Businesses in the UK are reluctant to invest, not just because of the poor economic outlook, but on a structural basis. Economist and market watcher Andrew Smithers explains to Martin Sandbu, the FT's economics leader writer, why changes in the way business leaders are paid encourages short-termism.
Top Post-Market Nasdaq Movers (Merge, AuthenTec, Infinera, MannKind, Web.com, Iridium, Hansen, Exelixis, Video Display, National Penn Bancshares)
The top after-market Nasdaq gainers Friday were Merge Healthcare Inc, AuthenTec Inc, Infinera Corporation, MannKind Corporation and Web.com Group Inc.
Not only is Bank of America the largest contributor to earnings growth for the financial sector, it is also the largest contributor to earnings growth for the entire S&P 500. Excluding Bank of America, the earnings growth rate for the index would fall to negative 2.6 percent from 2.1 percent. Bank of America is predicted to report earnings per share of 15 cents, compared to a loss of 90 cents recorded in the year-ago period. We ran a screen and produced a list of 55 notable companies set to report their earnings July 16-20
JP Morgan unveiled the key reasons how and why the star of its Chief investment Office (CIO), Bruno Iksil, lost the bank $5.8bn in bad hedging bets, by revealing a systematic failure in its units risk management procedures, models and monitoring. The bank's CEO Jamie Dimon led the investor conference call for JP Morgan's second quarter earnings, in a previously unprecedented move, alongside CFO Doug Braunstein and Mike Cavanagh, head of the bank's Treasury & Securities Services group, who also the man charged with leading an internal investigation of what happened in the CIO unit. During the call the senior executives highlighted the main reasons of how the CIO unit was able to not only execute such risky and subsequently costly losses, but how risk management had failed to detect, manage and escalate the risks over the course of a few years.
Mervyn King said under Funding for Lending banks can borrow at 0.25 percent below the Bank of England base rate if they boost real economy lending (Reuters) Banks will be able to borrow cash from the Bank of England at cheaper interest than the base rate if they increase or maintain their lending to consumers and businesses, reveal details from the new Funding for Lending Scheme (FLS) published by the Treasury. Government and the Bank hope this credit easing scheme will boost the amount of affordable lending to the wider economy, such as loans for small businesses and mortgages for home buyers, in a bid to pull Britain out of its double-dip recession and towards recovery. "This joint action by the Bank and the Treasury creates strong incentives for banks to expand their lending to the real economy," Mervyn King, Bank of England governor, said in a statement
Moody's Investor Service's downgrade of Spain's sovereign debt sent the nation's borrowing costs sky high on Thursday. But as costly as this latest downgrade is, the next one could be even more devastating. And downgrade No.
Chancellor George Osborne will launch the government's white paper on banking reform to City of London bankers in his Mansion House speech (Reuters) At what was once a black tie evening of self-congratulatory back-slapping and hand-shaking between policymakers and the City of London , the upcoming Mansion House speeches by Chancellor George Osborne and Bank of England Governor Sir Mervyn King will herald a new age for the financial industry and its relationship with the government. Osborne's speech at the 250-year-old building will launch the government's white paper on banking reform , which has been inspired by recommendations made in the Vickers report, and includes ring-fencing the retail arm from the investment side of the business, to protect consumers from what is labelled "casino banking". But while the Chancellor can score a few points with voters in pledging to cut the City down to size, he can't afford to alienate one of the country's most important industries as Britain fights to extract itself from the first "double-dip" recession in three decades.
Finland-based cell phone manufacturer Nokia Thursday announced that it plans to cut 10,000 jobs globally as part of its revamping measures. The company announced that it would shut down production and research sites in Finland, Germany and Canada. In addition, it announced changes in its leadership team with executive vice-president and chief marketing officer Jerri DeVard, executive vice-president of mobile phones Mary McDowell and executive vice-president of markets Niklas Savander leaving the company.
Credit rating agency Moody's Investor Service downgraded Spain's government bond rating three notches down to Baa3 from A3 on Wednesday. Moody's attributed the downgrade to the further rise in the country's debt due to the recently approved EU aid for Spanish banks
Openet, one of Ireland's flourishing software developers, said it raised an additional $21 million from investors in Japan , Europe and the U.S., bringing the cumulative total raised in 13 years to $55 million. "We could have raised either a very small amount of money or a very large amount," said CEO Niall Norton, 45, in an interview. "This was about right." He said the European financial crisis didn't hamper the round.