London's leading shares rallied on Thursday mirroring overnight gains on Wall Street, sweeping higher on enthusiasm over the brighter global economic outlook, dealers said.
The FTSE 100 index of leading shares gained 1.16 percent at 5,211.18 points.
The day's best performing security was Petrofac which added 59 pence -- or 5.18 percent -- to end on 1,199.
Software firm Arm Holdings was the day's second-best performer, adding 11.2 pence -- or 4.98 percent -- to finish at 267.9.
Gold miner Randgold was the session's biggest faller, losing 155 pence -- or 2.53 percent -- to close at 5,975, followed by minerals company BHP Hilton, which shed 16.5 pence -- or 0.89 percent -- to end at 1,839.5.
Lloyds Banking Group (LBG) was the most traded stock, seeing 334 million shares change hands, followed by oil giant BP, which saw 114 million units switch owners.
Meanwhile, the pound fell against the dollar while it climbed slightly against the euro.
At 17:07, the pound was trading at $1.462, down from $1.465 at the same time on Wednesday, while sterling was valued at 1.199 euros, up from 1.196 over the same period.
Thursday, June 3, 2010
Tuesday, May 25, 2010
'Fat cat' funds give modest income
THE average size of a self-administered pension scheme is less than €500,000, which would give a modest pension in retirement.
These schemes are favoured by company directors self-employed and are sometimes characterised as "fat cat pension funds".
But new research gives the lie to perceptions that large tax-free funds have been accumulated in these self-administered schemes. Research commissioned by a new body, the Association of Pensioner Trustees in Ireland (APTI), shows that the average self-administered fund has just €430,000 accumulated in it.
This would give a weekly pension of just €275, or €14,298 a year, Tiernan Clarke of APTI said.
The research, carried out by actuarial consultants Milliman, found that there were 7,200 self-administered schemes in the country.
Self-administered schemes are an alternative to personal pensions, with the added attraction that those who have one can control how the fund is invested. They are available to employees but generally tend to be put in place by company directors.
Directors who have such a pension arrangement can get their company to make contributions to the fund.
Scrutiny
Self-administered schemes must have a Pensioner trustee who is a Revenue Commissioner appointee overseeing the activity of the funds.
Mr Clarke said the research had shown that they were nothing like as valuable as some commentators maintain.
"Recent comments in the media that have suggested self-administered pension funds are the preserve of 'fat cats' don't stand up to scrutiny.
"Claims that average fund sizes run into millions are simply not correct and the research by Milliman clearly proves this," he added.
A 65-year-old who retires with a fund size of €430,000 today would get a pension of just €14,298 per annum, or €275 a week, Mr Clarke explained.
"I think it is important that the right information gets into the public domain, particularly at this time when pensions are under such a spotlight."
These schemes are favoured by company directors self-employed and are sometimes characterised as "fat cat pension funds".
But new research gives the lie to perceptions that large tax-free funds have been accumulated in these self-administered schemes. Research commissioned by a new body, the Association of Pensioner Trustees in Ireland (APTI), shows that the average self-administered fund has just €430,000 accumulated in it.
This would give a weekly pension of just €275, or €14,298 a year, Tiernan Clarke of APTI said.
The research, carried out by actuarial consultants Milliman, found that there were 7,200 self-administered schemes in the country.
Self-administered schemes are an alternative to personal pensions, with the added attraction that those who have one can control how the fund is invested. They are available to employees but generally tend to be put in place by company directors.
Directors who have such a pension arrangement can get their company to make contributions to the fund.
Scrutiny
Self-administered schemes must have a Pensioner trustee who is a Revenue Commissioner appointee overseeing the activity of the funds.
Mr Clarke said the research had shown that they were nothing like as valuable as some commentators maintain.
"Recent comments in the media that have suggested self-administered pension funds are the preserve of 'fat cats' don't stand up to scrutiny.
"Claims that average fund sizes run into millions are simply not correct and the research by Milliman clearly proves this," he added.
A 65-year-old who retires with a fund size of €430,000 today would get a pension of just €14,298 per annum, or €275 a week, Mr Clarke explained.
"I think it is important that the right information gets into the public domain, particularly at this time when pensions are under such a spotlight."
Monday, April 26, 2010
Low-rate mortgage era has ended
WASHINGTON - The era of record-low mortgage rates is over.
The average rate on a 30-year loan has jumped from about 5 percent to more than 5.3 percent. As mortgages get more expensive, more would-be homeowners are priced out of the market - a threat to the fragile recovery in the housing market.
And if you wanted to refinance at a super-low rate, you may have missed your chance. Mortgages under 4 percent are still available, but only for loans that reset in five or seven years, probably to higher rates.
Rates are going up because of the improving economy and the end of a government push to make mortgages cheaper.
For people putting their homes on the market this spring, rising rates may actually be a good thing. Buyers are racing to complete their purchases and lock in something decent before rates go even higher.
"We are seeing some panic among potential buyers who have not found houses yet," said Craig Strent, co-founder of Apex Home Loans in Bethesda, Md.
It's all about affordability. For every 1 percentage point rise in rates, 300,000 to 400,000 would-be buyers are priced out of the market in a given year, according to the National Association of Realtors.
Good economic news is the first reason rates are rising: U.S. government debt, a safe haven during the recession, is losing its appeal as investors turn to stocks and riskier corporate bonds.
Lower demand for debt means the government has to offer a better interest rate to sell its bonds.
The second reason is the Federal Reserve. The Fed has ended its program to push mortgage rates down by buying up mortgage-backed securities. When demand from the central bank was high, rates plummeted to about 4.7 percent for much of last year. And business boomed for mortgage lenders as homeowners raced to refinance out of adjustable-rate mortgages and into fixed loans.
Many analysts forecast rates will rise as high as 6 percent by early next year. If they go much higher, the already shaky housing recovery could stall. And that could slow the broader economic rebound.
For people who bought their first home in the 1980s, when rates stayed over 10 percent for several years, paying 6 percent for a home loan may seem like a steal. But it's come as a shock to many first-time home buyers this spring.
The average rate on a 30-year loan has jumped from about 5 percent to more than 5.3 percent. As mortgages get more expensive, more would-be homeowners are priced out of the market - a threat to the fragile recovery in the housing market.
And if you wanted to refinance at a super-low rate, you may have missed your chance. Mortgages under 4 percent are still available, but only for loans that reset in five or seven years, probably to higher rates.
Rates are going up because of the improving economy and the end of a government push to make mortgages cheaper.
For people putting their homes on the market this spring, rising rates may actually be a good thing. Buyers are racing to complete their purchases and lock in something decent before rates go even higher.
"We are seeing some panic among potential buyers who have not found houses yet," said Craig Strent, co-founder of Apex Home Loans in Bethesda, Md.
It's all about affordability. For every 1 percentage point rise in rates, 300,000 to 400,000 would-be buyers are priced out of the market in a given year, according to the National Association of Realtors.
Good economic news is the first reason rates are rising: U.S. government debt, a safe haven during the recession, is losing its appeal as investors turn to stocks and riskier corporate bonds.
Lower demand for debt means the government has to offer a better interest rate to sell its bonds.
The second reason is the Federal Reserve. The Fed has ended its program to push mortgage rates down by buying up mortgage-backed securities. When demand from the central bank was high, rates plummeted to about 4.7 percent for much of last year. And business boomed for mortgage lenders as homeowners raced to refinance out of adjustable-rate mortgages and into fixed loans.
Many analysts forecast rates will rise as high as 6 percent by early next year. If they go much higher, the already shaky housing recovery could stall. And that could slow the broader economic rebound.
For people who bought their first home in the 1980s, when rates stayed over 10 percent for several years, paying 6 percent for a home loan may seem like a steal. But it's come as a shock to many first-time home buyers this spring.
Tuesday, March 30, 2010
Friday, March 19, 2010
Unemployment in new fall - 18/03/2010
The level of unemployment in the UK fell by 0.1 per cent in the three months to January, official figures have revealed.
During this period, the number of people out of work fell by 33,000 to 2.45 million, the first quarterly drop seen since the three months to May 2008, the Office for National Statistics noted.
It also stated that the tally of people claiming jobseekers' allowance dipped by 32,300 between January and February 2010.
However, the number in employment also fell, down 0.3 per cent in the three months to January.
This could mean some people are leaving work and engaging in other activities such as education or training rather than becoming unemployed.
Fears that unemployment may yet rise again this year - something that may be caused by public spending cuts - is encouraging saving, Bank of England Monetary Policy Committee member Charles Bean remarked in a speech this week.
He suggested that a willingness of employees to show restraint over pay demands has helped to preserve jobs.
During this period, the number of people out of work fell by 33,000 to 2.45 million, the first quarterly drop seen since the three months to May 2008, the Office for National Statistics noted.
It also stated that the tally of people claiming jobseekers' allowance dipped by 32,300 between January and February 2010.
However, the number in employment also fell, down 0.3 per cent in the three months to January.
This could mean some people are leaving work and engaging in other activities such as education or training rather than becoming unemployed.
Fears that unemployment may yet rise again this year - something that may be caused by public spending cuts - is encouraging saving, Bank of England Monetary Policy Committee member Charles Bean remarked in a speech this week.
He suggested that a willingness of employees to show restraint over pay demands has helped to preserve jobs.
Thursday, March 11, 2010
Five Tips for Managing Change at Work
Change is the only constant in the workplace. In recent years, workers at all levels have felt the impact of change -- from massive job layoffs to budget cuts to new management. For those who remain employed, managing change at work has become part of everyone's job description.
Getty Images
--------------------------------------------------------------------------------
Yet a recent survey conducted by Right Management, a career management consulting firm, shows that 31 percent of employees are not able to adapt to changes at work.
Failing to adapt can leave employees more vulnerable to layoffs than ever.
Below, experts address common worker concerns about how to manage change at work.
Q: "I'm paranoid that I'll get a pink slip. How do I avoid sabotaging my own career?"
Watching your former co-workers walk out the door can leave you feeling paranoid about your own job security. Fear can lead to low productivity and reduced enthusiasm for your job. Since you ultimately don't have complete control over your job, don't let the fear of downsizing stop you from doing the best job you can, says Caitlin Friedman, co-author of "The Girl's Guide to the Big Bold Moves For Career Success: How to Build Confidence, Conquer Fear, Manage Up, Navigate Change and Much, Much More."
"Maintain a high level of work at your current job, and grow and nurture a vibrant network outside of it," she says. "If you make these activities a priority, then you are protecting your reputation and you are massaging relationships that might come in handy should you get laid off down the road."
Q: "My new boss' management style isn't a good fit with my work style. How do I adapt?"
A new boss can certainly bring a lot of cultural changes to your workplace, as well as a new set of responsibilities for your job in particular. Cheryl Palmer, career coach at Call to Career, advises workers to allow some exploratory time with a new manager.
RELATED LINKS
Current DateTime: 01:19:08 11 Mar 2010
LinksList Documentid: 35693268
How a Financial Adviser Can Help Your RetirementGo Green With Your ElectronicsLate Career Job Search
"Take the time to get to know your new boss to develop a good working relationship with him or her. Clearly defining expectations is the first step in developing that relationship. If you know what your boss expects of you, you can be happier and more productive at work," says Palmer.
Q: "How can I stay competitive in this tough job market?"
"In the past 18 months, employees received a loud and clear answer to a nagging question: Yes, Virginia, you are expendable," says Barbara Poole, founder and CEO of Employaid, an online community for workers and employers.
Getty Images
--------------------------------------------------------------------------------
Yet a recent survey conducted by Right Management, a career management consulting firm, shows that 31 percent of employees are not able to adapt to changes at work.
Failing to adapt can leave employees more vulnerable to layoffs than ever.
Below, experts address common worker concerns about how to manage change at work.
Q: "I'm paranoid that I'll get a pink slip. How do I avoid sabotaging my own career?"
Watching your former co-workers walk out the door can leave you feeling paranoid about your own job security. Fear can lead to low productivity and reduced enthusiasm for your job. Since you ultimately don't have complete control over your job, don't let the fear of downsizing stop you from doing the best job you can, says Caitlin Friedman, co-author of "The Girl's Guide to the Big Bold Moves For Career Success: How to Build Confidence, Conquer Fear, Manage Up, Navigate Change and Much, Much More."
"Maintain a high level of work at your current job, and grow and nurture a vibrant network outside of it," she says. "If you make these activities a priority, then you are protecting your reputation and you are massaging relationships that might come in handy should you get laid off down the road."
Q: "My new boss' management style isn't a good fit with my work style. How do I adapt?"
A new boss can certainly bring a lot of cultural changes to your workplace, as well as a new set of responsibilities for your job in particular. Cheryl Palmer, career coach at Call to Career, advises workers to allow some exploratory time with a new manager.
RELATED LINKS
Current DateTime: 01:19:08 11 Mar 2010
LinksList Documentid: 35693268
How a Financial Adviser Can Help Your RetirementGo Green With Your ElectronicsLate Career Job Search
"Take the time to get to know your new boss to develop a good working relationship with him or her. Clearly defining expectations is the first step in developing that relationship. If you know what your boss expects of you, you can be happier and more productive at work," says Palmer.
Q: "How can I stay competitive in this tough job market?"
"In the past 18 months, employees received a loud and clear answer to a nagging question: Yes, Virginia, you are expendable," says Barbara Poole, founder and CEO of Employaid, an online community for workers and employers.
Wednesday, January 13, 2010
Goldman exec says firm gained from trading against clients
Thomas Mazarakis, who heads Goldman's fundamental strategies group, told select clients in an email that his unit often provided investment ideas that the firm had already traded on and the firm sometimes took the opposite approach, betting against particular instruments recommended by the group, the Times said.
"We may trade, and may have existing positions, based on trading ideas before we have discussed those trading ideas with you," the paper quoted Mazarakis as writing in the email.
The paper quoted Goldman spokesman Lucas van Praag as saying in a statement the company has been "providing this disclosure, which we think is best practice, for a number of years and there is nothing new in the disclosure you were sent."
A Goldman Sachs spokesman in Hong Kong could not be immediately reached for comment by Reuters.
(Reporting by Ajay Kamalakaran in Bangalore; Editing by Anshuman Daga)
"We may trade, and may have existing positions, based on trading ideas before we have discussed those trading ideas with you," the paper quoted Mazarakis as writing in the email.
The paper quoted Goldman spokesman Lucas van Praag as saying in a statement the company has been "providing this disclosure, which we think is best practice, for a number of years and there is nothing new in the disclosure you were sent."
A Goldman Sachs spokesman in Hong Kong could not be immediately reached for comment by Reuters.
(Reporting by Ajay Kamalakaran in Bangalore; Editing by Anshuman Daga)
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