News round up: Barclays, Nationwide, Ted Baker, Cadbury, Sellafield, Dwell, Mervyn King and Borrowing costs.
Barclays plc (LON:BARC) and Nationwide (LON:CEBB), which have both increased their net lending to the economy this year, are facing the threat of being forced to raise more capital or sell off loans to meet a new "leverage ratio" target.
For Barclays the impact of the surprise measure, were the bank to have to meet the 3pc ratio by the end of the year, would to force it to raise as much as £8bn in fresh equity or shrink its assets by £280bn, according to analysts at Nomura.
In the case of Nationwide, the impact could be even more severe due to its mutual status, which as a building society means the lender does not have recourse to shareholders, the Telegraph reports.
Ted Baker surged to a new high of £17, up 230p, prompted by a jump in the fashion retailer's sales.
The high street designer said strong demand in the UK and north America had seen revenues rise 32.7% in the 20 weeks to the middle of June. It has been expanding internationally, opening flagship stores and concessions in the US and Asia to take its total number of outlets to more than 300, writes the Guardian.
Cadbury, the British confectionery maker which was acquired by US food group Kraft in 2010, engaged in aggressive tax avoidance schemes before the takeover that was designed to slash its UK tax bill by more than a third, according to a Financial Times investigation.
The company was involved in tax avoidance schemes former senior executives admit were "highly aggressive".
Sellafield's nuclear waste clean-up operations could be handed back the government after a series of failings by private companies managing the site, The Telegraph reported.
Britain’s Amec, France’s Areva and America’s URS were selected in 2008 to run the Cumbrian site for up to 17 years but the National Audit Office and the Public Accounts Committee have both criticised delays and cost overruns at Sellafield.
Upmarket furniture chain Dwell ceased trading yesterday, putting 300 jobs at risk, The Times said. Dwell cancelled all deliveries and told customers who have placed orders with credit cards to contact their bank for a refund.
Outgoing Bank of England Governor Mervyn King will be given a life peerage when he steps down at the end of the month, The Guardian reported. He will retire from Threadneedle Street on June 30th after a decade at the helm, and will become a member of the House of Lords after his nomination by the prime minister for his "significant public service".
British government borrowing costs raced to a 15-month high last night as financial markets around the world tanked after the Federal Reserve outlined plans to taper off its monetary stimulus, the Daily Mail said. Bond prices, shares and commodities fell sharply on global exchanges.