PRESS DIGEST – British business – Dec 17

The Times

BANK FEARS BOND STAMPEDE AS INFLATION WORRIES GROW

The Bank of England warned on Thursday of the risk of a bond
market rout as ferocious as the 1994 crisis, while members of
the public and bond traders displayed growing concern about
inflation.

SCOTTISH EQUITABLE FINED AMID SAVER LOSSES

The British arm of Dutch insurer Aegon (AEGN.AS: ), Scottish
Equitable, will have to foot a 60 million pounds compensation
bill after a string of serious systems and control failures led
hundreds of thousands of policyholders to suffer losses.

The Daily Telegraph

EUROPEAN CENTRAL BANK ARMS ITSELF FOR SPANISH CRISIS

The European Central Bank is to double its capital base to
cope with credit risk stemming from the euro zone debt crisis,
paving the way for direct action to shore up the Spanish debt
market if necessary.

BANKS FACING EXTRA 80 BLN STG BAD DEBT CHARGE

Britain’s largest lenders, including HSBC (HSBA.L: ) and
Barclays (BARC.L: ), are facing losses on loans to consumers of up
to 80 billion pounds over their own forecasts, the Bank of
England warned.

The Guardian

HUHNE PROMISES “SEISMIC SHIFT” TO GREENER POWER

Low-carbon technologies such as renewable energy will be the
“dominant” form of generation by 2030 under government plans for
the largest shake-up of the UK energy sector since the
privatisation of the 1980s.

BANK OF ENGLAND TELLS BANKERS TO CUT BONUSES

The Bank of England sent a clear message to banks to cut
staff bonuses and share dividends so that they can bolster their
capital cushions while maintaining lending to businesses and
households.

The Independent

YOUNG’S PUBS BUYS GERONIMO

The husband and wife team behind the Builders Arms in
Chelsea and the White Horse in the City secured a Christmas
windfall on Thursday by selling their business to the Young & Co
(YNGa.L: ) pubs and brewery group for 60 million pounds.

(Summary compiled by Reuters)

PRESS DIGEST – British business – Dec 17