Global markets turn stronger
Many markets in Asia rose for the first time in three days, after small drops in New York last night. The closely-watched Standard & Poor’s 500 Index fell 0.05 per cent as the market digested consumer spending figures, while in Australia the S&P/ASX 200 Index added 0.3 per cent, and the MSCI Asia Pacific Index gained 0.7 per cent. Australia’s government said it would spend another A$42bn to support the economy, while the central bank cut rates by one percentage point. In London the FTSE 100 Index opened 0.29 per cent higher.
Business counts cost of snow
About 20 per cent of the UK’s workers are thought to have taken a “snow day” yesterday, costing the country an estimated £1bn, reported the Financial Times. Many businesses were forced to operate on a “limited basis” as London and the south-east’s heaviest snowfalls for 18 years hit transport links. Half of London’s businesses were operating at 50 per cent capacity according to a survey by the London Chamber of Commerce and Industry. There were even warnings that the cold snap could help “prolong the recession”.
BP in first quarterly loss for 7 years
BP, the second-biggest oil company in Europe, has reported its first quarterly loss in seven years, reported the Daily Telegraph. As the global recession depressed oil prices the company lost $3.3bn in the latest quarter, compared with net profits of $4.4bn a year earlier. BP announced its full-year results at the same time, recording a disappointing twelve month total of $25.6bn, albeit a 39 per cent increase over the previous year. The company’s profits “mirror the giddy ascent” of oil prices which soared to $147 and then collapsed.
Wave of strikes to continue
The strikes that have hit the UK during the last week are “expected to escalate”, with thousands more workers planning walkouts, reported the Guardian. The action has come as a result of the exclusion of British workers from construction contracts at Total’s Lindsey refinery on the Humber estuary and now employees around the country have pledged to join the strikers. 900 contractors at Sellafield nuclear plant are due to meet this morning to decide on a walk-out and union sources say feelings elsewhere are running “extremely high”.
Ryanair expands into downturn
Ryanair chief executive Michael O’Leary is “keeping the throttle wide open” in the face of the deepening recession, reported the Financial Times. He has a history of “making a big grab” for market share in a downturn and is doing so again, while rival EasyJet is becoming more cautious about expanding its fleet. Ryanair announced on Monday that it was in initial talks with Boeing and Airbus over an order for 300-400 aircraft. The moves come even as the carrier reported a €128.7m pre-tax loss for the third quarter.
FSA warned over Singer bid
The Financial Services Authority was warned in 2005 “not to give the go-ahead” for the takeover of Singer & Friedlander by Icelandic bank Kaupthing, reported the Times. The chief executive of the UK merchant bank at the time is to tell the Treasury Select Committee that he and his colleagues told the FSA that they believed their Icelandic suitor was not “fit and proper” to control a UK bank. The revelations are sure to raise question-marks over the “robustness” of bank regulation in the UK after Kaupthing failed last year.
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John Lewis scales back openings and Virgin plans railway bid
John Lewis is being “forced to scale back” its new store opening ambitions as property developers mothball plans to build shopping centres, said the Financial Times. The chain had eight sites in the pipeline in Oxford and Leeds and other cities, which have now had to be shelved…………
Apple is “threatening to use its hoard of patents” to suppress the competition to its iPhone, reported Bloomberg.com. Apple’s operating officer has pledged to go after companies that copy the much-vaunted phone’s features, for instance Palm’s new Pre phone…………
As Barbie approaches her 50th birthday next month there is “no disguising the wrinkles” that have appeared in her sales figures, reported the Independent. Owner Mattel’s shares slumped more than 15 per cent after it announced a 46 per cent drop in the final quarter…………
US department store Macy’s is planning to cut 7,000 staff and is reducing spending by up to $400m a year as it struggles with the recession, said the Daily Telegraph. The retailer is also planning to slash its dividend by 62 per cent and cut spending as part of a wide-ranging restructuring…………
The downgrade of Barclays by credit rating company Moody’s yesterday saw concerns about its future re-surface, reported the Times. After its financial strength rating was “sharply downgraded”, Barclays shares tumbled 10.6 per cent, or 11.2p, to 94.9p…………
Sir Richard Branson, the founder of Virgin Trains, is planning to “mount a bid” for the east coast franchise, reported the Guardian. Branson said he was “ready to make a new offer” should it become available, amid fears that National Express is “struggling” with its contract…………
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