...the main business headlines..........
Asian stocks continue to advance
Markets rose in Asia for the fourth day in a row on optimism that government efforts to resuscitate the global economy will succeed. With the US closed yesterday for Thanksgiving, Asian stocks continued their positive momentum, and the MSCI Asia pacific Index gained 1.5 per cent. Most markets in the region were in positive territory, apart from India, which saw its Sensitive Index drop 0.2 per cent as it opened for the first time since it suffered its terrorist attacks. In London the FTSE 100 opened marginally higher.
In Pictures: terror in Mumbai 
Eurozone set for half point cut
Eurozone interest rates are "almost certain" to be slashed again next week by at least half a percentage point, after more evidence of the severity of the region's downturn emerged, said the Financial Times. Economic confidence in the region "crashed" this month to its lowest level since August 1993, the European Commission reported, and with inflation falling "rapidly" there is room for a cut in rates of at least the same half a point as was carried out in October and November. The European Central Bank will announce its decision next Thursday.
After the credit crunch, what next for the world?
House prices to fall another third
House prices in the UK are set to fall a further 36 per cent over the next two years, spelling the "worst post-war housing crash", said the Daily Telegraph. Financial markets are pricing a further 22 per cent fall in house prices over the next year, with another 14 per cent in 2010 before they see a recovery in 2011. The forecasts are based on trading on the HBOS House Price Index, and show the housing market falling "far more" than most commentators have estimated. They imply a 50 per cent fall peak-to-trough with recovery taking 10 years.
Bankrupt Britain: how it could happen
Bidders emerging for Woolworths
The ramifications of the Woolworths collapse were felt along the length of the high street on Thursday, reported the Financial Times. Other supermarkets "scrambled" to find other suppliers, and administrators dealt with a number of expressions of interest in the company from potential buyers. Customers of EUK, the group's wholesale arm, including Wm Morrison and Asda were looking for new suppliers of CDs and DVDs and administrator Deloitte was receiving enquiries for both that business and its stores from rivals "from Asda to Iceland".
A trillion reasons to be gloomy about the economy
Japan’s recession worsens
The recession in Japan worsened last month, as companies cut production levels and consumers reduced spending, reported Bloomberg.com. Factory output fell 3.1 per cent in October from September and household spending declined 3.8 per cent, for its eighth drop in a row, the Trade Ministry said today in Tokyo. The sharp reduction in exports is sending Japan's economy into a downward spiral, with analysts now forecasting a longer, deeper recession than previously thought. Yesterday Panasonic, the world’s biggest consumer-electronic maker, "slashed" its profit estimates by 90 per cent.
Japan's return from financial oblivion
Equitable Life sale in doubt
Hopes that Equitable Life could be sold now seem to have been "dashed" by the credit crunch reported the Guardian. The world's oldest mutual insurer said yesterday that its sale had been put "on hold" and that it would now focus on running the business until all policies have matured. Its £6bn closed with-profits fund has "attracted interest" but the company said that no offers provided "improved prospects" for policyholders in the current economic climate. Companies including Swiss Re and Prudential are thought to have expressed interest.
Book review: Niall Ferguson's history of commerce
...in brief..................
Lehman’s huge Asian property exposure and JD said to bid for JJB
Lehman Brothers built up "huge balance sheet exposure" to Asian property in loans and investments worth "billions of dollars" reported the Financial Times. Liquidator KPMG revealed Thailand exposure of $1bn, with another $1bn in Hong Kong and as much as $5bn in Japan…………
F&C is set to buy the £600m Dawnay Day property empire out of administration, in the first deal by its recently formed business F&C Reit Asset Management, said the Financial Times. The fund manager was selected as "preferred bidder" for the 211 properties on Wednesday…………
A total of 850 agency workers at Jaguar Land Rover's West Midlands operations were let go yesterday as industry bosses "pleaded" for government help, said the Independent. The cuts take the carmaker's job losses to 1,450 this year and featured in industry discussions with Lord Mandelson on Thursday…………
Shares in Moss Bros lost more than a third yesterday after Sir Philip Green said that he had "no plans" to launch a takeover bid for the suitmaker. Green, who bought a 28 per cent stake in the retailer earlier this month, said it was "not the right time" to make an offer…………
ITV has called in Boston Consulting Group for the second time this year, as the broadcaster plans "further efficiencies", said the Daily Telegraph. It said yesterday that "more cost savings" were required, as the advertising market continues to slide…………
JD Sports is "considering a bid" for JJB Sports, reported the Times. Both companies have "declined to comment" but it is thought that JD has been in touch with its rival to discuss its stakebuilding. It said this week that it had bought 10.2 per cent of JJB…………
Posts
