View
video and Need to Know interactive heatmap
Economics
Sterling: The pound slumped closer to parity with the euro as currency
dealers expected another cut in UK interest rates as early as next week.
Sterling slid by more than two cents to a record low of €1.02 - or 97.99p to
the euro - on wholesale markets. Tourists were being offered less than a
euro for £1. Predictions that the Bank of England may cut base rate again
next Thursday from its postwar low of 2 per cent added to the weakness.
Mortgages: Britons paid off existing mortgages at a faster rate than
they took out new ones in this year’s third quarter, Bank of England data
showed. Households repaid a net £5.695 billion between July and September
after repaying £1.951 billion in the previous three months. That took
housing equity withdrawal as a percentage of post-tax income to -2.4 per
cent, from -0.8 per cent. In the third quarter of last year, housing equity
withdrawal exceeded £11 billion, or 4.8 per cent of post-tax income.
Eurozone: Slovakia is to adopt the euro on January 1 — the tenth
anniversary of the European single currency’s birth.
Libor: Interbank lending rates fell and measures of money market stress
eased yesterday as cash injections from central banks and interest-rate cuts
in the face of the global economic downturn helped to calm investors. The
spread of London interbank offered rates (Libor) for three-month dollar
funds over anticipated policy rates fell to its lowest since the period
immediately after the failure of Lehman Brothers. Three-month euro and
sterling Libor rates were again fixed lower, having fallen in every session
since early October.
Rouble: Russia devalued the rouble again yesterday and Kremlin leaders
called for government unity to deal with the biggest economic challenge in a
decade. Russia’s central bank began a gradual depreciation of the rouble in
November in response to slumping oil prices, a worsening economy and
investors’ flight from emerging markets.
German economy: Germany’s Government said it will decide by mid-January
on a second stimulus plan aimed at providing another shot in the arm to
Germany’s ailing economy, Europe’s largest.
Oil: Oil prices bounced back above $40 in London on rising unrest in
the Middle East and evidence that Opec members have begun complying with
agreed output cuts.
Banking
& finance
Lehman Brothers: The US investment bank’s bosses destroyed as much as
$75 billion (£51 billion) of the company’s value by rushing the stricken
group into a surprise bankruptcy filing, it has been claimed. Bryan Marsal,
of Alvarez & Marsal, the company restructuring Lehman, described the
filing on September 15 as “an unconscionable waste of value”, depriving the
bank’s unsecured creditors of much of the $200 billion they are owed.
Madoff affair: The FBI is understood to be monitoring the movements of
key people connected to the $50 billion Bernard Madoff investment scandal as
the federal agency comes under increased pressure to construct a criminal
case against the 70-year-old financier.
KBC: The Belgian banking and insurance group, said that it expects a
quarterly loss of €900 million (£877 million) after credit portfolio
writedowns.
Panmure Gordon: The broker, said that recent losses on its UK trading
book incurred in the past few weeks would affect annual results.
Skipton Building Society: The mutual society said that it had reached
an agreement to join with Scarborough Building Society. The deal is to be
finalised on March 30 next year, subject to approval by the Office of Fair
Trading and confirmation by the Financial Services Authority.
Standard Chartered: The bank said that it had completed its acquisition
of a portion of Asia Trust and Investment Corporation in Taiwan. The move is
set to increase the bank’s presence in the country from 88 branches to 95.
LINK: The operator of the UK’s cash machine network, reported a jump in
the value of withdrawals at its machines by £367 million, compared with
2007, in the month to Christmas Eve. More than £1.4 billion was withdrawn
from December 22 to December 24, as shoppers took advantage of pre-Christmas
sales.
Japanese insurers: Three of Japan’s biggest insurers, Mitsui Sumitomo
Insurance Group, Nissay Dowa General Insurance and Aioi Insurance, are in
merger talks.
Catastrophes: Global losses from natural catastrophes are forecast to
have reached $200 billion (£137 billion) in 2008, according to Munich Re,
the German reinsurance group.
Construction
& property
Bovis Homes: The housebuilder has renegotiated its £220 million banking
facility with six lenders earlier than expected. Covenants have been
relaxed, but Bovis will have to pay a higher interest rate.
PIK Group: The Russian residential property developer, said that it had
been included on the list of strategically important companies that will be
able to count on state support from Russia’s Government.
Consumer
goods
Hot Tuna: The surf fashion brand, said that a deal with Debenhams, the
department store chain, had increased its 2009 UK orders dramatically.
Annual sales grew by 82 per cent to £1.1 million.
Engineering
Motor industry: Car production in North America will sink to its lowest
for more than 20 years next year and output in Europe will fall to a 12-year
low, with Britain hit the hardest, according to PricewaterhouseCoopers, the
accounting firm.
Japanese carmakers: Japan’s mighty automotive industry, which consists
of at least ten big manufacturers, could soon be reduced to a Detroit-style
Big Three.
Metalrax: The supplier of specialist engineering and consumer durable
products, has sold its Welland Engineering Supplies business for about
£300,000. Welland distributes to the construction and automotive sectors an
extensive range of tools and accessories.
Orpak Systems: The provider of service station fuel systems said that
its Turpak unit has won a new contract from Shell Turkey to supply 1,100
tank automation and 400 pump automation systems.
Health
Stem Cell Sciences: The developer of stem-cell technologies said that
research describing a technique for creating authentic embryonic stem (ES)
cells from rats has been published in the Cell journal. The company said
that the publication is believed to be the first in which germ-line
transmission from rat ES cells has been definitively demonstrated and that
it uses technology licensed exclusively to SCS.
Industrials
Dow Chemical: Shares in the American chemicals company slid 22 per
cent, the biggest fall in nearly 30 years, as investors reeled from a
decision by Kuwait to scrap plans for a joint venture.
Yule Catto: The chemicals company has suspended dividend payments to
try to reduce its debt burden. The group said that it had refinanced with
its main banks, HSBC and Barclays, a £30 million revolving loan facility.
Leisure
Globe Pub Company: The tenanted pub operator, controlled by Robert
Tchenguiz’s R20 investment vehicle, faces an uphill battle to stave off
administration after reporting a 20 per cent slump in second-quarter
earnings. Globe said that after a fall in its debt- service cover ratio, it
would be “appointing an independent consultant with whom it will discuss
operational issues”.
Marston’s: The brewer and pub operator’s five executive directors
all received less pay this year after failing to earn a bonus. Ralph
Findlay, chief executive, received a total of £452,000, down from £496,000
in 2007.
Media
Entertainment Rights: The owner of the children’s television characters
Basil Brush and Postman Pat, said that it was in early-stage talks about a
possible bid for the company, as it also seeks to secure funding.
Natural
resources
Rio Tinto: The mining group is seeking a meeting with the new military
junta in Guinea to discuss its $6 billion (£4 billion) Simandou iron ore
project. Rio had been in a dispute about Simandou with the previous
government of President Lansana Conte, who died last week, sparking a
military coup.
Antrim Energy: The oil and gas exploration company, said that it
expects UK regulatory approval for the Phase I development plan of its
Causeway property in the UK North Sea during 2009.
Venture Production: The oil and gas producer said that it had brought
the Grouse oilfield in the central North Sea into production, and met
production targets. Initial well productivity was in line with previous
estimates of about 5,000 barrels of oil equivalent per day (boepd) net to
the company.
Retailing
USC: The empire of Sir Tom Hunter, the billionaire entrepreneur and
philanthropist, unravelled further yesterday as USC, his fashion chain, fell
into administration.
Woolworths: The retailer shut a further 38 of its 807 stores yesterday,
including its longest-running branch, in Croydon, which had been open since
1912.
Olan Mills: Britain’s biggest studio photography business has
collapsed, raising fears that thousands of families will not receive
pre-paid Christmas gifts.
John Lewis: Britain’s biggest department store chain, gave further
evidence of a post-Christmas surge in shopping. The high street bellwether
said that it enjoyed record trade on Saturday at the start of its clearance
sale, with takings hitting a total £21.3 million, up 7 per cent on the
equivalent day last year. It said that it had enjoyed record sales of home
technology and womenswear.
Support
Services
Heller Ehrman: the Californian law firm, which was dissolved in
September, has been put into Chapter 11 bankruptcy. A petition filed in San
Francisco said that the firm had both assets and debt of $50 million (£34
million) to $100 million. The firm, founded in 1890, was dissolved after it
failed to find a merger partner and defaulted on credit agreements.
Satyam: Four of the nine board members of Satyam, the Indian IT group,
have resigned after an attempt to buy two struggling construction companies
controlled by the outsourcer’s founder and chairman. The attempt brought
about one of the biggest investor revolts seen in India.
Technology
Dmatek: The provider of technologies that monitor people remotely, said
that it had agreed to be bought for £52.9 million by an investor group led
by Francisco Partners, the private equity fund. The Israeli-based company,
whose technologies are used by law enforcement agencies and care homes, said
that the cash offer of 215p a share was 82 per cent above its closing price
on October 6, the day before it announced bid talks with another party.
NXT: The UK-based flat-panel speaker group said that it had signed a
three-year licensing agreement with Nissha Printing, of Japan, for its
technology to be used in certain small touch-screen applications. NXT said
that Nissha, which makes decorative films and touch panels, is to pay it
£1.2 million upfront for the licence to use its haptic and associated
bending wave technology, and royalties on the sale of relevant products
thereafter.
Pure Wafer: The reclaimer of silicon wafers has disclosed a bid
approach. It also reported an annual pre-tax loss of £800,000, down from a
£3.6 million profit last year, because of over-supply of wafers in a
challenging semiconductor market. The group said that it does not expect a
market recovery in the near future.
Telecoms
Telenor: The Norwegian telecoms company has had a court victory. A
Russian appeal court has dismissed a £1.9 billion sum that Telenor had been
ordered to pay to Vimpelcom, the Russian mobile operator. The Siberian court
also ordered a retrial of the case, which pits Telenor against Farimex, the
little-known Vimpelcom investor.
Etihad Atheeb Telecommunications: The telecoms company, one of three
licensed to operate new fixed-line networks in Saudi Arabia, plans to raise
300 million riyals (£55 million) in an initial public offering next month.
Transport
China Eastern Airlines: The carrier said that its parent had obtained a
5.563 billion yuan (£557 million) capital injection from China’s Government,
on top an earlier 3 billion yuan aid package. The funds will be used to
improve the airline’s balance sheet and strengthen its ability to continue
operations.
Utilities
Centrica: The parent company of British Gas has reached agreement with
Bow Valley Energy to acquire its 66.67 per cent equity in the UK segment of
the Peik field, which straddles the UK Continental Shelf and Norway median
line, for $30 million (£20.5 million) in cash. The agreement, subject to
pre-emption and approvals, would add to Centrica’s existing holdings in the
Norwegian portion of the Peik field.
RWE npower: The energy group has secured a grid connection for a new
nuclear power station at Wylfa, Anglesey. The connection provides RWE npower
with the rights to feed 3.6GW of electricity into the national grid. The
group has also acquired options to buy farmland at Wylfa near the existing
Magnox nuclear power plant as part of its development of nuclear new-build
opportunities.
Sibir Energy: The Russian oil group, which is buying property assets to
bail out its Russian shareholders, has bought 18.36 per cent of
Mosnefteprodukt, a service station group, for $34.9 million.
