business headlines
Japan cuts rates, market falls
The Bank of Japan cut interest rates today to 0.3 per cent, from 0.5 per cent, giving in to global downward pressure. The board was split down the middle on the decision, leaving Governor Shirakawa to cast the deciding vote. The benchmark Nikkei 225 index slumped five per cent in reaction, as markets in Asia snapped their winning streak. The MSCI Asia Pacific Index fell over two per cent, with the Hang Seng down nearly five per cent and Indonesia off over seven per cent. In the UK the FTSE 100 was down over one per cent shortly after opening.
Japan's return from financial oblivion 
US data spark recession fears
New consumer spending figures in the US on Thursday led to fears that the economy is heading for recession. Sharp falls in consumer spending helped the economy shrink at an annualised rate of 0.3 per cent in the third quarter, the weakest level for seven years. In fact the data was not as bad as economists had expected - a 0.5 per cent drop had been predicted - but it is in the fourth quarter when the current state of the economy is expected to be reflected most keenly. Consumption fell for the first time since 1991, dropping at an annualised rate of 3.1 per cent.
America enters a new Depression
Chancellor presses banks to lend
Chancellor Alistair Darling is "pressing banks" to change their terms on small business lending, reported the Financial Times. He admitted the government is "powerless" to dictate how much or to whom the banks lend, but in secret talks with lenders the government is attempting to make changes to the voluntary lending code. The modifications would include increasing the notice small companies get before loans and overdrafts are axed or made more expensive. An announcement is expected next week.
The financial crisis - a crash course
WPP chief downbeat on economy
Advertising company WPP reported third quarter figures yesterday showing that like-for-like sales growth grew three per cent and total sales were up 16.2 per cent, said the Times. But it was founder and chief executive Martin Sorrell's comments on the coming year that really caught the market's attention. He said 2009 was going to be "very tough" and the rest of 2008 "very difficult". It was also apparent that there is a shift in the balance of economic power from West to East, as Asian, Middle Eastern and Latin American revenues "boom".
A trillion reasons to be gloomy about the economy
Unilever bullish on targets
Ben & Jerry's to Marmite-maker Unilever has said it expects to post "improved" revenues this year, reported the Independent. The consumer goods giant announced "buoyant" third quarter figures, showing that pre-tax profits rose 83 per cent in the most recent quarter, while underlying sales rose 8.3 per cent. Chief executive Patrick Cescau said that underlying sales were now expected to be above the target level of three to five per cent and profit margins were also expected to see improvements.
The banking collapse is all your fault
Final-salary pension timebomb
UK companies could be "hobbled" by demands from pension trustees of £45bn a year, said the Times. In new figures from pension consultancy Aon, it warned that final-salary pension schemes face a £225bn shortfall due to "plummeting" asset prices, which are eroding pension deficits and which need to be funded. The net result is likely to be that £45bn is needed every year for the next five years to plug the gap. Unfortunately, as the UK enters recession, the necessity for extra cash is "the last thing companies need", Aon warned.
What happens when a Western economy dies
...in brief..................
Barclays looks East for cash and ExxonMobil joins earnings party
Barclays Bank is currently negotiating a cash call from Middle Eastern governments, including Qatar, said the Financial Times. Talks were taking place last night on the plan, which is in line with the bank's desire to go it alone without turning to the government for funds…………
Newdesk: Barclays seeks Middle East cash
Volkswagen has bucked the industry trend and reiterated its current earnings estimates for the year. The company reported a 27 per cent rise in third quarter profits, boosted by the consolidation of truckmaker Scania, but did warn that 2009 would witness a rapid deterioration…………
How Porsche took the hedge funds to the cleaners
The Lehman Brothers fire sale continues today with the sell-off of Le Meridien hotel on Piccadilly, one of London's best-known locations. It is expected to come with a price tag of £90m and is owned by Starman Hotels, a joint venture between Lehman and Starwood Capital…………
Lehman exposes Wall Street’s moral bankruptcy
After Royal Dutch Shell reported a 71 per cent rise in profits yesterday, chancellor Alistair Darling called on oil companies to pass on lower costs to consumers by cutting prices at the pumps as soon as possible. He said consumers "are entitled" to see falling prices…………
Nissan Motor, Japan's third-largest carmaker, "slashed" its profit forecast 53 per cent, reported Bloomberg.com. The weakness in the US economy contributed to the downgrade and Japan’s strengthening currency also reduced the value of overseas earnings…………
ExxonMobil joined the oil party yesterday, announcing the highest quarterly profit ever from a listed company, said the Financial Times. Underlying net income for the third quarter was up 42 per cent, but the company said oil and gas production actually fell…………
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