AIRLINE FINANCING RIFT DEEPENS
Ryanair and Emirates have taken the unusual step of joining forces with eight other airlines as a multibillion-dollar row over aircraft financing starts to split the world’s largest airlines into two rival camps. The Irish budget airline and Dubai’s Emirates normally shun industry alliances. But yesterday they revealed they had teamed up with carriers such as Etihad of Abu Dhabi, Korean Air, Norwegian and Australia’s Virgin Blue to block what they say are dangerous attempts to curb the use of export credit agency backing for passenger jet purchases.
VILIFIED LENDERS LAUNCH CHARM OFFENSIVE
Britain’s high street banks could pledge to lend £180bn each year to British companies, commit £1.5bn to David Cameron’s “Big Society Bank” and promise a broad cut in bonus levels as part of a package of measures intended to end the war between politicians and bankers that has raged since the crash of 2008.
US TECH LEADERS RAISE THE STAKES ON PAY
Some of the world’s biggest technology companies are lifting pay rates and taking other measures to retain and encourage employees, reflecting both improved performance in their businesses and heightened competition for workers with the right experience. Hewlett-Packard said this week on an internal blog for employees that it would reverse across-the-board cuts to base salaries that had been ordered by former chief executive Mark Hurd in February 2009. That followed Google’s decision earlier to grant its workforce a 10 per cent rise, and Intel’s message that 2011 bonuses would be the highest in a decade.
DEVELOPING STAFF IS NOT A WASTE OF MONEY
Poor people management, under-trained leaders and ineffective communication are limiting the ability of some international aid and development agencies to deliver efficient services, according to a study of leadership and talent development in the sector. “Too many agencies still celebrate mediocrity,” says the report, which was commissioned by the Centre for Creative Leadership.
WIDOW OF FUND MANAGER SUED OVER MADOFF LINK
The trustee seeking compensation for victims of Bernard Madoff’s $65bn Ponzi scheme has sued Claudine de la Villehuchet – the widow of an investment manager – who committed suicide over his involvement in the scam.
THE Daily Telegraph
EUROZONE’S €440BN RESCUE FUND DOES NOT NEED TO BE BIGGER, SAYS BRUSSELS
Brussels denied reports that policy makers are considering doubling the Eurozone’s €440bn (£373bn) rescue fund to cover more struggling member countries. The European Commission, which heads up the EU, has suggested that the size of the European Financial Stability Facility (EFSF) be increased, amid fears it might not be able to accommodate Spain
HOME BUYERS SEE MORTGAGE RATES RISE ON NEW DEALS
Home buyers will see their mortgages increase when their initial deal comes to an end, Britain’s biggest lender has warned. Halifax is introducing a new standard variable rate of 3.99 per cent for all customers taking out a home loan from the New Year.
THE WALL STREET JOURNAL
FIAT TRIES TO BOOST SUV SHARE
Fiat plans for a midsize sport-utility-vehicle tailored for families with children marks its latest effort to expand in a market where its presence is still small. The Sports Utility Vehicle, which will be based on the Dodge Journey of its American partner Chrysler Group, is the first model from Chrysler that Fiat has chosen for its namesake brand in Europe since forming its partnership with the company in 2009.
HANA SIGNS $4.1BN DEAL FOR KEB STAKE
Hana Financial Group chairman Kim Seung-Yu said yesterday that the company could fund its 4.689 trillion ($4.1bn) purchase of a controlling stake in Korea Exchange Bank with a mix of retained earnings, debt and investment from a potential strategic partner.