Eurozone economy shrinks more than expected in second quarter October 7, 2009 THE Eurozone economy shrank by slightly more than expected in the second quarter of 2009, official data revealed yesterday, but the 0.2 per cent contraction in the single currency bloc indicated the economy was nonetheless close to stabilisation. Germany and France, which both recorded 0.3 per cent quarter-on-quarter growth in the three months to June, [...]
COSTCO PROFITS DIP October 7, 2009 COSTCO said a stronger dollar and higher staff health care costs helped drive its fourth-quarter profit down six per cent to $374m yesterday, but the members-only warehouse club chain still beat analysts’ expectations. Costco has been one of the stronger retailers during the recession because of its focus on lower priced goods.
Uncertainty will see QEand rates held October 7, 2009 QUANTITATIVE EASING (QE) and interest rates should both be kept on hold this month, according to a majority of City A.M.’s shadow monetary policy committee (MPC) ahead of the Bank of England’s decision due at midday today. While seven members voted for no change, Henderson New Star’s Simon Ward, who advocates suspending QE, argues that [...]
CITY A.M. SHADOW MPC October 7, 2009 ALLISTER HEATH CITY A.M.“Weak money supply growth masks the strong likelihood that the demand for money has dropped, which suggests that there is now enough liquidity in the economy. So the Bank should start winding down QE.” SIMON WARD HENDERSON NEW STAR“Hold rates, suspend QE. Asset price strength and pound weakness suggest excess liquidity. Sluggish [...]
Sportingbet’s profits surge October 7, 2009 ONLINE gaming firm Sportingbet yesterday posted a surge in full year pre-tax profit, suggesting it has weathered an economic storm that threatened to destroy it. The group also said it would reinstate its dividend of 1p and unveiled plans to move to a full listing on the main market of the London Stock Exchange. Sportingbet [...]
ARE YOU BETTING ON SPORTINGBET’S RECOVERY? October 7, 2009 NICHOLAS BATRAM KBC PEEL HUNT“Sportingbet’s results are slightly ahead of our expectations and the statement is undoubtedly positive. The dividend payout and news that it will move to an official list shows further signs that the business is developing. But its advances make it a tempting takeover target.” IVOR JONES EVOLUTION SECURITIES“Sportingbet has shown its [...]
AB InBev sells US attractions to Blackstone October 7, 2009 ANHEUSER-Busch InBev yesterday said it had agreed to sell its US theme parks to private equity group Blackstone for up to $2.7bn (£1.6bn), as it offloads non-core businesses to help pay for its merger. The world’s largest brewer, formed by InBev’s $52bn takeover last year of US rival Anheuser-Busch, has said it plans to raise [...]
Hochschild to raise $250m to fund an acquisition spree October 7, 2009 HOCHSCHILD, the FTSE 250 Latin American focused precious metals miner, is set to raise $250m (£157m) through an equity raising, it said yesterday, and will use the cash to make acquisitions. It will place 30.38m shares to raise $150m, while the remaining $100m will come from offering senior unsecured convertible bonds set to mature in [...]
Windpower group rebuffs 90m bid from GuyHands’ energy firm Infinis October 7, 2009 GUY Hands’ energy group Infinis yesterday launched a hostile £90m takeover bid for wind power group Novera. Novera, which is being advised by Oriel, immediately rejected the offer, saying the 62.5p a share price significantly undervalued the company. Infinis already owned 29.9 per cent of Novera and yesterday increased this to more than 40 per [...]
HSBCto snap up RBS assets October 7, 2009 HSBC Holdings is understood to be in talks to buy the Asian banking assets of stricken rival Royal Bank of Scotland. RBS is trying to offload its Chinese, Indian and Malaysian retail and commercial banking assets to pay back some of the government’s giant £37bn bailout. Talks between RBS and Standard Chartered over the assets [...]