Leaders threaten green shoots July 12, 2009 Reform of the global financial system has become bogged down as fears subside over its potential collapse, however policymakers relaxing now threatens recovery, a leading European Central Bank (ECB) official said. ECB executive board member Jose Manuel Gonzalez-Paramo said some European Union countries could see a return to growth from mid-2010. “We should not distract [...]
Philips may need cost-cutting July 12, 2009 Philips Electronics is expected to post a loss when it reports quarterly earnings, but the biggest question is whether deeper restructuring is needed. Chief executive Gerard Kleisterlee prepared investors for further cost cuts last month when he said sales were not likely to recover and additional measures may be needed for the group to stay [...]
Jailing bad for China business July 12, 2009 The detention by China of an executive from resources giant Rio Tinto may make business think twice about involvement in the country, said Australian financial services minister Chris Bowen. Rio executive Stern Hu was detained in Shanghai last week, along with three Chinese workers, and has been accused of stealing state secrets. “It should also [...]
BA battles the turbulent air ahead of AGM July 12, 2009 INVESTORS in British Airways (BA) are psyching themselves up for another dose of doom and gloom ahead of the ailing airline’s annual meeting tomorrow, as worries about its pension deficit, record losses, tie-up woes and the worldwide downturn weigh on the company. Chief executive Willie Walsh, who has said the carrier is in a “fight [...]
Xstrata sticks by merger plan July 12, 2009 MINING group Xstrata remains committed to a nil-premium merger with Anglo American, the company said yesterday after a newspaper claimed the company would offer a £5bn sweetener to seal the deal. Xstrata is understood to be looking to raise the money via a rights issue because its debt-laden balance sheet had made it difficult to [...]
Centrica sets out to woo Venture’s shareholders July 12, 2009 CENTRICA, the company which controls British Gas, will this week seek to win over investors for its hostile £1.3bn takeover of the North Sea gas company Venture Production. The gas group’s board of directors slammed Centrica’s bid late last week, saying it “substantially undervalued” the business. The offer of 845p a share, which values the [...]
Wm Morrison wins OFT approval for deal to purchase 30 Co-operative stores July 12, 2009 WM MORRISON yesterday got the green light from the Office of Fair Trading (OFT) for its acquisition of 30 stores from Co-operative Group. The shops being acquired will increase the size of the Morrison’s estate by about 10 per cent. Morrison has had to wait for OFT approval since the deal was first announced to [...]
CITY MOVES WHO’S SWITCHING JOBS July 12, 2009 Gresham CollegeKen Costa, the chairman of investment bank Lazard, has been hired as the college’s professor of commerce, giving a series of lectures on “Reshaping commerce in the post-crisis world”. Costa joined Lazard as chairman in 2007 and, prior to that, was vice-chairman of UBS Investment Bank. He is also a member of the advisory [...]
BEST OF THE BROKERS July 12, 2009 CHLORIDEKBC Peel Hunt cut its target price on Chloride from 160p to 140p and downgraded the stock from “buy” to “hold”, after reducing its 2011 forecasts for the group. The broker said that long-term growth drivers are intact and that service revenues will provide some resilience, but that margin pressure is inevitable.CARPETRIGHTInvestec cuts its forecasts [...]
Online casino revamp for 888 July 12, 2009 Dublin-based internet gambling group 888 Holdings has said it wants to redesign its online casino in 3-D, as it pushes to boost its customer numbers to weather the slowdown in consumer spending. The group is to unveil the revamped user interface, to apply to its online games including roulette and blackjack, this autumn. It is [...]