AN INTEREST RATE cut looks much more likely after the publication yesterday of the latest minutes of...
AN INTEREST RATE cut looks much more likely after the publication yesterday of the latest minutes of the Monetary Policy Committee.
All this morning's papers view the narrow vote in favour of not cutting rates earlier this month as just a delay to the inevitable cut that will have to come in order to give the economy a much needed boost.
THE SPECTRE OF deflation has moved firmly up the agenda with statements overnight by Federal Reserve chairman Alan Greenspan that his troops are carefully studying tactics for dealing with a period of falling prices, the FT says.
Speaking to a Congressional committee, Greenspan all but declared victory in a 20-year battle to control inflation, the paper writes, but appeared less certain about exactly how to tackle deflation of the kind that has crippled Japan's economy for the past decade.
That said, Greenspan was adamant that the Fed "would not run out of monetary amunition" for dealing with such a scenario.
NATIONWIDE HAS reported some good figures, the FT says, following a disastrous 2001, when it abandoned cut-price deals to attract new customers.
Figures show that the mutual last year increased its share of new mortgage lending in the UK to 8.8% from 3.1% the previous year.
And after attracting some 400,000 new current account customers in 2002, the firm claims to be "punching above its weight" in the savings and current account markets.
FALLOUT FROM events of 11 September 2001 continue to reverberate in the insurance and reinsurance sectors, The Daily Telegraph reports.
Lloyds of London has sent a letter to Swiss Re asking why it has been stalling on paying out on claims linked to events that took place that day, the paper says.
At stake is a £290m claim involving Lloyds and five reinsurers that has gone to binding arbitration.
INVESTORS IN Edinburgh Investment Trust are likely to ask hard questions of the fund's manager Fidelity after the company unveiled a 43% fall in net asset value in the year to March, The Scotsman reports.
The country's largest trust focused on UK stocks dumped its previous manager Edinburgh Fund Managers last year claiming poor value for money, but the latest numbers are likely to increase pressure on the board.
Strangely, the company is still increasing the full-year dividend by more than 3%, the cost of which will be met by reserves.
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