UK News

Insights from the UK and beyond

from Reuters Investigates:

Financial cyber-bullying?

"They love a conspiracy theory on the boards," David Jones, chief market strategist at spread betting firm IG Index told UK correspondents Rosalba O'Brien and Matt Scuffham when they were reporting for "The stock, the web, the CEO and his lawyers" . It's a look at some of the shenanigans around highly speculative resource stocks when they are discussed on message boards like  ADVFN and iii. Late-night gossip and personal insults are par for the course: some suspect organised short-sellers may be behind the talk. Given the high volumes of online trading in the UK, we wonder how long it will be before regulator FSA is forced to take a closer look.

Day-trader John Douce is sceptical about the boards' impact on stock prices

Day-trader John Douce is sceptical about the boards' impact on stock prices

The private sector vs. definitions of fairness

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– Ingrid Smith is Business Planning Editor,  Reuters Consumer Television –

Sitting in the auditorium of the London School of Economic’s Old Theatre earlier this month, I listened to Lord Turner pose the question – in rich societies is there a clear correlation between increased wealth and human well being?

from Breakingviews:

Hedge funds may still escape EU pay crackdown

Hedge funds should stop panicking. It is true that some have been lumped in with banks on tough new European Union rules regulating pay. But there are a number of factors that should defuse the threat.

Managers have understandably looked askance at the new rules, which were passed by the European Parliament today. They feel that interfering with their pay is unjustified, given that the sector was not the prime driver of the financial crisis, and did not receive taxpayer bailouts.

Pru’s Asian misadventure: a cautionary tale

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PRUDENTIAL/By Clara Ferreira-Marques

Prudential’s ill-fated Asian adventure has left the company and its management badly bruised. But it has offered at least two valuable lessons for ambitious executives tempted onto the acquisition path by post-crisis, “once-in-a-lifetime” deals.

Lesson one: It’s not 2007 any more, Toto.

Lesson two: Disregard shareholders at your peril.

On the first, bold mega-deals that once impressed the market now seem to mostly unsettle both investors and regulators.

Web round-up: Reaction to FSA’s bank regulation proposals

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The Financial Services Authority (FSA) has published a blueprint for a shake-up of global banking regulations aimed at preventing a repeat of the current financial crisis. The report, authored by FSA Chairman Adair Turner, recommends an increase in banks’ minimum capital requirements, closer regulation of hedge funds as well as proposals to stop banks lending too much during boom years and measures to restrict the ability of banks to take excessive risks.

The report comes a week after FSA Chief Executive Hector Sants said in a speech at Thomson Reuters London offices that the banking sector should be “very frightened” of the regulator.

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