Amid new forecasts that UK taxpayers could be in line for a £27 billion profit on the eventual disposal of taxpayer stakes in Lloyds Bank and Royal Bank of Scotland, there is a feeling that Gordon Brown may well have been one step ahead of the game when he came up with his innovative idea for UK taxpayers to take stakes in struggling banks.
A number of prominent analysts in the UK have joined forces to suggest that the UK government could eventually make a profit of around £27 billion from the taxpayer-funded bailouts of Lloyds Bank and Royal Bank of Scotland. Even though it could take up to five years to crystallise the forecast profits on the massive investment but if indeed a £27 billion profit is crystallised then surely this would make the banking bailout worthwhile?
The Conservative Party, in an attempt to prove it is whiter than white, has this weekend promised to repay £440,000 of donations from Asil Nadir if the former Polly Peck chief is found guilty of fraud. This comes amid yet more rumours that the fugitive entrepreneur, who returned to the UK to face charges from many years ago, has already done a deal with the UK government which will see him serve no time in prison even if found guilty.
Yesterday's news that the UK's largest care home provider, Southern Cross, has received an indicative non-binding offer from a private company has again put the focus back on companies who depend upon the public sector for business. The share price of Southern Cross has been under pressure for some time since the company highlighted the fact that local authorities are cutting back on their care home spending - although it did bounce 50% yesterday on the approach.
Amidst all the glitz and glamour of the return of former Polly Peck leader Asil Nadir it is easy to forget that he is back to face accusations that he stole £34 million from the company prior to shareholders losing everything. It is unclear exactly why he has returned to the UK although he has been promised he will not spend time in prison prior to his trial, which could be anything up to 2 years away!
The Co-operative Group has today issued half year results which show a 17% rise in profits from £221 million over the corresponding period last year up to £260 million this year. There was a 12.6% increase in profits from its supermarket division even though there were distribution issues with regards to the integration of the Somerfield acquisition. However, it is the company's comments about the immediate future of the UK economy which have caught the eye.
Asil Nadir, the controversial businessman and fugitive tycoon, is today expected to return to the UK to face 66 counts of theft totalling an alleged £34 million in relation to the collapse of his former company Polly Peck. After the company collapsed back in 1993 he fled the country on board a private jet and has since been living in Turkish Cyprus which has no extradition treaty with the UK.
Drinks giant Diageo has today revealed profits of just over £2.2 billion on turnover approaching £10 billion although there are signs that growth in North America and Europe is slowing. This is a company which has many famous brands including Smirnoff, Johnnie Walker, Capt. Morgan and Baileys to name but a few. So what does this show about the North American and European markets?
The Financial Services Authority (FSA) has confirmed a £1.575 million has been handed out to financial investment giant SocGen with claims that 80% of trades carried out by the company were inaccurately reported over a two-year period. A total of 18.8 million trades, between November 2007 and February 2010, were misreported to the FSA although customers and investment markets were not impacted in any way.
Over the last few weeks the financial headlines have been full of doom and gloom with regards to the UK economy but last night saw a couple from Wales step forward with a great idea for a UK business. Alex Lewis and Letitia Valentine stepped into the ominous "Dragon's Den" on BBC one with an idea for a jacket to protect against hypothermia. While the idea was rejected by the majority of the Dragon's, Deborah Meaden stepped in with a £75,000 investment for a 45% interest in the operation.