View
video and Need to Know interactive heatmap
Economics
Economic recovery: Britain has moved ahead of other leading economies
in the race to restore the stability of its banking system, according to
Adam Posen, the newest member of the Bank of England’s Monetary Policy
Committee. He expressed optimism that the recession is set to end this year,
but warned that the recovery would be slow and uncertain.
Inflation: Inflation on the consumer prices index fell to 1.8 per cent
in June, from 2.2 per cent in May, the first time in almost two years that
it has dropped below the Bank of England’s 2 per cent target. The wider
measure of inflation on the retail prices index dropped to minus 1.6 per
cent, from minus 1.1 per cent in May, while core inflation remained
unchanged at 1.6 per cent.
House prices: Official figures showed that house prices fell slightly
during May but the annual pace of house price declines eased to 12.5 per
cent, from 13 per cent in April. The average house price stood at £188,991
in May, down from £189,215 in April.
Eurozone production: Official figures showed that eurozone industrial
output rose during May for the first time since August 2008. Industrial
production in the 16-country euro area increased by 0.5 per cent, narrowing
the annual decline to 17 per cent, from the 20.5 per cent reported in May.
German confidence: The ZEW economic think-tank said that German analyst
and investor sentiment dropped unexpectedly in July for the first time in
nine months. Its monthly index of economic sentiment fell to 39.5, from 44.8
in June.
US prices: Official figures showed that American wholesale prices rose
during June at the fastest pace in 19 months. Producer prices rose by 1.8
per cent, after a 0.2 per cent increase in May. Analysts had expected a gain
of 0.9 per cent.
US retail sales: Figures showed that American high street sales had
risen by a stronger than expected 0.6 per cent during June. Sales excluding
petrol and vehicle parts fell, for the fourth consecutive month, by 0.2 per
cent, compared with a 0.1 per cent decline during May.
Banking
& finance
Liontrust Asset Management: The group, which earlier this year lost two
of its star fund managers, said that its clients had continued to withdraw
money but added that it plans new fixed income funds which should help to
stem the tide. Total net outflows were £902 million in the three months to
June 30 and would have brought assets under management below the £1 billion
mark but for positive market movements. Assets under management stood at
£1.12 billion at June 30, down from £1.2 billion at June 9.
Pension Protection Fund: The deficit in final-salary pension schemes
widened to £215.8 billion in June, from £196.8 billion in May, according to
the Pension Protection Fund, the government-created pensions lifeboat. At
the same point last year, the shortfall in final salary schemes stood at
£60.3 billion, hit by falling markets and rising liabilities.
Credit derivatives: The US Government has begun an investigation into
the credit derivatives market by asking about 15 dealers for detailed
information on trading and pricing over several years. Markit, which
supplies information to financial markets around the world, is also being
investigated by US government officials trying to find out if its owners
have unfair access to statistics related to the credit default swaps market.
The inquiry is attempting to determine whether the banks that own Markit
have disproportionate access to the information that it provides.
RSA: The UK’s largest commercial insurer has taken out a £1.9 billion
insurance policy with Goldman Sachs against the risks of paying pensions to
more than half of its 15,000 former employees if they live longer than
expected. The deal, struck with Goldman’s specialist insurer Rothesay Life,
is the largest example of a “pensions buy-in” seen in Britain. It will
insure RSA’s pension payments to about 55 per cent of its former workforce
against the risk that retiring employees will live far longer than expected
once they stop working. The deal will also cover the risk of market
fluctuations and changes in interest rates.
Goldman Sachs: Bankers at Goldman Sachs’s London offices will share in
a $2.1 billion (£1.3 billion) pay pot for the first half of this year
despite the collapse of the world’s financial markets. The investment bank,
which is listed on the New York Stock Exchange, shocked America yesterday by
reporting record profits of $3.4 billion for the past three months, much of
which will be given to its highest paid bankers as bonuses. News of the
record profits has caused a storm in the United States where Goldman’s
rivals are still struggling to shore up their battered balance sheets.
Construction
&
property
Morgan Sindall: The London- listed construction and regeneration group
said that Morgan Ashurst, its construction division, has won a £71 million
contract with Airbus, the European aircraft manufacturer, to build a wing
assembly factory in Broughton, Flintshire. The new base will be used to
assemble carbon fibre wings and is set for completion in October 2010.
Investment Property Databank: The value of commercial property has
fallen for 24 consecutive months, according to the Investment Property
Databank (IPD). Values fell by 0.9 per cent in June, taking total peak to
trough falls to 44.1 per cent. The IPD said that vacancy rates had risen,
leading to a fall in landlords’ rental income.
Consumer
goods
Britvic: The London-listed maker of Robinsons fruit squash said that
its full-year performance would beat expectations but warned of continued
troubles in its Irish business. The company reported third-quarter group
year-on-year sales growth of 5.9 per cent, from 6.3 per cent in the first
half of the year, with the drag coming from its recession-hit division in
Ireland. But the Essex company said that it had seen “particularly strong
trading” during the period, helped by its British and international arms.
GHD: The maker of hair straighteners, based in Leeds, said that it has
appointed Paul Stoneham as its new chief executive after Martin Petty, the
company’s co-founder, left after a disagreement with Montagu Private Equity,
its new backer. Mr Petty is involved in a legal battle with Montagu. Mr
Stoneham previously worked as president of global business development at
Colgate-Palmolive, the US consumer goods group.
Engineering
Toyota: Thousands of new jobs could be created in Britain after the
Japanese carmaker confirmed that its Burnaston plant in Derbyshire is a
leading contender to build the new petrol-electric hybrid version of its
Auris hatchback. The new model is in the design stages and manufacturing is
due to begin in 2012. Hybrid cars are propelled by batteries over short
distances and backed up by petrol or diesel engines over longer journeys.
ACEA: The European car manufacturer association said that car output in
Europe is likely to fall by a quarter this year as government handouts to
car buyers fail to halt a slump. Vehicle producers are reacting by cutting
back. Van and truck production had more than halved in the first quarter,
ACEA said, while car output had fallen by 31 per cent to 3.1 million. Car
sales had fallen by 17.2 per cent during the same period.
Q-Cells: The world’s biggest maker of solar cells has withdrawn its
full-year sales outlook and said that it saw no sign of an upturn, in a
surprise move that sent shares across the sector lower. The German group has
been hit by a steep decline in prices for solar cells, mainly caused by an
oversupply that built up during the boom years of 2007 and 2008. The
funding-hungry sector has also been hurt by the global credit squeeze,
making refinancing difficult.
Health
Johnson & Johnson: The US maker of healthcare products said that
its second-quarter profits had fallen by 3.5 per cent to $3.21 billion
(£1.97 billion), from $3.33 billion a year ago, because of lower sales,
particularly for its prescription drugs, and the weak dollar. Its revenues
totalled $15.24 billion, down by more than 7 per cent on last time.
Industrials
China Iron and Steel Association: Executives from five Chinese steel
companies are being investigated as part of a widening inquiry into the
alleged theft of state secrets that has led to the arrest of a senior
executive at Rio Tinto, the Anglo-Australian mining group. The broadening
investigation targets at least seven shippers, traders and managers at some
of China’s largest steel mills, who are all influential members of the China
Iron and Steel Association, which represents the industry in negotiations
with global iron ore miners.
Leisure
Young’s: The pubs group said that it had made a solid start to
the current financial year and was trading in line with expectations,
despite the difficult economic conditions. The company said that total sales
at its 122 managed pubs were up 3.3 per cent in the 15 weeks to July 11,
with like-for-like sales 0.1 per cent ahead of the same period a year ago.
Media
BBC: Profits at BBC Worldwide, the commercial arm of the corporation,
almost halved after writeoffs relating to the collapse of Woolworths, the
high street retailer, and the decision by competition authorities to block a
video-on-demand venture. The BBC also announced that it was suspending
bonuses indefinitely for its ten senior executives and implementing a review
of executive pay. BBC Worldwide, which markets BBC programmes
internationally and owns Lonely Planet, the travel publisher, said that
full-year net profits had dropped to £40.8 million, from £77.6 million in
the previous year.
Natural
resources
BG Group: Dragon LNG, Britain’s newest liquefied natural gas terminal,
has taken delivery of its first cargo of super-cooled gas, according to BG,
which holds a 50 per cent stake in the facility at Milford Haven in South
Wales. BG’s Methane Lydon Volney tanker, which can carry
145,127 cubic metres of LNG, delivered the first commissioning cargo.
Retailing
Blockbuster: The US video rental group which has been struggling to
keep up with Netflix, its rival, has announced a deal with Samsung, the
South Korean electronics group, that will allow users to rent movies
streamed over the web. Blockbuster said that the on- demand service will be
integrated into Samsung high-definition televisions and Blu-Ray players
starting in the autumn.
Primark: Arthur Ryan, founder of the cut-price fashion chain, is to
step down as managing director in September. Paul Marchant, chief operating
officer, will become chief executive.
Support
services
Jarvis: The rail support services and engineering company said that
delays to Network Rail projects had forced the group to downsize and were to
blame for a full-year loss of £6.3 million loss. The company, based in York,
said that it had incurred costs of £8.1 million after Network Rail had
decided to delay spending in the first year of its £4 billion track renewal
programme, forcing a restructuring of Jarvis’s rail and plant businesses and
leading to 450 job cuts in March.
Technology
Sun Microsystems: The US maker of computer servers, which is in the
process of being acquired by Oracle, the US software group, said that it is
expecting to report fourth-quarter revenues in the range of $2.58 billion
(£1.58 billion) to $2.68 billion — lower than analysts’ forecasts of $3.058
billion. Sun had reported revenues of $3.78 billion a year ago.
Telecoms
K Telecom: The South Korean mobile operator said that it was
considering bidding for a 51 per cent stake in Mobile Telecom Service,
Kazakhtelecom’s wireless unit. Kazakhtelecom, the state-controlled
fixed-line provider, had said in June that it was planning to sell the stake
as part of a restructuring. It did not say how much it planned to raise from
the sale.
Transport
Royal Mail: Some 12,000 staff are expected to take part in walk-outs
on Friday organised by the Communication Workers Union in protest over job
cuts and workloads. Royal Mail claims that 90 per cent of its offices will
not be affected. Both sides are accusing each other of abandoning the pay
and modernisation programme which was agreed in 2007.
British Airways: Willie Walsh, chief executive, said he had spoken to
institutions about issuing a convertible bond, which would enable the
airline to strengthen its balance sheet.
Utilities
Carbon emissions: Britain’s plan to cut its carbon dioxide emissions
by more than a third by 2022 could be achieved by buying “permits to
pollute” from poor countries rather than reductions in domestic emissions,
according to a draft copy of the Government’s energy strategy.
