BNP Paribas bankers share €500m bonus pool

Message from fivefilters.org: If you can, please donate to the full-text RSS service so we can continue developing it.

BNP Paribas will pay its 4,000 bankers €500 million (£434.7 million) in
bonuses after France’s biggest lender beat profit forecasts during the
fourth quarter.

Staff in London and Paris will , on average, earn a €125,000 bonus for 2009,
less than under the €1 billion bonus pool proposed last year by BNP Paribas
which was forced to halve compensation following pressure from French
President Nicolas Sarkozy.

Read more

HSBC bids farewell to dollar supremacy

“The dollar looks awfully like sterling after the First World War,”
said David Bloom, the bank‘s currency chief.

“The whole picture of risk-reward for emerging market currencies has
changed. It is not so much that they have risen to our standards, it is that
we have fallen to theirs. It used to be that sovereign risk was mainly an
emerging market issue but the events of the last year have shown that this
is no longer the case. Look at the UK – debt is racing up to 100pc of GDP,”
he said

Crucially, China and rising Asia have reached the point where they can no
longer keep holding down their currencies to boost exports because this is
causing mayhem to their own economies, stoking asset bubbles. Asia’s “mercantilist
mindset” of recent decades is about to be broken by the spectre of an
inflation spiral.

Read more

Thomas Cook owner needs aid

The German majority owner of travel firm Thomas Cook has warned it could go into administration within weeks until it gets emergency loans from Berlin.

However, there are increasing signs from both the German government and the European Commission that state aid will not be forthcoming for Arcandor.

Read more

Faith banking

By Robin Brant
Malaysia correspondent, BBC News, Kuala Lumpur

Experts in Islamic finance believe their way of doing business has shielded them from the global credit crisis.

But how does it differ from conventional Western finance

Read more

Ratings agencies admit mistakes

Credit rating agencies have admitted errors were made when assessing some of the financial instruments that have been blamed for the credit crunch.

Representatives of the three main agencies - Standard & Poor’s, Fitch, Moodys - were grilled by MPs on the Treasury Select Committee. Read more

Shop till you prop up the economy, Taiwan residents told

Shoppers in Taiwan will be handed more than $100 (£67) in redeemable vouchers in a government bid to beat the global credit crisis.

They will be valid in shops, restaurants and supermarkets in 2009. Read more

Barclays’ Gulf cash move attacked

Barclays’ plans to raise up to £7.3bn from the Middle East have been attacked by a key advisory group, the BBC has learned.

The criticism comes in a report by RREV, a body that recommends the UK’s institutional investors, such as the large pension funds. Read more

D Day for the Bank of England

At midday today the BoE monetary committee will decide on UK interest rates.

Bookmakers are banking on at least a half a percentage point drop whilst some are calling for a full point or more. Anything less than a half a percentage point drop will disappoint the already turbulant city and could send shares tumbelling even further down.

James Dale of the financial advice site said “The monetary committee has to reduce rates, and this is in contrast to the impact anything short of a serious drop would have on the city, the fact remains that UK rates are way higher than that of the Euro zone and completely immesurable against the US. During this global credit crisis , the UK must seek to attain the sorts of interest rates seen elsewhere in the leading world economies otherwise our recession will be deeper and longer lasting than other leading economies and could have a bearing on the UK standing in the world over the next 20 years.

Read more

ING bank accepts €10bn Dutch cash injection

ING, the Dutch savings bank which has more than a million savers in the UK, is to get a €10bn capital injection from the Netherlands authorities, the latest bank to be affected by the global credit crisis.

ING is the Netherlands’ largest listed bank, with 85m customers worldwide, and is one of the world’s top 20 financial institutions. It operates under its own name in this country, and recently took control of 180,000 accounts from failed Icelandic banks Kaupthing Singer & Friedlander and Heritable Bank.

Read more

UK Economy Contracts Toward Recession

The National Institute For Economic and Social Reasearch has said that the U.K. economy is contracting for the first time in a decade and will enter recession this year, it was reported today.

UK GDP dropped 0.2 percent between June and August and fell 0.1 percent in the three months to July. The European Commission has predicted that the U.K. economy will shrink further in the third and fourth quarters qualifying the UK as being in a state of official recession.

If it happens, a recession would be the first in the UK since 1991 and comes as house prices plummet and financial services reel from the global credit squeeze that has already cost more than $500 billion in writedowns and losses. Wary of inflation (due mainly to the price of fuel and food) the Bank of England has frozen interest rates since April. If inflation turns downward, its reported “highly likely” that the Bank of England will cut interest rates almost immediately.

Read more