LENOVO FOUNDER LIU STEPS DOWN AS CHAIRMAN
The man who founded Lenovo and built it into the world’s second-biggest PC maker by sales has retired as chairman, handing over to his chief executive, in a sign of confidence that its recent turnround is on track. The retirement of Liu Chuanzhi came as Lenovo’s net profit of $144m in the three months to September beat expectations by soaring 88 per cent compared with last year, on strong PC shipments.
SEC EXPECTS TO FILE FURTHER CDO CHARGES
The Securities and Exchange Commission expects to file charges against more Wall Street firms related to the sale of mortgage-linked securities, with hopes of wrapping up probes from the financial crisis in the near term, according to a senior enforcement official.
OSBORNE LOOKS TO SLASH BENEFITS BILL
George Osborne is looking at options to cut billions of pounds from next year’s benefits bill by scrapping inflation-linked rises, in a move that could trigger a fierce cabinet clash.
The chancellor is alarmed at the political and economic difficulties presented by the fact that benefits and pensions next year would rise by 5.2 per cent, in line with the bumper inflation figure for September, the base month for the calculation.
KRAFT PRESSES AHEAD WITH PLANS TO SPLIT
Kraft, the largest US food company by revenues, said on Wednesday it was pressing forward with its plans to split the company and that it would announce leadership teams for the independent businesses by the end of the year. The name of the snacks company will be voted on by shareholders.
BROMPTON SALE COULD RAISE £500M
The Royal Brompton Hospital is considering a sale of its prized Chelsea home in a move to secure its long-term future. The Times understands that the Royal Brompton & Harefield NHS Foundation Trust has instructed Savills, a property adviser, to review its future options for the seven-acre site. One option it is considering is a sale of the freehold, which could raise hundreds of millions.
NETWORK RAIL FACES PUNCTUALITY FINE
Network Rail faces a potential fine of £500 million because of worsening punctuality of passenger trains and freight services. The rail regulator is deciding whether the expected failure of Network Rail to meet its performance targets this year is in breach of the publicly funded company’s licence.
The Daily Telegraph
EVERYTHING EVERYWHERE SET TO AXE 600 STAFF
Everything Everywhere is to axe 600 staff, in the third round of redundancies under its new chief executive Olaf Swantee. The company, formed 18 months ago from the merger of Orange and T-Mobile, said the cuts would affect employees at its sites in London, Bristol, Hatfield and Darlington, who were briefed on Wednesday about the changes.
CUADRILLA ADMITS DRILLING CAUSED BLACKPOOL EARTHQUAKES
Private company Cuadrilla Resources has admitted that its activities probably caused two “seismic events” that occured in Blackpool earlier this year. In April, a tremor measuring 2.3 on the Richter scale was felt in the Lancashire seaside resort, followed by an event in May that measured 1.5 on the scale.
THE WALL STREET JOURNAL
TURKEY’S MOVES EXPECTED TO HURT BANK PROFITS
Turkey’s tightly regulated banks, which have been raking in record profits, are expected to show a change of fortunes as a monetary policy focused on curbing bank lending, coupled with falling consumer demand, erodes margins. Turkey’s central bank last week effectively doubled the interest rate it charges banks.
TOYOTA READY TO CONCEDE LEXUS’S SALES CROWN
The head of Toyota Motor’s Lexus brand said global sales of the upscale vehicles will likely fall short of last year's total, with the brand set to lose its long-held status as the top-selling luxury car in the US. He blamed the likely fall on a combination of natural disasters in Japan and Thailand, a stronger yen against the dollar and tougher competition.