Each week QFINANCE will endeavor to bring you some of the biggest news stories from the past five days in finance and business, as well as some of the most fascinating websites and links that have crossed our path. We hope you'll enjoy reading it and you'll come back each Thursday to brush up on your finance and business knowledge.
Friday February 3
The week ended with a mix of opinions on the future UK economy. The BBC reported an “unlikely recession” with a strong increase of the service sector in Britain after a rise of Markit/CIPS services purchasing managers' index (PMI) from 54 to 56 since March 2011. The FT, on the other hand, based on the National Institute for Economic and Social Research (NIESR) forecasts, announced that “recession (is) predicted to return.”
More on BBC
More on the FT
Monday February 6
Doubts about the possible merger of Glencore and Xstrata have dragged the FTSE down on Monday as the Greek coalition hasn’t agreed on new austerity measures. The FTSE 100 dropped to 8.87 points, or 0.2 percent. UBS predicted approximate synergies of around $1 billion between the two groups nothing that "these are sufficient for Glencore to pay around a 20 percent premium on the undisturbed price of Xstrata."
More on Reuters
Tuesday February 7
Discussions on the potential merger of Glencore and Xstrata are still going on, as investor’s confidence is rising considerably. Glencore International Plc debt investors were betting on Tuesday that the $88 billion latent merger between the two groups would lower borrowing costs as it would give Glencore coal, copper and nickel mines from Africa to Asia. This might even result in an upgrade to BBB+ grade at Standard & Poor’s according to traders.
More on Bloomberg
Wednesday February 8
In Greece, the coalition fails to agree on new austerity measures after several hours of meetings between PM Lucas Papademos and officials from three parties. In Britain, RBS saga comes back as Stephen Hester reveals the restructuring of the back has cost £38bn including loan losses and disposable costs. The Treasury suggested fixed rules requiring each bank to provide pay details of the top executives outside its boardroom, determined to bring more transparency.
More on the FT
Thursday February 9
The Bank of England’s quantitative easing (QE) program has been expanded by £50bn to be injected into the British economy reaching a total of £325bn overall. The Monetary Policy Committee (MPC) also insured it would maintain interest rates at a low record of 0.5%. The added extra was originally predicted to be at £75bn until last week’s figures showed a better performance of the service and manufacturing sectors.
More on BBCCome back next Thursday for another report on the world of business and finance.
Tags: banking , central banks , economic recovery , EU , financial crisis , Greece , Greek debt , regulation , sovereign debt , Spain , stocks and shares , transparency , UK