UK News

Insights from the UK and beyond

Press Round-up – January 17

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S&P downgrades euro zone bailout fund
Standard & Poor’s on Monday stripped the eurozone’s rescue fund of its AAA credit rating, potentially constraining its ability to contain the region’s debt crisis and focusing attention on efforts to create a more robust successor.  (FT)

Italy’s Monti seeks help on borrowing
Italy’s prime minister Mario Monti has pleaded for Germany and other creditor countries to do more to help lower his country’s borrowing costs, warning there would be a “powerful backlash” among voters in the eurozone’s struggling periphery if they did not. (FT)

Millions wipe off ship owner’s fortune
More than £300 million has been wiped off the paper fortune of Micky Arison, the multibillionaire boss of the company that owned the stricken cruise liner Costa Concordia. (Guardian)

Debt crisis nearing end, says HSBC chief
The European debt crisis is likely to be over in a “reasonably short timeframe,” the chairman of HSBC Douglas Flint has predicted. (Telegraph)

Press Round-up – January 16

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Greece’s creditors seek end to deadlock
Greece’s international creditors are considering an appeal to French and German leaders to break a deadlock in negotiations over the size of the losses to be taken by banks and other bondholders as part of a 100 billion euros deal seen as crucial to bringing the country’s debt under control. (FT)


Osborne to unveil new deal with China
British finance minister George Osborne will hail a ground-breaking agreement with China on Monday that will bring a multibillion pound boost to the UK’s financial services district. (Times)

from Breakingviews:

RBS has tough fight to put value in wholesale arm

By Margaret Doyle

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

Royal Bank of Scotland, the state-owned UK lender, is cutting its investment bank, again, and is merging it with its international payments unit. The new division aims to make more than the 12 percent groupwide cost of capital. It must do at least that to have any value. But it is a big ask given regulatory and political headwinds.

from Breakingviews:

Tesco’s ambitions earthed by UK retail reality

By Edward Hadas

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

When Philip Clarke took over from the Sir Terry Leahy as Tesco’s chief executive in March 2011, he seemed to have one of the sweetest corporate inheritances around. The company was strong in its British home market and growing well elsewhere, although the U.S. expansion remained a work in progress.

Press Round-up – January 13

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UniCredit cash call to hit core investors
Aabar, the Abu Dhabi investment fund, the Libyan Investment Authority and the Libyan Central Bank, all core investors in UniCredit, are expected to be heavily diluted in the 7.5 billion euros cash call by the Italian bank. (FT)

Investors take plunge on European debt
Spain and Italy carried out successful debt sales as the euro enjoyed a rare good news day on Thursday, bolstered by the cautious view of Mario Draghi that the crisis in the single currency zone was stabilising. (Times)

Today in the Newspapers – January 12

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Osborne turns screw on RBS over bonuses
British finance minister George Osborne piled on the pressure for pay restraint at Royal Bank of Scotland, saying that he personally wanted to talk to the management before any bonuses were paid out in the coming months. (Times)


French rivals compete for wind farm share
French utilities EDF and GDF Suez are set to compete for a large share of a 10 billion euro off-shore wind development off the coast of France. (FT)

Today in the newspapers – January 11

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EU to block DB-NYSE link
European competition officials have recommended blocking the tie-up between Deutsche Boerse and NYSE Euronext , the German and U.S. exchange operators, setting in motion three weeks of frantic lobbying to salvage the deal. (FT) (Times)

Osborne to raid UK pension pot
British finance minister George Osborne is planning to raid the 140 billion pound council pension fund to pay for new roads, bridges and homes. (Times)

from John Lloyd:

No Union, please, we’re English

The opinions expressed are his own.

In France, it is les Anglais. In Germany, die Engländer. In Italy, gli Inglesi. In Russia, Anglichane.

The peoples of the United Kingdom, for most other peoples, are habitually “English.”

from Breakingviews:

UK banks need government to solve funding squeeze

By George Hay
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.The Bank of England is tooling itself up. The UK central bank announced on Dec. 6 a new facility to help domestic lenders if the euro zone crisis causes a fully-fledged freeze in short-term funding markets. But banks may still need more help.

The BoE already has two ways to combat liquidity squeezes. It allows banks to borrow against liquid collateral for three or six months through its Indexed Long-Term Repo (ILTR) auctions. And it allows desperate banks to swap illiquid collateral for gilts for up to a year via its Discount Window Facility (DWF) – in return for a fat fee and big haircuts.

from Reuters Soccer Blog:

Time for UEFA to revert to goal difference in Champions League

My head is hurting after all the mathematics that has been needed to work out qualification chances in the Champions League.

It is all because UEFA believes head-to-heads rather than goal difference in all group games should be the first deciding factor.

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