Investing in stocks and shares individual savings accounts has rocketed since the allowance for the over-50s was increased a year ago.
Inflows into the ISAs have averaged more than £400 million a month since last October and half of investors say they would put more money away if ISA allowances were raised further.
The figures from the Investment Management Association show a renewed enthusiasm for investing in stocks and shares ISAs from people of all ages and lifestyles.
The ISA allowance was raised from £7,200 to £10,200 last year for the over-50s and in October, ISA net sales were the highest since their launch in 1999. Since October, sales have averaged £400 million each month, more than double the amount before the increase.
The ISA allowance rose to £10,200 in April this year for the under-50s and results from that month were the highest since 2001.
IMA research shows that one in three investors would invest more in long-term savings if incentives remained consistent and 44% said they would invest more if there was a lifetime tax-free allowance on Isas. Many people also said they would prefer greater flexibility to move money in and out of pensions savings.
Richard Saunders, chief executive of the IMA, comments: "Our research shows people are positive about incentives to save and the IMA figures back this up with ISA sales at the highest level for many years. There is a good chance that 2010 could be the best year ever for Isas."
It is unclear whether the Isa allowance will feature in the government's spending review on 20 October, and whether it will be reduced or frozen to help save the Treasury money. The allowance is currently set to increase in line with inflation each year, from next year.
Adrian Lowcock, senior investment adviser at Bestinvest, says if the government did cut the Isa tax incentives, it would be taking "more than a few steps backwards".
Thursday, October 14, 2010
Monday, July 19, 2010
Cash-rich investors boost London market
Contrary to recent reports of a glut of property forcing house prices down, the central London market paints a very different picture.
Andrew Ellinas, director of Sandfords, comments, "Transaction levels are up 25% on last year with prices standing firm as the supply of good quality homes remains limited. Buyer enquiries have also seen a 20% increase compared to last summer for property in prime pockets of Regent's Park and Marylebone, despite stock levels staying consistent. This increased competition is responsible for supporting sale prices of properties accurately marketed.
"With London now set to become the home of the new European banking watchdog, confirming the City's status as the hub of the global financial markets and attracting more financial sector workers and investment, we are likely to see increased competition for good quality homes. This will push up prices for central London property, further differentiating London from the wider UK market."
Andrew Ellinas, director of Sandfords, comments, "Transaction levels are up 25% on last year with prices standing firm as the supply of good quality homes remains limited. Buyer enquiries have also seen a 20% increase compared to last summer for property in prime pockets of Regent's Park and Marylebone, despite stock levels staying consistent. This increased competition is responsible for supporting sale prices of properties accurately marketed.
"With London now set to become the home of the new European banking watchdog, confirming the City's status as the hub of the global financial markets and attracting more financial sector workers and investment, we are likely to see increased competition for good quality homes. This will push up prices for central London property, further differentiating London from the wider UK market."
Wednesday, June 23, 2010
Nasdaq launches two sharia indexes
Nasdaq has created two sharia-compliant indexes, based on the Nasdaq 100 Index and the OMX Stockholm Benchmark Index.
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The indexes are a response to growing demand for a wider range of Islamic investments by investors and are the first in an intended family of indexes aimed those who want an Islamic investment portfolio, says Nasdaq.
The indexes are weighted by market capitalisation and track the securities in the underlying benchmark indexes, and meet sharia requirements as specified by the Accounting and Auditing Organisation for Islamic Financial Institutions adopted by Nasdaq OMX with the guidance of sharia advisor BMB Islamic UK.
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The indexes are a response to growing demand for a wider range of Islamic investments by investors and are the first in an intended family of indexes aimed those who want an Islamic investment portfolio, says Nasdaq.
The indexes are weighted by market capitalisation and track the securities in the underlying benchmark indexes, and meet sharia requirements as specified by the Accounting and Auditing Organisation for Islamic Financial Institutions adopted by Nasdaq OMX with the guidance of sharia advisor BMB Islamic UK.
Thursday, June 3, 2010
Profits at Low and Bonar better than hoped
Things are improving faster than expected at Low & Bonar, the performance materials groups focused on technical textiles, with like for like sales in the second quarter ahead of last year in all segments.
The company said that the transport, leisure and carpet manufacturing markets had put in especially strong performances.
"The improvement in sales referred to in the Interim Management Statement on 8 April has been maintained consistently throughout the second quarter," the company said. The company's second quarter runs through to end-May.
As a result, at current exchange rates, the group anticipates that the full year trading performance will be ahead of its previous expectations.
The company said that the transport, leisure and carpet manufacturing markets had put in especially strong performances.
"The improvement in sales referred to in the Interim Management Statement on 8 April has been maintained consistently throughout the second quarter," the company said. The company's second quarter runs through to end-May.
As a result, at current exchange rates, the group anticipates that the full year trading performance will be ahead of its previous expectations.
Tuesday, May 25, 2010
Credit Card Rules Cut Bank Fees by $5 Billion
New credit card and overdraft restrictions will save U.S. consumers from being charged at least $5 billion in fees this year alone at the largest U.S. retail banks and credit card companies, a USA TODAY analysis reveals.
The analysis -- based on institutions' own estimates -- comes during a year when new rules are kicking in to address unfair credit card rate increases and steep bank overdraft fees. It highlights the sizable dent these rules will have on an industry blamed for pushing consumers deeper into distress during the recession.
In recent years, banks made it easier for consumers to overdraw their bank accounts and raised credit card fees and rates. As consumer outcry swelled in the recession, Congress passed a credit card law and the Federal Reserve issued a regulation to crack down on banks' aggressive overdraft policies on debit cards.
Lawmakers hope the restrictions will mean much-needed savings for consumers, boosting spending and the economy. Indeed, new data show the measures are their "own little stimulus for the economy, keeping billions in the pockets of consumers rather than in profits gained from deceptive practices," says Rep. Carolyn Maloney, D-N.Y., co-author of card reform signed into law last year.
USA TODAY's analysis relies on institutions' projections of what they will give up under the new rules, gathering data from the 10 largest retail depository institutions and the 10 largest holders of credit card receivables, as tracked by SNL Financial.
Of the 10 institutions with the largest amount of credit card receivables, seven gave estimates about the credit card law's impact. In all, the issuers -- Citigroup, Bank of America, JPMorgan Chase, Wells Fargo, U.S. Bancorp, HSBC North America and Barclays Group US -- will forgo at least $2.5 billion to $3.1 billion in fees just in 2010. Also, seven of the top 10 depositary institutions expect to take a combined $2.4 to $2.6 billion hit under the new overdraft rules and banks' voluntary policy changes.
R.K. Hammer Investment Bankers predicts that institutions will give up at least $9.9 billion in revenue a year due to the credit card law. Moebs Services estimates that the industry's overdraft revenue will shrink by $1.9 billion, to $35.2 billion this year. While some institutions are moving away from overdraft coverage, others are boosting fee income with new programs, Moebs says.
Scott Talbott, a senior vice president at the Financial Services Roundtable, warns that the total cost of the credit card and overdraft regulations will be even higher than bank estimates, which "don't take into account the loss of services and credit that would be available."
The analysis -- based on institutions' own estimates -- comes during a year when new rules are kicking in to address unfair credit card rate increases and steep bank overdraft fees. It highlights the sizable dent these rules will have on an industry blamed for pushing consumers deeper into distress during the recession.
In recent years, banks made it easier for consumers to overdraw their bank accounts and raised credit card fees and rates. As consumer outcry swelled in the recession, Congress passed a credit card law and the Federal Reserve issued a regulation to crack down on banks' aggressive overdraft policies on debit cards.
Lawmakers hope the restrictions will mean much-needed savings for consumers, boosting spending and the economy. Indeed, new data show the measures are their "own little stimulus for the economy, keeping billions in the pockets of consumers rather than in profits gained from deceptive practices," says Rep. Carolyn Maloney, D-N.Y., co-author of card reform signed into law last year.
USA TODAY's analysis relies on institutions' projections of what they will give up under the new rules, gathering data from the 10 largest retail depository institutions and the 10 largest holders of credit card receivables, as tracked by SNL Financial.
Of the 10 institutions with the largest amount of credit card receivables, seven gave estimates about the credit card law's impact. In all, the issuers -- Citigroup, Bank of America, JPMorgan Chase, Wells Fargo, U.S. Bancorp, HSBC North America and Barclays Group US -- will forgo at least $2.5 billion to $3.1 billion in fees just in 2010. Also, seven of the top 10 depositary institutions expect to take a combined $2.4 to $2.6 billion hit under the new overdraft rules and banks' voluntary policy changes.
R.K. Hammer Investment Bankers predicts that institutions will give up at least $9.9 billion in revenue a year due to the credit card law. Moebs Services estimates that the industry's overdraft revenue will shrink by $1.9 billion, to $35.2 billion this year. While some institutions are moving away from overdraft coverage, others are boosting fee income with new programs, Moebs says.
Scott Talbott, a senior vice president at the Financial Services Roundtable, warns that the total cost of the credit card and overdraft regulations will be even higher than bank estimates, which "don't take into account the loss of services and credit that would be available."
Monday, April 26, 2010
HSBC launches fix-track split mortgage
The loan is aimed at borrowers who are unsure whether to keep the flexibility of a tracker or benefit from the security of a fixed-rate.
From April 26, customers will be able to choose to fix 25, 50 or 75 per cent of their loan, with the remaining percentage on a lifetime tracker, at the same rate as the fixed proportion. The interest rate will depend on the proportion of the loan that is fixed and the loan-to-value.
.There is a £999 booking fee and customers can borrow up to £500,000.
HSBC head of mortgages Martjin van der Heijden says: “It is impossible to predict exactly when interest rates will start to rise and borrowers are facing the potentially costly dilemma of whether they should fix or take advantage of the historically low rates with a variable mortgage. Our consumer research shows many households on trackers or standard variable rates feel they should lock in some of the benefit of the low base rate but are not sure how or when.”
From April 26, customers will be able to choose to fix 25, 50 or 75 per cent of their loan, with the remaining percentage on a lifetime tracker, at the same rate as the fixed proportion. The interest rate will depend on the proportion of the loan that is fixed and the loan-to-value.
.There is a £999 booking fee and customers can borrow up to £500,000.
HSBC head of mortgages Martjin van der Heijden says: “It is impossible to predict exactly when interest rates will start to rise and borrowers are facing the potentially costly dilemma of whether they should fix or take advantage of the historically low rates with a variable mortgage. Our consumer research shows many households on trackers or standard variable rates feel they should lock in some of the benefit of the low base rate but are not sure how or when.”
Tuesday, March 30, 2010
Friday, March 19, 2010
Asian stock markets gain after US economic reports
Most Asian stock markets turned higher Friday as modestly positive reports about the U.S. economy underpinned optimism about the global recovery.
Markets fluctuated earlier in the day before trading largely green. Oil prices slipped below $82 a barrel, and the dollar gained against the yen and weakened against the euro.
Helping confidence were U.S. data released overnight showing inflation remains in check and manufacturing is growing, adding to the broader impression of recovery in the world's largest economy, a major export for Asian countries.
Still, the advance was constrained by worries about Greece's debt crisis. This week has brought new signs European indecision and discord were hampering a quicker resolution to the country's fiscal crisis. Amid the uncertainty, Greece said it could be forced to turn to the International Monetary Fund for aid if European leaders can't agree on a bailout plan next week.
In Japan, the Nikkei 225 stock average reversed early losses to climb 80.69 points, or 0.8 percent, to 10,824.72. South Korea's Kospi was up 0.7 percent at 1,681.15 and Hong Kong's market rose 0.1 percent to 21,352.24.
Elsewhere, Shanghai's market added 0.4 percent, Australia's index ticked 0.2 percent higher and Taiwan's market rose 0.2 percent.
In currencies, the dollar gained to 90.43 yen from 90.35 yen. The euro was higher at $1.3614 from $1.3603.
Oi prices were lower in Asia, the benchmark contract shedding 33 cents to $81.87 a barrel. The contract lost 73 cents overnight.
U.S. market futures were up slightly, pointing to a stronger opening on Friday.
Overnight on Wall Street, U.S. markets pushed to another higher finish.
The Dow rose 45.50, or 0.4 percent, to 10,779.17. That marks the highest close since Oct. 1, 2008. The Dow last rose for eight straight days in the period ended Aug. 27.
The broader Standard & Poor's 500 index slipped 0.38, or less than 0.1 percent, to 1,165.83.
Markets fluctuated earlier in the day before trading largely green. Oil prices slipped below $82 a barrel, and the dollar gained against the yen and weakened against the euro.
Helping confidence were U.S. data released overnight showing inflation remains in check and manufacturing is growing, adding to the broader impression of recovery in the world's largest economy, a major export for Asian countries.
Still, the advance was constrained by worries about Greece's debt crisis. This week has brought new signs European indecision and discord were hampering a quicker resolution to the country's fiscal crisis. Amid the uncertainty, Greece said it could be forced to turn to the International Monetary Fund for aid if European leaders can't agree on a bailout plan next week.
In Japan, the Nikkei 225 stock average reversed early losses to climb 80.69 points, or 0.8 percent, to 10,824.72. South Korea's Kospi was up 0.7 percent at 1,681.15 and Hong Kong's market rose 0.1 percent to 21,352.24.
Elsewhere, Shanghai's market added 0.4 percent, Australia's index ticked 0.2 percent higher and Taiwan's market rose 0.2 percent.
In currencies, the dollar gained to 90.43 yen from 90.35 yen. The euro was higher at $1.3614 from $1.3603.
Oi prices were lower in Asia, the benchmark contract shedding 33 cents to $81.87 a barrel. The contract lost 73 cents overnight.
U.S. market futures were up slightly, pointing to a stronger opening on Friday.
Overnight on Wall Street, U.S. markets pushed to another higher finish.
The Dow rose 45.50, or 0.4 percent, to 10,779.17. That marks the highest close since Oct. 1, 2008. The Dow last rose for eight straight days in the period ended Aug. 27.
The broader Standard & Poor's 500 index slipped 0.38, or less than 0.1 percent, to 1,165.83.
Thursday, March 11, 2010
Five Tips for the New Credit Card Era
Consumers will face new realities under the provisions of the Credit Card Accountability, Responsibility and Disclosure, or CARD, Act, which was signed into law May 22, 2009. Two provisions went into effect that August, while most will take hold Feb. 22, 2010. A final phase rolls out next August.
iStock
Credit Cards
--------------------------------------------------------------------------------
Here are a few tips for navigating key loopholes and protections in the new law.
1. Beware the advance notification exceptions.On Aug. 20, 2009, a provision that required 45 days' advance notification of "significant" terms changes took effect. It applies to fees and finance charges, as well as some rate increases. Loopholes in the law leave consumers unprotected in some situations.
For instance, the law doesn't require 45 days' advance notification for credit limit decreases. Consumers must keep abreast of their card limits each month. A silver lining: As of Feb. 22, consumers can't be zapped with overlimit fees for breaching a new, lower limit unless they have opted in to allow overlimit transactions.
Issuers also don't have to provide 45 days' advance notice of rate hikes triggered by a 60-day late payment, expiration of a promotional rate, termination or completion of a workout agreement, or shifts in a variable-indexed interest rate. If you have a variable APR, for example, your rate can ride increases in the index to which it is tied, such as the prime rate as published in The Wall Street Journal. Consult your card agreement to find out how your rate is calculated.
RELATED LINKS
Current DateTime: 01:45:10 11 Mar 2010
LinksList Documentid: 35523199
Do You Carry a Balance? Here's How the New Law Helps YouHow Card Issuers React to the New lawUnder 21? Cards Are Now Harder to Get
Read notices from your issuers, and verify the rate and credit limit each month when you get your monthly statement, especially before making a large purchase. Going near your credit limit can hammer your credit score.
Required advance notices must include an opt-out clause. Consider whether it makes sense to opt out if you dislike the proposed change. Opting out will close the account but ensures a "beneficial" repayment plan.
2. Don't fall into retroactive rate-hike loopholes.Come Feb. 22, existing balances will be protected in most circumstances from a rate increase. If you miss the due date by two months or more, however, the APR applied to that debt can skyrocket. Owe a balance after a promotional rate expires and your rate can increase up to the regular APR. If you hold variable-rate cards, your rate will inch up with upticks in the index. The prime rate is the index for most variable-rate credit cards.
You can't control the index if you have a variable-rate card, but you can make sure your payment arrives on time. Issuers now have to keep the same due date every month and send statements at least 21 days before the bill is due. They also can't charge a fee to pay by phone, Internet, mail or any other means, except to expedite a payment through a service representative. Use whatever method you find convenient to pay bills in a timely manner. Late fees ranged from $15 to $39 in a 2009 survey by Consumer Action, a San Francisco-based consumer advocacy group, which included 39 cards from 22 financial institutions.
iStock
Credit Cards
--------------------------------------------------------------------------------
Here are a few tips for navigating key loopholes and protections in the new law.
1. Beware the advance notification exceptions.On Aug. 20, 2009, a provision that required 45 days' advance notification of "significant" terms changes took effect. It applies to fees and finance charges, as well as some rate increases. Loopholes in the law leave consumers unprotected in some situations.
For instance, the law doesn't require 45 days' advance notification for credit limit decreases. Consumers must keep abreast of their card limits each month. A silver lining: As of Feb. 22, consumers can't be zapped with overlimit fees for breaching a new, lower limit unless they have opted in to allow overlimit transactions.
Issuers also don't have to provide 45 days' advance notice of rate hikes triggered by a 60-day late payment, expiration of a promotional rate, termination or completion of a workout agreement, or shifts in a variable-indexed interest rate. If you have a variable APR, for example, your rate can ride increases in the index to which it is tied, such as the prime rate as published in The Wall Street Journal. Consult your card agreement to find out how your rate is calculated.
RELATED LINKS
Current DateTime: 01:45:10 11 Mar 2010
LinksList Documentid: 35523199
Do You Carry a Balance? Here's How the New Law Helps YouHow Card Issuers React to the New lawUnder 21? Cards Are Now Harder to Get
Read notices from your issuers, and verify the rate and credit limit each month when you get your monthly statement, especially before making a large purchase. Going near your credit limit can hammer your credit score.
Required advance notices must include an opt-out clause. Consider whether it makes sense to opt out if you dislike the proposed change. Opting out will close the account but ensures a "beneficial" repayment plan.
2. Don't fall into retroactive rate-hike loopholes.Come Feb. 22, existing balances will be protected in most circumstances from a rate increase. If you miss the due date by two months or more, however, the APR applied to that debt can skyrocket. Owe a balance after a promotional rate expires and your rate can increase up to the regular APR. If you hold variable-rate cards, your rate will inch up with upticks in the index. The prime rate is the index for most variable-rate credit cards.
You can't control the index if you have a variable-rate card, but you can make sure your payment arrives on time. Issuers now have to keep the same due date every month and send statements at least 21 days before the bill is due. They also can't charge a fee to pay by phone, Internet, mail or any other means, except to expedite a payment through a service representative. Use whatever method you find convenient to pay bills in a timely manner. Late fees ranged from $15 to $39 in a 2009 survey by Consumer Action, a San Francisco-based consumer advocacy group, which included 39 cards from 22 financial institutions.
Wednesday, January 13, 2010
Concerns a bubble was forming in China's hot property market was one of the reasons why policymakers have repeatedly drained excess cash from the financial system and tried to cool off borrowing, and on Tuesday raised the amount banks must keep in reserve by a half percentage point.
Shanghai's composite index fell 3 percent and led Asian equities lower, with investors caught off guard by how quickly the central bank acted. Banks and property developers were especially hard hit by fears borrowing costs in China's booming economy would rise.
China's banking regulator warned of the risks of excessive borrowing among land developers, and a housing official said property prices in the rich coastal cities were too high, indicating the government remained concerned about asset price inflation.
"We must recognize that housing prices in some major Chinese cities, especially in coastal big cities, are excessively high," Vice Minister of Housing and Urban-Rural Development Qi Ji said.
HIGHER LENDING RATES COMING?
This week, official statistics are expected to show a marked drop in year-on-year growth of money supply and credit in December. However, bank lending surged in the first week of January, sources told Reuters on Monday, suggesting uneven loan demand.
The market is also expecting figures for 2009 foreign exchange reserves, forecast to have grown to $2.4 trillion from $1.95 trillion at the end of 2008. Economists say further growth in reserves this year and associated with it rise in money supply will force the central bank to further tighten its policy.
Meanwhile, housing demand could simmer down after the central bank's increase in the reserve requirement ratio to 16 percent, the first rise since June 2008 when it peaked at 17.5 percent, though lending rates will play a decisive role for the market.
"It will be an interest rate hike, especially on mortgage rates, that will be the most determinant factor on whether the property market will be driven down as a result," said Eric Wong, head of Asia real estate research at UBS in Hong Kong.
"In the meantime, I think demand will likely take the back seat while people wait for a stream of policies to stabilize."
Loan quality among China's biggest banks so far continued to improve, especially compared with U.S. and European peers, where bad debts triggered the financial crisis.
Wang Zhaoxing, vice chairman of the China Banking Regulatory Commission, said the amount of non-performing loans in Chinese institutions was stable though he said there are risks if property-related lending continues to grow quickly.
"Until now, loans to developers and to mortgage borrowers combined account for about 20 percent of China's new lending as well as the outstanding loans," he said.
The State Council, China's cabinet, on Sunday warned of the negative impact of letting hot money flow into domestic real estate markets and inflating prices further. The housing ministry has also called for stricter rules on mortgage lending to second-home buyers and is discussing eliminating discount financing for buyers who already own a home.
BATTLING BUBBLES
However, doubts persist whether the authorities will manage to prevent an asset bubble after last year's borrowing spree when Chinese banks probably doubled lending to some 10 trillion yuan ($1.5 trillion), complementing Beijing's 4 trillion yuan fiscal stimulus.
"The Chinese government is trying to use administrative measures to contain it," Credit Suisse Equity Strategists Vincent Chan and Peggy Chan said in a research note. "But our experience in the last few years tells us that while such measures can contain the issue for a while, they have never been able to fundamentally resolve it."
Shanghai's composite index fell 3 percent and led Asian equities lower, with investors caught off guard by how quickly the central bank acted. Banks and property developers were especially hard hit by fears borrowing costs in China's booming economy would rise.
China's banking regulator warned of the risks of excessive borrowing among land developers, and a housing official said property prices in the rich coastal cities were too high, indicating the government remained concerned about asset price inflation.
"We must recognize that housing prices in some major Chinese cities, especially in coastal big cities, are excessively high," Vice Minister of Housing and Urban-Rural Development Qi Ji said.
HIGHER LENDING RATES COMING?
This week, official statistics are expected to show a marked drop in year-on-year growth of money supply and credit in December. However, bank lending surged in the first week of January, sources told Reuters on Monday, suggesting uneven loan demand.
The market is also expecting figures for 2009 foreign exchange reserves, forecast to have grown to $2.4 trillion from $1.95 trillion at the end of 2008. Economists say further growth in reserves this year and associated with it rise in money supply will force the central bank to further tighten its policy.
Meanwhile, housing demand could simmer down after the central bank's increase in the reserve requirement ratio to 16 percent, the first rise since June 2008 when it peaked at 17.5 percent, though lending rates will play a decisive role for the market.
"It will be an interest rate hike, especially on mortgage rates, that will be the most determinant factor on whether the property market will be driven down as a result," said Eric Wong, head of Asia real estate research at UBS in Hong Kong.
"In the meantime, I think demand will likely take the back seat while people wait for a stream of policies to stabilize."
Loan quality among China's biggest banks so far continued to improve, especially compared with U.S. and European peers, where bad debts triggered the financial crisis.
Wang Zhaoxing, vice chairman of the China Banking Regulatory Commission, said the amount of non-performing loans in Chinese institutions was stable though he said there are risks if property-related lending continues to grow quickly.
"Until now, loans to developers and to mortgage borrowers combined account for about 20 percent of China's new lending as well as the outstanding loans," he said.
The State Council, China's cabinet, on Sunday warned of the negative impact of letting hot money flow into domestic real estate markets and inflating prices further. The housing ministry has also called for stricter rules on mortgage lending to second-home buyers and is discussing eliminating discount financing for buyers who already own a home.
BATTLING BUBBLES
However, doubts persist whether the authorities will manage to prevent an asset bubble after last year's borrowing spree when Chinese banks probably doubled lending to some 10 trillion yuan ($1.5 trillion), complementing Beijing's 4 trillion yuan fiscal stimulus.
"The Chinese government is trying to use administrative measures to contain it," Credit Suisse Equity Strategists Vincent Chan and Peggy Chan said in a research note. "But our experience in the last few years tells us that while such measures can contain the issue for a while, they have never been able to fundamentally resolve it."
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