In our roundup this week we discuss the Co-operative Bank putting itself up for sale, new findings suggesting pensioner incomes are greater than those of working families, reports claiming young men of today are earning less than their predecessors and a record loss for jet engine maker Rolls-Royce.
Co-operative Bank put up for sale
The Co-operative Bank has announced it is putting itself up for sale after difficulties in trying to meet regulatory capital requirements. The bank, which is 20% owned by the Co-operative Group, has struggled to improve its finances due to low interest rates.
It has not made a profit since 2011 and said it still expects to make a significant loss this year despite reducing its cost base by around one-fifth since 2014. In 2013, the bank was saved from collapse by a group of hedge funds.
The lender stated: "Having concluded its annual planning review, the board is today commencing a sale process, inviting offers for all of the issued ordinary share capital in the bank."
Resolution Foundation: Pensioner incomes higher than working families
Pensioners in the UK are typically enjoying a higher income - minus housing costs - compared to working age people. This is according to new findings from the Resolution Foundation, which revealed the average pensioner household is now £20 a week better off than working age households.
Entitled As Time Goes By, the report found that while income among pensioners has increased by more than 30% since 2001, income growth for working age people has been much weaker.
Adam Corlett, Economic Analyst at the Resolution Foundation, commented: "The main driver of pensioner income growth has been the arrival of successive new waves of pensioners, who are more likely to work, own their home and have generous private pension wealth than any previous generation."
Men in their 20s 'earning less than before'
New findings from the Resolution Foundation have shown that men in their 20s are earning less than that earned by the previous generation. The figures showed that, compared to men born between 1966 and 1980, those born after 1980 are likely to have earned £12,500 less on average by the age of 30.
The report cited the changing nature of work as a primary reason for the change, with males today more likely to be working in basic serving roles or working part-time.
Executive Director at the Resolution Foundation Torsten Bell said: "The long-held belief that each generation should do better than the last is under threat. Millennials - those born between 1981 and 2000 - are the first to earn less than their predecessors."
Rolls-Royce posts record £4.6 billion loss
Rolls-Royce has posted a record loss before tax for 2016. The jet engine maker reported a £4.6 billion loss and cited the drop in the pound and a bribery settlement as reasons for the fall.
The company recently agreed to pay £671 million to authorities in the UK and the US to settle corruption cases, while the fall in the pound following the UK's decision to leave the European Union last year has resulted in it writing off £4.4 billion from currency-related contracts.
Warren East, Chief Executive of Rolls-Royce, said: "While we have made good progress in our cost cutting and efficiency programmes, more needs to be done to ensure we drive sustainable margin improvements within the business."
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