|Greggs plc leaves pasty tax behind with Olympic boost|
|Wednesday, 08 August 2012 08:46|
News round up: Greggs, Heineken, Standard Chartered, Global recovery, Single market, Bank of England.
Greggs plc (LON:GRG) puts bad weather and pasty tax behind it with London stores getting an Olympic sales boost of 10%. The Newcastle baker said like-for-like sales at its London stores jumped 10% in the first week of the games with its branch in the Westfield shopping centre – next to the Olympic Park in Stratford – reporting record takings.
Heineken's $6bn bid for Asia Pacific Breweries (APB) faces a challenge from a group linked to Thai billionaire Charoen Sirivadhanabhakdi, which could force the Dutch brewer to pay more to control the maker of Tiger beer. The world's third biggest brewer has to decide whether to raise its bid or risk losing control of one of Asia's fastest growing brewers to the family of Thailand's second richest man.
The sizes of Standard Chartered’s alleged sanctions problems could be $250bn or $14m depending on how the US law is ultimately interpreted by federal regulators and Federal Bureau of Investigation agents pursuing the inquiry into the bank. At issue is an exemption to US sanctions law that prohibits banks acting in the US from doing business with specific nations, including Iran.
The first green shoots have begun to emerge in money supply data from across the world, raising hopes of a tentative global recovery by later this year. Data collected by Simon Ward at Henderson Global Investors show that a key gauge of global money – six-month real M1 – has picked up at last after a drastic slowdown over the early spring. The combined growth rate for the G7 economies and E7 emerging powers levelled out at 1.6 per cent in May and rebounded at 2.5 per cent in June, though China and India are still contracting.
Europe’s single market for financial services is fragmenting as regulators put pressure on banks to retreat behind their national borders amid mounting fears of a euro break-up, officials and analysts have warned. Analysis from Goldman Sachs yesterday showed the degree to which banks across Europe have reined in crossborder lending, leading to a deep decline in flows of credit from Northern Europe to the South. The trend is being driven in part by national supervisors, which are pushing local banks to build up capital and liquidity at the expense of other EU countries, The Times reports.
Bank of England
The Bank of England is expected to slash UK growth forecasts to close to zero from the 0.8% predicted in May when it releases its quarterly inflation report later today. The central bank will also downgrade inflation forecasts amid a weak economy in a double-dip recession that has been hit by the Eurozone crisis and slowing domestic demand. Presenting his last report in May, he said the UK would not be "unscathed" by the Eurozone "storm".
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