News

Your daily news update straight from the City PM newsroom in London

Ex-MPC man joins Citi

November 30, 2009

A CONTROVERSIAL former member of the Bank of England’s monetary policy committee is to become the chief economist of US banking giant Citigroup. Willem Buiter, who is a professor at the London School of Economics, will take up his post in January, replacing Lewis Alexander, who left in March to advise the US Treasury. Buiter, [...]
US Black Friday sales disappoint

November 30, 2009

American retail stocks fell yesterday on the back of weak high street figures for the long-anticipated Black?Friday weekend. Although shopper numbers increased 13 per cent year-on-year to 195m, the average spend declined 7.9 per cent to $343.31 (209), according to the National?Retail Federation. The S&P Retail?Index fell 0.4 per cent to 402.6. “We believe Black?Friday [...]
British sailors held by Iran

November 30, 2009

Five British yachters have been taken captive after straying into Iranian waters on their way to an international race. The Britons, part of a nine-strong crew, were picked up by the Iranian navy on Wednesday when the propeller on their vessel, the Kingdom of Bahrain, became damaged. Foreign secretary David Miliband said diplomats had been [...]
EU markets man tries to soothe City

November 30, 2009

THE incoming EU internal market commissioner, Michel Barnier, held out an olive branch to the City ahead of tomorrow’s negotiations on a new pan-European regulatory framework. As concerns grew in London over the prospect of unnecessary red tape, the Frenchman said: “I know the importance of the City. I know the importance of this major [...]
AIGshares slide 15pc on fears over loss reserves

November 30, 2009

SHARES in insurance monolith American International?Group (AIG) tumbled nearly 15 per cent yesterday after an analyst raised concerns over its loss reserves. Todd Bault at Sanford Bernstein cut his price target for the stock by 40 per cent over worries that an estimated $11bn (£6.7bn) shortfall in the insurer’s loss reserves could have “major ramifications” [...]
Hedge funds on track for best gains in 10 years

November 30, 2009

HEDGE funds are on track to post their best returns for a decade in 2009, despite the global downturn. According to figures from data provider Hedge Fund Research (HFR), the hedge fund industry is up 18.77 per cent so far this year. An additional return of only 0.79 per cent between now and the end [...]
Gartmore IPO to net 400m

November 30, 2009

FUND manager Gartmore is set to raise about £400m in a flotation later this month tipped to turn most of its 40 fund managers into overnight millionaires. Gartmore and San Francisco-based private equity firm Hellman & Friedman are understood to be planning to sell shares at 250-330p each, valuing the firm at £800m at the [...]
LSE boss Rolet insists clearing charges push up trading fees

November 30, 2009

THE London Stock Exchange (LSE) yesterday stood by its claim that charges levied by clearing houses are mainly to blame for its high trading fees. Under pressure from rival platforms that are undercutting its business, LSE chief executive Xavier Rolet said last week that clearing charges made up two thirds of its fees for trading [...]
China digs in on currency as it assures on climate change action

November 30, 2009

CHINA yesterday pushed back against calls to let its currency rise, with Premier Wen Jiabao warning that lifting the yuan could hobble growth, while assuring Europe that his nation is serious about global warming. Speaking after summit talks with the European Union, Wen said the demands being made of Beijing to push up the yuan’s [...]
UNDER THE HAMMER

November 30, 2009

A FRENCH court fined eBay €1.7m (£1.5m) for violating a 2008 injunction preventing French users of the online auction site from buying or selling certain LVMH cosmetics on any eBay website. The website said the fine was too high and that the injunction – blocking French eBay users from buying or selling designated LVMH cosmetics [...]