Manchester United may be in contention for another Premier League title, but its success on the pitch has worked little magic in the City. The club’s first bond issue, launched barely two weeks ago, has become one of the market’s worst performers this year.
While the club has secured the £500m ($798m) funding that it needs to refinance its bank debt, the paper losses suffered by investors could affect its ability to return to bond markets according to the Financial Times.
The bid price of United's £250m of sterling-denominated bonds has dipped to 93% of face value. Full story...
Investment banks have been told bonuses must comply with the regulatory guidelines - or they face having their licences to operate in Britain revoked.In issuing the ultimatum, the FSA told bank bosses 60% of all pay must be deferred, with no exceptions, The Telegraph reports.
Many of the global players have appealed to the regulator against the plans, in particular about pre-existing employment contracts guarantying bonuses over a year or more.
But according to an employee at one of the banks: "The message came back that while the FSA agreed that it does not have jurisdiction over contractual law, it does have jurisdiction over issuing bank licences in London, and that we should go away and unwind the contracts." Full story...
More than £5bn was wiped off the value of BP yesterday after fourth-quarter profits undershot City forecasts and chief executive Tony Hayward delivered a sombre assessment of the year ahead, the Daily Mail reports.
While replacement cost earnings jumped by 33% to £2.18bn, the experts had predicted a much stronger performance.
A below-par contribution from BP's vast refining operations was to blame for the miss, analysts said, though there was also a hint of profit-taking to the share price fall. Full story...
