• UAE rejects support claims for separatist seizure of Yemen's Aden

    The UAE on Wednesday rejected accusations it supported Yemeni separatists in their seizure of interim capital Aden, as the government refused talks with secessionists until they fully withdraw. "We regret hearing today allegations directed against the UAE regarding developments in Aden, which we categorically reject," the UAE's deputy permanent representative to the United Nations, Saud Al-Shamsi, wrote on Twitter. The UAE, a key partner in the Saudi-led military coalition backing the government against northern-based Huthi rebels, "is exerting all efforts to de-escalate the situation in Yemen", he added.


  • Weak growth is highest priority: RBI policy minutes

    Fixing India's weak growth has become the highest priority while a benign inflation outlook has given the central bank room to cut rates although transmission remains inadequate, monetary policy committee meeting minutes showed. The Reserve Bank of India (RBI) lowered its benchmark interest rates for a fourth straight meeting this month with a slightly bigger than expected cut, underscoring its worries about the near-five year low economic growth pace. The six-member monetary policy committee (MPC) cut the repo rate by an unconventional 35 basis points (bps) to 5.40%.


  • Commerzbank Weighs Deeper Cuts as Economy, Rates Hit Stock

    (Bloomberg) -- Commerzbank AG’s strategy update this fall is likely to focus on deeper job cuts and branch closings as the troubled German lender contends with fears of a recession and a slump in the shares.Chief Executive Officer Martin Zielke, whose three-year-old strategy was based on the prospect of a growing economy and rising interest rates, is examining various cost cutting scenarios, some of which include closing hundreds of branches, according to people familiar with the matter. The weaker economy and prospect of even lower rates -- which erode income from lending -- have pushed Zielke to consider options more severe than anticipated, said the people, asking not to be identified in discussing internal planning.A spokesman for Commerzbank declined to comment.Germany’s economic contraction and global trade tensions have thrown a wrench in Zielke’s plan to pivot Commerzbank away from investment banking and toward consumer and corporate lending in its home market. Government-brokered talks about a takeover by Deutsche Bank AG collapsed in April. Commerzbank shares have erased all gains since Zielke first announced his strategy in 2016 and are trading near a record low.Planning for the strategy update, which will set new targets beyond 2020, hasn’t been finalized and the supervisory board won’t discuss the plan until late September, the people said. But Zielke will probably have to give up his commitment to the bank’s vast branch network in Germany, they said. Handelsblatt earlier reported on the discussion to close branches.The bank has about 1,000 branches in Germany. Headcount has fallen from about 43,300 at the end of 2015 to 40,700 in June this year. Commerzbank earlier this year scrapped a previous target to lower that number to 36,000 by 2020, saying it will stay above 38,000.Additional reductions would probably only happen over time because of the strong position of labor unions in Germany, where they have a say in how companies are run. Many of the cuts the bank has already agreed with unions will only take effect this year and next, Commerzbank has said.The plan to cut branches is a departure from previous and oft-repeated pledges by retail head Michael Mandel not to let the number drop below 1,000. He committed to maintaining the branch network as the centerpiece of a marketing campaign that lampooned other lenders -- including Deutsche Bank -- for shrinking their number of outlets.To boost revenue, the bank is considering charging clients new or higher fees for banking services, said the people familiar with the matter. There’s also the option of passing on the European Central Bank’s negative rates to retail clients, but that’s something the German lender has said it doesn’t currently plan to do. Commerzbank says it made up for the impact of negative rates by lending more in the first half of this year, but revenue still fell.Zielke’s team is also considering working with other lenders on digital banking products, one person said. While it’s not yet clear how revenue and costs would be shared, one such potential partner is ING Groep NV, the person said. Speculation of closer ties between the two banks was fueled after Commerzbank named ING executive Roland Boekhout as head of corporate clients, starting next year.The Dutch bank earlier this year had been seen as a potential acquirer of Commerzbank following the breakdown of the talks with Deutsche Bank, but interest appears to have waned now that the economic outlook clouded over. No suitors are currently “knocking” on the German bank’s doors, finance chief Stephan Engels said this month.(Updates with details on previous branch strategy in eighth paragraph.)To contact the reporters on this story: Steven Arons in Frankfurt at sarons@bloomberg.net;Nicholas Comfort in Frankfurt at ncomfort1@bloomberg.netTo contact the editors responsible for this story: Dale Crofts at dcrofts@bloomberg.net, Christian BaumgaertelFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.


  • Is J D Wetherspoon (LON:JDW) Using Too Much Debt?

    Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...


  • Is Intertape Polymer Group Inc. (TSE:ITP) Trading At A 43% Discount?

    In this article we are going to estimate the intrinsic value of Intertape Polymer Group Inc. (TSE:ITP) by projecting...


  • Better Buy: Sirius XM vs. Apple

    The iPhone giant and satellite radio star are masters when it comes to premium music, but let's see which of the two monster stocks over the past 10 years can deliver in the years ahead.


  • FTSE and European shares jump amid Italian coalition hopes - markets latest news

    UK posts worse than expected public finance figures as spending rises Italy's president set to begin talks in a bid to find a new coalition and avoid snap elections Second Chinese suitor emerges as frontrunner to buy 'Boris bus' maker Wrightbus FTSE 100 and Europe's main share indices gain ground after yesterday's losses Boris Johnson should remind Merkel of these four hard economic facts when they meet​ Jeremy Warner: Global leaders are too divided to counter looming economic darkness ​ 2:03PM Public finances: work to do for new Chancellor Sajid Javid? Sajid Javid Credit: Joe Giddens/PA There's now been some time to take a more detailed look at this morning's worse than expected public finance figures.  Tim Wallace has been digging through the numbers, gauging reaction and looking at what comes next for Sajid Javid, the new Chancellor: "This comes even before any post-Brexit budget designed to see the economy through any turmoil after 31 October. As a result the Government may have to rewrite the fiscal rules designed to keep the deficit falling and eventually to balance the books." You can read Tim's full report here:  Budget timebomb: deficit to double as spending outstrips taxes  1:52PM Government bonds: risk-free return or return-free risk? Normally when countries borrow money in the bond market they pay for the privilege. But Germany has today issued 30-year bonds with a coupon - effectively, an interest rate - of zero.  Europe's largest economy didn't manage to sell the full €2bn (£1.8bn) it had hoped but the issuance of bonds that will pay out nothing shows that many investors are struggling to find low risk assets that offer a positive return.  The miserly yields available in the bond market have prompted Chris Bowie at Twenty Four Asset Management to ask: "Have Bonds Ever Been This Expensive?" He points out that the average yield in the bond market today is just 1.46pc, adding:  "The key point with government bonds right now [is that] they might just as easily be described as offering return-free risk rather than risk-free return. They offer no yield (increasingly they offer negative ones), and owning them only makes sense if either further capital gains are expected, or they are held in a balanced portfolio as a risk-off asset acting as a counterbalance to credit risk." 1:15PM Message for Merkel Boris Johnson is set to meet Angela Merkel today. Something tells me there might be a few words exchanged about Brexit.  This excellent piece from my colleague Tom Rees has been attracting a lot of interest from readers today and is well worth a moment of your time. Here's a taste:  "More products enter the UK from Germany than anywhere else, amounting to around $92bn in 2018. That total is higher than the value of goods arriving from France, Italy and Ireland combined. The UK is a huge market for German businesses, being their third-most important in Europe and fifth globally." Read the full story: Boris Johnson should remind Merkel of these four hard economic facts over dinner 12:48PM Greene King takeover a sign of the times Li Ka-Shing is one of the world's richest men.  The takeover of Greene King by Li Ka-Shing's Hong Kong-based investment group is the latest in a string of acquisitions of UK companies and assets by foreign buyers.  What can we expect from the new owners of one of Britain's best known beer companies? Our Banking Editor Lucy Burton has delved into the fascinating story behind the world's 28th richest person: Li Ka-Shing: Who is the Hong Kong 'Superman' taking on British beer? ​The deal also raises question as to which UK-listed company could be next to succumb to a foreign takeover bid. The Telegraph Money team has taken a look at some of the candidates:  Who's next? Three British giants ripe for a foreign takeover 12:08PM More on Ryanair: London hearing expected to last several hours The court hearing in London at which Ryanair will seek another injunction to stop UK-based pilots from striking is reported to be underway.  The hearing is expected to last several hours. We'l bring you any news when we get it.  11:57AM Ryanair welcomes decision by Irish court Credit: PAU BARRENA/AFP The decision by the Irish court means that the 180 Ryanair pilots based in Ireland who had planned to halt work for 48 hours from midnight tonight will now have to turn up for work.  Ryanair had argued that the strike would breach an agreement reached between the airline and its employees after several strikes last summer. The agreement requires disputes to be referred to a mediator and go through a dispute resolution process before the launch of any industrial action.  The budget airline also alleged that the union's ballot of its members was unlawful, which the union denied.  The victory was welcomed by Ryanair, which said the ruling would "come as a huge relief to thousands of Irish passengers and their families during the last week of the school holidays". All Ryanair flights from Dublin, Cork and Shannon airports will now operate as normal on Thursday and Friday, the airline said.  What next for Ryanair's Irish pilots? Ryanair had the following message for Forsá, the union representing the pilots who voted to strike:  "Ryanair calls on the Forsá union, and this small minority of very well paid Irish pilots, to return to mediation... so that any disputes can be resolved without unnecessarily disrupting the travel plans of thousands of Irish passengers and their families." The airline has claimed that pilots earning over €172,000 (£157,500) are seeking pay increases of 101pc.  See my earlier post (8.34am) for more details on the budget airline's different disputes in Ireland, the UK and across Europe. 11:38AM BREAKING: Irish court blocks Ryanair pilots from striking The Irish High Court has granted Ryanair an injunction preventing the carrier's pilots based in the country from going on strike this week.  Remember, a London court will rule separately on whether to grant an injunction to block UK-based pilots from striking.  11:29AM 'Strong economic case' for completing HS2 in full Adam Marshall, director general of the British Chambers of Commerce has given his reaction to the launch of a review into HS2, arguing that there is "a strong economic case for delivering all phases of HS2". Here's what he had to say:  “HS2’s importance goes far beyond train services. Its anticipated completion is already attracting investors and will continue to attract investment to surrounding areas, rejuvenate local economies and create opportunities for businesses across the supply chain.  While no project should have a blank cheque, business communities across the UK will be concerned about the potential for further delays to HS2. This review must work at pace with our business communities to improve and hone this crucial infrastructure project, which is so important to business confidence.”  11:15AM What will the HS2 review mean? The HS2 review is to consider whether the ambitious rail project should go ahead. But the terms of reference also state that it will consider how much "realistic potential" there is for cost reductions by amending the scope of the project. This could include: Reducing the speed of the trains Making Old Oak Common the London terminus instead of Euston, "at least for a period" Building only Phase 1, between London and Birmingham Combining Phase 2a - extending the line to Crewe - with Phase 1 Altering plans for Phase 2b, which currently involves taking the line to Manchester and Leeds The Department for Transportsaid limited, largely preparatory work on the project will continue in parallel with the review. 11:09AM Government launches independent review of HS2 The Government will launch an independent review into HS2 to assess whether and how the high speed rail project should continue.  The review will be led by Douglas Oakervee, the former chairman of HS2 Ltd. Lord Berkeley, a long-term critic of the scheme, will act as his deputy. The review will consider a number of factors relating to HS2, including its benefits, impacts, affordability, efficiency, deliverability, scope and phasing, the Department for Transport (DfT) said.  A final report will be sent to Transport Secretary Grant Shapps, with oversight from Prime Minister Boris Johnson and Chancellor Sajid Javid, later this year. The report will "inform the Government's decisions on next steps for the project", the DfT said. 10:59AM The end of falling budget deficits? Today's public finance data could signal an end to the trend of falling budget deficits in the UK, according to PwC's top economist, John Hawksworth.  "Today's public finance data provide a further indication that the long period of falling budget deficits in the UK since 2009/10 is likely go into reverse in 2019/20. This partly reflects a slowing economy and partly government action to cut taxes from April and ease off on austerity as we approach Brexit. It is still early days in the financial year, but if these trends continue then the budget deficit for 2019/20 as a whole could be higher than the OBR's [Office for Budget Responsibility's] March forecast of £29.3bn, excluding the impact of methodological changes."  10:47AM Government 'opens the spending taps'  Economists and experts have been reacting to this morning's public finance figures. Economist Shaun Richards said the rise in expenditure shows that the spending taps are now open at the Treasury. Okay the takeaway from the UK Public Finances data is that the spending taps are now open with an extra 6.5% being spent by the UK government compared to July last year. GDP— Shaun Richards (@notayesmansecon) August 21, 2019 Rupert Seggins, another economist, has been digging into the specific areas that held back tax income and drove the rise in spending.  3. On the spending side of the coin, it's current spend, staff costs & investment that have been the biggest boosts this year, with the only major downward contribution to overall growth coming from public sector pensions (net of contributions). pic.twitter.com/4BwiUxGvcM— Rupert Seggins (@Rupert_Seggins) August 21, 2019 10:36AM UK public finance figures disappoint The UK's public finances were in surplus by £1.3bn in July compared to a £3.5bn surplus in the same period last year. The surplus was less than half of what a Reuters poll of economists had predicted.  July is traditionally a strong month for the exchequer due to the timing of tax receipts from self-assessed individuals. Government spending jumped 4.2pc during the month but income dropped 0.5pc despite a rise in income tax and VAT receipts.  Total borrowing so far this financial year has reached £16 billion putting the UK on course to miss its borrowing targets for the year. Here's the Office for National Statistics, which published the figures: Borrowing in the current financial year-to-date (April 2019 to July 2019) was £16 billion, £6 billion more than in the same period last year https://t.co/Vgs4aMMrB4pic.twitter.com/YvIblKHxvf— Office for National Statistics (@ONS) August 21, 2019 10:21AM Transatlantic mergers slump British defence company Cobham is currently the subject of a £4bn takeover bid from US private equity group Advent. Our mergers and acquisitions reporter, Vinjeru Mkandawire, has been taking a look at the latest figures: The number of transatlantic mergers and acquisitions (M&A;) between the US and UK fell by nearly a quarter in the first half of this year, according to research by Deloitte. This was on the back of an 18pc decline in global dealmaking, which was partly driven by increasing uncertainty around trade tariffs and the global economy, the firm said. Transactions between the US and the UK were down 20pc compared to 2018 but still exceeded the combined number of deals between the US and Germany, France and Spain.   Deloitte’s Paul Lupton said that despite the fall in transatlantic deal volumes across many of the major European markets, there was still “strong appetite” for technology assets, which accounted for 28pc of all US-UK deals in the first half of the year.  “This is attributable to the asset‑light business models which enable greater potential for geographical expansion and scalability,” he said. 10:12AM Goldman Sachs predicting a 'very volatile' three months for Italian economy Credit: ALBERTO PIZZOLI/AFP Economists at Goldman Sachs are predicting a bumpy few months for Italy's economy.  "In our view, the next three months will be very volatile and challenging for the Italian economy and its assets." They are also predicting a delay to the preparation of next year's budget if a new coalition cannot be formed and fresh elections have to be called.  9:59AM What next for Italy? The political upheaval in Rome has come at an awkward time for the country, as Berenberg's European economist Florian Hense has observed:  "With the submission of the 2020 budget to the Italian parliament and European Commission looming by 30 September and 15 October, respectively, the timing is unfortunate: Italy needs to find more than €20bn (£18.3bn) in savings to avoid the already legislated rise in the VAT by 3 percentage points in 2020." Berenberg has set out the three most likely scenarios for Italy:   1. Italy avoids snap elections for at least nine months: Five Star join forces with the Democratic Party (PD) for a new centre-left government, probably with Giuseppe Conte returning as prime minister. Markets could rally if the short-term uncertainty of snap elections is averted. The centre-left coalition could then focus on agreeing a budget and compromises with the EU over its deficit.  2. No poll for now but elections in early 2020: President Sergio Mattarella appoints a technocratic government to draw up the 2020 budget, with snap elections to follow early next year. Five Star and the PD could support the move as it would shield them from having to announce painful adjustments to the 2020 budget themselves. This option could avoid a volatile reaction from markets.  3. Snap elections later this year: The final option is for Mattarella to call snap elections for late October or early November. Current opinion polls suggest far right Matteo Salvini would likely win and become prime minister. A Salvini government could set Italy on a collision course with the EU over its budget. Bond yields could surge, driving up Italy's cost of borrowing.  9:36AM Italy seeks a new coalition in a bid to avoid fresh elections Italian president Sergio Mattarella (left) will try to find a viable coalition government after Giuseppe Conte (right) resigned as prime minister yesterday Credit: FILIPPO ATTILI HANDOUT/EPA-EFE/REX Italian president Sergio Mattarella will begin intensive talks with the country's political leaders today as he seeks to determine whether a new ruling coalition can be found after prime minister Giuseppe Conte resigned yesterday.  If a coalition cannot be found, Matarella will be forced to call fresh elections.  Conte resigned just over a year after agreeing to lead a populist alliance of the League party, led by Matteo Salvini, and the Five Star Movement. Mattarella, whose role as president is normally a largely ceremonial one, has the sole power to appoint governments and call elections. He is ready to give Five Star and the opposition Democratic Party, or PD, time to strike a deal. But he will allow them days, not weeks, to reach an agreement, Italian media reported.  The talks are set to begin this afternoon.  Rome's FTSE MiB index fell 1pc yesterday but has risen a healthy 1.46pc so far today.  8:59AM Fiat-Renault merger hopes buoy markets Credit: Eric Gaillard/REUTERS A report in Italy about continuing merger talks between Fiat Chrysler and Renault has helped to push shares in the car industry higher. The pair abandoned talks on a mega merger in June after meeting resistance from the French government, which is a major shareholder in Renault.  Take a look at the long road that led to Fiat Chrysler to propose a tie-up with the French manufacturer:  Timeline - Fiat Chrysler Automobiles For more on why we're seeing a wave of deals in the car industry, take a look at Alan Tovey's long read from the weekend: Automotive industry alliances: who's joining forces with who and why? 8:50AM A strong start for European shares European stock markets have enjoyed a strong start to the day, with all of the major indices gaining ground. Here’s how the continent’s blue-chip bourses stood as of about 15 minutes ago: The FTSE 100 was 0.5pc up France’s CAC 40 was 0.75pc up Germany’s DAX was 0.5pc up Spain’s IBEX was 0.75pc up Italy’s FTSE MiB was 1.19pc up Remember you can use our handy Markets Hub tool at the top of the blog to keep tabs on the latest stock market and currency movements! 8:34AM Ryanair - what's happening today? There's a lot to keep track of in this Ryanair story so this might help:  When are the strikes? Pilots in the UK and Ireland are planning separate 48 hour stoppages starting from midnight tonight in disputes over pay and conditions.  What's happening in the London courts? An application by the airline for an injunction to block UK pilots striking is to be heard by a judge in London on Wednesday.  What's happening in the Irish courts? The Irish High Court will rule on whether to grant the airline an injunction to block the planned strike by 180 pilots based in Ireland.  Anything else? Quite a bit, actually. The airline is also facing a wave of strikes over the next month by staff across its Spanish and Portuguese bases. The first Portuguese strike action is set to begin today. Belgian unions have told members not to comply with the carrier's request for them to staff flights that have been hit by the Portuguese industrial action.  And the share price? It's dropped 17pc in the past month.  Markets Hub - Ryanair Holdings 8:21AM Ryanair could attempt to break strikes Ryanair has been drawing up plans to keep as many services as possible in operation if it fails in its legal action. Just in from our transport correspondent Oliver Gill: One senior insider has told me @Ryanair has contingency plans in place to run all, or nearly all, UK flights even if the legal action fails and strikes go ahead. This will be announced after the High Court decision this morning.— Oliver Gill (@ojngill) August 21, 2019 8:15AM Ryanair's last ditch bid to avoid strike chaos Parked Ryanair planes will be a common sight in the next couple of days if strike action proceeds.  Credit: ALBERTO PIZZOL/AFP Ryanair should learn this morning whether its request to block 180 of its Irish pilots from striking tomorrow and Friday has been successful. The Irish High Court is due to issue its decision on whether the 48 hour stoppage can proceed.  Ryanair claims that the strike action breaches an agreement it reached with the union last year. The budget airline also claims that  the union has failed to submit detailed proposals ahead of balloting its members or issuing its strike notice and that the industrial action is timed to cause maximum disruption by coinciding with a scheduled strike by UK pilots.  We'll keep you up to date on developments throughout the day.  7:59AM Facebook moves to address privacy concerns Credit: Dado Ruvic/REUTERS Facebook is launching a long-promised tool that lets users limit what information the social network can gather about them on external websites and apps. The move is an attempt by tech firm to head off criticism of its privacy practices which have been heavily scrutinised in the wake of the Cambridge Analytica scandal.  Facebook said it is adding a section where users can see the activity it tracks outside its service, including through its "like" buttons. Users will be able to turn off the tracking.  The feature has been launched in South Korea, Ireland and Spain and is due to be rolled out in other markets in the "coming months".  7:37AM Ryanair in bid to stop pilot strikes Ryanair is going to the High Court today in an attempt to block Thursday's strike action. An application by Ryanair for an injunction is to be heard by a judge in London on Wednesday. In Ireland, Ryanair has also sought an order at the High Court in Dublin to prevent around 180 pilots based in Ireland from going on a 48-hour strike from midnight on Thursday. The application was contested by Forsa, the parent union of the Irish Airline Pilots Association. A judge is expected to give a ruling on Wednesday morning. 7:22AM Boris heads to Boris, while crisis reigns in Italy Good morning. Equities across Europe were lower yesterday amid political uncertainty, not least in Italy where prime minister Giuseppe Conte said he would resign. The pound went in the opposite direction after comments from Angela Merkel that Europe would think about practical solutions to the current Brexit impasse were interpreted as a chink of light in the stand-off between Downing Street and Brussels. Today the German Chancellor will be meeting with Boris Johnson in Berlin.  5 things to start your day 1) Second Chinese suitor emerges as frontrunner to buy 'Boris bus' maker Wrightbus: One of China’s biggest engineering companies has emerged as the frontrunner in the race to save “Boris Bus” maker Wrightbus. Weichai, part of giant state-owned conglomerate Shandong Heavy Industry, is in detailed discussions to buy the struggling bus company, The Daily Telegraph has learnt. 2) Shareholder revolts at annual meetings have “little impact” on restraining runaway pay across FTSE 100 companies, despite a fall in the average salary paid to chief executives last year, according to the CIPD and the High Pay Centre. Between 2014 and 2018 shareholders approved all FTSE 100 company pay policies presented at an AGM, with most votes sailing through, a report by the association for human resource professionals and the think tank found. 2018 income figures for the CEOs of the FTSE 100   3) Yellowhammer port chaos is not even Project Fear: it is slapstick, writes Ambrose Evans-Pritchard. The Yellowhammer report excited my interest because it makes extraordinary warnings about ports in a no-deal Brexit, and I happen to have been talking to port officials over the past two weeks. These included the Boulogne-Calais chief and the head of the UK’s biggest port complex on the Humber. My conclusion is that the Yellowhammer section on ports cannot be true. 4) Britain is a touch richer than previously realised after new sums by the Office for National Statistics added an extra £26bn to annual GDP. The Government and charities replace buildings, machinery and other capital more frequently than expected, businesses develop more software in-house than was known, and services exports are larger than had been appreciated. 5) Lucy Burton finds out who the Hong Kong 'Superman' that's taking on British beer is: Hong Kong's richest man Li-Ka Shing. The 91-year-old was determined to change his circumstances from a young age, telling Forbes in 2010 that the "burden of poverty and this bitter taste of helplessness and isolation" that he felt as a child drove him on in adult life. He is the 28th richest person in the world with a net worth of around $32bn.   What happened overnight Asian shares flatlined on Wednesday as investors took a step back after recent gains, with focus now turning to a key speech by Federal Reserve boss Jerome Powell at the end of the week. Rising hopes for China-US trade talks have provided a much-needed lift to markets over the previous two days but with few fresh catalysts, dealers are keeping their powder dry ahead of Friday's address. After positive signals from Donald Trump and some of his top advisers on Monday over progress in the talks with Beijing, and an olive branch with the delay of a ban on Huawei purchases, there have been few developments for traders to buy on. "Our trade-war headline-inspired relief rally appears to have run its course as I suspect there is still a lot of nervousness among US investors as the global economic realities are just too hard to ignore," said Stephen Innes at Valour Markets. With so much riding on the Fed, investors were understandably anxious. MSCI's broadest index of Asia-Pacific shares outside Japan dithered either side of flat after three straight days of gains. Japan's Nikkei slipped 0.3%, while Shanghai blue chips added a slim 0.06%. Hong Kong stocks went into the break slightly higher after swinging throughout the morning. The Hang Seng Index added 0.11 percent, or 28.98 points, to 26,260.52. Coming up today Interim results: Charter Court, Costain, Hansteen Holdings, Hostelworld, OneSavings Economics: Public sector net borrowing (UK), mortgage applications and house sales (US), Federal Reserve minutes


  • How Much Of Helgeland Sparebank (OB:HELG) Do Insiders Own?

    If you want to know who really controls Helgeland Sparebank (OB:HELG), then you'll have to look at the makeup of its...


  • Paxful founder makes wild proposal to destroy Satoshi Nakamoto's Bitcoin

    Paxful CEO Ray Youssef puts forward a radical idea to quell discussion over Satoshi Nakamoto once and for all.


  • Largest‌ ‌gift‌ ‌card‌ ‌exchange‌ ‌in‌ ‌Japan‌ ‌to‌ use‌ ‌blockchain‌

    Japanese gift exchange giant says blockchain will help streamline the gift card industry.


(ARA) - Being protective goes hand-in-hand with being a parent. From hand sanitizer gel to bike helmets to high-tech car seats, moms and dads will go to the ends of the earth to keep their little ones safe, sound and happy. But eventually, the scrapes and bruises no longer need a healing kiss, the training wheels come off the bike and the day comes when they're driving to school - not just high school, but college. You might be surprised, but there are actions you can take now that will protect them then - and even beyond.

It's not uncommon for new parents to consider adding life insurance coverage to the other policies that they carry, like car and health insurance. It can be a difficult thing to think about, but it's an added protection that will ensure that kids and the surviving spouse will be taken care of in the event that one parent dies. However, there are other ways in which a life insurance policy can make a difference for your child.

It might not be something that immediately comes to mind, but taking out a life insurance policy for your children could have lasting benefits for their financial future. However, doing so when they are still young could not only add up to cost savings over the long term, but better protection of their assets as they themselves get to an age at which they'll consider a family of their own.

In practical terms, giving your children the gift of a life insurance policy protects them from medical underwriting and high costs. You'll be establishing the coverage early enough that costs will be lower, particularly in the initial stage, and it can help to keep them manageable further down the road, depending on the plan.

Over the years, a life insurance policy can become an important part of your children's financial protection. And once they're at the right age to have the discussion about how to be financially responsible, it can be a helpful example, among other lessons like establishing good credit and smart spending habits.

Some insurance plans will allow your child to make changes as their life progresses, giving them the chance to increase coverage as they go through life's milestone events, like getting married, taking out a mortgage to buy a house and having children of their own. Premiums will naturally increase with added coverage, but the added costs associated with medical underwriting will be eliminated.

Looking out for your kids is an instinct that will never fade. As they grow, you'll help guide them on the right path in life, but at some point, they'll be off on their own. Giving them long-term protection when they're young will ensure that you're helping to watch out for them, long after they've left the nest.Life insurance for kids: Long term benefits come from early investment
Category: Business