News

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

Transport is investors’ X-factor

November 2, 2009

Transport infrastructure is the “X-factor” in investor’s decisions on how to spend, the Invest Thames Gateway transport report will say today. The data shows that 81 per cent of senior business people rate transport as more critical to their decision to invest now than five years ago. While 46 per cent said features like teleconferencing [...]
RBS FEARS THAT BREAKUP PLANS WILL GO TOO FAR

November 1, 2009

ROYAL Bank of Scotland is deeply anxious that a proposed restructuring plan being drawn up by the European Commission and the Treasury could materially damage its ability to operate as a standalone entity. Sources close to the bank have warned that getting RBS back to standalone strength, a key factor in reimbursing the taxpayer for [...]
BA crew talk about strikes

November 1, 2009

THOUSANDS of British Airways’ (BA) cabin crew are meeting at racecourse Sandown park this morning to discuss a winter walkout at the airline. The meeting comes ahead of BA’s financial results for the summer season, which analysts are expecting to be catastrophic, as the downturn pummels airlines. The ailing carrier, led by chief executive Willie [...]
UK plc doing better than in past slumps

November 1, 2009

THERE are many reasons why the stock market has bounced back, despite the severity of the recession. The fact that corporate earnings didn’t collapse as much as originally feared is one such explanation, as highlighted this weekend by Lombard Street Research. The operating profits of UK companies have fallen 8.4 per cent from their peak, [...]
Darling defends spending

November 1, 2009

ALISTAIR Darling yesterday defended the use of a fiscal stimulus to ride out the economic downturn. He reiterated that the government had no intention of cutting off the economy any time soon, despite a ballooning budget deficit. “We and all the other countries are doing the same thing, we’re putting money into our economy to [...]
WHAT THE OTHER PAPER SAY THIS MORNING

November 1, 2009

THE SUNDAYSThe Sunday TelegraphODEY CASHES IN ON BARCLAYS SHARES OVER EU “UNCERTAINTY”Crispin Odey, the hedge fund manager who has made millions of pounds calling the fate of British banks, has sold part of his stake in Barclays. The boss of London-based Odey Asset Management, who built a 1.5 per cent stake in Barclays shortly after [...]
UK house price fall slowing

November 1, 2009

UK house prices fell at their slowest annual rate since June 2008 in October, dropping 4.2 per cent, due to an ongoing lack of housing for sale after the credit crunch, property data company Hometrack will say today. Hometrack’s survey of estate agents and surveyors showed that house prices rose 0.2 per cent in England [...]
Oil firm Denbury buys Encore

November 1, 2009

Oil exploration and production company Denbury Resources said yesterday that it will acquire Encore Acquisition in a transaction valued at about $4.5bn (£2.7bn), to create one of the largest carbon-dioxide enhanced oil recovery platforms across the Gulf Coast and Rocky Mountain regions. Encore stockholders will receive $50 per share for each share of Encore common [...]
CIT agrees pre-pack bankruptcy

November 1, 2009

US-based commercial lender CIT Group filed for bankruptcy last night, as the global credit crisis left it unable to fund itself and the recession left it with too many bad loans. CIT’s creditors have already approved the century-old lender’s pre-packaged plan, which will result in them owning the company. Most bondholders will also end up [...]
Santander able to bid for RBS assets

November 1, 2009

Spanish bank Santander has been cleared to bid for Royal Bank of Scotland’s business-focused branches when the bank’s assets are divested under plans being drawn up. Competition rules agreed between London and Brussels will ensure that no purchase of the assets will push the buyer’s market share in the specific market past 15 per cent. [...]