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Economics
Industrial output: Official figures showed that industrial production,
which makes up 18 per cent of the British economy, fell by 2.6 per cent in
January and is down by 11.4 per cent on a year ago, denting hopes that weak
sterling would boost exports. Manufacturing output, which excludes energy
and utilities, fell by 2.9 per cent in January, taking the annual drop to
12.8 per cent, the steepest decline since January 1981.
Mortgage rates: Figures from the Bank of England show that mortgage
rates are falling more slowly than the bank base rate, pushing spreads
between variable home loan rates and the base rate to record highs. The
average tracker mortgage rate was 3.31 per cent higher than the base rate in
February, while the spread on standard variable rates rose to 3.41 per cent.
French industrial output: Official data showed that French industrial
output fell by 3.1 per cent in January, compared with December. A separate
Budget Ministry statement showed that the country’s budget deficit was €8.1
billion (£7.5 billion) at the end of January.
German economy: Germany’s trade surplus narrowed to its lowest level in
more than seven years in January as exports fell at a sharper rate than
imports. The seasonally adjusted surplus was €8.3 billion, down from €11
billion in December and from €16.3 billion in January last year.
US economy: Investors welcomed comments by Ben Bernanke, Chairman of
the US Federal Reserve, who said that stabilising the US banking system was
his top priority and suggesting sweeping regulatory measures to combat
financial crises.
US wholesale inventories: The US Commerce Department said that
wholesale inventories fell by 0.7 per cent in January, the longest stretch
of declines since 2001. Sales at the wholesale level fell by 2.9 per cent,
the seventh consecutive decline.
Chinese economy: China dipped into deflation in February for the first
time in more than six years. The consumer prices index fell by 1.6 per cent
in the year to February; producer prices inflation fell to minus 4.5 per
cent, from minus 3.3 per cent in January.
Global economy: The International Monetary Fund said that the global
economy could contract for the first time in 60 years and that it expected
global growth of 0.5 per cent to be reported for January.
Banking
& finance
Citigroup: The troubled US banking group was profitable during the
first two months of this year and generated revenues of $19 billion (£13.7
billion), according to a leaked memorandum from Vikram Pandit, its chief
executive.
Friends Provident: The insurance group has scrapped plans to sell its
52 per cent stake in F&C Management after failing to find a buyer for
the fund manager, which has reported a full-year pre-tax loss of £67.2
million.
Northern Rock: The Office of Fair Trading has concluded in a report
that nationalising Northern Rock, the Newcastle-based bank, has had no
“significant adverse” impact on competition across the financial services.
Bupa: The private health insurance group revealed a 53 per cent fall in
full-year pre-tax profits to £187.1 million and warned of worsening trading
conditions.
Cattles: The sub-prime lender, based in West Yorkshire, suspended three
more directors as part of an inquiry into its accounts and said that it was
in breach of its banking covenants.
Dubai Islamic Bank: The group said that it had foreclosed on a property
project and set aside cash to help to cover losses after court papers
indicated that the bank had been the victim of a $501 million (£361.4
million) fraud.
Pearl: The Financial Services Authority, the City regulator, is
considering whether to force the insurance group to reduce its high levels
of debt.
Royal Bank of Scotland: The newly nationalised bank has unveiled plans
for a new mortgage lending package worth £1.7 billion for Scottish
homeowners.
VAT: Alistair Darling, the Chancellor, has won a further two-year
exemption from European Union VAT rules which willl enable the UK
authorities to tackle so-called “missing trader” fraud.
Construction
& property
Ennstone: The troubled building materials group, based in Derbyshire,
said that it has sold off its UK and Polish businesses and saved more than
1,000 jobs after the appointment of administrators to the parent company.
The group’s shares, which had plummeted during 2008, will now be cancelled.
Ennstone’s American unit had sought bankruptcy protection last month.
Consumer
goods
Fyffes: The Dublin-based distributor of tropical fruits reported a drop
in underlying profits to €15.9 million (£14.6 million), down from €18.4
million last time, after suffering “unprecedented” increases in the costs of
its produce, shipping and fuel.
Engineering
EADS: The European aerospace group said that a €20 billion (£18.3
billion) project to build A400M military transporter aircraft for Nato is at
risk of being scrapped next month. The group, which also owns Airbus, the
planemaker, admitted that 2009 “will be a very difficult year for us”.
United Technologies: The American engineering group announced plans to
cut 11,600 jobs and reduce this year’s profit target by 13 per cent. It also
forecast full-year sales of about $55 billion (£39.6 billion), $2.7 billion
less than it had forecast in December.
Weir: The London-listed engineering group, based in Glasgow, reported a
53 per cent rise in full-year pre-tax profits to £176.2 million and said
that 2008 had been the best operating year in its history, but cautioned
over “capital spending deferrals and lower activity levels” in the year
ahead.
Health
Axis Shield: The London-listed diagnostics specialist, based in Dundee,
reported a 27.8 per cent rise in full-year revenues to £85.3 million and
said that it hoped to sell 2,500 Afinion blood-testing systems this year,
with growth driven by European Union acquisitions.
Correction: We erroneously included Lord Patel of Bradford in the group
of cross-party backbench peers who have made amendments to the Health Bill
(“Branding on cigarette packs under fire from MPs”, Business, March 9). The
reference should have been to Lord Naren Patel. We are happy to set the
record straight.
Industrials
Hardide: The AIM-listed surface coatings group, based in Oxfordshire,
warned of a sales shortfall this year and said it would cut jobs as its
customers’ markets had been hit by the economic downturn.
Leisure
InterContinental Hotels Group: The global hotel company has signed a
20-year deal to manage a $100 million (£72.1 million) hotel being built in
Moscow by Crocus Group that is set to become the world’s biggest Holiday Inn
with 1,000 rooms.
Luminar: Britain’s biggest nightclub operator has made Robert McDonald,
formerly of Punch Taverns and Allied Domecq, its finance director. He
replaces Nick Beighton, who has joined Asos, the online fashion retailer.
Arabella Hospitality Group: The German-owned hotel group has appointed
Wolfgang Neumann, former head of Hilton Europe, as chief executive,
replacing the company’s late owner Stefan Schörghuber.
Hilton Hotels Corporation: The American hotel operator is in talks with
London & Regional, the owner of the Hilton-run Trafalgar hotel in
Central London, about the possibility of converting the boutique property to
the newly launched Denizen Hotels brand.
Media
Guardian Media Group: The owner of the Manchester Evening News and the
Reading Evening Post said that it would cut 150 jobs out of 800 in
Manchester and at satellite titles.
Observer Standard Newspapers: Twenty local newspapers in Warwickshire
and Worcestershire are at risk of closure after their family-controlled
parent company became the first significant newspaper group to descend into
administration. Grant Thornton, the accountant, is now in control of the
business.
Natural
resources
Antofagasta: The London-listed Chilean mining group reported a 39 per
cent fall in full-year net profits because of a slide in metals prices, but
boosted its dividends by 21 per cent.
Retailing
Greggs: The bakery chain said it was prepared for “only marginally
positive” sales growth during the year ahead. The group, which has more than
1,400 shops across the UK, added that it had already shown resilience in the
economic downturn with a 4.4 per cent rise in full-year like-for-like sales.
Support
Services
G4S: The global security group reported a 23 per cent rise in full-year
underlying pre-tax profits to £416.4 million, and said that it was confident
of another strong year in 2009. It added that its long-term contracts and
the trend for organisations to outsource work were likely to help its
business.
Scott Wilson: The design and engineering consultancy, based in
Hampshire, confirmed that up to 350 jobs would be cut in Britain and
announced a salary freeze for its remaining UK staff.
John Menzies: The newspaper distribution and aviation services group,
based in Edinburgh, reported a fall in full-year underlying pre-tax profits
to £30.7 million, from £38 million in 2007, after a decline in passenger
flights and cargo volumes and forecast worsening conditions in its key
markets.
Johnson Services: The dry cleaning group pledged to find more
supermarket and drive-in locations after reporting a 36 per cent fall in
full-year profits to £4.2 million, blaming the decline in high street
activity and the rising cost of oil-based products.
Mears: The London-listed social housing and care homes group reported a
26 per cent rise in full-year underlying operating profits, helped by new
contract wins, raised its dividend by 18.8 per cent and said that its sales
pipeline remained buoyant.
Technology
Computacenter: The London-listed technology group, based in
Hertfordshire, reported a 6 per cent fall in full-year pre-tax profits to
£39.5 million, from £42.1 million in 2007, but said that its UK division had
seen strong growth in new contracts during the first quarter of 2009.
SQS: The German software-testing company reported a 26 per cent rise in
full-year pre-tax profits before exceptional items, helped by an 18 per cent
increase in its turnover and new business wins.
Google: The American internet search engine said that it was hoping to
resolve a licensing dispute which has prompted it to block the viewing of
professional music videos on YouTube, the video sharing website.
Telecoms
China Telecom: The company said that it expected to see a significant
year-on-year decline in full-year profits because of provisions for its
wireless network on its personal handy phone system.
Transport
BAA: The airports operator said that its total UK cargo shipments had
fallen by 21.4 per cent during February to 119,984, compared with a year
ago.
Olympic Airlines: The European Union said that it has approved the sale
of Greece’s debt-ridden state carrier to Marfin Investment, the Greek buyout
fund. The deal is expected to earn the Greek state a total of €177 million
(£163 million).
Delta: The American airline said that it would cut its international
capacity by an additional 10 per cent, starting in September, in a move that
will probably mean more job cuts.
Ryanair: The budget airline said that it will do away with airport
check-in desks by October and passengers will have to check in online before
arriving at the airport. They will be able to use baggage drop desks for
their luggage.
Utilities
E.ON: The German utility has given a disappointing outlook, cutting its
2010 profit expectations by about 10 per cent because of the financial
downturn, the impact of regulation and the strong euro.
