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Economics
Manufacturers’ expectations: The CBI’s monthly industrial trends
survey shows that 48 per cent more manufacturers expect output to drop
during the next three months, the same proportion as in November.
Manufacturers also reported the biggest fall in export orders in December
since October 2003, the survey showed.
Inflation: Consumers’ predictions for inflation in the coming year
plummeted in November as the economic downturn worsened. The Bank of
England’s Inflation Attitudes Survey, conducted with GfK NOP, the research
group, showed that Britons believe inflation will run at 2.8 per cent over
the next year, from the 4.4 per cent level reported in August.
European stimulus plan: Germany came under fresh pressure to contribute
more for the planned ¤200 billion (£177 billion) European stimulus plan as
Peer Steinbrück, its Finance Minister, said unrestrained spending would only
increase the burden of debt. Mr Steinbrück’s comments, which included a
withering assessment of Britain’s fiscal response to the crisis, added to
tensions over the European Union package before a summit of EU leaders in
Brussels.
European Central Bank: The £4.5 trillion pledged by governments to the
world’s bankers has failed to end the threat of meltdown at the heart of the
global financial system, Jean-Claude Trichet, President of the European
Central Bank, said.
US trade deficit: Official figures showed that the US trade deficit
rose by 1.1 per cent in October to $57.2 billion (£38.3 billion). Analysts
had forecast a fall in the trade deficit to $53.5 billion. The US trade
deficit with China increased in October to $27.9 billion, from $27.8 billion
in September.
Chinese inflation: Official figures showed Chinese consumer prices rose
by 2.4 per cent in November, down from the 4 per cent increase in October
and below February’s 12-year high of 8.7 per cent.
Banking
& finance
New Star Asset Management: The fund manager has been forced to suspend
dealing in its sub-Saharan portfolio because of rising investor redemptions.
The Heart of Africa Fund was valued at £58 million in October but has almost
halved to £29 million, according to the most recent figures.
Cattles: The sub-prime and doorstep lender is facing a delay in its
attempt to secure a banking licence from the Financial Services Authority,
the City regulator, sending its shares down as much as 25 per cent.
Lending Panel: Bank chiefs agreed to provide more information to the
Chancellor on their lending to small firms and mortgage borrowers. A meeting
of the Lending Panel, which includes most of the bank chief executives and
Alistair Darling, was described as “very productive” by one participant but
failed to yield any new initiatives.
Bank of America: The US financial group announced worse than expected
job cuts of up to 35,000 on the back of its $50 billion (£33.3 billion)
rescue merger with Merrill Lynch as well as the weakening economic
environment.
Construction
& property
Rugby Estates: The investment company which owns £57 million of
property in industrial estates and town centre retail sites, said it will
cut jobs and sell some of its capital portfolio because of the worsening
commercial property market.
Connells: The estate agency chain is poised to sell its 21 million
shares in Rightmove, the property website. The 17 per cent majority
shareholding is up for auction and could raise £40 million if the shares
sell at yesterday’s closing price of 184p.
Consumer
goods
Irish pork: The Irish Government said that it would pay €180 million
(£159.4 million) to help to restart pig slaughtering, which was halted after
Saturday’s recall of pork products because of dioxin contamination. The
Government said it will ask the European Union to approve its state aid to
the sector.
International Greetings: The gift wrap and cracker group, based in
Hertfordshire, reported half-year losses of £7.8 million, compared with
profits of £2.4 million last time. It said it had taken one-off costs of
£1.6 million after it made 116 staff redundant in an overhaul of its UK
operation.
Engineering
BVT Surface Fleet: A £4 billion contract for two Royal Navy aircraft
carriers will be delayed by up to two years, the Ministry of Defence said.
The ships are to be built by BVT Surface Fleet shipbuilding, a joint venture
between VT and BAE Systems, the defence groups.
Boeing: The US planemaker has pushed back the schedule for its troubled
787 Dreamliner by several months because of a strike by its machinists and
persistent problems putting together its newest aircraft model.
Health
AstraZeneca: The Anglo-Swedish drugs maker handed back the rights to
two experimental drugs discovered by Infinity Pharmaceuticals, one of which
has reached final-stage Phase III clinical testing. AstraZeneca inherited
the products — IPI-504 and IPI-493 — through its acquisition last year of
MedImmune, the US biotech.
Industrials
ArcelorMittal South Africa: The steelmaker said it would stick to its
five-year plan to expand liquid steel capacity to 10 million tonnes by 2012,
but has cut 1,000 of its contract workers. It said that the cost of the
expansion would be 11 billion rand (£738.8 million).
Leisure
Punch Taverns: A disagreement has broken out between the pub operator
and a City analyst over a research note arguing that the company is “heading
for zombie status”. The analyst, at Redburn Partners, admitted to making a
“material” error in his note but stood by his prediction that Punch’s equity
was likely to become worthless.
Travelodge: The budget hotel operator has followed its recent agreement
with Aldi, the discount retailer, to look at joint ventures with a deal to
develop a hotel and supermarket in Newcastle-under-Lyme with Lidl, the rival
chain.
Club Med: The French holiday operator said it plans to reduce capital
expenditure by €40 million (£35.4 million), to seek cost savings of €31
million and to cut capacity by 3 per cent next year in response to a decline
in bookings.
Pubs: Several pub companies are reviewing their membership of the
Association of Licensed Multiple Retailers after suggestions by its chief
executive to MPs at the Business and Enterprise Committee that the beer tie
is not working.
Media
Chrysalis: The London-listed music publishing group said all talks
about a possible offer for the company had ended but it continued to weigh
up other “collaborative transactions”.
The BBC: The corporation has offered to share its iPlayer technology
with other broadcasters and plans to produce a new generation of set-top
boxes.
Time Warner: The US media and entertainment group said Jeffrey Bewkes,
chief executive, will become its chairman, succeeding Richard Parsons who
will step down on December 31.
Natural
resources
Rio Tinto: The Anglo-Australian mining group has granted an option to
BHP Billiton, its rival, allowing BHP to sell its stake in Richards Bay
Minerals, its South African joint venture.
Tullow Oil: The London-listed exploration group said it has made oil
finds in Ghana and Uganda which are likely to lead to “material upgrades” to
estimates of the amount that its oilfields hold.
TNK-BP: BP’s troubled Russian oil joint venture has agreed to cut
spending by 27 per cent for next year to $3.3 billion (£2.21 billion), from
$4.5 billion this year, and said that it remained on track to deliver its
best financial performance since its creation in 2003.
Eurasian Natural Resources: The London-listed miner said it would get
an effective one-off cut of $100 million this year under Kazakhstan’s new
corporate tax.
World oil demand: The International Energy Agency said global demand
for oil will fall to about 85.8 million barrels per day this year — 200,000
barrels lower than in 2007 and the first year-on-year decline since 1983.
Retailing
HMV: The owner of Waterstone’s, the high street bookseller, reported
that like-for-like sales had fallen by 3.1 per cent in the 26 weeks to
October 25.
Asda: Andy Bond, chief executive of Asda, the supermarket group,
criticised rival retailers for offering big one-off promotions and
discounts, claiming it will breed mistrust among consumers.
Zavvi: Creditors of Zavvi have parachuted an emergency restructuring
team from Ernst & Young into the struggling high street retailer, which
previously traded as Virgin Megastores.
Support
Services
Premier Farnell: The electronic components distributor reported a 4 per
cent rise in third-quarter profits to £17.7 million and said its growing
online and international businesses were sheltering it from the economic
downturn.
Serco: The business services group, based in Hampshire, has bought 60
per cent of InfoVision, the Indian company, for £13.3 million, and will
enter the FTSE 100 later this month as part of the index’s latest reshuffle.
Mouchel: The Surrey support services group said it was on track to meet
its full-year expectations as it benefited from a strong order book and
bidding pipeline.
Butcher Burns: The money-laundering conviction of Jonathan Krestin
(against which he is appealing) to which we referred on December 9 was in
relation to €14,000 (£12,400), not €35 million. Our apologies to Krestin and
the partners of his firm, Butcher Burns solicitors.
PA Consulting: The management and technology consultancy has been
awarded a nine-month contract by Ofcom, the telecoms regulator, to predict
spectrum availability across the UK over the next 15 to 20 years.
Technology
Imagination Technologies: The London-listed computer chip designer
reported a fall in first-half pre-tax profits to £85,000, from £1.3 million
last time, because of lower margins in its Pure digital radio business and
higher expenses. But its shares rose by 7 per cent as it said it continued
to see a pipeline of licensing opportunities.
Telecoms
Grameenphone: Bangladesh’s leading mobile phone operator, which is
controlled by Norway’s Telenor, has filed its final application for an
initial public offering of $65 million (£42.2 million), the country’s
biggest flotation.
Transport
Cathay Pacific: Asia’s third-largest carrier said the number of
passengers travelling with the airline and its subsidiary Dragonair had
dropped by 2.2 per cent in November, compared with last year, and the two
airliners’ cargo shipments had seen a decline of 15.4 per cent, weaker than
expected.
Air France-KLM: The Franco-Dutch airline said it has lodged a complaint
with the European Commission accusing Lufthansa, its German rival, of
benefiting unfairly from state aid in its deal to acquire Austrian Airlines.
Aer Lingus: Dermot Mannion, chief executive of the Irish airline, has
described the €748 million (£662.4 million) takeover bid made by Ryanair,
the low-cost airline, as “pathetic”.
Utilities
E.ON Gas Storage: The German utility is to sell five terawatt hours of
gas storage capacity for usage in the 12 months from April 2009 and will
step up storage investments to create more supply flexibility and exploit
gas demand.
