Finance Matters

• 30Aug

  Personal account: debt danger is felt by all

  Finance No Comments

  From The Telegraph:

  Dangers of debt are beginning to be felt among all age groups – not just the young, writes Ian Cowie.
  Although there is no cause for panic, as personal debt is well covered by the United Kingdom’s housing stock, the figures clearly illustrate the continuing problem of growing personal debt.
  To return to where I began, most of us are wearily familiar with predictions that thousands of young and middle-aged people are set for financial pain in the months ahead. But the daunting news this week is that the outlook could be even worse for older borrowers.
  Is this proof that we British are barking mad?
  Ewan McNeil, a former president of the society of practising veterinary surgeons, muses: “We are a nation of animal lovers, and many of us regard our pet as part of the family.”…

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• 30Aug

  Female fund managers: we donâ??t need super-women, just super returns

  Finance No Comments

  From The Telegraph:

  Katherine Garrett-Cox – dubbed “Katherine the Great” – made headlines again this week after being appointed chief executive of the £2.6bn investment trust company, Alliance Trust.
  Despite this, her name is often linked with other high-flying women such as Nicola Horlick, who have created waves, – and £1m plus pay-packets – in the male-dominated investment world.
  There has, however, been a reasonable amount of research on the differences between men and women when it comes to investment. Apparently, male investors tend to take a more aggressive approach to share dealing, trading more regularly and following stock market fads and trends.
  Although no one is yet prepared to say so on the record, the mutterings from many of the main banks is that the worst may be over – at least when it comes to mortgage pricing. The cost of fixed and tracker-rate mortgages has been heading south in recent weeks. Since the start of July, our biggest lenders have…

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• 30Aug

  Bankruptcy fears for families as average debt hits £60,000

  Finance No Comments

  From The Telegraph:

  Britons are facing a growing threat of bankruptcy, as latest figures show the average household is almost £60,000 in debt. 25 million households in UK are carrying an average debt of £58,461Experts warned that despite the credit crisis and stricter conditions on lending, cash-strapped Britons are suffering from years of indulging on relatively cheap borrowing.Figures show the total outstanding UK consumer debt – including credit cards, loans and mortgages – has increased by 7.3 per cent to £1,444 billion over the past year, up from £1,346 billion in June 2007.There are almost 25 million households in the UK, therefore carrying an average debt of £58,461.Families face further rises in gas billsMortgage conditions ‘set to worsen’Families at risk from profiteeringadvertisementStephen Gifford, Grant Thornton’s chief economist, said: “The figures clearly illustrate the continuing problems of growing personal debt levels in the UK. If the property market an…

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• 30Aug

  Fraud: donâ??t get caught out by the conmen

  Finance No Comments

  From The Telegraph:

  Fraudsters use various ways to get your money. Jonathan Phelan reveals how to keep your cash safe.
  Take care of your money. Our research indicates that the average victim of a typical investment scam, called a boiler room, loses £20,000. We hear of people who have spent hundreds of thousands of pounds from their pensions and savings – or even borrowed cash – to spend on transactions that turned out to be a con.
  Jonathan Phelan is head of retail enforcement at the Financial Services Authority….

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• 30Aug

  Is Russia now too risky to invest in?

  Finance No Comments

  From The Telegraph:

  Kara Gammell asks the experts if politics could harm the country’s long-term economic prospects.
  James Davies, investment research manager at Chartwell, says: “One of the factors that separates emerging markets from developed ones is that in emerging markets the actions of government generally have a far more pronounced effect on market movement. “The events of the past couple of weeks have demonstrated that Russia is still an emerging market. Russia is a land of enormous opportunity, but also risk, and the world looks a very different place from Moscow – something that is not always appreciated in western Europe.”
  A lot of the growth can be attributed to rises in commodity prices, says Reynolds.
  Justine Fearns of AWD Chase de Vere says this has worried some investors but she warns it is important to remember that Russian oil and gas companies are generally more efficient than some of their international counterparts which creates a slight cushion against falling prices.
  M…

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• 30Aug

  Families face further rises in gas bills

  Finance No Comments

  From The Telegraph:

  More than 14 million households are facing a rise of up to £260 in their energy bills after two leading suppliers increased their prices.The increases mean millions of cash-strapped families will pay almost £1,300 a year for gas and electricity.E.ON is raising electricity prices by 16 per cent and gas prices by 26 per cent while Scottish and Southern Energy is increasing electricity by 19.2 per cent and gas by 29.2 per cent.advertisementIt comes as the Government’s new fuel poverty chief said many people face the choice of “heating or eating this winter”.Energy bills up againFamilies at risk from profiteeringDerek Lickorish told Channel Four News: “What we’re looking at the moment is the largest number of households in fuel poverty that we’ve had for the last 10 years or so. And we expect something like five million households to be in fuel poverty this winter.He added: “It’s about 20 percent of all households in the UK and we haven’t seen that as I say for more than 10 yea…

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• 30Aug

  Borrowers must apply ‘four times’ to get mortgage, survey says

  Finance No Comments

  From The Telegraph:

  Nearly half a million mortgage or loan customers are having to apply more than four times in order to successfully secure credit, a survey shows today. July’s mortgage lending is lowest since 2002While just over 400,000 could not get a mortgage or loan despite repeated attempts, according to GE Money Home Lending.The findings follow hard on warnings from the Bank of England and the Council of Mortgage Lenders that homeowners may find it even more difficult to get a mortgage in the coming months.The survey said that with lenders tightening their lending criteria in the face of the credit crunch, previously credit worthy people being classed as a higher credit risk.As a result, many consumers were finding it more difficult to secure the credit they needed.advertisementThe news is a further blow for borrowers struggling to find the extra cash to meet the rising cost of living.Louise Cuming, the head of mortgages at Moneysupermarket.com said: “We are no way near the end of this – unem…

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• 29Aug

  Bradford & Bingley announces loss

  Business No Comments

  From The BBC:

  Bradford & Bingley (B&B), a buy-to-let loans specialist, has reported a loss for the six months to 30 June, with impairment charges up sharply.
  B&B reported a loss of £26.7m for the period, against a £180.4m profit last year, and said it remained “cautious”.
  Credit impairment charges for the six months rose to £74.6m, up from £5.3m in the same period last year.
  B&B recently completed a £400m share rights issue in order to improve its balance sheet.
  B&B’s shares closed down more than 2% at 49 pence.
  Access to credit
  “As a focused business within a sector that is currently going through a cyclical downturn, Bradford & Bingley has experienced a particularly challenging first half,” said the lender.
  “We have witnessed unprecedented financial dislocation, with wholesale medium-term funding markets being difficult to access since last summer”.
  B&B’s rights issue had to be restructured twice after initially failing to attract sufficient interest.
  Private equity firm Texas Pacifi…

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• 29Aug

  Alitalia seeks bankruptcy measure

  Business No Comments

  From The BBC:

  Troubled Italian airline Alitalia has applied for bankruptcy protection as it tries to agree a deal to ensure its long-term survival.
  The carrier has sought court protection from its creditors, effectively declaring itself insolvent.
  An administrator will be appointed to handle the process, with flights continuing while the firm plans a radical overhaul of its operations.
  Losing 2m euros (£1.6m) a day, Alitalia has survived on a 300m-euro state loan.
  Plans are being drawn up to split the carrier into two and to sell a stake in a new entity to a foreign airline.
  Split in two
  Guaranteeing the airline’s future will depend on securing fresh investment and persuading its unions to accept large job cuts.
  Both Air France KLM and Lufthansa have expressed interest in investing in any new entity which emerges from the current business.

  Earlier on Friday, Corrado Passera, head of the airline’s financial advisers Intesa Sanpaolo, confirmed that Alitalia’s board was drawing up a request…

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• 29Aug

  Airline collapse hits thousands

  Business No Comments

  From The BBC:

  Please turn on JavaScript. Media requires JavaScript to play.
  Passengers stranded at Glasgow Airport tell their stories
  Hundreds of people have been left stranded and up to 45,000 have lost bookings after the collapse of the low-cost transatlantic airline Zoom.
  The carrier suspended all its flights, blaming the economic downturn and steep rises in fuel bills.
  Zoom, founded in 2001, flew mainly to Canada from Glasgow, Gatwick, Belfast, Cardiff and Manchester airports.
  Zoom said BA and Virgin Atlantic were offering “special” fares for passengers whose flights had been cancelled.
  Thousands of people due to fly with Zoom in the coming weeks have been told to rebook with other carriers.
  However some passengers have said they would have to abandon plans because they could not find affordable alternative flights.
  Isobel and Michael Shannon, from Dumfriesshire, said they would have to cancel their two-week holiday to Nova Scotia.
  They had already paid for accommodation and car hire a…

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