Wednesday , December 12 2018
Home / Tag Archives: Europe – UK

Tag Archives: Europe – UK

France Chases London’s Gold Market Amid Soft-Brexit Hopes

In the feverish reshuffling of financial services for a post-Brexit world, London still comes out ahead, but less so. By Don Quijones, Spain, UK, & Mexico, editor at WOLF STREET. As two years of Brexit negotiations finally come to a head and all eyes are on British Prime Minister Theresa May’s frantic efforts to get the draft deal passed, France is making a big move on the City of London’s gold market. As Reuters reported Monday, the Bank of France has partnered with mega-bank JP...

Read More »

Is the UK’s “Next Carillion” About to Fall?

The company with 70,000 employees is “circling the drain.” By Don Quijones, Spain, UK, & Mexico, editor at WOLF STREET. When UK construction giant Carillion collapsed in January, it shook the foundations of Britain’s outsourcing industry to its core, casting a harsh light on the high-growth, thinning-margin, poor cash-flow, high-debt business model that has come to dominate the sector. It was the country’s biggest corporate bankruptcy in years. But now another outsourcing firm may...

Read More »

As Regulatory Fog Thickens, Pre-Brexit Angst Takes Toll

City of London Just Lost a $240-Billion-a-day Financial Market. By Don Quijones, Spain, UK, & Mexico, editor at WOLF STREET. The City of London was just dealt its biggest Brexit-related blow following an announcement by American financial markets operator CME Group that it is shifting its European market for short-term financing, the largest in the EU, out of London to Amsterdam. Worried about the dense fog of regulatory uncertainty hanging over London’s future, the firm wants to...

Read More »

“Posh Ghost Towers”: Gloom Spreads Over London Housing Market as High End Freezes Up

But new high-end towers will continue to flood the market. By Don Quijones, Spain, UK, & Mexico, editor at WOLF STREET. After decades of mind-boggling growth, home prices in metropolitan London, according to official numbers, started to fall this year, if barely. Between March and September, they slid 2.3%. But it’s a lot worse in the most expensive parts of the city: Prices in central London have already dropped 15% since 2014, according to James Hyman, head of the residential...

Read More »

“Concerned” Bank of England Raises Alarm about Growth of High-Risk Loans

The power of Collateralized  Loan Obligations. By Don Quijones, Spain, UK, & Mexico, editor at WOLF STREET. “The global leveraged loan market is larger than – and growing as quickly as – the US subprime mortgage market was in 2006,” said the Bank of England’s Financial Policy Committee in the statement from its latest meeting. And the committee is “concerned by the rapid growth of leveraged lending.” In terms of magnitude, the US and EU “leveraged loan” market combined now exceeds...

Read More »

Multiple Online Banking Systems Go Down in the UK

Payment chaos: For bottom-line-obsessed bank executives, IT systems are an expense to be slashed. The results are in. By Don Quijones, Spain, UK, & Mexico, editor at WOLF STREET. Internet banking has become a crisis-prone business in the UK, as the online platforms of big banks suffer regular outages and other forms of IT disruption. Friday morning, the online systems of the Royal Bank of Scotland, Ulster Bank and Natwest — all part of the RBS Banking Group — crashed in unison,...

Read More »

Disorderly Brexit Would Trigger Mayhem in Derivatives Market

Time is running out. March 29 is the deadline. Urgent action is needed. But it’s not happening. By Don Quijones, Spain, UK, & Mexico, editor at WOLF STREET. With less than six-and-a-half months to go before the UK’s deadline to leave the EU expires, progress is still lacking in the Brexit negotiations, in particular on crunch issues such as the Irish border and the equivalency of financial services. As the doomsday clock ticks down,  jitters are rising on both sides of the English...

Read More »

Collapse of Outsourcing Giant Carillion May Have Silver Lining

“Cash retentions” by large companies come under attack in the UK. By Don Quijones, Spain, UK, & Mexico, editor at WOLF STREET. The bankruptcy of UK outsourcing behemoth Carillion in January has left in its wake a trail of financial destruction and mayhem, but it may end up having a positive legacy. More than 200 British MPs (out of a total of 650) have backed a campaign to crack down on construction firms which, like Carillion, routinely pay their suppliers late to spruce up their...

Read More »

Credit-Cardholders & Bank Customers Burned Again as New IT Chaos Breaks Out in the UK

The payments industry deplores it, but cash is starting to look pretty good, and central banks agree: “We do not foresee a totally cashless society”: ECB By Don Quijones, Spain, UK, & Mexico, editor at WOLF STREET. This has not been a good year for IT systems in the UK. First there was TSB Bank’s botched IT migration in April, which resulted in millions of customers being blocked from their online accounts. The problems at the bank continue to fester even to this day, 22 weeks...

Read More »

Why Are So Few Customers Leaving a Bank that Trampled on Them?

Despite months of IT mayhem and all kinds of problems, customers cling to TSB Bank in the UK. By Don Quijones, Spain, UK, & Mexico, editor at WOLF STREET. After months of self-inflicted IT chaos at mid-sized UK lender TSB, caused by botched data migration to a new IT system in April, things were supposed to have returned to some semblance of normality by now. But new problems keep cropping up. And once again, customers are feeling the brunt of the financial pain and inconvenience....

Read More »