Uk Needs Migrant Workers ‘because Locals Are Lazy’, Says Bulgaria
Shrugging off some concerns that its core property market might be overheating, the shares opened 19 percent above the 230 pence offer price – itself at the top of a targeted range between 190p and 230p – to value the company at around 775 million pounds. By 1425 GMT they were trading at 271.5p. Foxtons sold 60 percent of its equity to become the latest UK property-related company to float on the back of a recovering housing market, following real estate agency Countrywide (CWD.L) and housebuilder Crest Nicholson (CRST.L) earlier this year. Both have seen their shares rise more than 50 percent since going public, but some investors said last week Foxtons was late to the party and too exposed to London. While Britain’s housing market has been boosted by signs of an improving economy as well as help from the government and the Bank of England to ease access to finance, the pace of recovery has raised concerns about a new property bubble. Data last week showed British house prices recorded their fastest rise in almost seven years. However, despite being wary of proposed further government stimulus measures, housebuilding analyst Tony Williams said London was not yet experiencing a market bubble and rising interest rates in coming years would act as a natural brake. “A bubble is when you have people buying and flipping within the space of months. What you have in London is a shortage of supply and a planning system that gums up the works,” he said. “This particular run will end some time between the back end of 2014 and 2016, as rising mortgage rates will cause the market to plateau,” Williams added. Foxtons, which last year earned more than half its revenue from its lettings business, is focused on expansion within London, home to 40 of its 42 branches, and has said it is aiming for five to 10 new branch openings a year between 2014 and 2018. But analyst Anthony Codling at brokerage Jefferies said that while estate agents were the best way to gain exposure to the UK housing market, prospects were better for nationwide firms. “We see more significant potential for house price growth outside of London than inside,” he said in a note. Jefferies worked on Countrywide’s float. CHEQUERED HISTORY House prices fell 16.3 percent in London after the financial crash and by 16.6 percent across England and Wales, according to Land Registry data.
It says that Britain gains from the free movement of people and that Bulgarians in the UK are “predominantly young, single, relatively well educated”. It cites a recent report from the Migration Advisory committee of the Home Office assessing the benefits of Romanian and Bulgarian seasonal workers to the economy. Bulgaria’s submission says: “Operators and growers are trying unsuccessfully to recruit (and retain) British workers, who are reluctant to live on (be tied to) the farm; either cannot or will not work at the intensity required to earn the agricultural minimum wage and have little incentive to come off social security benefits for seasonal work. “Bulgarian and Romanian workers in the agricultural sector are presented in the report as highly valued, a stable and reliable source of labour.” The 10-page Bulgarian document was submitted last month to the Home Office and the Department for Work and Pensions to form part of David Cameron’s review of European Union powers. The arguments presented will also form the basis of the Bulgarian government’s defence against attempts to limit its citizens’ access to public services , such as the NHS, and jobs when the current transitional immigration arrangements are lifted in 2014. A series of ministers and Tory MPs have called for tighter access to the welfare state before Romanian and Bulgarian citizens have total freedom to move and work in the UK. However, the Bulgarian government hits back in its submission. It claims that the current EU laws on freedom of movement and access to another member state’s welfare system are “rarely abused and do not lead to overburdening of the public services of the latter. “Particularly in the case of Bulgarian and Romanian citizens in the UK, there is no evidence of so-called ‘benefit tourism’,” it says. In an attempt to prove that Bulgarians are not interested in coming to Britain to exploit the welfare state, the document points to Department for Work and Pensions data showing that in 2011, 16.6% of working-age Britons were claiming benefits as compared with 6.6% of working-age non-UK nationals. The case presented in the document is in stark contrast to claims by Nigel Farage in his speech at Ukip’s annual conference on Friday, during which he vowed to put Romanian and Bulgarian immigrants at the heart of his party’s campaign in next year’s European elections. He told activists that London was already experiencing a crime wave due to east European immigrants and that the country should not “unconditionally open our door to Bulgaria and Romania “.
JPMorgan To Settle With U.S., UK Regulators For ‘London Whale’ Losses
(Getty Images) | Getty Get Business Newsletters: Subscribe Follow: Video , JPMorgan Chase , Jamie Dimon JPMorgan Chase , Jamie Dimon Whale , Jpmorgan , Jpmorgan London Whale , Jpmorgan Whale , Jpmorgan Whale Fines , London Whale , London Whale , Whale Fines , Business News U.S. and UK regulators are expected to announce a civil settlement as soon as Thursday of their investigations into JPMorgan Chase & Co’s “London Whale” derivatives loss, a source familiar with the matter said on Wednesday. The settlement, which is expected to be for at least $700 million, would resolve several civil probes into the multibillion-dollar trading losses at the largest U.S. bank last year. Regulators, including the U.S. Securities and Exchange Commission and the UK’s Financial Conduct Authority, are expected to be part of the settlement. The New York Times reported that the fines would top $900 million. The FCA and SEC declined to comment. However, U.S. prosecutors are still investigating JPMorgan for potential criminal wrongdoing. A settlement would mark a key step in JPMorgan’s efforts to resolve its regulatory and legal troubles. The bank is facing separate probes by various government agencies into areas that include possible bribery in hiring practices in China and potentially fraudulent sales of mortgage securities. Following the “Whale” scandal, Chief Executive Jamie Dimon faced a bruising battle with some shareholders to retain his chairman title and has since been under pressure to improve the bank’s relationship with regulators. Two former bank employees – Javier Martin-Artajo and Julien Grout – have already been charged with trying to hide some of those losses by deliberately giving inaccurate values to the sophisticated securities involved in the trades.