Another 24 hours into the liquidation of Carillion, and the crisis seems to spread wider by the minute, writes Matthew Vincent. Last night came news that another contractor, Interserve, has been put on financial health watch by government, as concerns about outsourced contracts grow. And, this morning, thousands of Carillion’s former employees are still waiting for clarity over their jobs – as a government guarantee to keep paying workers on private-sector contracts expires.
Carillion’s collapse and liquidation are set to have more repercussions today – and provoke more recriminations. Among the more astonishing facts to emerge yesterday was that not a single direct employee had been dismissed from the construction group. “Everyone is still on the payroll,” said the Official Receiver on Monday – including, it would seem, former boss Richard Howson, who stepped down last July but will keep receiving his £660,000 salary and £28,000 of benefits until October.
Thursday December 14 will go down in history as the day that the Walt Disney Company wrote a new chapter in the history of a once feared empire, and settled the destiny of one who was taught to wield mysterious power by a wise and wizened old master. But enough of Star Wars, Luke Skywalker and his mentor Yoda, writes Matthew Vincent. In other news, Disney is buying the entertainment assets of the 21st Century Fox empire, and deciding the destiny of James Murdoch, who had run the business for his father: the legendary media mogul Rupert.
Theresa May is not the only one to secure a political deal in the nick of time, and breathe a sigh of relief, writes Matthew Vincent. Charles Woodburn, chief executive of BAE Systems has managed no less a negotiating feat, but in the Middle East rather than Europe: finalising a £5bn order from Qatar for 24 Typhoon fighter jets – a deal that will safeguard British jobs and ensure UK production of the aircraft into the mid-2020s.
They may have been investment-grade, but Steinhoff’s bonds have been a bad deal for the ECB.
Carillion’s full-year trading statement was always going to be the news this morning, whether it happened or not, writes Matthew Vincent. And those betting on further falls in the stricken construction group’s shares probably had money on “not”. In fact, as of last night, Carillion’s own financial calendar still said: “There is no event/s available for current selection” and the company had not confirmed to news websites that any announcement would be forthcoming today.
In this guest post, Marcello Minenna, the head of Quantitative Analysis and Financial Innovation at Consob, the Italian securities regulator, argues that reforms to the European Stability Mechanism can pave the way for Eurobonds. The views expressed here are his personal opinions and do not necessarily reflect the views of Consob.
Target2 balances reflect euro area’s potential to be better than traditional exchange rate peg regime
Think of it within the context of the balance of payments as foreign exchange reserves that can never be depleted.