Lacroix close to the brink May 28, 2009 HAUTE couture firm Christian Lacroix yesterday filed for protection from its creditors after the credit crunch hit consumer demand for extravagant and expensive fashion. Lacroix, which is owned by Falic Group, a duty free retailer, and employs 125 people, said it hoped to continue to operate by getting court permission to go into administration and [...]
WHAT THE OTHER PAPERS SAY THIS MORNING May 28, 2009 FINANCIAL TIMES TERRA FIRMA INJECTS MORE CASH INTO EMITerra Firma has been forced to inject more cash into EMI for the second time in six months, after the debt-laden UK music group behind the Beastie Boys and Depeche Mode missed targets imposed in its banking covenants. Guy Hands’ private equity group injected £28m into EMI [...]
Dell slump better than feared May 28, 2009 Computer maker Dell yesterday reported that its quarterly profits had fallen by almost two-thirds as the worldwide recession continues to hit sales of computers. The world’s second-largest maker of personal computers made a net profit of $290m (£182m) in the three months to 1 May, down 63 per cent from $784m a year ago. Revenues [...]
Toyota sales fall by a quarter May 28, 2009 Toyota’s sales in Japan fell by around 25 per cent compared to last year the firm said yesterday. Katsuaki Watanabe, Toyota’s president, said domestic vehicle production would exceed 11,000 units a day in June and July. Toyota’s Prius Hybrid, unveiled last week, received record orders exceeding 80,000 before sales started. Japan’s top three car makers [...]
FSA reveals stress model May 28, 2009 THE stress tests used by the Financial Services Authority (FSA) to determine the health of UK banks envisaged a grim scenario in which unemployment hits 3.7m, house prices are cut by half and the recession continues for another 18 months. The City watchdog used the nightmare scenario to judge how a deep and lengthy recession [...]
CITY VIEWS: DO YOU AGREE WITH THE FSA’S DIRE ECONOMIC ASSUMPTIONS? May 28, 2009 MO MAYET INGRAM MAYET“I think their predictions are very gloomy – and that scaremongering like that isn’t going to help matters. I think the economy will remain stable for the next 12 months or so and then recover steadily, but I’m shocked by the FSA’s predictions.” MICHAEL PERISSINOTTO MIZUHO“I think these figures sound a lot [...]
STRESSED OUT May 28, 2009 STRESS TEST MODEL:Peak to trough fall in GDP of 6%REALITY:GDP has now declined 4.1% from its peak in the first quarter of 2008 STRESS TEST MODEL: Unemployment will rise to just over 12%REALITY:Unemployment is currently 7.1% for the three months to March 2009 STRESS TEST MODEL: House prices will fall 50% to peak to troughREALITY:According [...]
Credit Suisse to sell London offices May 28, 2009 Credit Suisse has kicked off a sale of its London property portfolio to raise as much as £500m. The investment bank has asked property firm CB Richard Ellis to start marketing the smaller of its two buildings in Canary Wharf, 20 Columbus Court, and it is believed that its tower at 1 Cabot Square may [...]
Time Warner disconnects AOL May 28, 2009 Time Warner said yesterday it’s board has approved plans to separate out its AOL division, in a widely expected move that will rid the media giant of one of its weakest divisions.Due to be completed at the end of this year, the deal would once again make AOL an independent, publicly traded company, and close [...]
OPEC members stay the course May 28, 2009 OPEC ministers yesterday decided to “stay the course” and keep output steady as they bet on a strengthening economy and tentative signs of increased demand to boost oil prices. “Stay the course, this is the decision,” Saudi oil minister Ali al-Naimi said following just under two hours of talks, which had been widely expected to [...]