Arcandor restructurer quits July 16, 2009 Bankrupt German retailer Arcandor has been hit by the resignation of its re-structuring officer, who quit accusing the firm’s main shareholder, German private bank Sal. Oppenheim, of failing to provide support. Horst Piepenburg said there is no foundation to the firm’s plans to emerge from bankruptcy.
Rio staff quit China after four arrests July 16, 2009 MINER Rio Tinto told its overseas employees in China to leave the country yesterday, as concerns grew over four of its workers who have been detained by the state on espionage and bribery charges. Rio said it was “still operating” in the country, and refused to comment on the withdrawal of its foreign staff. Rio Tinto’s China [...]
IMF: UK must act to reduce debts July 16, 2009 THE GOVERNMENT has been warned it has to come up with “credible and consistent policies” to prevent the economy from destabilising, in a report by the International Monetary Fund (IMF). Ajai Chopra, the IMF’s mission chief to the UK, said “significant vulnerabilities” exist in the financial sector and warned the pound could be destabilised if the [...]
Blackstone help for Terra Firma July 16, 2009 TERRA Firma, Guy Hands’ private equity firm, is being advised by US rival Blackstone on plans to issue bonds to pay off loans accrued by its music group EMI. All or part of the £2.6bn of loans, owed to US banking giant Citigroup, might be paid off via a bond issue backed by JPMorgan and Morgan [...]
Isle of Man to pay out 193m July 16, 2009 THREE-quarters of savers who lost out through the collapse of the Isle of Man arm of Icelandic bank Kaupthing Singer & Friedlander will get all of their money back by September, it emerged yesterday. The Manx parliament approved a £193m government funding package which will accelerate compensation payments to savers of KSF Isle of Man [...]
Walker plans bonus delays July 16, 2009 BANKERS would have half of their bonuses withheld by employers for up to five years, under proposals designed to end City “short-termism.” The new plans came from former Morgan Stanley chairman Sir David Walker yesterday in a review of banking in the wake of the global downturn. Walker’s review of banks’ pay comes after some [...]
HOW WOULD WALKER’S PROPOSALS AFFECT YOUR SECTOR? July 16, 2009 ANGELA KNIGHT BRITISH BANKERS’ ASSOCIATIONThese recommendations stem from the actions that a number of banks and other financial institutions have already put in place. These proposals would effectively bring all firms’ governance up to the standards of the best and are therefore to be welcomed.PETER MONTAGNON ABI (INSURANCE)This is a valuable contribution to the debate [...]
Huge 300bn hole in FTSE 100 pensions July 16, 2009 THE total pension deficit at FTSE 100 companies has more than doubled since January, rising to a staggering £300bn, Deloitte said yesterday. Fallout from the global financial crisis has decimated the value of pension funds’ investments, the accountancy giant said, adding that the shortfall could take 50 years to clear if firms continue to contribute [...]
Nokia cuts its profit forecast July 16, 2009 THE world’s top mobile phone maker Nokia yesterday cut its forecast for second half profit and 2009 market share, sending its shares sharply lower. Nokia, which is facing tough competition from the likes of Apple, Samsung and RIM, scaled back its second-half underlying operating profit margin forecast for its key phone unit to the first-half [...]
China’s GDP grows by 8pc on stimulus efforts July 16, 2009 CHINA looks set to hit its full-year growth target of eight per cent after a surprisingly strong second quarter notable for a surge in investment driven by powerful fiscal and monetary stimulus. Annual gross domestic product growth accelerated in the second quarter to 7.9 per cent from 6.1 per cent in the first quarter, making [...]