Property still too dear, says JPMorgan September 1, 2009 HOPES of an imminent recovery in the commercial property market were dampened yesterday after JP Morgan forecast further troubles for the sector. The bank slammed the recent property stock rally as mere “castles made of sand” and said the upturn was just “building a highly vulnerable property market with a small margin for error.” Commercial [...]
China Shenhua Energy pumps $40bn into coal investment in race to the top September 1, 2009 CHINA Shenhua Energy, the world’s most valuable coal producer, plans to invest $39.5bn (£24.4bn) through 2013 to expand production capacity as it races to supply the world’s top coal consumer. Shenhua, which also has power, rail and port divisions, will earmark about 30-50 per cent of the total investment for capital expenditure, Chairman Zhang Xiwu [...]
Over 5,000 retailers to fail September 1, 2009 OVER 5,000 retailers are set to go out of business next year in further evidence of the embattled state of the high street. The retail sector has already suffered from a steep decline in consumer confidence and rising unemployment is set to batter the industry further, according to figures out yesterday by accountants and business [...]
Porsche worker targeted in VW share investigation September 1, 2009 GERMAN prosecutors have raided the apartment of another Porsche employee as part of a probe into the alleged market manipulation of Volkswagen shares A Porsche spokesman confirmed that another apartment had been searched last Friday. The apartment of an employee who is not at management board level was searched, two people familiar with the investigation [...]
SOC GEN ROGUE TRADER TRIAL STALLED September 1, 2009 THE PLANNED trial of French former trader Jerome Kerviel, blamed for huge losses at Societe Generale, has been blocked pending a procedural appeal, his lawyer Olivier Metzner said yesterday. Kerviel, 32, has been under investigation since SocGen in January 2008 unveiled €4.9bn (£4.3bn) in losses which it said were caused by unauthorised deals carried out [...]
CITY VIEWS: WILL THE RUNAWAY FTSE?100 SUSTAIN ITS GROWTH TO TOP 5,000 POINTS? September 1, 2009 CHRIS METHERELL BBVA“I think we are in for a period of consolidation, with markets staying at more or less the levels they are at now. They should stay there for an extended few weeks, and then rise more gradually as the economic environment improves. There will be no other upward bursts over the next few [...]
RSA cash call fears trigger share slump September 1, 2009 RSA INSURANCE saw its shares fall by five per cent yesterday after it refused to quell fears that it is considering asking markets for $1bn (£619m) in a cash call. Shares in the group slumped 4.75 per cent to a close of 124p as the size of the potential rights issue shocked investors. The stock [...]
Scrap plan boosts US car sales September 1, 2009 US car sales boomed in August as consumers burned through $3bn (£1.8bn) in government incentives, leaving carmakers to contend with both inventory shortages and uncertain demand in the months ahead. The now-exhausted US “clunkers” programme, which was inspired by the programmes in France and other European markets, drove a rush to dealerships in late July [...]
Alibaba eyes European expansion from London September 1, 2009 CHINESE e-commerce firm Alibaba has opened a new European headquarters in London in an attempt to accelerate its expansion outside of China. The world’s largest business-to-business online marketplace, which has based its new home in the West End, has also announced the launch of a multi-million dollar global advertising campaign to aid its overseas growth. [...]
WOULD IT BE A MISTAKE FOR RSA TO LAUNCH A MAJOR CASH CALL? September 1, 2009 DUNCAN HALL FINNCAPThe size of the possible fundraising is pretty breathtaking for an organisation of RSA’s size. And the firm tends to be cited as a takeover target more than a potential consolidator. We would tell investors that, if there is to be a fundraising, they should stand back at the moment and wait for [...]