Risky lending should not have state insurance

first_img Show Comments ▼ Share whatsapp by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastNoteabley25 Funny Notes Written By StrangersNoteableyMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comautooverload.comDeclassified Vietnam War Photos The Public Wasn’t Meant To Seeautooverload.com The Vickers Commission issues paper floats a number of options for structural reform of the banking sector. As expected, one such option is a strict division between retail and investment banks, and another is an even more radical switch to “narrow” or “limited purpose” banking, in which fractional reserve banking is simply ended.What problem are these proposals attempting to address? No politician wants to be Argentine President Fernando De la Rua, forced to flee by helicopter from the roof of the presidential palace to escape a baying mob after the collapse of the banking system left depositors unable to access their funds. When banks come under pressure, the natural political tendency will be for politicians to bail them out, sparing bondholders. Even if banks are allowed to go under, depositors are typically provided with state insurance.Since bank deposits are thus implicitly or explicitly insured by the state, what the bank does with those deposits is of virtually no concern to the depositors themselves, and (insofar as regulation allows it) the banks can therefore use deposits to take large risks. If all turns out well, the bankers and shareholders receive high returns. If matters turn out badly, then the state bails out the bondholders and depositors.The retail/investment split is intended to limit this gaming of government insurance. But it doesn’t really address the problem, because banks can still make commercial loans to businesses or personal loans to households, both of which are risky. A retail/investment split would thus encourage banks to make really risky business or personal loans at high interest rates. The basic problem isn’t solved, but in the meantime we destroy an industry in which Britain is strong internationally — universal banking.“Narrow banking” and “limited purpose banking” do address the problem, but go too far. With “narrow banks”, for example, deposit-taking banks would have to back any deposits 100 per cent with government bonds, ending “fractional reserve” banking. But fractional reserve banking has been the main form of banking in the UK for about two hundred years, and has become enormously sophisticated and successful. Furthermore, it is economically efficient to use fractional reserves.Many commentators suggest that we should do neither of these things, but instead just rely upon high capital and liquidity ratios to stop banks ever going bust and hence the issue of bailouts ever arising. But company failure is an essential part of a healthy capitalist economy. If there is no risk of failure, there is not enough risk.There is a combination of solutions that addresses the real problem without destroying our banking system. The most important component of these is a change to the structure of deposit-taking, whereby every bank licensed to accept retail deposits must offer a “storage deposit” account that is 100 per cent backed by government bonds. These accounts would be legally insulated from the rest of the bank, akin to the nesting of an old-fashioned savings bank (like the “trustee savings banks”) inside every fractional reserve bank. Storage deposits would be insured by the government without limit.In addition, banks could offer “investment deposit” accounts — standard fractional reserve deposits that the bank could use to invest in commercial loans, equities, derivatives, or whatever else its business model employed. Investment deposits would be completely uninsured by the state — and depositors would be warned before moving monies out of storage and into investment deposits that they could lose their money — but would be subject to standard prudential regulations on capital and liquidity. Some banks would attract investment deposits by being boring and safe; others by being risky and offering higher interest rates. This structural reform addresses the core of the issue, removing state insurance from risky lending, and yet leaves universal banking (and fractional reserve banking in general) intact. I think that’s the way to go.Andrew Lilico is the Chief Economist of Policy Exchange, and the author of “What Killed Capitalism” and “Incentivising Boring Banking”. Sunday 26 September 2010 10:06 pm KCS-content Risky lending should not have state insurance whatsapp Tags: NULLlast_img read more

Investors want clarity on tax and regulation

first_img Show Comments ▼ KCS-content by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comTaonga: The Island FarmThe Most Relaxing Farm Game of 2021. No InstallTaonga: The Island FarmDefinitionDesi Arnaz Kept This Hidden Throughout The Filming of ‘I Love Lucy’Definitionthedelite.comNetflix Cancellations And Renewals: The Full List For 2021thedelite.com AHEAD of this week’s Comprehensive Spending Review, the City of London has published a report looking into the predictability and competitiveness of the UK tax regime and how this impacts upon the financial services industry. The City understands and fully supports the government’s commitment to cutting the fiscal deficit. However, whilst increasing taxes and cutting spending will raise vital funds in the short-term, such measures do not provide long term answers.The only way to generate a strong, sustainable and diverse economic recovery is to ensure UK plc is globally competitive and to provide the requisite support for our leading industries.This report – produced on behalf of the International Regulatory Strategy Group (an organisation that helps shape international regulation, led by the City of London in partnership with TheCityUK) – shows that the uncertainty of interpretation and the unpredictability of the UK tax regime is having a significant impact on perceptions of those who make the decisions as to where to base new, or expand existing, operations. We have reached a tipping point. Some financial firms have already left, citing recent tax increases as the overwhelming factor in their decision. Many others are simply planning to put their best people, those generating the business, elsewhere.Although the scale of overall tax burden is obviously a key consideration, the top priority must be to restore the perception of predictability and certainty that has for so long underpinned the UK tax regime.After all, there are many centres with lower taxes than Switzerland. There are however few places with a more predictable tax regime; and here-in lies the major attraction.The government has said it wants to put in place a competitive tax regime – we all support that aim. But we must also create a perception that the UK wants business to be based here and to flourish here. We need a change in the political rhetoric from one of a negative attitude to high earning individuals to a focus on the wealth created and the taxes paid to our Treasury.If we are to achieve our shared objectives of delivering fiscal balance whilst also helping to create new jobs across the country we need a joined up approach that sends out the right message to those who would like to invest in the UK but are deterred by the unpredictability of the tax and regulatory regime. The government has sent a positive message with regards to Corporation tax we also need similar messaging on other aspects of our tax regime.Of course given the fiscal background nobody expects immediate action but setting out a direction of travel and providing guarantees on predictability will certainly help our competitive offering with regards to international firms as well as UK-based firms based who are growing their international business.Stuart Fraser is Policy Chairman at the City of London Corporation. whatsapp whatsappcenter_img Share Sunday 17 October 2010 10:44 pm More From Our Partners Astounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgMark Eaton, former NBA All-Star, dead at 64nypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.org980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.com Investors want clarity on tax and regulation Tags: NULLlast_img read more

US backs the UK military as details of cuts emerge

first_img US backs the UK military as details of cuts emerge by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastNoteabley25 Funny Notes Written By StrangersNoteableyMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comMagellan TimesThis Is Why The Roy Rogers Museum Has Been Closed For GoodMagellan Times KCS-content Share whatsapp Show Comments ▼ THE CUTS to the defence budget announced on Tuesday were fleshed out yesterday, as the US government gave its support to the UK’s military. The Ministry of Defence’s budget will be cut to £33.5bn a year in 2104–15, but will rise slightly in 2011. Day-to-day and capital spending will be cut by a cumulative 7.5 per cent in real terms.The recommendations of the Trident value for money review are expected to reduce spending by £750m over five years, and some £3.2bn over the next 10 years. The ministry will also make a 25 per cent cut in civilian and military non-frontline organisations by 2015. The Pentagon’s press secretary Geoff Morrell said in a statement yesterday: “We are confident that the UK will continue to have the capacity to provide top-tier fighting forces in Afghanistan and other future missions in defence of our shared interests and security.” center_img whatsapp Read This NextThe Truth About Bottled Water – Get the Facts on Drinking Bottled WaterGayotRicky Schroder Calls Foo Fighters’ Dave Grohl ‘Ignorant Punk’ forThe WrapCNN’s Brian Stelter Draws Criticism for Asking Jen Psaki: ‘What Does theThe WrapDid Donald Trump Wear His Pants Backwards? Kriss Kross Memes Have AlreadyThe WrapHarvey Weinstein to Be Extradited to California to Face Sexual AssaultThe WrapPink Floyd’s Roger Waters Denies Zuckerberg’s Request to Use Song in Ad:The Wrap’The View’: Meghan McCain Calls VP Kamala Harris a ‘Moron’ for BorderThe WrapNewsmax Rejected Matt Gaetz When Congressman ‘Reached Out’ for a JobThe Wrap2 HFPA Members Resign Citing a Culture of ‘Corruption and Verbal Abuse’The Wrap Tags: NULL Wednesday 20 October 2010 8:23 pmlast_img read more

Investec posts stronger profit

first_img Investec posts stronger profit Thursday 18 November 2010 4:35 am South African bank Investec posted stronger first-half profit – helped by growth in asset management and showing that its move away from plain lending continues to pay off.The asset manager and investment bank, which is also listed in London, said operating profit totalled £228.15m in the six months to end-September, up 5.6 per cent, compared with £215.9m a year earlier.The bank said in September it expected a “marginally higher” operating profit, citing sluggish demand for credit and a slow recovery in bad debts.The bank said the regulatory environment remained challenging, but activity levels were starting to improve. by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastMoneyPailShe Was The Dream Girl In The 90s, This Is Her NowMoneyPailSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesZen HeraldNASA’s Voyager 2 Has Entered Deep Space – And It Brought Scientists To Their KneesZen HeraldWanderoamIdentical Twins Marry Identical Twins – But Then The Doctor Says, “STOP”WanderoamMagellan TimesThis Is Why The Roy Rogers Museum Has Been Closed For GoodMagellan TimesElite HeraldExperts Discover Girl Born From Two Different SpeciesElite HeraldHealthyGem”My 600-lb Life” Star Dropped 420 Pounds, See Her NowHealthyGem Read This NextRicky Schroder Calls Foo Fighters’ Dave Grohl ‘Ignorant Punk’ forThe WrapCNN’s Brian Stelter Draws Criticism for Asking Jen Psaki: ‘What Does theThe WrapDid Donald Trump Wear His Pants Backwards? Kriss Kross Memes Have AlreadyThe WrapHarvey Weinstein to Be Extradited to California to Face Sexual AssaultThe WrapPink Floyd’s Roger Waters Denies Zuckerberg’s Request to Use Song in Ad:The Wrap’The View’: Meghan McCain Calls VP Kamala Harris a ‘Moron’ for BorderThe Wrap’Sex and the City’ Sequel Series at HBO Max Adds 4 More ReturningThe WrapNewsmax Rejected Matt Gaetz When Congressman ‘Reached Out’ for a JobThe Wrap2 HFPA Members Resign Citing a Culture of ‘Corruption and Verbal Abuse’The Wrap Show Comments ▼ Sharecenter_img whatsapp whatsapp John Dunne Tags: NULLlast_img read more

HAYWARD: THIS YEAR’S HIGHEST PROFILE CEO

first_img whatsapp KCS-content Share More From Our Partners Brave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.com Monday 6 December 2010 8:45 pm CAUSE for former BP boss Tony Hayward to take comfort from the old adage, “all news is good news” – if he can. Data from media analysis firm Sweet & Maxwell reveals that he was the most high profile FTSE 100 chief executive in the last year.The beleaguered Hayward, who was banished from BP to Siberia in July, was mentioned in 1,931 pieces of press coverage between September 2009 and September this year – and it wasn’t to compliment his choice of tie. To put that in perspective, Hayward’s numbers compare to an average mention count of just 151 for his FTSE 100 peers.But who else can claim the lucky accolade of such fame? British Airways’ Willie Walsh comes in second at 1,560 after spending much of the year locked in trade disputes with the Unite union. In at third place is outgoing Marks and Spencer boss Sir Stuart Rose with 1,223 pieces of coverage. And Rose was no doubt happier with his placing than famously media-shy Royal Bank of Scotland boss Stephen Hester, whom he beat by one place. Hester bagged runner-up position last year to Sir Fred Goodwin, but this year, he dropped to fourth with only 1,082 pieces of coverage. But if Stephen is missing the limelight there’s an easy solution: crack out his old hunting coat and tails outfit, the subject of a much-reprinted photo.MOULTON GROUNDEDAside from depressed high street retailers, there was another victim of the past week’s weather shenanigans: Better Capital chairman Jon Moulton. Having planned a quick trip up to Edinburgh yesterday to check up on an investment and give a talk at the Edinburgh Chamber of Commerce, he found himself facing airport closures. Particularly unfortunate given the intriguing title of his speech, to tackle the topic of government: “Cuts, Scratches and Wounds”. The coalition had better beware. ALL IN THE FAMILYThe Capitalist has learned that, like his one-time political master Lord Mandelson, loyal Labour servant Dan Corry will shortly be back in business, taking up a position in the New Year with the consultancy firm FTI. Corry, who spent the last three years working on policy and economics in Downing Street and whose former bosses include ex-Cabinet ministers Stephen Byers, Margaret Beckett and Ruth Kelly, will be working lower down the hierarchy than former government economist Vicky Pryce (also the estranged wife of environment secretary Chris Huhne). But surely politicos are used to catching up on their time in government over the next office’s water cooler? It’s a small world, after all.HIGH FIDELITYAnother reason to hire more women. Research firm Equiniti says its research shows that women are more loyal to their employers than men. The research found that 83 per cent of women asked would call themselves either somewhat or very loyal to their workplace versus 72 per cent for men. And, contrary to expectations, those below aged 30 are just as loyal as their older peers: one in four fit into the somewhat or very loyal category, the same proportion as for over-60s.As for how to tackle those disloyal middle-aged men, you could try an employee share plan programme – letting them buy shares at a discount. But the figures show that share plans actually work better with women: loyalty improves by threefold more among women offered shares than among men. It seems female stock is rising. whatsapp Show Comments ▼ HAYWARD: THIS YEAR’S HIGHEST PROFILE CEO Tags: NULLlast_img read more

Renault says spy scandal put assets at risk

first_img Renault says spy scandal put assets at risk Thursday 6 January 2011 11:43 am Show Comments ▼ whatsapp Share THE SCANDAL over suspected industrial espionage at Renault has deepened as the French carmaker warned company assets were at risk and France’s industry minister called the matter serious.Renault suspended three executives on Monday, including a member of its management committee, after an “ethical alert” was sent to the group’s compliance committee in August.Renault’s general counsel and compliance officer has said the matter concerned people in “extremely strategic” positions.“This investigation, which lasted several months, enabled us to identify a body of converging evidence demonstrating that three group employees have committed misconduct that infringes Renault’s ethics, consciously and deliberately endangering the company’s assets,” the officer said.Sources said yesterday that the company is worried its flagship electric vehicle programme, in which Renault with its partner Nissan is investing €4bn (£3.4bn), might be threatened.Renault’s new strategic plan, due to be unveiled in February, is expected to focus strongly on electric vehicles, as well as synergies with Nissan and emerging market growth.French Industry Minister Eric Besson told RTL radio the matter was serious. “It illustrates once again the risks our companies face in terms of industrial espionage and economic intelligence, as we call it today,” Besson said.The French government owns a 15 per cent stake in Renault. whatsappcenter_img alison.lock by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBeElite HeraldExperts Discover Girl Born From Two Different SpeciesElite Heraldmoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comZen HeraldThe Truth About Why ’40s Actor John Wayne Didn’t Serve In WWII Has Come To LightZen Herald Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofThe Truth About Bottled Water – Get the Facts on Drinking Bottled WaterGayotBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofChicken Bao: Delicious Recipes Worth CookingFamily ProofCheese Crostini: Delicious Recipes Worth CookingFamily Proof Tags: NULLlast_img read more

Matahari Putra abandons $1bn sale, seeks partner

first_img INDONESIA’S Matahari Putra Prima said it will retain its hypermarket business as a wholly owned entity, effectively scrapping a $1bn (£645m) sale plan, but will look for a global partner to expand the business.The decision to retain the unit comes after two rounds of bidding for Matahari’s hypermart business, Indonesia’s second largest, which sources had said was aimed at raising $1bn.The deal had generated interest from South Korea’s Lotte Shopping, French retailer Casino Guichard Perrachon, and Wal-Mart, the world’s largest retailer.“One of the main reasons for Matahari to drop the sale is that the bidding price was lower than they expected,” said Ikhsan Binarto, an analyst at Indopremier Securities in Jakarta. “But the statement could also be an effort by the Lippo Group to get a better price by playing hard to get,” he added. Show Comments ▼ Monday 10 January 2011 7:28 pm whatsapp More From Our Partners Native American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgKiller drone ‘hunted down a human target’ without being told tonypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comMatt Gaetz swindled by ‘malicious actors’ in $155K boat sale boondogglenypost.comInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.comMark Eaton, former NBA All-Star, dead at 64nypost.comUK teen died on school trip after teachers allegedly refused her pleasnypost.comI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comPuffer fish snaps a selfie with lucky divernypost.comFlorida woman allegedly crashes children’s birthday party, rapes teennypost.com980-foot skyscraper sways in China, prompting panic and evacuationsnypost.com‘Neighbor from hell’ faces new charges after scaring off home buyersnypost.com KCS-content center_img whatsapp by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBeAlphaCute30 Rules That All “Hells Angels” Have To FollowAlphaCuteDefinitionDesi Arnaz Kept This Hidden Throughout The Filming of ‘I Love Lucy’DefinitionTaonga: The Island FarmThe Most Relaxing Farm Game of 2021. No InstallTaonga: The Island Farmthedelite.comNetflix Cancellations And Renewals: The Full List For 2021thedelite.com Share Matahari Putra abandons $1bn sale, seeks partner Tags: NULLlast_img read more

Fed’s Lockhart stands by QE2

first_imgMonday 10 January 2011 7:40 pm Fed’s Lockhart stands by QE2 Show Comments ▼ whatsapp Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofThe Truth About Bottled Water – Get the Facts on Drinking Bottled WaterGayotBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofChicken Bao: Delicious Recipes Worth CookingFamily ProofCheese Crostini: Delicious Recipes Worth CookingFamily Proof The American economy’s recovery was partly attributed to the Federal Reserve’s controversial second phase of quantitative easing (QE2) by a top Fed official yesterday. “I won’t claim that all those developments have been the direct result of the monetary policy actions, but I definitely believe policy has contributed to accumulating momentum and a better outlook,” said dovish Dennis Lockhart. KCS-content Tags: NULL whatsapp Sharelast_img read more

Pearson expands further into Indian education

first_img Show Comments ▼ Publishing group Pearson showed its commitment to emerging markets yesterday by taking a further 59 per cent stake in Indian education firm TutorVista for $127m (£80m).India’s education sector, worth a staggering $86bn, is seeing fresh interest from foreign firms and large funds which are pumping money into services, technology and infrastructure.John Makinson, chairman of Pearson India, said: “India, China and Brazil are the focus now. We are spending hundreds of millions of dollars in these markets.“The acquisition gives us a platform to develop school learning in India.”Pearson, which had acquired a 17.2 per cent stake in TutorVista in 2009, will now own 76.2 per cent of the online firm. It plans to increase the holding to 80 per cent by February.The British educational technology provider, which also owns Penguin Books and the Financial Times, expects the deal to add to adjusted earnings per share in 2012.Its move from a pure book publisher to the leading educational technology provider has enabled the company to gain market share in North America and helped improve results.The Indian firm, which is currently valued at $211m, has raised $38m in venture funding in the last four years.Blended growth rate in Indian education services firms is seen at 21 per cent over the next 12 months, according to estimates, outstripping the 18 per cent growth forecast in the information technology sector. More From Our Partners Astounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgKamala Harris keeps list of reporters who don’t ‘understand’ her: reportnypost.comRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.comMark Eaton, former NBA All-Star, dead at 64nypost.comBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comKiller drone ‘hunted down a human target’ without being told tonypost.comUK teen died on school trip after teachers allegedly refused her pleasnypost.comBill Gates reportedly hoped Jeffrey Epstein would help him win a Nobelnypost.comMatt Gaetz swindled by ‘malicious actors’ in $155K boat sale boondogglenypost.comI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.com980-foot skyscraper sways in China, prompting panic and evacuationsnypost.com whatsapp Pearson expands further into Indian education Share by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBeAlphaCute30 Rules That All “Hells Angels” Have To FollowAlphaCuteDefinitionDesi Arnaz Kept This Hidden Throughout The Filming of ‘I Love Lucy’DefinitionTaonga: The Island FarmThe Most Relaxing Farm Game of 2021. No InstallTaonga: The Island Farmthedelite.comNetflix Cancellations And Renewals: The Full List For 2021thedelite.comcenter_img Tags: NULL KCS-content whatsapp Tuesday 18 January 2011 7:16 pmlast_img read more

Data corrections to deficit figures offer hope for Osborne

whatsapp KCS-content DOWNWARD revisions to government deficit figures for November, and a fall in the deficit for December, will reassure chancellor George Osborne that he is on course to hit his targets for the financial year.Government borrowing dropped to £16.8bn in December, it was revealed yesterday, considerably below the forecasts of economists who expected a figure closer to £20bn.And public sector net borrowing (PSNB) for November was revised down by £2.2bn, to £21.1bn.“If current trends are replicated over the whole fiscal year the deficit would come in around £146bn, meaning that chancellor Osborne would modestly undershoot his target of £149bn,” said Howard Archer of IHS Global Insight.The figures suggested that government finances might be gradually coming under control; December’s PSNB was down by £4.2bn against the same time in 2009.Excluding financial interventions, the deficit for the financial year up to December is £118.4bn, down from £126.8bn in the final year of the Labour administration.However, government borrowing levels are “still hefty,” Archer said. In November the Office for Budget Responsibility (OBR) slightly reduced its forecast for the year’s deficit to £148.5bn, on the back of improved economic data.“This should at least provide the Treasury with a crumb of comfort on a very difficult day,” commented Nida Ali of the Ernst and Young Item club. “November’s surge in government spending appears to have been a one-off,” she said.Government revenues were boosted by a year on year increase in VAT receipts of nearly nine per cent. Even allowing for the VAT rise, this “suggests greater consumer activity in December than other sources have reported,” Ali added.Yesterday also marked the first time that the government’s investment in banking groups RBS and Lloyds TSB were included in the data. by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStorySerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBeautooverload.comDeclassified Vietnam War Photos The Public Wasn’t Meant To Seeautooverload.comElite HeraldExperts Discover Girl Born From Two Different SpeciesElite HeraldDrivepedia20 Of The Most Underrated Vintage CarsDrivepedia Data corrections to deficit figures offer hope for Osborne Sharecenter_img Show Comments ▼ Tags: NULL Tuesday 25 January 2011 9:28 pm whatsapp More From Our Partners A ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgUK teen died on school trip after teachers allegedly refused her pleasnypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.org read more