Hedgie Hendry forecasts Asian economic crash May 3, 2012 HEDGE fund boss Hugh Hendry has warned the next phase of the economic crisis will hit Asia as China feels the impact of a property bubble and falling demand for exports. The Scot (below), who runs Eclectica Asset Management, which has around $700m in assets, is known for his gloomy view of China but he [...]
Fuel costs send Lufthansa further into the red and prompt job cuts May 3, 2012 GERMANY’S biggest airline yesterday announced plans to cut 3,500 office jobs in an attempt to stem widening operating losses. Lufthansa reported an operating loss of €381m (£309m) for the first three months of the year, more than double its losses a year ago, as high fuel and tax costs along with fierce competition across Europe [...]
Bailed-out AIG trumps forecasts as its profits more than double May 3, 2012 BAILED-OUT insurer American International Group (AIG) said quarterly profit more than doubled from a year earlier, exceeding expectations with the help of investment gains. The company yesterday reported first-quarter earnings of $1.65 a share on an operating basis, beating the $1.12 estimated on average by analysts. AIG’s net income for the quarter was $3.2bn, or [...]
ARE YOU PLEASED TO SEE A RETURN IN SHAREHOLDER ACTIVISM? May 3, 2012 KEVIN POWELL XL INSURANCE No, I think businesses should be left to run themselves. That’s what executives get paid for. If investors don’t approve of the way the company is being run, they can get rid of their shares. ANDY SWAN JARDINE LLOYD THOMPSON Yes – if companies want to be on the stock exchange [...]
Sales rise but expansion hits Regus’ profits May 3, 2012 REGUS, the flexible office space provider, yesterday posted strong sales growth despite taking a hit from its rapid expansion plan. Turnover in the first quarter grew by 8.8 per cent to £299.3m, boosted by a £26 increase in revenue per occupied workstation to £1,883. Regus said its mature business – comprising the centres opened before the [...]
Can maker Rexam says trading is in line but its shares fizzle out May 3, 2012 PACKAGING group Rexam pared back early gains yesterday to close flat, after reporting that its sales were in line with expectations. Rexam, which manufactures products from drinks cans to cosmetics packaging, reported good volumes in its European business. The firm said that its North American arm, which makes cans for Pepsi, Jim Beam and Starbucks, was [...]
Smith & Nephew climbs after restructuring starts to pay off May 3, 2012 ARTIFICIAL hip and knee maker Smith & Nephew (S&N) said yesterday the early fruits of a restructuring programme and a strong performance in knee implants delivered a better-than-expected five per cent rise in first-quarter trading profit. The group, which also makes wound therapy products, reported trading profit of $252m (£155m), $10m better than analysts expected, [...]
General Motors disappoints with outlook as Opel losses improve May 3, 2012 GENERAL MOTORS yesterday offered investors a disappointing outlook for the upcoming six months in North America, raising questions about the US economy’s recovery. While the world’s largest carmaker posted a first-quarter profit that surpassed forecasts, the outlook for its core market fell short of expectations. “We’re clearly seeing some improvement in the economy,” finance chief [...]
House prices fall again in April as recession crushes consumers May 3, 2012 HOUSE prices fell again in April, Nationwide revealed yesterday, as economists warned the new recession will keep the market very weak. Prices fell 0.2 per cent last month to an average of £164,134, following a one per cent fall in March. That brings prices down 0.9 per cent on the year, in part because the [...]
Top think-tank predicts Britain will see zero growth this year May 3, 2012 THE ECONOMY will stagnate in 2012, recording no growth, a leading think-tank predicted yesterday, contrasting starkly with official forecasts for an economic expansion and raising calls for a short-term fiscal boost. The fall in GDP in the first quarter of the year, which took Britain back into recession, has dragged down the National Institute for [...]