Outsourcing firm Capita’s shares took a dive on Wednesday after Goldman Sachs slashed its valuation for the shares from 771p to 595p. Having fallen 10.6p earlier in the day, Capita’s shares recovered to close 3.6p lower at 495p. The investment bank said that it expected free cash flow to decline around by about 3pc each year for the next two years following Capita’s recent trading update. Capita saw its stock plunge to a 10-year low earlier this month after it gave its second profit warning in three months, with shares trading at just 452.4p last week. … [Read more...] about FTSE 100 ends four-day growth streak as Goldman gloom hits Capita
Profit warning capita
Established 125 years before Shakespeare penned Romeo and Juliet, the Banca Monte dei Paschi di Siena was founded in 1472 to help finance the city state of Siena, as well as its artistic renaissance. For more than 500 years the world’s oldest bank has operated successfully, through wars, revolutions and other political upheavals. In the 1990s it was Europe’s most profitable bank. How things change. This week the European Central Bank agreed the financial details of (another) bailout package for the banca, which was previously rescued in 2013. Its financial prospects, along with those of the Italian banking system, appear to be deteriorating. One of the main credit rating agencies just put the country on negative outlook – a warning of worsening economic prospects. Italian banks have amassed £290bn in bad loans – around 18% of all loans in the country and one third of bad loans in the euro area. More than 75% of these are loans to companies. Banks cannot … [Read more...] about Will Italy’s failing banks trigger financial collapse across Europe?
(CNN)The final battle to end ISIS's caliphate is now underway as US-backed forces push into the group's last stronghold in Syria. But the predicted victory may be short-lived for Western countries, which will be forced to confront the problem of what to do with their citizens who went to Syria or Iraq to join the militant group. Hundreds of Western ISIS fighters are being held in refugee or detention camps by the Syrian Democratic Forces (SDF) in northern Syria. Many others may still be ensconced in ISIS's last bastion -- which is shrinking by the hour -- in the town of Baghouz Al-Fawqani. Experts say few countries have embassies or extradition treaties with Syria, let alone with the Kurdish-held areas in northern Syria. Nor have they shown any desire to go to the areas where ISIS fighters and families are being held, and put their government representatives in harm's way. So what options are open to Western countries when it comes to dealing with their homegrown militants? Read … [Read more...] about International courts, Guantanamo, citizenship-stripping: What next for Western ISIS supporters?