US embassy unrest spreads in Middle East September 13, 2012 VIOLENT demonstrators protesting against a low budget film depicting the Prophet Mohammed launched attacks on American consulates in Yemen and Egypt yesterday as chaos spread across the Middle East. Over a dozen people were injured in Yemen’s capital Sanaa as crowds attacked the US embassy to protest against a movie clip posted on YouTube mocking [...]
Fears deal may fall apart rocks defence firms September 13, 2012 SHARES in both BAE and EADS tumbled yesterday, amid fears the £29bn mega-merger could still fall apart because of competing demands. Among the biggest sticking points are whether the proposed aerospace giant can operate without political interference, as BAE demands, and what the cost savings of the tie-up would be. BAE Systems closed 7.29 per [...]
What are your thoughts on the bae/eads merger? September 13, 2012 ROGER JOHNSTON | EDISON INVESTMENT RESEARCH The advanced merger talks clearly have good industrial logic with BAE now feeling over-exposed to defence and EADS clearly looking to gain a foothold in the US. The key question is whether this deal could kick off a wave of consolidation in Europe. BENJAMIN FIDLER | DEUTSCHE BANK Whilst [...]
Advisers BNP Paribas September 13, 2012 THERE are a handful of advisers working on the deal, many of whom have enjoyed long relationships with both BAE Systems and EADS. On this particular deal, BAE is being advised by Morgan Stanley, Gleacher Shacklock and Goldman Sachs, with UBS acting as corporate broker. Evercore, Pirella, Lazard and BNP Paribas are working for EADS. [...]
Fitch says EU banking union gives stability September 13, 2012 RATING agency Fitch yesterday came out in favour of plans to hand supervision of all Eurozone banks to the European Central Bank (ECB), arguing it would ensure long-term stability in the region. The plans, which would enable the ECB to shut down failing banks or grant licences to new entrants, would reduce bank default risk [...]
World Bank urges countries to reduce role of state in finance September 13, 2012 FEWER regulations will result in a healthier financial sector, according to a report from the World Bank. The report, released yesterday to coincide with the anniversary of the September 2008 collapse of Lehman Brothers, urges countries to keep regulations simple because this will make them easier to enforce and monitor. It notes this is especially [...]
ECB could buy Greek and Irish bonds as well September 13, 2012 THE NEW plan to prop up struggling governments could be extended to Greece, Ireland and Portugal, the European Central Bank (ECB) revealed yesterday, and not just Spain and Italy which are closest to needing help currently. The ECB also warned Spanish state debt could hit 125 per cent of GDP next year if it fails [...]
OECD says worldwide slowdown setting in September 13, 2012 GDP GROWTH amongst the G20 group of major economies slowed in the second quarter, the OECD quarterly national accounts revealed yesterday. And the OECD’s composite leading indicators suggested continued slowdown in growth across the world, slipping slightly to 100.2, just above the long term average. The economies of G20 countries together grew 0.6 per cent [...]
Greece denies reports it will need a third bailout package September 13, 2012 GREECE’S finance minister yesterday denied a report citing the country’s representative to the IMF as saying Athens would need a third bailout package. The euro weakened against the dollar on the report, which was later also denied by the official quoted in the article and came as international inspectors are mulling handing over the next [...]
Call for trading ban September 13, 2012 EUROPEAN Central Bank policymaker Ewald Nowotny yesterday called for a regulatory ban on high-frequency trading, saying the technique of using computer algorithms to generate multiple high-speed trades had no practical value. A day after the European Commission proposed putting the ECB in charge of supervising Eurozone banks, Nowotny said it might be better to have [...]
