The FTSE closed up slightly, 0.4%, at 6,330.49 today after a punishing four week run of losses. The gain was due, in part, to strong technical stock performances and positive economic data out of the US.
George Osborne has said that he is keen for the Lloyds Banking Group to return to private ownership by 2015. Economists have said the Chancellor will not commit to a specific timetable to sell the government’s stake in the company.
The Co-op Bank, part of the Co-operative Group, plans to use a ‘bail-in’ financial model to swap debt for new bonds and equity in the bank, which will be listed on the London Stock Exchange in an effort to help stop the £1.5 billion capital hole it is in. The Co-op Group will retain a majority stake in the Bank
Paul Tucker, the deputy governor of the Bank of England (BoE) has announced that he plans to leave the bank, whilst the date has yet to be confirmed it is likely to be this autumn. Tucker is planning to spend time in the US after his departure.
In an effort to try rein in the expected £114 billion deficit expected in the 2015/2016 budget, the Government has agreed to spending cuts of £3.6 billion, leaving less than two weeks to find the remaining £11.6 from the remaining government departments.