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Economics
Mortgage approvals: Figures from the Council of Mortgage Lenders showed
that mortgage approvals rose by 16 per cent in April to a six-month high of
35,600 — but still 28 per cent lower than in April last year.
Construction orders: Official figures showed that construction orders
rose by 17 per cent in April. But on the less volatile three-monthly
figures, orders dropped by 9 per cent between February and April compared
with the previous quarter, and by 38 per cent from a year ago.
Inflation expectations: Consumers questioned in May said they expect
inflation to be 2.4 per cent in the next 12 months, up from 2.1 per cent in
February, according to the latest Bank of England/GfK NOP Inflation
Attitudes Survey.
Economic prospects: The economic index produced by the Conference
Board, a private research group, rose by 0.9 per cent in April to 92.2,
after a 0.5 per cent fall in March and a 0.6 per cent drop in February.
US caution: Paul Volcker, chairman of President Obama’s Economic
Recovery Advisory Board, and former chairman of the US Federal Reserve,
warned that a strong recovery in the United States was unlikely despite
signs of an emerging upturn.
US retail sales: Official figures showed that sales by US retailers
rose in May for the first time in three months, climbing by 0.5 per cent.
But economists said that the data were flattered by the impact of rising
petrol prices.
US household net worth: The US Federal Reserve reported that household
net worth fell to $50.38 trillion in the January-March quarter, the lowest
level since the third quarter of 2004 and a decline of 2.6 per cent from the
final quarter of 2008.
Japanese GDP: Revised figures showed that GDP in the world’s
second-largest economy fell by a revised 3.8 per cent in the first quarter,
against an initial estimate of a 4 per cent decline.
China investment: The Chinese authorities said that annual growth in
fixed investment in China accelerated to 32.9 per cent in the period from
January to May, from 30.5 per cent over the first four months of the year.
Chinese exports: Trade data showed that Chinese exports fell in May on
a year-on-year basis for the seventh month in a row, dropping by an annual
26.4 per cent.
World prospects: The International Monetary Fund is set to revise up
its global growth forecast for next year to 2.4 per cent, from its current
projection of 1.9 per cent, according to sources.
Banking
& finance
Highbridge Capital Mnaagement: JPMorgan Chase, the US investment bnk,
has completed its takeover of the $21 billion (£12.7 billion) hedge fund
that it had first bought into in 2004.
US bailout fund: A US congressional panel will oversee the valuation of
warrants issued to the Government by bailed-out banks to ensure that
taxpayers receive sufficient compensation. Ten banks were this week given
permission to repay their taxpayer loans, worth $68 billion.
AXA: The French insurance group is to cut 280 UK jobs as part of a
cost-cutting drive. About 120 jobs will go at its site in Ipswich, which
employs 1,600 staff in sales, claims and policy administration.
West Bromwich Building Society: The lender was fighting for its
survival in an attempt to secure a debt-for-equity swap with its key
bondholders.
Construction
& property
Shaftesbury: Laxey Partners, the activist property investor, is
offloading its 19 per cent stake in the London retail property company, just
days after backing the group’s £150 million rights issue. Shaftesbury owns
property in the Soho and West End shopping districts. Laxey’s stake in the
company has been valued at about £130 million.
Building Schools for the Future: The Government’s proposals to rebuild
or refurbish every secondary school in England had been “over-optimistic”
and “poorly planned”, according to the Commons Public Accounts Committee.
Consumer
goods
Del Monte Foods: The American food production company said that
fourth-quarter net income had risen to $71.5 million (£43.3 million), from
$50.4 million a year ago, far higher than expected and helped by price
increases, volume growth and cost cuts.
Engineering
Mercedes-Benz: The German carmaker said it had sold 86 per cent more
cars in China during May, with record sales for the third consecutive month.
Boeing: The US aircraft maker has cut its forecasts for demand for new
planes because of the industry’s downturn and said that it was focused on
delivering existing orders rather than chasing new ones.
General Electric: The American conglomerate said that it has agreed
more than $500 million (£303 million) worth of contracts to supply
electricity generating equipment for what will become the biggest power
plant in the island nation of Bahrain.
Saab: Koenigsegg, the Swedish luxury carmaker, and Norwegian investors
have struck a preliminary deal to buy Saab, the Swedish unit of General
Motors, the US carmaker, according to a source.
Vauxhall: About 5,000 jobs at the carmaker were again thrown into doubt
when Lord Mandelson, the Business Secretary, and Karl- Theodor zu
Guttenberg, the German Economy Minister, opened the auction for the group to
new bidders.
Health
Frankel Chemicals: Investors have lost a total of about 10 billion rand
(£726 million) in what could be South Africa’s biggest corporate fraud.
Barry Tannenbaum, a South African businessman living in Australia, lured
investors to his Frankel Chemicals group with the promise of 200 per cent
annual returns linked to pharmaceutical imports, and forged drug orders to
reassure funders when money started to dry up.
Industrials
BASF: The German chemicals group said that Amflora, its genetically
modified potato which was designed to yield industrial starch, has been
described as safe for humans in a recommendation by the European Food Safety
Authority.
Rexam: The London-listed packaging group said that it has refinanced
its £775 million revolving credit facility which will now mature in the
second half of 2012.
Leisure
Pub companies: The Association of Licensed Multiple Retailers has
called on the Government to resist calls by the Business and Enterprise
Committee to refer the beer tie to the Competition Commission and instead
give the industry six months to address the issues highlighted. It has
invited pub operators to a meeting next week to dicuss the business model.
CryptoLogic: The internet gaming software group has signed a deal to
supply Sportingbet with at least ten of its most popular online slot games.
The Hotel Corporation: The quoted owner of a 49.9 per stake in Puma
Hotels is to raise £12 million via a rights issue to purchase new
convertible preference shares that are to be issued by Puma.
WorldSpreads: The financial spread betting company said that it has
launched an operation in Edinburgh in an attempt to attract clients in Scotland
and the North of England.
Club Med: The underperforming French holiday resort and leisure group
said that it had taken legal action against Bernard Tapie, the entrepreneur,
over what it called his damaging remarks about the company as it reported
widening losses and a near 20 per cent drop in summer bookings. Mr Tapie had
said last month that he was interested in buying a stake in Club Med,
despite the group raising capital.
Media
Independent News & Media: Alexander Lebedev, the Russian oligarch
who owns the Evening Standard, is edging closer to a deal to buy The
Independent and The Independent on Sunday from the newspaper
group.
Setanta: The satellite sports broadcaster is in talks with an
unidentified rescuer, which would stave off its collapse.
Natural
resources
Oz Minerals: The Australian mining group said its shareholders had
voted in favour of its A$1.7 billion (£840 million) sale of most of its
assets to China Minmetals . The news came only a few days after the collapse
of a Chinese plan to invest in Rio Tinto, the Anglo- Australian mining
company.
Total: The French energy group, which owns the Lindsey oil refinery in
Lincolnshire, said that its workers had walked out after being told that a
number of staff would lose their jobs.
Oil demand: The International Energy Agency said it expected world oil
demand to fall by 2.47 million barrels per day to 83.3 million barrels,
slightly less than the 2.56 million barrel drop it had forecast previously.
Retailing
Homebase: Fine weather and price cutting helped the struggling DIY
chain to report like-for-like sales growth for the first time in two years,
with same-store sales rising by 3.8 per cent in the three months to May 30.
Park: The Christmas savings group said it was “holding up well” despite
orders for this year’s season being 4 per cent down on a year ago — although
the average value of those orders is about 3 per cent higher. It also
reported full-year pre-tax profits of £6.2 million, from £5 million last
time.
Support
services
AEA Technology: The Oxford consultancy group said that President
Obama’s huge spending programme to tackle the recession had boosted the
prospects for PPC, its US business, which had an order pipeline of $2
billion (£1.2 billion) and was in a “strong position” to benefit.
Premier Farnell: The London-listed electronic components distributor
said that its first-quarter profits had fallen by 63 per cent to £9 million
as revenues dropped by 15 per cent to £204.3 million. However, its sales
performance had improved during April and May, compared with March, boosting
its share price by more than 6 per cent.
De La Rue: The London-listed bank note and security products group has
been selected as preferred bidder to design and produce the biometric
passport for the Identity and Passport Service, part of the Home Office. The
ten-year contract is expected to be worth £400 million.
Deloitte: The professional services group said that fee income at the
UK’s top 100 law firms fell by 4.3 per cent in the three months to April 30,
compared with a year ago, and the market is expected to continue to decline.
Deloitte Touche Tohmatsu: The American accounting group said that it
has backed the Obama Administration’s plan to set up a regulator to monitor
systemic risk. It added that it is sure the United States will eventually
adopt international accounting standards, even as the process appears to
have slowed down.
Technology
Microsoft: The American software group said that it is holding its
quarterly dividend steady and is backing a proposal allowing large
shareholders to call special shareholder meetings.
Telecoms
MCel: The Mozambique Government said that it will partially privatise
the state mobile phone provider, adding that it plans initially to sell off
at least 5 per cent of the shares in mCel, the largest of the country’s two
mobile phone groups.
Transport
Delta Air Lines: The US carrier said that it would reduce flight
capacity by 10 per cent and review its staffing requirements in the face of
the global recession and rising fuel prices.
Cathay Pacific: The number of passengers traveling with Hong Kong’s
flagship airline and its subsidiary Dragonair dropped by 7.5 per cent in May
from a year ago, amid low demand for travel and the effect of swine flu.
British Airways: Balpa, the pilots’ union, has agreed to changes in pay
and conditions for its members at the carrier, which is still in talks with
other workers, including cabin crew and ground staff.
Utilities
Welsh Water: The utility reported a full-year loss of £11 million after
it increased the “dividend” that it pays to customers to £21. The £27
million payout, which is deducted from bills for water and sewerage
services, means that the company has returned £150 million to customers
since 2001.
