2nd August 2013
1) Is this a case of good bank, bad bank? Lloyds came roaring back into half year profits of £2.1bn and is talking to the regulator about restoring its dividend – a move hailed by Jupiter fund manager Steve Davies who said the bank was on the last stage of the journey to normality. But Barclays is raising around £6bn from shareholders and has an eye-watering £12bn capital gap. Shaun Richards crunched the numbers on Mindful Money. Robert Peston did likewise on the BBC. Broker the Share Centre has put its buy recommendation under review.
2) Bonds funds saw record redemptions of £624 million in June according to the Investment Management Association the trade body which collects the statistics while financial journalist Tony Levene considers the implications for Mindful Money readers.
3) The National Institute of Economic and Social Research forecasts the global economy to grow at 3.1 per cent this year, and by 3.6 per cent in 2014. The UK is predicted to grow at 1.2% this year and 1.8 next year an upgrade of 0.3% on both figures.
4) The Bank of England held interest rates at 0.5% but the big decision on whether it will implement forward guidance comes next week as the Belfast Telegraph reports.
5) Finally are these central banks at war? A Federal Reserve economist Robert Hertzel attacks the European Central Bank in a paper for its not launching its own version of quantitative easing as trade website Investment Week reports.