Public pensions: the billion/trillion/TBC issue for the new fiscal watchdog
The moment of truth has come: the new government is going to outline £6 billion of spending cuts and to make sure it will stick to deficit tackling measures, it has appointed a new fiscal watchdog, the Office for Budget Responsibility (OBR).
As part of its remit, the new agency will also ”have a role in making an independent assessment of the public sector balance sheet including analysing the cost of ageing, public service pensions,” the Treasury says.
BT’s pension deficit doubts linger
LONDON (Reuters) – The uncertainty surrounding the ballooning pension deficit of British telecoms operator BT Group Plc increased on Thursday after its CEO said talks with the regulator would continue for months.
The group’s pension deficit in the year to end-March nearly doubled to 5.7 billion pounds.
Morning line-up: Pru’s Asian divestment, Gartmore, EU/hedge funds
News and views on the fund sector from Reuters and elsewhere:
Pru outlines Asian divestments to appease shareholders- Reuters
Gartmore says over £1 bln withdrawals after Rambourg’s suspension – Reuters
What’s best for you: UK plc or Macdonald’s?
Pension schemes have retrenched in the wake of the global crisis.
To put it in more delicately: it is a universally acknowledged truth that a pension fund in deficit must be in want of a sustainable source of returns to bridge the funding gap, at moderate risks.
For some the solution has been to change investment strategy, but not necessarily at the expense of equity. In fact, for some the shift has been within an already existing fixed income portfolio, from UK gilts — a popular choice in the post-Lehman days — to corporate bonds, a senior fund manager tells me. Nice work if you can get it — this could be what some investors are saying now, especially if they are UK/euro zone sovereign debt holders.
Britain’s Cameron, Clegg hold post-vote talks
LONDON (Reuters) – The leaders of Britain’s Conservatives and Liberal Democrats met for over an hour of talks on Saturday aimed at resolving the stalemate from this week’s election.
David Cameron’s Conservatives won the most seats in Thursday’s parliamentary election but fell short of a majority and are seeking the support of Nick Clegg’s centre-left Liberal Democrats to end 13 years of Labour rule.
Conservatives and LibDems to meet on Sunday
LONDON (Reuters) – Britain’s Conservatives and Liberal Democrats will hold talks on Sunday after an inconclusive election, but are unlikely to agree on a new government before markets open on Monday, the Conservatives said.
The centre-right Conservatives won most parliamentary seats in Thursday’s election but fell short of a majority and are seeking the support of the smaller Lib Dems to end 13 years of Labour rule.
UK parties to meet on Sunday to discuss deal
LONDON (Reuters) – Britain’s Conservatives and Liberal Democrats will hold talks on Sunday after an inconclusive election, but are unlikely to agree on a new government before markets open on Monday, the Conservatives said.
The center-right Conservatives won most parliamentary seats in Thursday’s election but fell short of a majority and are seeking the support of the smaller Lib Dems to end 13 years of Labour rule.
UK parties to meet on Sunday to discuss gov’t deal
LONDON, May 8 (Reuters) – Britain’s Conservatives and
Liberal Democrats will hold talks on Sunday after an
inconclusive election, but are unlikely to agree on a new
government before markets open on Monday, the Conservatives
said.
The centre-right Conservatives won most parliamentary seats
in Thursday’s election but fell short of a majority and are
seeking the support of the smaller Lib Dems to end 13 years of
Labour rule.
Morning Line-Up: Hedge funds regulation, UK election, Pru’s deal
News and views on the fund industry from Reuters and elsewhere:What’s next for the Pru? Reuters
Frau Merkel calls lack of hedge-fund regulation a “scandal” – Reuters
BA among firms facing costs from new pension rules
LONDON (Reuters) – Proposed changes to global pension accounting rules will make pension costs more volatile at UK firms, exacerbating the impact that pension deficits have on companies like British Airways, experts warned.
The International Accounting Standard Board (IASB) on Thursday announced changes to the way pension deficits and surpluses are accounted for, which accountants KPMG forecast could wipe 10 billion pounds ($15.3 billion) a year from the profits of UK businesses.
-
About Cecilia
-
Follow Cecilia
