Economics
British retailing: Sales plunged in November at the joint-fastest pace
since records began 25 years ago, a CBI survey showed. Some 42 per cent more
retailers reported that sales fell rather than rose in November, matching
the record high set in August this year. The prospects are also bleak, with
40 per cent more retailers expecting sales to fall in the coming three
months, the worst figures recorded in November since 1983.
UK inflation: Britons expect inflation to fall to 0.9 per cent next
year, a survey from GfK NOP showed, fuelling expectations that the Bank of
England will cut interest rates again next week. A quarter of respondents
said prices would fall over the coming year.
Eurozone: Inflation in the eurozone fell at a faster rate than expected
in November. CPI inflation dropped from 3.2 per cent to a 14-month low of
2.1 per cent during the month.
Swedish recession: Sweden has become the latest country to slide into
recession. The Swedish economy shrank by 0.1 per cent in both the second and
third quarters, official figures show. The central bank is expected to slash
interest rates when it next meets in mid-December, with some economists
forecasting a cut of between 75 and 100 basis points.
Japanese retailing: Japan’s retail sales fell 0.6 per cent in October,
compared with a year earlier, after a 0.3 per cent fall in September. This
decline was slightly less severe than the 0.9 per cent fall economists had
forecast.
Japanese industry: Japan’s industrial production slid by 3.1 per cent
in October after a 1.1 per cent rise in September, according to figures from
the Ministry of Economy, Trade and Industry. The Government expects worse to
come. It projects factory output to drop by 6.4 per cent in November and by
2.9 per cent in December.
Banking
& finance
Commerzbank: The second- biggest bank in Germany said that it would
take control of Dresdner Bank for much less and sooner than expected, to
integrate it quickly amidst volatile financial markets. The acquisition from
Allianz, the insurance giant, will be made at almost half the initial
overall price and finalised in January.
Italian banks: Giulio Tremonti, the Treasury Minister, said that Italy
could hand out up to ¤12 billion (£9.9 billion) to boost the strength of its
banks, smoothing lending to business, as part of a package to keep recession
at bay. He expected banks to ask the Treasury to underwrite bonds for up to
€12 billion.
European Central Bank: EU banks must significantly improve back-up
plans for coping with unexpected liquidity shortfalls, the ECB said. A
report, by a committee of ECB officials, said that institutions must set
aside the stigma of tapping central bank facilities in times of liquidity
problems.
Royal Bank of Scotland: The Government will be left with a 58 per cent
stake in RBS after investors snubbed the troubled bank’s £15 billion rights
issue. RBS said that only 0.24 per cent of the new shares, offered last
month at 65.5p per share, were taken up, leaving the Government to buy
nearly 23 billion shares.
Friends Provident: The life and pensions company is spending £30
million on a 30 per cent holding in AmLife Insurance Berhad, a Malaysian
company. Friends said that the deal would give it a stake “in a fast-growing
business with excellent potential”.
Legendary Investments: The UK investor backed by Shami Ahmed, the
fashion entrepreneur, suspended its shares on AIM after the collapse of of
Echelon Wealth Management. Legendary had a trading account with Echelon,
which acted as its broker, that contained a substantial positive balance of
up to about £600,000, the bulk of its cash.
Aviva: The insurer has sold its RAC Auto Windscreens business under
plans to focus on its core operations. Arques Industries, the German
restructuring specialist, has snapped up the windscreen repair and
replacement specialist for an undisclosed sum.
Construction
& property
Promociones Habitat: Spain’s fifth-biggest real estate company has gone
into administration. The Barcelona-based property company said that it had
financial commitments of up to € 2.3 billion. It blamed the real estate
crash in Spain and the credit crunch for its demise.
Metrovacesa: The indebted Spanish property company wants HSBC to buy
back a landmark London skyscraper that it bought from the bank less than two
years ago after failing to refinance debt secured on the asset. Metrovacesa
agreed to propose a sale of HSBC’s European headquarters at Canary Wharf
back to the bank for £838 million.
Consumer
goods
Tate & Lyle: The sugars and ingredients group appointed Sir Peter
Gershon as non-executive director and chairman-elect. Sir Peter led a review
of government spending that identified cost savings of £21.5 billion.
Engineering
Metso: The Finnish engineer has discontinued a study with Goldman Sachs
on possible structural options for the company amid turbulent global
markets. Metso unveiled the study in August as part of an organisational
revamp, prompting speculation that it could spin off its minerals business
from its struggling paper unit.
Health
Pharmaceuticals: Big drug companies have cost European consumers ¤3
billion (£2.5 billion) by hindering the production of cheaper generic
versions of their medicines, the European Commission said. Neelie Kroes, the
Competition Commissioner, said in a preliminary report that they had applied
for multiple patents for the same drug to frustrate production of cheaper
drugs.
AstraZeneca: The Anglo-Swedish drugmaker faces a delay in getting
motavizumab, an infant lung drug, from its recently acquired MedImmune
biotech unit to market in America. The company was confident that it could
respond to questions from the US Food and Drug Administration.
Industrials
RPC: The plastic packaging supplier said its results for the second
half were expected to improve, helped by cost-cutting, by price increases
and by easing polymer costs. It posted a 27 per cent fall in first-half
adjusted pre-tax profits to £10.1 million.
Leisure
Millennium & Copthorne Hotels: The hotel group confirmed that a
planned £232.6 million sale of the Millennium Seoul Hilton in South Korea to
Kangho AMC had been terminated because of the inability of the buyer to
finance it.
FishWorks: The fish restaurant chain made a full-year loss of £5.5
million — despite increasing its like-for-like sales by 5.1 per cent — after
booking an impairment fee of £3.4 million against underperforming sites.
Coffeeheaven International: The coffee bar owner, which has 90 outlets
in Eastern Europe, said that like-for-like sales had jumped 16 per cent as
overall revenues grew 82 per cent to £11.9 million in the six months to
September 30.
D&D London: The restaurant group, formerly known as Conran
Restaurants, has acquired 100 per cent ownership of its joint venture in
Copenhagen after the collapse into bankruptcy of its partner Centerplan, the
property firm.
Media
Independent News & Media: The Independent is to move in with the
Daily Mail in West London next year, in a scheme designed to help to
safeguard the future of the struggling upmarket title by saving it about £2
million a year. Independent News & Media will still own The Independent and
its Sunday sister title, but will share back-office services with Associated
Newspapers.
BSkyB: The broadcaster stepped up its fight against a government
ruling that it must ditch more than half its 17.9 per cent stake in ITV. It
has asked for permission to take its case to the Court of Appeal after
BSkyB’s legal challenge against the decision was dismissed by the
Competition Appeal Tribunal in September.
Natural
resources
Lonmin: South Africa’s Solidarity union said that Lonmin, the world’s
No 3 platinum producer, had notified it that it planned to cut a total of
4,000 jobs at two platinum mines. Lonmin said last Tuesday that it would
close some high-cost mines and cut costs to survive a market downturn.
Aurum Mining: The goldminer has rejected proposals from potential
business partners and buyers and is seeking authority to cancel its share
premium account, which would enable a future return of cash to shareholders.
The company said that it expected the return of cash to take place early in
the second quarter of next year.
Retailing
Moss Bros: Sir Philip Green has sold his entire 28 per cent stake in
the gentlemen’s outfitter. The TopShop tycoon said that he had decided not
to bid for the company. Warbeck, Sir Philip’s vehicle, said that he had sold
the holding to HA Canna, a trust represented by Simon Berwin, the clothing
supplier, whose clients include Sir Philip and Next. The trust now holds
29.99 per cent, but said that it had no intention of making an offer for
Moss Bros.
Woolworths: Metrodome, a UK-listed film and television distributor,
said that it risked losing £320,000 it was owed by the collapsed retailer.
Metrodome said that Entertainment UK, Woolworths’ music and video game
distribution unit, which was placed into administration with the main
business, was one of its largest customers.
Strategic Retail: The owner of the Fads, Leveys and Texstyle World
furnishing stores reported wider half-year losses and said that it was
finding it difficult to reposition the business in the value-for-money
sector. It said sales at Texstyle World were 11 per cent down on a
like-for-like basis in the six months to August 30.
Support
Services
Rentokil Initial: The pest control group confirmed the departure of
Andrew Macfarlane, its finance director, and said that he would be replaced
from January 5 by Michael Murray, who joins from GSL, a private equity-owned
support services company.
Babcock International: The company has signed a £167 million deal with
the London Borough of Hackney under the Government’s Building Schools for
the Future scheme. Babcock and Mouchel, its joint venture partner, are to
refurbish and build schools, as well as improving IT.
Technology
Yahoo!: Carl Icahn, the billionaire corporate raider, has increased his
stake in Yahoo! to 5.4 per cent, from 5 per cent, according to documents
filed with the US Securities and Exchange Commission. He spent $67 million
(£43.4 million) on 6.77 million more shares. The move came just days after
Jerry Yang, co-founder and chief executive, stepped down.
Autonomy: The infrastructure software group won this year’s Company of
the Year Award 2008 at the techMARK Awards.
Telecoms
Comstar: The Russian fixed-line telecoms operator reported a 22 per
cent year-on-year increase in third-quarter core earnings, but said it would
cut capital expenditure because of the financial crisis.
Transport
Frontline: The world’s biggest independent oil tanker shipping group, based in
Norway, reported a smaller than expected rise in quarterly operating profit.
Earnings before interest and tax rose to $173 million in the third quarter,
from $57 million a year before.
Utilities
Bristol Water: The company that supplies 1.1 million customers in
Bristol said that second-half results would reflect higher energy costs and
an increase in interest charges on its debts. Pre-tax profits fell 6 per
cent to £10 million in the six months to September 30.
