Tuesday, 6 January 2009

.........business headlines..........

Asian stocks rally for a ninth day

Markets in Asia rose for the ninth day in a row, bucking a drop in US stocks, which saw the benchmark S&P 500 Index fall 0.47 per cent yesterday. The MSCI Asia Pacific Index added 0.1 per cent, while in Tokyo the Nikkei 225 Stock Average climbed 0.5 per cent, one of around half the region’s indices that gained. Chipmaker shares were strong after memory prices rose, with Samsung Electronics, the biggest memory-maker, rising 4.3 per cent. In London, shares moved ahead in early trade, with the FTSE 100 Index adding to yesterday’s 0.39 per cent gain with a 0.28 per cent rise.

Libor fall may free up credit

"Signs of thawing" in the money markets emerged yesterday, raising hopes that banks may begin to lend more freely to businesses and consumers, reported the Guardian. The spread between Libor - the rate banks charge each other - and the bank base rate fell to its lowest since March last year after the collapse of Bear Stearns. Three-month Libor was set at 2.64 per cent and with banks' unwillingness to lend based on its previously high level, there is growing optimism that money may begin to flow again into the economy.
Zero interest rates won't save any car plants More

Consumer confidence at 4-year low

Consumer confidence in the UK fell to its lowest level since 2004 in December, as worsening unemployment and the deepening recession hit home, reported Bloomberg.com. The Nationwide Building Society survey fell four points from November to 47, the worst performance in the index’s four year existence and sharply down from a year before, when it was at 84. The data were taken from a survey of 1,000 people between November 17 and December 14. The Nationwide said it would be "some time" before confidence returned.

Cameron promises tax breaks

Conservative leader David Cameron promised on Monday to cut public spending by £5bn and use around £4.1bn of the savings to fund tax cuts for savers, reported the Financial Times. He said his party would “abolish” tax on savings income for basic-rate taxpayers and increase personal allowances for those aged 65 and above, as savers suffer from “plummeting” interest rates. While Cameron has “staked his election strategy” on the policy, Labour called the plan “economic madness”, who criticized the proposed cut in public spending.
Newsdesk: Tories plan to cut savings tax More
The Mole: PM tries to prove he's 'doing something' More

House prices slump 15.9% in 2008

House prices in the UK "plunged" by 15.9 per cent in 2008, the "biggest annual drop on record", reported the Times. According to Nationwide, the building society, the fall is the steepest since it began compiling records in 1991 and means the price of the average house in the UK has fallen by £20,000 since December 2007 to £153,048. There had been hopes that November's 2.5 per cent drop marked a stabilisation in the fall but December's 2.5 per cent decline has sparked fears that prices are "set to fall even further" in 2009.

FSA plans to revoke short-sale ban

The Financial Services Authority said it plans to repeal a ban on the short sale of financial stocks later this month, said the Independent. In June last year the FSA announced that companies would henceforth have to declare short positions in more than 30 financial stocks and on September 18 it banned the practice completely. The measures were brought in after the bankruptcy of US bank Lehman Brothers and although the bail-out has helped to support the sector the FSA wants to "maintain disclosure requirements for the practice".

...in brief..................

M&S to cut jobs and interest reported in Waterford Wedgwood

Marks & Spencer is to reveal around 1,000 job losses on Wednesday as it releases details of poor Christmas trading, reported the Financial Times. The high street retailer is looking at broadening a “series of cost-saving measures” to cope with the downturn. It employs 75,000 people overall…………
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Intel is to resurrect its “stalled bid” to make its chips the key component in home-entertainment devices, said Bloomberg.com. Consumer-electronics makers are to bring in set-top boxes with Intel chips during 2009, as the latter hopes consumers begin to use televisions to surf the web…………

Debenhams this morning announced a 3.3 per cent fall in like-for-like sales in the 12 weeks since October, reported the Daily Telegraph. The retailer “attempted to reassure investors” over its nearly £1bn debt pile, saying that it is “in line with its targets” and lower than last year…………

Clothing chain Next announced combined sales from its retail stores and mail-order Directory arm fell 1.9 per cent between August and the end of the year, said the Guardian. Directory sales “defied analysts’ expectations” by rising 1.1 per cent and shares in the company “leapt” eight per cent in early trade…………

Bernard Madoff, the centre of the biggest ever alleged fraud, sent around $1m of heirlooms to friends and family after his arrest, reported the Independent. Prosecutors say that it was done to prevent the authorities seizing the items, as they seek to revoke his $10m bail…………
Newsdesk: Madoff faces jail for bail breach More

There has been “strong interest” in Waterford Wedgwood, the china and crystal group, said the Daily Telegraph. Hopes are rising that the group can be saved after administrators Deloitte revealed they were in talks with a potential buyer, thought to be a US private equity group…………
Tony O’Reilly’s Independent problem More