The FTSE 100 suffered its worst one-day drop in three years on Friday, losing 2.2 per cent to fall by nearly 130 points to 5,912.The decline mirrored falls in the US, Europe and Far East following uncertainty over US interest rates, a weak dollar and concerns over commodity prices. The losses have been exacerbated by UK directors rushing to sell share options and take profits. UK directors have sold 566m of shares over the last three months while buying just 207m. Hargreaves Lansdown head of research Mark Dampier says: “The market has run particularly hard since the start of this year. A 10 per cent correction is not overdue and commodities could come down by up to 25 per cent. A lot of people are sitting on big profits and using this as an excuse to take profits. It is probably good for the market, which needs to calm down a bit.” Dalton Strategic Partnership head of UK equities Glen Pratt believes the market is showing similarities to the dotcom boom of 2000 but he does not expect the fallout to be anywhere near as damaging. He says: “Many people have been investing or speculating in oil and gas without really knowing what they are investing in, like the rush to invest in technology shares in 2000.” “With commodity prices out of tune with the long-term average, I see this as a short-term technical correction.”
William Lam has been appointed to join Invesco Perpetual’s Henley-based Asian equities team.Lam, who joins the team on May 22, will help to selectstocks from Taiwan and Korea across all funds managed by the Asian team.Lam was formerly an analyst at Orbis Investment Advisory, specialising in the global telecoms and technology sectors.
FSA chief executive John Tiner has hinted that it could scrap RU64 in the next two weeks after telling the Treasury select committee many of the dangers that prompted the rules are no longer relevant and new measures are in place to stop misselling.
Bankhall has sold its commercial general insurance arm UKGI to Total Broker Solutions to focus on its core markets of directly regulated mortgage, life, pensions and investment. The agreement brings a reciprocal agreement for TBS to provide Bankhall members with commercial GI services while TBS’s 350 brokers will get compliance support from Bankhall. Head of […]
Bradford & Bingley is returning to a tied model as it rejects its mortgage panel of 18 lenders.The bank will sell only its own brand products and will close down its mortgage broking service as it focuses on buy-to-let, self-cert and lifetime mortgages. It says all pipeline business will be administered by B&B to completion […]
By Fiona Tait, pensions specialist The chancellor’s announcement of proposed cuts to the Money Purchase Annual Allowance means it will be more important than ever to be able to tell your PCLS from your UFPLS What was in the statement? Not much. The chancellor spared three sentences to inform us that the Money Purchase Annual Allowance will be reduced […]
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