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Just When British Banks Thought It Was Safe To Go Back Into The Water

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Guest Shedfish

Just when British banks thought it was safe to go back into the water . . .

Bitten by the credit crunch, the banks now face a wave of corporate bad debts

August 3 2008 - Iain Dey

Matthew Prest knows he is about to get busy. As head of Close Brothers' European restructuring business, he gets going when companies find themselves in trouble. After reading the accounts posted last week by HBOS and Lloyds TSB, two of Britain's biggest banks, Prest is preparing for a bonanza.

http://business.timesonline.co.uk/tol/busi...icle4449323.ece

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Ok then, but the corporate debt is now starting to get nasty.

Anyone knowledge of bio/pharmaceuticals - AstraZ/SmithK/Amgen.......are these in doodooo...if they are, most HE research in the UK are in deep dooddoo too.

I hope not!

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Ok then, but the corporate debt is now starting to get nasty.

Anyone knowledge of bio/pharmaceuticals - AstraZ/SmithK/Amgen.......are these in doodooo...if they are, most HE research in the UK are in deep dooddoo too.

I hope not!

I hope to god the pharmaceuticals aren't trouble as it could be very bad news.

The banks have lend out for too much money, has any economist done any calculations on how much profit has been due to MEW and HPI etc.... Surely there has to be some correlation and also how increases in the money supply increases company profit?

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Ok then, but the corporate debt is now starting to get nasty.

Anyone knowledge of bio/pharmaceuticals - AstraZ/SmithK/Amgen.......are these in doodooo...if they are, most HE research in the UK are in deep dooddoo too.

I hope not!

Big Pharma are shedding jobs (particularly in science) like water in the u.k.

Their pipelines are mostly empty and they are looking to cut costs. As R&D is very uncertain in output, and since they are run by lawyer/accountant types its one of the first to go. e.g. GSK are cutting 75 chemists in harlow in the next few weeks.

Instead they are farming out R&D to contract labs here and in india, china, etc. With respect to the U.K. the contract labs have poor career prospects and low pay for the level of skill involved. Thus, in the long term this will profoundly negatively impact the uk science base.

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Guest Shedfish

the week just gone, and the week ahead - 'pasted' from the FT

http://www.ft.com/indepth/bank

<h3 class="section">Earnings diary</h3>

HBOS

f27cb6f4-9e7b-11d8-be31-0003ba5a9905.gifJuly 31: The mortgage lender said the slowing economy was causing a deterioration in credit quality, with impairment losses on home lending and corporate loans rising

Lloyds TSB

ea3a8c46-d58a-11d8-b7f4-0003ba5a9905.gifJuly 30: Lloyds TSB reported a 70% fall in reported pre-tax profits to £599m, but raised its dividend by 2%

Alliance & Leicester

ddb19684-9e87-11d8-be31-0003ba5a9905.jpgAugust 1: A&L reported a statutory pre-tax profit of £2m, in line with analysts' expectations, after writedowns to its treasury assets and higher funding costs

HSBC

99f38cb4-d59a-11d8-b7f4-0003ba5a9905.jpgAugust 4: HSBC releases earnings news. In May it predicted the US housing market downturn could last another year and said it had set aside £3bn

Barclays

9df30684-d570-11d8-b7f4-0003ba5a9905.gifAugust 7: Barclays' earnings are due. In the previous quarter it revealed a further £1.7bn of writedowns on its exposure to subprime mortgages and monoline insurers

Bradford and Bingley

e8e6eff0-d56d-11d8-b7f4-0003ba5a9905.gifAugust 4: Quarterly earnings are expected. In June the mortgage lender renegotiated its £300m rights issue amid concerns it would face a 'fight with the underwriters'

Royal Bank of Scotland

29cd9116-de48-11d9-92cd-00000e2511c8.gifAugust 8: RBS reports quarterly earnings. In June it confirmed its trading performance had not changed since it launched its £12bn rights issue in April

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Big Pharma are shedding jobs (particularly in science) like water in the u.k.

Their pipelines are mostly empty and they are looking to cut costs. As R&D is very uncertain in output, and since they are run by lawyer/accountant types its one of the first to go. e.g. GSK are cutting 75 chemists in harlow in the next few weeks.

Instead they are farming out R&D to contract labs here and in india, china, etc. With respect to the U.K. the contract labs have poor career prospects and low pay for the level of skill involved. Thus, in the long term this will profoundly negatively impact the uk science base.

We've had three HUGE biopaharma's getting in touch with us and setting up studies just in the last 6 months...I wondered why they were so keen.

Good for us though, but for how long?

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Ok then, but the corporate debt is now starting to get nasty.

Anyone knowledge of bio/pharmaceuticals - AstraZ/SmithK/Amgen.......are these in doodooo...if they are, most HE research in the UK are in deep dooddoo too.

I hope not!

I heard from someone who worked for Pfizer that they were in some difficulty but not sure how bad. I assume not life threatening.

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We've had three HUGE biopaharma's getting in touch with us and setting up studies just in the last 6 months...I wondered why they were so keen.

Good for us though, but for how long?

Its an attempt to expand the shelf life of existing API's. Conduct a study on an existing pharmaceutical for a new indication or in some way that allows re-patenting. Only way to keep the cash flowing in when you have an empty R&D pipeline.

This will only allow them to keep their heads above water for so long thou.

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I heard from someone who worked for Pfizer that they were in some difficulty but not sure how bad. I assume not life threatening.

Very unlikely to go bust, but they are going to have to downsize.

Two ways they can do it. Cut management, lawyers, accountants, advertising, etc and focus on R&D. Or cut R&D and focus on selling-marketing.

No guesses on which way most big pharma are going.

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  • 401 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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