Citywire for Financial Professionals

View the article online at

Sunday Papers: Carney’s blitz on credit

And cigarette supply giant Palmer & Harvey sends SOS cash call.

Sunday Papers: Carney’s blitz on credit

Top stories

  • The Sunday Times: The Bank of England is demanding detailed information from high street lenders on how they approve loans after sounding the alarm over the consumer borrowing binge.
  • The Sunday Telegraph: Palmer & Harvey, one of the UK’s biggest cigarette supplier and largest private companies with around 4,000 employees, has stepped up attempts to find new backers amid a looming deadline to repay tens of millions of pounds to some of the world’s biggest tobacco manufacturers.
  • The Sunday Times: HSBC is tipped to launch a $2 billion (£1.5 billion) share buyback tomorrow, in the first phase of a three-year programme to run down its vast cash stockpile.
  • The Observer: The announcement by the Taiwanese giant Foxconn that it will build an LCD-manufacturing facility in Wisconsin worth an estimated $10 billion was met with considerable fanfare but the company doesn’t have a great track record of keeping its job-creation promises.

Business and economics

  • The Sunday Times: Royal Bank of Scotland is expected to face a further £5 billion penalty before the end of the year over its role in the American sub-prime mortgage meltdown.
  • The Sunday Telegraph: Centrica, the owner of British Gas, faces a hit to profits after bowing to political pressure to keep bills down in the face of climbing costs.
  • The Sunday Times: BT has offered to spend up to £600 million on upgrading internet speeds for more than 1m rural homes, as it fends off pressure to break up its empire.
  • The Sunday Telegraph: BP is preparing to retrench further from the North Sea in its battle to drive down costs after a steep fall in profits in recent months.
  • The Sunday Telegraph: Rio Tinto is poised to return more cash to shareholders next week with the miner set to unveil a healthy interim dividend and more money for share buybacks after enjoying rising commodity prices.
  • The Sunday Telegraph: The British arm of investment advisory boutique Perella Weinberg saw profits fall by a third last year after it missed out on some blockbuster deals on this side of the Atlantic.
  • The Sunday Telegraph: InterContinental Exchange, the US financial giant behind Libor, intends to keep the interest rate benchmark open for good despite UK regulators’ plans to bring the system to an end.
  • Mail on Sunday: Profits have plunged at high street retailer Wilko, which is blaming the weaker pound, higher costs and the National Living Wage for the fall.
  • The Sunday Times: Sales of Apple’s iPhone have nosedived in recent months as fans hold off replacing their smartphones before a radically redesigned model is launched later this year.
  • The Sunday Times: Next is set to suffer another fall in sales as the high street chain loses its edge over rivals and consumer confidence softens.
  • The Sunday Times: Prudential is tipped to report a 6% rise in profits to £2.2 billion next week, driven mainly by better returns in the foreign exchange markets and strong growth in its Asian and US businesses.
  • Mail on Sunday: London’s iconic luxury hotel the Savoy saw its losses surge last year, but its directors are hoping the weak pound will help to deliver a bonanza from visiting American tourists this year.
  • The Sunday Times: Profits have risen 50% at toymaker Jellycat after Princess Charlotte was photographed playing with one of its fluffy dogs.
  • The Sunday Times: Chai Patel’s HC-One group is in advanced discussions to buy 150 care homes from the private healthcare giant Bupa.

Share tips, comment and bids

  • The Sunday Telegraph (Questor share tips): Genus: animal geneticist’s risks too great to be a cash cow.
  • The Sunday Telegraph: Senior managers at CH2M, the engineer behind some of Britain’s most high profile infrastructure projects including the HS2 rail line, are poised to bag multimillion-dollar payouts in an imminent takeover by rival Jacobs Engineering.
  • The Sunday Times: JRJ Group, an investment firm founded by three former top executives at Lehman Brothers, may sell the City derivatives broker and spreadbetting firm ETX Capital.
  • The Sunday Telegraph (Comment): Do the drugs work? Pharma faces make or break moment.

2 comments so far. Why not have your say?

Roger Savage

Jul 30, 2017 at 11:58

So Carney and his cronies encourage the continuance of the credit fuelled bubble by irresponsibly keeping rates at emergency levels for years whilst asset bubbles form whilst introducing Funding for Lending to turbocharge debt and price savers out of the market. Then, when the banks have filled their coffers with cheap money (having ditched savers), Term Funding is introduced to continue the provision of cheap credit to households.

Then, when the inevitable happens (and it truly is inevitable given the right to credit some people seem to believe they have), they 'sound the alarm'. Please!!!

Seems incompetent but I'm sure they've done everything they've been bought and paid to do.

Taken at face value though, no different whatsoever to a drug dealer bemoaning the fact that his neighbourhood is full of junkies!

report this

Alan Tonks

Jul 30, 2017 at 12:37

Carney’s blitz on credit do not make me laugh, but it’s certainly no joking matter!!

It’s the Bank of Carney who have deliberately let this happen, they are two faced slimy hypocrites!!

report this

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

The Citywire Guide to Investment Trusts

In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.

Watch Now

Today's articles

Tools from Citywire Money

From the Forums

+ Start a new discussion

Weekly email from The Lolly

Get simple, easy ways to make more from your money. Just enter your email address below

An error occured while subscribing your email. Please try again later.

Thank you for registering for your weekly newsletter from The Lolly.

Keep an eye out for us in your inbox, and please add to your safe senders list so we don't get junked.

Sorry, this link is not
quite ready yet