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Economics
Inflation: Annual input price inflation for British manufacturers rose
at an annual rate of 0.1 per cent in October, the first rise since February.
Factory gate inflation also picked up, rising 1.7 per cent on the year in
October, up from 0.4 per cent in September and the highest reading since
March.
Insolvencies: More than 4,700 companies in England and Wales went into
liquidation in the third quarter of this year, official figures showed, up
14.6 per cent on the same period last year. Personal insolvencies rose 28.2
per cent to 35,242.
Public debt: UK public debt is set to rise to more than 160 per cent of
GDP before the general election as the huge cost of bailing out Royal Bank
of Scotland and Lloyds Banking Group is added to the Treasury’s books. The
Office for National Statistics said that the two banks’ liabilities would
probably add £1,500 billion to the UK’s debt.
Germany: German manufacturing orders rose in September on firmer
foreign demand, official data showed. Orders rose 0.9 per cent after
August’s 2.1 per cent rise.
Global economy: Signs of improvement have emerged in most major
economies, the Organisation for Economic Co-operation and Development said.
Its leading indicator for the UK improved for an eighth successive month in
September, up 1.7 points at 103.9, boosting hope that Britain may return to
growth this quarter. The rise came after increases of 1.7 in August and 1.6
in July. The OECD classifies a rising index above 100 as indicating that an
economy is in an expansionary phase.
US unemployment: The US unemployment rate jumped to a 26-year high of
10.2 per cent last month, official data showed. However, the number of jobs
shed fell to its lowest in more than a year, with 190,000 jobs lost.
US inventories: US wholesalers cut inventories for a record 13th
consecutive month in September, but sales rose for a sixth month in
succession. Wholesale businesses reduced inventories by 0.9 per cent and
sales rose by 0.7 per cent.
Banking
&
finance
Royal Bank of Scotland: The company said that bad debts had hit a
“plateau” as it reported that losses in the July to September quarter had
more than halved to £1.52 billion, from £3.53 billion in April to June, as
bad debts hit £3.27 billion — down from the previous quarter’s £4.66
billion.
Bankers’ bonuses: Stephen Green, chairman of HSBC, said that the
UK must not implement a harsher regime on bank regulation and bonuses than
other countries. Speaking ahead of the G20 meeting at St Andrews, Mr Green,
also chairman of the British Bankers’ Association, said: “It is imperative
that the UK moves broadly in line with other nations in implementing
reforms.”
AIG: The insurer bailed out by the US Government, reported a second
successive quarterly profit, aided by recovery in the value of its
investments, but its underlying business stayed weak. Net income was $455
million (£273 million), or 68c a share, against a loss of $24.47 billion, or
$181.02 a share, in the year-earlier quarter. Second-quarter profits were
$1.8 billion.
Blackstone Group: The private equity firm reported a forecast-beating
quarterly profit and said it is gearing up for more deals and IPOs as the
lending and equity markets recover. Blackstone’s chief operating officer,
Tony Jamesm said that it had $27 billion of “dry powder” — capital available
for investment.
Construction
&
property
Segro: The industrial warehouse group has sold the Great Western
Industrial Park, in Southall, London, to the Universities Superannuation
Scheme, for £110.4 million, at a yield of 6.9 per cent.
Galliford Try: The construction group reported improved sales and
income from housebuilding, but was cautious about the outlook for other
construction. Galliford recently raised £119 million through a rights issue
to buy land.
Construction: The Royal Institution of Chartered Surveyors said that
surveyors are becoming more confident over the outlook for the construction
sector, with a balance of 9 per cent expecting output to rise, rather than
fall. However, most expect employment to fall further, with a 3 per cent
balance.
Brookfield Constructions UK: A £670 million contract to provide the new
South Glasgow hospital — the biggest design-and-build project in Scotland —
has been won by Brookfield.
Prime homes: Knight Frank said prices of prime homes in Central London
rose 2.1 per cent in October, with 13 per cent rises in some parts since
March. UK buyers, particularly City employees, were returning, it said. UK
buyers accounted for 67 per cent of purchases of homes worth more than £5
million.
Consumer
goods
Cadbury: The takeover target is expected to rebuff Kraft almost
immediately if the US food group makes a low-ball hostile bid when a
deadline comes on Monday.
Tate & Lyle: The sugar and ingredients group reported a 7 per cent
rise in half-year revenues to £1.82 billion, while adjusted operating
profits fell by 1 per cent to £148 million. However, industrial starch, US
ethanol and US animal feed markets remain under pressure. Pre-tax profits
fell 59 per cent to £50 million, including one- off costs of £55 million for
mothballing of a US sucralose plant.
L’Oréal: The world’s biggest cosmetics company said that
emerging economies, including Brazil, China and India, are becoming its main
markets. Sales returned to growth in the third quarter. Revenue rose by 0.8
per cent, against the same period in 2008 on a comparable basis, to €4.23
billion (£3.7 billion).
Engineering
Magna International: The Canadian car parts maker, which led a failed
bid for General Motors’ Vauxhall business, swung to profit in the third
quarter, despite a fall in revenue. Magna reported a $51 million profit in
the quarter, up from a loss of $215 million a year earlier, when it bore a
$234 million restructuring charge. Quarterly sales fell to $4.6 billion,
from $5.5 billion, amid “significant declines” in vehicle production in
North America and Europe.
General Motors Europe: Nick Reilly, former head of Vauxhall’s Ellesmere
Port plant, will temporarily run General Motors Europe after Carl-Peter
Forster resigned after GM’s decision to retain ownership of the operations.
Chinese car sales: Beijing began an inquiry into claims that US
carmakers dumped government-subsidised cars on China’s market in the latest
flare-up of trade tensions between the two countries. China’s move came
after Washington put hefty tariffs on steel pipes imported from China.
Health
Smith & Nephew: The company reported a 1 per cent rise in
first-quarter revenue to $915 million, beating forecasts as patients and
governments began to resume spending on surgical procedures after cutting
back in the recession.
Industrials
General Steel Holdings: Third-quarter earnings of the Chinese steel
products group beat estimates, helped by higher shipment volumes and gross
margins. Net income was $10.4 million, against $20.5 million a year ago.
Leisure
Camelot: The owners of Camelot, the National Lottery operator, have
given potential bidders for it two weeks to submit opening offers. The
auction gives Sir Richard Branson another chance to operate the National
Lottery.
William Hill: The bookmaker unveiled a £300 million corporate bond to
cut debt. The issue was four times subscribed. Daniel Stewart reiterated
“buy” advice, saying the stock, now at 179p, should be above 200p. The
broker raised its price target on Sportingbet to 92p, from 80p, saying that
it is likely to take part in sector consolidation.
Media
ITV: Anthony Fry, the media banker and deputy chairman of Dairy Crest,
emerged as a potential candidate for the vacant chairmanship of ITV. He
joins a race headed by Bob Wigley, the former Merrill Lynch banker.
London Lite: The freesheet will publish its final issue next Friday,
putting 36 editorial jobs at risk. It was launched by Daily Mail and General
Trust’s Associated Newspapers in 2003.
Natural
resources
BHP Billiton: The group said that its Olympic Dam uranium and copper
mine in Australia was operating at 25 per cent capacity because of repair
work after an accident. It is expected to return to full production in
January or February.
Oil: Oil prices rose towards $80 a barrel yesterday, catching up with a
surge in global stock markets and assisted by a slightly weaker dollar,
which made crude more attractive to international investors.
Gold: The price touched a record high of $1,101.42 an ounce after a
decision by Sri Lanka to buy gold instead of the US dollar.
Retailing
Threshers: The high street’s biggest fire sale since the collapse of
Woolworths began last night as the administrator to the owners of Threshers
said that it was liquidating stock at hundreds of off-licences.
John Lewis: The department store chain said sales were 7.8 per cent up
on last year in the week to October 31. Sales by its sister chain Waitrose,
the grocer, rose by 10 per cent.
Shopping centres: The opening of new shopping centres will hit a
15-year low in 2010, according to Cushman & Wakefield, the propertly
company. It comes after record new selling space in 2008.
Support
services
Law firms: Allen & Overy’s half-year revenue fell 7 per cent and
Clifford Chance said it is shedding lawyers in fresh signs that law firms
are continuing to suffer from the economic downturn.
Telecoms
Skype: EBay said that private investors looking to buy Skype had agreed
to settle litigation with Skype’s founders, who will get a 14 per cent stake
in the internet phone service. EBay, which is selling Skype in order to
focus on its online auction business, said the group led by Silver Lake
reached a settlement with Joltid and Joost, the companies of Skype’s
founders Niklas Zennstrom and Janus Friis. Silver Lake and other investors
will hold 56 per cent of Skype and eBay will retain 30 per cent.
Transport
British Airways: The airline plans to shed more than one in ten of its
worker this year as it struggles with mounting losses.
Utilities
Energy bills: British families could be forced to pay up to £227 extra
on annual energy bills to help to fund a new generation of nuclear power
stations, under proposals by EDF, the French utility.
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