Barclays snubs bail-out offer from UK government

London – Barclays, one of Britain’s leading banks, said it planned to raise more than £6,5 billion (about N$102 billion) from investors, turning down the offer of government help.

“Given the strength of Barclays’ well-diversified business and the existing capital base, the board expects that the additional capital will be raised from investors without calling on the government funding which has been offered,” Barclays said in a statement. The British government was expected to announce plans to take controlling shares in Royal Bank of Scotland (RBS) and HBOS, two of the banks worst affected by the global financial crisis, media reports said.Government representatives could be installed on their boards in a move so unprecedented that trading in banks on the London stock market could be suspended to allow traders to digest the news, newspapers reported.It would be the first implementation of a rescue package for banks announced last week, in which the government made available £50 billion to inject cash into banks in return for shares.Lloyds TSB was another bank expected to ask the British government for billions of pounds worth of taxpayers money, media said.- Sapa-AFP —- China surplus with US holds steady at US$17.5bn BEIJING – China’s trade surplus with the United States held steady at US$17.5 billion in September, the national customs agency announced yesterday.The surplus matched the US$17.5 figure for August, showing the apparent impact of a boost in imports from the US over recent months.China’s exports to the US over the first nine months of the year grew by 11,2 per cent over the same period last year, while imports increased by 22,1 per cent, the agency said.China’s global trade surplus – the amount that exports exceed imports – in September hit a new monthly high of US$29,3 billion, the government said.The trade gap is fuelling demands by the US and the European Union for Beijing to lift trade barriers and loosen currency controls.Despite the strong trade showing, China’s leaders have twice cut interest rates in the past two months and this week will increase the pool of money available for lending by reducing the amount Chinese banks must hold in reserve by a half percentage point to 16 per cent.A 5 per cent tax on interest on bank deposits was also suspended and rebates restored to encourage exports.Economists expect additional measures including more tax reductions and a government stimulus plan to boost growth.With housing prices cooling and fears of higher unemployment, economists have cut growth forecasts for China this year to as low as 9 percent, down from last year’s 11.9 percent.- Nampa-APThe British government was expected to announce plans to take controlling shares in Royal Bank of Scotland (RBS) and HBOS, two of the banks worst affected by the global financial crisis, media reports said.Government representatives could be installed on their boards in a move so unprecedented that trading in banks on the London stock market could be suspended to allow traders to digest the news, newspapers reported.It would be the first implementation of a rescue package for banks announced last week, in which the government made available £50 billion to inject cash into banks in return for shares.Lloyds TSB was another bank expected to ask the British government for billions of pounds worth of taxpayers money, media said.- Sapa-AFP —- China surplus with US holds steady at US$17.5bn BEIJING – China’s trade surplus with the United States held steady at US$17.5 billion in September, the national customs agency announced yesterday.The surplus matched the US$17.5 figure for August, showing the apparent impact of a boost in imports from the US over recent months.China’s exports to the US over the first nine months of the year grew by 11,2 per cent over the same period last year, while imports increased by 22,1 per cent, the agency said.China’s global trade surplus – the amount that exports exceed imports – in September hit a new monthly high of US$29,3 billion, the government said.The trade gap is fuelling demands by the US and the European Union for Beijing to lift trade barriers and loosen currency controls.Despite the strong trade showing, China’s leaders have twice cut interest rates in the past two months and this week will increase the pool of money available for lending by reducing the amount Chinese banks must hold in reserve by a half percentage point to 16 per cent.A 5 per cent tax on interest on bank deposits was also suspended and rebates restored to encourage exports.Economists expect additional measures including more tax reductions and a government stimulus plan to boost growth.With housing prices cooling and fears of higher unemployment, economists have cut growth forecasts for China this year to as low as 9 percent, down from last year’s 11.9 percent.- Nampa-AP