Darling blames the financial sector for the UK’s delayed return to growth.

Chancellor of the Exchequer Alistair Darling has said in a recent interview that the U.K.’s economic recovery is being retarded by the country’s large financial services sector. “I am not surprised that it has taken time for the economy to return to growth,” Darling was quoted as saying. “What is holding us back is the fact that we have a large financial-services sector, which has affected what we produce.”

British Sky Broadcasting Group Plc,(BSB) the U.K.’s biggest pay-television provider, has announced a 3.4 percent increase in first-half operating profit as increased pay-TV and broadband subscribers boosted sales. Earnings for BSB in the six months to Dec. 31 2009 were £401 million ($651 million) up from £388 million in 2008. Turnover rose 10 percent to £2.87 billion for 2009.

Soft drinks and squashes producer Britvic have reported strong first-quarter sales growth, whilst striking a more cautious note about second-quarter trading, partly because of the extremely cold weather conditions experienced across Europe in December and January. Britvic, whose brands include Tango and Robinsons, reported sales of £242.7 million for the 12 weeks to December 20, an increase of 11 per cent on the same period in 2008.

Richard Branson’s financial-services un Virgin Money Holdings U.K. Ltd., it, named former Lloyds TSB Chief Executive Officer Brian Pitman as chairman as it seeks to build a new retail banking group. Financial analysts have credited Pitman with transforming Lloyds TSB into Britain’s most profitable lender before his departure in 2001.

No sooner had the press conference to announce the launch of the new Apple iPad than mobile phone operators in the UK were preparing to open talks with the company regarding the provision of third generation (3G) internet services to the new device when it hits the UK shores. Industry sources said that O2, 3, Vodafone, Orange and T-Mobile are preparing to meet Apple "in the next week" Apple is expected to ship the Wi-Fi only versions of the iPod to the UK in March, while the 3G versions will go on sale in the US "and selected countries" in April. Apple chief executive Steve Jobs announced during the launch on Wednesday that the priority was to secure agreements with international operators for 3G, with deals expected by the end of July.

On the money markets, the euro dropped to a five-month low against the pound on Thursday as concerns mounted over the finances of Greece and other Eurozone countries. The pound closed at 1.6129 against the dollar, with the Euro being traded at 1.1541

UK banks fell sharply at the end of trading, retreating from earlier gains. Lloyds Banking Group fell 0.2 per cent at 51.83 pence, HSBC dropped 0.5 at 660 pence, Royal Bank of Scotland lost 1.3 per cent to 33.29 pence and Standard Chartered was down 2.6 per cent at 1432 pence.

The FTSE 100 fell 71.7 points, or 1.4 per cent, to 5,145.74, with Wall Street’s weak start also being a factor.

The year 2009 gas witnessed the biggest decline in air passenger traffic in the post-war era, according to figures released by the International Air Transport Association (IATA).

"In terms of demand, 2009 goes into the history books as the worst year the industry has ever seen," according to a spokesman for the organisation. Passenger traffic dropped by 3.5% from a year earlier, while freight traffic fell 10.1% as the downturn hit demand. However, figures for December showed a rise in traffic of 1.6% on a year ago.

Chairman of the US Congress financial services committee, Barney Frank, has argued that the dramatic proposals unveiled by the administration last week to clamp down on banks could be incorporated into legislation could be enacted into law within months.

On Frank’s prediction, the Dow Jones fell by 135 points, to close on Thursday at 10120.46, while the NASDAQ lost 31 points, to finish on 2179.0.

The US Commerce Department have confirmed that December sales of new homes have fallen, and for the second month in a row.

Sales fell by 7.6% to 342,000 homes, down from a revised rate of 370,000 in November. Analysts had expected new home sales to increase in December.

The number of new homes sold in 2009 was 374,000, 23% fewer than in 2008 and the lowest number sold in a year on record.

The Federal Reserve left interest rates unchanged at their range of between zero and 0.25%, as the US central bank repeated its vow to keep rates exceptionally low for an extended period. Interest rates have remained at their current low range since December 2008.

Ford has posted an annual profit for the first time in four years.

The carmaker made a $2.7 billion (£1.7 billion) profit in 2009, a dramatic improvement on their loss of almost $15 billion in 2008. A spokesman said that Ford expects to remain in profit for 2010.

The company made an $868 million profit for the third quarter of 2009, a dramatic improvement on the $6 billion loss it made for the same period the previous year. Ford attributed their return to profitability to cutting costs and reducing debt levels.

Thanks largely to "exceptional demand" for Windows 7, computer software giant Microsoft has reported a 60% jump in profit for the three months to 31 December 2009. Net profit for the quarter was $6.66 billion (£4.13 billion), up from the $4.18 billion for the same period a year earlier. Microsoft also reported turnover for the quarter of $19.2 billion, comfortably beating analysts’ forecasts.

French President Nicolas Sarkozy has called for a fundamental rethink of capitalism in the aftermath of the financial crisis.

His comments came as bankers and regulators clashed over proposals to break up banks that threaten the whole financial system.

Mr Sarkozy said he wished to restore a "moral dimension" to free trade.

France has supported forcing banks to hold more capital and curbing bonus payments in global negotiations over the past year on how to reform the system to prevent future crises.

Samsung Electronics have overtaken Hewlett-Packard (HP) to become the world’s largest technology company in terms of company turnover. Samsung have reported full-year sales of $117.8 billion which overtook HP’s sales of $114.6 billion in 2009. With a sales forecast at $127 billion, Samsung are expected to surpass its US rival again this year, with HP expected to achieve "only" $120 billion in sales.

In energy markets, crude oil prices consolidated ahead of the latest US weekly inventories data, with prices averaging around $74 a barrel. US crude stocks were expected to have risen 1.4 million barrels last week, according to a recent poll of analysts, with demand from US refineries remaining weak.

financial

• Consumer spending on pets is at record levels According to Pet Age magazine, total pet spending was 41.2...
• Player Profile for Patty Sheehan Patty Sheehan was born on October 27 in 1956 in...
• Religare Enterprises in Financial Services This story is draft. Religare has ramped up its AUM...

Tags: 3, Alastair Darling, Apple iPad, Bank, Banking, Barney Frank, Brian Pitman, British Economy, British Sky Broadcasting Group Plc, Britvic, Economics, Economy, Federal Reserve, Financial News, Ford, Hewlett-Packard, HSBC, Interest Rates, International Air Transport Association, iPod, Lloyds TSB, Microsoft, Money, NASDAQ, Nicolas Sarkozy, O2, Orange, Recession, Richard Branson, Royal Bank of Scotland, Samsung Electronics, T-Mobile, UK Banks, UK Economy, UK Recession, US Commerce Department, US Congress, Virgin Money Holdings U.K. Ltd, Vodafone, Windows 7

Figures released yesterday confirmed that the UK economy grew by 0.1% in the last quarter of 2009, meaning that the recession is finally over, but later and which much less impact than the US or the Eurozone economies. Britain’s economy had been in recession for eighteen months, the longest period since quarterly figures were first recorded in 1955.

The news was widely anticipated with signs such as last week’s UK unemployment figures that fell for the first time in 18 months.

Analysts now predict that no matter which party wins this year’s election when it happens, the loser will be the pound/ Reasons given are that neither David Cameron or Gordon Brown will be able to muster sufficient support in parliament to control the UK’s budget deficit, which is the largest in the in the Group of 20.

Strategists have pruned back their forecasts on the sterling versus dollar pair by as much as 2 percent this month, to the lowest level since June 2009, with Sterling liable to be weighed down by possibility of the first parliamentary stalemate in more than a generation and growth levels that lag far behind Britain’s rival industrialized economies. Add that to a fiscal shortfall that has ballooned to almost 13 percent of gross domestic product and the picture for the pound looks less than rosy.

Previous precedents do not bode well for the pound, as when the last time a U.K. election failed to produce a clear winner in 1974, Sterling fell in value by 28 percent in the next two years, with the government’s failure to fund its deficit leading to the International Monetary Fund stepping in to bail-out the economy.

The UK’s so-called ‘Big Six’ group of energy suppliers is on course for a profits windfall due to the extremely cold weather conditions experienced in the UK during December and early January. Consumers were forced to turn up their thermostats when the country experienced the coldest weather conditions for decades with the daily demand for gas hitting an all-time high on Jan. 7th of 454 million cubic meters. Analysts predict that accumulative profits for the big six (Centrica, EDF, E.ON, Scottish and Southern Energy, ScottishPower and RWE npower) could easily reach an additional £100 million for the period.

The Chelsea and Yorkshire building societies are expected to finalise details of a merger this week. Doing so will mean the creation of the second biggest society in Britain, after the Nationwide. Yorkshire Building Society members are liable to give their thumbs up for the merger, following the lead of the Chelsea Building Society who gave their support to the deal on Friday. A successful deal would mean the consolidated company would have combined assets of £35 billion pounds, around three million members and 180 branch offices around the UK.

On the news that Barclays plans to defer bonuses for top executives including Chief Executive Officer John Varley for up to three years, stock in the company 4.1 percent, to 271.35 pence.

Pilots at British Airways pilots have been warned by the labor unions representing the cabin crews not to become strike breakers if an employment dispute leads to a work stoppage. News that caused BA’s stock to decline 0.8 percent, to 207.9 pence.

Prudential Plc, the U.K.’s largest insurer have announced plans to cut back expansion in developed markets to focus on growth in developing Asian countries, such as Malaysia, Vietnam and Indonesia. Shares in Prudential shares dropped 0.4 percent to 605.5 pence.

Sterling rose slightly against the dollar and the Europe in early week trading. The pound closed at 1.6144 against the dollar, with the Euro being traded at 1.146

Shares in the FTSE 100 took a minor downturn, despite the news that the recession was over in the UK. It closed on Tuesday down 26 points to 5,276.85.

A calmer mood prevailed in markets on Monday and Tuesday after a three day downturn that knocked 5 per cent of its values. Reports coming out of Washington over the weekend suggesting that Ben Bernanke looks like being reappointed chairman of the Federal Reserve for another four-year term settled the markets which had closed at fresh a 15-month high as recently as last Tuesday.

The Dow Jones rose by 84 points, to close at 10255.28, while the NASDAQ recovered 14 points, to finish at 2210.53.

According to the National Association of Realtors (NAR) sales of previously-owned US homes fell 16.7% in December, after having risen in the three months from September to November as first-time buyers took advantage of tax credits. However the decline in December came as no surprise as most buyers had rushed to complete deals before the original 30 November deadline. The first-time buyer tax credit has since been extended until 30 April, causing the NAR to predict that there was likely to be another surge in sales in the spring. December sales fell to a seasonally-adjusted annual rate of 5.45 million from 6.54 million in November, 15% higher than in the comparable period in December 2008.

Computer giant Apple have announced a 50% increase in profits after seeing a bumper Christmas period, with sales of iPhones doubled from a year ago.

Net income rose to $3.38 billion (£2.08 billion) in the three months to 26 December, from the $2.26 billion in the same period in 2008. A spokesman for Apple announced that they had succeeded in selling 8.7 million iPhones in the quarter. Sales of Macs also rose 33%, although iPod sales fell by 8%.

General Motors (GM) has confirmed that Saab is to be eventually acquired by Dutch luxury carmaker Spyker.

GM has been trying to sell Sweden’s Saab since January 2009 although recently they announced that they would begin the procedure of winding down the company while still continuing their search to find a buyer.

Wind-down activities have now been suspended, "pending the close of the transaction".

Saab lost £255 million in 2008, and has not made a profit since 2001.

In the commodities market, gold took advantage of the relative stability in the dollar, to rise to $1,097 an ounce. Oil also rose by 0.5 percent to $74.92 a barrel.

financial

• Prosper Delinquent Debt Sale In Progress Yesterday Prosper began a delinquent debt sale.  This happens when...
• Rose de Mai and Rose Thé by Le Jardin Retrouvé Les Trois Roses - The Three Roses Rose Opéra -...
• Macau Retail Sales Continues to Rise by 16% The value of retail sales for the fourth quarter of...

Tags: Apple, Banking, Barclays, British airways, British Economy, British Pound, Centrica, Chelsea Building Society, Credit Crunch, David Cameron, Dow Jones, E.ON, Economics, Economy, EdF, Federal Reserve, Financial News, FTSE, General Motors, Gordon Brown, International Monetary Fund, iPhone, John Varley, Money, NASDAQ, National Association of Realtors, Nationwide, Prudential Plc, Recession, RWE npower, Saab, Scottish and Southern Energy, ScottishPower, Spyker, UK Banks, UK Economy, UK government, UK Recession, Yorkshire Building Society

In the Queen’s speech to be made today, Gordon Brown is expected to emphasize the need for fiscal discipline as the UK seeks to extricate itself from the current financial downturn, and catch up with the rest of the major global economies who have already done so. At the heart of his message will be a very strong hint to ministers to accept budget cuts. What he will be implying is that it is important for the Labour party to show unity and credibility on public spending ahead of the forthcoming election battle with the Tories. The prime minister’s package will feature a fiscal responsibility bill, that will confine to law Brown’s programme significantly reduce Britain’s £175 billion deficit by 2014 and cast it into history by 2018.

Meanwhile the people who are generally regarded as being responsible for the UKs financial quandary, the bankers, are beginning to bleat a little at the prospect of having their bonuses cut by the Financial Services Authority (FSA) This time the banker’s plight is being supported by no less than a former banker, Sir George Mathewson who acted as chairman of Royal Bank of Scotland. Sir George complained that any moves to cancel any pay deals which appear to reward undue risk-taking would interfere with the rule of law.

But Sir George said he feared

According to the Office of National Statistics, UK inflation has jumped to an annual figure of 1.5%, largely driven up by a sharp annual rise in the cost of petrol and a huge jump in the prices of second-hand cars. Economists were not taken by surprise by the increase in the consumer prices index (CPI, which they expected to rise by between 1.4% and 1.5% for October. The incredible 14% rise in second-hand car prices was one of the driving forces behind the inflation rise.

ITV have confirmed that Archie Norman, the former chief executive of supermarket group Asda, will be taking over the role of chairman in their company. Former Tory MP Norman’s appointment brings to an end a seven-month search to find a replacement for outgoing chairman Michael Grade,

Archie Norman comes to the ITV with an impressive track record, having being credited with the turnaround of Asda in the 1990s. He will face no less of a daunting challenge at ITV, where increased competition and difficult trading conditions has caused a major downturn in advertising revenue.

Chocolate makers Hershey and Ferrero are said to considering a joint bid for Cadbury that could be welcomed by the UK confectionery manufacturer as they fight to fend off the hostile takeover by Kraft Foods. Discussions between the two sides have been reported to be at the “very preliminary" stage. Apparently Hershey executives have been more aggressive about pursuing a deal; however no offer has been made. The talks are the strongest sign that a possible rival bid to Kraft’s $16.7 billion offer is in the offing. Kraft’s initial bid was rejected by Cadbury as being “derisory”.

Sterling increased against the major currencies on trading since the weekend

• Pound/US dollar 1.6793
• Pound/Euro 1.1283
• Pound/Japanese Yen 149.9328
• Pound/Swiss Franc 1.706

World stocks continue to gain ground as optimism regarding the global economic recovery continuing. UK shares have again reached and broken their 14-month high.

In the UK, the FTSE share values improved as commodities and especially gold touched a new record on the general positive mood.

The UK’s benchmark FTSE 100 index closed up 1.6%, or 86.29, to 5,345.93. The FTSE 250 also rose, up 28 points to 9,401.15.

US Commerce Department figures have shown that retail sales rose by more than expected in October, largely due to the resurgent car market, Sales rose by 1.4%, offsetting September’s 1.5% fall was revised with both months’ figures were dominated by the impact of car sales.

If car sales are taken out of the equation, retail sales rose by just 0.2% in October.

Federal Reserve chairman Ben Bernanke has revealed that the US central bank was monitoring currency markets "closely" and will conduct policy in a way that will "help ensure that the dollar is strong". In one of his rare public comments on the state of the dollar, Bernanke predicted that currency’s recovery would begin to gain momentum despite "headwinds" from credit and unemployment, while inflation was likely to remain "subdued". However the dollar, after a brief upturn, continued to retreat against other major currencies. Bernanke also added that the Fed still expected to keep rates near zero for an "extended period", hastening to add that his statement was, not a commitment.

In the US, all the trading indexes were seen to be advancing at lightning pace.

The Dow Jones industrial average gained 1.3%

Or 52.30 points to 10437.42. The NASDAQ continues to move forward, up 43 points 2203.78

US car giant GM recovery continues. This week the company announced that they will begin returning their US government loans earlier than expected.

The first payment of $1.2 billion will be made in December, and the company predicts that the loans could fully repaid 2011, four years earlier than expected. The news comes as GM reported a third quarter net loss of $1.2 billion. GM currently has debts of $6.7 billion to the US government, $1.4 billion to the Canadian government and 400 million Euros to the German government, which the company received in support of GM’s European subsidiary Opel.

US billionaire Warren Buffett’s investment firm have increased their stakes in the Nestle and Exxon Mobil companies. .

The news has created a strong buzz among investors as stock picks by Buffett always create interest, as the 70 year old super entrepreneur is considered to be one of the world’s shrewdest investors.

Recent figures released by the Japanese government have shown that the country’s economy has grown for a second successive quarter.

The world’s second largest economy grew by 1.2% in the third quarter, much faster than economists had predicted. Analysts have hastened to predict that say overall growth is likely to remain sluggish for the foreseeable future.

financial

• OIL: Exploration and Distribution India's energy situation in short is that it needs four...
• Toyota suspends U.S. sales of 8 models in recall [/caption] TOKYO/DETROIT (Reuters) – Toyota Motor Corp will suspend U.S....
• Cash for Clunkers Program The House recently passed a Cash for Clunkers bill which...

Tags: Archie Norman, ASDA, bankers, Banking, Ben Bernanke, British Economy, British Pound, budget cuts, Cadbury, Currency, Dow Jones, economic recovery, Economy, Employment, Exxon Mobil, Federal Reserve, Ferrero, financial downturn, Financial News, Financial Services Authority, FSA, FTSE, GM, Gordon Brown, Hershey, Interest Rates, ITV, Kraft Foods, Labour party, Michael Grade, Money, Money Markets, NASDAQ, Office of National Statistics, Opel, Recession, Retail, Royal Bank of Scotland, Sir George Mathewson, Stock Markets, Stocks and shares, The Queen’s speech, UK Banks, UK Economy, UK government, UK inflation, UK Recession, US Commerce Department, Wall Street, Warren Buffett

A recent report from the Bank of England has revealed that the total amount of personal debt in the UK is lower than it has been for more than 16 years, and probably even more, as that was when records first began.

Factors such as rising unemployment and the economic downturn have caused UK consumers to become increasingly reluctant to increase their levels of personal debt, indicated by borrowing falling by £600 million in July, taking the total personal debt in the UK to a little below £1.5 trillion. Which is still a considerable sum of money.

At the same time, current low interest rates means that the amount of equity outstanding on mortgages is decreasing by £400 million a month at current levels, meaning that many home-owners are managing to repay more of their outstanding mortgage, reducing their deficit.

The manufacturing sector, also doing their best to draw in their horns, complain of increasing price rises from their banks, despite the abundance of Government packages to increase liquidity in the banking system and interest rates being at an all time low. According to the Engineering Employers Federation (EEF), credit terms remain "very tight" for manufacturers. A fact that they claim could hold back an early recovery from the recession, and certainly not in line with the US, Japan and even France and Germany.

Britain retail sectors, living in hope of a good Christmas season, are going to need it, if recent forecasts are correct. The forecast, from a leading firm of accountants and business advisers, forecast that the worst effects of the recession for the retail sector will not be felt until next year. Fears that rising unemployment will hit the high street hard and as many as 5,000 companies will be forced to close their doors throughout the UK.

Some good news for the UK economy is the announcement that British Petroleum (BP) has discovered a massive oil field while drilling of the Gulf of Mexico.

BP, currently the largest producer of oil and gas in that area, have till now produced more than 400,000 barrels of oil a day, with their latest discovery expected to increase that figure considerably. The company had to dig deep, not just in their pockets, but also through the Earth’s core to get to the fast reservoir of crude, reaching a depth of 35,055 feet making it one of the deepest wells drilled in the World.

On the news, BP shares jumped 3.8% to 538 pence, making it star of the show on the FTSE 100 yesterday.

It wasn’t really a major achievement as equities continued to be under pressure on the FTSE yesterday, however late trading did push it back to a reasonable condition. The k index ended just 2 points lower at 4,817.55, following losses of 89 points during the previous session.

Meanwhile the FTSE 250 continued to slide, yesterday dropping a further 99.75 points to close on 8,519.93

Sterling made a minor recovery against the major currencies on Wednesday’s trading.

• Pound/US dollar 1.6272
• Pound/Euro 1.1409
• Pound/Japanese Yen 149.9756
• Pound/Swiss Franc 1.7249

In the US, once again Federal Reserve policy-makers are showing increased confidence that the downturn in the US economy is due to officially come to an end. At a recent meeting, chaired by recently re-appointed Fed Chairman Ben Bernanke a more upbeat tone emanated, hinged with an uncertainty about how quickly the economy would grow in 2010. Fears remain that unemployment, which is set to move above 10% this year, may impact on consumer behaviour.

On Wall Street, US stocks were up and down on Wednesday affected by the release of data on job losses, with the release of the Challenger jobs report, which showed that the pace of US job losses has slowed, later offset by data released by the

This was quickly counterbalanced by payroll giant Automatic Data Processing (ADP) stating that employers in the private sector had cut by more than 50,000 the jobs expected in July than the expected 250,000.

On Wall Street, the markets returned to relative stability, with the Dow Jones Industrial Average dropping by 29.93 points to close on 9280.6 while the NASDAQ Composite index stabilised, falling a mere 1.82 points to close on 1967.07

European Union finance ministers have taken up the gauntlet and will press for clearly defined restrictions on bonus pay for bankers in the future. The issue will be at the focus of talks to be held with their US and other G20 counterparts later this month.

Anders Borg, finance minister of Sweden, which holds the EU’s rotating presidency, speaking on Wednesday after a meeting of the EU’s 27 finance ministers designed to set out common positions on bankers’ pay as well as the other hot potato of financial market regulation. Other issues on the table will be how to draw back from the fiscal, monetary and other emergency measures adopted this year to prevent a deep global recession, with financial stability returning.

Gold prices surged to a near three-month high on Wednesday as investors turned to the precious metal after a weak opening in equity markets in New York.

• Seven pairs of easily confused money terms Every area of specialization has its own vocabulary and its...
• 5 Ways to Improve Your Credit Score. I recently checked my credit rating with AnnualCreditReport.com, and found...
• Don't Allow Loss of Loved One To Lead You To Poor Financial Decisions The following post is from Neal of WealthPilgrim.com. After reading...

Tags: Automatic Data Processing, Bank of England, Banking, Ben Bernanke, BP, British Economy, British Petroleum, British Pound, Credit Crunch, Currency, Debt, Dow Jones, Economy, Employment, Engineering Employers Federation, Federal Reserve, Financial News, FTSE, Interest Rates, Money, Money Markets, Mortgage, Mortgages, NASDAQ, personal debt, Recession, Stock Markets, Stocks and shares, UK consumers, UK Economy, UK government, UK Recession, Unemployment, US economy, Wall Street

Last week’s announcement of Lloyds Banking Group’s intentions mount a rights issue planned to raise up to £20 billion in a rights issue has caused no uncertain amount to Chancellor Alasdair Darling and his team as well as those private sector investors who have seen fit to buy some of the bank’s shares. .

In an understandable nut possibly ill timed attempt to reduce the reliance on the UK government, Lloyds’ management began to test the water on the concept that the terms of its participation in the government’s asset protection scheme (APS) might be open to re-negotiation after their second-quarter results were much more positive than analysts anticipated.

However it does appear that the bank will not be met with too many friendly faces when they set about convincing Darling to take a second look at the basic terms of the scheme after several months of highly complex negotiations have been put to bed. ..

Chancellor Darling’s long held standpoint on the APS as the international model for cleaning up toxic assets is believed to be untouchable. In addition, government officials are reported to be of the opinion that raising Lloyd’s ability to raise sufficient capital is questionable, and any attempts to sidestep the scheme would be not only be unwise, infeasible or sufficient to satisfy regulators.

The financial implications of Lloyds opting out of the APS could be fundamental, with the bank having to rise between £30 billion and £40 billion in capital to satisfy the regulator’s stress test. In addition, the UK government could be entitled to demand compensation for carrying £575 billion of the banks liabilities since March of this year.

The Financial Services Authority reported yesterday that the number of new financial companies seeking UK regulatory authorisation have risen by ten per cent during the second quarter, making for the first increase since early 2008.

Independent financial advisers, including those who offer life assurance and other retail ¬products were reported to comprise the single largest group.

Next in line were financial advisory services, private equity shops and corporate finance boutiques. Cottage financial service industries that have been established by ex-city financiers who fled the mainstream banks during the recent turmoil in the financial sector.

The number of firms cancelling their authorisation with the FSA also slowed by 18 per cent in the three months to June, according to another recent study.

On the FTSE yesterday, shares in the BT Group were very much in demand after positive analyst reports.

The reports stated that BT’s broadband business looked set to benefit from Tiscali’s exit from the UK and Vodafone’s failure to capture a share of the market. Shares in BT rose 2 per cent to 134 pence.

Banks led the fallers amid the growing debate about whether Lloyds Banking Group should pursue their controversial rights issue scheme.

Lloyds fell 4 per cent to 98 pence, while shares in Royal Bank of Scotland dropped 3.6 per cent to 45 pence and Barclays also lost 1.8 per cent to close on 358½ pence,

Enterprise Inns slid 1.9 per cent to 172 pence after two of the company’s senior directors took advantage of their share’s rebound.

Ted Tuppen, group chief executive, raised more than £500,000 after selling 300,000 shares at 167 pence each, while CEO Simon Townsend cashed in 67,500 shares for 173 pence. Enterprise share values have jumped by more than three times since December, when both directors increased their shareholdings.

Shares in IT services group Logica were up 1.3 per cent to 113 pence after claims that the company was a potential bid target for BAE Systems.

BAE, 1.5 per cent higher at 325½ pence have been known to be actively on the lookout for acquisitions in an attempt to expand their security operations currently focused on the defence sector, making Logica’s public service operations a credible target..

There was unexplainably strong volume in instrument maker Spectris, whose shares closed 2 per cent higher at 576 pence.

The FTSE 100 drifted from its high of the year, losing 9.36 points, or 0.2 per cent, to 4,722.2.

Meanwhile the FTSE 250 closed just half a point down on 8,421.46

The pound stepped backwards against the other major currencies.

• Pound/US dollar 1.6483
• Pound/Euro 1.1654
• Pound/Japanese Yen 159.6125
• Pound/Swiss Franc 1.7853

The news that the US banks stand to collect a record $38.5 billion in overdraft fees this year has left a bitter taste in the mouths of many. Even more so when considering that the bulk of the revenue will come out of the pockets of already financially stretched consumers, struggling to keep their heads above water during the current financial downturn.

Overdraft fees have almost doubled during the last decade, and seem inappropriate when considering the political pressure applied to banks to ease the burden on after being bailed out by taxpayers.

The Federal Reserve is working on rules on overdraft fees, and rules on customer charges could be a priority of the Obama administration’s proposed Consumer Protection Agency if approved by Congress.

US stocks drifted from last week’s highs on Monday, with investors looking to bank profits even as several experts gave a relatively bullish analysis for equities.

However sellers far outnumbered buyers on Monday’s trading

On trading Monday, the Dow Jones index eroded a little down 32.12 points, to close on 9,337.95. The NASDAQ also dropped below the 2,000 mark again, down 8.01 points to close at 1992.24.

Latest reports prior to President Obama’s visit are that Mexico has moved into its deepest recession of modern times.

Figures to be announced on gross domestic product in the second quarter is expected to report a 10.4 per cent fall, following a first-quarter drop of 8.2 per cent, according to the finance ministry.

The International Monetary Fund predicts that, for the full year, the economy will fall by 7.3 per cent, the worst performance in Latin America.

• Macau News April 2007 Wynn's Le Reve settlement Steve Wynn has settled an out...
• Gators' Winning Streak Ends with a 32-13 Alabama Victory With Alabama and Florida both 12-0 for the season, both...
• India's wealth drop 32% (PTI - NDTV.Com) The wealth of world's rich people dropped...

Tags: Alasdair Darling, BAE Systems, Bank, Banking, British Economy, British Pound, BT Group, Credit Crunch, Currency, Dow Jones, Economics, Economy, Federal Reserve, Financial News, Financial Services Authority, FTSE, International Monetary Fund, Lloyds, Lloyds Banking Group, Logica, Money, Money Markets, NASDAQ, Obama administration, Recession, Royal Bank of Scotland, Simon Townsend, Stocks and shares, Ted Tuppen, Tiscali, UK Banks, UK government, UK Recession, US Banks, Vodafone, Whitehall

“I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world. No longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men. “

-Woodrow Wilson

Wilson, after the fact, realised what the Federal Reserve Act did in 1913…it gave away the power of the US people to the bankers. The revolutionary war in America was for nothing for it simply stalled the inevitable rise of the European central banks in their grip over the once mighty industrial United States.

“Gentlemen, I have had men watching you for a long time, and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank.

You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin!

You are a den of vipers and thieves. I intend to rout you out, and by the eternal God, I will rout you out.” Andrew Jackson.

 Since then, the bankers, as Jefferson predicted, has inflated the currency and robbed the citizens of that once proud nation through inflation. Now, the massive deflationary bust is upon us as the elastic band of credit, once stretched so tightly, springs back with a vengeance to destroy remaining wealth of the US and the West.

We were seduced…it is our fault. If history is a guide, we will throw them out…but they will be back before long with schemes more fiendish that before to dominate and control us…the next time, if they get their way, it will be forever.

• History of Top 10 Banks of the United States [/caption] The year 2009 was not a very promising one...
• Credit Card Reform President Obama signed the Credit Card Reform act (officially called...
• Free Financial Management Software When it comes to your getting out of debt, having...

Tags: Credit, Federal Reserve, Federal Reserve Act, Great Depression, Inflation, UK Banks, Woodrow Wilson