Bank of America Corp. said first-quarter profit fell 77% as credit-loss provisions jumped $4.78 billion, driven by weakness in home-equity loans as well as credit extended to small businesses and homebuilders.
Gold futures rose sharply early Monday, rebounding from a decline in the previous session, as weakness in the U.S. dollar underpinned demand for the precious metal.
Despite largely flat worldwide sales, Merck & Co. reports dramatically higher first-quarter earnings Monday, largely due to an accounting gain related to its partnership with U.K. drug maker AstraZeneca plc.
Among the companies whose shares are expected to see active trade in Monday's session are Bank of America, Basic Energy, GameStop, Given Imaging, Grey Wolf, Halliburton, Hanesbrands, Hasbro, Jefferies, Leucadia, Mattel, National City, Nestle, Novartis, Packeteer, Quest Diagnostics, Tyson Foods, and Weatherford.
Novartis posts a forecast-beating 10% increase in first-quarter profit, a reflection of the Swiss pharmaceutical giant's tight lid on costs as well as the benefit to be derived from the weaker dollar.
As American families face the double whammy of higher gas and food prices, moms nationwide are resorting to considerable ingenuity to stretch their monthly grocery budget.
Bank of America reports a steep fall in profits for the three months to March as a result of write downs. Source: BBC News | Business | World Edition | 21 Apr 2008 | 12:19 pm
Bank of America suffered a 77% plunge in profits last quarter, much more than expected, but managed to stay in the black, the company reported early Monday.
Jefferies Group, Inc. (NYSE: JEF) has posted some ugly earnings this morning and it has announced a financing package. Jefferies posted a net loss of $60.5 million, or -$0.43 EPS on a 52% drop in revenues to $201.2 million. First Call had estimates of $0.12 EPS on $313.6 million. We thought maybe that there was a charge or something in the number, but the quote from Jefferies CEO, Richard Handler says it all: "Despite this quarter’s brutal market conditions and disappointing results...." The company has also announced that Leucadia National Corporation (NYSE: LUK) has entered into a financing pact with...
The Bank of England said it will swap up to 50 billion pounds worth of Treasury bills for high-rated mortgage-backed securities with commercial banks in an effort to unthaw frozen credit markets and ensure lower interest rates are passed on to consumers.
Reuters - Crude oil prices surged above $117,
setting a new record high on Monday because of worries of
supply disruptions from major producers and comments by OPEC
reiterating there is no need to raise output.
LONDON (Reuters) - Crude oil prices surged above $117, setting a new record high on Monday because of worries of supply disruptions from major producers and comments by OPEC reiterating there is no need to raise output.
The Bank of England has introduced a huge new operation which it expects to ease the liquidity problems of Britain's banks by offering to swap difficult to sell mortgage-backed assets for Treasury bills Source: FT.com - US homepage | 21 Apr 2008 | 12:05 pm
The retail giant is on top for the second year in a row, while AT&T moves up and GM slips. See who ranks where on the definitive list of America's largest companies and why.
UBS has admitted that its thirst for profit coupled with poor risk control was to blame for its vast credit losses, ahead of its shareholder meeting on Wednesday. Source: Telegraph Business | 21 Apr 2008 | 12:00 pm
Bank of America, the largest US bank by market value, slammed by writedowns and rising credit costs, said earnings dropped nearly 80 per cent in the first quarter to $1.2bn Source: FT.com - US homepage | 21 Apr 2008 | 12:00 pm
Reuters - Bank of America Corp , the
second-largest U.S. bank, on Monday said first-quarter profit
fell 77 percent, hurt by trading losses and a $3.3 billion
increase in reserves for credit problems.
NEW YORK (Reuters) - Bank of America Corp , the second-largest U.S. bank, on Monday said first-quarter profit fell 77 percent, hurt by trading losses and a $3.3 billion increase in reserves for credit problems.
NEW YORK (Reuters) - Merck & Co on Monday said first-quarter profit rose on gains from a deal with longtime partner AstraZeneca, although the company's sales rose only 1 percent as negative results of a clinical trial slowed growth of its Vytorin and Zetia cholesterol drugs.
Reuters - Merck & Co on Monday said
first-quarter profit rose on gains from a deal with longtime
partner AstraZeneca, although the company's sales rose only 1
percent as negative results of a clinical trial slowed growth
of its Vytorin and Zetia cholesterol drugs.
NEW YORK (Reuters) - Eli Lilly and Co on Monday posted lower-than-expected quarterly earnings, as disappointing sales of its Byetta diabetes drug overshadowed growing demand for its older diabetes treatments and Cialis impotence drug.
GameStop Corp. (NYSE: GME) has seen shares downgraded at Goldman Sachs this morning. The brokerage firm cut its already cautious Neutral rating down to a new Sell target. The stock target is $50.00, implying a downside of 12%. Part of Goldman Sachs' call is the relative outperformance with gains of 30% since March 10, whereas the S&P 500 is up roughly 9%. Another issue is a perceived industry deceleration from its current peak. This also follows the resignation of President Steven Morgan on Friday, which will be effective May 2, 2008. GameStop shares are indicated down about 3.5% this morning...
NEW YORK (Reuters) - Mattel Inc , the largest U.S. toy company, posted a quarterly loss on Monday, hurt by lower sales of its Fisher-Price products, legal expenses and higher costs.
Plans for the world's most powerful hydro-electric dam project in Africa are being discussed in London. Source: BBC News | Business | World Edition | 21 Apr 2008 | 11:45 am
Reuters - The Bank of England moved to ease the
effects of a credit crunch on the UK's banking system on Monday
by offering to swap secure government bonds for riskier
mortgage debt.
LONDON (Reuters) - The Bank of England moved to ease the effects of a credit crunch on the UK's banking system on Monday by offering to swap secure government bonds for riskier mortgage debt.
HOUSTON (Reuters) - Halliburton Co said on Monday that first-quarter profit rose 6 percent as customers in markets including the Middle East and Asia spent more on oil and gas exploration and production.
The Bank of England has announced an unprecedented cash injection for banks in an effort to revive the declining housing market - but warned that taxpayers could be hit with a bill higher than the initial £50bn estimate. Source: Telegraph Business | 21 Apr 2008 | 11:42 am
NEW YORK (Reuters) - Stock index futures hit session lows on Monday after Bank of America, the second-largest U.S. bank, said first-quarter profit fell, hurt by write-downs and rising credit losses.
Stocks were poised to struggle at Monday's open, as investors mulled weaker-than-expected earnings from Bank of America and the effect of a record trading high for oil prices following an attack on an oil tanker off the coast of Yemen.
NEW YORK (Reuters) - Hasbro Inc , the second-largest U.S. toy company, posted a better-than-expected quarterly profit on Monday, helped by strong demand for its Transformers and Littlest Pet Shop lines.
Reuters - Stock index futures slipped on Monday,
following the Dow's best week in two months, after
disappointing earnings and commentary from Bank of America Corp
.
The Bank of England details a £50bn plan to prevent the credit crisis further damaging the UK economy. Source: BBC News | Business | World Edition | 21 Apr 2008 | 11:35 am
Peter Mandelson, the EU External Trade Commissioner, has condemned Japan’s
hostility towards foreign investors as a “globalisation paradox” that could
lead to companies turning their backs on the world’s second-biggest economy. Source: Latest Business News from Times Online | 21 Apr 2008 | 11:32 am
Satyam, India's fourth-biggest software firm, reports first-quarter profits that fall short of expectations. Source: BBC News | Business | World Edition | 21 Apr 2008 | 11:30 am
In a smaller, but longer echo of a plan initiated by the Federal Reserve in the United States, the Bank of England is offering to take on as much 50 billion pounds ($100 billion) of British banks’ risky mortgage debt in exchange for government securities.
The effort is intended to help thaw the credit market in Britain. The troubled mortgage market is presenting Prime Minister Gordon Brown with his biggest challenge to date.
The Bank of England said the size of the swap could grow. "There is no arbitrary limit on it," Mervyn King, the governor of the Bank of England, told reporters.
"The purpose is to protect the rest of the economy from the banks, not to protect banks from their previous decisions," King said. "It's not true to say that they are being bailed out in any sense."
The Fed’s swap facility was for as much as $200 billion of securities and for 27 years. The Bank of England’s plan will be for asset swaps of one year, with the possibility of a renewal to as much as three years.
British banks will receive in exchange nine-month Treasury securities. The fees paid by the banks will be based on the Libor, at not a penalty rate. The risk of losses on the loans, however, remain on the books of the banks.
Robert Peston of the BBC notes that Bank of England is performing “what some will see as one of the greatest U-turns in its 300 year history.”
Until now, the central bank has taken a more hands-off approach to the credit crisis, compared with the Fed and the European Central Bank.
Indeed, Peston says that many have argued that if such a swap plan were in effect when the credit crunch first took hold last summer, that Northern Rock, a big British mortgage lender that depended on the market for its short-term financing, would have survived. Northern Rock was ultimately nationalized by the government.
The immediate reaction to the plan was lukewarm
Richard McGuire, of the investment bank RGC Capital Markets, told the Times of London that the plan was "unlikely to do much to inject new life into the U.K.'s troubled mortgage/housing markets, given the costly nature of the exercise".
As Mark Whitehouse and Carrick Mollenkamp of the Wall Street Journalpoint out, $100 billion is a small sum, given that total household mortgage debt in Britain was more than $2 trillion at the end of last year. That is about 84 percent of Britain’s gross domestic product, compared with 75 percent of the U.S. economy.
Among the nightmares lurking around the corner for the already battered housing and credit markets would be a meltdown at mortgage financing giants Fannie Mae and Freddie Mac.
These are not the only calls that will be impacting stocks, but these are the initial calls that 247WallSt.com is focusing on this Monday morning: Caterpillar (NYSE: CAT) Cut to Neutral from Outperform at Credit Suisse. Cirrus Logic (NASDAQ: CRUS) Cut to Hold from Buy at Jefferies. Embarq (NYSE: EQ) Raised to Outperform at Wachovia. Heritage-Crystal Clean (NASDAQ: HCCI) started as Buy at Piper Jaffray. Marriott (NYSE: MAR) Cut to Neutral from Buy at Goldman Sachs. MGIC Investment Corp (NYSE: MTG) Raised to Outperform from Peer Perform at Bear Stearns. Pilgrims Pride (NYSE: PPC) Raised to Outperform from Neutral at...
AFP - The Bank of England announced a near-100-billion-dollar plan Monday to free up Britain's home loan market in one of the biggest moves by a major central bank to combat the global credit crunch.
The FTSE 100 was little changed on Monday as investors absorbed details of the UK government's plan to ease pressure on the financial system. Despite weakness among the banks, the FTSE 100 was broadly... Source: Infocious RSS raw feed - channel BNPaperBusiness | 21 Apr 2008 | 11:02 am
Peter Hambro Mining, one of Russia's largest gold producers, plans to pay its first dividend after reporting a 22pc rise in profits on the back of price increases and higher production levels. Source: Infocious RSS raw feed - channel BNPaperBusiness | 21 Apr 2008 | 11:01 am
Peter Hambro Mining, one of Russia's largest gold producers, plans to pay its first dividend after reporting a 22pc rise in profits on the back of price increases and higher production levels. Source: Telegraph Business | 21 Apr 2008 | 11:01 am
European equity markets started the week lower as earnings took centre stage, while banks were volatile after the Bank of England gave details of the liquidity plan it first announced last week.By midday,... Source: Infocious RSS raw feed - channel BNPaperBusiness | 21 Apr 2008 | 10:59 am
Administrators running Ethel Austin, the discount fashion chain, hope to find
a buyer for the business and save more than 2,400 jobs within three weeks. Source: Latest Business News from Times Online | 21 Apr 2008 | 10:55 am
NEW YORK (Reuters) - Hasbro Inc , the second-largest U.S. toy company, posted a higher quarterly profit on Monday, helped by strong demand for its Transformers and Littlest Pet Shop lines. Source: Infocious RSS raw feed - channel BNewsBusiness | 21 Apr 2008 | 10:55 am
NEW YORK (Reuters) - Eli Lilly and Co said on Monday its first-quarter earnings rose on higher sales of its treatments for diabetes, cancer and depression. Source: Infocious RSS raw feed - channel BNewsBusiness | 21 Apr 2008 | 10:54 am
HOUSTON (Reuters) - Halliburton Co said on Monday that first-quarter profit rose 6 percent as customers in international markets spent more on oil and natural gas exploration. Source: Infocious RSS raw feed - channel BNewsBusiness | 21 Apr 2008 | 10:53 am
The dollar slid on Monday against the European single currency in cautious trade ahead of vital economic data and earnings news in the United States, dealers said. In early... Source: Infocious RSS raw feed - channel BNewsBusiness | 21 Apr 2008 | 10:50 am
The European Central Bank has room to cut its main lending rate later this year, a director of the International Monetary Fund said Monday. "We don't say cut now," tempered... Source: Infocious RSS raw feed - channel BNewsBusiness | 21 Apr 2008 | 10:49 am
Rentokil Initial, the support services and pest control group, today issued
its third profit warning this year as its troubled parcel delivery business
reported a worse-than-expected loss. Source: Latest Business News from Times Online | 21 Apr 2008 | 10:45 am
AP - The International Monetary Fund said Monday that the global credit crisis and persistent gloom over the U.S. economy have dampened the outlook for European economic growth. Source: Yahoo! News: Business | 21 Apr 2008 | 10:44 am
ROME (Reuters) - Record high oil prices have deepened economic pain and even energy producers have begun to fret, but at talks with their customers in Rome they blamed the U.S. dollar and said they could not halt the rally.
ROME (Reuters) - Record high oil prices have deepened economic pain and even energy producers have begun to fret, but at talks with their customers in Rome they blamed the U.S. dollar and... Source: Infocious RSS raw feed - channel BNewsBusiness | 21 Apr 2008 | 10:41 am
There is no law on the books anywhere in the US to rival The Martin Act for giving prosecutors a big stick. As one expert on the breadth of 1930s piece of legislation put it: "The purpose of the Martin Act is to arm the New York attorney general to combat financial fraud. It empowers him to subpoena any document he wants from anyone doing business in the state; to keep an investigation totally secret or to make it totally public; and to choose between filing civil or criminal charges whenever he wants. People called in for questioning during Martin...
Alistair Darling is set to announce an unprecendented plan to lend banks 50bn to boost liquidity in the market, allowing banks to swap mortgage-backed securities for taxpayer-backed loans. Source: Infocious RSS raw feed - channel BNPaperBusiness | 21 Apr 2008 | 10:40 am
Alistair Darling is set to announce an unprecendented plan to lend banks £50bn to boost liquidity in the market, allowing banks to swap mortgage-backed securities for taxpayer-backed loans. Source: Telegraph Business | 21 Apr 2008 | 10:40 am
NEW YORK (Reuters) - Mattel Inc , the largest U.S. toy company, posted a quarterly loss on Monday, hurt by lower sales of its Fisher-Price products. Source: Infocious RSS raw feed - channel BNewsBusiness | 21 Apr 2008 | 10:39 am
Alistair Darling is set to announce an unprecendented plan to lend banks £50bn to boost liquidity in the market, allowing banks to swap mortgage-backed securities for taxpayer-backed loans Source: Telegraph Business | 21 Apr 2008 | 10:35 am
Alistair Darling is set to announce an unprecendented plan to lend banks 50bn to boost liquidity in the market, allowing banks to swap mortgage-backed securities for taxpayer-backed loans Source: Infocious RSS raw feed - channel BNPaperBusiness | 21 Apr 2008 | 10:35 am
PARIS (Reuters) - Stock index futures inched up on Monday morning, pointing to a slightly higher opening on Wall Street as investors took a breather after last week's lofty gains fuelled by Source: Infocious RSS raw feed - channel BNewsBusiness | 21 Apr 2008 | 10:28 am
Europe markets are narrowly mixed at 6.15 AM. The FTSE is up .2% 6,066. BHP (BHP) was up 2.5% to 1835. Vodafone (VOD) is down 2.3% to 152.4. The DAXX is down .5% to 6,810. Infineon was up 3.8% to 5.43. Man AG was off 2.1% to 90.04. The CAC 40 was down .8% to 4,925. Credite Agricole was off 1.7% to 21.42. EADS was down 2% to 15.60. Data from Reuters. Douglas A. McIntyre
Oil prices, which surged to record 117.40 dollars a barrel on Monday, are unlikely to fall back below 90 dollars, the Venezuelan energy minister Rafael Ramirez said here. "We Source: Infocious RSS raw feed - channel BNewsBusiness | 21 Apr 2008 | 10:06 am
Perhaps it is a rumor and perhaps not. German magazine Focus has reported that the launch of the Boeing (BA) Dreamliner will be delayed another six months into 2010. The publication says it got is information from the Federal Aviation Administration. Boeing says the report is a lie, although the American company used language less harsh than that. The only reason the report may have some believability is that Boeing has delayed the plane three times. Some customers are even seeking damages from the company due to the delay. It is costing them money to fly older planes. All of...
Paramount Pictures' owner Viacom joins with MGM and Lionsgate to announce a new pay-TV movie channel. Source: BBC News | Business | World Edition | 21 Apr 2008 | 10:05 am
Wesfarmers confirmed on Monday that it would sell A$2.57bn-worth ($2.4bn) of new shares as the conglomerate moves to refinance debt used to fund last year's A$18.2bn acquisition of Coles, the Australian... Source: Infocious RSS raw feed - channel BNPaperBusiness | 21 Apr 2008 | 10:05 am
One the way to buying Circuit City (CC), Blockbuster (BBI) found out it may not have the money to close a deal. Its big shareholder Carl Icahn might help and there is some money on the Circuit City balance sheet. According to The Wall Street Journal "Concerns about Blockbuster's methods for financing a bid contributed to a sharp fall in the company's shares." The issues at hand are actually more profoundly ugly than that. Part of the reason that Circuit City can be bought at all is that its poor performance has dropped its share price by 40% over the...
Oil prices, which surged to record 117.40 dollars a barrel on Monday, are unlikely to fall back below 90 dollars, the Venezuelan energy minister Rafael Ramirez said here. "We Source: Infocious RSS raw feed - channel BNewsBusiness | 21 Apr 2008 | 9:55 am
UBS admits that a lack of risk control and ambitious growth plans led to massive losses in the credit crunch. Source: BBC News | Business | World Edition | 21 Apr 2008 | 9:53 am
The pound lost ground on Monday after the Bank of England announced plans to ease liquidity conditions squeezed by the recent credit crisis. The central bank said it would offer to swap government bonds... Source: Infocious RSS raw feed - channel BNPaperBusiness | 21 Apr 2008 | 9:52 am
As the world and his dog fulminates about the potential for growth/recession/depression (take a card, any card), the actual markets appear to be doing their best to pull us out of the malaise that has afflicted investors since the turn of the year. It now appears that the banks merely had to stand up and admit "we are knee deep in manure and sinking" for analysts to start saying "well then ok then". Source: Telegraph Business | 21 Apr 2008 | 9:45 am
As the world and his dog fulminates about the potential for growth/recession/depression (take a card, any card), the actual markets appear to be doing their best to pull us out of the malaise that has... Source: Infocious RSS raw feed - channel BNPaperBusiness | 21 Apr 2008 | 9:45 am
NCC (NCC) was one of those banks that decided the mortgage business was simply an outstanding way to make money. The price of homes and commercial buildings would rise at 10% per annum forever, It was a sure fire way to mint money. None of that worked out, so NCC is raising over $6 billion from a group lead by private equity firm Corsair Capital LLC. The price of the shares they will buy is well below market. According to The Wall Street Journal "The plan calls for the investors to pay about $5 a share." The stock closed at...
UBS this morning detailed a catalogue of failures that contributed to a $37.4
billion ($£18.8 billion) writedown, including the rushed set-up of its hedge
fund business, overaggressive growth plans and a lack of risk management. Source: Latest Business News from Times Online | 21 Apr 2008 | 9:33 am
The torpedoes from Viacom (VIA) ran true and have hit CBS (CBS) right in the boiler room. One of Sumner Redstone's companies is out to get the other. Fratricide at its finest. Viacom's Paramount units says it will end its deal with CBS's Showtime. Lionsgate and MGM will do the same. These three will start their own pay TV network which will also compete with Time Warner's (TWX) HBO. It is hard to imagine why this is a good idea, but the video content people are desperate and their minds are clouded by a need to fix their problems quickly....
The Bank of England said it would let banks swap mortgage-backed securities valued at about $100 billion for government bonds. Source: Infocious RSS raw feed - channel BNPaperBusiness | 21 Apr 2008 | 9:15 am
Asia-Pacific shares started the week on a positive note, encouraged by a good end to the week on Wall Street, where the S&P 500 gained 1.8 per cent and the Nasdaq rose 2.6 per cent. Sydney was the... Source: Infocious RSS raw feed - channel BNPaperBusiness | 21 Apr 2008 | 9:08 am
Rentokil, the rat-catching to cleaning services company, has issued its third profit warning since December after City Link, its parcel delivery business, made a £16.9m loss in the first quarter. Source: Telegraph Business | 21 Apr 2008 | 8:32 am
The Bank of England (BoE) launched an unprecedented £50 billion scheme today
to bail out Britain’s ailing banking system and help to ease the tightening
mortgage market. Source: Latest Business News from Times Online | 21 Apr 2008 | 8:25 am
According to Reuters, National City (NCC) will raise as much as $7 billion. Reuters writes that Viacom (VIA) will launch a pay TV channel to compete with Time Warner's (TWX) HBO. Its partners will include MGM and Lionsgate. Reuters writes that The National Association for Business Economics members are becoming more concerned about the economy. Reuters writes that drivers are paying record prices for gas. Reuters reports that a German magazine wrotes that Boeing's (BA) Dreamliner will be delayed again. The Wall Street Journal reports that Blockbuster (BBI) may not be able to finance its plan to buy Circuit City...
Royal Bank of Scotland broke its silence this morning and confirmed that it was planning to raise capital through a rights issue. In a brief statement the bank said it was "considering" the move and added that a further announcement would be made in "due course." RBS gave no further details on the rights issue, which is expected to raise between £10bn and £12bn Source: Telegraph Business | 21 Apr 2008 | 7:29 am
Insurers and law enforcement agencies are seeing more cases with possible financial motives. Many involve properties that are near foreclosure.
Some folks celebrate their last home mortgage payment by setting fire to their loan agreement. Lately, some people behind on their mortgages are simply setting fire to their homes.
Unless sales are big, 'Indiana Jones' giants won't be paid
The Indiana Jones series is known for its cliffhangers. But the real cliffhanger in the long-awaited upcoming sequel is when -- and perhaps even if -- the famous filmmakers and the star will make money.
The joint venture will showcase the work of five studios and compete with HBO and Showtime.
One part of Sumner M. Redstone's media empire took aim at the other Sunday, when Viacom Inc.'s Paramount Pictures teamed up with two studios to create a premium television channel that would compete with Showtime Networks, which is owned by Viacom's sister company CBS Corp.
Lights, Camera, InterAction turns firms' employees into film crews in team-building exercises.
The idea that Hollywood has something to teach corporate America about good business practices might sound like the inspiration for a new comedy movie.
Royal Bank of Scotland confirms it is considering asking shareholders for cash to boost its financial position. Source: BBC News | Business | World Edition | 21 Apr 2008 | 6:57 am
Singapore's investment agency GIC warns that the world faces the worst recession in 30 years. Source: BBC News | Business | World Edition | 21 Apr 2008 | 6:52 am
Royal Bank of Scotland (RBS) confirmed this morning that it was considering a
rights issue that is expected to raise up to £10 billion for Britain's
second-largest bank. Source: Latest Business News from Times Online | 21 Apr 2008 | 6:40 am
Japan is "the most closed investment market in the developed world", while its firms take full advantage of other countries' open economies, says Peter Mandelson, EU trade commissioner Source: FT.com - US homepage | 21 Apr 2008 | 6:27 am
Europe's biggest casualty of the subprime crisis explained how its elaborate risk detection procedures failed to detect that it had built up more than $70bn in potentially dangerous positions Source: FT.com - US homepage | 21 Apr 2008 | 6:21 am
Mobile phone giant Vodafone ranks first in an industry survey of the UK's most powerful brands. Source: BBC News | Business | World Edition | 21 Apr 2008 | 6:02 am
The New Zealand dollar traded in a narrow range today, ignored by major swings in the euro and yen.
Lack of news left the kiwi adrift but it climbed slightly during the day to close at US79.15c, near Friday's close of US79.10c.
ANZ... Source: New Zealand Herald - Business | 21 Apr 2008 | 5:49 am
Reuters - Blockbuster Inc is studying
options like using Circuit City's own balance sheet to
fund its buyout offer, even as the electronics retailer is
asking Blockbuster to prove it can handle an all-cash bid, the
Wall Street Journal reported on Monday citing people familiar
with the matter.
The majority of UK bosses assess the chances of a woman falling pregnant before hiring them, a survey finds. Source: BBC News | Business | World Edition | 21 Apr 2008 | 5:19 am
Annual house price inflation in England and Wales slowed to its weakest level since mid-2005 this month as April suffered its first month-on-month fall in asking prices in six years, a survey out today showed.
The figures reinforce... Source: New Zealand Herald - Business | 21 Apr 2008 | 2:45 am
Efforts to recapitalise the US banking system have entered a new stage as a group of mutual funds and hedge funds led by Corsair Capital, a little-known private equity firm, prepare to put between $7bn-$8bn into National City, the tenth-largest bank in the US Source: FT.com - US homepage | 21 Apr 2008 | 1:19 am
Paramount Pictures, Metro-Goldwyn-Mayer and Lionsgate are to launch a service that will show new releases and classic movies in a move likely to shake up the pay-TV sector Source: FT.com - US homepage | 21 Apr 2008 | 1:08 am
Reuters - Truck maker Isuzu Motors Ltd (7202.T) may
begin building trucks in Saudi Arabia early next year, becoming
the first Japanese automaker to produce vehicles there, the
Nikkei newspaper said on Monday. Source: Yahoo! News: Business | 21 Apr 2008 | 12:17 am
Tougher penalties for breaches of health and safety rules and more regular and rigorous inspections are being urged by the Commons Work and Pensions Select Committee. Source: Telegraph Business | 21 Apr 2008 | 12:01 am
Royal Bank of Scotland shareholders have "reluctantly agreed" that RBS chief executive Sir Fred Goodwin and chairman Sir Tom McKillop should keep their jobs after their dramatic U-turn over the need to raise up to £12bn of new capital. Source: Telegraph Business | 21 Apr 2008 | 12:01 am
Skellerup Holdings is to sell its roofing, conveyor and containment businesses together with the business of Batavian Rubber Co for $12.1 million.
Skellerup chairman Sir Selwyn Cushing also confirmed that the group's vacuum pump... Source: New Zealand Herald - Business | 20 Apr 2008 | 11:30 pm
Google has failed to make any headway in dealing with one of the most controversial issues of online privacy, despite promising a year ago that it would take the lead in tackling the problem Source: FT.com - US homepage | 20 Apr 2008 | 11:03 pm
One of America's largest unions will call for a break-up of Citigroup in a move that underlines the challenges faced by the beleaguered financial services group's management Source: FT.com - US homepage | 20 Apr 2008 | 11:03 pm
The tale has been circulating since the new year of a beleaguered Wall Street
bank that told its senior rainmakers to prepare to relocate to an emerging
market or to leave the firm. Source: Latest Business News from Times Online | 20 Apr 2008 | 11:00 pm
The secretary-general of Opec said yesterday that oil prices could rise even
higher than the present record level of $117 a barrel.<br/>
<br/>
Speaking at the start of the biannual conference between oil-producing and
consumer countries in Rome, Abdullah al-Badri said that factors other than
supply and demand, particularly the weakness of the US dollar, were pushing
oil prices higher.<br/>
<br/>
Many analysts expect oil to rise above $120 a barrel by the summer. Every $2
increase in the cost of oil adds about 1p to a litre of petrol at the pump
in Britain.<br/>
<br/>
Government ministers will meet energy companies, charities and consumer
groups to discuss the issue of energy prices at a fuel poverty summit on
Wednesday, hosted by Ofgem.<br/>
<br/>
Allan Asher, the chief executive of energywatch, a consumer watchdog,
criticised the record of the Government and energy companies. $“Relying on
more voluntary social programmes from energy suppliers is tantamount to
sticking your head as far into the sand as it will go,” he said.<br/>
<br/>
“Government has to be bold enough to admit its fuel poverty strategy has been
broken on a vicious cycle of price rises. Price rises on such a shocking
scale would be catastrophic for consumers; 25 per cent on energy bills means
another million households consigned to the misery of fuel poverty.”<br/>
<br/>
Chakib Khelil, the president of Opec, said yesterday that he saw no need to
raise oil production to counter high oil prices, dealing a further blow to
big oil-consuming countries such as Britain and the United States. Source: Latest Business News from Times Online | 20 Apr 2008 | 11:00 pm
It is a phenomenon first parodied by <i>The Truman Show</i> in 1998 — creating
entertaining content for the benefit of the advertising industry. Ten years
on, advertisers and agencies are keen to turn the concept into reality.<br/>
<br/>
Sir Martin Sorrell, the chief executive of WPP, the advertising group, is
pushing for his industry to work more closely with Hollywood stars and media
companies to help to finance films and television series in which it can
promote its clients’ products.<br/>
<br/>
As traditional spot advertising between programmes comes under increasing
pressure, Sir Martin foresees the advertising industry co-owning a slice of
productions and possibly having involvement in the creative process of
programme-making.<br/>
<br/>
“There are some experiments being made by us and our competitors involving
significant amounts of money,” he says.<br/>
<br/>
Product placement is commonly used in Hollywood blockbusters and British
programmes on commercial television are widely sponsored, but the advent of
advertisers and agencies funding programme-making, and potentially
determining plotlines, would be a departure.<br/>
<br/>
It would also spark controversy about the quality of television programming.<br/>
<br/>
The European Union is considering recommending the relaxation of rules
governing advertising on television. At the same time, Ofcom, the British
regulator, which continues to enforce legislation governing product
promotion on all forms of media in Britain, appears to be leaning towards
more lenient rules concerning television advertising.<br/>
<br/>
In America, where rules governing advertising are less stringent, WPP has
already created some branded content, co-producing the drama series <i>October
Road</i> with Touchstone Television. That move took Group M, the media
planning and buying division of WPP, into a role that traditionally is held
by a production company, using its own finances to invest in the production.
It then marketed opportunities within the show to advertisers.<br/>
<br/>
The advertising group said at the time that many similar productions were
likely to follow, suggesting that this was the start of a trend.<br/>
<br/>
<i>October Road,</i> based on the return of a bestselling author to his small
town American roots, made a strong debut on ABC when it aired in March last
year. Although audiences tailed off, it averaged 10.5 million viewers and
was recommissioned for a second series, with an option for a third.<br/>
<br/>
“We want to do it [<i>October Road</i>-style production deals]
everywhere,” Sir Martin said at the time.<br/>
<br/>
“Content and intellectual property does give us an opportunity to add, or
develop, a new business approach and a new structure to the way we develop
our business, particularly in media planning and buying.”<br/>
<br/>
To help to ensure that big-name stars are involved in future shows, Sir
Martin also wants to forge closer ties with Hollywood talent agents.<br/>
<br/>
“One of the things I think we don’t do well enough is develop intellectual
property with people we know. For example, one of the things that’s struck
me . . . is to work with Hollywood talent agencies like CAA, Endeavour, UTA
or William Morris. We should work more closely with those people in trying
to develop content ideas.” Source: Latest Business News from Times Online | 20 Apr 2008 | 11:00 pm
Britain’s top 350 companies plan to cut spending and jobs and to dispose of
assets as they struggle to cope with the credit crisis, but only a few are
considering cutting dividends, according to a survey by Deloitte, the
accounting firm.<br/>
<br/>
Deloitte interviewed finance directors of British companies with a combined
market capitalisation of almost £100 billion and found that credit
conditions had worsened in this year’s first quarter, even when compared
with the depths of the credit crunch in the second half of last year. About
73 per cent of finance directors said that credit was more expensive, up
from 64 per cent last December.<br/>
<br/>
Sixty-two per cent said that credit had become more difficult to secure, up
from 48 per cent last September.<br/>
<br/>
Ian Stewart, associate director of Deloitte Research, said, however, that
finance directors continued to prefer bank loans to raising cash via rights
issues or bond issues. “Debt markets are, for a lot of companies, closed or
disrupted and equity markets have weakened or are undervalued, so that’s not
an attractive option,” he said. “So they still say that their first port of
call is their banks.”<br/>
<br/>
Finance directors believe that the credit crunch has at least six months left
to run and 44 per cent of them plan to raise the gearing of their company in
the next 12 months. Despite a rights issue of about £10 billion expected to
be announced by Royal Bank of Scotland tomorrow, Mr Stewart said that
finance directors “overwhelmingly say that now is not a good time to raise
equity”. Seventy-eight per cent feel that equity in their company is
undervalued, up from 69 per cent in December.<br/>
<br/>
Discretionary spending, such as travel, entertaining and training, will be the
first to go as the credit squeeze continues. More than half of companies
plan to slow down hiring and almost 40 per cent are considering cutting
workforces. Just under a third plan to sell assets to raise capital.<br/>
<br/>
Only 3 per cent would consider cutting payments to shareholders to save cash.
Mr Stewart said: “The dividend is seen as a signal of long-term strategy.” Source: Latest Business News from Times Online | 20 Apr 2008 | 11:00 pm
The New Zealand sharemarket was on the rise in early trade today, with a 10c gain by Fletcher Building helping lead the way higher.
The firm showing in this country today come after US stocks surged on Friday as internet leader... Source: New Zealand Herald - Business | 20 Apr 2008 | 11:00 pm
ASB has made a move to appeal to those homebuyers looking for around for a 1 or 2 year fixed rate mortgage, cutting its "fighting" 18 month rate to 9.55 per cent from 9.75 per cent.
The other 4 big banks have 1 and 2 year rates... Source: New Zealand Herald - Business | 20 Apr 2008 | 10:50 pm
Speculators are not responsible for pushing agricultural commodity prices to record highs, US regulators will say this week Source: FT.com - US homepage | 20 Apr 2008 | 9:32 pm
Ernst & Young is to launch the biggest shake-up of the professional services industry since the collapse of Arthur Andersen by merging its European partnerships and integrating a further 42 countries into a single unit Source: FT.com - US homepage | 20 Apr 2008 | 9:07 pm
A net 1,009 New Zealand residents emigrated in March, with Australia shooting ahead as the favoured destination.
The increasing number of emigrants to Australia more than overwhelmed net immigration from China, India and the United... Source: New Zealand Herald - Business | 20 Apr 2008 | 9:00 pm
Geneva Finance's investors will convene in a week's time to decide whether the stricken company has a future, and unlike the vote six months ago by which it secured a moratorium, the outcome is no near certainty.
Last November,... Source: New Zealand Herald - Business | 20 Apr 2008 | 7:30 pm
The money markets see no chance at all that Reserve Bank Governor Alan Bollard will cut the official cash rate on Thursday but are looking for the statement to be less stern than in the last review six weeks ago.
The economic indicators... Source: New Zealand Herald - Business | 20 Apr 2008 | 7:15 pm
One year on and the Government's fair dividend rate (FDR) rules are about to hit investors right where it hurts: in the wallet.
The rules affect two groups of people: first, investors with direct holdings of overseas shares, excluding... Source: New Zealand Herald - Business | 20 Apr 2008 | 7:10 pm
Leading reverse-mortgage provider Sentinel is reviewing its funding arrangements and laying off staff as conditions in the property and lending markets deteriorate.
Chief executive Vaughan Underwood said various factors - such... Source: New Zealand Herald - Business | 20 Apr 2008 | 7:00 pm
Reuters - Crude oil prices surged above $117,
setting a new record high on Monday because of worries of
supply disruptions from major producers and comments by OPEC
reiterating there is no need to raise output.
Reuters - Bank of America Corp , the
second-largest U.S. bank, on Monday said first-quarter profit
fell 77 percent, hurt by trading losses and a $3.3 billion
increase in reserves for credit problems.
Reuters - Merck & Co on Monday said
first-quarter profit rose on gains from a deal with longtime
partner AstraZeneca, although the company's sales rose only 1
percent as negative results of a clinical trial slowed growth
of its Vytorin and Zetia cholesterol drugs.
Reuters - The Bank of England moved to ease the
effects of a credit crunch on the UK's banking system on Monday
by offering to swap secure government bonds for riskier
mortgage debt.
Reuters - Stock index futures slipped on Monday,
following the Dow's best week in two months, after
disappointing earnings and commentary from Bank of America Corp
.
AFP - The Bank of England announced a near-100-billion-dollar plan Monday to free up Britain's home loan market in one of the biggest moves by a major central bank to combat the global credit crunch.
Reuters - Blockbuster Inc is studying
options like using Circuit City's own balance sheet to
fund its buyout offer, even as the electronics retailer is
asking Blockbuster to prove it can handle an all-cash bid, the
Wall Street Journal reported on Monday citing people familiar
with the matter.