Coty withdraws bid for Avon May 15, 2012 Fragrance company Coty has withdrawn its $10.7bn (£6.6bn) takeover bid for Avon Products saying the world’s largest cosmetics direct seller had missed a deadline to start discussing a deal that Coty first proposed in March. The move leaves Avon shareholders relying on new chief executive Sheri McCoy to come up with a plan to turn [...]
Rusal earnings fall by 84pc as metal takes hit May 15, 2012 RUSAL, the world’s biggest aluminium producer, yesterday posted an 84 per cent drop in first-quarter net profit as metal prices fell. Net profit, which included its share of earnings in Norilsk and non-cash items, slumped to $74m (£46m) in the three months ended March from $451m a year earlier. While global aluminium consumption in the [...]
EURO FEARS SPARK ROUT IN MARKETS May 14, 2012 MARKETS plummeted across Europe yesterday as fears mounted that Greece may leave the Eurozone, driving a mass sell-off as investors fled risky assets. Shares dropped sharply, while peripheral governments saw borrowing costs jump. European leaders openly acknowledged the prospect of the country leaving the euro, while Greece’s political leaders failed even to meet last night [...]
Queen of Wall Street quits as JP Morgan clears the decks May 14, 2012 JP MORGAN cleared out the entire senior team in its chief investment office (CIO) last night after Ina Drew, one of Wall Street’s most powerful women, quit the bank over $2bn (£1.24bn) in hedging losses. According to an internal memo seen by City A.M., Achilles Macris, who led the trading desk that placed the bank’s [...]
Rush to safety as worried investors flee periphery May 14, 2012 BORROWING costs jumped again yesterday in peripheral Eurozone as fears grew that Greece is on its way out of the currency union. Investors piled cash into “safe haven” countries, driving down borrowing costs in the UK and Germany and fleeing riskier assets. German backing for bailouts and austerity took a beating as Angela Merkel’s CDU [...]
Moody’s cuts the ratings of 26 Italian banks May 14, 2012 CREDIT rating agency Moody’s last night downgraded its long-term debt and deposit ratings on 26 Italian financial institutions, blaming the country’s return to recession and limited funding opportunities. Unicredit and Intesa Sanpaolo, which together account for almost a third of Italy’s banking market by assets, were among those hit by the downgrades, three months after [...]
What next if Greece leaves the euro? May 14, 2012 Q Wouldn’t this be a disaster for Greece? A The country’s GDP would take a big hit; UBS estimates that up to 50 per cent could be lost. Yet a currency devaluation may help the recovery, and debts could be written off. Q How would it actually work? A The Greek government would legally establish [...]
WHAT THE OTHER PAPERS SAY THIS MORNING May 14, 2012 FINANCIAL TIMES GM unveils Europe restructuring plan The head of General Motors’ Europe arm told anxious German workers on Monday that he would have to restructure production of a key model in order to help return the European operation to profitability. Paul Smith plans fresh move into China British fashion brand Paul Smith plans to [...]
Funding gap to prompt Spanish bank mergers May 14, 2012 SPAIN’S banks are expected to kick off a new round of mergers following the government’s demand that they put aside billions more to provide for losses on property lending. As banks shares across Europe tumbled three to nine per cent (see below), the Bank of Spain revealed that Spanish lenders’ use of its emergency borrowing [...]
Greek leaders reject president’s call for new technocratic regime May 14, 2012 GREEK leaders again failed to form a government last night, as radical left wing party Syriza rejected the president’s plan to install a new technocratic prime minister. Conservative leader Antonis Samaras accused Syriza leader Alexis Tsipras of being “arrogant” in refusing to join a coalition with the pro-bailout parties. Meanwhile Evangelos Venizelos, former finance minister [...]