In a controversial plan Vince Cable the Business Secretary, will announce the plans today for a government-backed corporate lender. This is an attempt to reignite lending and reinvigorate the UK economy, though firmer details as to the scale and setup are yet to be decided. I personally think that this is a backwards step and that a regulated banking sector is the solution rather than a politicised government lendeThe new Chief Executive of Barclays Antony Jenkins has vowed to review each unit of the bank, following the libor scandal. He commented that he was committed to a universal banking model and maintaining a strong investment bank. Some analysts had noted at his appointment, that due to his retail banking background, he could potentially move focus away from the profitable investment banking arm.
A committee of top central bankers from around the globe has announced to study the key lending rate, libor. Various scenarios have been publicised, ranging from a slight change to a complete overhaul of the current system following the highly publicised manipulation.
HSBC sells Pakistan arm -The Daily Telegraph
Primark helps AB Foods buck market gloom -CityAM
Tories broker 4G peace talks deal between UK mobile phone operators -Financial Times
Rivals are circling JJB Sports in the hope of taking control of the indebted sportswear chain's best stores -The Times
Moody’s believes that Nomura’s $1bn European cost cutting should help them on the path back to profits - CityAM
Japan Airlines raises $8.5bn in Asian float that was six times oversubscribed -Bloomberg
While I have been writing the morning update, Burberry announced that their profits will be at the lower end of guidance, in premarket they are down and expected to fall on the open.
Angela Ahrendts, Chief Executive Officer, commented:
"As we stated in July, the external environment is becoming more challenging. In this context, second quarter retail sales growth has slowed against historically high comparatives. Given this background, we are tightly managing discretionary costs and taking appropriate actions to protect short term profitability, while continuing to execute on our proven five key strategies."*
*Full release can be found here: