Northern Rock's board is set to face shareholder questions today with little clue about its financing options, as it waits to hear what suggestions Goldman Sachs has come up with for the Government, The Independent reports.
The bank and its advisers were largely in the dark about Goldman's proposals yesterday evening. The Government says that Goldman has not delivered the document yet, but others believe it was handed over last week.
Some believe the Government is using the Goldman report as an ace in a "game of poker" with Northern Rock's shareholders, who are resisting a cheap sale of the bank.
THE FALLOUT FROM AMERICA’S mortgage meltdown continued at Citigroup yesterday amid reports that the world’s biggest bank was poised to cut up to 24,000 jobs, that it planned a substantial dividend cut and that the Chinese Government had pulled out of a deal to inject about $2 bn (£1bn), The Times reports.
The job losses, up to 8% of Citigroup’s 300,000 staff, were reported by CNBC, the American television news network.
Citigroup is expected to announce a hefty dividend cut for the fourth quarter, perhaps by as much as half, which would save about $5bn if maintained over a year.
PRICES CHARGED BY MANUFACTURERS are rising at the fastest rate in almost 17 years - in the latest sign that inflation remains a major threat to the British economy, The Telegraph reports.
Factory gate inflation rose to 5% in December, the Office for National Statistics said. The increase raises the likelihood of a future increase in wider inflation, the latest figures for which are released today.
The news nevertheless did not prevent the pound slumping to a new record low against the euro, with financial markets now pricing in two cuts in interest rates to 5% by April. Sterling dropped to a level of 76p against the single European currency - its fourth successive decline. It also hit a new 1½-year low against the yen, but rose slightly against the dollar to $1.9587.
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