AIG to float two units to pay back Fed June 25, 2009 AMERICAN International Group (AIG) is to float two of its international life insurance divisions to fund the repayment of $25bn (£15.3bn) in loans it took from the Federal Reserve. The insurance giant, which has received $173.3bn in government bailouts since the onset of the financial crisis, said it would launch initial public offerings for both [...]
Eurotunnel looks at high speed rail bid June 25, 2009 GROUPE Eurotunnel, the firm that runs the Channel tunnel is “looking carefully” at bidding for the UK’s only dedicated high-speed rail line. Executive chairman Jacques Gounon said he was interested in bidding for the High Speed 1 line, which carries trains at 300kph on the 108km between the tunnel and London’s St Pancras station. High [...]
BEST OF THE BROKERS June 25, 2009 TUI TRAVELCitigroup upgraded TUI Travel to “buy” to take into account improved booking trend data and the economic outlook. It raised its earnings per share estimates by 12.5 per cent to 23.5p. But the broker sees downside risk as the shares are likely to be driven by rival Thomas Cook, which is the subject of [...]
How did the mighty British Airways wind up asking staff to work for free? June 25, 2009 STRANGELY enough British Airways’ (BA) many problems began at the end of the 2006-07 financial year when it posted record results of £922m. Until then banks were happy to pay £4,000 to fly across the Atlantic. But the recession meant that business and first class fares from London to New York – BA’s lifeblood – [...]
WHAT FUTURE DOES BRITISH AIRWAYS FACE? June 25, 2009 DOUGLAS MCNEILL ASTAIRE SECURITIESIn many ways, BA is well placed. It has ample stock reserves and can tap the stock market for more cash. The trading environment is difficult because of the absense of premium class passengers, but that traffic will return. But if oil spikes like we saw last summer, it will be a [...]
US jobs picture dims, offsets brighter GDP June 25, 2009 FRESH signs of weakness in US job markets yesterday underlined the strains faced by a recession-struck American economy that contracted slightly less in the first quarter than previously thought. The Labour Department said the number of US workers filing new claims for unemployment benefits last week jumped unexpectedly by 15,000 to a higher-than-forecast, seasonally-adjusted total [...]
Bank of England urges reform to financial policy June 25, 2009 THE BANK OF ENGLAND will call today for an overhaul of the British financial system as a response to the events of the crisis and outline areas where policy changes are needed. The Bank’s biannual Financial Stability Report published today says that conditions have improved but authorities need to strengthen financial system resilience so that [...]
ARE WE STARTING TO SEE SOME GREEN SHOOTS? June 25, 2009 JAMES DONALDSON DRIVERS JONAS, PROPERTY CONSULTANCY“In the housing market we’re seeing a definite growth in the short term. But whether or not that will last is another question. It’s entirely possible it’s only a short term recovery. Consumer confidence won’t bounce straight back into action until the banks start properly lending.” BRIAN RANSLEY COMO, SPECIALIST [...]
Misys reports robust revenue June 25, 2009 Software company Misys said yesterday that total revenue for the year to 31 May rose about 40 per cent to £695m, helped by the creation of its Allscripts-Misys healthcare business in October last year. The company, which also provides solutions for the financial sector, said that total order intake increased by 60 per cent to [...]
Strong order book at Costain June 25, 2009 Construction firm Costain said yesterday its forward order book rose to a record high in the first half of the year, thanks to significant new contract wins. The firm’s forward order book currently stands at £2.4bn, 20 per cent above this time last year. Costain won a number of new contracts over the period, including [...]
