Economy
Lloyds rating blow |
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| Economy | |
| Written by Gary Howes and Sharecast | |
| Tuesday, 23 June 2009 | |
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Morning Business News, Tuesday 23 June 2009: Lloyds, RBS, Thomson Reuters and the City of London.
Lloyds Banking Group (LON:LLOY) has this morning suffered a ratings downgrade on its financial strength. Moody's also said the outlook was negative. "The lowering of Lloyds TSB's BFSR by one notch to C incorporates the significant challenges lying ahead for the bank's management to continue the integration of HBOS and its subsidiaries, as well as the residual risk remaining in those assets that will not be covered under the Asset Protection Scheme" said Elisabeth Rudman, Vice President - Senior Credit Officer at Moody's and lead analyst for Lloyds. The Lloyds Banking Group share price was down by 0.87% this morning as a result. RBSA near-£10m incentive package for Stephen Hester, chief executive of the taxpayer-controlled RBS (LON:RBS), was condemned last night by politicians and unions. George Osborne, the Shadow Chancellor, said: “Stephen Hester may be the right man to lead RBS, but this is the wrong type of pay deal. It is a one-way bet which smells of the old-style City,” the Times reports. Thomson ReutersThomson Reuters (LON:TRIL) was up by over 5% on the FTSE this morning after the media conglomerate said it is to delist from the London Stock Exchange after almost 150 years. The FTSE 100 listed company, which was formed from the merger of Reuters and Thomson in 2007 and is dual-listed in Toronto, is to cease trading on the British bourse in August as a result of the discount in the price of its London shares, the Telegraph reports. City of LondonThe City of London has warned that new European regulations could ride roughshod over the interests of the UK, where the financial services sector employs more than 1m people and generates billions of pounds in income. In an outspoken attack on the accord signed last week to create an EU regulator, the City of London Corporation said the Brussels’ legislation posed a dangerous risk to the success of the economy, the Telegraph reports.
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