A decade on from the start of the global financial crisis ex UK chancellor Lord Darling says regulators must be “very” vigilant about the economy and complacency still lurks.
Darling was talking to BBC’s Radio 4 Today program this morning, marking the date when French bank BNP Paribas closed down several investment funds, generally thought the genesis of the 2007 credit blow-up. No banker was ever prosecuted.
Meanwhile global stock markets are close to all-time highs – the Dow Jones is at 22,085 and the UK FTSE 100 is at 7,477 – while consumer debt is surging. Many distortions still linger, warn some.
At 7am the pound was trading at $1.2987 against the US dollar, down -0.02% while the euro was at $1.1737. WTI crude was down -0.31% at $49.02 while gold is up 0.68% to $1,264 an ounce.
Fresh insight into US inflation from producer and consumer price indexes, critical for dollar movement, arrives tomorrow and Friday.
- UK FTSE 100 7,474.77 +0.85%
- Dow 22,085.34 -0.15%
- S&P 500 2,474.92 -0.24%
- Nasdaq 6,370.46 -0.21%
- Nikkei 225 19,701.94 -1.48%
- DAX 12,292.05 +0.28%
- CAC 40 5,218.89 +0.21%
- Gold 1,270.80 +0.64%
- Oil WTI 49.02 -0.31%
G4S earnings surge
We begin with new half-year numbers from security services provider G4S. Revenues rise 6.2% to £3,715m while earnings climb 7.6% to £128m. G4S is keeping the interim dividend steady at 3.59p.
“Our well established productivity programme,” it said this morning, “provides increased confidence in the Group's ability to deliver recurring operating and financing efficiencies of £90m to £100m by 2020.”
While G4S’ share price has risen 29% in the last six months it has surged almost 75% in the last year.
Legal & General report 27% profits hike
Next, Legal & General. For the half-year operating profit surges 27% to £988m while profit after tax is up 43% to £952m. Earnings per share climbs 41% to 15.94p. The interim dividend rises to 4.30p from 4.00p.
“Our business model,” L&G says, “has proven to be resilient to political, economic and regulatory uncertainties. We are not being complacent as we recognise that there are currently some structural weaknesses in the UK economy.”
L&G added it was replicating its UK model with “measured” expansion in the US.
Meanwhile it lools like the chance of Toshiba being delisted by the Tokyo Stock Exchange – Toshiba is due to submit new fianancial papers regarding its earnings – are easing. Earlier today Toshiba shares had climbed 9%.
Worldpay have reported an 18% climb in half-year revenues to £2,509m with underlying earnings coming in at £247.5m for the half year to 30 June.
Breaking news: ABN Amro claims a 45% surge in second quarter net profits to €960m while reinsurer Munich Re says it saw €733m in net profits for the second quarter.