...the main headlines..........
Markets fall as economies worsen
Markets around the world suffered renewed slumps as economies continued to feel the effects of the global slowdown. The Standard & Poor’s 500 Index fell 2.4 per cent on Friday to a 12-year low after figures showing the US economy shrank by the biggest margin for 27 years. In Asia today the MSCI Asia Pacific Index slumped 3.6 per cent and has fallen by a fifth in 2009 alone. Japan’s 225 Stock Average slid 4 per cent, with shares inMitsubishi UFJ Financial Group falling down sharply. In London the FTSE 100 Index opened 1.4 per cent lower.
Bankrupt Britain: how it could happen 
Lloyds battles on government stake
Lloyds Banking Group was battling last night to keep its government stake below 50 per cent, reported the Guardian. The bank’s senior management was “locked in talks” with the government last weekend to try to gain taxpayer funds for £250bn of assets as part of the Treasury-backed scheme. The topic under debate is the cost of any such insurance, with the government wanting £4bn of preference shares in return, which would push its holding above the crucial 50 per cent level. Lloyds executives are trying to keep the stake at its current 43 per cent.
The Mole: Harman's bid to stop Goodwin pension is wishful thinking
Housing market comes to life
More homes are being put up for sale and more are being bought, albeit at lower prices than hoped for, reported the Times. According to figures from housing data group Hometrack, the average sale price is now 88 per cent of the figure a property is initially marketed at – leading to forecasts of “further price subsidence”. The numbers show evidence of “signs of life” in the market, however, with agreed sales up 36 per cent in February after falls in previous months. A few agents are even reporting “multiple bids” for some homes.
The Obama White House: Is homeowner rescue plan too late?
BT emerges as Channel 4 suitor
BT has emerged as a “likely candidate” to merge with Channel 4 after the former’s chairman said he would “welcome” talks with the telecoms company, reported the Independent. Luke Johnson is believed to have indicated that a tie-up with BT Vision is worthy of consideration after preliminary talks. The government is “keen” on reaching a solution for what will be a £150m annual funding shortfall by 2012 and a deal with BT, using its telephone lines for transmission, would have “obvious benefits” for the broadcaster.
People: Jon Snow claims his blogs are censored
Belgians look at Royal Mail offer
De Post-La Poste, the Belgian postal group which is backed by private equity, is considering bidding for part of Royal Mail, reported the Daily Telegraph. Buyout company CVC Capital Partners, which has a “number of investments” in the postal sector, is in talks with the Belgian company about making an bid. If its interest leads to an offer it would be the latest in an extensive list of European suitors, of which Dutch company TNT has emerged as the “front runner” with an offer of up to £3bn for a third of the company.
Will Self: The Post Office we hanker after no longer exists
AIG set to get $30bn more capital
Insurer American International Group is likely to receive up to $30bn in new capital and have its debts forgiven, reported Bloomberg.com. According to information from inside the company AIG will agree to give stakes in its two biggest international divisions to the government to “erase” some of its debt. The company is set to announce a $60bn fourth-quarter loss and has already been the beneficiary of a rescue package of $150bn from the US government, which has deemed the underwriter of derivative contracts “too important to fail”.
AIG rescue and the Goldman Sachs connection
Sport: Manchester United win Carling Cup
...in brief..................
HSBC plans rights issue and Mosaic set to go into administration
HSBC Holdings, Europe’s biggest bank, is set to raise around £12bn to “bolster its capital”, reported Bloomberg.com. The bank announced the rights issue in the wake of a fall in 2008 profits to $5.73bn from $19.1bn in 2007, and a shrinking of its lending and mortgage business in the US…………
Legendary investor Warren Buffett’s company Berkshire Hathaway“turned in its worst performance on record” last year, reported theFinancial Times. In his annual letter to shareholders he talked about a “paralysing fear” overwhelming the country and its investments…………
HBOS whistleblower Paul Moore has presented “new evidence” to the Treasury Select Committee on the bank’s collapse, reported theIndependent. The “reckless” sales-culture of the company had a “serious impact” on potential mis-selling to un-informed customers, he said yesterday…………
The Mole: Paul Moore to release damaging documents in stages
Conservative party treasurer Michael Spencer has had to inject £70m of his own money into spread-betting company City Index, reported theDaily Telegraph. The funds were required after clients defaulted on £43m of losses, with one losing £29m on a “single Spanish property company”…………
AstraZeneca tried to “bury” bad news surrounding its blockbuster drug Seroquel, reported the Times. Internal memos released in a US court case have unearthed research by the company showing that Haldol, a cheaper rival, was more effective and praising a “smoke and mirrors job”…………
Fallen pharma giants hurt us all
Mosaic Fashions, the retail business backed by Icelandic money, is expected to be put in administration this week, reported the Guardian. The group owns brands like Karen Millen and Oasis and it is thought that as part of a rescue, fashion chain Principles will be sold off…………
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