| Syed Abbas from Toronto, Canada writes:
The Muslim Canadian Congress is quite right when it says such devices may be more expensive than traditional loans. However, the cost of the loan has become secondary to the monthly payments for most people. That 'payday loan' stores operate is proof that the cost is of little consideration to many people. Banks have a responsibility to ensure a return to their shareholders. For them to broaden their product range, especially when those products are likely to provide a higher return than traditional products, is understandable. The only way to control high-cost loans, whether that cost is in the form of interest or other charges, is by legislation. Posted 29/01/08 at 11:43 AM EST | Alert an Editor | Link to Comment .
Brokers cut Mecom's pre-tax profit forecast
David Montgomery's European newspaper group Mecom yesterday moved to calm investors after it suffered a 30% share plunge this week. Confidence in the former Mirror group chief's company was severely shaken on Tuesday as its house brokers downgraded their profit forecasts and the City chided Mecom for issuing a trading update that many felt was short on detail. In yesterday's clarification to the stock exchange, Mecom sought to spell out the impact on its earnings from higher disposal and interest costs. Supplying fresh details, it acknowledged the proposed disposal of a Dutch newspaper and revealed the likely level of this year's depreciation and interest charges. Montgomery launched Mecom in early 2005 and he has been rapidly building a newspaper empire in continental Europe since taking a stake in Berliner Verlag in October 2005.
Jobi gets Hornets out of jail
It's all very well making a prediction.. we all do that but in Colin's case you know when JM scored he was probably really upset. This guy is no Watford supporter. His postings have now become a joke after some earlier valid points, I urge everyone to ignore him now, let him talk to himself! .
Further uneasiness beneath the surface?
Tuesday was another day of immense volatility in the financial markets and rumours had it that the Fed would make an emergency rate cut ahead of the opening of the US market. The US central bank did in fact cut rates by as much as 75 bps but markets are clearly not satisfied and the Stocks on Wall Street didn't quite make it across the border into positive territory before the closing bell rang. Furthermore market participants are currently pricing in an approximate 80% probability that the Fed will cut rates by another 50 bps at the January 30th monetary policy meeting. This however is not in line with our scenario as we expect that the Fed will make do with a 25 bps cut on Wednesday unless the situation in the stock markets. Our main scenario at this point is that currency investors will be somewhat optimistic but as market participants still have rather high expectations of further Fed moves next week we expect that optimism will be relatively confined.
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