Morning papers: Investor impatience lifts Spanish yields
The morning papers brought to you by Investment Adviser: Tuesday, September 18 2012.
Spain’s benchmark borrowing costs have climbed back above the 6 per cent mark again as investors start to grow impatient with Madrid’s delays in applying for help from the eurozone’s rescue vehicles and central bank, reports the Financial Times.
After a strong rally since the European Central Bank unveiled its plans to support the sovereign bond markets of the currency union’s embattled members, Spanish and Italian borrowing costs started to rise once more on Friday and continued their rise on Monday.
MPs to grill BoE chiefs over QE
MPs are to investigate the Bank of England’s claim that its money-printing operations have benefited pensioners, as the Treasury Committee launches a call for evidence, reports The Telegraph.
The Treasury Committee called for written evidence in response to the Bank’s paper which said pensioners and older workers have gained the most from quantitative easing, in spite of claims they have been hardest hit by the policy.
US inflation fears rise after QE3
Bond investors pushed a key measure of US inflation expectations on Monday to their highest level since 2006, in response to last week’s aggressive policy action by the Federal Reserve, reports the Financial Times.
Market expectations for US inflation over the next 10 years rose as high as 2.73 per cent on Monday, based on the difference, or the so-called “break-even rate”, between nominal and inflation-protected Treasury debt.
iPhone 5 attracts record orders to buck US economic trend
Apple’s iPhone 5 has smashed records before hitting the shelves with more than 2m people pre-ordering the coveted smartphone in its first 24 hours, double last year’s figures, reports the Financial Times.
The tech giant warned that many initial orders would not be delivered until October as demand had exceeded “the initial supply”. But it added that the majority of orders would still be delivered as planned on Friday morning.
Treasury chief warns on state role in banks
The Treasury’s top civil servant has warned of the potential dangers of the government taking a more active role in banking, saying this could “destroy value at a rapid rate”, reports the Financial Times.
Appearing in front of the public accounts committee to discuss the privatisation of Northern Rock, Sir Nicholas Macpherson, Treasury permanent secretary, said there needed to be a “degree of scepticism” about the state getting into banking. “History suggests governments – when they own businesses – tend not to run things very well,” he said.
Taxpayers could lose billions in banks sell-off, group of senior MPs warn
Taxpayers could lose billions of pounds from the sale of state-owned Lloyds and Royal Bank of Scotland, a committee of senior MPs warned last night, reports The Daily Mail.
Margaret Hodge, chairman of the Commons public accounts committee, said she was ‘worried’ taxpayers would be short-changed by Britain’s giant banking bailout in 2008.