In this week's roundup, we look at a significant shares drop for Tesla following a downgrade by Goldman Sachs, a survey highlighting fears that the Eurozone could be set to lose a member in the near future, a warning that the state pension age could be set to rise higher than the average male lifespan in the poorest areas of the UK, and figures showing that the ombudsman's workload is still dominated by PPI.
Tesla shares drop after downgrade
Shares in Tesla fell by 4.2% on Monday after Goldman Sachs downgraded the electric carmaker from 'neutral' to 'sell'. The downgrade came amid concerns that production of the company's new Model 3 vehicle may be delayed, as well as worries regarding the amount being spent on its launch.
The drop means that shares have tumbled by 11% since worries about the production of the Model 3 were raised when Tesla published its quarterly report last week. However, shares are still up by 14% in 2017 and, since early December, have climbed by more than 30%.
Survey reveals Eurozone member loss fears
A new survey has highlighted increased fears that the Eurozone could be set to lose another member state. Carried out by the Sentix research group, the poll revealed that the number of investors expecting at least one state to leave the zone in the coming months has risen to one in four.
Based on a survey involving around 1,000 institutional and retail investors, the 'Euro break-up' index from Sentix now stands at 25.2% and is up on the 21.3% recorded in January.
Manfred Huebner, Researcher at Sentix, said: "After two years absence, the euro crisis is back in the spotlight... however, this time is different. The protagonists have multiplied as France and Italy now join Greece as likely exit candidates."
State pension age to climb higher than average male lifespan?
The Work and Pensions Committee has warned that, in the UK's poorer areas, the state pension age could be set to rise higher than the average male lifespan. It explained that the age may have to climb above 70 in order to maintain the current policy of increasing the pension.
This policy, which the government has committed to until at least 2020, sees the state pension increasing each year based on whichever is highest out of the inflation rate, average earnings or the 2.5% mark.
With the help of the Institute for Fiscal Studies, the committee found that in order to maintain the policy, the state pension age would have to increase to 70.5 years by 2060. This figure is currently lower than the average male life expectancy in a number of the poorer areas of the UK.
PPI 'still the main grievance dealt with by the ombudsman'
Complaints about the mis-selling of payment protection insurance (PPI) continue to be the main grievance dealt with by the Financial Ombudsman Service. The body has revealed that of the 150,000 new complaints it received in the six months to December 2016, 78,000 concerned PPI policies.
The ombudsman, which attempts to settle complaints that financial firms have not been able to solve, warned that while the number of PPI complaints it has received are actually down, this could be "the calm before the storm".
This is because the Financial Conduct Authority could be about to set a deadline of June 2019 for settling PPI claims. Caroline Wayman, Chief Executive of the Financial Ombudsman Service, warned that the proposed deadline would likely "heavily influence" the number of complaints it deals with.
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