News Column

Barclays slips on news of extra charges, as FTSE falls on emerging market risks

January 29, 2014

Nick Fletcher, theguardian.com

As markets lose their early gains and head sharply south, it is not the best time for a bank to unveil extra costs and charges of 330m. So Barclays , the bank in question, is unsurprisingly down 3.65p at 269.65p. In an unexpected statement, responding to recent reports it would announce 400 branch closures along with its full year results, the bank said: There is no intention to make an announcement about branch closures in the UK . A spokesman told Reuters there would be fewer branches over time, as the needs of customers changed, but there was no target number for closures nor any time frame. But in the statement the bank said: Compared to previous guidance...the results will include additional approximate charges against costs of 220m and against income of 110m in the investment bank in the fourth quarter relating to litigation and regulatory penalties. Meanwhile, after a bright start as Turkey moved to raise interest rates to protect its currency, investors have taken fright again at the prospect of an emerging markets crisis. The rise in the Turkish lira was short lived, while a surprise move by South Africa to raise its rates caught the markets unaware, and not in a good way. On top of that there is continued caution ahead of the US Federal Reserve announcement later, when many analysts believe it may trim its $75bn bond buying programme by another $10bn . The economic stimulus has supported markets, especially emerging markets, and if the money taps are turned off, investors are fearful of the possible consequences. So the FTSE 100 is currently 59.66 points lower at 6512.67, the Dow Jones Industrial Average is off more than 100 points and European markets are recording falls of more than 1%.


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Source: Guardian Web


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