Finance Matters

• 11Sep

  Global recession timeline

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  From The BBC:

  How did the credit crunch at the end of 2007 become a full financial meltdown by the middle of 2008, and finally turn into a global recession? This interactive timeline highlights key dates in the financial collapse and helps you find the original reports of the events as they happened.
  HSBC reveals huge losses at its US mortgage arm Household Finance due to subprime losses, in one of the first signs that the US housing market is turning sour, and that it could have a knock-on effect on the global financial sector.
  New Century Financial, a leading subprime lender, files for bankruptcy. It is the first signal that something is seriously amiss at US mortgage lenders. Shares in other US mortgages banks like Countrywide come under pressure.
  Credit markets go into freefall after Paribas announces that two of its hedge funds are frozen due to “complete evaporation of liquidity” in asset backed security market. European Central Bank injects 170bn euros into the banking market and Fed lower…

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• 10Sep

  Orange broadband hit by outages

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  From The BBC:

  The broadband service run by mobile firm Orange has been hit by an outage.The firm said that it did not know how many people were affected by the problem, the cause of which is still yet to be determined. Orange broadband, previously known as Wanadoo, has nearly one million fixed broadband subscribers around the UK. The firm, which has more than 15 million mobile customers, recently announced that it would merge its UK mobile business with T-Mobile. “We are aware that some UK customers may be experiencing difficulty accessing our internet services at present,” said a spokesperson. “We are investigating the source of the problem as a matter of priority and would like to apologise to those affected for any inconvenience this issue may cause them.”…

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• 10Sep

  Opel and Vauxhall decision looms

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  From The BBC:

  It has been widely reported that General Motors (GM) has chosen the Canadian car parts manufacturer Magna to buy Opel and sister firm Vauxhall.GM is expected to make an announcement later in the day and is understood to have attached conditions to the sale. Earlier, there were rumours that GM could be planning to try to keep control of its European arm. Magna is the German government’s preferred bidder. Any decision will have to be approved by the Opel Trust. It has called its own news conference in Berlin at 1615 (1415 GMT). The German-led Opel Trust has controlled the European operations since GM sought bankruptcy protection in the US. It contains representatives from GM, the German federal government and the German states that contain Opel plants. The rival offer came from the Belgian investment group RHJ. Job newsOpel employs a total of 54,500 workers across Europe, with 25,000 based in Germany.
  Its Vauxhall brand employs 5,500 people in the UK, primarily at its two British plants…

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• 10Sep

  Sportwear chains face fraud probe

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  From The BBC:

  The Serious Fraud Office (SFO) is investigating JJB Sports and Sports Direct International after a referral from the fair trading watchdog.The move comes after JJB said it had blown the whistle on a suspected cartel in the sports retail market. Officials from the OFT visited the Wigan offices of JJB Sports on Thursday. Sports Direct International is controlled by Newcastle United owner Mike Ashley. An SFO spokeswoman said: “The SFO can confirm it is investigating the activities of JJB Sports and Sports Direct International. The investigation is into suspected offences under the Fraud Act and the Enterprise Act.” InvestigationThe SFO said it was investigating on that day that JJB said it had been to the OFT with regards to a suspected cartel. JJB approached the OFT at the end of January, asking for leniency in return for full co-operation with the OFT in any investigation into a suspected cartel, and has worked with the watchdog since. The case involves “suspected agreement or concerted…

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• 10Sep

  Asda creates 10,000 seasonal jobs

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  From The BBC:

  Supermarket chain Asda says it will create an extra 10,000 seasonal jobs for Christmas and the New Year.The additional positions will double Asda’s “seasonal squad”, who work public holidays, to 20,000. The roles are in addition to 7,000 permanent positions the company says it will create by the end of 2009. The supermarket says it has attracted one million new customers in the past 12 months, partly because of the economic downturn. “Biggest Christmas ever”The supermarket is taking on more staff to deal with a larger than average festive rush, according to Andy Clarke, Asda’s chief operating officer. “We’re expecting this to be our biggest Christmas ever, as we are offering more low prices than any other supermarket,” he said. About 70% of the Asda “seasonal squad” is made up of 18 to 24-year-olds. Tesco says it will be creating 6,000 temporary positions, in addition to offering permanent staff extra shifts. Two weeks ago Sainsbury’s said it was recruiting 20,000 seasonal staff, some…

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• 10Sep

  UK interest rates remain on hold

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  From The BBC:

  The Bank of England has held interest rates at the record low of 0.5% for the sixth consecutive month.It has also said it would continue to pump up to £175bn into the economy – so-called quantitative easing – but that it would not extend the programme. Recent data has suggested that the UK has begun to climb out of recession But the Bank has warned recovery would be “slow and protracted” and that it would take months for the full impact of its policies to be felt. ‘Rhetoric and reality’Most commentators said the decision to leave rates, and the approach to quantitative easing, unchanged was sensible. “If you look at survey data, you see the signs of green shoots, but if you look at hard numbers on the real economy, green shoots are much more difficult to see,” said Graeme Leach, Chief Economist at the Institute of Directors business group. “There is a clear divergence at present between the rhetoric and reality of recovery. This situation will change, recovery will come, but just…

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• 10Sep

  House prices ‘increase by 0.8%’

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  From The BBC:

  House prices rose by 0.8% in August compared with July – the second monthly rise in a row, says the Halifax.Property values were 10.1% lower in the three months to August compared with the same period a year ago, the survey found. The average UK home was now valued at £160,973, said the Halifax, now part of the Lloyds Banking Group. A lack of supply and greater demand for homes has pushed up prices in recent times, various surveys suggest. “Demand for housing has increased since the start of the year due to better affordability and low interest rates,” said Halifax housing economist Martin Ellis. SurveyThe survey showed that the monthly change in prices had been upwards in four of the first eight months of 2009.
  Prices in the three months to August compared with the previous three months were 1.7% higher, the biggest rise in this measure since July 2007. The latest rise pushed the price of the average UK home to a few pounds higher than it was at the end of 2008, but still &poun…

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• 10Sep

  Morrisons sees surge in profits

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  From The BBC:

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  Morrisons CEO on sales growth
  The UK’s fourth-largest supermarket, Morrisons saw half-year pre-tax profits rise 45%, saying new customers had been drawn in by its prices in the downturn.The firm made £449m in the six months to 2 August, attracting a million new customers in the past two years. Chief executive Marc Bolland said he was confident shoppers would stay with the firm as the economy picked up. Customers were still looking for value, he told the BBC, but added sales of “treats” such as cakes were rising. ‘Value conscious’The most recent data from TNS Worldpanel survey of the grocery sector found Morrisons’ market share had risen to 11.6% in the 12 weeks to 12 July, up from 11.2% a year ago. The figures indicated that Morrisons had seen the fastest year-on-year growth in the sector. But it warned there would be slower market sales growth to come as food price inflation eases back. Its profits – which were up 2…

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• 10Sep

  Redrow suffers worst loss to date

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  From The BBC:

  Redrow, one of the UK’s largest housebuilders, has suffered its worst set of annual results – reporting a pre-tax loss of £140.8m.Its sales fell by 54% to £301.8m as it sold fewer homes – and those which were bought fetched lower prices. Housebuilders have suffered a torrid year as prices slumped by around a quarter from peak levels. But in a sign that the property market is stabilising, it said it did not foresee further write-downs. And the loss – which was £44.2m before write-downs and other one-off items – was not as bad as some analysts had been expecting. “We are now in a position to move forward and assuming we experience stability in the market, we do not foresee further net write-downs being required,” said chairman and founder Steve Morgan. “It is intensely disappointing to me to have to report the worst set of trading results in the company’s history. “I am determined to ensure that this will not be repeated and, along with the rest of the management team,…

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• 10Sep

  Shutters down on more newsagents

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  From The BBC:

  Independent newsagents across the UK are closing down at a rate of more than one a day, a BBC Asian Network investigation has revealed.A group that helps retailers says this is because they are struggling to compete with big supermarket chains, increased crime and the credit crunch. The National Federation of Retail Newsagents (NFRN) wants the government to rescue its declining industry. Official figures show that 510 newsagents went bankrupt last year. In 2007 more than 480 went bankrupt. The NFRN blames the problem on the current economic downturn, and competition between newsagents and with supermarkets, which it says have “massive buying and marketing power”. Government helpCrime is also a big issue. “A lot of newsagents open their shops worrying what’s going to happen that day. We need the government to realise what we are facing, day in, day out,” said Suleman Khonat, the federation’s president. The NFRN wants laws introduced that differentiate between a normal crime and retail…

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