Showing posts with label Economy. Show all posts
Showing posts with label Economy. Show all posts

Friday, 11 December 2009

Tories call benefit rise 'pre-election con'

Alistair Darling forced to launch defence of pre-Budget report after facing intense criticism of "pre-election con"
The Conser
vatives have branded Alistair Darling's plan to increase benefits a 'pre-election con.'

They say the increased benefits will rise before a vote next year only to fall afterwards.

The chancellor defended his pre-Budget report saying that the benefits will in fact rise again the following year.

Critics say the 1.5 per cent increase in some benefits including child support, incapacity benefit and disability allowance which will come into effect in April 2010, potentially weeks before a general election, are only a temporary measure and will be reversed the following year.

It is just one of many aspects of yesterday's pre-Budget report which the Conservatives say make it more political than economic.

Alistair Darling defended the increase and denied it was politically motivated.

He told the BBC: 'I wanted to increase them [the benefits in question] by 1.5 per cent otherwise they would have been frozen. They'll go up again next year.'

Another area of Wednesday's report which came under fire from shadow chancellor George Osborne was the one per cent rise in national insurance.

The hike announced for 2011 will affect anyone earning over £20,000. The government predicts it will raise £2.9 billion in 2011-12.

Mr Osborne though called the rise 'nonsense' on GMTV this morning and claimed it would 'impose a £446 million bill on the NHS, eating into the very resources which the chancellor claimed to be protecting'.

Mr Darling claimed the money generated would in fact protect key public services. He said: 'It's a difficult decision but I think it was right both in terms of what I want to do to cut my borrowing but also, in terms of something like the NHS or schools, it is important we preserve those frontline services.'

The Conservatives have branded Alistair Darling’s plan to increase benefits a 'pre-election con.'

They say the increased benefits will rise before a vote next year only to fall afterwards.

The chancellor defended his pre-Budget report saying that the benefits will in fact rise again the following year.

Critics say the 1.5 per cent increase in some benefits including child support, incapacity benefit and disability allowance which will come into effect in April 2010, potentially weeks before a general election, are only a temporary measure and will be reversed the following year.

It is just one of many aspects of yesterday's pre-Budget report which the Conservatives say make it more political than economic.ADNFCR-708-ID-19506551-ADNFCR

Thursday, 10 December 2009

Osborne: Untrustworthy Labour bungled PBR

George Osborne says electorate will not trust Labour ever again in light of today
George Osborne has claimed Labour lost its moral authority and any chance of being trusted by the electorate ever again with today's pre-Budget report.

Alistair Darling unveiled plans in the Commons to raise national insurance contributions and tax bankers' bonuses, as well as increasing public borrowing forecasts for the next two years.

Shadow chancellor Mr Osborne said Mr Darling's plan would actively 'choke off the recovery' and reduce Britain to the 'sick man of Europe'.

'This prime minister inflicted the deepest and longest recession upon us in modern history,' he said after referring to Gordon Brown as 'yet another failed master of the universe'.

'No one will believe a word they say on the economy ever again.'

Repeating his much-maligned 'we're all in this together' line from party conference season Mr Osborne accused Mr Darling of 'ring-fencing a black hole'.

'We were promised a pre-Budget report and what we got was a pre-election report,' he added.

Mr Darling hit back at Mr Osborne's allegation that people earning over £20,000 would pay more tax, saying the shadow chancellor was 'long on politics and short on ideas'.

For the Liberal Democrats, Vince Cable said Mr Darling could have done more with capital gains tax, which is staying unchanged at 18 per cent.

'There is a long hard slog ahead for the economy and the chancellor has not set out our path for it,' the party's Treasury spokesman said.

He added that it had been a 'good Budget for bingo and boilers', and that the economy was now being 'rebuilt on sand'.ADNFCR-708-ID-19503941-ADNFCR

Chancellor announces levy on bankers' bonuses

Chancellor announces 50 per cent levy on bankers
The chance
llor yesterday announced a 50 per cent levy on all bankers' bonuses over £25,000.

The super-tax announced in his pre-Budget report is hoped to curb the culture of excessive bonuses.

The 50 per cent levy is to be paid by companies rather than employees and is hoped to claw back an extra £500 million for the UK. This money is to be used to pay for new measures also announced in the report including help for the young and older unemployed to get back into work.

Alistair Darling said: 'If they [banks] insist on paying substantial rewards, I am determined to claw money back for the taxpayer. I have decided to introduce from today a special one-off levy of 50 per cent on any individual discretionary bonus above £25,000. This will be paid by the bank not the bank employee.'

It has though attracted criticism from some who say it makes London a less attractive proposition for international businesses.

Angela Knight, British Bankers' Association chief executive, said: 'Viewed from abroad, London may well look now like a significantly less attractive place to build a business. We must repeat that only concerted international agreements will succeed in reforming remuneration in the financial sector.'

She added: 'This new tax has to be set in the context of commitments already made. The UK's banks have already agreed to observe pay restraints where bonuses are mostly deferred and paid in shares. We are already well ahead of the other G20 countries in doing this.'

Others have criticised the move arguing that a levy should have been put on bank's profits rather than staff bonuses, and that it would be difficult to enforce.

Vince Cable, the Liberal Democrat deputy leader, speaking in parliament after the pre-Budget report, said: 'How will you stop the banks converting the bonuses into their basic salaries? You need not to try to tax bankers separately from high earners but to have to pay a levy on bank profits because they rely on the taxpayer guarantee.' ADNFCR-708-ID-19505189-ADNFCR

FTSE 100 remains positive in early trading

FTSE 100 remains positive in early trading
The FTSE 100 started brightly on Thursday morning as the market continues to show indifference to yesterday's pre-Budget report.

At 09:40 GMT the London index stood at 5,216.33, a rise of 12.44 points, 0.24 per cent.

Royal Bank of Scotland led the gains, up 2.77 per cent, to 31.17p, despite chancellor Alistair Darling's announcement on Wednesday of a new super-tax on bankers' bonuses.

The Bank of England's predicted announcement of a holding of interest rates later also appears not to be weighing on traders' minds, with Barclays, Lloyds Banking Group and HSBC all performing well in early trading.

The biggest loser of the day so far is Land Securities Group – down 1.24 per cent to 639p.ADNFCR-708-ID-19505179-ADNFCR

Wednesday, 9 December 2009

FTSE 100 shrugs off pre-Budget report

FTSE 100 unaffected by PBR
The FTSE 100 ended Wednesday down 19.24 points, mirroring falls in the European markets and Wall Street.

The London index finished on 5,203.93, a drop of 0.37 per cent, on the day chancellor Alistair Darling unveiled his pre-Budget report.

Leading the gains was Segro, up 3.67 per cent, to 333.30p.

Old Mutual was the biggest loser, down 5.63 per cent, to 104p, with Man Group also recording a fall of 12.4 points.

The much-anticipated PBR this afternoon, in which Mr Darling announced a levy on bankers' bonuses, however, had surprisingly little effect on the banking shares.ADNFCR-708-ID-19504600-ADNFCR

Tuesday, 8 December 2009

FTSE 100 steady in early trading

FTSE 100 steady in early trading
The FTSE 100 remained level at the start of play on Tuesday.

By 09:36 GMT the London index stood at 5,315.55, a rise of just 4.89 points – 0.09 per cent.

Royal Bank of Scotland was the biggest loser in early trading, down 3.09 per cent to 31.98p, with Man Group down over 1.5 per cent to 320.10p.

Tesco also recorded a slump of 1.32 per cent, to 429.90p, despite positive third quarter results published today.

Leading the gains were Pearson, up 20 points, and British Sky Broadcasting, up 9.5 points.ADNFCR-708-ID-19500099-ADNFCR

Monday, 7 December 2009

FTSE 100 dragged down at close of trading

FTSE 100 shrinks 11.70 points at close of trading on Monday
The FTSE 100 shrunk again on Monday after losing 11.70 points, 0.22 per cent, at close of trading.

Continued speculation over a potential windfall tax in Wednesday's pre-Budget report led to uncertainty over banking stocks.

Royal Bank of Scotland and Lloyds Banking Group, both taxpayer-owned, saw their shares dip 5.05 and 4.48 per cent respectively.

Barclays was not immune from the worries as its shares dipped 2.39 per cent.

Leading the index in the opposite direction were copper mining group Antofagasta (2.17 per cent) and travel firms Thomas Cook Group and TUI Travel (2.07 and 1.66 per cent). ADNFCR-708-ID-19499300-ADNFCR

'Public debt set to rise to dangerous levels'

Public debt is set to rise to dangerous levels in the next year, according to a leading business group.

The debt may exceed 90 per cent of Britain's GDP.

The British Chamber of Commerce (BCC) made the predictions in its latest economic forecast published today.

In advance of the chancellor's pre-Budget report on Wednesday the BCC suggests that this debt can only be reduced through fiscal tightening such as tax increases and cuts in public spending.

The report also states the pre-Budget report should not restrict the ability of the private sector to drive economic recovery. It warns that though the economy is in recovery there is still a serious risk of the UK suffering a double dip recession. For recovery to be sustained additional monetary stimulus and measures are needed to boost lending.

David Frost, director general of the BCC, said: 'We need a thriving business sector to drive the UK's recovery, so it's vital that the chancellor's pre budget report avoids new business taxes, higher National Insurance contributions, or any measures that might damage investment, growth, and job creation.

'Given the perilous state of the public finances, we cannot afford any sacred cows when it comes to making spending cuts, no matter how politically desirable it may be.'

David Kern, BCC chief economist, added: 'The UK economy is probably now growing again but a relapse in activity is a real danger. Preventing a double dip recession must be the main priority.

'In the next two or three quarters, the recovery will be driven by the stock cycle and by the cumulative impact of huge injections of monetary and fiscal stimulus.'ADNFCR-708-ID-19496559-ADNFCR

Friday, 4 December 2009

FTSE 100 dips slightly in early trading

FTSE 100 dips slightly in early trading
The FTSE 100 opened down over half a per cent on Friday morning.

At 09:30 GMT the London index stood at 5,279.48, a drop of 33.52 points – 0.63 per cent.

Leading the falls was Hammerson, down 14.70 points to 403.40p. Continuing its unpredictable week, the Royal Bank of Scotland also saw its stock drop 3.07 per cent on opening, down to 34.05.

The drop by RBS follows gains of over four-and-a-half per cent yesterday. The bank has suffered a turbulent week with the row over banker's bonuses continuing to rumble on with the board still sticking to its threat to quit if payments are not made.

Leading the gains on Friday morning was British Airways, up 1.65 per cent, 3.40 points, to 209.60p.ADNFCR-708-ID-19495132-ADNFCR

Thursday, 3 December 2009

Pre-Budget report 'must not hide tax rises'

Alistair Darling
The pre-Budget report must not hide tax rises and spending cuts, according to a leading thinkthank.

The public deserve realistic measures not vote winning policies, the Institute of Public Policy Research (IPPR) claims.

The thinktank said the government should be honest in the report, which comes out on December 9th, about cuts in public spending and rises in taxes aimed at reducing the public deficit.

In a report on how to deal with the UK's financial deficit the IPPR proposes that in the wake of the recession and the expenses scandal the public now expects honesty from politicians. The chancellor should take the initiative and use the pre budget report to set out long term but balanced tax rises and spending cuts.

The report, which contains contributions from leading experts on fiscal policy and public spending, outlines an agenda for the government to follow in next weeks report.

The five-point agenda proposes some bold decisions including reforming services such as the police and navy, increasing taxes, and the ending of ring fenced public spending.

Carey Oppenheim, co-director of IPPR said: 'The pre-Budget report is one of the last opportunities before the general election for the government to make an honest and bold statement about how it will tackle the public finances and to set out its vision for the economy over the next five years.

'Learning the lessons of the expenses crisis now is the time for the government to be honest with the public and engage them in a debate about priorities.'

He added: 'This will mean proposing measures that are likely to be unpopular, but necessary, if the government is serious about closing the UK's fiscal deficit.'ADNFCR-708-ID-19491413-ADNFCR

FTSE 100 holds steady in early trading

FTSE 100 holds steady in early trading
The FTSE 100 opened steadily on Thursday morning, continuing to make gains following the uncertainty at the start of the week.

At 09:46 GMT the London index had risen 35.54 points, 0.67 per cent, to 5,362.93.

Leading the gains was Lloyds Banking Group – up almost five per cent, to 55.70p.

Barclays also saw its stock rise 3.63 per cent to 209p. And reversing the trend for much of this week, Royal Bank of Scotland rose 1.06 points, 3.16 per cent, to 34.61.

GlaxoSmithKline and Compass Group recorded the largest drops in early trading, both down almost one per cent.ADNFCR-708-ID-19492623-ADNFCR

Wednesday, 2 December 2009

FTSE 100 holds firm in early trading

FTSE 100 holds firm in early trading
The FTSE 100 held firm in early trading on Wednesday morning.

At 10:04 GMT the London index was down 0.02 per cent at 5,310.86.

The biggest gains so far have been made by Eurasian Natural Resources Corp, up 2.39 per cent to 920.50p.

The banking sector continued to suffer though, as it has for the majority of the week, with Royal Bank of Scotland down over five per cent, to 32.47p.

Lloyds Banking Group also saw its stock drop 2.24 points to 51.90p and Barclays down over ten points to 285.50p.

Yesterday the London index ended up 2.34 per cent as fears over Dubai's debt eased.ADNFCR-708-ID-19490067-ADNFCR

Tuesday, 1 December 2009

FTSE 100 rebounds up 2.34 per cent

FTSE 100 rebounds up 2.34 per cent
The FTSE 100 ended the day up 121.49 points, 2.34 per cent, as fears over Dubai's debt eased.

By the end of trading on Tuesday the London index stood at 5,312.17.

Concerns over the Dubai economy saw markets worldwide slump at the start of the week but traders seemed buoyed by the news Dubai World has unveiled plans to restructure some £15.8 billion of its debt.

Mining shares led the gains today with Fresnillo up 6.94 per cent to 901.50p and Xstrata also up 67 points to 1,136p.

Lloyds Banking Group ended the day down over two per cent to 54p. TUI travel also fell to 244p after full-year results failed to live up to market expectations.ADNFCR-708-ID-19489533-ADNFCR

House prices rise for 7th consecutive month

House prices rise for 7th consecutive month
House prices rose for the seventh month in a row during November, according to the latest house price index.

The cost of a home rose 0.5 per cent making the average property price £162,764, according to Nationwide.

This figure was last seen in August 2008 but the building society warns there are signs that the pace of recovery is starting to slow.

The 0.5 per cent growth seen during November was the same as that seen during the previous month of October, but is the smallest rise in prices since they stopped falling in April.

The housing market recovered quicker than first expected in 2009 with the low number of houses on the market meaning prices have gone up. Experts though predict 2010 will see a fall in house prices as more homes are put up for sale.

Nationwide's chief executive Graham Beale said: 'Much of the increase in prices this year has been caused by an unusually low level of properties available for sale rather than a robust recovery in house purchase transactions.'

The figures come a day after the Bank of England announced that the number of loans approved for buying houses were at their highest level since March 2008, having increased for the 11th month in a row during October to 57,345.

Nationwide added that the housing market remained 'crucially dependent' on labour market conditions.

Martin Gahbauer, Nationwide's chief economist, said: 'Despite continued uncertainties about the future, the better than expected performance of the labour market has probably contributed to the surprise rebound in house prices this year.'ADNFCR-708-ID-19488053-ADNFCR

Dubai shares continue to slump on second day

Dubai shares continue to slump on second day
The Dubai stock market dropped 6.25 per cent on opening today as uncertainty over the region's economic stability continues.

Neighbouring Abu Dhabi also saw its market slump by 5.9 per cent coming on the back of sharp drops yesterday.

The chaos followed the announcement by the government's holding company Dubai World that it had asked to delay payments of debts of £35 billion.

The news came before the start of the Eid festival, with the markets only opening again yesterday, hence the sharp drops recorded this week.

Traders feared the announcement could result in Dubai defaulting on debt payment, although Dubai World has unveiled plans to restructure £15.8 billion of the debt.

Dubai's government has distanced itself from the problems with finance minister Abdulrahman al-Saleh saying: '[Creditors] think Dubai World is part of the government, which is not correct.'

British banks saw their stock fall yesterday on the back of the drops in Dubai, but the FTSE 100 opened over one per cent this morning.ADNFCR-708-ID-19488017-ADNFCR

FTSE 100 bounces back as Dubai slumps

FTSE 100 bounces back as Dubai slumps
The FTSE 100 rebounded in style this morning despite markets in Dubai and Abu Dhabi recording significant drops for a second day running.

At 09:19 GMT the London index stood at 5,275.35, up 84.67 – 1.63 per cent.

Leading the gains were Eurasian Natural Resources Corp – up 4.82 per cent to 903p - and real estate firm Hammerson – up to 419.20p, a rise of 4.62 per cent.

The biggest drops were experienced by TUI Travel – down 0.20 per cent to 245.40p after its full-year results failed to live up to market expectations.

Lloyds Banking Group was also down to 55.11p.

In Dubai the chaos sparked by the request from the government's holding company Dubai World to delay payments of debts of £35 billion saw the stock market drop 6.25 per cent on opening today.

Neighbouring Abu Dhabi also saw its market slump by 5.9 per cent coming on the back of sharp drops yesterday.ADNFCR-708-ID-19487621-ADNFCR

Friday, 27 November 2009

FTSE 100 bounces back

FTSE 100 bounces back
The FTSE 100 ended Friday up slightly after dropping 1.5 per cent on opening on the back of uncertainty over the economic stability of Dubai.

At the close of play the London index reached 5,245.73, a rise of 51.60 points, 0.99 per cent.

Markets around the world initially slumped on the news the state-owned Dubai World would delay debt payments.

However, a better-than-feared reaction to the news on Wall Street on Friday afternoon helped bolster a recovery on the FTSE100.

The mining sector helped push the London index up, with Royal Bank of Scotland leading the gains, up 5.24 per cent

Thomas Cook also recorded significant gains on the back of expectations over next week's full-year report.ADNFCR-708-ID-19484413-ADNFCR

Dubai continues to send FTSE 100 down

Dubai continues to send FTSE 100 down
The FTSE 100 opened downed 1.5 per cent as the uncertainty over Dubai continued to unsettle traders around the world.

Yesterday the London index saw its biggest slump since March with a drop of 3.18 per cent on the news the government-owned Dubai world would delay debt payments.

The announcement has caused severe uncertainly over the stability of the economic structure in Dubai with a number of companies already seeing their credit rating downgraded.

The banking sector was hit particularly hard yesterday with Barclays, down 7.97 per cent and Royal Bank of Scotland also falling 7.74 per cent.

The news rocked markets around the world with Asia's markets also recorded steep drops.

Tokyo's Nikkei index fell 3.2 per cent, while in Hong Kong the Hang Seng ended down 4.2 per cent.

By 09:00 GMT the FTSE 100 had recovered slightly, down 0.61 per cent from yesterday to 5,162.47.ADNFCR-708-ID-19482463-ADNFCR

Tuesday, 10 November 2009

FTSE 100 up on commodities, financials

FTSE 100 up on commodities, financials
The FTSE 100 rose 0.26 per cent higher to 5,248.59 in early trading on Tuesday, led by commodities and financial stocks.

Financial services firm Schroders led the way, up by 4.61 per cent, closely followed by Royal Dutch Shell, up by 2.34 per cent.

However, mining stocks were weighing on the index, with Randgold Resources down by 1.78 per cent, Lonmin 1.48 per cent lower and Xstrata down by 1.29 per cent.

Barclays also looked likely to take the FTSE 100 into the red, after third quarter results did not meet investors’ expectations, despite a pledge from the bank to return to paying dividends.

Cadbury has also dipped into the red and was down by 0.26 per cent in early trade after rebuffing Kraft’s £9.7 billion offer yesterday.

Last night, markets across the world jumped on hope the G20 members will continue to stimulate the economy, increasing investor confidence.

The Dow Jones closed two per cent higher, while the S&P was up by 2.2 per cent.ADNFCR-708-ID-19451116-ADNFCR

FTSE 100 up on commodities, financials

FTSE 100 up on commodities, financials
The FTSE 100 rose 0.26 per cent higher to 5,248.59 in early trading on Tuesday, led by commodities and financial stocks.

Financial services firm Schroders led the way, up by 4.61 per cent, closely followed by Royal Dutch Shell, up by 2.34 per cent.

However, mining stocks were weighing on the index, with Randgold Resources down by 1.78 per cent, Lonmin 1.48 per cent lower and Xstrata down by 1.29 per cent.

Barclays also looked likely to take the FTSE 100 into the red, after third quarter results did not meet investors’ expectations, despite a pledge from the bank to return to paying dividends.

Cadbury has also dipped into the red and was down by 0.26 per cent in early trade after rebuffing Kraft’s £9.7 billion offer yesterday.

Last night, markets across the world jumped on hope the G20 members will continue to stimulate the economy, increasing investor confidence.

The Dow Jones closed two per cent higher, while the S&P was up by 2.2 per cent.ADNFCR-708-ID-19451116-ADNFCR