Citigroup hit by $7.6bn loss January 19, 2010 CITIGROUP yesterday posted losses of $7.6bn (£4.6bn) in the final quarter of the year. Losses for the whole of 2009 were $1.6bn compared with $27.6bn the year before. The fourth quarter results take into account a final government bailout repayment of $6.2bn. After excluding one-off items, the bank recorded a $1.4bn loss in the last [...]
Price of everything going up too fast January 19, 2010 BRITAIN has a credibility problem – and no, I’m not only talking about the government’s hypocritical and self-serving protectionist rhetoric on Cadbury. Yesterday’s inflation figures were even more damaging. The consumer price index (CPI) rate jumped to 2.9 per cent from 1.9 per cent in November; when the Vat hikes kick in, inflation is bound [...]
Fitch warns UK over debt January 19, 2010 CREDIT ratings agency Fitch yesterday warned that the government’s budget deficit reduction plan is too slow. The agency says the Treasury needs to be more aggressive in reducing the spiralling budget deficit, which stands at £178bn. Alistair Darling announced plans to halve the deficit within four years at the Pre-Budget Report last year. Total UK [...]
WHAT THE OTHER PAPERS SAY THIS MORNING January 19, 2010 FINANCIAL TIMES ADONIS TRIES TO LOCK IN TRAIN OPERATORS Train operators who walk away from franchise agreements will face bigger penalties, as part of a package of measures aimed at restoring the system’s credibility following the renationalisation of the east coast main line. Lord Adonis, transport secretary, said in an interview with the Financial Times [...]
NEWS | IN BRIEF January 19, 2010 Deutsche Boerse takes a hit Stagnant US equity options markets killed revenue growth at Deutsche Boerse’s ISE unit last year, forcing it to take an impairment charge that will hit its 2009 net profit by around €200m (£174.5m), Boerse said late yesterday. In a statement sent after the close of trading, the Eurex derivatives exchange [...]
US taxpayers cashing in on AIG bailout January 19, 2010 METLIFE is eyeing a $14bn (£8.56bn) bid for AIG’s American Life Insurance Co in a deal that could repay US taxpayers billions. The rescue of AIG has already reaped huge paper profits for the Federal Reserve and analysts say the sale could enable AIG to pay up to $9bn back into the public coffers. The [...]
Banking bosses divided over Tory plans for sector reform January 19, 2010 BANKING bosses are divided over George Osborne’s plans to overhaul regulation of the industry, City A.M. has learned. The shadow chancellor met twelve banking bosses for lunch yesterday for what one source at the meeting described as a “full and frank” exchange of views. Those in attendance included HSBC chairman Stephen Green, Barclays chairman Marcus [...]
NEWS | IN BRIEF January 19, 2010 Habitat to write off debts Habitat’s owners are set to write off 60 per cent of the furniture retailers debts. New owner Hilco, which bought the company for a nominal sum in return for taking on the businesses debts, plans to convert £53m of Habitat’s £87m debt into equity. The sale involved former owner Ikano [...]
Credit Suisse: Barclays needs extra capital January 19, 2010 BARCLAYS may have to raise £17bn of fresh capital under new proposals put forward by the Basel Committee on Banking Supervision, analysts at Credit Suisse warned yesterday. Analyst Jonathan Pierce said Barclays equity tier one capital ratio – which currently stands at 9.6 per cent – could feasibly fall to around five per cent under [...]
IBM profits rise due to cost-cutting January 19, 2010 COMPUTER giant IBM yesterday raised its profit target for 2010 after posting solid results for its 2009 fourth quarter. Cost-cutting helped the company increase its earnings by nine per cent in the final three months and it made a net profit of $4.8bn (£2.9bn) between October and December, up from $4.4bn a year earlier. Revenues [...]