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Economics
Retail sales: The Office for National Statistics said retail sales rose
by 0.3 per cent in November and are up by 1.5 per cent on last year. A 3.9
per cent rise in sales of household goods, the biggest monthly increase
since July 2007, fuelled the growth. Food sales were up 0.2 per cent, but
clothing and footwear sales had dropped by 0.5 per cent.
Repossessions: The Council of Mortgage Lenders said the number of
repossessions is set to surge by 67 per cent to 75,000 next year. Home
repossessions peaked at 75,500 in 1991, the last time the UK was in
recession.
The pound: Sterling sank to a record low against the euro for the ninth
day running, with the single currency reaching 95p on speculation that the
Bank of England will follow the US Federal Reserve in cutting the cost of
borrowing to zero. The UK’s public finances showed that net borrowing soared
to a record £16 billion in November as tax revenue declined.
Irish GDP: The Irish Government has raised its 2009 budget deficit
forecast and said that while data showed an economic rebound in the third
quarter, there was little hope of a quick recovery from the slump. Irish GDP
surprised with a 1.2 per cent rise in July-September after two consecutive
quarters of contraction, a technical measure of recession.
US unemployment: According to official data, 554,000 Americans filed
new claims for unemployment benefit last week, down by 21,000 from the week
before. About 6.7 per cent of the US workforce is out of a job and Wall
Street expects that figure to rise to 10 per cent next year.
Banking
& finance
Swinton: The high street insurance broker said that it had bought
Equity, its rival, in a £50 million deal to seal its position as the UK’s
third-largest insurance retailer. Swinton, which bought Equity from
Insurance Australia Group, said that it will keep all 91 of Equity’s stores
open.
Cattles: The sub-prime and doorstep lender is scrapping dividends for
at least a year amid continuing delays in its attempt to secure a banking
licence. The group, which describes itself as a “specialist lender”, said
that although trading for the year was in line with expectations, arrears on
loan repayments had risen from 7.4 per cent to 7.8 per cent.
Banco Santander: The Spanish bank has been given permission by European
Union regulators to buy the retail banking arm of Bradford & Bingley,
months after the British Government bought the lender to save it from
collapse during the financial crisis.
Moneyfacts.co.uk: The financial website said there was an increasingly
wide gulf between the cost of wholesale funding and the price of new
mortgages and added that the total number of mortgages has fallen by almost
three quarters since the beginning of the year.
Swiss Re: The world’s largest reinsurance company reported that the
volume of claims on natural and man-made disasters in 2008 had almost
doubled from last year to $50 billion (£32.6 billion), making 2008 the
second-costliest year for disaster underwriters.
Permira: SVG Capital, the listed fund that backs Permira, told
investors that it has written down the value of 13 of the buyout group’s
biggest holdings in companies by £467 million.
Coutts: Sir Keith Mills, the tycoon behind Nectar loyalty cards, has
begun a campaign to shame Coutts after the private bank allegedly advised
him to keep his money in savings bonds issued by AIG, the troubled American
insurer.
Construction
& property
British Land: Chris Grigg, the former chief executive of Barclays
commercial bank, is to replace Stephen Hester as chief of British Land, the
property group.
Morgan Sindall: The construction and regeneration group said that it
was in line to hit its targets of “record” profits this year, with its order
book looking robust at £3.8 billion and a development pipeline of £1.3
billion in its urban regeneration division.
Consumer
goods
Pernod Ricard: The French drinks group said that it has sold four
brands — Star Gin, Red Port, Dry Anis and Grönstedts Cognac — to Arcus
Gruppen, the Norwegian wine and spirits supplier controlled by Ratos, the
Swedish investment group. The sale had been stipulated by the European
Commission in return for its approval of Pernod’s acquisition of V&S
Vin & Sprit, the Swedish drinks group.
Engineering
Siemens: The German engineering conglomerate said it expects the
restructuring of its mobility and Osram units to help its industrial sector
to reach its fiscal 2008-09 targets and added that it saw the global
financial crisis as an opportunity to buy up rivals.
Porsche: The German luxury sports car maker said that sales in the
first four months of its fiscal year had slid by 9.7 per cent to €2.2
billion (£2.1 billion), compared with €2.4 billion a year ago.
Winnebago Industries: The US maker of motor homes reported a
fourth-quarter loss of $9.6 million (£6.3 million), compared with a profit
of $10 million last time, with revenues falling by 68 per cent to $69.4
million. Analysts had forecast revenues of $77.4 million.
Health
Wyeth: The US drugs maker said that it has acquired Thiakis, the
London-based biotech group, in a deal that could be worth up to $150 million
(£99 million).
Industrials
BOC: Competition watchdogs have blocked the proposed acquisition by
BOC, the German-owned industrial gases group, of the packaged chlorine
business and assets of Ineos Chlor. The Competition Commission said the
merger would result in a substantial lessening of competition in the
distribution of packaged chlorine in cylinders and drums in the UK.
Leisure
Thomas Cook: The tour operator announced the acquisition for up to £87
million of Gold Medal International, the independent travel company that
carries about 550,000 passengers a year. It is paying £24.9 million for an
initial stake of 50.01 per cent.
Rank Group: The gaming operator reported a 1 per cent increase in
like-for-like sales during the 15 weeks to December 14, with bingo being
flat and casinos up by 4 per cent, and said trading was in line with market
expectations.
Park Resorts: GI Partners, the private equity owner of the holiday park
operator, has removed the senior management team, led by Martin Grant, chief
executive, and brought back the three founders of the business, including
David Vaughan, who will take over as chief executive.
Virgin Holidays: The travel group has announced the acquisition of the
assets and trademark of Travel City Direct, part of the failed XL Leisure
Group.
Punch Taverns: The pub company said it expected to have to take back up
to 43 of the leasehold pubs that it sold to Orchid Group after the
appointment of administrators. It added that it would continue to trade the
majority.
Media
Chrysalis: The music group said that its losses have tripled to a
pre-tax deficit of £18.8 million for the 13 months to September 30, from a
£6 million deficit in the year to August 3, 2007, in its first full year as
a focused music and distribution group.
Informa: The publishing and events group which produces Lloyd’s List,
the maritime newspaper, said its full-year results were set to be in line
with expectations as it benefits from currency movements, but added that it
would continue to reduce costs.
Independent News & Media: The newspaper publisher said that Liam
Healy and Joe Davey are to retire from the board on December 31. Mr Healy
had previously acted as chief executive and deputy chairman for the group.
Natural
resources
Aurum Mining: The gold miner whose principal asset is the Andash gold
and copper project in Kyrgyzstan, has started a capital reduction process to
enable a return of cash to shareholders in 2009.
Seaweed and marine algae: The European Union is providing £5 million to
fund the harvesting of seaweed and marine algae to turn them into green
energy in Northern Ireland, Scotland and the Irish Republic.
Sibir Energy: The London-listed oil explorer, which drills for oil in
Siberia and runs petrol stations in Moscow, is set to invest more than $500
million (£326 million) in Russian property assets to support Chalva
Tchigirinsky, its largest shareholder, who has been hit by the falling value
of Russia’s stock and property markets.
Retailing
Co-operative Group: The retailer said that 700 of its food stores had
been given a new look this year as part of a £200 million refurbishment
exercise.
HobbyCraft: The Dorset-based arts and crafts superstore chain reported
full-year pre-tax profits that were 10 per cent higher than last year at
£3.2 million, with like-for-like sales up by 1.6 per cent.
Support
Services
FedEx: The US distribution business said that its fiscal second-quarter
earnings had risen by 3 per cent to $493 million (£327 million), compared
with $479 million last time. Revenues rose by 1 per cent to $9.54 billion.
FedEx added that it was planning cost cuts amid slumping demand.
Technology
Imagination Technologies: Apple, the US technology group, revealed that
it had taken a 3.6 per cent stake in Imagination Technologies, sending
shares in the Hertfordshire maker of digital radios up by 28 per cent. Apple
bought 8.2 million shares for about £3 million. Imagination is behind Pure
digital radios, the UK market leader.
ASML Holding: The Dutch group, which provides technology systems to
computer chip makers, said it was cutting 1,000 jobs — more than 10 per cent
of its global workforce — after a drop in orders. It forecast that
fourth-quarter sales would be between €450 million (£426 million) and €500
million, down from the €530 million that it had projected in October.
Telecoms
Telecom Italia: Viviane Reding, the European Union Telecoms
Commissioner, has again warned Italy not to split Telecom Italia into
separate business units until Brussels gives its approval. Agcom, Italy’s
telecoms regulator, had said last week that the division would begin in
January to boost competition in broadband services.
Vodafone: The world’s largest mobile phone operator said that it had
completed the acquisition of an additional 4.8 per cent stake in Polkomtel,
the Polish mobile operator, for €177 million (£168 million), taking
Vodafone’s stake to 24.4 per cent.
Virgin Media: The US-listed mobile phone provider and cable TV
operator, has appointed Jerry Elliott as chief financial officer. Mr Elliott
will be based at Virgin Media’s head office in Hook, Hampshire, from January
5.
Transport
Arriva: The transport group which operates bus services in London,
Liverpool, Leeds and Newcastle, predicted a £60 million increase in its
annual fuel bill for 2009, despite the recent slump in global oil prices. It
has fixed 85 per cent of its fuel requirements for 2009 at an average price
per litre of 42.4p, compared with the 29.2p per litre paid this year.
British Airways: The national carrier said that it had failed to reach
agreement with Qantas, the Australian airline, about a potential merger.
SAS: The Scandinavian airline said it has signed an initial agreement
to sell parts of its troubled Spanair unit to investors in Spain. SAS has
been trying to sell Spanair, Spain’s second-largest airline after Iberia,
for more than a year.
Utilities
Nuclear power: A nuclear power station which was due to close at the
end of the month will continue to generate electricity into next year and
beyond, it has been announced. The site at Oldbury in Gloucestershire will
continue producing electricity for about two years, generating income of
between £100 million and £150 million, depending on the sale price.
