Stocks fell across most markets as investors worried that global stimulus measures would fail to lead economies out of their current slump. On Wall Street the Standard & Poor's 500 Index fell 3.5 per cent after Obama's administration warned over the health of the banking and auto sectors. These cPublish Postoncerns dragged down markets in Asia too, with the MSCI Asia Pacific Index losing 1.1 per cent, badly affected by Japan’s Mizuho Financial Group again, which slid another 4.6 per cent. In London the FTSE 100 Index staged a recovery, moving two per cent higher in early trade, after a 3.5 per cent drop on Monday. Mervyn King and PM at odds over recession rescue The Financial Services Authority was "under pressure" on Monday night to explain its monitoring of failed building society Dunfermline, reported theFinancial Times. The government revealed a £1.6bn bail-out yesterday under which the UK's biggest building society took over £2.4bn of savings accounts as well as the group's staff and branches. The FSA was ordered to produce a report into the affair, by chancellor Alistair Darling, while Liberal Democrat spokesman Vince Cable called the collapse a "gross failure of regulation". The number of mortgages approved for house purchases "jumped" by 19 per cent in February, reported the Times. Figures from the Bank of England showed the sharp increase as well as a "record amount of debt" being repaid by borrowers. The number of home loans approved rose to the highest level since last May, even as customers repaid £245m of consumer credit, for the biggest net repayment of loans since records began in 1993. The housing numbers prompted some economists to suggest the worst "could be over" for the property market. Barclays yesterday” turned down the chance” to take part in the government’s asset protection plan, reported the Independent. The APS is a mechanism under which the government insures toxic banking assets and Lloyds and Royal Bank of Scotland have both taken part in the scheme. However Barclays is concerned that it would have to follow its rivals, which have “surrendered” large stakes as a result of the insurance, and has sought to avoid government support. Middle East funds and a positive “stress test” have allowed it flexibility so far. Ireland's position as the "Celtic Tiger" economy leading other nations into the 21st century has been "shattered" after its sovereign debt was downgraded, reported the Daily Telegraph. Standard & Poor’s has announced that it is removing the country’s AAA rating and replacing it with AA+, "sparking fresh fears" over the possibility that the government may default. The decision has "raised suspicions" that the UK may soon find itself in the same situation. The Irish finance ministry said it was committed to keeping debt under control. The "oustings" of Rick Wagoner and Christian Streiff as the chief executives of General Motors and Peugeot Citroen yesterday has "sent tremors" through the auto industry, reported the Guardian. Unlike the banking sector which has been bailed out with "trillions" of dollars, the car industry is being "left to bleed to death". The only solution is consolidation, with Martin Winterkorn, chief executive of Volkswagen, said he could envisage the survival of only one Japanese maker "a few" Chinese, two or three European and "an American", likely to be Ford. Marks & Spencer "beat forecasts" for fourth-quarter sales, which fell 4.2 per cent against a 7.1 per cent drop in the third quarter, said the Daily Telegraph. The retail chain prospered after cutting prices on food and clothing "to win back shoppers". Its shares were up 23.5p, or nearly 10 per cent, in early trade………… Greetings card retailer Clinton Cards is expected to reveal today that it has "renegotiated its loan facilities", along with better-than-expected results, reported the Independent. The move is likely to reassure investors over its financial wellbeing, although it is thought it has paid a "substantial fee"………… Ex-Bradford & Bingley chief executive Steven Crawshaw – who stepped down last year after the lender was nationalised – is receiving a pension of £105,318 a year, reported the Financial Times. Crawshaw was responsible for the strategy of expanding into "specialist" mortgages………… In the latest sign that "bling has fallen victim to the recession", celebrity jeweller Theo Fennell has parted company with its chief executive, said the Guardian. Pamela Harper is "stepping down" after the company warned it would make a loss for last year, with Christmas sales "disastrous"………… Australia's biggest investment bank, Macquarie Group, will "cut cash bonuses" for around 300 senior staff, reported Bloomberg.com. Chief executive Nicholas Moore will see the cash part of his profit-share fall to 45 per cent of the total as the company tries to "placate investors"………… German discount retailer Aldi is set to open “up to 50 stores a year” in the UK, reported the Times. The group is “accelerating” its roll-out in Britain as customers flock to lower-priced supermarkets. Its UK managing director said it will spend £150m opening stores each year…………....business headlines.....
Markets slide on stimulus concerns
The Mole: Gordon Brown saves the world but what about Britain? Questions asked on Dunfermline
Vandals heed Max Hastings and attack Fred Goodwin's home
RBS executives claim they were intimidated Mortgage approvals soar
Barclays resists govt intervention
Ireland debt downgraded
Merger only option for auto sector
GM, Ford and Chrysler: a nationalisation too far? ...in brief..................
Marks & Spencer beats estimates and Aldi ramps up store openings
Tuesday, 31 March 2009
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