Saturday, January 1, 2011
Tuesday, January 5, 2010
Goldman Sachs predicts bounce for UK economy
Goldman Sachs has predicted the UK economy will bounce back during 2010 and will outstrip most G7 growth by 2011.
The investment bank predicts UK GDP will rocket back into positive figures this year, to 1.9 per cent and will then move up to 3.4 per cent by 2011.
It says growth in the UK will exceed that of Japan, the Eurozone and the USA. Overall, thanks in part to predicted massive growth in China and India, Goldman Sachs says world GDP will rise to 4.4 per cent this year.
Goldman Sachs economist Jim O’Neill says: “Looking at 2010, as we have been since the spring, when we first significantly upgraded our forecasts for 2010 for China, we remain more optimistic than the consensus.
“For 2011, we are even more optimistic, despite having a modest slowdown in China and Brazil. This is due to a modest acceleration in the G7 countries, notably the UK, as well as a notable acceleration in some other important countries, such as India.”
O’Neill says the firm remains bearish with regard to the US, and fears that slow growth may drag the country into another recession. He says: “If the US were to fall back into another recession, with actual declines in GDP, then this would pose a fresh significant risk for the rest of the world.”
UKCIG Investment News, Jan 2010
UK investment chief to leave UBS
The chief investment officer of UBS Global Asset Management in the UK is to step down in March after five years in the role and more than two decades at the Swiss financial services group.
John Harrison, who joined UBS 22 years ago, will leave his post as chief investment officer for the firm's UK asset management division in March. Harrison will also relinquish his position as head of UK Institutional Advisory Solutions.
UBS will stop short of picking a direct replacement for Harrison, according to sources familiar with the matter. However, Jonathan Davies, head of currency for UBS Global Asset Management, will take over many of Harrison's duties, the sources said.
Several investment consultants said UBS had sent them details of Harrison's retirement in October and had begun informing their clients who invested money through the Swiss firm's funds of his departure.
A spokesman from UBS confirmed Harrison would leave this year.
Harrison oversaw a restructure of UBS GAM's UK equities arm in October 2007 after a period of underperformance. The reshuffle saw a couple of prominent fund managers lose their positions
UKCIG Investment News, Jan 2010
John Harrison, who joined UBS 22 years ago, will leave his post as chief investment officer for the firm's UK asset management division in March. Harrison will also relinquish his position as head of UK Institutional Advisory Solutions.
UBS will stop short of picking a direct replacement for Harrison, according to sources familiar with the matter. However, Jonathan Davies, head of currency for UBS Global Asset Management, will take over many of Harrison's duties, the sources said.
Several investment consultants said UBS had sent them details of Harrison's retirement in October and had begun informing their clients who invested money through the Swiss firm's funds of his departure.
A spokesman from UBS confirmed Harrison would leave this year.
Harrison oversaw a restructure of UBS GAM's UK equities arm in October 2007 after a period of underperformance. The reshuffle saw a couple of prominent fund managers lose their positions
UKCIG Investment News, Jan 2010
Friday, December 18, 2009
UK business investment fell revd 0.6 pct in Q3
British business investment fell less than previously thought in the third quarter of this year, down 0.6 percent on the quarter versus an earlier estimate of a 3.0 percent decline, the Office for National Statistics said on Friday.
Year-on-year, business investment was down 19.9 percent versus an earlier estimate of a 21.7 percent fall and leaving total investment at 29.102 billion pounds in the three months to September.
UKCIG Investment News, December 2009
Year-on-year, business investment was down 19.9 percent versus an earlier estimate of a 21.7 percent fall and leaving total investment at 29.102 billion pounds in the three months to September.
UKCIG Investment News, December 2009
UK Trade & Investment contract is awarded to Business & Enterprise North East
BUSINESS & Enterprise North East has won the contract to operate the regional UK Trade & Investment (UKTI) service for another three years.
UKTI helps businesses sell overseas in April and by September nearly 300 businesses had received its help to export.
BENE, which also runs the Business Link support service and North East England Investment Centre, said the North East had been highlighted as the leading UKCIG region within the UKTI Performance and Impact Monitoring Surveys, for areas including improved performance, productivity and competitiveness.
BENE chief executive Alastair MacColl said: “Our aim is to develop the very best package of international trade support in the country and to help even more businesses grow by trading internationally.”
David Coppock, international trade director for UKTI, added: “The business support process has been integrated, cohesive and straightforward, which is crucial in encouraging more businesses to consider opportunities in overseas trade.”
UKCIG Investment News, December 2009
UKTI helps businesses sell overseas in April and by September nearly 300 businesses had received its help to export.
BENE, which also runs the Business Link support service and North East England Investment Centre, said the North East had been highlighted as the leading UKCIG region within the UKTI Performance and Impact Monitoring Surveys, for areas including improved performance, productivity and competitiveness.
BENE chief executive Alastair MacColl said: “Our aim is to develop the very best package of international trade support in the country and to help even more businesses grow by trading internationally.”
David Coppock, international trade director for UKTI, added: “The business support process has been integrated, cohesive and straightforward, which is crucial in encouraging more businesses to consider opportunities in overseas trade.”
UKCIG Investment News, December 2009
FSA proposes raising professional standards for UK investment advisors
Proposals for raising the proficiency standards for financial advisors were published Wendesday by the UK’s Financial Services Authority.
The FSA says that its proposals are intended to enhance the professionalism of investment advisors under its Retail Distribution Review, which is “seeking to rebuild people’s trust and confidence in the retail investment market by raising standards of professionalism.”
The UKCIG regulator has previously announced plans to eliminate commissions and to divide the advisor population into “independent” and “restricted” groups.
On Wednesday the FSA said that a key element of its’ wide-ranging reforms is that by the end of 2012, all advisors, whether independent or restricted, “will need to demonstrate greater knowledge and skills and meet enhanced standards in dealing with clients. “
The FSA is proposing to create a new in-house governance structure to ensure advisors achieve this greater level of professionalism, both initially and on an ongoing basis through the achievement of new, higher level qualifications; meeting enhanced standards of continuing professional development; and adhering to common ethical standards.
The regulator says that this approach would enable it to apply its more intensive supervisory approach, including its greater focus on individuals in key positions, to the retail investment advice sector. At the same time, the FSA is proposing that professional bodies, registered with and overseen by the FSA, should play a greater role in helping their members meet its new professionalism requirements.
“Raising professional standards is a core strand of our reforms of the retail investment market. Through this, people will come to expect the same level of professionalism from investment advisors as they do from other professions. We will closely supervise the necessary improvement in standards that we are seeking to bring about which, along with the other aspects of the RDR, will come into force from the beginning of 2013,” said Sheila Nicoll, the FSA’s director of conduct policy.
UKCIG Property News, December 2009
The FSA says that its proposals are intended to enhance the professionalism of investment advisors under its Retail Distribution Review, which is “seeking to rebuild people’s trust and confidence in the retail investment market by raising standards of professionalism.”
The UKCIG regulator has previously announced plans to eliminate commissions and to divide the advisor population into “independent” and “restricted” groups.
On Wednesday the FSA said that a key element of its’ wide-ranging reforms is that by the end of 2012, all advisors, whether independent or restricted, “will need to demonstrate greater knowledge and skills and meet enhanced standards in dealing with clients. “
The FSA is proposing to create a new in-house governance structure to ensure advisors achieve this greater level of professionalism, both initially and on an ongoing basis through the achievement of new, higher level qualifications; meeting enhanced standards of continuing professional development; and adhering to common ethical standards.
The regulator says that this approach would enable it to apply its more intensive supervisory approach, including its greater focus on individuals in key positions, to the retail investment advice sector. At the same time, the FSA is proposing that professional bodies, registered with and overseen by the FSA, should play a greater role in helping their members meet its new professionalism requirements.
“Raising professional standards is a core strand of our reforms of the retail investment market. Through this, people will come to expect the same level of professionalism from investment advisors as they do from other professions. We will closely supervise the necessary improvement in standards that we are seeking to bring about which, along with the other aspects of the RDR, will come into force from the beginning of 2013,” said Sheila Nicoll, the FSA’s director of conduct policy.
UKCIG Property News, December 2009
Tuesday, December 15, 2009
U.K. Wants Investment Banks to Plan for Return of Client Money - UKCIG Investment News
The British government will urge investment banks to prepare plans to hand back money to investors in the event of collapse, an effort to overhaul insolvency law after the demise of Lehman Brothers Holdings Inc.
Treasury Minister Paul Myners today will call for data on counterparties to deals to be stored in a readily accessible way so that investors have easy access to their cash, according to a Treasury official.
The U.K. has already overhauled bank-rescue rules and is seeking to restructure financial supervision after the global credit crunch forced the government to nationalize Northern Rock Plc and take control of Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc.
Lehman filed the biggest bankruptcy in history in September 2008, roiling financial markets and sparking lawsuits by former clients whose assets were frozen in insolvency proceedings around the world. Estimates show the bankruptcy cost creditors as much as $75 billion.
The government wants insolvency laws to have special provisions for investment banks after the collapse of Lehman revealed the rules aren’t well adapted to that scenario. The U.K. will shun adoption of U.S.-style Chapter 11 protection from creditors because it isn’t suited to English law, the Treasury said in May.
The official said the measures aim to prevent the confusion that followed the collapse of the U.S. bank.
Under the proposals, the UKCIG will require banks to set aside money to pay staff for a limited period in the event of a collapse, the official said. The Treasury will suggest insolvency-proof contracts and that people involved in deals are kept on for a set period.
The proposals follow talks among investment banks, lawyers, insolvency experts, the Financial Services Authority, the Bank of England and the Treasury. The markets regulator in April put financial companies on notice about the need to research and “ring-fence” client assets in the wake of Lehman’s failure.
Treasury Minister Paul Myners today will call for data on counterparties to deals to be stored in a readily accessible way so that investors have easy access to their cash, according to a Treasury official.
The U.K. has already overhauled bank-rescue rules and is seeking to restructure financial supervision after the global credit crunch forced the government to nationalize Northern Rock Plc and take control of Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc.
Lehman filed the biggest bankruptcy in history in September 2008, roiling financial markets and sparking lawsuits by former clients whose assets were frozen in insolvency proceedings around the world. Estimates show the bankruptcy cost creditors as much as $75 billion.
The government wants insolvency laws to have special provisions for investment banks after the collapse of Lehman revealed the rules aren’t well adapted to that scenario. The U.K. will shun adoption of U.S.-style Chapter 11 protection from creditors because it isn’t suited to English law, the Treasury said in May.
The official said the measures aim to prevent the confusion that followed the collapse of the U.S. bank.
Under the proposals, the UKCIG will require banks to set aside money to pay staff for a limited period in the event of a collapse, the official said. The Treasury will suggest insolvency-proof contracts and that people involved in deals are kept on for a set period.
The proposals follow talks among investment banks, lawyers, insolvency experts, the Financial Services Authority, the Bank of England and the Treasury. The markets regulator in April put financial companies on notice about the need to research and “ring-fence” client assets in the wake of Lehman’s failure.
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