The FT reports on a survey from actuary Lane Clark & Peacock, which says a combined £28bn gap opened...
The FT reports on a survey from actuary Lane Clark & Peacock, which says a combined £28bn gap opened up in the pensions accounts of FTSE companies last month.
The deficit is due to the sharp fall in the value of shares that underpin many company pension funds.
LC&P's survey in fact only reported on the 58 companies it says have reported pensions accounts under FRS 17 rules, which means the hole could be even bigger than that already identified.
The hole is also getting bigger: in May it was identified in a similar survey as being worth £5bn.
Merrill Lynch Investment Managers, MLIM, has settled a case with supermarket chain Sainsbury relating to the management of a pension fund, the FT says.
This is another marker in the road back to stable client relationships following the extremely public spat between MLIM and Unilever, which many thought would lead to claims from other MLIM clients.
The Times says that the deal was important because groups such as Astrazenica, the Co-op and Surrey County Council have also been considering suing - Co-op switched £500m to another fund manger earlier this year.
Terms of the settlement between MLIM and Sainsbury are unknown as they settled out of court.
It is being called the biggest shakeup to company tax law for 40 years, and today the treasury is expected to unveil further details of proposals to shift from a capital gains regime to an income regime for taxing company accounts rather than gains made from asset disposals.
The FT quotes the CBI saying that the measures proposed tackle issues not raised for 100 years.
While some accountants are already predicting savings of millions of pounds for businesses if the proposals are adopted, the Association of Chartered Certified Accountants is predicting a windfall in the opposite direction: it says tax revenues would increase.
The Times says yesterday's news on the UK manufacturing slump means interest rates will remain low until the end of the year, although the booming housing market is likely to keep the Bank of England from lowering rates.
The difficulty in picking apart the 5.3% drop in manufacturing output during June is determining how much of that was caused by the Golden Jubilee and World Cup celebrations, and how much was due to ongoing decline.
The Scotsman says the figures are firm evidence, if needed, that the UK is on track for a slowdown that could lead to recession.
"This key measure does not fall 5.3 per cent in a month to its lowest level for 23 years because of a Jubilee bank holiday or the World Cup. Equally, slowing retail sales cannot be written off as some short term dip, or soaring bankruptcies as a summer shower," it says.
And irrespective of housing prices, interest rate cuts must be put forward as a solution to stop a downward spiral in demand that could turn into deflation.
Cutting rates now will be more than offset next year when higher NI contributions kick in, cutting into company income and personal disposable income.
A double-dip recession will upend chancellor Gordon Brown's spending plans the paper warns.
The Telegraph today warns that people with unit-linked whole-of-life assurance are in trouble because falling share prices mean they will either see premiums rise or cover fall.
Such policies typically involve putting part of the premiums into life assurance with the rest going into a trust fund that puts the accumulated funds out of reach of the Inland Revenue when the client dies.
As people live longer and the returns from investments decrease, the result is likely to be higher premiums.
HL and Liberty SIPP slowest
Lifetime and annual allowances
'IFAs bore the brunt'
'Recovery or boom'