Barclays Investors Question Diamond

Barclays investors have expressed their revolt over excessive levels of director pay, in particular that of Bob Diamond who received £5.7m to cover his “tax equalisation” following his move from the US to the UK. 

Barclays is not alone in being challenged by investors over Director pay. Deutsche Bank is also being challenged by global investors over Director’s remuneration and appointment policies.

Concerns Raised over Government NewBuy Scheme

George Osbourne’s NewBuy scheme has been criticised as ineffective by UK housebuilders. The scheme is seen by many as an election ploy as the government seek to address the issue over the lack of affordable housing in the UK. 

The NewBuy scheme aims to help first time buyers who are struggling to get onto the property ladder by offering mortgages to individuals with 5% deposits. Only a few retail banks have supported the scheme and are offering above average interest rates on NewBuy mortgages.  People who cannot afford to raise housing deposits are unlikely to be able to afford the high interest rates charged on the NewBuy mortgages. The government will need to rethink their strategy and would be better served by addressing the issue of rising house prices in the UK.

Argentina seizes YPF oil Group from Spain

The Argentinean government seized control and nationalised the YPF group which was 57% owned by Spanish company Repsol. The Spanish government reacted angrily to the news and will be taking sanctions against Argentina. Repsol claim the nationalisation is outrageous and have threatened legal action. 

The asset grab will have serious implications for Argentina as international investors will be reluctant to invest in the country. This is not the first time Argentina has received negative press, back in 2001 the country defaulted on its sovereign debt to the outrage of major International banks. The banks have closed credit to Argentina ever since and its reputation  as a place to do business had already reached rock bottom prior to the YPF announcement.