FRANCE WARNS OVER EURO CRISIS
France has warned that European unity would be at risk if Eurozone leaders failed to take bold action to tackle its sovereign debt crisis at a crucial summit this weekend. President Nicolas Sarkozy said leaders will take “very important decisions in the coming days” and said the destruction of the euro will risk “conflict and division” in Europe.
GILT BUYING COULD HIT PENSIONS
The Bank of England’s moves to stimulate the economy by purchasing gilts may raise the liabilities of company pension schemes by as much as £25bn to £30bn, according to Lindsay Tomlinson, the outgoing chairman of the National Association of Pension Funds. Liabilities rise when interest rates fall because inflation is assumed to erode future obligations at a slower rate.
DROPBOX CLOUD RAISES $250M
Dropbox has raised $250m in new funding in a deal that values the digital file-sharing service at $4bn. The firm Dropbox has rocketed in popularity among users and investors. Its service allows people to access documents, music and videos from whatever device they are using, and to store them in a so-called internet cloud. The company plans to launch new products, make acquisitions and increase staff from 70 to 200.
DOMINO’S BEATS EXPECTATIONS
Domino’s Pizza group delivered better-than-expected quarterly profit and said it is optimistic about sales of its new “artisan” pizzas, sending its shares up almost 8 per cent in New York. The pizza delivery chain said Q3 sales at restaurants open at least a year were up 3 per cent in the US and up 8.1 per cent internationally. Analysts said the growth in same-restaurant sales, a gauge of performance, topped their targets.
FIRMS SHUN ON RBS AND LLOYDS
Companies are cutting their business with Royal Bank of Scotland and Lloyds amid fears that the cost of borrowings will rise after the recent ratings downgrade by Moody’s. The Association of Corporate Treasurers told MPs that corporate borrowers had already begun talking to rival Japanese banks keen to secure a stronger foothold among British businesses.
FRENCH FURY OVER DOING UP RITZ
Mohammed Al Fayed set off a storm of protest in France yesterday when he announced the closure of the Ritz for 27 months while it undergoes a renovation. The hotel, where Diana, Princess of Wales, was staying on the night she died said that all but a few dozen of its 500 staff would be laid off. Union official Jacques Lebreton said staff should be allowed to return.
The Daily Telegraph
GLAXO DRUG HALVES MALARIA RISK
GlaxoSmithKline’s trial malaria vaccine halved the risk of African children getting malaria in trials, but the drug giant has said it will not make a profit from the vaccine. GSK, along with African research centres and the PATH Malaria Vaccine Initiative, is researching a vaccine to protect children against the mosquito-borne disease, which is responsible for almost 800,000 deaths each year.
ICB REPORT ASTONISHES ME - LAWSON
Former chancellor Lord Lawson has launched a scathing attack on the Independent Commission on Banking’s final report, saying he was “astonished” by some of its proposals. He questioned Sir John Vickers and said he was surprised the commission had not urged the full separation of retail and investment banking and had supported “one-stop shops”.
THE WALL STREET JOURNAL
VIACOM SEEKS TO REVIVE LAWSUIT
A judge’s order dismissing an infringement lawsuit against Google’s YouTube last year should be overturned because it endangers the rights of owners of television shows and other copyrighted materials, a lawyer for Viacom said. Viacom is seeking to revive its lawsuit over alleged unauthorised posting of its content on the video-sharing site.
GRUPO MEXICO OWES $1.3BN - JUDGE
Delaware judge said Grupo Mexico SAB owes more than $1.3 billion to minority shareholders of its Southern Peru Copper unit in a case stemming from a corporate restructuring that contributed to the bankruptcy of another of its mining subsidiaries, Asarco. Leo Strine of Delawares Court of Chancery said Grupo Mexico is on the hook to SPC's minority shareholders