first confirmed approach since Corus CSL announced last year it was to end production. The offer has come from Rutland Partners, a London-based mid-market firm specialises in turning round underperforming companies.
Operator of the National Lottery, Camelot have announced that they are to be sold to the Ontario Teachers’ Pension Plan (OTPP) for close to £400 million pounds. A representative of OTPP has stated that managed to defeat private equity group CVC’s bid, largely because as a pension fund they promises long-term stability for the lottery. The bid from OTPP is being underwritten by the Royal Bank of Canada.
The Times and Sunday Times newspapers will start charging to access their websites in June, owner News International (NI) has announced.
Users will be required to pay £1 for a single day’s access and £2 for a week’s subscription. The move looks likely to open a new front in the printed media/internet front and will be watched closely by the industry.
At long last the sale of the Independent and Independent on Sunday newspapers to Alexander Lebedev, owner of the London Evening Standard has been completed.
The Russian billionaire purchased the loss-making paper from Irish company Independent News & Media (INM) for £1, the cost of one daily edition of the newspaper.
The deal between the two parties has been under discussion for many months.
American businessman Stan Kroenke increased his stake in the Arsenal football club. His latest shares acquisition places him within 10 shares of the threshold that forces him to make a takeover bid of the English soccer power.
Kroenke now owns 29.9 percent after acquiring seven more shares ay at a cost of $12,650 each, the Premier League club announced before the weekend. If the Denver based Kroenke passes the 30 percent mark, he will be obliged to make an offer for the remaining shares in Arsenal Holdings.
Kroenke, who first bought a 9.99 percent stake in Arsenal in 2007
The Euro has strengthened against the dollar and the pound after eurozone leaders agreed a financial aid package to help debt-laden Greece.
The leaders agreed to provide €22 billion (£20 billion) should Greece run into difficulties borrowing money to service its high debt levels.
On Friday the euro rose by more than one cent to $1.3393 before falling back slightly. The pound also declined against the euro, paring a weekly advance, as a report showed U.K. business investment had the biggest annual drop on record in the fourth quarter, fueling concern the recovery has yet to take hold.
The pound headed for a second weekly loss versus the dollar.
The pound continues to be a problematic issue in the Forex markets. It closed on Friday y on $1.4877 while the Euro fell to €1.1113.
The FTSE 100 index dropped before close on Friday, finishing down 24.63 points to 5,703.02.
The White House announced on Friday that they will require lenders to lower the mortgage payments of some unemployed workers and encourage lenders to eliminate some principal debt of homeowners who owe more than their home is worth.
President Barack Obama’s plan comes after increasing political pressure to change his strategy for helping struggling homeowners and stem the tide of rising foreclosures. This is the second major housing initiative announced in as many months.
Delinquencies on U.S. mortgages rose to nearly 14 percent in late 2009, led by a sharp increase in seriously overdue home loans held by the most credit-worthy borrowers.
Obama’s $75 billion homeowner assistance program announced last year has been widely criticized as ineffective by both Democrats and Republicans on Capitol Hill.
The Dow Jones rose a little to complete a week of impressive gains closing on 10850.36. The NASDAQ dropped 2 points to 2395.41.
US economic growth has been revised down to an annualised rate of 5.6% for the fourth quarter of 2009 from 5.9%, in the US Commerce Department’s third estimate of fourth-quarter GDP.
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Tags: Alexander Lebedev, Bank, Banking, Best Buy, British Economy, Camelot, Corus, Dow Jones, Economics, Economy, Financial News, FTSE, Independent News & Media, Lloyds, Lloyds Banking Group, London Evening Standard, Money, NASDAQ, National Lottery, News International, Ofcom, RBS, Royal Bank of Canada, Royal Bank of Scotland, Rutland Partners, Stan Kroenke, Stocks and shares, Sunday Times, the Times, Toyota, Treasury, UK Banks, UK Economy, UK government, UK Recession, Verizon Communications, Verizon Wireless, Vodafone
