Sunday, 17 October 2010

Finance Blog

LATEST POSTS

OCTOBER 15TH, 2010 12:13

Gazundering returns as house prices fall

Whether you believe the Halifax claim that house prices fell by a record amount last month or the Royal Institution of Chartered Surveyors’ report of more modest declines this week, there is one sure sign that homebuyers are regaining the upper hand in a weakening property market; gazundering is back. It’s an ugly word for an… Read more

OCTOBER 14TH, 2010 7:37

How pension stealth tax means HMRC could get more of your pay rise than you do

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Updated: Tax changes to pensions announced today mean HM Revenue & Customs (HMRC) will gain more from some pay rises than the employees who earn them. Complex new rules mean the tax charge on final salary pensions could even be bigger than the pay rise. Contrary to the widespread belief that only City fat cats on… Read more

OCTOBER 13TH, 2010 13:38

Ban on drilling lifted in Gulf of Mexico. It's just like the end of financial crisis…

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The lifting of the moratorium on deepwater drilling in the Gulf of Mexico follows a predictable pattern. Indeed, the chain of events following BP's disastrous oil leak is depressingly familiar: it's the financial crisis all over again. Phase one: cutting edge technology. There is a new technology (deepwater drilling, securitisation) which some worry may be a… Read more

OCTOBER 13TH, 2010 7:25

Record rise in motor insurance costs; EU may make matters worse

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Motorists’ insurance costs increased by an average of 40 per cent last year, or more than 10 times the Consumer Prices Index (CPI) measure of inflation and the biggest annual rise since the AA began collecting national figures in 1994. Other major motor insurers, including Aviva and RSA, say the sector is facing a ‘perfect storm’… Read more

OCTOBER 12TH, 2010 17:09

Stubbornly high inflation dashes hopes of more QE

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If you receive benefits, tax credits or a public sector pension, you'll be relieved to learn that CPI inflation remained at a stubbornly high 3.1 per cent in September. Relieved, because in the June Budget, the Chancellor, George Osborne, announced he was indexing the pension and other benefits to the Consumer Price Index, rather than… Read more

OCTOBER 12TH, 2010 16:16

US 'Robo foreclosures' threaten new financial meltdown

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Anyone who thought the American housing crisis was starting to abate should think again. In fact it threatens to enter a new, and possibly even more destructive phase. The cause is growing foreclosure abuse. This has already prompted Bank of America and JP Morgan to call a moratorium on foreclosures. The White House is under… Read more

OCTOBER 12TH, 2010 9:25

Compound interest and shocking degrees of graduate debt

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Compound interest is a cruel taskmaster, as many students and their families are about to discover. Even at today’s low rates of interest, debt that is allowed to accumulate on debt will often roll up faster than the debtor’s ability to repay it. For example, anyone who borrows £10,000 at a typical mortgage rate of 3.5… Read more

OCTOBER 11TH, 2010 12:00

Is there really still a gender pay gap?

The How fair is Britain? report from the Equality and Human Rights Commission has found that full-time female workers still earn 16.4 per cent less than men and that after 30 years of narrowing, that gap appears to have stalled. There is some additional detail on this gap: The gender pay gap is lowest for the under 30s,… Read more

OCTOBER 11TH, 2010 7:55

10 tips for investing for income from Neil Woodford and others

Frozen interest rates near historic lows, after the Bank of England left base rate unchanged at 0.5 per cent for the 19th month in a row, mean real losses for savers in bank and building society deposits which fail to match inflation. Here are 10 tips on how to invest for income and real returns… Read more

OCTOBER 9TH, 2010 20:56

IMF fails to agree on anything

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Few IMF communiques are good for anything other than providing tomorrow's fish and chip paper, but even by its own gloriously low standards, the International Monetary Fund has managed to surpass itself with its latest statement. Such a meaningless load of waffle is hard to recall. Even Dominique Strauss-Kahn, the IMF's managing director, appeared embarrassed by… Read more