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Business News
for 01/20/2009

(last updated 7:30am EST 01/20/2009)

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• HK stocks close 2.85% lower HK stocks close 2.85% lower
01/20/2009
Hong Kong stocks shed 380.22 points, or 2.85 percent, to close at 12,959.77 on Tuesday. Turnover rose to 39.58 billion HK dollars (5.11 billion U.S. dollars) from 37.92 billion HK dollars (4.87 billion U.S. dollars) on Tuesday. &$ &$Source: Xinhua&$ &$ ... (4 h ago)

• China Development Bank to lend 120 bln y... China Development Bank to lend 120 bln yuan for Qinghai infrastructure
01/20/2009
China Development Bank (CDB) signed an agreement with Qinghai Province to provide at least 120 billion yuan (17.65 billion U.S. dollars) in loans to the province before 2015. The funds will be used to support infrastructure projects such as highways, airports, railroads and power facilities, the bank said Monday. Loans will also go to industrial projects that draw on the province's local advantages, such as coal and salt lake, and programs involving living standards such as settl ... (4 h ago)

• HK exchange chairman proposes Asia's own... HK exchange chairman proposes Asia's own rating agency
01/20/2009
The current financial crisis provided an opportunity for Asia to consider establishing a rating agency of its own, most probably with some public source of funding support, Hong Kong Exchange and Clearing Ltd. Chairman Ronald Arculli said Tuesday. Speaking at the second Asian Financial Forum, Arculli said that there has been a lot of discussions over the past year or so on an Asian rating agency and that it was clear that there have been deficiencies in how credit was rated. "I t ... (4 h ago)

• China allows listed commercial banks to ... China allows listed commercial banks to resume exchange-based bond trades
01/20/2009
China's listed commercial banks will be allowed to trade bonds on the country's exchanges for a trial period of unspecified length, ending a ban imposed in 1997, securities regulators said. Banks will need approval from the China Banking Regulatory Commission (CBRC) and then apply to stock exchanges for such trading, according to a web notice posted Monday by the China Securities Regulatory Commission (CSRC). Transactions must be on a cash basis and can involve treasury, corporat ... (4 h ago)

• New York Times receives $250 mln loan fr... New York Times receives $250 mln loan from Mexican mogul
01/20/2009
The New York Times Co. said Monday it received 250 million U.S. dollars in financing from one of the world's richest men, Mexican billionaire Carlos Slim, to help it through financial problems, media reports said. Slim, 68, who already owns 6.9 percent of the Times's stock, would invest 250 million dollars in the form of six-year notes with warrants that are convertible into common shares, the company said in a statement. Under the terms of the deal, Slim will receive no represent ... (7 h ago)

• Tokyo stocks tumble 2.31% on renewed eco... Tokyo stocks tumble 2.31% on renewed economic woes
01/20/2009
Tokyo stocks tumbled Tuesday with the key Nikkei index fell below 8,000 line in the morning, as investors' sentiment was dampened by renewed fears about economic and financial woes in the world. The 225-issue Nikkei Stock Average lost 191.06 points, or 2.31 percent, from Monday to 8,065.79. The Nikkei briefly traded below the 8,000 threshold on an intraday basis for the first time since Thursday. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was ... (7 h ago)

• Chinese shares almost flat on expectatio... Chinese shares almost flat on expectation of more gov't stimulus
01/20/2009
Chinese share prices closed 0.37 percent higher on Tuesday on expectation of more government stimulus plans. The Shanghai Composite Index gained 0.37 percent to 1,994. The Shenzhen Component Index climbed 0.54 percent to 7,020. Combined turnover shrank to 85.15 billion yuan (12.2 U.S. dollars) from 120.45 billion yuan on the previous trading day. &$ &$Source:Xinhua&$ &$ ... (7 h ago)

• Hong Kong stocks finish sharply lower at... Hong Kong stocks finish sharply lower at midday
01/20/2009
Hong Kong stocks slumped 443.97 points, or 3.33 percent, to finish Tuesday's morning session at 12,896.02. The benchmark Hang Seng Index easily lost its support at the key 13,000 level as market sentiment was crunched by heavyweight HSBC's further downfall. &$ &$Source:Xinhua&$ &$ ... (7 h ago)

• Chinese mainland, HK sign currency swap ... Chinese mainland, HK sign currency swap agreement
01/20/2009
The mainland and Hong Kong signed Tuesday a three-year currency swap deal worth 200 billion yuan (28.6 billion U.S. dollars). The move by the central government is aimed to help stabilize the Hong Kong economy and its currency. &$ &$Source:Xinhua&$ &$ ... (7 h ago)

• HK received 29.5 million visitors in 200... HK received 29.5 million visitors in 2008
01/19/2009
The number of people entering and exiting Hong Kong in 2008 exceeded 223 million, up by 2.3 percent from 2007. Among them, the number of visitors entering Hong Kong was 29.5 million, up by 4.7 percent from 2007, according to information released on January 19 by the Immigration Department of the Government of the Hong Kong Special Administrative Region. Among the travelers visiting Hong Kong in 2008, those who traveled over land and those who traveled by sea to Hong Kong increased by 8.3 perc ... (8 h ago)

• S Korea posts trade deficit in 2008 S Korea posts trade deficit in 2008
01/19/2009
South Korea posted its first trade deficit in 2008 since 1997 when the nation was hit by the Asia-wide trade shortfall, a government report showed Tuesday. According to the report by the Korea Customs Service, the nation's trade shortfall reached 13.3 billion U.S. dollars last year, a turnaround from a surplus of 14.6 billion U.S. dollars in 2007. Exports jumped 13.6 percent to 422 billion U.S. dollars, while imports surged 22 percent to 435.3 billion U.S. dollars last year, the ... (8 h ago)

• S Korean investment in foreign securitie... S Korean investment in foreign securities drops 41% in 2008
01/19/2009
South Korea's investment in foreign securities plunged 41 percent in 2008 from a year ago falling for the first time since 1994, a securities deposit agency said Tuesday. According to the Korea Securities Depository (KSD), local individual and corporate investors purchased 4.78 billion U.S. dollars worth of overseas stocks and bonds last year. "Local investors were spooked by stock market slumps across the world and fluctuations in the won's value against the U.S. dollars," the K ... (8 h ago)

• S Korea, EU make significant progress in... S Korea, EU make significant progress in free trade talks
01/19/2009
South Korea and the European Union (EU) have made "significant" progress in their two-day negotiations for a free trade, Korea Times reported Tuesday. "We confirmed that we have made significant progress during this week's talks," South Korean Trade Minister Kim Jong-hoon was quoted as saying in a conference after ending two days of negotiation in Seoul. Though he declined to comment on which issues remain unresolved, Kim said both sides did make significant advancement in such a ... (8 h ago)

• Dollar slips to lower 90 yen level Dollar slips to lower 90 yen level
01/19/2009
The U.S. dollar slipped to the lower 90 yen level Tuesday morning in Tokyo. At noon, the dollar fetched 90.32-37 yen, down from Monday's 5 p.m. quotes of 90.62-63 yen in Tokyo. A comparable quote from late Monday in New York is unavailable due to a national holiday. The euro traded at 1.3025-3030 dollars and 117.69-74 yen, against late Monday's quote of 1.3292-3295 and 120.46-50 yen in Tokyo.　 &$ &$Source:Xinhua&$ &$ ... (8 h ago)

• Myanmar imports more locomotives to help... Myanmar imports more locomotives to help facilitate rail transportation
01/19/2009
Myanmar has imported 20 more diesel locomotives from China to help facilitate the country's rail transportation, the official newspaper New Light of Myanmar reported Tuesday. Of the 20 locomotives of 2,000 horse power imported by the state-run Myanmar Railways (MR), 14 will be used in place of the old ones running between Yangon and Nay Pyi Taw, between Yangon and Mandalay, and between Yangon and Mawlamyine, while the remaining six between Mandalay and Lashio, the report said. A ... (8 h ago)

• China's ICBC reports 14% rise in 2008 lo... China's ICBC reports 14% rise in 2008 loans
01/19/2009
Lending by the Industrial and Commercial Bank of China (ICBC) rose 14.2 percent year-on-year in 2008 to a record high of 530 billion yuan (77.5 billion U.S. dollars), the bank said at a work meeting Monday. About half of the total went to small and medium-sized companies and individuals, in line with a government call to boost domestic demand by supporting smaller companies and private consumption. Lending to smaller companies stood at 175.9 billion yuan, while loans to individua ... (8 h ago)

• Shanghai Air net losses more than double... Shanghai Air net losses more than double on weak demand, fuel prices
01/19/2009
Shanghai Airlines' net loss more than doubled in 2008 to 870 million yuan (127.2 million U.S. dollars), the carrier said Tuesday in a statement to the Shanghai Stock Exchange. The airline, reporting unaudited figures to the exchange, cited the impact of weak demand and fluctuating fuel prices. The year-earlier loss was 435 million yuan, or 0.402 yuan per share. Shanghai Airlines didn't release a per-share loss figure for 2008, but it had 1.08 billion outstanding shares last year. ... (10 h ago)

• S Korean insurers loan default ratio inc... S Korean insurers loan default ratio increase
01/19/2009
The loan delinquency ratio of South Korean insurers reached 3.72 percent as of the end of November, up from 3.61 percent at the end of September, the financial watchdog said Tuesday. The Financial Supervisory Service (FSS) attributed the rise to the slumping economy which jacked up bad loans by households and businesses. According to the FSS, the delinquency ratio for household loans extended by insurers also rose to 3.31 percent as of the end of November, compare with 3.19 perce ... (12 h ago)

• China's urban unemployment rate rises to... China's urban unemployment rate rises to 4.2%
01/19/2009
China registered an urban unemployment rate of 4.2 percent at the end of 2008, 0.2 percentage points higher than a year earlier, said the Ministry of Human Resources and Social Security here Tuesday. &$ &$Source:Xinhua&$ &$ ... (13 h ago)

• UK bank shares plummet despite new gov't... UK bank shares plummet despite new gov't bailout
01/19/2009
Shares in UK banks on Monday tumbled the most since 1985, despite a new 300-billion-pound (about 438 billion U.S. dollars) rescue package announced by the government to help troubled financial institutions, media reported. Royal Bank of Scotland -- which earlier Monday posted a UK corporate record loss of up to 28 billion pounds (41.5 billion U.S. dollars) last year -- saw its shares plunge by 68 percent by 1620 GMT. Lloyds Banking Group slumped 32 percent, Barclays -- which lost ... (13 h ago)

• Advertising: Is Star Power Enough to Sel... Advertising: Is Star Power Enough to Sell Beer in Hard Times? Two Brewers Hope So
01/19/2009
Anheuser-Busch InBev and Heineken are preparing efforts to reach beer drinkers who have been watching their spending since the recession began. (8 h ago)

• Mexican Billionaire Invests in Times Com... Mexican Billionaire Invests in Times Company
01/19/2009
The New York Times Company approved a $250 million investment late Monday night by the Mexican billionaire, Carlos Slim Helú. (11 h ago)

• The Media Equation: Can Sundance Get a B... The Media Equation: Can Sundance Get a Break?
01/19/2009
While creator Robert Redford is criticized that the film festival is far too commercial, the knock on Sundance this year has been that it will not be commercial enough. (23 h ago)

• At Sundance, IFC Prepares to Go on a Sho... At Sundance, IFC Prepares to Go on a Shopping Spree
01/19/2009
IFC Entertainment will probably turn out to be one of the most aggressive buyers at the Sundance Film Festival when it comes to the number of films bought, if not the prices paid. (23 h ago)

• Editors and Publishers in a Revolving Do... Editors and Publishers in a Revolving Door
01/18/2009
The cost pressures prevailing in the newspaper business have led to rapid turnover at the top. (1 d ago)

• Hip-Hop Magazine No Longer Accepts Ads f... Hip-Hop Magazine No Longer Accepts Ads for Lewd Products
01/18/2009
The Source hopes to gain more than it loses by chasing mainstream advertisers that do not want their ads alongside the adults-only kind. (1 d ago)

• Amid Talk of a Departure, CNN Grooms a T... Amid Talk of a Departure, CNN Grooms a Team of Health Experts
01/18/2009
New talent will be handy if CNN’s star medical expert, Dr. Sanjay Gupta, becomes the surgeon general. (1 d ago)

• Endorsement at a Crime Scene: A Book Plu... Endorsement at a Crime Scene: A Book Plugged in ‘Scarpetta’
01/18/2009
Patricia Cornwell, the best-selling crime fiction writer, uses her latest Kay Scarpetta novel to promote “American Rust,” a first novel by Philipp Meyer. (1 d ago)

• After Steve Jobs Acknowledges Ill Health... After Steve Jobs Acknowledges Ill Health, Doubts for Reporters
01/18/2009
For many months, the media munched on denials from Apple that Mr. Jobs was in poor health, despite visual evidence to the contrary. (1 d ago)

• Fox News Primes Itself for a Shift Fox News Primes Itself for a Shift
01/18/2009
Far from being subdued by the shift in the country’s mood, the cable news network of choice during the George W. Bush years seems re-energized. (1 d ago)

• And How Do I Know You? Oh, the List And How Do I Know You? Oh, the List
01/18/2009
Some parents are using their children’s class lists and school directories as marketing resources. (1 d ago)

• Can CNN, the Go-to Site, Get You to Stay... Can CNN, the Go-to Site, Get You to Stay?
01/18/2009
CNN.com ranks first in news and the site is trying to extend that reach through more experimental forays. (2 d ago)

• Ping: At First, Funny Videos. Now, a Ref... Ping: At First, Funny Videos. Now, a Reference Tool.
01/17/2009
YouTube is rapidly morphing into a popular search engine and a new entry point into the Web. (2 d ago)

• The Popular Newsweekly Becomes a Lonely ... The Popular Newsweekly Becomes a Lonely Category
01/17/2009
The business of telling people what happened in the last week is just about gone, in favor of telling them how to think about the news. (2 d ago)

• In Book World, Caroline Kennedy Is a Pow... In Book World, Caroline Kennedy Is a Powerhouse
01/17/2009
As the publisher of five books, writing and editing is the work Caroline Kennedy has pursued most energetically and, arguably, most successfully. (3 d ago)

• SAG Leader, in Shift, No Longer Seeks St... SAG Leader, in Shift, No Longer Seeks Strike Authorization
01/17/2009
The union’s executive director proposes a vote on the latest contract offer, not on authorizing a walkout. (3 d ago)

• Global Music Sales Fell 7% in ’08 as CDs... Global Music Sales Fell 7% in ’08 as CDs Lost Favor
01/17/2009
Another sizable jump in digital sales failed to make up for a deepening decline in the compact disc market. (3 d ago)

• Report: Mexican raises stake in N.Y. Tim... Report: Mexican raises stake in N.Y. Times
01/20/2009
The New York Times Co. is in talks with billionaire Carlos Slim Helu about a possible investment of hundreds of millions of dollars that could help the newspaper publisher. (3 h ago)

• Retailers prepare for a new, frugal futu... Retailers prepare for a new, frugal future
01/20/2009
For years, retailers could afford to be sloppy about running their businesses because customers kept buying. No more. (3 h ago)

• At $3 million, Super Bowl ad time is ...... At $3 million, Super Bowl ad time is ... cheap?
01/20/2009
At a reported $3 million per spot, ad time for the upcoming Super Bowl XLIII is the most expensive ever. But by some measures, it makes sense, and might even be a bargain. (3 h ago)

• Obama's billionaire backers Obama's billionaire backers
01/20/2009
Ever since he ran for the Senate in 2004, Barack Obama has had a wealth of 10-figure tycoons advising — and funding — him. (3 h ago)

• Earnings reports to hit Wall Street this... Earnings reports to hit Wall Street this week
01/20/2009
As hundreds of fourth-quarter earnings reports stream in this week, Wall Street's reaction will turn on companies' answers to one question: When will the recession end? (3 h ago)

• Chrysler, Fiat form a strategic alliance Chrysler, Fiat form a strategic alliance
01/20/2009
Fiat and Chrysler have signed a nonbinding agreement for a strategic alliance that would give the Italian auto empire a 35-percent stake in the troubled U.S. carmaker. (3 h ago)

• Obama already getting down to business Obama already getting down to business
01/20/2009
Barack Obama's audacious agenda of stimulus, reform and regulation will shake up every business and industry. (3 h ago)

• Cost of crude oil drops below $35 a barr... Cost of crude oil drops below $35 a barrel
01/19/2009
Oil fell to below $35 a barrel Monday as investors eyed a slew of U.S. corporate earnings this week for signs of weakening consumer demand amid the worst recession in decades. (14 h ago)

• Bank problems, lack of solutions spans A... Bank problems, lack of solutions spans Atlantic
01/19/2009
The day before President-elect Barack Obama takes office, the escalating troubles facing major banks around the world couldn't be clearer. (15 h ago)

• The 10 best U.S. cities to find a job in... The 10 best U.S. cities to find a job in 2009
01/19/2009
Having trouble finding a job in, say, New York City or South Florida? You might give Madison, Wis., a try. (19 h ago)

• EU sees recession being deep and long-la... EU sees recession being deep and long-lasting
01/19/2009
The European Union said Monday it is facing a "deep and protracted recession" and slashed growth forecasts, while Britain announced its second massive bank bailout. (20 h ago)

• Your Career: Get severance, and move on Your Career: Get severance, and move on
01/19/2009
After the initial shock of losing a job wears off, some people get angry and assume their former employer is trying to screw them out severance pay or vacations days. (21 h ago)

• Buffett: U.S. enduring ‘economic Pearl H... Buffett: U.S. enduring ‘economic Pearl Harbor’
01/19/2009
Billionaire investor Warren Buffett says the U.S. is engaged in an "economic Pearl Harbor." (21 h ago)

• Obama: A leader for the ‘we’ generation... Obama: A leader for the ‘we’ generation
01/19/2009
Leaders can learn a lot from President-elect Barack Obama about power that comes from the bottom up, not just from the top down. (23 h ago)

• Newsweek: Today's misery is opportunity ... Newsweek: Today's misery is opportunity for Obama
01/19/2009
Americans have lost their sense of mastery over the future, and if Obama can restore that, he will have gone a long way toward reviving the economy and ensuring a successful presidency. (1 d ago)

• Marketers look to cash in on Obama mania Marketers look to cash in on Obama mania
01/18/2009
The guys hawking T-shirts and trinkets on the corners of downtown Washington have some new competition in the selling frenzy building up to the inauguration — Corporate America. (1 d ago)

• Grandson of Toyota Founder Will Lead Grandson of Toyota Founder Will Lead
01/20/2009
Toyota Motor named Akio Toyoda, 52, to head the company in a widely expected management reshuffle. (5 h ago)

• Russia Restores Gas to Ukraine Russia Restores Gas to Ukraine
01/20/2009
Russia and Ukraine said they would quickly resume shipments of fuel to freezing homes and idled factories. (5 h ago)

• In Europe, New Efforts to Bolster Lendin... In Europe, New Efforts to Bolster Lending
01/19/2009
Governments in Europe and the U.S. are moving to assure that bailed-out banks lend more money to offset the recession that has engulfed both continents. (8 h ago)

• A Gloomy Forecast for Australian Economy... A Gloomy Forecast for Australian Economy in 2009
01/19/2009
Once considered a relatively save haven, Australia’s mining-led economy “will unwind scarily fast” in part because of slower-than-expected growth in China. (9 h ago)

• Carrying Several Passports? It’s Not Jus... Carrying Several Passports? It’s Not Just for Spies
01/19/2009
Dual nationals who have more than one passport say having a choice can be helpful when traveling. (10 h ago)

• Questions About Timing of Europe’s New M... Questions About Timing of Europe’s New Microsoft Inquiry
01/19/2009
Some legal experts say the European authorities may have a harder time winning the case because Microsoft may be losing market share. (11 h ago)

• Premium Air Travel Fell Sharply in Novem... Premium Air Travel Fell Sharply in November
01/19/2009
The number of passengers buying premium tickets dropped 11.5 percent in November; sales in economy class declined 6 percent. (11 h ago)

• Russia and Ukraine Reach Deal on Gas Russia and Ukraine Reach Deal on Gas
01/18/2009
The prime ministers of Russia and Ukraine agreed to a resolution of their countries’ gas dispute early Sunday. (1 d ago)

• Billionaire Seeks Deal in Times Co. Billionaire Seeks Deal in Times Co.
01/18/2009
Carlos Slim Helú is near a deal to invest about $250 million in The New York Times Company, according to people briefed on the transaction. (1 d ago)

• Music Industry Imitates Digital Pirates ... Music Industry Imitates Digital Pirates to Turn a Profit
01/18/2009
Online and mobile services offering listeners unlimited “free” access to millions of songs are set to proliferate in the coming months, according to music industry executives. (1 d ago)

• Indian Executive Is Said to Have Siphone... Indian Executive Is Said to Have Siphoned Cash
01/17/2009
The founder of Satyam is said to have skimmed huge amounts of cash from the company, rather than padding its books as he has claimed. (2 d ago)

• A County in China Sees Its Fortunes in T... A County in China Sees Its Fortunes in Tea Leaves Until a Bubble Bursts
01/17/2009
After a boom and a bust in the market for Pu’er tea, a region in China’s southwest has learned a lesson about gullibility, greed and speculation. (3 d ago)

• Anglo Irish Bank Is Nationalized Anglo Irish Bank Is Nationalized
01/17/2009
Trading in Anglo Irish shares was suspended after the Irish government announced it was nationalizing the bank, saying an earlier capital-injection plan was not sufficient. (3 d ago)

• MAN-CINI OVERBOARD MAN-CINI OVERBOARD
01/20/2009
The mystery surrounding Newsday's missing editors deepened yesterday as Editor-in-Chief John Mancini and Managing Editor Deborah Henley remained out of the newsroom for the fifth-straight day. "It's bizarre," said one insider, who was left... (7 h ago)

• MORGAN TO CANCEL OIL-STORAGE TANKER MORGAN TO CANCEL OIL-STORAGE TANKER
01/20/2009
Morgan Stanley scrapped a deal to hire a supertanker for storing crude in the Gulf of Mexico, two people familiar with the situation said. Traders for the bank canceled the booking yesterday, the people said, declining to say why or be... (7 h ago)

• CITIGROUP MAY DELAY NIKKO DEAL CITIGROUP MAY DELAY NIKKO DEAL
01/20/2009
Citigroup, the bank that's splitting in two and selling units to endure the credit crisis, plans to keep Japanese broker Nikko Cordial Securities for at least a year, said two company officials who asked not to be identified because the... (7 h ago)

• THE LONG ARM OF LAW FIRMS BIG DEAL THE LONG ARM OF LAW FIRMS BIG DEAL
01/20/2009
AS banks contract, vacancies soar and rents plummet, any evidence of residual market strength is welcome. We got word of such a morsel over the Martin Luther King Jr. Day holiday weekend - but closed offices and traveling real-estate executives... (7 h ago)

• FIAT EYES CHRYSLER FIAT EYES CHRYSLER
01/20/2009
Shares of industrial giant Fiat skidded to a new low on reports it might rescue languishing automaker Chrysler in a partnership deal to build cars for each other. Fiat, whose businesses range from robots and heavy equipment to newspapers and... (7 h ago)

• 'STEEL' THE RATINGS 'STEEL' THE RATINGS
01/20/2009
With the Super Bowl less than two weeks away, NBC is looking at solid - but probably not stellar - ratings for its first broadcast of the big game in more than a decade. A Pittsburgh Steelers/Arizona Cardinals Super Bowl emerged from Sunday's... (7 h ago)

• GOLDMAN'S GLOOMY FORECAST WHACKS OIL GOLDMAN'S GLOOMY FORECAST WHACKS OIL
01/20/2009
Crude oil futures fell below $34 a barrel in New York on forecasts faltering global economic growth will drive down fuel consumption for a second year. Goldman Sachs Group Inc., which expects demand to fall by about 1.6 million barrels a day this... (7 h ago)

• RBS LOSS NEARS $41B RBS LOSS NEARS $41B
01/20/2009
Royal Bank of Scotland, Britain's biggest government-controlled bank, said yesterday it may post a loss of as much as $41 billion as the credit crisis worsens. The company's shares plunged by the most in two decades, fueled by concern the... (7 h ago)

• HOW PRESIDENT OBAMA CAN HELP THE ECONOMY HOW PRESIDENT OBAMA CAN HELP THE ECONOMY
01/20/2009
TODAY President Obama is partying. But he has a global "to do" list in his back pocket: dog for the kids, Peace On Earth, save the world financial system. That last one should carry the notation - memo to self, stop doing what the Bush... (7 h ago)

• FUND FUGITIVE'S '05 'FINAGLING' FUND FUGITIVE'S '05 'FINAGLING'
01/20/2009
As authorities widen their search for alleged hedge-fund swindler Arthur Nadel from Florida to Louisiana, sources say suspicions about his funds' performance date back at least to 2005. Officials have turned to Louisiana in their hunt for Nadel... (7 h ago)

• SLIM GIVES TROUBLED TIMES $250M BOOST BY... SLIM GIVES TROUBLED TIMES $250M BOOST BY JAY SHERMAN
01/20/2009
Mexican billionaire Carlos Slim Helú late last night reached an agreement to lend The New York Times Co. $250 million, providing the troubled newspaper company much-needed cash ahead of a big interest payment due in May. As part of the pact... (7 h ago)

• BUSINESS BRIEFS BUSINESS BRIEFS
01/20/2009
BofA cuts Bank of America is expected to lay off up to 4,000 employees in its capital markets busi nesses, or 30 to 40 per cent, starting this week, the FT reported. Most of the cuts are expected to be in New York. Car crash? UAW President Ron... (7 h ago)

• Visa Europe upbeat as customers buy coff... Visa Europe upbeat as customers buy coffees on the card
01/20/2009
Europeans celebrated Christmas Day last year by making 1.7m online shopping transactions with their Visa cards, the head of Visa Europe said today, as he made an upbeat forecast for 2009 prospects. Peter Ayliffe, the company's chief executive, said the economic downturn would have to be "catastrophic" for it not to see growth in its turnover this year. After shoppers spent 10% more on Visa cards last year than in 2007, Visa Europe is projecting growth in transactions of at least 5% this year as consumers drop cash and switch to debit/credit cards for smaller-ticket items. Online purchases accounted for a third of the 532m total transactions on Visa cards made between 1 December 2008 and 4 January 2009, Ayliffe said, a 24% jump on the year. The busiest day of the holiday period, 23 December, saw 24.5m total transactions or 731 every second. Visa's figures confirm evidence that, while high street retail shops, especially in the UK, are closing their shutters permanently, consumers are still buying via their laptops – and choosing debit rather than credit cards. Debit transactions now account for 70% of Visa Europe's turnover. "Transactions held up well but the value of spend is reducing and this trend will continue in 2009," he said, presenting figures showing Visa Europe turnover at €673m and pre-tax profits at €113m. "I would be surprised if there was any increase in terms of the amount of spend at value." Total purchases and cash withdrawals last year were €1.3tn. Europe guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (3 h ago)

• Pound hits seven-year low against dollar Pound hits seven-year low against dollar
01/20/2009
Sterling tumbled to its lowest level against the dollar in seven-and-a-half years today, as traders digested the implications of the government's latest multibillion lifeline to support the banking sector . Banking shares came under further pressure , with shares in Lloyds Banking Group plummeting almost 50% at one stage, to 33.8p. Barclays lost another 12% to 77.5p. On the foreign exchange markets the pound shed more than six cents to hit $1.3916, its weakest point since summer 2001. Yesterday morning the pound was worth almost 10 cents more at $1.47, but proposals for the UK taxpayer to insure bank loans and support the mortgage market piled pressure on the currency. News of a smaller-than-expected fall in inflation last month eased fears of deflation but failed to help sterling. City economists had forecast a fall in the consumer price index to 2.7% last month, down from 4.1% in November but the figure came out at 3.1%. Gordon Brown has committed £50bn to fund asset purchases by the Bank of England, but the final cost could be much higher and will require a further increase in government borrowing. "The risk now is that people are looking back to the run on the pound in 1931, when Britain came off the gold standard and sterling fell by 31%," said Richard Turner of IG Index, the spread-betting company. Sterling has already dropped by a third from November 2007's high of $2.11 against the dollar. But with the dollar hitting a six-week high against a basket of major currencies today, there are fears that the pound could be poised for further falls. The pound also dropped against the euro to a two-week low of €1.0742. Turner believes that now the pound has fallen through the $1.40 mark, it could quickly slide as low as $1.30. He has seen an increase in the number of people short-selling sterling, betting that it will fall. "Our clients are more comfortable about shorting the pound," said Turner. "This isn't the unwinding of long trades, this is people speculating that sterling will go even lower." Other traders said the inauguration of Barack Obama was helping the dollar, amid optimism over his economic recovery plan. British economy 'finished' Jim Rogers, the veteran US investor, claimed the UK economy was "finished". "I would urge you to sell any sterling you might have," Rogers told Bloomberg. "It's finished. I hate to say it, but I would not put any money in the UK." Yesterday, Spain became the first major country to be downgraded by ratings agency S&P, from the top rating of AAA to AA+. S&P said the "structural weaknesses" in the Spanish economy, and the likelihood of a long recession, made holding the country's debt more risky. One City analyst said there was now a possibility the UK could follow Spain and see its debt downgraded, although S&P indicated yesterday that the UK was in a better position to handle its growing debts. Meanwhile, renewed concern over the world economic downturn continued to hammer the oil price, which dropped 8% today. The cost of a barrel of US crude fell to $33.53, down more than $3. Economic data due out this week is expected to show that the Chinese economy, long the driver of global growth, is slowing fast. The UK will also officially be in recession from Friday, when the latest data is released. The oil price had risen in recent weeks in response to the dispute between Russia and Ukraine over gas , which cut supplies across parts of Europe. But that row appears to have been resolved, with the news that Gazprom is pumping gas through Ukraine again. Currencies Economics Oil guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (3 h ago)

• Lloyds slumps 47% as investors bail out Lloyds slumps 47% as investors bail out
01/20/2009
After hitting Royal Bank of Scotland hard yesterday, the market has now picked a new target in Lloyds Banking Group . It shares have slumped 30.5p to 34.5p - a 47% decline - as investors bailed out amid concerns that Lloyds could be another bank that ends up being nationalised by the UK government. Mark McCutcheon, head of broking at IAF Securities said: "There is genuine selling here, mixed with some shorting." David Buik at BGC Partners said: "There has been some talk that Lloyds, as it's now know, may be short of capital and that the government could well increase its stake from 43% to 50% by exchanging onerous preference shares with a coupon of 12% which has subsequently been reduced to 6% for a further issuance of ordinary shares to HMG. Whether the market is right or wrong they perceive that the 'Hornby regime' [at Lloyds' merger partner HBOS] bought too many toxic mortgage related securities which probably now have no value. We shall hear officially at the end of February. However, today's run on the shares may well require an official statement from [Lloyds]" However, a statement yesterday that Lloyds had not seen any deterioration in its business since its November statement did ittle good. Nor have comments today from a spokesman repeating the bank has continued to trade satisfactorily and it has a robust capital position. Analyst Nic Clarke at Charles Stanley said: "After yesterday's treatment of RBS it seems as though the market has now got Lloyds in its sights. Any good news, the market seems to put little store by, any bad news sends share prices markedly lower. "The [Lloyds] price at this level reflects the market's increasing concerns that the bank is heading for full nationalisation. There are lots of question marks over whether yesterday's government package will solve the problems or whether, if next year's profits are along the lines of 2008, the government could be forced to nationalise the banks." Talk in the market that a rating agency was casting doubts on the government's creditworthiness has also undermined sentiment. One trader said: "There is a big question mark over whether if the government nationalises the banks, who is going to want to buy sterling bonds." Among the other banks, Barclays has dropped 13p to 75p, HSBC is down 15p to 486p on renewed talk from Hong Kong it might need a fundraising, while even Standard Chartered has fallen 26p to 680p. However Royal Bank of Scotland 's revival has so far not been punctured, with the shares up 1.2p to 12.8p. Lloyds Banking Group Royal Bank of Scotland HSBC Standard Chartered Barclays guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (4 h ago)

• Wolfson Microelectronics fined by regula... Wolfson Microelectronics fined by regulator
01/20/2009
Wolfson Microelectronics , whose products include chips used in Apple's iPhone, has been fined £140,000 by the City regulator for a delay in disclosing inside information. The company, which was separately downgraded from buy to hold by Citigroup yesterday, has fallen 2.25p to 74.75p on news of the fine by the Financial Services Authority. The FSA said there was a false market in Wolfson shares for 16 days after it failed to reveal the price sensitive information last March. According to the FSA, Wolfson received news that a major customer would not need parts for some of its future products, representing a loss of $20m or 8% of its forecast revenue for 2008. The company believed it would still meet forecasts due to other business, but the FSA said it should have revealed the negative news as soon as possible. The FSA said: "On 12 March, Wolfson discussed the matter with its investor relations advisors who wrongly recommended that there was no need to disclose the negative news. Consequently, Wolfson delayed making an announcement. Wolfson had not contacted its corporate brokers or legal advisors at this point. "At its board meeting on 20 March, Wolfson reconsidered the earlier advice received. Following the meeting, Wolfson sought legal and corporate broking advice which recommended disclosing the negative news. On 27 March, the company announced the negative news and its share price closed at about 18% lower than the previous day." Sally Dewar, managing director of wholesale and institutional markets at the FSA said: "Listed companies must carefully consider what could be inside information and their obligations to disclose it. It is unacceptable for a company not to disclose negative news because it believes other matters are likely to offset it. Doing this hampers an investor's ability to make informed investment decisions and risks distorting the market value of a company's shares." Wolfson received a reduction in the fine from £200,000, partly because it had sought advice and also because it settled early. Michael Ruettgers, chairman of Wolfson said: "It was never the intention of the company to mislead the market and we are pleased that this has been taken into account by the FSA. On receiving the information about the loss of business, the company immediately sought advice and acted upon it. Upon discovering that the initial advice was incorrect, the company took prompt action and made the announcement." guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (5 h ago)

• Inflation falls to 3.1% Inflation falls to 3.1%
01/20/2009
Inflation fell by less than expected in December, official data out today showed, but economists still forecast a prolonged period of deflation later in the year. The Office for National Statistics said that consumer price inflation slowed to 3.1% in December, from 4.1% the previous month. This is the lowest level since April 2008 but still above the Bank of England's official target of 2%. Economists had predicted a drop to 2.6% but still high food and gas and electricity prices prevented the rate from falling faster. But core inflation, which excludes things like food and energy prices, fell more sharply than expected to 1.1% last month, from 2% in November, due to a combination of the VAT cut and aggressive discounting over the Christmas period. Clothing inflation fell 10.3% in December, from 7.3% the month before. Jonathan Loynes, an economist at Capital Economics, said: "Food and energy effects will continue to have a strong downward influence over the coming months, particularly if gas and electricity bills finally respond to the fall in oil prices." He added that this alone should be enough to push the headline rate of CPI inflation into negative territory over the summer. "However, the weakness of core inflation and the further downward pressure likely to result from the opening of a large amount of slack in the economy points to a growing danger of a more fundamental and longer-lasting period of deflation further ahead," he said. Retail price inflation (RPI) - used to calculate many pay rises - dropped to just 0.9% last month - the lowest annual rate since December 2001 - on the back of lower mortgage interest rate payments and falling house prices , which are including in RPI but not CPI. Sterling pared earlier losses against the dollar on the back of the data. The pound edged up to around $1.3995 after the data, compared with $1.3970 shortly before the news . Analysts believe that the fall in inflation will give the Bank more scope to make further cuts to rates. "The smaller-than-expected drop in consumer price inflation in December is most unlikely to stop the Bank of England cutting interest rates by a further 50 basis points from 1.50% to a new record low of 1.00% in February," said Howard Archer, chief UK and European economist at IHS Global Insight. Colin Ellis at Daiwa Securities added: "The question is when, not if, RPI inflation turns negative; zero inflation, unlike interest rates, is not binding." "The prospect of inflation getting below zero and staying there is the key reason the MPC has been cutting Bank Rate aggressively - and was also arguing behind the scenes for the pot of money the Government gave it yesterday to fund security purchases. Inflation Bank of England Consumer affairs guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (5 h ago)

• Burberry cuts 290 jobs as it shuts Rothe... Burberry cuts 290 jobs as it shuts Rotherham factory
01/20/2009
Up to 290 workers across Yorkshire will lose their jobs after luxury goods company Burberry announced plans to close its sewing factory in Rotherham. Burberry said this morning that it would shut the factory, which employs 170 people, as part of a drive to cut costs by £50m a year. Production will shift 20 miles north to another factory in Castleford, where a further 90 jobs are at risk through planned changes to the production line. Thirty more jobs are at risk at Keighley, West Yorkshire. The closure of the Rotherham site will leave Burberry with two UK factories at Castleford and Keighley. Burberry bought the Rotherham sewing factory in 2004. It was previously run by SR Gent, for decades one of Britain's major clothing suppliers, which hit trouble after customers such as Marks & Spencer started sourcing more products overseas. Burberry also plans to cut 250 jobs in Spain, where it is scaling back operations after seeing disappointing sales of its Thomas Burberry range, which is aimed at the youth market. The company said the job losses are subject to consultation. The moves will save between £30m and £35m a year, on top of an existing cost-efficiency programme to save £15m-£20m annually. It said the total programme would involve a one-off outlay of £60m. Tim Roache of the GMB said the move was "bad news for Rotherham". The union fought a long battle with Burberry two years ago in an unsuccessful attempt to prevent the closure of a factory in Treorchy, Glamorgan . The work carried out by Treorchy workers was shifted to China, leading to campaigns to "Keep Burberry British". The company insisted that today's closure was different, as it was not pulling out of Yorkshire. A Burberry spokesman pointed out that the company had doubled the workforce in Rotherham since taking it over in 2004. Burberry's chief executive, Angela Ahrendts, said the cost-cutting drive would help the company "trade through the current difficult environment and emerge even stronger when the global economy recovers". She said Burberry expected to hit its profit expectations. Burberry Retail industry Fashion guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (5 h ago)

• 99p pint draws drinkers to Wetherspoon 99p pint draws drinkers to Wetherspoon
01/20/2009
JD Wetherspoon today reported a surge in sales after the pub chain slashed the price of a pint of beer to 99p. The company, which has more than 700 pubs, said like-for-like sales in the last two weeks of trading were showing increases of 6.4%, compared with a rise of 2.6% across the first 12 weeks of its second-quarter financial period. Wetherspoon announced this month that it was turning the clock back to 1989, the last time draught beer was available for less than £1. The offer, which includes Greene King IPA and San Miguel lager, has been criticised in some quarters amid fears it could fuel irresponsible drinking and force many traditional pubs to close. Wetherspoon said it was trying to help those caught in the economic slump. Chairman Tim Martin said: "We are probably the biggest pubs company for students and pensioners, and those two groups in particular have been very keen. "People also know that they can buy a lot cheaper in Calais or in supermarkets, so it's a question of whether they come to the pub or not." Despite the recent strong trading, Wetherspoon dealt a blow to shareholders today by revealing that it intended to cancel future dividend payments. With a $140m (£95.3m) debt facility due for renewal in September, Wetherspoon said it would also reduce capital expenditure on new openings. It said: "In normal conditions, a refinancing of the private placement on attractive terms could be relied upon, given our financial performance. "However, in the present economic climate, a refinancing cannot be taken for granted and the board therefore feels that the measures described are prudent in the circumstances." JD Wetherspoon Food & drink industry guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (6 h ago)

• Three bids for Gatwick airport Three bids for Gatwick airport
01/19/2009
The airports operator BAA is understood to have received at least three bids for Gatwick airport by today's deadline for initial offers, but the final line-up could be longer. Global Infrastructure Partners, the joint venture between General Electric and Credit Suisse, which owns London City airport, confirmed it had made an offer. But it is set to face competition from Germany's Hochtief, which owns Budapest airport, and a consortium of Babcock & Brown fund and Deutsche Bank's RREEF Infrastructure. Hochtief has confirmed its interest, but Deutsche Bank and Babcock & Brown declined to comment. A number of other companies have also been linked to the Gatwick sale, and the eventual list of suitors could be longer. BAA declined to provide details on the lineup of companies expressing an interest, but reports have suggested that Manchester Airport Group, a fund run by Citigroup and 3i Infrastructure, could also be interested. BAA, which owns seven airports in Britain, is facing pressure from the Competition Commission to sell two airports in the south-east and one in Scotland. BAA owns Heathrow, Stansted, Edinburgh, Glasgow, Aberdeen and Southampton airports as well as Gatwick. The commission is expected to confirm its initial conclusions for the break-up of BAA later this year. BAA has not put a price tag on Gatwick, though industry estimates have suggest it could fetch up to £2bn. However, some analysts have suggested that it could be difficult for Gatwick to command a substantial premium on the regulated asset base – one way of valuing infrastructure assets – of £1.7bn. Last year 34 million passengers passed through Gatwick, down 2.8% on 2007, with the numbers falling sharply in December, according to figures published by BAA last week. The company said then that it expects "the long-term prospects for growth [to] remain good". The sale has been complicated by the impact of the credit crunch on financial markets, which has made funds less available, and on the wider economy. BAA's Gatwick move comes as the airports operator finds itself at the centre of the battle over a third runway at Heathrow. Last week the government gave the go-ahead for a third runway to expand Heathrow's capacity, but the proposal faces huge opposition. BAA guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (18 h ago)

• Pearson says results will beat forecasts Pearson says results will beat forecasts
01/19/2009
Pearson, owner of the Financial Times and Penguin, bucked the gloomy trend in the media sector today with a forecast that its annual results would beat the City's expectations. But the company, which has introduced a three-day week and cut jobs at the FT to deal with the advertising slump, said trading conditions had become more difficult in some of its markets in the fourth quarter. "We are naturally cautious about the economic environment, but we take confidence from our performance in 2008 ... Some of our markets will be tough this year and we are managing the company accordingly," said chief executive Marjorie Scardino. The company said it expected earnings per share to be ahead of City forecasts. Shares in the company rose 5%. Pearson reckons it will record earnings growth of around 20% for last year, compared with the 46.7p per share it managed in 2007. The City had been looking for earnings per share of about 51p, but that is being revised upwards to around 56p a share. It is the second time in three months that the company has advised analysts to increase forecasts. The company has moved aggressively into the educational publishing market, especially in the US, and Pearson's trading update is in stark contrast with comments from rival McGraw-Hill, which said earlier this month that the schools market in the US had softened. Pearson is less exposed to the American schools market, while its higher education, testing and international education operations have more than made up for any shortfall. The company has also benefited from the strength of the dollar against the pound as well as a lower than expected tax rate. Penguin has also fared better than feared. Bookseller Borders recently warned that Christmas had been disappointing, with sales down 11%. Pearson admitted it was a "slower holiday trading season for the overall books market", but Penguin had performed in line with management's expectations. Pearson Pearson Financial Times guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (20 h ago)

• Scandal as $350m Florida hedge fund mana... Scandal as $350m Florida hedge fund manager Arthur Nadel goes missing
01/19/2009
The disappearance of a Florida hedge fund manager has raised the possibility of another Madoff-style scandal in the United States, with fears mounting that an estimated $350m (£242m) of investments may have evaporated. Police in Sarasota, a city of 52,000 people south of Tampa, have called in the FBI to help in the hunt for Arthur Nadel, president of Scoop Management, who was last seen by his wife when he left home for work on Wednesday. Nadel's green Subaru car was found at Sarasota's airport on Thursday. The 76-year-old called his stepson that day to try to retrieve a letter interpreted by family members as a possible suicide note. Associates at Nadel's firm have told clients that the company's funds appear to be empty. In a letter to investors, Nadel's business partner, Neil Moody, said the funds "may have virtually no remaining value". The Securities and Exchange Commission, the US financial watchdog, has begun an investigation. Moody said Scoop was facing hefty redemption calls from customers who wanted to take out their money. The case has drawn comparisons with the scandal surrounding the Wall Street financier Bernard Madoff, who is accused of hiding losses of $50bn. Scoop's clients include an estimated 300 local residents and non-profit organisations. The local YMCA Foundation had $1.1m invested, originally a gift from Nadel's business partner, given on condition it was managed by the firm. The foundation's president, Karin Gustafson, told the Guardian: "This is a very puzzled community. We're very anxious to get some answers." She said her organisation faced the loss of 13% of its total endowment: "We're assessing the situation. We're sitting back here: we're not rushing to judgment, we're waiting for the facts to unfold." Run out of a store front with a green awning on Sarasota's high street, Scoop Management's six funds have grown from $10m to what clients were told was $350m over the course of a decade, according to the Sarasota Herald-Tribune newspaper. A former New York jazz pianist, Nadel and his wife, Peg, have been fixtures on Sarasota local social scene and prominent supporters of arts causes including the city's ballet. Scoop began as a club for day traders called "the inside Scoop" before evolving into a hedge fund. In claims which echo the much larger Madoff scandal, Nadel reportedly provided statements to customers showing typical returns of 8% to 12% annually. He claimed to be achieving such success through a complex technique of hedging purchases of stock with "short" positions to minimise the risk of falls in price. In a statement over the weekend, Nadel's family acknowledged all was not as it seemed: "The employees of Scoop Management, which include Peg Nadel, the wife of Arthur Nadel, have just learned that they, along with many others who have invested money with Art, have been victimised by his unauthorised actions." Upheaval in the financial markets has sparked a series of scandals concerning renegade financiers. An Indiana investment adviser, Marcus Schrenker, was arrested last week after faking his own suicide by parachuting out of a private plane. He faced legal claims over millions of dollar of allegedly misappropriated funds. The once buoyant hedge fund industry has been left in tatters by unprecedented volatility. According to Chicago-based Hedge Fund Research, 693 funds were liquidated in the first nine months of 2008, a 70% increase on the previous year. In Sarasota, the authorities said at least five people had filed complaints against Nadel over missing funds. Police lieutenant Stanley Beishline told Bloomberg News he believed Nadel was alive: "I think he is, at least until a couple of investors find him." United States Bernard Madoff guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (21 h ago)

• Consumers still splurging on furry frien... Consumers still splurging on furry friends
01/19/2009
Shoppers may be holding back spending on themselves as the economy goes into recession but they are apparently still willing to splurge on their furry friends. The nation's largest retailer of pet products, Pets at Home, said today that it experienced strong sales growth over Christmas, at a time when other retailers were struggling. It sold more than a quarter of a million Christmas-themed cat and dog toys over the festive season and customers bought over 300,000 special Christmas stockings for their favourite animals. Overall the company, acquired by buy-out group Bridgepoint for £230m in 2004, said like-for-like sales were up 10.4% over the six weeks to January 8. As a result, for the financial year to date – the 41 weeks from March 28 – like-for-like sales are up 7.2% and total sales are up 13.4%. "While the economic environment is challenging for all retailers, the continued strengthening of our offer coupled with our store-opening programme and the exceptional talent and dedication of our people gives us confidence for the future," said Pets at Home's chief executive, Matt Davies. The cold winter has also seen strong sales of the company's wildlife range as homeowners worried about their local wildlife start stocking up their bird tables. Sales of foods rich in fat and protein that help birds combat the freezing temperatures have been particularly strong. Pets at Home Retail industry Private equity Recession Animals guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (1 d ago)

• Private equity firm CVC considers Royal ... Private equity firm CVC considers Royal Mail bid
01/18/2009
Union leaders and MPs have reacted angrily after it emerged that the private equity group CVC is considering a bid for a minority stake in Royal Mail. CVC, which has stakes in three European postal services, is at the early stages of working on a bid. Its other investments have included the Debenhams store chain and Formula One sports rights. The potential involvement of a private equity company has intensified anger felt by trade unions and the growing ranks of MPs opposed to the plans. "This move, by a private equity company, shows how dangerous the part-privatisation of the Royal Mail is," said Billy Hayes, the general secretary of the Communications Workers Union. "We are opening the British public mail service to the dangers of profiteers. "Around the world there are a number of private equity firms who have stakes in postal services ... they're not interested in public service but in the biggest possible profit." Geraldine Smith, the Labour MP for Morecambe and Lunesdale, who is leading the campaign against the part-privatisation, warned that private equity involvement would make Royal Mail's services more expensive. "Private equity companies are just looking for a fast return on their money and the only way they can do that is through higher prices and postage." She said the fact that bidders were emerging suggested Royal Mail did not need outside help. "It's pretty telling how quick off the mark interest is coming once the government says it's a possibility. That doesn't happen if it's a business that's in such dire straits." CVC could team up with TNT, the Dutch group that has already expressed an interest in the plans for part-privatisation, announced by the business secretary, Lord Mandelson. But the company may prefer to go it alone, having just completed raising ¤11bn (£9.9bn) to fund new European deals. CVC's chairman, Michael Smith, has said there is enough money in place to make investments without needing debt financing from banks. Mandelson's scheme to bring in private investors to the Royal Mail has been hugely controversial. An early day motion put down by Smith last week, has already attracted more than 90 signatures, while Jim McGovern, a ministerial aide in Mandelson's department, has resigned over the plans. Last month, the government backed the findings of a report by the former Ofcom deputy chairman, Richard Hooper, that Royal Mail should forge "strategic minority partnership" with a private company as part of a range of measures to safeguard its future, though it should remain in public ownership. Aside from TNT, bidders for the Royal Mail stake could include the parcel courier DHL, part of Deutsche Post. CVC's experience in the European postal market dates back to 2005, when it bought a 22% stake in Post Danmark from the Danish government. It later teamed up with Post Danmark to acquire half of the Belgian post office. Last year Post Danmark was merged with the Swedish post office, Posten, giving CVC a minority stake in the new combined company based in Stockholm. A spokesman for CVC declined to comment. Postal service Private equity guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (1 d ago)

• Mixed results on business diversity Mixed results on business diversity
01/19/2009
Around the turn of the millennium there was a big push at corporations to increase diversity. How far have we come in bringing diversity to the workplace? Bob Moon speaks with diversity consultant Steve Robbins. (21 h ago)

• China cuts tax to rev up small car sales China cuts tax to rev up small car sales
01/19/2009
In an effort to boost sagging sales, China is cutting the tax on little cars. The move has Detroit's Big 3 paying close attention because the Chinese buy brands from around the world. Scott Tong reports. (21 h ago)

• Obama must manage big expectations Obama must manage big expectations
01/19/2009
Many people have high hopes that President-elect Obama will be able to fix our nation's biggest problems. Bob Moon speaks with behavioral economist Dan Ariely about how to manage those expectations. (21 h ago)

• Some Europeans doubtful about Obama Some Europeans doubtful about Obama
01/19/2009
Since the presidential election, Europe has been caught up in Obama mania. Many Europeans hope he will be able to turn around the global financial crisis. But, there are doubters. Stephen Beard reports. (21 h ago)

• Solar incentive opens energy window Solar incentive opens energy window
01/19/2009
Financing green projects can be expensive, so cities are rethinking the economic model to fund renewable energy. A pilot project in Berkeley, Calif., will use city bonds to pay for the costs of installing solar panels, with money being recouped later through a surcharge on property taxes. Sam Eaton reports. (21 h ago)

• Experiment to get best stimulus results Experiment to get best stimulus results
01/19/2009
Lawmakers are still debating President-elect Obama's stimulus package and what will work best to boost our economy. Commentator Len Burman says "experimenting" by assigning different "treatments" to different states will help get the best results from the stimulus and maybe even help in the future. (21 h ago)

• Don't steal that presidential seal Don't steal that presidential seal
01/19/2009
It seems merchandise featuring President-elect Obama is being sold everywhere with the inauguration approaching. But shirts and buttons that feature the presidential seal are illegal under federal law. Nancy Marshall Genzer reports. (21 h ago)

• For the Brave, the Moment Is Now For the Brave, the Moment Is Now
01/19/2009
Spurred by falling real estate prices and low mortgage rates, first-time buyers are cracking open the piggy bank earlier than planned. Traffic at open houses has stepped up. (16 h ago)

• Mortgages: Loan Fraud Seen on the Rise Mortgages: Loan Fraud Seen on the Rise
01/19/2009
Occurrences of fraud among loan officers, brokers and other industry professionals actually outpaced 2007 levels by 45 percent in the second quarter of 2008. (21 h ago)

• Economic View: How About a Stimulus for ... Economic View: How About a Stimulus for Financial Advice?
01/19/2009
The government should start a major program to subsidize personal financial advice for everyone. (21 h ago)

• Patient Money: Health Care You Can’t Aff... Patient Money: Health Care You Can’t Afford Not to Afford
01/19/2009
As the recession intensifies, more Americans are delaying doctor visits and medical treatments. What can you safely postpone, and what must be treated now? (21 h ago)

• Students Covering Bigger Share of Costs ... Students Covering Bigger Share of Costs of College
01/18/2009
College students are covering more of what it costs to educate them, even as colleges are spending less on them. (1 d ago)

• Geithner’s Mistake on Tax Is Common, Exp... Geithner’s Mistake on Tax Is Common, Experts Say
01/17/2009
Timothy F. Geithner and his accountant appear to have made an honest mistake concerning a confusing part of tax law, according to several tax experts. (3 d ago)

• US economy, Pearl Harbor and Barack Obam... US economy, Pearl Harbor and Barack Obama
01/20/2009
On the eve of Barack Obama's inauguration, Warren Buffett has come out saying that the US is in the grip of an "economic Pearl Harbor", not as bad as World War Two or the Great... (1 h ago)

• Oil price futures Oil price futures
01/20/2009
Don't believe oil prices, they're set to soar.At the moment, they have fallen below $35 a barrel in the face of weakening consumer demand and corporate earnings heading down the toilet.But... (1 h ago)

• Lessons from Siemens Lessons from Siemens
01/19/2009
Siemens is upbeat about its chances of getting its insurers to pay a big chunk of the $1.3 billion it paid to settle corruption probes in the United States and Germany. And that's a worry because... (10 h ago)

• How to make a killing in the crisis How to make a killing in the crisis
01/19/2009
It sounds counter-intuitive but there is money to be made out of debt. If you have the stomach for risk.One of the most fascinating trends of late has been the booming corporate bond market .... (11 h ago)

• Asian markets tumble on banking woes Asian markets tumble on banking woes
01/20/2009
Asian stocks tumbled, as a fresh round of jitters about the health of major banks eclipsed any optimism ahead of Barack Obama's inauguration as U.S. president. European markets opened higher. (4 h ago)

• U.K. launches second bank rescue plan U.K. launches second bank rescue plan
01/19/2009
Britain threw its troubled banks another multi-billion dollar lifeline by allowing them to insure against steep losses and guaranteeing their debt to stop the credit crunch pushing the economy into a deep slump. (20 h ago)

• Slump casts pall over Chinese New Year Slump casts pall over Chinese New Year
01/18/2009
In China, where many businesses count on a New Years shopping boom for a big share of annual sales, the global slowdown hurts and could further depress its falling growth rate. (2 d ago)

• Report: Mexican raises stake in N.Y. Tim... Report: Mexican raises stake in N.Y. Times
01/19/2009
The New York Times Co. is in talks with billionaire Carlos Slim Helu about a possible investment of hundreds of millions of dollars that could help the newspaper publisher. (12 h ago)

• At $3 million, Super Bowl ad time is ...... At $3 million, Super Bowl ad time is ... cheap?
01/19/2009
At a reported $3 million per spot, ad time for the upcoming Super Bowl XLIII is the most expensive ever. But by some measures, it makes sense, and might even be a bargain. (23 h ago)

• Report: Microsoft CEO met Yahoo chairman Report: Microsoft CEO met Yahoo chairman
01/17/2009
Microsoft's chief executive, Steve Ballmer, met with Yahoo chairman Roy Bostock in New York this week, according to a report in The New York Times. (2 d ago)

• Founder's Grandson Named New Toyota Boss Founder's Grandson Named New Toyota Boss
01/20/2009
Akio Toyoda, the grandson of Toyota's founder, was named president of the Japanese automaker Tuesday as it struggles to ride out a slump in the global market that dragged annual sales lower for the first time in a decade. (4 h ago)

• NY Times Looks To Billionaire For Bailou... NY Times Looks To Billionaire For Bailout
01/19/2009
The New York Times Co. is in talks with Mexican billionaire Carlos Slim Helu about a possible investment of hundreds of millions of dollars that could help the newspaper publisher meet debt payments, according to published reports. (1 d ago)

• U.K. Tries To Bail Out Banks, Again U.K. Tries To Bail Out Banks, Again
01/19/2009
Britain has announced a new bank bailout to boost lending into a struggling economy and protect banks from the bad assets sinking their balance sheets - an admission that an earlier sweeping rescue plan didn't do the job. (1 d ago)

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This is abundant, look forward to looking into ea...
John gogs :: 12/28/2009

Who knows where to download XRumer 5.0 Palladium?...
CocoChanels :: 07/03/2009

Hi, my friends!! I want to get program XRumer 5.0 ...
MagicOPromotion :: 05/03/2009

Where is this money coming from except from the mo...
carl allen :: 04/11/2009

out of control
staystrong :: 02/23/2009

The poor thing! Once so high and mighty and far ab...
leaf :: 02/22/2009

It always amazed me how eagerly people flocked to ...
David :: 12/23/2008

• FAS 157: Is it Killing Investment? FAS 157: Is it Killing Investment?
01/19/2009
On November 15th a new accounting rule went into effect. It's called FAS 157. It regulates how investments are valued by mandating that they be valued "fairly." And the whining and... (13 h ago)

• A Basic How To on Business Plans A Basic How To on Business Plans
01/19/2009
I came across a excellent article at Entrepreneur University today that deserves a shout out. It's designed to answer the question, "What should a business plan look like?" The feature... (21 h ago)

• Due Diligence in the post-Satyam World Due Diligence in the post-Satyam World
01/19/2009
Photo courtesy of iStockphoto, Image# 7835377 In a recent article published in InformationWeek, Bob Evans offers 10 tips on outsourcing. None of these are new - in fact, they represent perennial... (1 d ago)

• Growing Your Business in the Service Sec... Growing Your Business in the Service Sector
01/19/2009
Matt Rodela over at Small Business Trends had an article recently on strategies for growing your service business.Now is not the time for business as usual. It's time to get creative and think... (12 h ago)

• Entrepreneurial Edge: Businesses Find a ... Entrepreneurial Edge: Businesses Find a Silver Lining in Inland California’s Downturn
01/18/2009
Universities and nonprofits in San Bernardino and Riverside Counties are extending support to small businesses. (1 d ago)

• Banks' Moves Drag Down Stocks Banks' Moves Drag Down Stocks
01/17/2009
U.S. stocks fell last week, led by financial companies after Citigroup said it would split in two to stanch losses and after Bank of America required emergency federal funds for its takeover of Merrill Lynch. (2 d ago)

• Giant Online Mall in the Works for China... Giant Online Mall in the Works for China Market
01/19/2009
Asiajin had an interesting story a couple of weeks ago about the online mall that 100 Japanese companies are setting up for shoppers in China.According to the Nikkei, major electronics retailer... (12 h ago)

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