GMAC knocked by toxic mortgage writedowns February 4, 2010 GMAC Financial Services, which is majority-owned by the US government, said yesterday it swung to a $5bn (£3.2bn) loss in the fourth quarter after writing down bad mortgage assets. That compares with a net profit of $7.5bn in the fourth quarter of 2008. GMAC said in December it did not expect to record more major [...]
Northern Bank sets aside £169m to cover bad loans February 4, 2010 NORTHERN Bank, the Belfast-based lender, has reported a £100m loss. The deposit-taker posted an operating profit of £68.6m but had to set aside £168.7m to cover toxic loan losses, most of them on property. Chief executive Gerry Mallon said so far only £7.6m had been written off on debts: “Given the local climate, we had [...]
LVMH gives a boost to luxury goods sector February 4, 2010 LVMH, the owner of luxury retailer Louis Vuitton and champagne house Moët & Chandon, yesterday said like- for-like sales in the fourth quarter of the year grew one per cent after achieving record sales in December. The Paris-based group said profit from recurring operations fell to €3.35bn (£2.9bn), down eight per cent from €3.63bn in [...]
CITY VIEWS: ARE YOU CONCERNED ABOUT POWER SHORTAGES IN THE FUTURE? February 4, 2010 IAN JACKSON | IROKO SECURITIES “I’ve fixed my electricity bills for the next three years, but it all depends on what happens after that. Energy bills are going up every day, so who knows what will happen in five years’ time? As the consumers, I’m sure we’ll have to bear the brunt.” MARK YALLOP | [...]
Blackrock settles on City for London base February 4, 2010 BLACKROCK, the investment management group in which Barclays owns nearly 20 per cent, yesterday beat off Macquarie Bank to land a 25 year deal to base its London operations at Drapers Gardens in the City of London. The deal, which will see Blackrock paying £49 per square foot with a three year rent-free period, was [...]
Dubai World eyes a rollover of its $1.2bn Islamic loan for Limitless February 4, 2010 Dubai World will seek to roll over a $1.2bn Islamic loan at its Limitless property unit due in March but it is unclear whether banks will agree in the absence of a standstill agreement. The state-owned firm, which rattled global markets when it requested a delay on $26bn of debt linked to its main property [...]
Airbus urged to seek a funding cure for A400M February 4, 2010 France and Germany called for an urgent solution yesterday to the funding crisis surrounding the A400M troop plane, Europe’s biggest military project, as Airbus resumed talks with government buyers. The €20bn (£17.4bn) project is four years late and €11.2bn over budget, threatening up to 10,000 jobs. EADS unit Airbus is appealing to a group of [...]
Burger King sees sales rise on cheap offers February 4, 2010 FAST-FOOD chain operator Burger King Holdings yesterday posted quarterly results that topped analysts’ views, helped by its $1 double cheeseburger offer, more restaurants, lower taxes and deflated food costs. The home of the Whopper reported net income of $50m, or 37 cents a share, for the second quarter ended 31 December. That was up from [...]
Sony returns to profit after cutting costs February 4, 2010 Sony’S first profit in five quarters yesterday showed a restructuring at the electronics maker is starting to pay off as it halved its annual loss forecast on a rebound in its flat-TV business and cost cuts. Third quarter to December profit was also driven by its insurance division, whose investments were buoyed by a recovery [...]
Bank of America hiring spree buoys Merrill Lynch Asia arm February 4, 2010 Bank of America (BofA) has embarked on a major hiring spree across Asia, aiming to expand in the fast growing region and revive the investment banking franchise that Merrill Lynch built before the financial crisis. The push is a surprise to rivals who thought the bank would focus more on rebuilding its US business and [...]