InvestmentsApr 15 2013

Morning papers: UK pension deficits set to rise by £100bn

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UK companies reporting annual results for the year to March are expected to report an increase of more than £100bn in their aggregate pension scheme deficits, according to actuarial forecasts, reports the Financial Times.

This year’s reporting season is likely to expose larger, not smaller, pension shortfalls than existed a year ago, in spite of sharp rises in stock and bond markets where retirement schemes have invested their assets.

Millions set to switch accounts as study finds banks at fault

Record numbers of people are expected to ditch their bank in the coming year as mis-selling, poor customer service and a faster switching service persuade them to make the move, reports the Guardian.

More than a quarter have had a problem with their current account, according to research out today from Which?, with a fifth who made a complaint saying it was not resolved satisfactorily.

April house prices hit record high

House prices have hit an April record, new figures show, fuelling expectations of a property market revival, reports the Daily Telegraph.

House-sellers have raised the average asking price by 2.1 per cent to £244,706, setting a new record for this time of year, according to the Rightmove property website. Prices have risen by £15,717 since the start of the year, and are just £1,500 behind June 2012’s record high.

Priced to go: Royal Mail set for float this autumn

Royal Mail is heading for a stock market flotation in the autumn, but at a knockdown price of less than £2.5bn, reports The Times.

As in the big privatisations of the Thatcher years, the sell-off of the state postal network will give access to shares for all, while 130,000 Royal Mail workers will receive average stakes in the company of up to £2,000 each.

Global economy stuck in a rut

The global economy is stuck in a rut, unable to sustain a decent recovery and susceptible to a sudden stall, according to the latest Brookings Institution-Financial Times tracking index of recovery, reports the Financial Times.

In spite of strong financial markets and confidence returning to business and consumers in emerging economies, overall indicators of growth have hardly budged since mid-2011, since when repeated tentative upswings have always been snuffed out by weak data and renewed stress in the eurozone.

Gas supplier Statoil attacks UK’s market price reporting system

One of the biggest suppliers of gas to Britain, Statoil of Norway, has said the UK’s system of power market price reporting is open to manipulation and “gaming” and needs to be shaken up, reports the Guardian.

The damning assessment of the UK system from one of the world’s biggest energy companies comes six months after the Guardian triggered an investigation by City and energy watchdogs with a report detailing concerns about wholesale gas market rigging raised by an ICIS Heren price reporter, Seth Freedman.