Payday payback time
Regulation hits
Wonga has reported its first annual loss, after regulation was ramped up in the controversial payday loan industry. The company suffered a net loss of £42.8m after revenues slipped by almost a third on a reduction in consumer lending, which was compounded by internal infrastructure spending and regulatory costs. At the time of the results the management said it would take time to repair the company's reputation and create a sustainable business. Earlier this year, Wonga reported its decision to halve its UK workforce, in a loss of 325 jobs, in an attempt to save £25m over two years.
European powerhouse
Forecasts upgraded
The German government has raised its 2015 growth forecast for Europe's largest economy to 1.8 per cent from a previous forecast of 1.5 per cent. A rise in private consumption in step with rising employment and wages was seen as driving this upswing. Economy minister Sigmar Gabriel signalled that rather than cutting taxes, Berlin would look to invest in education, research and infrastructure to boost its medium-term growth prospects.
Unwelcome records
IBM sales continue fall
US technology giant IBM has seen its sales fall for a 12th straight quarter, despite attempts by management to turn around the group's fortunes by selling its struggling chip business. The strength of the US dollar made up two-thirds of the 12 per cent revenue slump in the first three months of the year, with the rest made up of business divestments. The group was bolstered by the increase in revenue coming from its cloud and analytics services, but had to defend its decision to license its technology to computer makers in China as it looks to build its presence in the region.
Shrinking banks
Lenders consolidate
Planning continues at the world's largest banks to shed less profitable operations and to reduce balance sheets in a tougher regulatory environment. Deutsche Bank is reported to be considering divesting its retail operation, Postbank, within the next 18 months to focus on its remaining retail business. A second, more radical option is to split Deutsche's retail banking business from its investment banking and fund management arm. HSBC also hit the business pages with plans to withdraw from loss-making operations in Turkey and Brazil, the latter being its largest Latin American market.
Rolls-Royce CEO departs
Shift after difficult 2014
Rolls-Royce surprised markets by announcing the imminent retirement of its chief executive John Rishton, following a difficult 2014 for the engineering giant. After a combined 14 years as chief financial officer and in the top job, Mr Rishton said he was looking for a "change of lifestyle". He will be succeeded by Warren East, who was the chief executive of chipmaker Arm from 2001 to 2013. The company issued a spate of profit warnings last year as falling defence spending and commodity prices were compounded by global economic uncertainty, which saw revenue fall by 6 per cent.
Rates staying low
BoE unanimous
The minutes of the latest Bank of England monetary policy committee meeting showed members were unanimous on keeping interest rates at their historic lows, although two of them agreed the decision was "finely balanced". There was also agreement among members that it was "more likely than not" that Bank rate would rise over the three-year forecast period. The big question is when the US Federal Reserve will act, where weaker than expected economic data has dampened expectations of a rate rise in 2015.
