Sterling tumbled to a record low against the euro yesterday and to its weakest level against the dollar for over two years after Alistair Darling's weekend comments about the economy facing its biggest challenge for 60 years, The Guardian reports.
Although Treasury officials stressed that the chancellor was talking about the credit crunch and high oil and food prices facing the world economy more generally, traders sold the pound heavily, pushing it to less than $1.80 at one point and to 81.4p to the euro.
A month ago the pound would buy $2 and a euro could be bought for 78p. Bank of England data show that sterling has fallen almost 5% in the past month against a basket of major currencies, pummelled by a string of weak economic data, suggesting growth had ground to a halt in the second quarter of the year.
THE GOVERNMENT-BACKED Korea Development Bank today ended weeks of speculation and declared that it was in the process of assembling a bidding consortium to negotiate a possible investment in Lehman Brothers.
The announcement, first revealed by Times Online, could see the struggling Wall Street giant taken over by an “all-Korea” consortium that would give managerial control to KDB.
KDB admitted that the talks remained snarled-up over the issue of price, which sources close to the deal say have caused the bid negotiations to hit deadlock several times in the past few weeks.
BRADFORD & BINGLEY, the troubled buy-to-let mortgage specialist, has lost its sales director Mark Stevens, The Telegraph reports.
Mr Stevens, 39, who only joined the board in May last year, resigned yesterday and is expected to leave the bank at the end of September. He will be eligible for six-months pay, £165,000, under the notice period in the terms of his contract.
Analysts speculated that he had decided to quit because the bank, which revealed a £27m first-half loss on Friday, is likely to shrink its £52bn loan book over the coming year - marginalising his role as sales director.IFAonline
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