News

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

Galleon fraud probe ensnares 14 more

November 5, 2009

FOURTEEN people were charged with fraud and conspiracy in a dramatic widening of the Galleon insider trading scandal in the US that has ensnared hedge fund managers, top Silicon Valley executives and a number of senior advisers. In complaints that read like scripts for the TV series “The Sopranos,” investigators alleged suspects dropped off bags [...]
French government demands ban on guaranteed bonuses

November 5, 2009

FRENCH banks – including those based in England and English banks based in France – have been banned from offering guaranteed bonuses. The only exception in the rule, announced yesterday, is for signing bonuses for new employees, and they are limited to a one year maximum. The government decree, which takes effect immediately, says that [...]
Strike threat still on at BA as court date pushed to next year

November 5, 2009

BRITISH AIRWAYS’ (BA) staff will still be balloted on strike action over the Christmas period, despite the union’s legal challenge to new contracts being delayed. The Unite union had requested a High Court injunction to block new working patterns, which BA is enforcing as it seeks desperately to cut costs at the airline, but the [...]
Citigroup to sell Primerica shares

November 5, 2009

Wall Street bank Citigroup yesterday said that it plans to sell shares of its Primerica life insurance business to the public, as the bank looks to shed assets outside its main businesses. Citigroup tried earlier this year to sell Primerica, an insurer that specialises in door-to-door sales, but failed to attract any bids.
Mandelson hints at Blair for EU

November 5, 2009

Business minister Lord Mandelson is today expected to call for strong leadership of the European Union and outline his vision for revamping its economic policies. Although Mandelson will not name Tony Blair in the speech, his comments could be seen as an attempt to revive the former British prime minister's chances of becoming the EU’s [...]
STAR QUALITY

November 5, 2009

STARBUCKS raised its financial forecasts for 2010 in the latest sign a year-long turnaround effort is boosting margins and putting it back on track for growth. The coffee company, which has been slashing outlets, laying people off and reducing costs, raised its target for fiscal 2010 earnings — excluding items — to growth of 15 [...]
Flu jabs panic grips Wall Street

November 5, 2009

New York City health officials yesterday scrambled to explain themselves in the wake of media reports about bankers who got scarce H1N1 flu vaccines through their employers. Members of Congress fired off letters demanding immediate explanations and the US Centers for Disease Control and Prevention reminded state and city health officers of the need to [...]
C&W revives plans to split its operations

November 5, 2009

THE eagerly-awaited confirmation that Cable & Wireless (C&W) is reviving its de-merger plans was overshadowed yesterday by the telecoms operator cutting its full-year earnings guidance. Shares dropped by six per cent amid profit-taking, a lack of detail on the de-merger and disappointment over the performance of C&W’s International business (CWI) which provides fixed-line and mobile [...]
IS THE MARKET REACTION TO THE C&W UPDATE JUSTIFIED?

November 5, 2009

MORTEN SINGLETON COLLINS STEWART“The market has reacted to the downgrade for the full year, but we think this is a great opportunity to buy into Cable & Wireless. There will likely be some uplift after the news of the de-merger, albeit small as it was a well-flagged event, though there was scant detail on the [...]
The City lawyer who argues that banking has become even riskier

November 4, 2009

T o David Morley, the phrase “it is better to travel than to arrive” must sound pretty strange, an expression invented only for those unfortunate souls who have not learnt to move at speed. For Morley, who joined top law firm Allen & Overy in 1980 and has led it as senior partner since last [...]