Managing Growth - SME Business, Finance and Technology Guide

US shares flat as investors digest housing data

Benchmark share indexes in the US were largely flat on Wednesday (May 27th) as investors mulled the results of a key housing report, which showed that sales of existing properties climbed 2.9 per cent in April.

Brevan Howard tops Hedge Fund 50

Brevan Howard Asset Management has topped Alpha magazine's list of the top 50 hedge funds in Europe, according to reports.

Mortgage lending hits lowest point since 2001

Gross and net mortgage lending hit their lowest monthly levels since March 2001 in April, as approvals continued to be "weak", the British Bankers' Association (BBA) has said.

Building societies in 'strong shape'

Despite the challenges facing mutuals because of the economic downturn, building societies remain in generally good shape, it has been claimed.

Outstanding debt 'overtakes annual earnings'

For every £1 earned in an annual salary, the average Briton now owes £1.02 in debts, according to new research from Confused.com.

FOS publishes annual disputes report

The Financial Ombudsman Service (FOS) has published its annual report showing it handled a record 127,471 new complaints in the past year.

Report: 11% to be free of mortgage debt within decade

Over one in ten homeowners (11 per cent) will take advantage of current market conditions to pay off their mortgage within the next decade, new research indicates.

Equitable Life policyholders secure high court date

Equitable Life policyholders who saw their pension savings damaged by the company's near-collapse in 2000 have won the right to challenge the government's decision not to award compensation to all those affected.

AIMA to "mobilise" hedge funds over European directive

Hedge fund body the Alternative Investment Management Association (AIMA) has said it plans to "mobilise" the industry through a series of initiatives intended to push for a redraft of the European Commission's proposed Alternative Investment Fund Managers Directive.

European consumer confidence 'weathering recession'

Consumer confidence in the major economies of the eurozone is holding up despite the damaging impact of a recession that the European Commission believes will lift the European Union's (EU) unemployment rate to 10.9 per cent.

38m consumers 'planning to change financial behaviour'

The economic downturn has left consumers so rattled that 38 million have vowed to change their financial behaviour in the future, a survey has found.

Pension commitments 'put UK firms at competitive disadvantage'

The cost of funding defined benefit (DB) pension arrangements is putting British firms at a "competitive disadvantage" to many of their international rivals, a new report has warned.

Service sector 'starting to stabilise'

The UK's service industries remain in "deep recession" but there are signs of improving sentiment and increasing expectations that the sharpest declines in business activity may now be over, the Confederation of British Industry (CBI) has said.

Hang Seng surges to 8-month high

Share prices in Hong Kong hit an eight-month high on Wednesday (May 27th) as US data boosted investors' hopes for a global economic recovery.

US consumer confidence lifts Tokyo shares

Japan's Nikkei 225 share average climbed 1.4 per cent to its highest close for a fortnight on Wednesday (May 27th) with share prices rallying thanks to an unexpected rebound in US consumer confidence.

Wall St gets shot in the arm from consumers

US share prices moved higher in early trading on Tuesday (May 26th) as Wall Street was buoyed by new figures showing American consumer confidence is at its highest level for eight months.

Borrowing complaints 'up by over one-third'

The number of consumer complaints about providers of personal loans and credit cards has increased by over one-third in the past 12 months, figures set to be published tomorrow (May 27th) will reveal.

Market upturn imminent, say fund managers

UK fund managers are confident that an upturn in the stock market is "imminent", according to a new survey from Lloyds TSB Private Banking.

Deflation risk underestimated, warns Threadneedle

The risk of deflation is being underestimated as deleveraging is still feeding through to the real economy, spare capacity is rising and wage bargaining remains "weak", Threadneedle has warned.

Quantitative easing 'needs time to influence lending'

People should not "read too much" into the fact that quantitative easing has apparently failed to boost lending yet as there is bound to be a lag between money going in to the system and an increase in finance levels, an expert has claimed.

OECD output suffers record decline

Economic output among the 30 member states of the Organisation for Economic Cooperation and Development (OECD) fell by a record 2.1 per cent during the first quarter of the year, according to new figures.

UK banks 'dominate retail investment'

Shares in Lloyds Banking Group, Barclays and Royal Bank of Scotland (RBS) continued to dominate trading among retail investors last week, according to the latest figures from Interactive Investor.

HK shares dip in "sluggish" trade

Hong Kong's benchmark Hang Seng Index slipped 0.76 per cent lower on Tuesday (May 26th) after regional tensions hit oil prices and investors retreated from expensive stocks following the market's recent rally.

North Korea tensions hit Nikkei

Share prices slipped 0.4 per cent lower in Tokyo on Tuesday, hit by growing regional tension over North Korea's recent missile tests and selling on the futures markets.

Wall Street lifted by weaker dollar

Investors looked on the bright side of a weaker dollar and jumped into multinationals on Friday (May 22nd), lifting US share prices in early trading.

Brits abroad 'face ?73m exchange fees bill'

British holidaymakers could rack up "unnecessary" foreign exchange charges of £73 million this year, as over half say they are planning to use a credit or debit card while abroad.

Kane to remain in ABI hotseat

Archie Kane will remain as chairman of the Association of British Insurers (ABI) until spring 2010 after the organisation's board unanimously decided to extend his tenure.

Declining inflation 'no guarantee of spending boost'

Falling inflation rates may reduce the cost of living by reining in prices but it is no guarantee that consumer spending will spike in the near future, an economist has warned.

Economic climate 'forcing property sellers to be realistic'

People selling property are being "forced to be realistic" about their prices by the current economic climate, an industry expert has said.

Mortgage lending falls 9%

Gross mortgage lending fell by nine per cent to an estimated £10.4 billion in March, according to new data from the Council of Mortgage Lenders (CML).

Standard Life issues warning over deflation threat

Pensions and insurance specialist Standard Life has written to 25,000 of its customers with inflation-linked annuities warning them that the UK's recent shift into deflation may adversely affect their income.

Household spending in biggest drop since 1980

Household spending plunged at the sharpest rate since 1980 during the first quarter of the year, according to official data from the Office for National Statistics (ONS).

Chancellor 'must come clean' on bank stress tests

Chancellor Alistair Darling, the Treasury and the Financial Services Authority have been urged to publish the results of stress tests carried out on the Royal Bank of Scotland (RBS) and Lloyds Banking Group.

EU directive must not harm auto-enrolment, says ABI

The European Union's (EU) Consumer Rights Directive cannot be amended to outlaw automatic enrolment into pensions as part of a ban on inertia selling, the Association of British Insurers (ABI) has said.

Financial crisis boosts ethical investment

The global economic crisis is fuelling a rise in ethical investment by encouraging individuals to consider not only how much money they make but also how they make it, the Co-operative Investments has claimed.

Arrests in City over suspected ?50m fund management fraud

City of London Police have arrested two men as part of a joint investigation with market regulator the Financial Services Authority (FSA) into a suspected £50 million fund management fraud.

Hang Seng slips to third day of losses

Hong Kong's benchmark Hang Seng Index fell 0.8 per cent on Friday (May 22nd) to mark a third straight day of losses as doubts over the pace of worldwide economic recovery continued to grow.

Strong yen continues to dominate Nikkei

The strengthening of the yen against the US dollar continued to dominate trading on the Nikkei 225 on Friday (May 22nd), with many exporters sliding lower on a day when the currency tipped its highest point against the greenback since mid-March.

Retail sales in bounce 2.6% higher

Retail sales increased by more than expected in April, climbing 2.6 per cent year-on-year, according to the latest figures from the Office for National Statistics (ONS).

Gloomy data dents US shares

A disappointing regional survey from the Federal Reserve, ongoing unemployment problems and increasing doubts over the likelihood of a rapid economic recovery pushed US shares lower on Thursday (May 21st) with the benchmark indices all falling by over 1.5 per cent in early trading.

Survey: 20% of IFA firms losing money

One-fifth of independent financial advisers (IFAs) have lost money over the past 12 months, an industry survey has found.

Borrowers 'need to employ lateral thinking' to land best deal

Consumers looking to secure borrowing may have to employ some "lateral thinking" in order to land the best deal, Defaqto has said.

Consumers 'more focused on cutting debt than saving'

British consumers are now "more concerned" with paying down their existing debts than putting money into savings, an expert has said.

Volte face sees bullish investors jump into shares

A sharp turnaround in investors' outlook for the global economy has seen many ditch their cash holdings and start "putting their money to work" by snapping up shares and moving into emerging markets, a new report has found.

UK downgraded as public borrowing hits record high

Credit rating agency Standard & Poor's (S&P) has downgraded its outlook for the UK economy to "negative" for the first time amid concerns over the country's levels of public debt.

CBI chief attacks Budget's "economic vandalism"

The government has been condemned for "tearing up its manifesto commitment to the country's entrepreneurial class" by introducing a 50 pence rate of income tax for those earning over £150,000 in the Budget.

Secured loans market 'disappearing'

The UK market for secured loans has virtually disappeared, with lenders pulling out as falling house prices leave potential borrowers without sufficient equity in their property to take out the finance, a new report has claimed.

HK shares continue retreat

Hong Kong's Hang Seng Index retreated for a second consecutive day on Thursday (May 21st), slipping 1.58 per cent amid shrinking turnover and increasingly shaky investor confidence.

Nikkei slips as yen hits 2-month high

The Nikkei 225 slipped 0.9 per cent on Thursday (May 21st) after a gloomy economic outlook from the US Federal Reserve pushed the yen to a two-month high against the dollar, hitting exporters and tech stocks.

Pensions tax relief 'must be protected'

Pensions tax relief is essential to supporting savings and the government's decision to restrict the relief on contributions for people earning over £150,000 a year could have a "damaging impact" on the UK, the Association of British Insurers (ABI) has warned.

BoA boosts Wall Street

Bank of America's (BoA) successful share issue lifted US shares on Wednesday (May 20th) morning, as investors became increasingly optimistic about the financial sector's prospects.

Cashless society 'remains a long way off'

Britain is unlikely to become a cashless society for a "very long time" as consumers still feel comfortable using cash, UK payments association Apacs has said.

SVR customers warned over becoming 'profit fodder' for banks

Customers coming off a fixed-rate mortgage this year have been advised to shop around for a standard variable rate (SVR) deal, as some lenders are currently charging rates 120 per cent higher than the Bank of England's base rate.

Lump sum investments 'perform better over long-term'

Investors who have "drip fed" their money into stock markets over recent months have fared "considerably better" than those who invested single lump sums - but the tables could be about to turn, Association of Investment Companies (AIC) has said.

Gold demand rockets among investors

Demand for gold as an investment soared by 248 per cent year-on-year to 596 tonnes during the first quarter of 2009 as investors looked to insulate themselves from economic turbulence and future inflation.

UK government's "aggressive action" contained financial crisis, says IMF

The British government's "bold and wide-ranging" response to the global downturn helped to contain the crisis and averted a complete meltdown of the financial system, the International Monetary Fund (IMF) has reportedly said.

April hedge fund returns top 3%

Hedge fund returns hit 3.04 per cent last month as gross inflows increased and net redemptions tumbled below the previous average, new figures show.

Shell investors lead 'global revolt' against executive pay

Investors at Royal Dutch Shell cranked up a "global" backlash against executive pay yesterday (May 19th) when approximately 60 per cent voted against the company's remuneration plans.

Hang Seng sags on US housing data

Hong Kong's Hang Seng Index retreated from a seven-and-a-half month high on Wednesday (May 20th) after data from the US showing new housing construction at a record low triggered a round of profit-taking.

Recession could end this year, says Henderson New Star

Recession in the UK could end later this year, according to the Henderson New Star indicator from Henderson Global Investors.

Nikkei 'shrugs off' record fall in GDP

The Nikkei 225 closed 0.6 per cent higher on Wednesday (May 20th) as investors shrugged off a record four per cent contraction in Japan's GDP as being broadly in line with expectations, according to reports.

Paulson investment pool tops Hedge Fund 100

The $2.1 billion (£1.3 billion) Paulson Advantage Plus fund has been named the top performer in Barron's annual Hedge Fund 100 list after delivering three-year annualised returns of 62.67 per cent.

US markets left flat by housing data

Wall Street stocks stayed largely flat in early trading on Tuesday (May 19th) after worse-than-expected figures on US housing starts hit dented investors' belief that the recession is easing.

'Real returns' continue to climb for savers

The latest inflation figures from the Office for National Statistics (ONS) indicate that while interest rates continue to fall for savers, "real returns" after basic tax and inflation continue to rise.

Fraudsters change tack to beat recession, Cifas warns

Fraudsters have switched their tactics in the face of the recession, "redirecting their efforts" into new, hi-tech areas of financial crime, Cifas has warned.

Life assurance firms 'delay adoption of reporting rules'

Several UK-based life assurance companies have delayed the adoption of stricter financial reporting rules by up to two years, according to reports.

Standard Life investors hit by statements error

Standard Life has written to 6,800 holders of unit-linked pension policies to apologise after it discovered they had been receiving incorrect statements for the past seven years.

Rates increase marks "worrying trend" for fixed loans

Borrowers looking to take advantage of record low interest rates to lock in a long-term fixed-rate loan are "going to be disappointed" as a number of lenders up their mortgage rates, a new report has claimed.

UKFI 'seeks buyer for bank shares'

UK Financial Investments (UKFI), the body set up to manage the Treasury's stakes in Lloyds Banking Group and Royal Bank of Scotland (RBS), is reportedly sounding out potential investors with a view to selling off stakes in the part-nationalised banks.

Inflation drops to 2.3%

Consumer price index (CPI) inflation fell to 2.3 per cent in April, down from 2.9 per cent the month before, according to the latest figures from the Office for National Statistics (ONS).

Early recovery hopes boost Hang Seng Index

Tentative signs that the global economy could be headed for an earlier-than-expected recovery helped share prices in Hong Kong to close in on a seven-and-a-half month high following a third consecutive day of gains on Tuesday (May 19th).

Nikkei boomerangs into positive territory on weaker yen

Japan's Nikkei 225 share index piled on 2.8 per cent on Tuesday (May 19th), wiping out Monday's losses thanks to a sharp slide in the yen that boosted exporters.

Bargain hunters boost Wall Street

US share prices advanced in early trading, as the markets were "revved up again" by investors looking for bargains following last week's declines.

UK consumers ditch credit for debit

UK consumers have increased their use of debit cards during the first quarter of 2009, while credit card borrowing has declined, according to the UK payments association Apacs.

Property sales 'hit 18-month high'

Sales of properties hit their highest point in April, with the average estate agent selling almost ten homes, according to new figures.

UK consumers 'walking a financial high wire'

UK consumers have not adequately adapted their behaviour to the worst financial crisis in a generation and many are walking a "high wire" with "little or no safety net" should things go wrong.

Savers display "flash of optimism" amid gloom

Savers have shown the first "flash of optimism" regarding current and future savings conditions in the UK since last year, according to a new data from Nationwide.

Radical rethink urged in face of pensions "perfect storm"

Employers need to "radically rethink" their pension provision in order to survive a "perfect storm" of shrinking budgets, lower investment returns and an ageing population, Standard Life has said.

Pension buy-out/buy-in market 'remains buoyant'

Despite "unprecedented economic conditions" the market for pension buy-outs and buy-ins "remained buoyant" during the first quarter of the year, with total deals amounting to £879 million, according to new figures from Hymans Robertson.

Over one-third of UK firms freeze pay in April

Over one-third of companies that agreed pay deals last month imposed wage freezes on their workers as the recession continues to stretch finances, a new report has found.

Lloyds unveils plans for ?4bn cash call

Lloyds Banking Group has announced plans to raise £4 billion from investors so it has the funds to convert the government's 43.4 per cent stake in the bank into ordinary shares, it has been reported.

SFO questions two over Weavering fund collapse

The Serious Fraud Office (SFO) has questioned two people over a suspected fraud linked to the collapse of Weavering Capital's main hedge fund.

Dollar woes sees Nikkei drop 2.4%

Tokyo's Nikkei 225 stock average fell to its lowest close since May 1st on Monday (May 18th) after the US dollar's retreat against the yen hammered exporters' stocks.

US futures wobble on economic outlook

US share futures indicated markets would open lower on Friday (May 15th) after new economic data showed a 2.5 per cent decline in eurozone GDP during the first quarter and Swiss bank UBS cut its rating for global equities.

Repossessions 'rise 50% in a year'

Housing repossessions rose by 50 per cent in the first three months of the year compared to the corresponding period of 2008, new figures show.

Buy-to-let lending declines in Q1

Lending to buy-to-let investors fell by half in the first quarter of the year compared to the first three months of 2008.

Deflation 'remains bigger danger than inflation'

Spare capacity in the economy means that even if there is a strong recovery, inflationary pressures are likely to remain subdued, making deflation the "bigger worry" over the next few years, an economic analyst has claimed.

Recession creating 'epidemic' of middle class debt

The recession is fuelling a rise in the number of middle-income households seeking advice on debt problems, an expert has said.

Bank results support surge in share trading

HSBC's quarterly results saw it join a surge in banking shares this week, with overall purchase of financial stocks up 79 per cent over the week, TD Waterhouse has said.

Toscafund returns to "business as usual"

Toscafund Asset Management, the UK hedge fund specialist hardest hit by the global slide in stock markets, has returned to "business as usual" after thawing the last three funds it was forced to freeze last year.

Eurozone economies shrink by 2.5%

The 16 eurozone economies contracted by 2.5 per cent in the first quarter of the year, according to official figures from the European Union's (EU) statistics agency.

MPs slam oversight of City pay

The Treasury select committee's report on the role of the City's bonus culture in creating the current crisis has criticised the "serious flaws" in the oversight of remuneration policies and called for wide-ranging reform of non-executive oversight, shareholder engagement and banks' relationship with auditors.

Consumer trust in financial services remains robust, says study

Overall consumer trust in the financial services sector remains robust despite the current crisis, according to the Financial Services Research Forum's 2009 Trust Index.

Banks boost HK shares

China's top bank ICBC and its rival China Construction Bank (CCB) boosted Hong Kong's Hang Seng Index on Friday (May 15th) after new figures showed a surge in lending across the sector.

Sony results lift Japanese market

A smaller-than-expected annual loss for consumer electronics giant Sony helped the Nikkei 225 rebound from some of yesterday's (May 14th) losses to finish 1.9 per cent up on Friday.

Tech rally lifts Wall Street

US share prices shook off economic worries to climb higher on Thursday (May 14th) thanks to a rally in technology stocks and a rise for defensive shares.

"Cumbersome" insurance regulation could damage economy, warns BIBA chief

A healthy insurance sector will be critical to the UK's recovery, but heavy-handed regulation of the sector could still put the economy at risk, the head of the British Insurance Brokers' Association (BIBA) has warned.

No deposit, no chance for mortgage borrowers, says report

Consumers looking to secure a mortgage need deposits running to "many thousands of pounds" as high loan-to-value (LTV) ratios remain thin on the ground, moneysupermarket.com has said.

Barratt chief calls for increased lending

Barratt Developments chief executive Mark Clare has urged UK banks to increase their mortgage lending in order to support a sustained recovery in the housing market.

Industry body calls for reform of corporate bond market

A new report from the Investment Management Association (IMA) has called for an overhaul of the sterling corporate bond market to ensure it does not prevent the participation of retail investors.

Government 'will not drop' compulsory annuity purchase rule

The government does not intend to drop or suspend rules that require pensioners to buy an annuity by the age of 75, Lord Bill McKenzie has told a conference on flexible retirement solutions.

Mortgage costs lowest since 2004, says CML

The cost of mortgage interest repayments has fallen to its lowest point since June 2004, according to new figures from the Council of Mortgage Lenders (CML).

Analysts 'too pessimistic' on dividend forecasts

Current levels of dividend forecasts for equity markets are too pessimistic and the signals are that equities remain undervalued, a new report from Standard Life Investments (SLI) has concluded.

European stress test results to be kept secret

The results of stress tests on financial institutions across the European Union (EU) will remain confidential, the Committee of European Banking Supervisors (CEBS) has announced.

Nikkei tumbles 2.6% on US fears

The Nikkei 225 share index tumbled 2.6 per cent on Thursday (May 14th) after weaker than expected figures for US retail sales threw cold water on investor confidence and the stronger yen punished exporters.

Hong Kong shares hit the skids

"Dismal" economic data from the US triggered a sharp 3.04 per cent downturn for the Hang Seng Index on Thursday (May 14th) as investors used disappointing retail data to lock in profits from the recent rally.

Weak retail sales shock Wall Street

US share prices declined in early trading on Wednesday (May 13th) after weaker-than-expected retail sales delivered a jolt to investor confidence and market players hammered the shares of industrial and consumer-geared stocks.

Cash CTFs 'an important safe haven' from turbulent markets

Cash child trust funds (CTFs) provide an important, albeit temporary, safe haven from market turbulence, with the products currently offering investment growth approximately 20 per cent higher than the average stakeholder CTF.

IMA backs short selling disclosure

The disclosure of short selling positions to the market regulator is necessary to ensure it has the correct information to effectively police the markets, but traders should not be required to reveal their short positions to the wider market, the Investment Management Association (IMA) has said.

Visa aims to crack fraud with code-generating credit card

Visa has started trialling a new type of credit card that generates a unique code every time it is used in a bid to beat online, phone and mail order fraud.

ETFs 'outperform global stocks'

Enhanced disclosure requirements should be introduced for significant short positions in all UK stocks, the Financial Services Authority (FSA) has said.

Recession not as bad as 1929, says thinktank

UK GDP fell by 1.5 per cent in the three months to the end of April, compared to a contraction of 1.9 per cent in the first quarter of the year, according to figures published by the National Institute for Economic and Social Research (NIESR).

BoE: The only certainty is uncertainty

The UK's economic recovery is likely to be slower than expected and the prospects for future economic growth remain "unusually uncertain" the Bank of England (BoE) has said in its latest inflation report.

Better regulation could have prevented downturn, say financial workers

Better regulation of financial institutions could have averted the financial and economic crisis from taking hold, according a new survey of financial services workers.