News

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

3i Group asset sales fail to show signs of improvement

September 24, 2009

LISTED private equity giant 3i Group yesterday said the recent rallies in stock markets have not fed through to gains on its assets, in a downbeat trading statement. “Despite the recent strong performance of equity markets, the economic outlook is still fragile and private equity and mergers and acquisition markets remain subdued,” said chief executive [...]
Hearing into ratings firms is pushed back

September 24, 2009

A ROW between rival politicians has led to the postponement of a critical hearing into the behaviour of US ratings agencies in the run-up to the recent banking crisis. “Some information has come to light which not all members of the committee have seen,” a spokesman for the top Republican on the committee told City [...]
MASS EXODUS AHEAD

September 24, 2009

WORKERS are planning a mass exodus from their current employment once the UK comes out of the recession, according to data released yesterday by recruiter Robert Half. Nearly 40 per cent intend to move once the economy stabilises, while nearly half want to move within six months of the recession being over.
CITY VIEWS: HAS GORDON BROWN’S GOVERNMENT BEEN GOOD FOR THE CITY?

September 24, 2009

DAVID BLANC VESTRA WEALTH“I don’t think so, because of three key issues: the 50 per cent income tax band, the rules on non-doms, and the government’s position on attacking the bonus culture. Boris Johnson has been far more understanding towards the City.” LAURA GRAY AVIVA INVESTORS“It hasn’t been good for the City, but no party [...]
M&C Saatchi profits suffer in the slump

September 24, 2009

ADVERTISING group M&C Saatchi yesterday reported a 32 per cent drop in first-half profit, driven by the “unprecedented pressure” felt by its clients in the downturn. M&C – which was founded by Maurice and Charles Saatchi – said that client uncertainty over budgets had impacted both its revenue and profitability. However, it added that trading [...]
Sterling slips as King remarks on benefits of a weak pound…

September 24, 2009

STERLING slumped against most foreign currencies yesterday, as forex traders took in Bank of England governor Mervyn King’s indication that he was comfortable with a weaker pound by selling it. Currency markets reacted to comments from King suggesting that a weaker sterling could help the UK recalibrate its economy, driving the pound to a five-month [...]
… while Bank economist admits the dangers of QE

September 24, 2009

QUANTITATIVE EASING could result in unwanted asset bubbles that could prove “costly to rectify”, the Bank of England’s chief economist and monetary policy committee member Spencer Dale said yesterday. Speaking in Exeter, Dale said he was concerned by the uncertainty surrounding the effects of quantitative easing. “We do not have much experience of conducting monetary [...]
DOES M&C SAATCHI’S OUTLOOK OFFER ANY HOPE?

September 24, 2009

FIONA ORFORD-WILLIAMS EDISON INVESTMENT RESEARCHMarketing spend is still heavily constrained, with continuing pressure on fees, but it does look like a base level is being reached and comparatives are becoming easier. The group is sensibly using its strong balance sheet to invest in new offices ahead of any market improvement. CLAIRE ENDERS ENDERS ANALYSISThe results [...]
JJB Sports plunges to a huge 43m loss

September 24, 2009

EMBATTLED sportswear retailer JJB Sports yesterday reported widening losses for the six months to July, dragging the group £42.9m into the red. JJB Sports said that the losses had grown from £14.8m the year before, as revenue dived by 42.5 per cent to £178.6m. The group also said like-for-like sales were down by 27.4 per [...]
Artio raises $650m as Julius Baer unit floats in New York

September 24, 2009

ARTIO Global Investors, the US asset management arm of Swiss private bank Julius Baer, listed on the New York Stock Exchange yesterday, gaining nearly seven per cent on its offering price. The asset manager’s stock opened at $27.30 per share, up from the initial public offering (IPO) price of $26 and rose to $27.74 during [...]