News

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

Darling and Osborne clash on secret loans

November 25, 2009

A row broke out yesterday in the House of Commons after chancellor Alistair Darling and FSA boss Hector Sants defended the decision to keep secret the £61.6bn of emergency loans handed by the Bank of England to RBS and HBOS last year at the peak of the financial crisis. The loan facilities – £36.6bn for [...]
Bank charges ruling a blow for consumer

November 25, 2009

MILLIONS of customers hoping to reclaim more than £1bn in overdraft charges suffered a blow yesterday following a landmark ruling in favour of the banks. The Supreme Court sided with eight major lenders who had challenged decisions made by the lower courts that the unauthorised bank charges come under “unfair contract” rules. The ruling means [...]
Tougher mortgage rules on the cards

November 25, 2009

THE TREASURY has unveiled plans for tougher regulation of the mortgage market to better protect borrowers. Under the proposals, the scope of the Financial Services Authority (FSA) would be extended to include buy-to-let and second-charge mortgages. And borrowers would be protected when lenders sell on mortgage books to third parties. Sarah McCarthy-Fry, Exchequer Secretary said, [...]
WHAT DOES THE RULING MEAN FOR BANKS AND FOR CONSUMERS?

November 25, 2009

PETER VICARY-SMITH WHICH?“This is a bitter blow for the millions of people who have been patiently waiting to get their bank charges back. Not only does it give banks licence to charge what they like for unauthorised overdrafts, but it could have ramifications for other areas of personal finance.” MATHEW REA DAWSONS LLP“The decision is [...]
UK economy still shrinking

November 25, 2009

BRITAIN remained mired in recession in the third quarter of 2009, even if revisions to official data showed that the economy contracted at a slower pace than previously estimated. The upward revision did not come as a shock to the City, which had widely expected the initial -0.4 per cent reading to be upgraded to [...]
US consumer and jobs data fuel economic recovery hopes

November 25, 2009

US consumer spending and home sales rose more than expected in October, while new claims for jobless benefits fell sharply last week, suggesting the economic recovery was gaining traction. A surprise decline in orders for long-lasting US-made goods and a second straight monthly drop in consumer confidence, however, offered a reminder that the recovery from [...]
CITY VIEWS: WHEN DO YOU THINK THE ECONOMY WILL COME OUT OF RECESSION?

November 25, 2009

SIMON DUKE LLOYD’S OF LONDON“I expect that by the end of next year we will see signs that the recession has ended, particularly because we’ve already hit bottom. It will take time for new jobs to surface and previous jobs to return, but I think the recovery process is underway.” MARK STOOP BEAZLEY“I think the [...]
United Utilities feels the pressure in the recession

November 25, 2009

UNITED UTILITIES, the biggest water company in the UK, yesterday said its profit had risen by one per cent to £370m, but that it had been hit by tumbling demand from businesses and homes in the downturn. Turnover rose 0.5 per cent to £1.2bn in the six months to 30 September, and the group proposed [...]
Malaysian Airlines swings into red

November 25, 2009

Malaysian Airlines swung into the red in the third quarter, reporting a net loss of 299.6m ringgit (£53.1m), down from 38.1m ringgit profit in the same period last year. It said the outlook for the fourth quarter continues to be challenging although it was seeing early signs of improvement in passenger and cargo traffic, partly [...]
Ryanair expands its destinations

November 25, 2009

Ryanair said yesterday it will buy two new aircraft, open 13 new routes, bringing its total to 34, and deliver 2m passengers per annum at Trapani, Sicily. The move will sustain 2,000 local jobs, Ryanair said. Between two and three flights will go to Billund, Bratislava, Cagliari, Eindhoven, Genoa, Gothenburg, Ibiza and Karlsruhe, among others.