Strong growth continues in US economy February 3, 2011 The US services sector grew at the fastest rate in more than five years in January, another sign the economy started the new year on a solid footing. And new claims for unemployment benefits also fell sharply last week, a separate dataset showed. The US Institute for Supply Management’s index of national non-manufacturing activity rose [...]
Deutsche Bank margins dip but market share up February 3, 2011 Deutsche Bank is winning market share to combat falling margins in its key investment banking arm and is confident of its ambitious 2011 profit target, its executives have said. Germany’s premier institution also revealed an average investment banker pay of over $500,000 (£309,000) each last year, a bigger bonanza than that enjoyed by Goldman Sachs [...]
Glaxo re-starts share buyback February 3, 2011 GlaxoSmithKline will start buying back shares again in 2011, demonstrating confidence it has turned the corner following massive legal bills. Profits at Britain’s biggest drugmaker were wiped out in the fourth quarter, as expected, after GSK took a £2.2bn legal charge to settle further Avandia litigation and US investigations into past sales practices. The decision [...]
Service sector growth jumps to eight-month high February 3, 2011 Activity in the dominant services sector expanded at its fastest pace in eight months in January as business recovered after December’s snow disruption, a survey showed, which may bolster the case for higher rates. The purchasing managers’ survey from Markit/CIPS also showed a record jump in input cost inflation in the services sector, which is [...]
Vodafone raises profit forecast February 3, 2011 Strong demand in India and improving conditions in Europe helped Vodafone, the world’s largest mobile operator by revenue, to post higher third-quarter service revenues and nudge up its profit forecast for the year. The British-based firm said it now expected adjusted operating profit for the year to end-March to be towards the upper end of [...]
TUI Travel to take £30m hit from Egypt unrest February 3, 2011 TUI Travel said the unrest in Egypt and Tunisia could hit its second-quarter results by up to £30m, though said first-quarter losses narrowed. “The Egypt and Tunisia situation could impact the quarter two result by £25m to £30m,” TUI Travel said in a statement. The company said it would take a hit of at least [...]
BT profit lifted by Global Services February 3, 2011 BT reported a seven per cent increase in third-quarter core profit as it continued to cut costs, and said its recovering Global Services unit would be free cash flow positive this year. Britain’s biggest fixed-line services supplier said it had gained market share in retail broadband and now had 53 per cent of the market. [...]
Shell profit soars – but misses forecast February 3, 2011 Royal Dutch Shell posted a near fivefold increase in fourth quarter net profit – powered by higher oil prices. The company said fourth quarter 2010 earnings, on a current cost of supplies basis, were $5.7bn (£3.5bn) compared to $1.2bn a year ago when the company suffered heavy refining losses. Excluding non-operating and one-off items, the [...]
City revolts over bill for bust firms February 2, 2011 LEADING City investment management and stockbroking groups were yesterday in open revolt about plans for them to pay £233m to a controversial compensation fund after the collapse of the financial products seller Keydata. There was a growing feeling last night that prudent firms – from tiny blue-blooded Mayfair fund managers to giants such as BlackRock [...]
Violent clashes in Egypt put pressure on oil price February 2, 2011 VIOLENCE erupted in Egypt yesterday as supporters of outgoing president Hosni Mubarak turned on tens of thousands of pro-reform protesters. Three people were killed and more than 610 injured during bloody clashes on the streets of Cairo, according to official health ministry figures, as armed Mubarak supporters stormed Tahrir Square, the hub of Egypt’s largely [...]