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92e002056965bbf4486eb638cda932b0 | https://www.reuters.com/article/rbssConsumerFinancialServices/idUSN2619086820091026 | Freeze U.S. credit card rates, says Sen. Dodd | Freeze U.S. credit card rates, says Sen. Dodd
By Reuters Staff2 Min Read
WASHINGTON, Oct 26 (Reuters) - Senate Banking Committee Chairman Christopher Dodd said on Monday he was introducing legislation calling for a temporary freeze on credit card interest rates on existing balances.
The push for a freeze comes as Democratic lawmakers say some credit card issuers have jacked up fees to try to maximize their revenues before new rules kick in.
Dodd said his bill would immediately freeze rates on existing balances until the remaining provisions of new credit card industry regulations come into effect, which would be in February 2010 at the latest and possibly earlier.
“We worked long and hard to enact the safeguards included in” the new rules, Dodd said in a statement. “And no sooner had it been signed into law, but credit card companies were looking for ways to get around the protections this Congress and the American people demanded.”
Dodd’s bill arrived just days before an expected vote by the House of Representatives, possibly on Thursday, on a bill to advance by almost three months to Dec. 1 the effective date for strict new rules on credit card fees and interest rates.
The bill to accelerate the rules' implementation was approved on Thursday by the House Financial Services Committee in a swipe at major card issuers such as Bank of America BAC.N, Citigroup C.N and American Express AXP.N.
The new rules were approved by Congress and signed into law in May by President Barack Obama.
Reporting by Kevin Drawbaugh; Editing by Andrew HayOur Standards: The Thomson Reuters Trust Principles.
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2de9534c4280e023bfb460725a98255e | https://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idINL076703820080507?edition-redirect=in | Tyre firm Nokian Renkaat Q1 beats forecasts | Tyre firm Nokian Renkaat Q1 beats forecasts
By Reuters Staff2 Min Read
HELSINKI (Reuters) - Finnish tyre maker Nokian Renkaat NRE1V.HE on Wednesday reported better-than-expected profits and sales for the January-March quarter, helped by strong demand for its products in Russia and eastern Europe.
Nokian Renkaat’s first-quarter operating profit rose 39 percent from a year earlier to 54.4 million euros ($84.3 million), beating all 11 analysts forecasts in a Reuters poll, which ranged from 42 million to 53 million.
“The first quarter gave a flying start for 2008: sales increased strongly in the company’s core markets, and operating profit saw a clear improvement over the previous year,” Chief Executive Kim Gran said in a statement.
First-quarter sales grew 23 percent to 246.3 million euros, beating the average forecast of 238 million in the poll, but within the range of estimates.
Nokian Renkaat said it was eyeing strong growth in 2008 sales and better results than a year earlier. It added growth in Russia and higher pre-sales of tyres had diminished seasonality for Nokian tyre demand.
Reporting by Tarmo Virki; Editing by Quentin BryarOur Standards: The Thomson Reuters Trust Principles.
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049a4d4d5245392f11b5305130214c73 | https://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idINN0942108820090809?edition-redirect=in | UPDATE 1-'G.I. Joe' movie leads worldwide invasion | UPDATE 1-'G.I. Joe' movie leads worldwide invasion
By Reuters Staff5 Min Read
* “G.I. Joe” earns $100 million worldwide
* Costly action film leads N.America with $56.2 million
* “Julie & Julia” cooks up $20.1 million
(new throughout, recasts lead; adds quotes, analysis)
LOS ANGELES, Aug 9 (Reuters) - A new action movie based on the “G.I. Joe” line of toy soldiers crushed enemy forces at the worldwide box office during the weekend, ending the three-week reign of the sixth “Harry Potter” fantasy.
“G.I. Joe: The Rise of Cobra” sold about $100.3 million worth of tickets, distributor Paramount Pictures said on Sunday.
The three-day take of $56.2 million from the United States and Canada ranks as the fourth-highest August opening ever, and comes after the $175 million effects extravaganza had been besieged by bad buzz for months.
The foreign component of $44.1 million -- from 35 markets comprising 75 percent of international sales -- was led by South Korea ($5.6 million). The film opened at No. 1 in two countries not exactly favorable to American militarism, China ($4.8 million) and Russia ($4.6 million).
"Harry Potter and the Half-Blood Prince" earned $31 million worldwide, taking its total to $816 million. The North American total of $274 million was bolstered by a fourth-place $8.9 million weekend. The film was released by Warner Bros. Pictures, a unit of Time Warner Inc TWX.N.
Besides “G.I. Joe,” other new entries in North America included Columbia Pictures’ Meryl Streep culinary offering “Julie & Julia” at No. 2 with a tasty $20.1 million, and indie producer Relativity Media’s horror-thriller “A Perfect Getaway” at No. 7 with just $5.8 million.
Last weekend's North American champion, the Adam Sandler comedy "Funny People," slid to No. 5 with $7.9 million, taking the 10-day total for the $75 million comedy to a disappointing $40.4 million. The film was released by Universal Pictures, a unit of General Electric Co GE.N.
“G.I. Joe” stars Channing Tatum and Marlon Wayans as two young soldiers recruited by the international G.I. Joe military force to help save the world. It was directed by Stephen Sommers of “The Mummy” fame.
BAD BUZZ
While based on the venerable Hasbro Inc HAS.N action figures, the film tips its hat to the multilateral series of dolls relaunched in the 1980s rather than the American-oriented military heroes coveted by boys in the 1960s and 1970s. (G.I. is a generic term for U.S. soldiers.)
Given the wide awareness of the brand, fans were underwhelmed by a trailer that premiered in February during the Super Bowl football championship, the most-watched television event of the year in the United States.
Paramount opted not to screen the movie in advance for critics, a gambit often reserved for box office clunkers. In the end, reviews were predictably bad but not as bad as those for such recent releases as “G-Force” and “The Ugly Truth.”
"I think it plays to real people," said Don Harris, executive vice president of distribution at the Viacom Inc VIAb.N-owned studio. "They check their disbelief at the door and have a good time with the movie."
Surveys indicated the film played best in the American heartland -- anywhere “east of Beverly Hills and west of Manhattan island,” Harris said. It also was especially popular with Hispanic and black moviegoers, he said.
Overall, male moviegoers accounted for 60 percent of the audience, with an even split either side of 25 years.
Based on the film’s better-than-expected $22 million opening on Friday, Paramount had forecast a $60 million weekend. But Saturday sales fell more steeply than expected. Harris said he was not troubled by the decline.
The record for an August opening was set in 2007 by “The Bourne Ultimatum” with $69.3 million, while “Rush Hour 2” kicked off with $67.4 million in 2001, and “Signs” with $60 million in 2002. All ended up with more than $220 million.
Columbia Pictures offered some effective counter-programming with “Julie & Julia,” which pulled in older women. Streep plays Julia Child, while Amy Adams stars in a parallel story as a young woman who seeks to replicate the noted TV chef’s culinary exploits.
"We're finding that men love it too," said Rory Bruer, president of worldwide distribution at the Sony Corp 6758.TSNE.N-owned studio.
He expected the $38 million film, which was directed by Nora Ephron (“Sleepless in Seattle”), to simmer in theaters for some time. (Writing and reporting by Dean Goodman; Editing by Bill Trott)
Our Standards: The Thomson Reuters Trust Principles.
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e166d2226bb987687742ca6ab7095184 | https://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idINN2854955120090129?edition-redirect=in | Chile Cencosud delays $500 million mall due crisis | Chile Cencosud delays $500 million mall due crisis
By Reuters Staff0 Min Read
SANTIAGO, Jan 28 (Reuters) - Chile's Cencosud CEN.SN, one of Latin America's largest retailers, said on Wednesday it would gradually delay construction work on a $500 million mega-mall in the capital, Santiago, because of the global financial crisis.
Cencosud said in a statement it would resume its Costanera Center project, which would house major department stores and include a 300 meter high skyscraper, once the financial uncertainty cleared.
"For now, it makes no sense to keep construction going at the current pace if we are not able to rent out the installations of Costanera Center," Daniel Rodriguez, a top Cencosud executive, said in a statement.
"In the current economic context, the reasonable and responsible thing to do ... is to focus our investment plan on those projects which allow us to obtain immediate or guaranteed returns."
Cencosud's move comes as a number of Chilean companies, including several in the mining sector, have delayed investment projects because of the impact of the global crisis.
President Michelle Bachelet unveiled a $4 billion anti-crisis fiscal stimulus plan this month that the government hopes will fend off recession, help the economy grow between 2.0 percent and 3.0 percent this year and safeguard and create jobs. (Reporting by Antonio de la Jara and Simon Gardner; Editing by Andre Grenon)
Our Standards: The Thomson Reuters Trust Principles.
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3fed8ef55bb4621436dd295447169941 | https://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idINTOE63001F20100401?edition-redirect=in | Xinyi Glass Holdings shares suspended -HKEx | Xinyi Glass Holdings shares suspended -HKEx
By Reuters Staff1 Min Read
HONG KONG, April 1 (Reuters) - Trading in shares of Xinyi Glass Holdings Ltd 0868.HK was suspended on Thursday, the Hong Kong exchange said.
No further details were immediately available. (Reporting by Jimmy Tsim; Editing by Jonathan Hopfner)
Our Standards: The Thomson Reuters Trust Principles.
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7f3a9ce7533cc2226187c77b02c6db14 | https://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUKBNG26101120080708?edition-redirect=uk | UPDATE 1-Syntax-Brillian files for Chapter 11 bankruptcy | UPDATE 1-Syntax-Brillian files for Chapter 11 bankruptcy
By Pratish Narayanan3 Min Read
(Adds details from court documents, background)
BANGALORE, July 8 (Reuters) - U.S. television set and digital camera maker Syntax-Brillian Corp BRLC.O filed for Chapter 11 bankruptcy protection on Monday after a year of weak sales, litigation, executive changes, accounting problems and liquidity concerns.
The seller of the Olevia brand of LCD TVs, formed with the November 30, 2005 merger of Syntax Groups and Brillian Corp, sought protection from creditors with the U.S. bankruptcy court in Delaware, court papers show.
Tempe, Arizona-based Syntax-Brillian also entered into a deal to sell certain of its assets to a newly created company called Olevia International Group LLC, which has agreed to assume $60 million of its secured debt.
The company, which is negotiating with lenders to secure financing, has stopped operations in Tempe and is left with about eight employees there, including its finance chief, general counsel and finance staff.
Court papers listed home appliance maker Taiwan Kolin Co 1606.TW and affiliates as the only entity owning more than 5 percent of Syntax-Brillian's voting shares.
Among its creditors are Singapore-based WesTech Electronics Ltd WTEH.SI, Taiwan's Compal Electronics 2324.TW, cable sports network ESPN Inc and Taiwan's Digimedia Technology Co.
Syntax-Brillian’s total assets were about $175.7 million, against total debts of about $259.4 million, as of the beginning of June this year, court papers showed.
The company said its business had eroded in the face of defaults under a lending agreement, a U.S. Securities and Exchange Commission enquiry and the loss of confidence of suppliers, vendors and employees.
Syntax-Brillian, whose shares have crashed more than 91 percent over the past year, tried to raise capital, refinance debt and restructure its business -- all of which proved impossible, according to court papers.
The company said on Tuesday Michael Garnreiter is the sole remaining member of its board of directors. Gregory Rayburn, who became interim CEO after the company fired James Ching Hua Li earlier this month, will remain in the position.
The Chapter 11 filing includes all of the company’s units except digital camera unit Vivitar, which it plans to sell.
Shares of the company closed at 46 cents on Monday on Nasdaq. (Editing by Rory Channing and Sue Thomas)
Our Standards: The Thomson Reuters Trust Principles.
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07b5effdcb63c3b4bc459873ea6fb232 | https://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUKLF17129320090417?edition-redirect=uk | FEATURE African beer keeps head as other markets go flat | FEATURE African beer keeps head as other markets go flat
By Alistair Thomson, Joe Bavier7 Min Read
* Continent offers expansion prospects despite slowdown
* Growth still set to outstrip other regions
* Brewers substitute local ingredients for imported barley
DAKAR/KINSHASA, April 17 (Reuters) - As the sun sets over the Congo River, drinkers trickle into Kinshasa’s “Staff Franc Congolais” bar, testament to the resilience of Africa’s thirst for beer even in difficult places and tough times.
“I get by. The Congolese drink every day. It’s a distraction -- there’s no world crisis as far as beer is concerned,” says a co-owner, known as “Franc Congolais” after the local currency.
He adopted the nickname when rebels seized the vast country, formerly Zaire, in 1997 and changed its name back to the Democratic Republic of Congo.
Its many violent upheavals habitually involve looting, although residents say breweries are mostly left untouched.
“If I can sell 120 bottles at 200 francs ($0.25) profit each in a day, that’s enough for me,” Franc Congolais said.
Big brewers operating in Africa may be slower to dismiss the threat from the global economic crisis that has caused economic havoc in the Democratic Republic of Congo and elsewhere.
Some brewers report a slowdown in sales growth, but they say Africa nevertheless offers rich expansion prospects compared with elsewhere, and even reduced growth on the continent will outstrip that of other regions this year.
“For sure we’re seeing an impact, but still Africa is in growth, is providing more growth than many other parts of the world, and that’s the environment where we’re operating,” said Nick Blazquez, Diageo’s managing director for Africa.
The International Monetary Fund has cut its 2009 economic growth forecast for sub-Saharan Africa to 2.2 percent from 5.1 percent six months ago, although that is still well ahead of the 3-percent-plus contraction expected in advanced economies.
Lower commodity export revenues and a slowdown in remittance income from workers overseas are squeezing disposable incomes and currency fluctuations are hurting some breweries, which mostly rely heavily on imported materials.
East African Breweries, Kenya’s leading brewery which is majority-owned by Diageo, is cutting jobs after pre-tax profit growth slowed to 5 percent in the six months to Dec. 31 from 22 percent a year earlier, mainly as a result of high input costs.
HOLDING UP
With beer sales holding up better than in most regions, investments in new capacity in Africa, including those that have been on the cards for years, have taken on new importance.
“We are putting money into Africa based on the assumption there will be growth,” Mark Bowman, Africa managing director of the world’s number two brewer, SABMiller, told Reuters in Johannesburg.
The company is building four new plants in Africa, including Sudan’s sole industrial brewery, and increasing capacity at existing plants to cater for double-digit volume growth across its beer and associated soft drinks businesses.
Nile Breweries, SABMiller’s subsidiary in Uganda, will lose some of its export trade to the new brewery in southern Sudan, but is in the process of doubling its output over several years.
“We haven’t seen any slackening in demand for our local products,” Nile’s Managing Director Nick Jenkinson said in his office, away from the deafening racket of the brewery in Jinja, 80 km (50 miles) from Uganda’s capital, Kampala.
“The situation now is that we can’t supply all the demand in the market,” he said.
Competition for market share is intense. Dutch brewer Heineken and Diageo are building South Africa’s first major non-SABMiller brewery, hoping to boost market share for their high-end Amstel, Heineken and Guinness brands. SABMiller is cutting costs in its home market in preparation.
The global brewers are also in competition across a range of west and central African markets, sometimes in partnership with each other or with the French drinks group Castel, which has a large market share in much of francophone Africa.
Africa is credited with producing some of the earliest brewers in ancient times and Guinness was first shipped to Sierra Leone in the early 19th century. Yet the continent merits barely a footnote in most world beer guides.
Despite Africa’s importance to some brewers -- SABMiller makes almost one-third of its profits there and the continent hosts four of the top 10 markets for Diageo’s flagship Guinness stout -- per capita beer consumption of 9.5 litres a year is the lowest of any region except the mostly Muslim Middle East.
GROWTH POTENTIAL
In March, investment bank Renaissance Capital issued a “buy” recommendation on Diageo’s Guinness Nigeria subsidiary and Heineken’s Nigerian Breweries, noting the capacity for growth in Africa’s most populous country.
“Across the cycle, we see significant opportunities in the Nigerian beer market given relatively low beer per capita consumption of 9.3 litres vs the average of 56 litres across other emerging markets. This is why it is attractive to global brewers,” it said.
Higher consumption of nearer 60 litres per year in wealthier African countries such as South Africa and Gabon demonstrates the potential for growth as average incomes in Africa rise.
Brewers are also moving into the low-cost end of the market, hoping to pick up some of an informal alcohol market which SABMiller reckons could be worth $3 billion a year.
Innovations include substituting local barley, sorghum and cassava for imported barley to make European-style lager more cheaply, as well as more traditional cloudy brews to compete with local artisanal brews at 30 percent or more below the $1 average price of a lager, SABMiller said.
“Most poor Africans are drinking alcohol, but informally made ... the potential for growth in Africa is greater than anywhere else in the world,” said Jenkinson, whose Jinja brewery produces a clear lager called Eagle, made with sorghum.
“In Africa, beer is a very price sensitive commodity.”
In Congo, Franc Congolais’s business partner Pepin Mambote ruefully agrees.
The collapse in prices for the country’s metals exports has driven down the value of the Congolese franc, forcing up the cost of beer made from imported ingredients and pushing more consumers towards artisanal drinks -- and out of his bar.
“Before, people would throw punches just to have a seat. Now look -- there is an empty chair over there. I’m telling you, times are tough,” he said.
“If you are a beer drinker, the beer isn’t expensive. It’s life that’s expensive.” (Additional reporting by Rebecca Harrison in Johannesburg, Jack Kimball in Jinja, Uganda; Editing by David Clarke and Andrew Dobbie)
Our Standards: The Thomson Reuters Trust Principles.
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48bbbc9c946c5366a0cdf37c9d6e3fc8 | https://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUKN0243945420090303?edition-redirect=uk | UPDATE 1-Colombia says troops kill guerrilla commander | UPDATE 1-Colombia says troops kill guerrilla commander
By Reuters Staff4 Min Read
(Adds four soldiers killed, union leader’s arrest)
BOGOTA, March 2 (Reuters) - Colombian troops killed a FARC guerrilla commander accused of ordering extortion and bombings around Bogota, including small blasts at supermarkets and video stores, authorities said on Monday.
The death of Jose de Jesus Guzman, alias “Gaitan”, during weekend combat was the latest strike against the weakened Revolutionary Armed Forces of Colombia, known as the FARC, Latin America’s oldest left-wing insurgency.
Guzman, a 26-year FARC veteran, was recently entrusted with reorganizing the rebels’ urban militias and was a close ally of the top FARC commander Jorge Briceno, alias “Mono Jojoy”, the presidential office said.
Once a peasant army of 17,000 controlling large portions of Colombia, the FARC have been reduced to between 7,000 and 10,000 combatants and forced back into remote jungles and mountains to evade military assaults and bombardments.
The FARC lost three top commanders last year, suffered from desertions and military setbacks. A surprise army operation in July rescued 15 of its key political hostages, including French-Colombian Ingrid Betancourt and three Americans.
Ten members of Guzman’s “Antonio Narino” guerrilla unit were killed during combat on Friday in Cundinamarca province near Bogota and one of the group’s key kidnapping operators was captured by the army, the military says.
Officials blamed a FARC extortion network for a recent bombing on a Bogota Blockbuster BBI.N store that killed two people. Blockbuster video stores and the Carrefour CARR.PA supermarket chain have been hit with small explosions or firebombs police link to extortion.
A recent security report said the FARC could try to increase urban attacks and extortion to pressure the government while trying to regain political space with hostage releases.
Despite their defeats, the guerrillas remain a powerful force in some rural areas. The army said four soldiers were killed on Monday in an attack by FARC fighters in a mountainous part of the Cauca region, a key drug trafficking route.
UNIONIST
During last week’s combat in Cundinamarca, troops also detained a trade union leader in the rebel camp, the government said on Monday, demanding an explanation from the country’s CUT labor federation.
“The trade union movement needs to come out, for the good of the trade union movement ... and clarify the CUT’s position in relation to this situation,” Social Protection Minister Diego Palacio said. “What was this man doing there?”
He said the arrested union leader had been assigned personal bodyguards and an armored car as part of a government protection program for unionists -- frequent targets in Colombia’s four-decade-old armed conflict.
The incident comes as conservative President Alvaro Uribe seeks to revive a U.S. free-trade deal that was blocked by U.S. Democrats because of concern over violence against union leaders in the South American country.
Colombian labor leaders oppose the trade pact, saying it does not do enough to guarantee their rights and would only benefit a wealthy elite. (Reporting by Patrick Markey and Luis Jaime Acosta, writing by Helen Popper, editing by Anthony Boadle)
Our Standards: The Thomson Reuters Trust Principles.
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4df0a84a9532690ec8f346297a1a7283 | https://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSBNG7174220090804?sp=true | UPDATE 3-'Iron Man' helps Marvel soar past Wall Street | UPDATE 3-'Iron Man' helps Marvel soar past Wall Street
By 4 Min Read
* Q2 EPS $0.37 beats estimates by 6 cents
* Q2 rev beats estimates
* Q2 publishing margins down
* Raises low end of full-year profit, sales forecasts
* Shares touch all-time high of $41.74 (Adds analyst comment, conference call details; updates share movement)
By S. John Tilak
BANGALORE, Aug 4 (Reuters) - Marvel Entertainment Inc MVL.N posted a quarterly profit that beat market estimates as it benefited from DVD and pay TV sales of its blockbuster self-produced movie "Iron Man," sending its shares to an all-time high.
The company, which released “Iron Man” and “The Incredible Hulk” in 2008, also raised the low end of its earnings outlook for the year.
“I think it’s a good, solid, upside quarter,” Wedbush Morgan Securities analyst Michael Pachter said. “There’s nothing in there that’s really a shock.”
“Everybody knows the company has room to beat numbers and they’re proving that each quarter.”
Marvel beat profit estimates for the eighth straight quarter.
Second-quarter net income attributable to the company fell to $29.0 million, or 37 cents a share, from $46.7 million, or 59 cents a share, a year earlier. Revenue fell to $116.3 million. [ID:nWNBB8421] Analysts expected earnings of 31 cents a share, excluding exceptional items, on revenue of $106 million, according to Reuters Estimates.
However, second-quarter publishing margins were lower than last year, reflecting less-high-margin advertising income, Marvel said in a conference call with analysts.
Shares of Marvel pared some of their early gains to trade down 17 cents at $40.24.
Pay TV revenue from “Hulk” is expected in the second half of 2009, the company said.
Despite the two films last year, 2009 is a lull period for Marvel as it is not releasing any films of its own this year.
The strong results “portend very substantial operating results when the company has additional film and theatrical release with ‘Iron Man 2,’” Hudson Square Research analyst Marla Backer said.
Marvel has completed principal photography for “Iron Man 2” -- scheduled for 2010 -- whose star-studded cast includes Robert Downey Jr, Scarlett Johansson, Gwyneth Paltrow, Samuel Jackson and Mickey Rourke.
DOES 2009 MATTER?
But given its outperformance in the first two quarters, people will question why it did not raise its outlook and not just narrow it, Backer said.
In the call, the company cited the state of the economy and early recognition of some items due for the second half as reasons for not increasing the high-end of its outlook.
“I don’t think it matters if they make $1.40 or $1.50. They don’t have any movies (this year),” Wedbush’s Pachter said.
For the year, Marvel forecast earnings of $1.25 a share to $1.35 a share, on revenue of $465 million to $485 million. It had earlier forecast earnings of $1.10 to $1.35 a share, on revenue of $450 million to $485 million.
Analysts were looking for earnings of $1.33 a share, excluding items, on revenue of $482.5 million.
Investors are looking to see if Marvel -- whose profits have historically been spun around its most well-known character, Spider-Man -- can monetize and succeed with its non-Spider-Man brands.
Marvel will release an "Iron Man" sequel in 2010. "Thor" and the first "Avenger" movie, as well as Sony-produced 6758.TSNE.N "Spider-Man 4" are slated for a 2011 release. The "Avengers" sequel will follow in 2012.
And News Corp-owned NWSA.O 20th Century Fox's "X-Men Origins: Wolverine," a movie based on Marvel characters, hit theaters earlier this year.
Earlier in the session, shares of Marvel -- which has a portfolio of over 5000 characters -- rose to an all-time high of $41.74 Tuesday on the New York Stock Exchange.
The stock has gained 33 percent in the last three months. (Editing by Aradhana Aravindan)
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fe3021b961d2f4962326838067a72304 | https://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSFWN0ZV07720150716 | BRIEF-UAZ announces delisting of shares from Moscow Exchange | BRIEF-UAZ announces delisting of shares from Moscow Exchange
By Reuters Staff1 Min Read
July 16 (Reuters) - UAZ :
* Says its shares are delisted from Moscow Exchange as of July 8 Source text: bit.ly/1e1Z3SC
Further company coverage: (Gdynia Newsroom)
Our Standards: The Thomson Reuters Trust Principles.
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955e4091b929a1c01f7633ffddeb1f04 | https://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSL0932139720080109 | Daimler, ADM, Bayer to test Jatropha for biodiesel | Daimler, ADM, Bayer to test Jatropha for biodiesel
By Reuters Staff2 Min Read
FRANKFURT, Jan 9 (Reuters) - German carmaker Daimler AG DAIGn.DE has teamed up with Archer Daniels Midland ADM.N and Bayer CropScience BAYG.DE to explore tropical plant Jatropha as a biodiesel fuel, Daimler said.
“Biodiesel derived from Jatropha nut kernels has properties similar to those of biofuels obtained from oilseed rapes. It is also characterised by a positive CO2 balance and can thus contribute to protecting the climate,” the companies said in a statement.
The partners aim to develop production and quality standards for Jatropha-based biofuel. ADM runs several biodiesel refineries worldwide, while Bayer CropScience plans to develop herbicides, insecticides and fungicides for Jatropha plants.
Daimler has already completed a five-year project which demonstrated that Jatropha can be used to make biodiesel. It will continue to explore the interactions between the fuel and engines.
Jatropha, a wild plant, has never been professionally cultivated, the statement said, suggesting the plant could be grown on 30 million hectares of land, especially in South America, Africa and Asia.
“Since Jatropha can be cultivated on barren land, it does not compete for land that is being used for food production, and thus provides farmers with an additional source of income,” it added. (Reporting by Michael Shields; editing by Rory Channing)
Our Standards: The Thomson Reuters Trust Principles.
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5f59212919fc2cba6d9269400e468750 | https://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSL1490716820080514 | UPDATE 2-New Britain doubles profit from palm oil | UPDATE 2-New Britain doubles profit from palm oil
By Hsu Chuang Khoo4 Min Read
(Adds director, analyst comments, background, share price)
LONDON, May 14 (Reuters) - New Britain Palm Oil NBPO.L doubled quarterly profits and underlined plans to double acreage over the next seven years in anticipation of strong palm oil prices, the Australasia-focused planter said on Wednesday.
First-quarter pretax profits for the period to May 13 doubled to $37 million as sales rose 63 percent to $83 million, Papua New Guinea’s largest palm oil producer said.
New Britain has doubled in value since its December listing giving it a current market value of 790 million pounds ($1.54 billion). Its performance compares with a 3.7 percent decline in the FTSE All Share .FTAS index in 2008.
With no debt, about $50 million in cash and a share price that’s a shade off its March peak of 600p, the company is on track to double acreage by 2015, Executive Director Alan Chaytor told Reuters.
New Britain has about 40,000 hectares of plantation estates on Papua New Guinea and the Solomon Islands -- a size it can easily double in surrounding areas, Chaytor said.
Additional estates could come from acquisitions in Malaysia and Indonesia, the world’s two top producers of the edible oil, he said, adding that palm oil prices are expected to stay strong in the medium to long-term.
“The supply, demand factors still remain,” Chaytor said. “The world is still hungry and food demand is still very strong from the emerging economies. We see quite a few years of impressive pricing.”
MERGERS AND ACQUISITIONS
New Britain will consider “opportunistic” mergers and acquisitions to grow, the firm has said.
But even doubling its size still makes it a minnow among global players like Singapore's Wilmar International WLIL.SI, which has 570,000 hectares and Malaysia's Sime Darby SIME.KL, with 525,000 hectares.
New Britain said it averaged $954 per tonne for crude palm oil in the first quarter and at the end of April had about 99,000 tonnes of oil sold or priced forward for 2008 at an average price of $1,020 per tonne.
“New Britain’s trading statement reads very positively and we can expect another terrific year,” said Ambrian analyst Richard Lucas.
“Unlike the other palm oil producers quoted in the UK the company has no export taxes to pay, so on the majority of production not sold forward it will benefit from the entire palm oil price rise.”
The price of palm oil, used as a cooking oil and in products ranging from cosmetics to cookies and biofuels, has almost doubled since the start of 2007 on surging demand from the food and fuel sectors.
Shares of New Britain trade at 18 times current-year earnings, more expensive than smaller London rivals Anglo Eastern ANEA.L and MP Evans MPE.L but still cheaper than REA Holdings REAH.L.
“New Britain is set to show the strongest profit growth of the four companies,” Ambrian’s Lucas added.
“The share price has continued to perform well, but with palm oil prices still so strong we think the shares, and indeed the sector, still offer reasonable value.
New Britain, whose shares were up 1.5 percent to 550.5 pence by 1152 GMT, is 51-percent-owned by Kulim Bhd KULM.KL, a Malaysian government-controlled company. (Reporting by Hsu Chuang Khoo; editing by Elaine Hardcastle)
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be7881f98dcc964f6a69b0ca64a17af7 | https://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSL42706220081004 | UPDATE 1-S.Korea finds melamine in China-made Snickers,KitKat | UPDATE 1-S.Korea finds melamine in China-made Snickers,KitKat
By Reuters Staff2 Min Read
(Adds statement from Nestle, Mars)
SEOUL, Oct 4 (Reuters) - South Korea's food watchdog has ordered China-manufactured snacks from Nestle SA NESN.VX and Mars Inc to be taken off shelves after detecting melamine in their samples, it said on Saturday.
The Korea Food and Drug Administration (KFDA) said 2.38 parts per million (ppm) and 1.78 ppm of the substance were found in M&M’s milk chocolate snack and Snickers peanut Fun Size, both produced by Mars and manufactured in China.
“We are urgently recalling the products due to melamine detection,” KFDA said in a statement.
Mars said it was temporarily withdrawing the products from the Korean market because it was legally obliged to do so and that the melamine levels announced by the KFDA did not pose a health risk.
Kit Kat bars from Nestle were also found carrying 2.89 ppm of melamine, bringing the total number of melamine-detected items to 10 in Seoul.
Nestle said the KFDA asked it to withdraw one batch of mini Kit Kat made in China from the market, after their tests detected minute traces of melamine in a single batch out of eight Nestle confectionery items tested. No melamine was detected in the other seven products, the company said.
“The company immediately complied with the authorities’ request, even though this product is absolutely safe by recognized international standards,” Nestle said in a statement.
“South Korea has no regulations on maximum levels of melamine in food, and the conditions under which the South Korean authorities conducted their tests are unclear,” it added. Melamine, widely used in kitchen utensils, can pose serious health risks if consumed in large quantities. At least four children in China died after drinking tainted infant milk formula last month.
KFDA said it is currently examining 428 processed products manufactured in China. It had completed checks on 288 items as of Saturday. (Reporting by Angela Moon; Additional reporting by Sam Cage in Zurich; Editing by Louise Ireland and Ruth Pitchford)
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36f3ecbeda4d25ab894db2d1f7c3e41d | https://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSL812308620091008 | UPDATE 1-Russia to ban incandescent light bulbs from 2014 | UPDATE 1-Russia to ban incandescent light bulbs from 2014
By 3 Min Read
* Three-step plan to phase out standard bulbs
* Ban on 100-watt bulbs from 2011, 70-watt from 2013
* Designed to save energy
* Mirrors European Union plan
(Adds details, background)
By Darya Korsunskaya
MOSCOW, Oct 8 (Reuters) - Russia plans to ban the production and sale of all types of incandescent light bulb from Jan. 1, 2014, in a move designed to reduce energy consumption, Economy Minister Elvira Nabiullina said on Thursday.
The ban will be the final stage in Russia’s plan to phase out the standard, high-energy light bulbs and mirrors a move already under way in the European Union to switch toward less energy-intensive lighting sources.
Nabiullina told a news conference making and selling incandescent bulbs with a power rating of more than 100 watts, which account for about 14 percent of all bulbs used in Russia, would be banned from Jan. 1, 2011.
From Jan. 1, 2013, incandescent bulbs with a power rating of more than 75 watts will follow suit.
Traditional incandescent bulbs have changed little since they were first commercially produced by Thomas Edison in 1879. Efficiency improvements reached a limit about 50 years ago.
European households are already switching to more efficient halogen, LED (light-emitting diode) and fluorescent CFL lamps. The European Union plans to phase out incandescent bulbs by 2012.
Industry bodies have said thousands of jobs in the European Union could be lost, mostly in eastern Europe, as the new regulations favour China-based manufacturers of CFL bulbs.
Other major light bulb manufacturers include General Electric Co GE.N, Philips PHG.AS, Toshiba Corp 6502.T and Siemens SIEGn.DE unit Osram.
Light bulbs are also major consumers of tungsten, a hard metal used in the filament.
“As far as the second and third stages are concerned, the targets for 2013 and 2014, these will not be fixed rigidly in law,” senior Kremlin economic aide Arkady Dvorkovich said at the same briefing.
“We need to see how the first stage works ... but I think this timetable is entirely realistic,” Dvorkovich said. (Writing by Robin Paxton, editing by Will Waterman)
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f183636ae4cb4386f77efec3bf0ee4e1 | https://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSL957994520090709 | Italy approves first class-action law | Italy approves first class-action law
By Reuters Staff2 Min Read
ROME, July 9 (Reuters) - Lawmakers on Thursday approved Italy’s first law establishing class-action lawsuits after several delays, a law criticised by several consumer groups as being unworkable.
Under the law, effective from January 2010, consumers teaming up in class actions will have to turn to the judge individually to request compensation, exposing them to possible costs and fines if the suit is rejected.
U.S.-style class-action suits allow individuals to aggregate claims into one lawsuit, giving consumers or shareholders an incentive to pursue compensation even for small sums that otherwise would have been too costly or time-consuming.
The Italian law has no retroactive effect and thus no class actions will be possible related to the collapse of food groups Cirio and Parmalat PLT.MI, airline Alitalia and U.S. bank Lehman Brothers Holdings Inc LEHMQ.PK.
The law is part of the so-called development package promoted by Development Minister Claudio Scajola, which has been before parliament for nearly a year. (Reporting by Giuseppe Fonte; Editing by David Holmes)
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146953b783b74f99a16e3714830b4d1f | https://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSLB6378320081211 | REFILE-Merckle sets Friday deadline in debt talks -sources | REFILE-Merckle sets Friday deadline in debt talks -sources
By Reuters Staff2 Min Read
(Refiles to fix ‘deadline’ typo in headline)
FRANKFURT, Dec 11 (Reuters) - German tycoon Adolf Merckle has given creditor banks a Friday deadline to accept his conditions for a deal his family needs to escape a liquidity crunch, sources familiar with the matter said on Thursday.
“If not, he could put his VEM investment company into insolvency,” one banker involved in the process said.
“Merckle is doing his utmost to get the banks to move,” another banker said.
The move marks an escalation of debt talks with around 30 banks that have continued even after a payment moratorium expired last week. Merckle on Monday presented a new offer that he wants banks to adopt as the basis for a new financing deal.
He needs around 600 million to 1 billion euros ($1.3 billion) in fresh liquidity, sources have told Reuters.
The Merckle family controls generic drugs maker Ratiopharm, construction materials group HeidelbergCement HEIG.DE and drug wholesaler Phoenix.
VEM alone has a 25.5 percent stake in HeidelbergCement, whose shares were down 2.6 percent at 1125 GMT.
Banking sources had earlier told Reuters that Merckle lost 400 million euros through bad bets on carmaker Volkswagen's VOWG.DE shares and other trades.
A VEM spokeswoman declined to comment other than to say talks continued and that Merckle had offered stakes in Ratiopharm, Phoenix and HeidelbergCement as collateral.
Merckle owns around 80 percent in all of HeidelbergCement, which is saddled with debt it took on for acquisitions. (Reporting by Frank Siebelt and Philipp Halstrick, Writing by Michael Shields, editing by Will Waterman)
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be86f8f5f297a7c689e1af2ec158c278 | https://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSLM28892820090522 | UK car production -55.3 pct yy in April-SMMT | UK car production -55.3 pct yy in April-SMMT
By Reuters Staff1 Min Read
LONDON, May 22 (Reuters) - British car production fell 55.3 percent in April versus a year ago, the Society of Motor Manufacturers and Traders said on Friday.
The industry group said 68,258 cars were produced in April. In the year-to-date, there were 251,268 cars produced, 56.2 percent lower than a year earlier.
Commercial vehicle production fell 65.2 percent on the year in April, leaving total vehicle production down 56.5 percent on a year ago.
Our Standards: The Thomson Reuters Trust Principles.
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11a8f93eef98db34e8ff70de60ef5332 | https://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSMAN8833120080317 | UPDATE 1-Manila asks fast-food chains to offer less rice | UPDATE 1-Manila asks fast-food chains to offer less rice
By Carmel Crimmins4 Min Read
(Adds customer comments)
MANILA, March 17 (Reuters) - The Philippine government, struggling to secure rice on world markets at skyrocketing prices, wants people to waste less of the national staple.
“I’m asking fast-food restaurants to give their customers an option to order half a cup of rice because right now if you do a survey of all the fast-food joints you will notice a fraction of them always have excess rice,” Agriculture Secretary Arthur Yap said on Monday.
“People don’t really finish their rice,” he told Reuters in a telephone interview, saying the country would “exercise all efforts” to ensure food security.
The Philippines, one of the world’s biggest importers of rice, is struggling to source supplies of up to 1.8 million tonnes this year as prices climb due to rising demand and tight inventories around the globe.
In a branch of Jollibee JFC.PS, the country's largest fast-food chain, some customers were sceptical about shrinking portions.
“Yeah, I’d order half a cup and then I’d order an extra half,” laughed Ray Tating, an office worker who was tucking into a late lunch of fried chicken and rice.
“Men would order 4 half cups,” she added.
Rice is eaten for breakfast, lunch and dinner in the Philippines and Jollibee as well as international rivals McDonalds MCD.N and KFC YUM.N serve the grain as an accompaniment to burgers and deep-fried chicken.
Fast-food outlets are popular meeting places in the Philippines and it’s not unusual for office employees to have their lunches there every day.
The Philippines is trying to boost local production but rising rice harvests cannot keep pace with population growth of three babies a minute.
In Vietnam, the main supplier to the Philippines, rice prices have risen a fifth since the start of the year and over 60 percent since the same time in 2007.
LEFTOVERS
If Filipinos could be more prudent with their consumption, rice imports could go down by 37 percent to 1.17 million tonnes compared to last year’s import requirement of 1.87 million tonnes, the Department of Agriculture has estimated.
Manila has failed in three consecutive auctions to secure the full volume of rice it needs and is hoping to tap an emergency regional rice fund to help with a potential shortfall.
Thailand has committed to set aside 15,000 tonnes of rice for the Philippines under the East Asia Emergency Rice Reserve and officials have also contacted Indonesia, Malaysia, Japan and South Korea.
Results for last week’s auction for 550,000 tonnes of rice, which only attracted 355,500 tonnes of bids, are expected this week.
Manila is also looking to re-tender to buy up to 100,000 tonnes of rice from the United States after receiving only one bid last week. It is buying the U.S. rice using $65 million in credit guarantees from the U.S. Agriculture Department.
Last month, President Gloria Macapagal Arroyo went outside normal commercial channels to ask the Vietnamese Prime Minister Nguyen Tan Dung to guarantee a supply of up to 1.5 million tonnes of rice, signalling rising nervousness about tight supply.
Hanoi, however, said it could only guarantee 1 million tonnes of rice, which already includes a volume of around 700,000 tonnes which Vietnamese traders had already agreed to supply in auctions in December and January.
Vietnam sold nearly 1.4 million tonnes of rice to the Philippines last year. (Reporting by Carmel Crimmins; Editing by Michael Urquhart)
Our Standards: The Thomson Reuters Trust Principles.
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add0b4ee2e2f8a44647c9b71bd08c77b | https://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSN1036502320080410 | Next round of bids for Weather Channel due in May-sources | Next round of bids for Weather Channel due in May-sources
By Jui Chakravorty Das4 Min Read
NEW YORK, April 10 (Reuters) - A handful of media companiesare gearing up to submit second round bids for the Weather Channel, although a sale of the asset could go for significantly less than the $5 billion its owners originally sought, two sources familiar with the situation told Reuters.
Fewer than five companies are putting together the second-round bids, which will be due in early to mid-May, the sources said. All the bidders are media companies and the buyer, likely to be announced by early June, could pay as low as $3 billion for the U.S. cable network, the sources said.
Separately, another source briefed on the matter said Time Warner Inc TWX.N is in talks to buy the Weather Channel from privately held Landmark Communications. Landmark announced earlier this year it hired JP Morgan and Lehman Brothers to study its options.
Several sources told Reuters last month that General Electric Co's NBC Universal GE.N, CBS Corp CBS.N and Comcast Corp CMCSA.O had examined the financial materials that were assembled for the auction.
It is unclear if any of those companies made a bid for the channel. CBS declined comment and Comcast was not immediately available for comment.
In an interview with Reuters earlier this week, NBC Universal Chief Executive Jeff Zucker declined to comment on whether NBC had made a bid for the Weather Channel but said: “The Weather Channel is a very good opportunity and certainly something we would take a look at.”
While considered a prized asset, auction of the Weather Channel has failed to attract private equity as the credit crunch has restricted financing for major leveraged buyouts, sources have said.
The Weather Channel appeals to media companies looking to enter cable or expand their holdings, since the network’s time-sensitive broadcasts and programming about hot-button issues on the environment have proven to be attractive to audiences and advertisers, industry experts have said.
The Weather Channel produces continuous, 24-hour national, regional and local weather-related programs and is received by more than 96 million U.S. households. It can be seen in more than 97 percent of all cable TV homes nationwide.
The channel’s accompanying Web site attracts about 35 million unique users each month, Landmark said. That puts it among the Web’s 20 most popular sites, and the top destination for online weather, news and information.
Landmark, based in Norfolk, Virginia, declined to comment on the auction process.
Landmark’s interest in selling The Weather Channel comes amid broader shifts in the cable TV landscape. Discovery Communications, which includes, the Discovery Channel, Science Channel and Animal Planet networks, is expected to become a publicly traded company in the second quarter.
Sundance Channel, the joint venture between CBS, NBC Universal and Sundance founder Robert Redford, also is for sale, according to one of the sources.
In addition, IAC/InterActiveCorp IACI.O is spinning off its HSN shopping network as part of a larger restructuring, and E.W. Scripps Co SSP.N plans to split itself into two publicly traded companies, one that will center on its cable channels and another that will include its newspapers and broadcast TV stations. (Additional reporting by Kenneth Li and Paul Thomasch) (Reporting by Jui Chakravorty; 646-223-6033; editing by Carol Bishopric)
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a28f8f4e49a173e52ded6ab02118b164 | https://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSN1054489220090310 | Google employees swap 93 pct of underwater options | Google employees swap 93 pct of underwater options
By Reuters Staff2 Min Read
SAN FRANCISCO, March 10 (Reuters) - U.S. Web search leader Google Inc GOOG.O said on Tuesday its employees exchanged about 93 percent of "underwater" stock options for new options with a lower exercise price.
The exchange, which became a subject of shareholder criticism after it was announced in January, was completed on Monday morning.
According to a regulatory filing, 15,642 Google employees participated in the program, which allowed employees to swap stock options with exercise prices above the stock’s current market price for new options with an exercise price of $308.57 -- Google’s Friday closing price.
Google’s stock has fallen 49 percent from its 52-week high of $602.45. The company has said resetting the price of stock options is a way to motivate and retain employees.
Other companies, including Starbucks Corp SBUX.O, Advanced Micro Devices Inc AMD.N and eBay Inc EBAY.O [ID:nN10521236] have also said they would exchange underwater employee options.
Google previously estimated it would take a $400 million charge to account for the exchange, assuming the new options were priced at $350 and that 100 percent of eligible options were exchanged.
The company did not provide a new estimate for the charge on Tuesday, but said an aggregate of 7,636,552 shares of Google’s Class A common stock were exchanged, representing 92.3 percent of all eligible shares. (Reporting by Alexei Oreskovic; Editing by Andre Grenon)
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790efd29490c32980d43d514b0808d44 | https://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSN1138359320081211 | UPDATE 1-BJ's Wholesale names Laura Sen CEO | UPDATE 1-BJ's Wholesale names Laura Sen CEO
By Reuters Staff2 Min Read
NEW YORK, Dec 11 (Reuters) - BJ's Wholesale Club BJ.N on Thursday named its president, Laura Sen, to serve as chief executive officer, succeeding Herb Zarkin in a widely expected management change.
BJ’s, the No 3 U.S. warehouse club operator, said Sen will become CEO effective Feb. 1. She has served as president and chief operating officer since January 2008, and she will retain the title of president.
Zarkin will continue to serve as chairman and will stand for re-election to the board when his term expires in May of 2010. Previously, he had planned to retire from the board.
Zarkin, BJ's long-standing chairman, took over as interim CEO of BJ's in 2006, when the retailer lagged behind rivals Costco Wholesale Corp COST.O and Wal-Mart Stores Inc's WMT.N Sam's Club and posted a string of disappointing sales.
Zarkin has since revamped the business, cutting back on the number of items BJ’s sells and improving its merchandise selection. BJ’s November sales at warehouse clubs open at least a year, or same-store sales, rose 4.1 percent, while many retailer’s monthly sales fell amid a sharp pullback in consumer spending.
When the warehouse club operator reported its quarterly results last month, Zarkin said it was no secret that Sen would take over as chief executive, it was just a question of when.
Zarkin said at the time that he would still be involved in the business after the management change.
BJ’s shares fell 4 percent to $34.88 in early morning trading amid a broad market decline. (Reporting by Nicole Maestri; Editing by Derek Caney)
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1a9bcfa515472c287450e05fccb78aec | https://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSN1153597120081111 | RPT-Google adds video and voice chat to Gmail | RPT-Google adds video and voice chat to Gmail
By Reuters Staff2 Min Read
(Repeating to widen distribution)
SAN FRANCISCO, Nov 11 (Reuters) - Google Inc GOOG.O added a voice and video chat feature to its Gmail email service on Tuesday, launching a free Web-based service that competes with the likes of eBay's EBAY.O Skype.
Gmail and Google App subscribers can now choose to speak with friends on a video screen and simultaneously instant message them in a Google Chat box.
The video screen can be popped out of the chat box and moved around a user’s computer screen. Users can also change the size of the screen and expand it to full-screen size.
“The idea was to make it quicker and easier to communicate with other people by whatever means is best convenient,” said Google spokesman Jason Freidenfelds.
“It’s a nice alternative for businesses looking for another way for people to connect,” he added.
The feature is available for both PC and Apple computer users.
A webcam and small web browser plug-in are required to use the video chat. Users who do not have a webcam will still be able to chat with friends by voice. (Reporting by Jennifer Martinez; Editing by Brian Moss)
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0bafa74b651bc8edf06f5d693a0af69b | https://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSN1326983520090814 | UPDATE 2-U.S. video game sales down 29 pct in July-NPD | UPDATE 2-U.S. video game sales down 29 pct in July-NPD
By Gabriel Madway3 Min Read
* Wii again top-selling console
* EA’s “NCAA Football 10” top-selling game (Adds analyst comment, details from NPD)
SAN FRANCISCO, Aug 13 (Reuters) - U.S. video game equipment and software sales fell 29 percent in July to $848.9 million, research group NPD said on Thursday, as the gaming industry limps through the economic downturn.
Hardware sales fell 37 percent from a year ago, while software sales slid 26 percent, NPD said. Sales of video game accessories declined 12 percent.
It was the fifth consecutive monthly decline for the U.S. video games industry. Year-to-date sales are down 14 percent in a sector once thought to be relatively insulated from the economic downturn.
Wedbush Morgan analyst Michael Pachter said the July results were weaker than he had expected, but noted that the worst is over.
“I think the silver lining is, we’re in the trough of the decline,” he said. “The bottom is worse than I thought, but I’m certain we’ve hit bottom.”
Nintendo Co Ltd's 7974.OS Wii was again the top-selling home console in July, but sales fell by around half from last year to roughly 250,000 units.
Microsoft Corp's MSFT.O Xbox 360 was No. 2. NPD said it is the only console system showing a unit sales increase year-to-date.
Sony Corp's 6758.T PlayStation 3 was in third place, followed by the PlayStation 2.
Electronic Arts Inc ERTS.O "NCAA Football 10" was the top selling game for the month, with combined sales of 689,000 units across all platforms.
NPD said the U.S. video game industry as a whole will need to come in at least 11 percent higher in the last five months of 2009, when compared with the same period a year ago, in order to match 2008’s sales.
Analysts do expect a strong back half of the year, beginning in September when big-name titles such as “The Beatles: Rock Band,” and new installments in the “Halo” and “Madden” football franchises are released.
Pachter said he still expects 2009 sales to finish flat to up. He expects September game software sales to rise at least 30 percent and as much as 50 percent from a year ago.
Reporting by Gabriel Madway. Editing by Robert MacMillan and Richard ChangOur Standards: The Thomson Reuters Trust Principles.
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4056ec59392980539fa99b455198cfc2 | https://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSN1553356320081216 | GM to temporarily idle three Mexico assembly plants | GM to temporarily idle three Mexico assembly plants
By Reuters Staff2 Min Read
MEXICO CITY, Dec 15 (Reuters) - General Motors Mexico will temporarily shut down assembly lines at three of its Mexican car factories as part of an overall strategy to cut production due to falling demand, the company said on Monday.
GM GM.N, one of the car companies asking the U.S. Congress for immediate injections of cash to avoid near-term collapse, announced on Friday it would slash first quarter production in North America by 60 percent.
As part of its plan to idle some 30 percent of its assembly plant volume in the region, the San Luis Potosi and Ramos Arizpe factories in Mexico, which make Chevrolets, Saturns and Pontiacs will both go offline from Dec. 22 to Jan. 5.
The Silao factory, which makes Chevrolets, GMC trucks and Cadillacs will shut down from Dec. 22 to Jan. 8 and two assembly lines will be closed until February.
The three plants have more than 10,000 employees -- the bulk of the 13,000 GM jobs in Mexico -- and workers will have to use some of their vacation days for the lost work time, General Motors Mexico said in a statement.
“These stoppages will allow for preventive maintenance on the equipment and an adequate production balance,” the statement said.
Mexico, the world’s 10th-biggest car producer last year, is heavily dependent on the U.S. economy. It builds cars for most of the world’s top companies, but exports are slackening as the United States goes through its worst economic downturn since the Great Depression.
U.S. automotive giants GM, Ford F.N and Chrysler -- known as the Detroit Three -- have all been badly battered by the crisis and turned to the government for a bailout package that could be announced this week. (Reporting by Mica Rosenberg; Editing by Anshuman Daga)
Our Standards: The Thomson Reuters Trust Principles.
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d455a0f80ad471d7b337deb5f93d9215 | https://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSN2835986420090828 | Argentina adopts Japanese digital TV standard | Argentina adopts Japanese digital TV standard
By Reuters Staff0 Min Read
* Brazil has promoted Japanese standard in region
* Japanese standard competes with European, US, others
BARILOCHE, Argentina, Aug 28 (Reuters) - Argentina signed on Friday an agreement to adopt the Japanese digital television standard, joining Brazil, which has already implemented the Japanese standard in its big cities.
With Brazil and Argentina, South America's largest economies, using the Japanese Integrated Services Digital Broadcasting, or ISDB, standard, much of the rest of the region is expected to follow.
Argentine President Cristina Fernandez signed the agreement to adopt the standard on Friday in the southern Argentine city of Bariloche.
In 1998 Argentina had chosen the U.S. digital television standard ATSC, but it was never implemented and the Fernandez government revoked that decision after Brazil lobbied in South America for the Japan standard, saying a regional alignment would facilitate production of the equipment to receive digital signals.
Brazil and Japan also argued the ISDB standard was the best for sending transmissions to mobile telephones and to produce interactive television programs.
Peru has also adopted the Japanese standard and Venezuela is leaning toward doing so.
Around the world, countries are gradually switching to digital television, which allows more channels to be transmitted at higher resolution over less bandwidth. The Japanese standard competes with European DVB standards, ATSC North American Standards and others.
An industry group of Japanese companies, the Digital Broadcasting Experts Group, or DiBEG, has promoted the Japanese standard in Latin America. Leaders of that group include NEC Corporation 6701.T, Japanese Broadcasting Corporation (NHK), Panasonic Corporation 6752.T, Fuji Television Network 4676.T, Hitachi, Ltd. 6501.T, Mitsubishi Electric Corporation 6503.T, Panasonic Corporation 6752.T, Sony Corporation 6758.T and others. (Reporting by Kevin Gray, writing by Fiona Ortiz, editing by Matthew Lewis)
Our Standards: The Thomson Reuters Trust Principles.
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a66f84c325348694d43c873cd9a4380d | https://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSN2934312120080429 | UPDATE 2-Russia bans pork imports from 4 US plants -USDA | UPDATE 2-Russia bans pork imports from 4 US plants -USDA
By Bob Burgdorfer3 Min Read
(Recasts, updates with USDA comment that ban may relate to antibiotic tetracycline)
CHICAGO, April 29 (Reuters) - Russia, a leading market for U.S. pork, has banned pork imports from four U.S. plants amid concerns about an antibiotic in the meat, the U.S. Agriculture Department said on Tuesday.
News that Russia banned pork from two Tyson Foods Inc. TSN.N plants and two Farmland Foods plants sent U.S. hog prices sharply lower at the Chicago Mercantile Exchange.
Russia claimed the antibiotic tetracycline was found in some of the pork, the USDA said on Tuesday after reporting the ban on its Web Site late on Monday.
“These things come up occasionally, even with Russia. They claim they have found tetracylcine showing up,” said USDA spokesman Keith Williams.
Williams said such things usually are resolved quickly, possible “in a matter of couple of weeks.”
The U.S. Meat Export Federation, plus meat companies Tyson Foods Inc. and Smithfield Foods Inc., said they were investigating Russia’s action. Farmland Foods is a unit of Smithfield Foods.
The affected plants include the Tyson’s facilities in Storm Lake, Iowa, and Logansport, Indiana; and the Farmland Foods’ plants in Crete, Nebraska, and Monmouth, Illinois.
“Initially it is a big blow considering the high hog slaughter that we have,” said John Kleist, broker/analyst with Allendale Inc. “Now the futures market seems to be awaiting some rationale of why they are doing it and is it science based or protectionism based.”
Through February, Russia was the No. 5 export market for U.S. pork this year, buying 26,716 metric tonnes, up 164 percent from a year earlier, according to the U.S. Meat Export Federation, a trade association that compiles USDA export figures.
Pork export figures from the USDA are delayed about two months and reports for March and April will still show very good exports of pork to Russia, said Bob Vande Vorde, livestock analyst with Mast Group LLC.
U.S. pork exports have been setting records for several years due to strong demand from growing economies overseas and ample supplies of U.S. pork. Also, lately the weak U.S. dollar has helped drive export sales, the USMEF said.
In midday trading. CME June hog futures were down 2.8 cents, or 3.71 percent, at 72.650 cents per lb.
Additional reporting by Jerry Biesk, Chicago, and Christopher Doering and Ayesha Rascoe in Washington; Editing by David GregorioOur Standards: The Thomson Reuters Trust Principles.
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1b24cb95132f9eff0d2ffd5a0564dc80 | https://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSN3141117120090331 | UPDATE 2-U.S. top court dismisses Philip Morris appeal | UPDATE 2-U.S. top court dismisses Philip Morris appeal
By 4 Min Read
* Philip Morris was appealing $79.5 mln punitive damages
* Case involved widow of longtime Oregon smoker
* Supreme Court does not decide merits of dispute
* Altria shares down about 3 pct (Adds company, analyst comment)
By James Vicini
WASHINGTON, March 31 (Reuters) - The U.S. Supreme Court dismissed an appeal by Altria Group Inc's MO.N Philip Morris USA over $79.5 million in punitive damages awarded to the widow of a longtime Oregon smoker.
The top court did not decide the merits of the dispute, but in a one-sentence ruling on Tuesday dismissed the appeal as “improvidently granted.” Philip Morris in its appeal argued the Oregon Supreme Court in upholding the award had defied an earlier U.S. Supreme Court ruling in the case.
Altria shares were down about 3 percent at midday following the ruling.
Since the court did not rule on the merits of the merits, “it isn’t necessarily and indication that the floodgates will open in litigation cases,” Morningstar analyst Phil Gorham said. “But I do think it is a setback.”
Gorham said the case should remind investors that tobacco companies are still subject to product liability lawsuits, even though the legal atmosphere for the industry has improved in recent years.
The case stemmed from a lawsuit filed by Mayola Williams, whose husband died of lung cancer in 1997 after smoking for more than 40 years.
Williams said her husband, a public-school janitor in Portland who smoked as many as three packs a day of Philip Morris’ Marlboro cigarettes, had believed the decades of tobacco industry assurances that smoking did not pose a health threat.
In 1999, a jury awarded Williams $821,000 in compensatory damages, which was reduced under state law to $521,000, and $79.5 million in punitive damages. With interest, the award has grown to more than $150 million, a lawyer for Williams said.
The U.S. Supreme Court initially set aside the award in 2003 in view of its ruling that generally limited punitive damages to no more than nine times the compensatory damages.
The Oregon Supreme Court then upheld the award and ruled the company’s reprehensible conduct warranted such a large verdict.
The U.S. Supreme Court in 2007 overturned the award for a second time. It ruled it was unconstitutional for juries to impose damages to punish a defendant for the harm done to those who are not parties in the lawsuit.
The Oregon Supreme Court in 2008 again upheld the $79.5 million award. It ruled the proposed jury instructions by Philip Morris were flawed under state law and the company thus forfeited its claim of federal constitutional error.
Phillip Morris again appealed to the Supreme Court and said the state court had ignored the Supreme Court’s instructions.
The Supreme Court heard arguments in the case on Dec. 3. By dismissing the appeal and saying the appeal should not have been granted, the justices left intact the award against the tobacco company.
Philip Morris said the ruling on Tuesday was based only on a procedural matter.
“Today’s decision does not impact the court’s earlier decisions on punitive damages,” Murray Garnick, an Altria attorney said in a statement on behalf of Philip Morris. “Importantly, the court did not disturb its 2007 Williams decision which held that a jury may not impose punitive damages for harm caused to anyone other than the plaintiff in a particular case.”
Philip Morris is still battling with Oregon over a state law that requires 60 percent of any punitive damages award be paid to the state.
The company argues that, under the 1998 settlement agreement between tobacco companies and the states, Oregon is barred from collecting punitive damages. That issue is currently before an Oregon state court, the company said.
Altria shares were down 47 cents at $15.91 at midday on the New York Stock Exchange. (Additional reporting by Brad Dorfman in Chicago; Editing by Lisa Von Ahn and Andre Grenon)
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1287a1d745e314b7910d3b48c83be36e | https://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUST9782620080829?sp=true | Nintendo lifts profit, shares soar | Nintendo lifts profit, shares soar
By Sachi Izumi3 Min Read
TOKYO (Reuters) - Nintendo Co boosted its annual profit outlook by 23 percent on white-hot demand for its Wii video game console and DS portable player, beating market expectations and sending its shares more than 8 percent higher.
Nintendo Co's Wii game console is displayed at an electronic shop in Tokyo's Akihabara district January 24, 2008. REUTERS/Yuriko Nakao
As consumers in the United States and Europe snap up its game machines, Nintendo hiked forecasts for the Wii 6 percent and for the DS 9 percent, pushing the company to the limits of current production capacity.
“The fact that Nintendo is confident to say even before the end of the first half, that overseas sales are this strong, will likely help the stock ride a wave towards the Christmas shopping season,” said Koki Shiraishi, an analyst at the Daiwa Institute of Research.
The Wii, launched in late 2006, has far outsold Sony’s PlayStation 3 and Microsoft’s Xbox 360 in the $57 billion video game industry, thanks to its easy-to-learn motion-sensing controller, low price and innovative titles like the “Wii Fit” exercise game.
Nintendo said it now expects an operating profit of 650 billion yen ($6 billion) in the year to March, up from its previous forecast of 530 billion yen, also helped by a softer yen.
It sees sales of 2 trillion yen, 11 percent higher than its previous estimate.
The new profit forecast trounced a Reuters Estimates consensus of 605 billion yen from 20 analysts.
Nintendo’s shares rose by their daily limit of 4,000 yen to close at 51,800 yen, outperforming a 2.4 percent climb for the Nikkei benchmark
The stock’s value grew more than five-fold in the two years through October 2007, spurred by strong sales of the DS and Wii, Nintendo’s twin growth engines.
But it has lost 28 percent since then due to investor concerns that its break-neck growth may be slowing.
The company lifted its annual dividend forecast to 1,680 yen, up from the 1,370 yen it had expected in April. It also lifted its half-year operating profit estimate by 17 percent to 245 billion yen.
Nintendo’s robust sales underscores the video game sector’s resilience in the face of soaring oil prices and sluggish consumer spending which have hurt industries such as autos.
“Games aren’t all that expensive, so they’re appealing even now. Something like a car, of course, is quite different,” Shinkin Asset Management fund manager Tomomi Yamashita said.
By contrast, Toyota Motor Corp cut its 2009 vehicle sales forecast on Thursday.
Nintendo said it now aims to sell 26.5 million Wii consoles and 30.5 million DS players this business year.
Additional reporting by Elaine Lies and Kiyoshi Takenaka; Editing by Edwina GibbsOur Standards: The Thomson Reuters Trust Principles.
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fa850dc09bfc8a22254b3e0755dabd6c | https://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSTKG00431920090427 | Sharp sees LCD TV business in the red this year | Sharp sees LCD TV business in the red this year
By Reuters Staff1 Min Read
TOKYO, April 27 (Reuters) - Japan's Sharp Corp 6753.T said on Monday its LCD TV operations are likely to stay in the red this year although its losses are likely to shrink substantially.
Sharp expects its audio-visual and communications equipment division to post an operating loss of 11.6 billion yen ($120 million) in the financial year to March 2010, compared with a 53.6 billion yen loss a year earlier.
SharpExecutive Vice President Toshishige Hamano told a news conference the figures were mostly accounted for by its LCD TV business. (Reporting by Kiyoshi Takenaka)
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b2e05586c5894541db32c1cf37ad89b3 | https://www.reuters.com/article/rbssEnergyNews/idUSN028762620090702 | U.S. natgas rig count edges up 1 to 688 for week | U.S. natgas rig count edges up 1 to 688 for week
By Reuters Staff2 Min Read
NEW YORK, July 2 (Reuters) - The number of rigs drilling for natural gas in the United States unexpectedly rose again, the second gain in seven months, according to a report on Thursday by oil services firm Baker Hughes in Houston.
The report showed U.S. gas drilling rigs edged up 1 to 688 this week, still 851 rigs, or 55 percent, below the same week last year, when there were 1,539 gas rigs operating.
U.S. natural gas drilling rigs have been in a mostly steady decline since peaking above 1,600 in September, but two weeks ago the count rose for the first time since November 2008.
Sources said the gas rig count decline seemed to be slowing just below the 700 mark, despite still-weak natural gas prices, possibly because some prolific shale plays like Haynesville in Louisiana or Marcellus in Appalachia may still be economic.
Tighter access to credit and a 70 percent slide in natural gas prices to about $3.50 per mmBtu, after peaking above $13 last July, have forced many producers to scale back drilling operations.
But, with the natural gas drilling rig count below 700, most analysts expect to see year-on-year output declines soon, which should help tighten the overall supply-demand balance. (Reporting by Joe Silha; Editing by Walter Bagley)
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5199a3063781bbc33549d4932e67ac90 | https://www.reuters.com/article/rbssEnergyNews/idUSN1129300620090911 | UPDATE 3-US cracks down on mountaintop coal-mine permits | UPDATE 3-US cracks down on mountaintop coal-mine permits
By Timothy Gardner3 Min Read
(Adds background, analyst comments, byline)
NEW YORK, Sept 11 (Reuters) - U.S. environmental regulators said on Friday they will scrutinize 79 applications for mountaintop coal-mine permits in Appalachia to guard against damage to water supplies.
“Release of this preliminary list is the first step in a process to assure that the environmental concerns raised by the 79 permit applications are addressed and that permits issued are protective of water quality and affected ecosystems,” U.S. Environmental Protection Agency Administrator Lisa Jackson said in a statement.
In mountaintop mining, companies blast the tops of hills with dynamite to get to the coal seams. The resulting rubble is pushed off the mountains into valleys below, often burying streams.
The move was seen as a sign that President Barack Obama, who has put environmental and energy issues high on his agenda, is serious about slowing down mountaintop mining.
“This administration is full force headed down the path where it wants to stop this practice,” said Dan Scott, an analyst at Dahlman Rose & Co in New York.
Scott said the move would likely benefit mining companies, like Consol Energy Inc CNX.N, that have low-cost underground operations as opposed to mountaintop mining.
The EPA said it will work with the Army Corps of Engineers to ensure that the proposed projects will not harm water supplies.
Environmentalists praised the EPA’s move.
“By recommending these permits not be approved, the EPA and the Army Corps have demonstrated their intention to fulfill a promise to provide science-based oversight which will limit the devastating environmental impacts of mountaintop removal mining,” Willa Mays, executive director for Appalachian Voices, said in a release.
In the next 15 days, the EPA will evaluate the preliminary list of projects slated for further review and transmit a final list to the Army Corps. Then environmental issues over particular permit applications will be addressed during a 60-day review process triggered when the Corps informs EPA that a particular permit is ready for discussion. (Additional reporting by Matthew Robinson; Editing by Walter Bagley)
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7ba7e7212c6bcd39c40915d2e0b95bb8 | https://www.reuters.com/article/rbssEnergyNews/idUSOSO00102420071212 | Norway oil spill may not reach coast - official | Norway oil spill may not reach coast - official
By Reuters Staff1 Min Read
OSLO, Dec 12 (Reuters) - Norway’s coastal administration said on Wednesday there was only a small chance that a 25,000-barrel oil spill in the North Sea would reach the Norwegian coast.
“We see the probability as being small that this spill will reach the shores,” director Tor Christian Sletner of the Norwegian Coastal Administration told Reuters. “StatoilHydro is responsible for cleaning up. This is the ‘polluter pays’ principle,” Sletner added.
The spill occurred at StatoilHydro’s Statfjord oilfield, about 200 km (124 miles) west of the port of Bergen.
Reporting by Terje Solsvik and Bart NoonanOur Standards: The Thomson Reuters Trust Principles.
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4f1b1e2189bb74079ccfdf2528def0a7 | https://www.reuters.com/article/rbssEnergyNews/idUSPEK12824920090826 | Sinopec says ADDAX deal got Iraqi approval -paper | Sinopec says ADDAX deal got Iraqi approval -paper
By Reuters Staff2 Min Read
BEIJING, Aug 26 (Reuters) - China Sinopec Group's $7.24 billion acquisition of Swiss oil firm Addax Petroleum Corp AXC.TO was approved by the Iraqi government, a local paper quoted a senior Sinopec official as saying on Wednesday.
The remark came in response to a Reuters report late on Monday that Iraq’s Oil Ministry said it would blacklist Sinopec and bar it from new oilfield tenders if it confirmed the purchase of the Swiss firm, which is active in the semi-autonomous Kurdistan region in northern Iraq. [ID:nLO550624]
“The Oil Ministry is committed to not dealing with any oil company that signs oil contracts (with the Kurdish Regional Government) without the approval of the central government and Iraqi Oil Ministry,” Deputy Oil Minister Abdul Karim Louaibi told Reuters in Istanbul.
“The reaction of the ministry will be clear, Sinopec will be blacklisted.”
But the China Business News quoted the Sinopec official as saying Sinopec’s commercial operations are unrelated to the conflicts between the Iraqi government and Kurdistan. The report did not say who in the Iraqi government had purportedly approved the deal or when.
Sinopec Group, parent of Sinopec Corp 0386.HKSNP.N, agreed in late June to buy Addax in China's biggest overseas acquisition.
Analysts have warned that Addax’s assets in the Kurdish blocks, including the Taq Taq field that has the potential for a sharp production increase, carry political risks that could prompt Sinopec to sell them to another party.
Sinopec participated in Iraq's oil licensing round in late June, the first since the 2003 U.S.-led invasion, along with China's other oil majors and many international oil firms. Iraq only awarded one contract to a consortium of BP BP.L and China's CNPC.
Reporting by Chen Aizhu; Editing by Ken WillsOur Standards: The Thomson Reuters Trust Principles.
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157cdb9312d3957fd4354e683fb8a7fe | https://www.reuters.com/article/rbssEnergyNews/idUSSYD17361920090115 | UPDATE 1-Woodside suspends gas project due to tough market | UPDATE 1-Woodside suspends gas project due to tough market
By Reuters Staff2 Min Read
(Adds details, background)
PERTH, Jan 16 (Reuters) - Woodside Petroleum Ltd WPL.AX, Australia's second-biggest oil and gas producer, will suspend work on a proposed natural gas import project in the United States due to weak energy market conditions, it said on Friday.
The OceanWay project was to supply gas consumers in the west coast city of Los Angeles and includes the construction of an underwater liquefied natural gas (LNG) receiving facility off the Californian coast.
Woodside Natural Gas President Steve Larson said the company still believed in the value of supplying LNG to Los Angeles but was withdrawing its application for the time being due to current market conditions.
Woodside, which operates Australia’s biggest LNG venture, the North West Shelf project, has been seeking to gain access to the key North American market for its large undeveloped gas reserves.
But the project had faced obstacles.
Larger rivals have so far failed to convince Californians to accept construction of terminals on or near the mainland, with a similar plan proposed by BHP Billiton Ltd BHP.AXBLT.L rejected in 2007 after strong public opposition.
Woodside’s OceanWay project has been under under review by regulators, led by the U.S. Coast Guard and the City of Los Angeles, since September 2007.
Shares in Woodside WPL.AX rose 0.6 percent to A$34.26 at the start of trading on Friday. (Reporting by Fayen Wong; Editing by James Thornhill)
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194ee15b2d3fb73d0623401cbb0251f9 | https://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUKBNG9049020080619?edition-redirect=uk | UPDATE 1-Washington Mutual cuts 1,200 jobs after big losses | UPDATE 1-Washington Mutual cuts 1,200 jobs after big losses
By Jonathan Stempel3 Min Read
(New throughout, adds dateline and byline)
BANGALORE, June 19 (Reuters) - Washington Mutual Inc WM.N said on Thursday it eliminated 1,200 jobs, following mortgage losses that some analysts have said will keep the largest U.S. savings and loan from turning a profit before 2010.
The cuts affect roughly 3 percent of the thrift’s employee base. Washington Mutual has said it ended March with 45,883 employees, down from 49,403 at year-end.
In an e-mail, Washington Mutual said it was cutting jobs that support its home lending unit, centralizing some support functions, and focusing on “mission-critical activities.” It said the cuts were meant to boost efficiency and restore profitability.
At the end of 2005, well before the housing crisis began to take hold, the thrift had employed more than 60,000 people.
Washington Mutual lost about $3 billion in the six months ended March 31, after failing to cut back risky lending fast enough, and keeping on its books too many loans that went sour or which investors stopped buying.
Mounting losses caused the thrift this year to slash its dividend and raise $7 billion of capital that diluted existing shareholders. The thrift this month stripped Chief Executive Kerry Killinger of his role as chairman, after a majority of shareholders voted to name an independent director as chairman.
Washington Mutual has said it may still need to charge off $12 billion to $19 billion of its $187 billion one-family residential home loan portfolio within four years.
UBS analyst Eric Wasserstrom in a June 9 report said the thrift’s home loan losses may total $21.7 billion through 2011, and that losses from all asset classes could reach $27 billion.
Washington Mutual announced the latest job cuts a day after it said it would stop offering two types of riskier mortgages.
One, so-called “option” adjustable-rate mortgages, let borrowers pay less than the principal due, with those amounts to be paid later. The other, WaMu Mortgage Plus loans, carried built-in credit lines and offered flexible payments.
Many lenders with specialties in option ARMs, including Countrywide Financial Corp CFC.N and Wachovia Corp WB.N, have struggled with soaring defaults as falling housing prices left many borrowers owing more than their homes were worth.
Seattle-based Washington Mutual on Wednesday also added $1 billion to an assistance program it created last year to help some borrowers with subprime mortgages stay in their homes.
Shares of Washington Mutual were unchanged at $6.26 in afternoon trading on the New York Stock Exchange. They have fallen more than 85 percent from their 52-week high of $44.04, set last June 28. (Editing by Braden Reddall)
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8e8609f9990fb91e3373bb6b0a362f1d | https://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUKL734907520090207?edition-redirect=uk | Swiss law expert: UBS US clients committed no fraud | Swiss law expert: UBS US clients committed no fraud
By Reuters Staff3 Min Read
GENEVA, Feb 7 (Reuters) - American customers of Swiss bank UBS AG UBSN.VX suspected of avoiding U.S. taxes did not commit a tax fraud, according to an investigation by a Swiss legal expert published in Swiss daily Le Temps on Saturday.
Instead they exploited a loophole known to the U.S. tax authorities, and so the Swiss are under no obligation to pass the customers’ names to the U.S. authorities, according to the study by Urs Behnisch, a law professor at Basel University.
Behnisch’s opinion, produced for lawyers of one of the affected clients, was originally published last month in Jusletter (www.weblaw.ch), a Swiss online law review.
The U.S. Justice Department wants the Swiss authorities to hand over confidential data on the wealthy clients to help its investigation into offshore services provided by UBS advisers to U.S. customers from 2000 to 2007. UBS is accused of helping U.S. clients avoid taxes by hiding assets in Switzerland.
Swiss law prohibits disclosure of client data or names unless the country’s authorities believe the client has committed a serious crime such as money laundering or tax fraud. Switzerland does not consider tax evasion to be a crime.
Nearly one third of wealth kept abroad globally is in Swiss banks. The Swiss Bankers Association and consultants estimate this at $2.2 trillion, making the Alpine state the world’s biggest offshore centre.
But Swiss bank secrecy is under renewed pressure from the United States and other countries like Germany who are cracking down on tax evasion.
U.S. President Barack Obama has singled out UBS as one of the banks who helped “tax cheats”, and a U.S. indictment has alleged that Raoul Weil, the former head of UBS’s wealth management business, and other unidentified bankers conspired to help 17,000 Americans hide $20 billion of assets in Swiss bank accounts to avoid paying U.S. taxes.
Behnisch concluded in his study that the sums invested by U.S. clients with UBS were deductible rather than the result of a fraud, such as the use of falsified documents, which would require the Swiss authorities to help their U.S. counterparts.
Behnisch said Swiss banks had expressly drawn the attention of the U.S. authorities to the possible loopholes in the system of “qualified intermediaries”, introduced in 2001 to attract foreign investors to U.S. securities.
Under the scheme banks are supposed to identify investors, withhold tax on U.S. securities on their behalf and and send it to the U.S. tax authorities.
U.S. clients of UBS targeted by the Justice Department may have breached their duty to declare their holdings in companies wealth management companies or trusts through which they held U.S. securities, Behnisch found, according to the newspaper.
But they did not falsify their accounts, and the banks were only obliged to identify the wealth management companies holding U.S. securities, not the people investing in them. (Reporting by Jonathan Lynn; Editing by William Hardy)
Our Standards: The Thomson Reuters Trust Principles.
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55b5a453e27246a829cb0e6b09f7625d | https://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSBRU00738520090428 | Fortis shareholders in Belgium approve BNP deal | Fortis shareholders in Belgium approve BNP deal
By Reuters Staff1 Min Read
GHENT, Belgium, April 28 (Reuters) - Shareholders of Fortis FOR.BR approved the sale of assets to France's BNP Paribas BNPP.PA in Belgium on Tuesday, bringing the carve-up of the stricken group a step closer to conclusion.
In the first of two planned meetings, 72.99 percent of shareholders in the Belgian city of Ghent voted in favour of BNP Paribas’s purchase of a 75 percent stake in Fortis Bank, the Belgian banking business now in state hands.
A majority of votes at a second meeting in the Dutch city of Utrecht on Wednesday would be required for the deal to be approved. The outcome there should be similar given shareholders can vote at both meetings. (Reporting by Antonia van de Velde)
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caff322ba9034b9f9679d2dde3b4677c | https://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSBUC00342720090803 | Romania BRD H1 net falls 17.4 pct, beats consensus | Romania BRD H1 net falls 17.4 pct, beats consensus
By Reuters Staff1 Min Read
BUCHAREST, Aug 3 (Reuters) - Romania's No. 2 bank BRD BRDX.BX, controlled by France's Societe Generale SOGN.PA, posted a 17.4 percent fall in first-half net profit on Monday, beating market expectations. BRD posted a net profit of 425 million lei ($143 million) in the first half of this year, compared with a forecast of 390 million lei in a Reuters poll of analysts.
Eastern European banks have been hit by a slowdown in lending and rising provisions for non-performing loans, as currency weakness and growing unemployment have hit clients.
While financing conditions have deteriorated because of the global credit squeeze, banks have had to raise rates on deposits to attract more funds, compromising a good chunk of their earnings. (Reporting by Marius Zaharia, editing by Will Waterman) ($1=2.982 Lei)
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83d54906c90edb5c58264ed82686f068 | https://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSKLR15089620080922 | AIG unit gets Malaysian Islamic insurance license | AIG unit gets Malaysian Islamic insurance license
By Reuters Staff2 Min Read
KUALA LUMPUR, Sept 22 (Reuters) - AIA Bhd, the Malaysian unit of American International Assurance Co (AIA), has been awarded Malaysia’s first international takaful (Islamic insurance) licence, the company said on Monday.
Hong Kong-based AIA is the life insurance unit of American International Group AIG.N, which was rescued by the U.S. government in an $85 billion bailout last week.
The licence, given by Malaysia’s central bank, will allow AIA Bhd’s unit, AIA Takaful International Bhd, to offer family and general takaful and takaful re-insurance in international currencies, it said in a statement.
Under Islamic insurance, members contribute to a pool of funds which is used to indemnify participants who suffer a loss.
The funds are invested according to the sharia, or Islamic law, which avoids interest-bearing loans and gambling, pork and alcohol-related activities. Profits made are distributed among members.
“It is significant step for AIA Bhd as we enter the growing Islamic financial market as a niche player offering consumers the choice of takaful solutions in international currencies,” AIA Bhd Chief Executive Khor Hock Seng said. (Reporting by Jalil Hamid, Editing by Lincoln Feast)
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93b1c88039827f8dad9326fe7effd2b5 | https://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSL1776106620080317 | UPDATE 1-Indonesia airline loses half its fleet after default | UPDATE 1-Indonesia airline loses half its fleet after default
By Reuters Staff3 Min Read
(Adds new quotes from airline president)
JAKARTA, March 17 (Reuters) - Indonesian budget carrier Adam Air may face temporary closure because a leasing firm seized more than half its fleet after the airline defaulted on payments, the airline’s president said on Monday.
Adam Air, which like all other Indonesian airlines has been banned by the European Union because of safety concerns, was forced to cut back several scheduled flights on Monday because it did not have enough aircraft, causing delays for some passengers.
“Out of 22 planes, now we only have 10 because 12 of them have been declared in default. The other 10 have been declared in default as well, but I’m still trying to work out a way to restructure the payments,” Adam Suherman, the airline’s president director, told Reuters.
Suherman later told reporters the firm needed a cash injection and faced a deadline later this week over insurance payments.
“There is a possibility starting on March 21 Adam Air will temporarily cease operations until there is a decision from the shareholders regarding the insurance premium,” Suherman said.
“I have informed the shareholders that the company needs a cash injection,” he added.
PT Bhakti Investama Tbk BHIT.JK, an investment firm which indirectly owns 50 percent of Adam Air, will sell its stake in the airline back to Suherman, the founding shareholder, for 100 billion rupiah ($11 million), according to Hotman Paris Hutapea, a lawyer acting for Bhakti.
In January 2007, an Adam Air plane crashed into the sea off Sulawesi island, with all 102 people on board presumed dead.
Bhakti, controlled by businessman Hary Tanoesoedibjo, invested in the airline soon after the disaster, hoping to benefit from a turnaround at the airline.
Bhakti has injected as much as 157 billion rupiah in the airline, Hutapea said, since it agreed in April 2007 to buy a 50 percent stake.
Indonesia’s airline industry has grown rapidly in the past decade following liberalisation, with the launch of new players and a wider choice of routes across the sprawling archipelago.
However, the world’s fourth-most populous country has suffered a string of airline disasters in recent years, raising concerns about safety standards and prompting the European Union to ban all Indonesian airlines from its airspace.
While the cause of the Adam Air disaster is still under investigation, the budget airline has faced other safety issues.
On March 10, a Boeing 737-400 operated by Adam Air with more than 170 people on board overshot the runway at Batam island airport, causing damage to the plane and injuring five people.
Following that incident, state media reported Indonesia’s transport minister had warned Adam Air it could be forced to halt its operations after a series of accidents involving the carrier. ($1=9,325 rupiah) (Reporting by Nury Sybli and Andreas Ismar, writing by Harry Suhartono, editing by Sara Webb/Ed Davies and Mary Gabriel)
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d20aa15a6bb225ca3e59c91b9e5fbcd5 | https://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSL846186920081108 | Germany's LBBW to lose 350 mln eur on Iceland deals | Germany's LBBW to lose 350 mln eur on Iceland deals
By Reuters Staff2 Min Read
FRANKFURT, Nov 8 (Reuters) - German state lender LBBW [LBBW] said on Saturday it expected losses of 350 million euros ($447.8 million) as a result of its exposure to the Icelandic market, facing a deep recession after the collapse of three major banks.
A spokesman for the regional lender in Stuttgart gave the figure to Reuters in response to an enquiry but would not give a total figure for LBBW’s exposure in Iceland.
“We expect a loss of 350 million euros from our Icelandic engagements,” he said.
The Sueddeutsche Zeitung daily had reported on Saturday that the bank’s exposure in Iceland totalled one billion euros.
Iceland has to rebuild its shattered economy after the financial crisis led to the bank crashes and left it scrambling to find funding from other countries and international lenders.
LBBW said on Friday it was considering taking part in the German government’s capital rescue package for banks to prop up their flagging finances in the crisis.
LBBW peer BayernLB last month was the first to take up the state’s offer, requiring 5.4 billion euros and citing among other problems Icelandic credit defaults.
Reporting by Hendrik Sackmann; editing by Patrick GrahamOur Standards: The Thomson Reuters Trust Principles.
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3f15cab0bbf1a5ba4f0a7a211d30eb57 | https://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSL9953120080909 | LSE says systems fault not due to trading volume | LSE says systems fault not due to trading volume
By Reuters Staff1 Min Read
LONDON, Sept 9 (Reuters) - The London Stock Exchange's LSE.L failure on Monday was down to a software fault rather than high trading volume and has now been resolved, the exchange told Reuters on Tuesday. "It was software-related, a coincidence, due to two processes we couldn't have foreseen," a spokeswoman said.
“We’ve introduced a fix and we’re confident it will not happen again.”
She said the fault was not due to high trading volume. "That's a red herring. We were able to eliminate that pretty quickly." The problem, the LSE's worst systems failure in eight years, occurred on what could have been one of London's busiest trading days of the year as markets rebounded following the U.S. government's decision to bail out mortgage companies Fannie Mae FNM.N and Freddie Mac FRE.N. (Reporting by Laurence Fletcher)
Our Standards: The Thomson Reuters Trust Principles.
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088306835b9ab2301f31d0ee0ff97963 | https://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSLA11294220081010 | Russian bank calls on clients to pay back mortgages now | Russian bank calls on clients to pay back mortgages now
By Simon Shuster3 Min Read
MOSCOW, Oct 10 (Reuters) - Russia’s Rosevrobank, a mid-sized lender, has asked clients to pay back their mortgages right away rather than risk the prospect of real estate prices falling 30 percent, the bank said on Friday.
“We are warning clients that they are in a crisis situation, that we are in this situation with them, and that both of us need to create a certain pillow of support,” Elena Safyanova, the bank’s head of communications, told Reuters.
With the credit crunch showing no signs of abating, many Russian companies from the largest conglomerates to the smallest retail chains have been taking desperate measures to raise cash.
Safyanova said her bank is in good financial shape and had recently paid back the first tranche due on a loan for $150 million.
But she said borrowers would be better off paying back their mortgages now, as their financial well-being could quickly deteriorate given the present state of the economy.
“There is also a crisis on the labour market, so they may be left without work or have their pay cut ... We should all try to close our debts now before it’s too late,” she said.
30 PERCENT DROP
Rosevrobank’s chairman Ilya Brodsky said that dropping property values are eating away at the value of the mortgage loans’ collateral, which is usually the property itself.
“If the collateral loses its value, becomes worthless, the bank has to take steps to make the borrower compensate for that,” he said in a statement. “Some of the largest real estate agencies are forecasting at least a 30 percent drop in property values.”
Safyanova said the bank has the right to change the loan agreement unilaterally if the value of the collateral falls but in practice the bank would try to work with clients to renegotiate the terms to allow for early repayment.
Garegin Tosunyan, the head of the Association of Russian Banks, a lobbying group, said that in troubled times this practice is understandable.
“They are worried that these [loans] will make trouble for them later, so they are hedging their risks. But this doesn’t mean people are going to start ripping up contracts,” Tosunyan said on Ekho Moskvy radio.
Several Russian banks have frozen or suspended their mortage lending operations as a growing chorus of analysts predict that a bubble has formed in Moscow’s housing market, and sooner or later it will burst.
In a recent note to investors, Moscow brokerage Unicredit compared the housing market in Russia with that of the United States, where soaring prices and risky lending have led to a collapse that infected the wider global economy. (Editing by Greg Mahlich)
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3bf52187afcf16bad4d8f02245de7c49 | https://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSLI27608320090118 | UBS, Credit Suisse seen cutting more jobs - paper | UBS, Credit Suisse seen cutting more jobs - paper
By Reuters Staff1 Min Read
ZURICH, Jan 18 (Reuters) - Swiss banking giants UBS UBSN.VXUBS.N and Credit Suisse CSGN.VX are both expected to cut thousands more jobs this year, Swiss weekly newspaper Sonntag said on Sunday.
UBS, which shed around 9,000 jobs in 2008, may announce further job cuts when it reports annual results on Feb. 10 and could shed as many as 5,000 jobs in 2009, Sonntag said without quoting sources.
Serge Steiner, a spokesman for UBS, said the bank would give an update on staffing at that time but declined to comment on the report.
Sonntag said Credit Suisse, which announced it planned to axe 5,300 jobs in December, will cut by a similar amount in 2009.
Credit Suisse spokesman Andres Luther said the bank currently has no plans to cut headcount further.
Writing by Lisa Jucca; editing by John StonestreetOur Standards: The Thomson Reuters Trust Principles.
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2c5612e8634607cb8cbd8dac4303fc7a | https://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSLK54889720090820 | Norwegian savings bank seeks $400 mln in state aid | Norwegian savings bank seeks $400 mln in state aid
By Reuters Staff2 Min Read
OSLO, Aug 20 (Reuters) - Norwegian savings bank SpareBank 1 SR-Bank ROGG.OL said on Thursday it asked the government for an injection of 2.4 billion crowns ($396.7 million) to boost its core and preferred capital.
SpareBank 1 SR-Bank is one of the first lenders to have detailed an application for state help ahead of a Sept. 30 deadline. Many are watching whether Norway's biggest bank, DnB NOR DNBNOR.OL, takes part in the scheme and on what scale.
“The reason for the application is to strengthen the bank’s (finances) and facilitate continued normal lending activities,” SpareBank 1 SR-Bank said in a statement.
At the end of the second quarter, SpareBank 1 SR-Bank had a core capital adequacy ratio of 7.0 percent and a capital adequacy ratio of 9.5 percent. It aims to increase the core capital adequacy ratio to at least 9 percent, the bank said.
“An injection of capital from the Finance Fund will help achieve the core capital adequacy ratio target ... and facilitate normal lending activities also when the demand for loans rebounds,” it added.
The bank applied to the Norwegian state fund for an injection of core capital in the form of hybrid instruments worth up to 1.6 billion crowns and preferred capital of up to 800 million.
The final decision on an injection is “subject to the negotiations of acceptable terms with the Fund,” it said. ($1=6.050 NORWEGIAN CROWN) (Reporting by Wojciech Moskwa; editing by John Stonestreet)
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5b2618e012964a4d00771eeb2ef50c62 | https://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSLR23783520090727 | Dubai's Jumeirah to manage new resort in China | Dubai's Jumeirah to manage new resort in China
By Reuters Staff2 Min Read
DUBAI, July 27 (Reuters) - Dubai luxury hotelier Jumeirah Group said on Monday it had been appointed by Hong Kong's Agile Property Holdings 3383.HK to manage a beach resort in China.
The Jumeirah Qing Shui Bay Resort, located on the southern island of Sanya, will be Jumeirah’s fourth management agreement in China after Shanghai, Guangshou and Macau, Jumeirah said in a statement.
The resort will comprise a 250-room hotel and 50 private villas, and is expected to open in 2013, it said without disclosing the value of the deal.
Jumeirah, famous for managing the sail-shaped Burj al-Arab hotel in Dubai, may not open the first of six hotels planned in China until 2010, as the project faces another delay due to the financial crisis, its executive chairman, Gerald Lawless, told Reuters in May. [ID:nL3112766]
The group, owned by the ruler of Dubai, missed its original target to open the 338-room Jumeirah Han Tang Xintandi Hotel in Shanghai, China’s financial hub, in late 2008 and in January pushed it back to later this year.
The group has 14 hotels under construction from Shanghai to Phuket, Thailand and the Maldives, and looks to hit a target of 60 hotels under management by 2012.
Jumeirah also has management agreements in Argentina, U.S. Virgin Islands and Costa Rica. (Reporting by Jason Benham; editing by Simon Jessop)
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14d28254054839d2098370c2382d05e7 | https://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSN0351371720081203 | Goldman Whitehall head warned of firm's exposure | Goldman Whitehall head warned of firm's exposure
By Joseph A. Giannone, Ilaina Jonas5 Min Read
NEW YORK, Dec 3 (Reuters) - Goldman Sachs Group Inc GS.N real estate head Stuart Rothenberg told an industry group last month that the firm had put more of its own capital at risk as the commercial real estate market was peaking in mid-2007.
Goldman had increased its equity stakes in the Whitehall fund family it manages and had invested more of its own balance sheet in commercial property when markets were booming, Rothenberg told the Real Estate Board of New York on Nov. 6 .
“The firm was, for all intents and purposes, almost an enlarged hedge fund for the past couple of years, where the more (investing) we could do on balance sheet and the less we could do in the funds, the more we did,” he said.
Rothenberg’s remarks came one week before he announced plans to retire at year-end and were a rare example of a Goldman executive discussing the company’s business in a public forum. The Real Estate Board session was open to the press.
After rising for decades, property values began falling last year as economic weakness and a global credit crisis began to take their toll.
Exposure to this weakening market could add to Goldman’s woes. The firm is already expected to report a fourth-quarter loss of $2 billion, driven by falling prices for a wide range of equity and fixed-income assets.
Goldman did not return calls seeking comment. Rothenberg, 45, who joined Goldman 21 years ago and has run the real estate unit since 2003, could not be reached for comment.
UPPING THE ANTE
One of the world’s biggest commercial property investors, Goldman’s real estate division has raised more than $26 billion from the bank, its executives and outside investors since 1991. Nearly $8 billion was invested in the past two years.
Whitehall participated in the buyout boom, acquiring real estate companies when property prices peaked, such as the June 2007 purchase of Equity Inns Inc for $1.3 billion.
Last February, a Whitehall fund purchased American Casino & Entertainment Properties, which includes the Stratosphere casino in Las Vegas, for $1.2 billion from billionaire Carl Icahn.
Rothenberg, 45, told his audience that beyond Whitehall, Goldman had been increasing its direct exposure to real estate through principal investments, which means putting its own balance sheet at risk.
Even within the Whitehall family, named for a Manhattan street near Goldman’s headquarters, the company was taking a bigger piece of the action and taking on more risk.
“The firm used to be 15 percent of the capital in each fund, then 20 percent of the capital in each fund, and then over the past few years it had been about 35 percent of the capital in each fund,” Rothenberg said.
The firm said in a recent regulatory filing that its employees contributed 36 percent of the $14 billion committed to five funds in 2007 and this year.
In addition, “we were investing a lot on balance sheet, so in each fund we carved out more and more so we could do them on balance sheet and get more and more exposure,” he said.
Those days are over, he said. Looking ahead, Rothenberg said Goldman would focus on buying debt.
“Right now our primary vehicle isn’t as much our traditional Whitehall equity fund or our traditional Goldman Sachs Capital Partners. It’s our senior loan fund; it’s our mezzanine fund,” he said.
Whitehall intends to put its $6 billion of equity to work buying up distressed real estate assets, he said. Goldman reported $3.9 billion of real estate investment exposure on its books at the end of August.
Real estate has long been a huge money maker for Wall Street, but in the past year sinking markets have created humbling losses for the most aggressive players.
Lehman Brothers went bankrupt in September, in no small part because of exposure to devalued real estate investments such as property developer Suncal Cos and Archstone-Smith, an apartment building real estate investment trust.
Morgan Stanley MS.N, one of the world's largest real estate investors, earlier this year suffered a $150 million hit from an investment in Crescent Real Estate.
Likewise, Whitehall is struggling with poor performance and potentially big losses on recent investments. The firm marked down equity in its $4.8 billion Whitehall 2007 fund by half, The Wall Street Journal reported Wednesday. (Editing by John Wallace)
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19736d520bc6b3e2a921b16bf75d544e | https://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSN1142999220080711 | US Treasuries' debt protection costs jump to record | US Treasuries' debt protection costs jump to record
By Reuters Staff1 Min Read
NEW YORK, July 11 (Reuters) - The cost to insure U.S. Treasury debt against default surged to a record on Friday on fears that the U.S. government may need to put capital into mortgage finance companies Fannie Mae FNM.N and Freddie Mac FRE.N, adding to government debt levels.
Investors are worried about increased Treasury debt supply after a report that the U.S. government may be considering a takeover of the two, which are country’s biggest mortgage finance companies.
The cost to insure Treasury debt with credit default swaps jumped to 16.5 basis points, or $16,500 per year for five years to insure $10 million in debt, from 8 basis points on Thursday, said an analyst. (Reporting by Karen Brettell; Editing by Tom Hals)
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40e464c5863290208efea52591be9080 | https://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSN1529735620080915 | UPDATE 2-Shareholders sue Merrill over proposed BofA deal | UPDATE 2-Shareholders sue Merrill over proposed BofA deal
By Reuters Staff3 Min Read
(Adds lawsuit filed vs Merrill, details and quotes)
NEW YORK, Sept 15 (Reuters) - Shareholders sued Merrill Lynch & Co Inc MER.N Chief Executive John Thain and the company's board of directors on Monday over the proposed buyout by Bank of America Corp BAC.N, claiming the terms of the deal are unfair.
The lawsuit, filed in New York State Supreme Court on behalf of a shareholder identified as Peter Miller and a class of investors, said the proposed $50 billion sale was “wrong, unfair and harmful to Merrill public stockholders.”
Merrill Lynch spokesman Mark Herr declined comment.
The lawsuit, filed by law firm Murray, Frank & Sailer LLP, described the woes of the subprime mortgage crisis and said Merrill’s attempt to mitigate its losses had failed.
It said Merrill’s public stockholders “have been and will continue to be denied the fair process and arm’s length negotiated terms to which they are entitled in a sale of their company.”
Earlier Monday, another law firm, Wolf Haldenstein Adler Freeman & Herz LLP, said it would file an investor lawsuit against both Merrill and Bank of America, which would become the biggest bank in the United States if the deal is approved by stockholders.
Merrill declined comment, and Bank of America representatives could not be reached immediately to comment.
The lawsuit, filed Monday afternoon as Wall Street swooned through its latest crisis, claimed Thain and the board “are in possession of nonpublic information concerning the financial condition of prospects of Merrill ... which they have not disclosed to Merrill public stockholders.”
It said the defendants “have clear and material conflicts of interest and are acting to better their own interests at the expense of Merrill public shareholders.”
The lawsuit includes requests that the defendants withdraw their consent to the sale of Merrill and that Merrill solicit competing bids.
Bank of America shares closed down 21.3 percent on Monday, wiping out about $33 billion of market value, while Merrill ended barely changed at $17.06, despite being valued in the deal at $29 each, a 70 percent premium to Friday’s close. (Reporting by Grant McCool, Edith Honan, Martha Graybow and Elinor Comlay; Editing by Andre Grenon and Jeffrey Benkoe)
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5a0f99040f32e89b4fd251a6c85d2d70 | https://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSN1721907020090917 | CBIC <CM.TO> to open third agency office in New York | CBIC <CM.TO> to open third agency office in New York
By Reuters Staff1 Min Read
WASHINGTON, Sept 17 (Reuters) - The Federal Reserve said on Thursday it approved the Canadian Imperial Bank of Commerce's CM.TO request to open a third agency in New York.
CBIC, based in Toronto, engages in a broad range of retail banking, commercial banking, private banking, asset management and investment banking.
The bank currently operates a branch in Chicago, two agencies in New York, and representative offices in Houston and Los Angeles, the Fed said.
Some agency activities in New York recently moved to 425 Lexington Ave., including real estate financing and commercial lending, necessitating this application to retain this location as an agency, the Fed said.
CBIC has total consolidated assets of about $309 billion and is Canada’s fifth largest bank by asset size. (Reporting by Nancy Waitz; editing by Jeffrey Benkoe)
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5bd10be93ac532aa3789c175419799f9 | https://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSN2253103620090526 | UPDATE 2-Freddie Mac to start new multifamily funding program | UPDATE 2-Freddie Mac to start new multifamily funding program
By Lynn Adler4 Min Read
(Adds investor comment)
NEW YORK, May 26 (Reuters) - Freddie Mac FRE.NFRE.P in June will expand mortgage funding for multifamily buildings with a new debt program, aimed at managing its risk and improving liquidity in a turbulent real estate sector, the second-largest U.S. home funding company said on Tuesday.
The government-controlled company has previously bought multifamily loans and held them in its investment portfolio rather than repackage them for sale to investors.
Freddie Mac plans to sell $1 billion of “K Certificates” backed by 62 recently originated multifamily mortgage loans. These are publicly offered senior securities with a Freddie Mac guarantee, as well as a privately placed subordinated class, Freddie Mac told Reuters.
“First and foremost, it’s about liquidity” to the mortgage market, David Brickman, vice president of Multifamily and CMBS Capital Markets for Freddie Mac, said in an interview.
“Certainly in the background is the recognition that going forward we’re going to have to be more focused on managing our capital, managing our risk, and working potentially within a constrained retained portfolio,” he added.
Freddie Mac and Fannie Mae FNM.NFNM.P, the top U.S. mortgage funding company that is also controlled by the government, are being relied upon heavily by the government to step up their mortgage purchases and help break the U.S. housing logjam. But the companies also have a federal mandate to start winding down their investments next year as a way of limiting risks to taxpayers.
Pricing for the new deal is expected between June 8 and June 11 through underwriters led by Deutsche Bank. Settlement is likely between June 18 and June 20.
A syndicate source did not immediately return phone calls.
“We have not seen a clear indication of price as of yet, or even what the collateral looks like. When we get more details, and can make a comparison to other multifamily or commercial offerings we will then make a decision on whether to buy some in the secondary markets,” said William Chepolis, a managing director at Deutsche Bank unit DWS Investments.
“My first reaction is this is the first of many offerings like this for both agencies -- a reason to be patient -- but first issues are usually priced aggressively so that the offering goes well,” he added
The multifamily loans backing the bonds were purchased specifically for the new securities program and never were in the investment portfolio.
The subordinated class represents 7.5 percent of the face value and has already been sold, Brickman said.
“We have sold the subordinate bond, so there is somebody buying unguaranteed bonds and buying into the credit story here,” he said.
This is an added layer of protection to Freddie Mac, as it sells off the riskier piece of the bonds, and to the other investors.
Although this deal has the backing of Freddie Mac, which has special government status, the company said the structure of this new security could be used by other issuers to open up funding in the ailing commercial mortgage market.
“This is a model that could be replicated by other large financial institutions as a way to bring structured finance back, as far as selling risk on the bottom and providing a guarantee and structure on the top,” Brickman said.
Historically, Freddie Mac has purchased at least $20 billion of multifamily loans annually. It hopes that as much as half of its purchases of this loan type going forward, as that market segment recovers, will be securitized through the new and potentially related programs.
Freddie Mac expects investors to include large money managers, life insurance companies and pension funds.
The program provides “critically needed support to the multifamily housing market during these difficult economic times,” Mike May, Freddie Mac senior vice president of Multifamily, said in a statement. (Additional reporting by Caryn Trokie in New York, Patrick Rucker in Washington)
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8be9191205b4fdd6e33c69602e2c5468 | https://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSN2434481320090324 | UPDATE 1-Geithner nonbank plan a power grab:House's Boehner | UPDATE 1-Geithner nonbank plan a power grab:House's Boehner
By Reuters Staff2 Min Read
(Adds Boehner quote, background)
WASHINGTON, March 24 (Reuters) - U.S. Treasury Secretary Timothy Geithner’s request for government authority to wind down failing non-bank financial firms is an unprecedented power grab, House Minority Leader John Boehner said on Tuesday.
“This is an unprecedented grab of power, and before that occurs, there ought to be a real debate about whether we should give that authority to the Treasury Secretary,” Boehner, an Ohio Republican, told reporters. There were many unanswered questions, he said, but stopped short of saying flatly that he would oppose the plan.
Geithner on Tuesday joined the Federal Reserve in calling for authority to wind down failing non-bank financial firms that threaten the financial system. He pointed to American International Group as an example of a non-bank institution that can pose systemic risks.
Geithner, in testimony to a House committee, said Congress should approve legislation giving the government the ability to step in to put a major institution under conservatorship and avoid a damaging bankruptcy.
But Boehner said that he was “a little concerned” about the idea of giving Treasury even more power, “with everything that is going on, in terms of the government involvement in the private sector.”
“You need to look at insurance operations as an example, that are regulated by states. What interest would the Treasury secretary have here, and why would he want this power?” Boehner asked after a meeting with other House Republicans.
Our Standards: The Thomson Reuters Trust Principles.
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c81211f8c5c8850e62516ffb6c9b0a69 | https://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSN2449998220081124 | Citigroup gets massive U.S. government bailout | Citigroup gets massive U.S. government bailout
By 7 Min Read
* Citigroup to issue $27 bln preferred stock, cut dividend
* U.S. to shoulder bulk of potential losses, CEO stays
* Stock soars as much as 72 pct, CDS prices cut in half
(Adds analyst, White House, Alwaleed comments; updates stock)
By Dan Wilchins and Jonathan Stempel
NEW YORK (Reuters) - The U.S. rescued Citigroup Inc C.N, agreeing to shoulder most losses on about $306 billion of the bank's risky assets, and inject new capital, bolstering investor hopes that the government will support big banks as the economy sinks into recession.
The bailout, announced late Sunday, gives the government the right to buy an equity stake, and marks its latest effort to contain a widening financial crisis that has already brought down Bear Stearns Cos, Lehman Brothers Holdings Inc LEHMQ.PK and Washington Mutual Inc WAMUQ.PK.
U.S. President George W. Bush called the bailout necessary “to safeguard our financial system,” and said the government would, “if need be,” make similar decisions in the future.
Shares of Citigroup rose 58 percent on Monday. The price of insuring Citigroup bonds against default fell by half.
“All in all, these actions should settle market jitters surrounding the company for now,” CreditSights Inc analyst David Hendler wrote.
The bailout could also boost investor confidence in the largest U.S. banks, which are expected to suffer billions of dollars in credit losses in the coming quarters.
“The government is trying to restore trust to the financial system. There are big banks that are central to the economy that the government will support,” said Thomas Russo, portfolio manager at Gardner Russo & Gardner, which does not own Citigroup shares.
Bank of America Corp BAC.N rose 27.2 percent to $14.59, JPMorgan Chase & Co JPM.N advanced 21.4 percent to $27.58, and Wells Fargo & Co WFC.N rose 20 percent to $26.02, all on the NYSE.
The package gives Chief Executive Vikram Pandit more time to shed assets, slash payroll and boost efficiency after soaring losses from toxic debt led to $20.3 billion in losses in the last year. Analysts expect billion of dollars of further losses. Pandit became CEO in December.
Pandit “deserves a vote of confidence,” Saudi Prince Alwaleed bin Talal, Citigroup’s largest individual investor, told CNBC television. “I am personally committed to Citigroup. No doubt about that.” Alwaleed agreed last week to increase his Citigroup stake to 5 percent from less than 4 percent.
The stock rose $2.18, or 58 percent, to close at $5.95 on the New York Stock Exchange, where it jumped as high as $6.50. The annual cost to insure $10 million of Citigroup debt against default for five years fell to about $240,000 from $500,000.
Still, not every investor was as gung-ho on the decision to let Pandit keep his job.
“You’re seeing an inept management team being rewarded by the U.S. government,” said William Smith, whose Smith Asset Management in New York has seen its Citigroup stock plunge in value over the years.
PLUNGING SHARES
Citigroup received the latest government infusion, which includes a $20 billion capital injection, after its shares plunged 60 percent last week amid growing concern it would need large amounts of capital to survive the recession. and less than a week after it set plans to slash 52,000 jobs, leaving it with 300,000 employees.
The $20 billion of government capital comes after the U.S. injected $25 billion last month. In this round, the government is buying preferred stock that will pay an 8 percent dividend.
In exchange for the bailout, Citigroup slashed its quarterly dividend to a penny per share from 16 cents. It cannot raise the payout for three years without U.S. consent.
Even so, taxpayers are now on the hook for nearly $250 billion in potential losses in the $306 billion portfolio, including commercial real estate loans, leveraged loans, and other assets, representing 15 percent of Citigroup’s $2.05 trillion balance sheet.
Citigroup will absorb the first $29 billion in losses on the $306 billion portfolio, plus 10 percent of additional losses, for a maximum total exposure of $56.7 billion. The Treasury Department, the Federal Deposit Insurance Corp and the Federal Reserve would absorb the rest.
In return, Treasury and the FDIC will get $27 billion in preferred shares, of which $7 billion are a fee that Citigroup pays in exchange for the government guarantee.
The government is also getting warrants to buy $2.7 billion in Citigroup common stock at $10.61 per share for a potential stake of about 4.5 percent. That’s on top of the roughly 3.3 percent the government is entitled to buy under a previous deal.
“To stabilize the equity, we had to put behind us the issue of Citigroup’s ability to withstand whatever would come,” Chief Financial Officer Gary Crittenden said in an interview on Monday.
Citigroup estimated the injection will give it a Tier 1 capital ratio of 14.8 percent, more than twice what the government requires. The government also increased Citigroup’s access to the Fed’s discount window, adding liquidity.
TEMPLATE
The Fed, the Treasury Department and the FDIC called the actions “necessary to strengthen the financial system and protect U.S. taxpayers and the U.S. economy.”
Citigroup has one of the farthest international reaches of any U.S. bank, with operations in more than 100 countries. Investors have long speculated the government deemed it too big to fail because a collapse could cause global financial havoc.
The government package may become a template for other U.S. banks expected to face growing losses as the economy contracts. Losses once concentrated in mortgages are bleeding into other areas such as credit cards and commercial real estate.
The rescue magnifies the U.S. government's burden following bailouts of insurer American International Group Inc AIG.N, Bear Stearns and mortgage finance giants Fannie Mae FNM.N and Freddie Mac FRE.N. Treasury also has injected more than $300 billion into banks and other financial institutions.
Already, more than $1 trillion of taxpayer money is at risk, and the Big Three automakers are seeking $25 billion more to avert bankruptcy. President-elect Barack Obama may also seek up to $700 billion for economic stimulus.
Earlier this month, U.S. Treasury Secretary Henry Paulson said a $700 billion industry rescue package to soak up toxic assets from troubled banks, like Citigroup, will instead only be used to inject capital into banks.
That decision sent mortgage and other debt markets into a steep decline.
The bank’s market value on Friday was just $20.5 billion, down from more than $270 billion two years ago -- and even below the $25 billion initial U.S. capital injection.
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0e73ef267438d4c6c80b48bb97e98f68 | https://www.reuters.com/article/rbssFoodDistribution%20&%20Convenience%20Stores/idUSLH48383320090217 | Tesco sets size on euro, sterling bonds -IFR | Tesco sets size on euro, sterling bonds -IFR
By Reuters Staff2 Min Read
LONDON, Feb 17 (Reuters) - Tesco Plc TSCO.L, Britain's biggest retailer, has tightened guidance and set the sizes on its planned three-tranche bond issue, IFR reported on Tuesday.
The six-year euro bond will be 600 million euros ($759 million), with guidance now mid-swaps plus 235 basis points.
This is tighter than initial guidance of mid-swaps plus around 250 basis points, said IFR Markets, a Thomson Reuters online news and market analysis service.
The two sterling bonds will be a 600 million pound ($849 million) five-year issue and a 900 million pound 13-year issue, IFR said.
Guidance on the five-year bond is gilts plus 250 basis points, tighter than initial guidance of gilts plus 255-265 basis points.
Guidance on the 13-year is gilts plus 250 basis points, also tighter than initial guidance of gilts plus 255-265 basis points, IFR said.
Tesco has appointed BNP Paribas, Citigroup, Deutsche Bank and J.P. Morgan to manage the issue, IFR said.
Tesco, rated A- by Standard & Poor’s, A3 by Moody’s Investors Service and A- by Fitch Ratings, plans to use the proceeds to refinance some short term debt. (Editing by Dan Lalor)
Our Standards: The Thomson Reuters Trust Principles.
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3f265c61289aad3367181b0724c72c23 | https://www.reuters.com/article/rbssHealthcareNews/idUKL1625397020080616?edition-redirect=uk | Novo says study shows weight loss from liraglutide | Novo says study shows weight loss from liraglutide
By Reuters Staff2 Min Read
STOCKHOLM, June 16 (Reuters) - Denmark's Novo Nordisk NOVOb.CO said on Tuesday its biggest new drug hope, liraglutide, led to significant weight loss in obese people treated over one year.
Monday’s results were from a 32-week open-label extension of a 20-week Phase II study on which Novo Nordisk released data in November last year.
After 52 weeks, a once-daily quantity of liraglutide at the highest dose led to a weight loss of around 7.5 to 8.0 kg and a placebo-adjusted weight loss of around 5.5 to 6.0 kg, Novo said in a statement.
The weight loss after 20 weeks was just above 7 kg and 4.5 kg placebo-adjusted, the Danish group said, and compared with just above 4 kg in a group treated with Roche Holding AG's ROG.VX obesity drug Xenical, or orlistat.
“The results of the extension of the Phase II obesity study clearly demonstrates that liraglutide has a sustained ability to reduce body weight while at the same time providing protection against deteriorating glycaemic control,” Novo Nordisk Chief Science Officer Mads Thomsen said.
The Danish group expects to initiate a Phase III programme in obese people without diabetes before the end of this year. (Reporting by Kim McLaughlin; Editing by David Holmes)
Our Standards: The Thomson Reuters Trust Principles.
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4b256ca100cbac3ef6f0c63a3cd60cc1 | https://www.reuters.com/article/rbssHealthcareNews/idUKN2213705220090122?edition-redirect=uk | Worm gene offers clues to nerve cell repair -study | Worm gene offers clues to nerve cell repair -study
By Reuters Staff3 Min Read
CHICAGO, Jan 22 (Reuters) - Researchers believe they have found a potential way to regenerate nerves by stimulating a gene and said on Thursday they hope their work in worms may some day help people with spinal cord injuries.
The gene is part of a network, or pathway, of four genes that appear to be essential for nerve repair, they reported in the journal Science.
“We found a pathway that not only regenerates nerves in the worm, but also exists in humans, and we think it serves the same purpose,” Michael Bastiani of the University of Utah in Salt Lake City, who led the study, said in a statement.
Bastiani said the gene could serve as a target for a future drug that could “vastly improve the ability of a neuron to regenerate after injury.”
In humans, nerve fibers in the arms and legs can regenerate, but in the brain and spinal cord, they do not. Many teams are working to understand why.
Bastiani’s team looked to nematode worms for clues. Using an advanced research technique called RNA interference, the team systematically blocked the action of 5,000 worm genes to isolate those important for nerve repair.
They found a gene called dlk-1 was essential to the process at every stage of the worm’s life.
When they used genetic engineering to block this gene network, the worms were unable to repair nerve damage.
But when they stimulated the gene -- making it more active than normal -- worms with damaged nerves recovered much more quickly.
Curiously, this network of genes is not used by the nervous system during normal development in the embryo, but it is essential for nerve repair after birth. “Most of us believed that virtually everything we found in regeneration also would be involved in development,” Bastiani said.
Bastiani and colleagues noted that to be effective, the dlk-1 gene must be stimulated soon after injury to make a protein that stimulates repair, suggesting there might be “a time window in which you have to activate this pathway.”
Many teams have been working on finding ways to block proteins that inhibit nerve repair in adults.
Last year, a team at Children’s Hospital Boston reported in the journal Science they were able to stimulate nerve regeneration in mice with damaged optic nerves by turning off proteins that keep adult nerve cells from growing.
A separate team from the biotechnology firm Genentech Inc DNA.N was able to stimulate nerve regeneration by blocking chemical signals that create a hostile environment for nerve repair.
Editing by Maggie Fox; Editing by Cynthia OstermanOur Standards: The Thomson Reuters Trust Principles.
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ff882b103cb02479daa9cce526696661 | https://www.reuters.com/article/rbssHealthcareNews/idUSBNG51405520090630 | UPDATE 4-GE teams up with Geron for stem-cell research | UPDATE 4-GE teams up with Geron for stem-cell research
By 5 Min Read
* To focus on human embryonic stem cells
* Products would be used to test developing drug safety
* Technology is controversial in United States
* Geron shares surge (Adds quote, paragraphs 12-13)
By Scott Malone
BOSTON, June 30 (Reuters) - General Electric Co GE.N is teaming up with U.S. biotech company Geron Corp GERN.O to use stem cells to develop products that could give drug developers an early warning of whether new medicines are toxic.
The venture is the largest U.S. conglomerate’s most direct attempt to make a commercial products from human embryonic stem cells. Scientists say the cells hold great medical promise, but their use has been highly controversial in the United States.
Embryonic stem cells are the body’s master cells and can grow into various types of human tissue, such as skin or internal organs.
GE and Geron aim to use an existing batch of stem cells to develop sample human cells that drug companies could use to test the toxicity of new drugs early in the development process, before they are ready for animal testing or human clinical trials.
The venture would not sell actual stem cells, but rather heart or liver cells derived from stem cells, said Konstantin Fiedler, general manager of cell technologies at GE Healthcare.
“This could replace, to a large extent, animal trials,” Fiedler said in a telephone interview. “Once you have human cells and you can get them in a standardized way, like you get right now your lab rats in a standardized way, you can actually do those experiments on those cells.”
Fiedler emphasized the products are still in an early development stage. GE estimated it would have the first commercial cells ready next year.
Geron shares surged 15 percent after the news of its deal with the Fairfield, Connecticut-based company, which has made expanding its healthcare operation a major push this year.
POTENTIAL, CONTROVERSY
Scientists say that research on embryonic stem cells, which are the most malleable, has enormous potential to develop treatments for cancer and other diseases [ID:nN08329064].
But using stem cells derived from days-old human embryos has been controversial in the United States, where opponents say the destruction of any embryo is wrong. The Obama administration in March lifted a Bush-era decision that had forbidden federally funded researchers to work with the embryonic cells.
GE’s stepping up its presence in stem cell research could boost the field’s standing, advocates said.
“What I read this to be is validation that human embryonic stem cell research is moving through the pipeline as it should be and what once were promising theoretical ideas are now getting closer and closer to being ideas in practice,” said Amy Comstock Rick, president of the Coalition for the Advancement of Medical Research, a group that advocates stem-cell research.
GE will fund the research and manufacturing and sell any resulting products, while Menlo Park, California-based Geron will open up to GE its extensive database covering the growth of and differentiation of existing human embryonic stem cells.
The companies did not disclose the financial terms of the arrangement. Fiedler said it was too early to estimate the revenue the project might generate.
Needham analyst Mark Monane, who follows Geron, wrote in a note to clients that the financial terms were likely “modest,” but added: “The value of the opportunity lies in the quality of the partner.”
In May, GE reached a deal with Cytori Therapeutics Inc CYTX.O to commercialize that company's StemSource product.
GE has had since 2005 a policy to do research on stem cells, while following all U.S. and applicable laws, but had not tried to commercialize a product from them, Fiedler said.
Geron shares rose 98 cents to close at $7.67 on the Nasdaq, while GE closed down 4 cents at $11.72 on the New York Stock Exchange.
Smaller U.S. companies including StemCells Inc STEM.O and Aastrom Biosciences Inc ASTM.O and Osiris Therapeutics Inc OSIR.O have focused on stem-cell research, although the technology has also caught the attention of drug giants such as No. 1 Pfizer Inc PFE.N, which last year quietly launched a stem cell initiative. (Reporting by Scott Malone in Boston, additional reporting by Esha Dey in Bangalore; Editing by Lisa Von Ahn and Andre Grenon and Carol Bishopric)
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a4b9bcc812eddeaa66f333251dc61ef0 | https://www.reuters.com/article/rbssHealthcareNews/idUSN0224498220081002 | UPDATE 2-Merck ends development of obesity drug taranabant | UPDATE 2-Merck ends development of obesity drug taranabant
By Lewis Krauskopf4 Min Read
(Adds analyst comment, background, byline; updates shares)
NEW YORK, Oct 2 (Reuters) - Merck & Co MRK.N has stopped development of its experimental obesity drug taranabant after data in a late-stage clinical study found more side effects at higher doses, the drug maker said on Thursday.
Though a potential blockbuster, taranabant had been considered a risky project because the drug comes from the same class as Sanofi-Aventis' SASY.PA Acomplia, which has failed to reach the U.S. market.
Shares of Merck, whose stock has suffered this year largely because of setbacks to its cholesterol treatments, were flat in morning trading amid a slight rise among drug stocks.
“I think expectations for the drug were pretty low across the board given what happened to (Acomplia),” said Edward Jones analyst Linda Bannister, who had not included any taranabant revenue in her financial models for Merck.
Taranabant's cancellation underscores the difficulties in developing successful medicines in the obesity field, which is littered with high-profile flameouts. Just this week, Pfizer Inc PFE.N disclosed it was exiting obesity research.
The side effects at issue with taranabant were psychiatric, including anxiety and depression, Merck spokeswoman Amy Rose said. Acomplia has been linked to suicidal thoughts and depression.
Merck still plans to present data for taranabant at a major obesity conference that begins this weekend.
“Available Phase III data showed that both efficacy and adverse events were dose related, with greater efficacy and more adverse events in the higher doses,” John Amatruda, Merck’s senior vice president and research head for diabetes and obesity, said in a statement.
“Therefore, after careful consideration, we determined that the overall profile of taranabant does not support further development for obesity.”
Taranabant and Acomplia, also known as rimonabant, work by blocking cannabinoid receptors in the brain. They are the same receptors that make people hungry when smoking marijuana.
In March, Merck released interim data from a pivotal clinical trial that showed obese patients treated with a low dose of taranabant lost a significant amount of weight, but there were side effects.
After one year, and in combination with diet and exercise, patients given a 2 mg dose lost an average of 14.5 pounds (6.6 kg), compared with 5.7 pounds for the placebo group, with weight leveling off after 36 weeks.
Amatruda said at the time that Merck intended to file this year for U.S. regulatory approval of taranabant, although the company said in its quarterly filing in July that it was reviewing its filing plans.
“Because obesity is such a huge unmet medical need, it could have been a pretty large drug if it were to have worked,” Bannister said. “But we were just always very conservative because we understood some of the potential safety issues associated with this class of drugs.”
Hopes for Acomplia, which Sanofi sells in Europe, dimmed last year when a U.S. expert panel recommended against its approval, after it was linked to rare cases of suicidal thoughts.
Merck shares were unchanged at $32.09 on morning trading on the New York Stock Exchange. The shares have slumped some 45 percent this year. (Editing by Steve Orlofsky and Maureen Bavdek)
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697fa1f32623888080572ba7f64a364a | https://www.reuters.com/article/rbssHealthcareNews/idUSN1835848620090518 | UPDATE 1-Amgen CEO says threat from biosimilars not absolute | UPDATE 1-Amgen CEO says threat from biosimilars not absolute
By Ransdell Pierson3 Min Read
* Smart biotechs may stem damage from biosimilars
* Sensipar kidney drug could get big boost from study
(Adds details on Amgen, rival drugs, byline)
NEW YORK, May 18 (Reuters) - The chief executive of Amgen Inc AMGN.O forecast on Monday that "smart" biotechnology companies may be able to retain up to half the sales of their drugs once they face competition from cheaper so-called biosimilars.
Kevin Sharer, speaking to investors at Deutsche Bank AG’s annual healthcare conference, said he believed that longer- term, some biotechnology companies “can sustain 30 percent to 50 percent of cash flow from products if they’re smart competitors.”
He said that was considerably better than conventional medicines facing generic competition, meaning pills made of chemicals combined together rather than grown from living cells -- as is the case with biotechnology drugs.
Conventional drugs can lose up to 90 percent of their sales within a year once they face generic competition, in part because many companies often begin selling heavily discounted copycat formulations. By contrast, relatively few companies are now capable of making generic forms of biotech drugs, referred to as biosimilars or biogenerics.
European regulators recently approved biosimilar forms of two Amgen drugs, Epogen for anemia and Neupogen, used to boost infection-fighting white blood cells in patients on chemotherapy. The two drugs are not facing biosimilar competition in the lucrative U.S. market.
Sharer did not forecast how well Epogen and Neupogen would fare as competition from the biosimilars intensified this year, but his comments suggested he is confident they would not fall off the map.
The first-quarter global sales of Epogen, an older version of Amgen’s Aranesp brand used primarily in kidney dialysis patients, rose 2 percent to $565 million. But that was still well below the $607 million analysts were expecting.
Combined global sales of Neupogen and Amgen’s newer white blood cell booster, Neulasta, fell 1 percent to $1.07 billion, shy of Wall Street estimates of $1.17 billion.
Sharer said the company’s Sensipar drug for kidney failure patients could get a big sales lift if it proves able in an ongoing study to reduce calcification in blood vessels.
Sensipar now has sales potential “close to a blockbuster drug,” Sharer said, meaning annual sales could approach $1 billion. But he said its sales could grow far beyond that if the anti-calcification study succeeds.
Sensipar sales rose 11 percent in the first quarter to $148 million. (Reporting by Ransdell Pierson; Editing by Andre Grenon)
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e5725441134567dac93a92e706787803 | https://www.reuters.com/article/rbssHealthcareNews/idUSN1934681720081119?feedType=RSS&feedName=rbssHealthcareNews&rpc=22&sp=true | US teen lives 118 days without heart | US teen lives 118 days without heart
By Jim Loney3 Min Read
MIAMI, Nov 19 (Reuters) - An American teen-ager survived for nearly four months without a heart, kept alive by a custom-built artificial blood-pumping device, until she was able to have a heart transplant, doctors in Miami said on Wednesday.
The doctors said they knew of another case in which an adult had been kept alive in Germany for nine months without a heart but said they believed this was the first time a child had survived in this manner for so long.
The patient, D’Zhana Simmons of South Carolina, said the experience of living for so long with a machine pumping her blood was “scary.”
“You never knew when it would malfunction,” she said, her voice barely above a whisper, at a news conference at the University of Miami/Jackson Memorial Medical Center.
“It was like I was a fake person, like I didn’t really exist. I was just here,” she said of living without a heart.
Simmons, 14, suffered from dilated cardiomyopathy, a condition in which the patient’s heart becomes weakened and enlarged and does not pump blood efficiently.
She had a heart transplant on July 2 at Miami’s Holtz Children’s Hospital but the new heart failed to function properly and was quickly removed.
Two heart pumps made by Thoratec Corp THOR.O of Pleasanton, California, were implanted to keep her blood flowing while she fought a host of ailments and recovered her strength. Doctors implanted another heart on Oct. 29.
“She essentially lived for 118 days without a heart, with her circulation supported only by the two blood pumps,” said Dr. Marco Ricci, the hospital’s director of pediatric cardiac surgery. During that time, Simmons was mobile but remained hospitalized.
When an artificial heart is used to sustain a patient, the patient’s own heart is usually left in the body, doctors said.
In some cases, adult patients have been kept alive that way for more than a year, they said.
“This, we believe, is the first pediatric patient who has received such a device in this configuration without the heart, and possibly one of the youngest that has ... been bridged to transplantation without her native heart,” Ricci said.
Simmons also suffered renal failure and had a kidney transplant the day after the second heart transplant.
Ricci said her prognosis was good. But doctors said there is a 50 percent chance that a heart transplant patient will need a new heart 12 or 13 years after the first surgery. (Editing by Cynthia Osterman)
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c286f3a21d10aaaf121500c0755cbd50 | https://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idINJKF00025920090806?edition-redirect=in | Indonesia's Inco says protesters lift mine blockade | Indonesia's Inco says protesters lift mine blockade
By Reuters Staff1 Min Read
JAKARTA, Aug 6 (Reuters) - Indonesia's PT International Nickel Indonesia INCO.JK said on Thursday that protesters have lifted blockade of road leading to its nickel mine in Sulawesi island.
A company spokesman also said the firm would continue negotiations with local villagers next week who had closed the road in a protest over job cuts.
Reporting by Telly Nathalia; Writing Fitri Wulandari; Editing by Ed DaviesOur Standards: The Thomson Reuters Trust Principles.
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738f8bea88db815f072be631a36ec2ce | https://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idINN1513314120100316?edition-redirect=in | US Navy request raises issue about aluminum ships | US Navy request raises issue about aluminum ships
By Andrea Shalal-Esa5 Min Read
* Navy officials say not concerned about Austal ships
* Analysts question Navy move shortly before LCS award
WASHINGTON, March 16 (Reuters) - The U.S. Navy is seeking an analytical tool to predict problems with aluminum-hulled ships just months before it is due to announce the winner of the Littoral Combat Ship competition involving such a ship.
In a little-noticed solicitation posted on a Navy website in January, the Navy said it needed better tools to predict possible cracking on aluminum-hulled ships, especially under difficult conditions at sea. Replies are due by March 24.
The solicitation is one of about 40 research projects aimed at small businesses, and Navy officials say it does not reflect any concern about the aluminum multi-hulled Littoral Combat Ship being built by the U.S. unit of Australia's Austal ASB.AX in Mobile, Alabama.
The solicitation is one of about 40 research projects aimed at small businesses, and Navy officials say it does not reflect any concern about the aluminum multi-hulled Joint High Speed Vessel or Littoral Combat Ships being built by the U.S. unit of Australia's Austal ASB.AX in Mobile, Alabama.
“We’re confident that the JHSV and the aluminum variant of the LCS will meet all the operational requirements that are out there,” said Navy Commander Victor Chen.
“We already have a level of confidence in how to work with aluminum. The Office of Naval Research is trying to expand the knowledge base and build on what we already know,” he said.
But congressional sources and defense analyst said the solicitation raised questions about the depth of the Navy’s knowledge about the new shipbuilding material just months before it could pick the Austal design for over 55 warships.
Aluminum is often used to build high-speed ferries and similar vessels, but it is a new material for the Navy, which has long relied on steel-hulled ships.
“It’s hard to understand how the Navy could consider selecting a design that it says it doesn’t understand very well,” said defense analyst Loren Thompson of the Virginia-based Lexington Institute.
Austal's three-hulled aluminum warship is competing with Lockheed Martin Corp's LMT.N more traditional steel mono-hull ship, for over $5 billion in orders for 10 more additional LCS ships. Bids are due on April 12, and the Navy is expected to pick a single winner by July.
Lockheed and Austal, teamed with General Dynamics Corp GD.N, have already delivered one ship of each design to the Navy, and both companies are working on a second ship.
“It’s surprising that they would say at this point in the evolution of the program that they don’t understand how aluminum might operate under certain difficult conditions,” Thompson said.
Lockheed has argued that its steel monohull design would be easier to build and repair at shipyards around the world, which are not as well versed in working with aluminum.
EXTREME LOADING EVENTS
In the solicitation, the Navy said it was facing “great challenges” in picking appropriate analytical tools and validation procedures to assure the performance and integrity of the aluminum ship structure in the presence of “unexpected extreme loading events” such as wave-slamming.
Testing actual structures and then certifying them was costly and would reduce the Navy’s ability to achieve an optimal design, it said.
“They’re admitting that they don’t have a way of rapidly assessing the risks that a specific ship design for an aluminum ship might pose,” said one congressional source, who was not authorized to speak on the record.
The Navy’s solicitation could factor into possible protests or challenges to an eventual contract award in the competition, which is being closely watched by lawmakers keen to maintain high-paying shipbuilding jobs in their districts.
Lieutenant Commander Chris Servello, a spokesman for the Naval Surface Forces, Pacific, said no specific incident with Independence, the aluminum trimaran LCS built by General Dynamics and Austal, had triggered the Navy posting.
“To date, the testing on LCS-2 hasn’t revealed any wave-slamming or any other issues or problems with the make-up of the hull,” he said.
Bill Pfister, vice president of external affairs for Austal, also downplayed the importance of the Navy solicitation, saying its emergence was clearly aimed at “clouding” the current heated competition for the LCS design.
He said there had been no incidents of concern regarding the hull structure of Independence, and the Navy had installed sensors several years ago on a similar ship built by Austal, that operates as a ferry in the Canary Islands, to monitor the performance of the aluminum hull.
“We are not concerned about Independence or any other derivative hull form of the ships that we build, Pfister said. “This does not raise any questions about the capability of the Independence aluminum trimaran hull form,” he said. (Reporting by Andrea Shalal-Esa; Editing by Tim Dobbyn)
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abb2114ce0572e52fdcf4140b1e0f74b | https://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idINTOE62P04E20100326?edition-redirect=in | China express train forces airlines to stop flights | China express train forces airlines to stop flights
By Reuters Staff2 Min Read
BEIJING, March 26 (Reuters) - A new high-speed rail link between two inland Chinese cities has cut travel times so dramatically that all competing air services on the route have been suspended, state media said.
The suspension of flights between the gritty industrial city of Zhengzhou and Xian, home of the Terracotta Warriors, came just 48 days after the express railway began operations, the official Xinhua news agency said on Friday.
The 505 km (314 miles) railway, on which trains run at a top speed of 350 km per hour, has cut the travel time between the two cities from more than six hours to less than two, the report said. By contrast, flying takes just over an hour. Xian’s airport is also located at least an hour away by road from downtown.
Before the railway opened, Joy Air, one of the domestic airlines flying the route, managed to sell an average of more than 60 percent of seats for the route, Xinhua said.
Zhengzhou airport confirmed that all flights to and from Xian had now stopped, the report added.
China is spending billions of dollars on a network of high-speed railways, including one from Beijing to the country’s financial capital Shanghai, posing a challenge to airlines which had profited from China’s vast size and slow roads and trains.
By 2012, China would have more than 13,000 km of high-speed railway, Xinhua said.
"By then, 60 percent of China's domestic air market will be affected by the high-speed railways," Liu Chaoyong, general manager of China Eastern Airlines 600115.SS0670.HK, was quoted as saying.
China Eastern last year agreed to sell 35 percent of Joy Air, in which it held 40 percent, to state-owned Aviation Industry Corp of China. [ID:nSHA152165]
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fb798f91f0efebcc2edd37c141e61500 | https://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUKBOM34121620090505?edition-redirect=uk | UPDATE 1-India's Larsen, EADS unit form defence JV | UPDATE 1-India's Larsen, EADS unit form defence JV
By Reuters Staff2 Min Read
(Adds details, share price)
MUMBAI, May 5 (Reuters) - India's Larsen & Toubro LART.BO and the defence and security division of Europe's EADS EAD.PA will form a joint venture to make defence electronics in India, eyeing orders from a modernising Indian army.
The joint venture will focus on design and development of electronic warfare, radar, military avionics and mobile systems for military applications for India and rest of the world, India’s largest engineering and construction firm and EADS said in a statement.
By 0600 GMT, Larsen shares were up 2.9 percent in a Mumbai market .BSESN down 0.2 percent.
The joint venture is subject to approval by the Indian government, the statement said.
“The Indian defence and security market is growing fast and we want to grow with it,” Stefan Zoller, chief executive of EADS Defence & Security said in the statement. India is among the largest buyers of defence equipment as it plans to spend more than $30 billion over the next five years to modernise its largely Soviet-era weapons systems and is also launching its first military spy satellite next year. [ID:nDEL477811]. (Reporting by Prashant Mehra; Editing by Anshuman Daga)
Our Standards: The Thomson Reuters Trust Principles.
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5f3c1adccabb6da13675d771c309d2b3 | https://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUKL389608020090303?edition-redirect=uk | Alitalia to lose 200 mln euros in 2009-CEO | Alitalia to lose 200 mln euros in 2009-CEO
By Reuters Staff1 Min Read
ROME, March 3 (Reuters) - Italian airline Alitalia, which was privatised and relaunched in January, expects to lose 200 million euros this year, its chief executive said on Tuesday.
The airline, which is now a slimmed-down carrier with a smaller capacity owned by a group of Italian investors and Air France-KLM AIRF.PA, was on track to losing 1 billion euros on an operating basis in 2008, the commissioner overseeing its bankruptcy has previously said.
Alitalia’s passenger numbers dropped sharply after its January relaunch but the situation has improved since then, CEO Rocco Sabelli said at a conference.
“We had a terrible first three to four weeks,” he said, adding that the airline did not cancel any flights despite the fall in bookings.
“After those terrible three weeks we began to do better even if we’re not filling the aircraft as much as we would like,” he said.
Air France-KLM has a 25 percent stake in Alitalia.
Reporting by Alberto SistoOur Standards: The Thomson Reuters Trust Principles.
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6a92837736f68083e9a322f54713488e | https://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUKN2930781720090129?edition-redirect=uk | US Postal Service mulls 5-day-a-week delivery | US Postal Service mulls 5-day-a-week delivery
By Reuters Staff3 Min Read
WASHINGTON, Jan 29 (Reuters) - The financially squeezed U.S. Postal Service is asking reluctant lawmakers to lift a 26-year-old requirement that it deliver mail six days a week.
Postmaster General John Potter made the surprise request at a U.S. congressional hearing on Wednesday, saying it may have to cut deliveries to five days a week.
The proposal may have little impact on rival U.S. package delivery giants United Parcel Service Inc UPS.N and FedEx Corp FDX.N. Both companies carry express mail for the U.S. Postal Service under contract.
Analysts said if the overall volume of mail remained unchanged, it would not matter to UPS or FedEx whether the postal service delivered mail five or six days a week.
Democratic Senator Tom Carper, who chaired the hearing, would like to see the Postal Service explore other options, his spokeswoman said on Thursday.
The Postal Service has been facing shrinking revenues due to reduced mail volume, largely because of rising electronic communications and the rising costs of delivering mail.
At Wednesday’s hearing, Potter said: “It could become necessary to temporarily reduce mail delivery to only five days a week.
“Toward this end, I reluctantly request that Congress remove” an annual requirement dating back to 1983 that it deliver mail six days a week,” he said.
OPTIONS
Potter did not specify a day to possibly stop service. While some have suggested in the past halting Saturday deliveries, doing so would mean a buildup of mail every weekend since there is already no delivery on Sundays.
Earlier postal-service studies examined the possibility of halting delivery on days when mail is relatively slow, such as Tuesdays.
Potter asked Congress to ease a multibillion-dollar requirement that it prepay health benefits for future retirees without removing its obligation to provide such coverage.
Carper said reducing mail delivery “wouldn’t be his first choice as a means to cut losses” and would prefer a rescheduling of health payments, his spokeswoman said.
She said Carper would like to see the postal service become more efficient without any cuts in its workforce.
Keith Schoonmaker, an analyst at Morningstar, said he saw limited scope for either UPS or FedEx taking business from the U.S. Postal Service, especially during a recession. Both UPS and FedEx have reported that some customers have switched from higher cost air express services to slower ground delivery services to save money in the downturn.
“It’s hard to imagine that people will pay a premium for mail they’re currently sending first class to have it shipped by FedEx or UPS,” Schoonmaker said. “I don’t see this (five-day delivery) having any material impact on either company.”
UPS is the world's largest package delivery company. Deutsche Post AG DPWGn.DE unit DHL will halt its U.S. domestic package service on Jan 30.
Reporting by Thomas Ferraro in Washington and Nick Carey in Chicago; Editing by Howard GollerOur Standards: The Thomson Reuters Trust Principles.
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bc33dacacd07d69ef3a336d95221d88a | https://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSDEL44606620091019 | India state calls meet to speed $40 bln steel projects | India state calls meet to speed $40 bln steel projects
By Reuters Staff2 Min Read
BHUBANESWAR, India, Oct 19 (Reuters) - Indian authorities have called an urgent meeting this week to discuss ways to speed up $40 billion steel projects delayed by mass farmer protests in an eastern state, officials said on Monday.
Authorities in the mineral-rich state of Orissa have signed contracts with 49 companies for steel plants in the state in the last five years, but protests by farmers and legal hurdles have delayed more than 20 such projects.
Some of the bigger proposals include a $12 billion plant by South Korean steelmaker POSCO 005490.KS, a 6-million tonne steel project by TATA Steel Ltd TISC.BO, and a 12-million-tonne steel project by Arcelor-Mittal ISPA.ASMT.N.
“We will discuss all the pending issues regarding setting up of steel industries in Orissa,” T.K. Mishra, a top government official told Reuters.
Officials said they would discuss how to win over farmers, including alternative sites for some plants and improved compensation.
Indian Steel Secretary P.K. Rastogi told reporters in New Delhi that the focus at the meeting would be on the ArcelorMittal and POSCO plant -- India’s biggest foreign direct investment.
The POSCO project has been delayed by more than two years due to the protests.
The situation in Orissa reflects a larger standoff between industry and farmers unwilling to give up land and water in India, where two-thirds of the population depend on agriculture for a living. (Reporting by Jatindra Dash; Writing by Bappa Majumdar; Editing by Ron Popeski)
Our Standards: The Thomson Reuters Trust Principles.
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cd7ad5131a65812df925995d07d85589 | https://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSJAK37354620090806 | Indonesia villagers block roads to Inco nickel mine -witnesses | Indonesia villagers block roads to Inco nickel mine -witnesses
By Reuters Staff1 Min Read
SOROWAKO, Indonesia, Aug 6 (Reuters) - About 500 Indonesian villagers have blocked roads leading to a nickel mine operated by PT International Nickel Indonesia INCO.JK on Indonesia's Sulawesi island, Reuters witnesses said on Thursday.
The villagers blocked the roads because of concerns about job cuts at the mine after INCO recently announced plans to cut 87 jobs. (Reporting by Yusuf Ahmad in Sorowako and Fitri Wulandari in Jakarta, editing by Sara Webb)
Our Standards: The Thomson Reuters Trust Principles.
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ef16324c307e11ac1af8f8ecc362f79a | https://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSJAK40333220090811 | Inco says protest ends at Indonesian nickel mine | Inco says protest ends at Indonesian nickel mine
By Reuters Staff2 Min Read
JAKARTA, Aug 11 (Reuters) - Villagers at a Sulawesi mine operated by PT International Nickel Indonesia Tbk INCO.JK have ended a protest over jobs after reaching an agreement with Inco, the company said on Tuesday.
Last month, Inco said it planned to cut 87 jobs, or nearly 3 percent of its workforce, to reduce costs in response to the global financial crisis, which has reduced demand for stainless steel and thus nickel, a key input.
Hundreds of villagers had blocked a road to Inco’s mine in Sorowako, South Sulawesi, since last week over concerns there would be more job cuts by the firm.
Inco, in which Brazil's Vale Inco Ltd. VALE5.SA has a 60.8 percent stake, has said the blockade did not affect production at the mine.
“The community has agreed to end their rally after a meeting with the management,” Jannus Siahaan, Inco’s spokesman said.
“The restructuring programme will refer to national labour regulations and a working agreement with employees,” Siahaan said.
Future restructuring plans will be discussed with a team made up of local government, community groups and Inco, he said.
Inco has around 3,400 employees, most of whom work at its mining site in Sorowako, South Sulawesi. It said the job cuts, which will affect workers near retirement age and some foreigners, will not affect this year’s production.
In May, Inco revised down its capital expenditure plans this year to $166.4 million, from $228.8 million initially planned in February, reflecting a slump in global demand for nickel.
Reporting by Fitri Wulandari; Editing by Ed DaviesOur Standards: The Thomson Reuters Trust Principles.
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00297da2a3388ad09a9b7aa730167ffb | https://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSJAK49169420090810 | Indonesia's Inco: road blockade not hitting output | Indonesia's Inco: road blockade not hitting output
By Reuters Staff2 Min Read
JAKARTA, Aug 10 (Reuters) - Production at a Sulawesi mine operated by PT International Nickel Indonesia INCO.JK has not been affected by a new road blockade to protest against the firm's plans to cut jobs there, INCO said on Monday.
The blockade was launched by hundreds of villagers along the road to INCO’s mine on the Indonesian island.
Last month, Inco said it planned to cut 87 jobs, or nearly 3 percent of its workforce, to reduce costs in response to the global financial crisis, which has reduced demand for stainless steel and thus nickel, a key raw material input.
Tri Rachman Batara, a spokesman for INCO, said it would continue negotiations with the protesters on Monday afternoon.
“There has been a road blockade again since this morning,” Batara said, adding that the protest near the company’s housing complex had not affected mine operations because it was outside the mine area.
Brazil's Vale Inco Ltd. VALE5.SA has a 60.8 percent stake in Inco.
Inco has around 3,400 employees, most of whom work at its mining site in Sorowako, South Sulawesi. It said the job cuts, which will affect workers near retirement age and some foreigners, would not affect this year’s production.
Villagers around Inco’s mine were concerned about further job cuts by the firm, which employs many locals, Andi Duding, the head of the Sorowako Indigenous Group (KWAS), said last week.
In May, Inco revised down its capital expenditure plans this year to $166.4 million, from $228.8 million initially planned in February, reflecting a slump in global demand for nickel. (Reporting by Telly Nathalia; Editing by Ed Davies and Clarence Fernandez)
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23610c6653087dbb92573a2fa186fc2c | https://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSL2111317320080721 | Photo-Me shares surge on sale of US vending unit | Photo-Me shares surge on sale of US vending unit
By Reuters Staff2 Min Read
LONDON, July 21 (Reuters) - Britain's Photo-Me International PHTM.L added more than ten percent to its market value on Monday, after it sold its loss-making U.S. vending business.
Photo-Me, which operates about 21,000 photo booths in railway stations, airports and shopping centres, said the sale of Auto Photo Systems Inc and its unit, Photo-Me USA LLC., would yield a small exceptional profit.
Photo-Me shares gained 13 percent to 13.25 pence at 0928 GMT, valuing the entire firm at about 48 million pounds.
No financial details were provided, but Photo-Me said the U.S. business, which operated 250 photobooths, or about 1 percent of its group total, made a pre-tax loss of 700,000 pounds ($1.39 million) on revenues of 1.2 million pounds in the fiscal year just ended.
Jean-Claude Perrottey, a former employee of Photo-Me, bought the business, the company said.
“The USA has always been a limited market for ID photography and US vending has tended to be loss-making in recent years,” Photo-Me said in the statement.
“The disposal is part of Photo-Me’s strategy to divest of small, remote and loss-making businesses and to focus on development and diversification of its well-established businesses.
“The USA remains an important market for Photo-Me’s equipment sales activities.” (Reporting by Hsu Chuang Khoo; Editing by David Cowell)
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0608bd87dc7c022f2433b5993480c7f1 | https://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSLM10598020090422 | UPDATE 2-Barco has Q1 operating loss, cautiously optimistic | UPDATE 2-Barco has Q1 operating loss, cautiously optimistic
By Reuters Staff2 Min Read
* Q1 operating loss 6.0 mln euros, vs 4.9 mln loss forecast
* Says cautiously optimistic for 2009
* Shares rise 3.2 percent
(Adds share price, analyst comment)
BRUSSELS, April 22 (Reuters) - Belgian display and visual systems company Barco BAR.BR swung to a first-quarter operating loss as demand from corporate clients remained weak, but it expressed cautious optimism about the rest of 2009.
Chief executive Eric Van Zele, appointed in January, said in a statement on Wednesday that the company’s focus on reducing costs and working capital had paid off.
It ended the quarter with a net cash position of 24 million euros ($31 million), against net debt of 32.8 million euros at the end of the fourth quarter.
“The results of the cost-cutting efforts and working capital focus are impressive,” KBC analyst Nico Melsens said in a note to clients.
At 0840 GMT, Barco stock was up 3.2 percent at 15.25 euros, after rising as much as 6.3 percent. The wider Belgian midcap index .BELM was 0.6 percent higher.
Barco reported a 6.0 million euro loss before interest and tax for the three months to end-March, versus a consensus forecast for a 4.9 million loss in a Reuters poll of three analysts.
Order recovery in March was strong, however, after a weak January and February order intake. Barco said it saw good order intake for digital cinema projectors and expected the digital cinema business to continue to grow over the next quarters.
The order book at the end of March stood at 367 million euros, up 12 percent year-on-year. (Reporting by Antonia van de Velde; Editing by Dale Hudson and Dan Lalor) ($1 = 0.7738 euro)
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b84cd69dafbe66c874a070a4379cf2a0 | https://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSLM21241520090222 | Europe's A400M may be delayed another year-report | Europe's A400M may be delayed another year-report
By Reuters Staff2 Min Read
PARIS, Feb 22 (Reuters) - The A400M military transport aircraft is unlikely to be delivered before late 2013, adding another year to its already delayed schedule, French daily La Tribune reported on its website on Sunday.
Citing officials at the Defense Ministry in France, which is the first country due to receive the aircraft, the newspaper said French military customers were not satisfied with the timetable provided by its manufacturer, European aerospace group EADS EAD.PA.
“We have analyzed the calendar of EADS and one more year will be required compared to the four announced,” the newspaper quoted French defense officials saying.
EADS had no immediate comment on the report.
Airbus parent EADS has already said that a basic model of the plane would not be delivered until three years after its first flight, which is expected in the second half of this year.
A French Senate report said this month that the 20-billion-euro ($25.15 billion) project was already effectively four to five years late because of the time needed to build up a meaningful fleet of operational aircraft.
The A400M was ordered in 2003 by seven European NATO countries to provide urgently-needed airlift for combat zones such as Afghanistan as well as for humanitarian missions.
EADS has taken provisions for over 1.7 billion euros for the delays and is negotiating with European governments led by France, Germany and Britain to ease delivery penalties. ($1=0.7952 Euro)
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56d1209e413f196002f81605144002b4 | https://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSLS56745220080828 | CORRECTED - Areva's Finnish nuclear costs rise sharply -paper | CORRECTED - Areva's Finnish nuclear costs rise sharply -paper
By Reuters Staff1 Min Read
(Corrects new cost in first paragraph to 4.5 billion euros, not 4 billion euros, and old figure to 3 billion euros, not 3.5 billion euros)
PARIS, Aug 28 (Reuters) - The expected building costs of a new nuclear reactor in Finland by France's Areva CEPFi.PA have increased to 4.5 billion euros ($6.66 billion) from 3 billion and the group has to make new provisions, the Les Echos newspaper said on Thursday.
Areva, due to publish first half results on Friday, was not immediately available for comment. (Reporting by Marcel Michelson)
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9c92a763f671193007c70868fda0ccc7 | https://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSN0142249220090501?sp=true | UPDATE 1-Smaller lots, lower prices seen in NY art auctions | UPDATE 1-Smaller lots, lower prices seen in NY art auctions
By Christopher Michaud4 Min Read
(Adds results of London sale, paragraph 6)
* Houses offering pared down, tightly edited sales
* Consigners reluctant to sell in down market
NEW YORK, May 1 (Reuters) - On the eve of another art auction season staged against a backdrop of chaotic global financial markets, the days of the $300 million dollar sale are over, at least for now.
“The market is in free fall, we should be clear about that,” said Ian Peck, president of the art-related financial services firm Art Capital Group. “There’s been a massive contraction, with downward pressure on pricing.”
The spring season, which begins in earnest on Tuesday with an Impressionist sale at Sotheby’s, is expected to feature largely pared down sales that speak to leaner times even though some items have estimated values of up to $24 million.
A year ago Sotheby's BID.N and Christie's each sold some $600 million worth of fine art at their Impressionist and contemporary evening sales. This year each hopes to bring in about $200 million.
Last year’s autumn sales, largely assembled before financial markets began collapsing in September, commanded only two-thirds of the revenue expected.
In February, a Christie’s auction of Impressionist and Modern art in London raised more than 63 million pounds (about $94 million), coming in at the lower end of a forecast range of 60 and 87 million pounds.
“Our issue hasn’t been the buyers,” said Marc Porter, president of Christie’s Americas. “If the works are right and the estimates are right, there is interest.”
But consignors, or would-be sellers, view selling “as optional at the (price) levels we’re seeing. Only a relative few felt they had to sell” now.
“Markets crave stability,” Porter said. “Until people see that it’s stabilized, they were reluctant to consign.”
FRESH TO MARKET
Sotheby’s CEO Bill Ruprecht said, “Sellers have had more trepidation. Our best clients are saying now is the time to buy,” but would-be consigners seem content to wait it out.”
Peck said fine art moves in tandem with high-end real estate, and “if you have luxury Manhattan real estate, this is not the time to sell it.”
While a few collectors have been forced to sell by misfortune, and there are the usual estate sales, a general reticence has cut the size of sales by up to half.
“Work that is fresh to the market, soberly priced and of very high quality” will move, Ruprecht said.
Porter said the slimmer pickings could work to the market’s ultimate advantage by creating pent-up demand, whether for this season or next.
Sotheby’s and Christie’s said they focused this season on works of impeccable quality and provenance that are fresh to the market. Some have never before been sold at auction.
PRIVATELY OWNED TREASURES
Sotheby’s Impressionist night is led by Picasso’s 1938 portrait of his daughter Maya, “The artist’s daughter at two-and-a-half with boat.” Estimated to sell for $16 million to $24 million, it remained in Picasso’s own collection until his death and has been privately owned since the 1980s.
Giacometti’s bronze “Le Chat,” also $16 million to $24 million, spent the past four decades in the same collection.
Christie’s top Picasso is “Musketeer with pipe,” a late work expected to fetch $12 million to $18 million. Max Ernst’s “A curse on you mothers” has never been auctioned and is estimated at $7 million to $9 million.
On the contemporary side, which has seen staggering price spikes in recent years, Christie’s is featuring the collection of philanthropist Betty Freeman led by Hockney’s “Beverly Hills Housewife,” estimated at $6 million to $10 million. Works by Lichtenstein, Warhol, Diebenkorn and Basquiat are expected to sell for about $5 million.
Sotheby’s star lot is Jeff Koons’ “Baroque egg with bow” (turquoise/magenta), one of the artist’s vibrant sculptures, estimated at $6 million to $8 million. (Editing by Daniel Trotta and Xavier Briand)
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7af1d3a350b3fe4b2fb0321282ceabe4 | https://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSN0213354020090802 | Pentagon eyes accelerated "bunker buster" bomb | Pentagon eyes accelerated "bunker buster" bomb
By Jim Wolf4 Min Read
* Bomb could be ready for B-2 bomber by July 2010
* Would deliver 10 times explosive power of predecessor
WASHINGTON, Aug 2 (Reuters) - The Pentagon is seeking to speed deployment of an ultra-large “bunker-buster” bomb on the most advanced U.S. bomber as soon as July 2010, the Air Force said on Sunday, amid concerns over perceived nuclear threats from North Korea and Iran.
The non-nuclear, 30,000-pound Massive Ordnance Penetrator, or MOP, which is still being tested, is designed to destroy deeply buried bunkers beyond the reach of existing bombs.
If Congress agrees to shift enough funds to the program, Northrop Grumman Corp NOC.N's radar-evading B-2 bomber "would be capable of carrying the bomb by July 2010," said Andy Bourland, an Air Force spokesman.
“The Air Force and Department of Defense are looking at the possibility of accelerating the program,” he said. “There have been discussions with the four congressional committees with oversight responsibilities. No final decision has been made.”
The precision-guided weapon, built by Boeing Co BA.N, could become the biggest conventional bomb the United States has ever used.
Carrying more than 5,300 pounds of explosives. it would deliver more than 10 times the explosive power of its predecessor, the 2,000-pound BLU-109, according to the Pentagon’s Defense Threat Reduction Agency, which has funded and managed the seed program.
Chicago-based Boeing, the Pentagon’s No. 2 supplier by sales, could be put on contract within 72 hours to build the first MOP production models if Congress signs off, Bourland said.
The threat reduction agency is working with the Air Force to transition the program from “technology demonstration” to acquisition, said Betsy Freeman, an agency spokeswoman.
Both the U.S. Pacific Command, which takes the lead in U.S. military planning for North Korea, and the Central Command, which prepares for contingencies with Iran, appeared to be backing the acceleration request, said Kenneth Katzman, an expert on Iran at the Congressional Research Service, the research arm of Congress.
“It’s very possible that the Pentagon wants to send a signal to various countries, particularly Iran and North Korea, that the United States is developing a viable military option against their nuclear programs,” Katzman said.
But he cautioned against concluding there was any specific mission in mind at this time.
BIGGEST BOMB
The MOP would be about one-third heavier than the 21,000-pound (9.5 million kg) GBU-43/B Massive Ordnance Air Blast bomb -- dubbed the “mother of all bombs” -- that was dropped twice in tests at a Florida range in 2003.
The 20-foot-long (6-metre) MOP is built to be dropped from either the B-52 or the B-2 “stealth” bomber. It is designed to penetrate up to 200 feet (61 metres) underground before exploding, according to the U.S. Air Force.
The suspected nuclear facilities of Iran and North Korea are believed to be largely buried underground to escape detection and boost their chances of surviving attack.
During a visit to Jerusalem last week, U.S. Defense Secretary Robert Gates sought to reassure Israel that a drive by President Barack Obama to talk Iran into giving up its nuclear work was not “open-ended.”
Iran says its uranium enrichment -- a process with bomb-making potential -- is for energy only and has rejected U.S.-led demands to curb the program.
For its part, North Korea responded to new United Nations sanctions, imposed after it detonated a second nuclear device, by vowing in June to press the production of nuclear weapons and act against international efforts to isolate it.
Editing by Doina ChiacuOur Standards: The Thomson Reuters Trust Principles.
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2903368ad97e5740915cb59ec7fe29d4 | https://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSN0743161420081107 | UPDATE 1-USG cuts 900 jobs as economy deteriorates | UPDATE 1-USG cuts 900 jobs as economy deteriorates
By Reuters Staff1 Min Read
NEW YORK, Nov 7 (Reuters) - U.S. building materials maker USG Corp USG.N said on Friday it was cutting around 900 jobs, or 20 percent of its salaried positions.
The company said the layoff plan began on Monday. USG said it expected charges in a range of $35 million to $45 million from the jobs cut plan in the current and next quarters.
The company has posted a net loss of $125 million in the first nine months of 2008 as the housing market slumped and raw material prices increased.
In the same period, sales fell around 10 percent to $3.6 billion.
U.S. jobless rate shot to a 14-1/2-year high last month as employers slashed 240,000 positions.
USG's shares have fallen 60 percent this year, while the S&P 500 index .SPX sank 36 percent. (Reporting by Juan Lagorio, editing by xxxx)
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86703b88b6154620cdc96f41ffb7e739 | https://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSN1723434120090918 | No start date in sight for Guatemala nickel mine | No start date in sight for Guatemala nickel mine
By Reuters Staff2 Min Read
GUATEMALA CITY, Sept 17 (Reuters) - No start date has been set for the reopening of the Fenix nickel project in Guatemala, owned by HudBay Minerals, although economic conditions are improving, the company’s Guatemalan partner said on Thursday.
The project, which HudBay HBM.TO bought last year when it acquired Canadian miner Skye Resources, was suspended as nickel prices plummeted in the wake of the global financial crisis.
A spokesperson for Compania Guatemalteca de Niquel or CGN HudBay’s local partner, said a decision on restarting work at the mine in the eastern Guatemalan town of El Estor could be made later this year.
“We’re still in ‘slowdown’ but there are some positive signs, nickel prices have improved and the global economic crisis has started to get better,” Regina Rivera told Reuters.
The mine has a capital cost estimate of around $1 billion, which could change depending on how managers choose to power the plant.
CGN is currently carrying out a study to evaluate a number of options including forming an alliance with an existing local generator or investing in a hydro-electric plant, Rivera said.
The ferro-nickel mine on the banks of Guatemala’s largest lake was mothballed for more than two decades after nickel prices dropped in the early 1980’s.
Skye Resources, which acquired the project in 2004, came up against local opposition to the reopening of the mine, with squatters occupying company land and burning down a hospital and community relations office built by Skye. (Reporting by Sarah Grainger; Editing by Christian Wiessner)
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49d7fc3fcef2fd9e7f9d16e42d555a16 | https://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSN1840742920090618 | UPDATE 1-Pentagon to decide tanker contest structure soon | UPDATE 1-Pentagon to decide tanker contest structure soon
By Reuters Staff0 Min Read
* Gates: within days of decision on shape of contest
* Gates still hoping for proposal request by midsummer (Adds quotes, background)
WASHINGTON, June 18 (Reuters) - The Pentagon will decide "within a few days" how to structure the next attempt to award a multi-billion-dollar contract to replace the Air Force's aging tanker fleet, Defense Secretary Robert Gates said on Thursday.
Last year, the Pentagon canceled a $35 billion, 179-plane contract it awarded to Northrop Grumman Corp NOC.N and its partner, Airbus parent EADS EAD.PA, after federal auditors upheld a challenge from losing bidder Boeing BA.N.
"On the tanker, I'm probably within a few days of making a decision on the structure of how we're going to go about the process and who will be the acquisition authority and so on," Gates told reporters.
"And I still am hoping that we can get an RFP (request for proposals) out midsummer or thereabouts," he said.
At the Paris Air Show this week, Boeing said it had studied both its 767 and larger 777 aircraft for use in the new tanker competition but would not decide which plane to bid until the Pentagon released the terms of the contest. Northrop had won with a modified Airbus A330.
The Pentagon's request for proposals will launch a third effort to buy new refueling planes.
The Air Force's first bid to replace its aging fleet of KC-135 refueling aircraft centered on a lease/buy deal with Boeing for 767s, but that collapsed in 2004 in a procurement scandal that sent two Boeing executives, one a former Air Force arms buyer, to prison for ethics violations.
Northrop won the second competition, which was carefully monitored by Pentagon officials, but government auditors still upheld 8 of over 100 protest points raised by Boeing.
Analysts say both sides may file protests once the Pentagon releases its request for proposals, if they perceive the rules are tipping the competition toward one competitor or another. (Reporting by Julie Vorman; Editing by Tim Dobbyn)
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868f4c4125593645c8bdb7a13d93d416 | https://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSPAB00791820090924 | Two French Rafale fighter jets crash at sea | Two French Rafale fighter jets crash at sea
By Reuters Staff1 Min Read
PARIS, Sept 24 (Reuters) - Two French Rafale fighter jets crashed in the Mediterrenean on Thursday during a test flight from the Charles de Gaulle aircraft carrier, the navy said in a statement.
One pilot has been rescued at sea, another is still missing.
Rafale, made by Dassault Aviation SA AVMD.PA, is France's most-advanced fighter plane which was about to obtain its first export order ever as Brazil is mulling ordering the jets. (Reporting by Marcel Michelson)
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23b2c7d3a82b3a9c596fb12fd5ce30fb | https://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSPEK17909520080508 | UPDATE 1-China caps prices for fertiliser, ingredients-NDRC | UPDATE 1-China caps prices for fertiliser, ingredients-NDRC
By Reuters Staff4 Min Read
(Adds comment from official, paragraphs 10-11)
BEIJING, May 8 (Reuters) - China’s central planner warned fertiliser companies on Thursday not to raise prices of important ingredients and set a maximum range for mark-ups on imported fertiliser, amid concerns about rising prices.
Soaring oil prices helped to boost fertiliser prices both internationally and in China, leading planners to worry that farmers might stint on fertiliser and stunt the grains harvest.
“Right now spring planting is under way across China, so in order to curb inappropriate price gains, protect farmers’ profits and promote agricultural productivity, we are strengthening control over potassium chloride and compound fertiliser prices,” the National Development and Reform Commission said on its website on Thursday.
Importers Sinochem and Sinoagri are only allowed to mark up prices to domestic fertiliser producers by 5 percent, or to trading companies by 3 percent. Prices at the point of sale could only be marked up 7 percent compared with the producers’ price, the NDRC said.
It added that it would set the import price for overseas shipments delivered to the port.
“Prices cannot rise any more, although they are allowed to fall,” it said.
China last month slapped an additional 100 percentage points on the export tariff on fertiliser, to prevent producers from profiteering from soaring international prices. Its move came after Chinese importers agreed to pay triple for potash and sharply reduce volumes purchased under term contracts.
Sinofert Holdings Ltd 0297.HK, the Sinochem unit that is China's largest distributor of imported fertilisers, expects a shortage of up to one-quarter of China's annual demand of 11 million to 12 million tonnes of potash, its vice president said this week.
Agricultural officials and economists have written that soaring prices, especially for agricultural imports such as fertilisers and diesel, could reduce farmers’ willingness to grow crops or stimulate further food inflation.
An official from the State Administration of Grain denied on Thursday that the official figure of grain reserves was inflated, saying that storage capacity outstripped output, so it was natural that China would have some empty granaries.
“The current reserve figure is true and reliable. There is no reason to believe otherwise from the information we have now,” Zeng Liying, deputy director of the administration, told the official Xinhua news agency.
Lower grains production would raise the cost of feed, extending a rise in meat prices that drove headline inflation last year.
“Minimum rice prices have only risen by 10 percent, but fertiliser prices are up 30 to 40 percent,” said Liao Xiyuan, researcher with China National Rice Research Institute.
China is targeting a grains harvest of more than 500 million tonnes this year, as it seeks a fifth consecutive year of rising harvests, the Ministry of Agriculture said this week. (Reporting by Lucy Hornby and Niu Shuping, additional reporting by Lindsay Beck; editing by James Jukwey)
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5dfb375df68d9f2e4dd533ff31edf53c | https://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSPEK34522820090419 | Ex-aide to China official sentenced to death-report | Ex-aide to China official sentenced to death-report
By Reuters Staff2 Min Read
BEIJING, April 19 (Reuters) - A Chinese court has handed down the capital sentence to a former aide to late Vice Premier Huang Ju for taking bribes and abuse of power, a website operated by People’s Daily reported on Sunday.
Wang Weigong, who formerly served as secretary to Huang, was sentenced by the Changchun Municipal Intermediate People’s Court in Jilin Province on Friday, the report said.
The court said Wang’s death sentence should be accompanied by probation of two years because he confessed to some of his crimes and paid back all the bribes. All his personal property was also confiscated.
Wang, who was also a former deputy general manager of Shenergy Group, was convicted of taking bribes worth 12.9 million yuan ($1.9 million) from eight companies or individuals from 1995-2006.
Officials said he abused his power as a secretary of the Shanghai Municipal Communist Party Committee, and as secretary of the State Council, taking bribes in return for preferential treatment.
Huang, who died in 2007 aged 68, was party boss of Shanghai until 2002, before rising to be ranked sixth in the Communist Party’s all-powerful Politburo Standing Committee.
After Wang left his post as Huang’s aide, he joined the Shanghai-based power supply company Shenergy Group.
($1=6.832 Yuan)
Reporting by Ken Wills; Editing by Sanjeev MiglaniOur Standards: The Thomson Reuters Trust Principles.
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7979a5f55d3e37b06095b913a83f1eff | https://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSSEO23453820080304 | LG Chem battery plant to resume in 2-3 months | LG Chem battery plant to resume in 2-3 months
By Reuters Staff2 Min Read
SEOUL, March 4 (Reuters) - LG Chem 051910.KS said on Tuesday it expected its fire-damaged battery plant to be back in production in two to three months, estimating the stoppage would cost about 80 billion won ($84.5 million) in lost revenue.
Production halted at the second-biggest South Korean battery maker’s Ochang plant, south of Seoul, after a fire broke out on Monday evening.
The fire damaged part of the plant’s assembly lines, boiler room and air-controlling facility, LG Chem said in a filing with the Korea Exchange.
The estimated revenue loss is equivalent to 0.73 percent of the company’s 2007 sales of 10.9 trillion won.
“The impact from the incident will be small thanks to insurance coverage,” LG Chem said.
“Our company will take steps to minimise losses to our clients,” it added without elaborating.
The Ochang plant, which produces about 13.5 million cells a month, is the bigger of LG Chem’s two domestic battery factories.
Shares LG Chem, also the country's largest chemical company, fell 2.77 percent to 77,200 won by 0427 GMT, compared with the wider market's .KS11 0.19 percent loss. Its larger battery rival Samsung SDI 006400.KS rose 4.15 percent to 67,800 won.
LG Chem derives about 68 percent of its sales from petrochemicals and the rest from other products such as computer notebook batteries and polarising plates used in liquefied crystal displays. ($1=946.8 Won) (Reporting by Rhee So-eui, editing by Jonathan Thatcher)
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c93058dd2665ec1a991d207b9ad6fbdb | https://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSSHA28716920080610 | Grand China Air, Yunnan govt to set up new airline | Grand China Air, Yunnan govt to set up new airline
By Reuters Staff2 Min Read
SHANGHAI, June 10 (Reuters) - Grand China Air, partly owned by financier George Soros, has agreed to set up an airline jointly with the Yunnan provincial government to seek a share of southwest China’s lucrative tourism market, a company executive said on Tuesday.
Grand China Air, the largest shareholder of Hainan Airlines Co 600221.SS, will hold a controlling stake in the new carrier, the executive said, without providing financial details.
The new company, which is pending regulatory approval, will initially be limited to flights within the province but will apply for long-haul domestic and international routes in the future, he said.
The new carrier would be in direct competition with the Yunnan unit of China Eastern Airlines Corp 600115.SS0670.HK, which controls more than 50 percent of the highly profitable market for flights in Yunnan, a popular tourist destination with striking mountain and river vistas.
In April, the Civil Aviation Administration of China (CAAC) suspended China Eastern’s operating licences on certain routes in Yunnan after pilots returned several flights to their departure airports in what local media described as a wildcat strike.
A China Eastern spokesman said that he was aware of plans for forming a new rival and that his company was focusing on improving its services.
Two other major Chinese carriers, Air China Ltd 601111.SS0753.HK and China Southern Airlines 600029.SS1055.HK, also operate in Yunnan. (Reporting by Fang Yan; Editing by Edmund Klamann)
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629580e93ef3bd0ab4fa7bad0d393dfe | https://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSSYD30917220081002 | PRESS DIGEST-Australian Business News - Oct 3 | PRESS DIGEST-Australian Business News - Oct 3
By 8 Min Read
Compiled for Reuters by Media Monitors. Reuters has not verified these stories and does not vouch for their accuracy.
THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)
Private equity players are pulling out of the A$800 million-plus auction of Group Danone's BNEUR.PZ New Zealand-based Frucor Beverages business, leaving Coca Cola Amatil and overseas beverages groups in the race. It is understood the worsening market conditions since Danone initiated a strategic review of Frucor in August caused the withdrawal of private equity firm CCMP Capital Asia and forced a rival consortium led by Kohlberg Kravis Roberts and Merrill Lynch Private Equity to rethink the potential purchase. Page 51.
- - - -
Rio Tinto RIO.AX chief executive Tom Albanese has forecast a rebound in spot prices for iron ore, driven by continued demand from China despite the global economic crisis. Maintaining that China's growth would remain 'robust,' Mr Albanese told the Melbourne Mining Club yesterday that 'the real impact of the financial panic of this week is oversold and we will see some return to sanity.' His comments came a day after the competition regulator decided not to oppose BHP Billiton's takeover bid for Rio Tinto. Page 51.
- - - -
ACP Magazines, a division of media group PBL Media CMJ.AX , is proceeding with its plans to establish its own printing plant by 2011. It is understood PBL Media, which is saddled with a A$4.2 billion debt and A$450 million in annual interest payments, has been working on the plan for the past 18 months. Industry insiders estimate PBL Media will spend at least A$150 million on the printing facility. ACP's current contract with its main printer, PMP, costs the publisher about A$80 million annually. Page 51.
- - - -
The first flight of V Australia, the long-haul service of Virgin Blue Holdings VBA.AX, will be delayed by more than two months because of a month-long strike at aircraft maker Boeing's plant in the United States. Virgin Blue has seven 777 model aircraft on order from Boeing, with three of them close to completion. The carrier, which originally planned to launch Sydney-Los Angeles services on December 15, has promised to compensate or accommodate customers who have already bought tickets. Virgin Blue shares fell A0.5 cents to A36 cents yesterday. Page 52.
- - - -
THE AUSTRALIAN
The global credit crisis has fuelled speculation of consolidation in the Australian banking and finance industry. BankWest, the local subsidiary of troubled British bank HBOS - HBOS.L which is set to merge with rival Lloyds TSB - has emerged as a takeover target. Observers said yesterday the looming consolidation phase of the sector could involve Queensland-based group Suncorp SUN.AX, bancassurance group and Bendigo Adelaide Bank BEN.AX . Meanwhile, the Commonwealth Bank of Australia denied rumours that it was set to make a bid for BankWest. Page 19.
- - - -
Iron ore miner Fortescue Metals Group FMG.AXhas confirmed that an announcement last month to ramp up production capacity in stages instead of lifting it straight to 120 million tonnes a year by 2011 from 40 million tonnes at present was caused by the credit squeeze. Executive director of operations Graeme Rowley said yesterday while Fortescue, which began production in May, remained committed to its long-term target of 160 million tonnes, the credit crisis was 'reducing our financial options - money out there is hard to get.' Page 19.
- - - -
The chief executive of China-focused gold miner Sino Gold, SGX.AX Jake Klein, has called for greater personal-level assimilation of Chinese companies operating in Australia. 'Australia sells a lot of raw materials to China, but in the ASX top 20 companies, there is not one Chinese director,' Mr Klein told the Sydney Mining Club yesterday. He said Sino Gold, which runs the Jinfeng goldmine in southern China, had integrated senior Chinese staff and the Mandarin language into its operations in that country. Page 20.
- - - -
Queensland Mining Corporation (QMC) made a dismal stockmarket debut yesterday, seeing its shares close 60 percent down at A20 cents - the day’s worst performance on the Australian Stock Exchange. The Sydney-based copper and gold miner, which operates projects in Queensland’s Mount Isa/Cloncurry region, managed to raise only A$3.3 million in its initial public offer, falling well short of its A$15 million target. However, QMC had already raised A$20 million through private investors. Page 21.
- - - -
THE SYDNEY MORNING HERALD
Zinc miner CBH Resources CBH.AX has made a A$65 million hostile takeover bid for rival Perilya PEM.AX. CBH said the two-tiered, all-scrip offer was a 'superior proposal' to the bid it had planned earlier this year, but Perilya told shareholders to take no action. Both companies have seen their share prices slide recently because of falling zinc prices, but the possibility of a merger lifted Perilya's shares yesterday by 16.7 percent to A31.5 cents, while CBH closed up 8.2 percent at A7.9 cents. Page 21.
- - - -
Online advertising technology company Mooter Media MMZ.AX, in which newspaper publisher Fairfax Media FXJ.AX has a stake, has warned it may be unable to continue as a going concern unless it is able to raise 'sufficient funds…immediately.' Technology developed by Mooter allows media companies to match advertisements with Internet content. Fairfax, which bought 19.9 percent of Mooter in 2005, said yesterday while it was 'disappointed' with Mooter's problems, it's stake was merely a 'residual, passive investment.' Page 23.
- - - -
Television and print media groups including Seven Network, SEV.AX Ten Network TEN.AX, Fairfax Media and ACP Magazines could be hit as major advertisers consider spending cuts in the face of the economic downturn. After electronics and furniture retailer Harvey Norman HVN.AX flagged a 20 percent reduction in advertising spending next year, food products group Nestle NESN.VX said yesterday it would switch some of its A$125 million marketing budget to online and direct. Credit Suisse CSGN.VX has forecast a 5.3 percent decline in advertising spending in the year to June. Page 23.
- - - -
Qantas Airways QAN.AX has applied to the International Air Services Commission for a two-year extension of its code-share arrangement with South African Airways for services between the two countries. The two carriers jointly had a 70 percent market share on the route last year, compared to the 12 percent share of main rival Singapore Airlines. Qantas flies five days a week between Sydney and Johannesburg and plans to start two new weekly services by mid-2009. Page 24.
- - - -
THE AGE
Australia has posted a A$1.36 billion trade surplus for August, only the second favourable month in the past 75 months. The figures, released by the Australian Bureau of Statistics yesterday, exceeded economists' expectations of a much smaller A$200 million surplus. The positive trade result was driven by higher exports of commodities including coal and metals, which lifted overall exports by 6 percent, and a 2 percent decline in imports. But a St George Bank SGB.AX analyst warned 'exports may come under pressure from a slowing world economy.' Page B1.
- - - -
Observers have backed the view of Australia and New Zealand Banking Group ANZ.AX chief executive Mike Smith that local banks remain reliable in the face of the global financial crisis. Mr Smith last week cited the capitalisation, liquidity, profitability and management of Australian banks to claim they were 'among the safest in the world.' His statement followed a review by the Reserve Bank of Australia that reached a similar conclusion. Australia's four largest banks are among just 18 in the world to be rated AA by Standard & Poor's. Page B1.
- - - -
The Australian Competition and Consumer Commission has launched action against 28 parties linked to telecommunications companies (telcos), alleging dubious contracts and misleading conduct. The parties include entrepreneur Tony Hakim and individuals and firms associated with him, and finance firm Australian Integrated Finance. The consumer watchdog alleges ‘free’ equipment the parties were offering with bundled services was actually supplied under rental deals by finance firms unrelated to the telcos. Page B3.
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e2d3d1de3e0214420d955284630a0d2b | https://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUST17444920090323 | Japan ship shot at off Somalia, no one hurt | Japan ship shot at off Somalia, no one hurt
By Reuters Staff1 Min Read
TOKYO, March 23 (Reuters) - A Japanese ship operated by Mitsui O.S.K. Lines 9104.T was shot at by two pirate ships off Somalia, but none of the 18 Filipino crew were injured, the company said on Monday.
The incident, which occured on Sunday, came after the Japanese government earlier this month ordered two naval vessels to join international patrols aimed at curbing pirate attacks off Somalia. [ID:nT327928]
“Some windows were broken, and there was some damage to the outside of the ship, but no one was injured,” a spokeswoman for Mitsui O.S.K. Lines said.
“After zigzagging across the sea for about 40 minutes very fast, the ship tore itself away from the boats,” she added.
The company said in a statement that the ship was a Cayman Islands-flagged cargo ship transporting used cars from the United Arab Emirates to Kenya.
Despite the damage, the ship could operate and is currently sailing towards a safer area. (Reporting by Yoko Nishikawa; Editing by Jerry Norton)
Our Standards: The Thomson Reuters Trust Principles.
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8d568a8fceff696268651b1dd6f7f2a6 | https://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUST22727720080716 | TOCOM to cut number of board members in December | TOCOM to cut number of board members in December
By Reuters Staff2 Min Read
TOKYO, July 16 (Reuters) - Tokyo Commodity Exchange is planning to slash the number of board members to 10 from the current 31 when it becomes a shareholder-owned company in December, its chairman said on Wednesday.
TOCOM has been preparing to become shareholder-owned in a bid to raise its competitiveness after struggling to increase turnover following a change in the law in 2005 designed to improve trading transparency and investor protection.
The exchange unveiled the names of 10 board members including former Bank of Japan Governor Toshihiko Fukui, Sumitomo Corp Managing Director Hiroyuki Takai and Goldman Sachs Japan Managing Director Eiji Ueda.
The board members are to take their posts from Dec. 1 after receiving approval at a general meeting scheduled for later in the month.
“I think this is a good mix in the board, which includes a market member, someone from a brokerage and a foreign member. I hope we can receive support from the members,” TOCOM Chairman Masaaki Nangaku told a news conference.
The exchange,in which gold, platinum and gasoline futures are among those most heavily traded, has been left on the sidelines of the biggest global bull run in commodities in decades.
Turnover on the top Japanese exchange specialising in commodities slipped 6.9 percent to 21.47 million contracts during the first six months of the year from the same period last year.
“We’ve taken a various measures but unfortunately we haven’t moved out of the stagnant situation,” Nangaku said.
The exchange’s measures include an extension of trading by two hours from the start of the year and a widening of daily trading limits.
TOCOM also said it will add gold exchange-traded funds (ETFs) listed on the Osaka Securities Exchange 8697.OJ as an eligible margin on the exchange.
In February, the Osaka bourse and TOCOM signed an accord to cooperate in exchanging information on trading systems, marketing and product development. (Reporting by Chikafumi Hodo; Editing by Michael Watson)
Our Standards: The Thomson Reuters Trust Principles.
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520e4efefdf8a96c9437ffaa8c3b69d1 | https://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUST36654420090825?rpc=401& | UPDATE 3-TEPCO gets final OK to restart second nuclear unit | UPDATE 3-TEPCO gets final OK to restart second nuclear unit
By Osamu Tsukimori3 Min Read
* TEPCO scheduled to restart 1,356-MW No.6 unit on Wednesday
* Restart would help save thermal fuel purchases, cut CO2 (Adds details)
TOKYO, Aug 25 (Reuters) - Tokyo Electric Power Co (TEPCO) 9501.T received final local approval on Tuesday to restart a second reactor at its quake-damaged nuclear plant in northwest Japan, a move that will help the utility lower its fuel bill.
The heads of three local governments approved the restart after a panel of experts judged that anti-quake safety had been secured at the 1,356-megawatt No.6 reactor at the Kashiwazaki-Kariwa plant, a prefectural official said.
A TEPCO spokesman said the restart of the No.6 unit was scheduled for Wednesday, the second unit to be restarted at the plant that had been shut since a magnitude 6.8 quake rocked the region in July 2007.
The restart of the No.6 unit could reduce TEPCO’s annual fuel purchases by more than 70 billion yen ($745 million) and cut carbon dioxide emissions by 5 million tonnes, according to company and Reuters calculations.
As part of an initial test, the company plans to operate the unit at 20 percent of capacity, then lift it to 50 percent, before moving onto 75 percent and finally full capacity.
The firm declined to say when the unit will begin generating electricity or how soon it will ramp up to full production, but it estimated that if all goes as planned it will take 40-50 days from restart to a final government inspection.
TEPCO in May restarted the facility’s 1,356-MW No.7 reactor, which is currently generating electricity at full capacity, though the company is now considering shutting the unit to replace a fuel rod. [ID:nT253328]
With the restart of the No.6 unit, the potential shutdown of the No.7 reactor is unlikely to affect the company’s ability to supply power to its customers as the peak summer demand season is almost over.
The Kashiwazaki-Kariwa plant has seven nuclear generators with a total capacity of 8.21 gigawatts, the world’s biggest.
The restart of the No.6 and No.7 units would mean a third of the nuclear plant’s capacity would be back online.
There is no schedule to restart the plant’s remaining five reactors. ($1=94.00 Yen) (Reporting by Osamu Tsukimori; Editing by Joseph Radford)
Our Standards: The Thomson Reuters Trust Principles.
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34044cd3b9fbe422035ae01013459331 | https://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUST6574420071230 | Hitachi seen to exit small hard drive business | Hitachi seen to exit small hard drive business
By Reuters Staff2 Min Read
reporter on mobile: +81-90-3238-9965
TOKYO (Reuters) - Hitachi Ltd 6501.T, Japan's biggest electronics conglomerate, plans to exit the business of making small hard disk drives as demand shifts to flash memory chips, the Nikkei business daily reported on Sunday.
Hitachi’s hard drive unit, Hitachi Global Storage Technologies Inc, has already stopped production of 1-inch hard drives and plans to stop shipping 1.8-inch drives around next summer, the newspaper said.
The Nikkei also said Hitachi rival Fujitsu Ltd 6702.T has given up on plans to enter the market for small drives. Fujitsu had been developing 1.8-inch drives with U.S.-based Cornice with plans to bring a product to market in 2007.
No one at Hitachi or Fujitsu could be reached for comment.
Small hard drives are increasingly being replaced by flash memory chips as the memory storage device in video cameras and portable music players such as Apple Inc's AAPL.O popular iPod as flash memory capacity improves and prices come down.
Hitachi will focus on 2.5-inch and 3.5-drives, anticipating strong demand for the bigger drives that are used in personal computers and digital electronics such as DVD recorders, the Nikkei said.
The move comes as Hitachi considers selling a stake in its loss-making hard drive business to bring in fresh capital and expertise.
Hitachi has not once posted a profit in its hard drive business since buying it from IBM IBM.N for $2 billion in 2002.
Toshiba Corp 6502.T is the largest maker of 1.8-inch hard drives with a market share of about 70 percent, followed by Hitachi at 17 percent, South Korea's Samsung Electronics Co 005930.KS at 8 percent and U.S.-based Seagate Technology STX.N at 5 percent, the Nikkei said, citing data from research firm iSuppli.
Reporting by Nathan LayneOur Standards: The Thomson Reuters Trust Principles.
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8188cc1d0d2d49f6a16e9355f0e39706 | https://www.reuters.com/article/rbssIntegratedOilGas/idUSL549744920090805 | Austria to investigate OMV chief over share buy | Austria to investigate OMV chief over share buy
By Reuters Staff3 Min Read
VIENNA, Aug 5 (Reuters) - Austrian financial watchdog FMA has asked the state prosecutor's office to investigate the chief executive of Austrian oil and gas group OMV OMVV.VI over a share trade he made, a prosecutor's spokesman said on Wednesday.
OMV said the FMA’s move was groundless and denied any wrongdoing by Wolfgang Ruttenstorfer.
The FMA had said in April that it was investigating a share purchase made by Ruttenstorfer shortly before a company stake sale was announced.
OMV's website said at the time that Ruttenstorfer bought 620,000 euros ($892,300) worth of OMV stock on March 23, a week before OMV sold its 21 percent stake in Hungarian peer MOL MOLB.BU on March 30.
The sale of the MOL stake to Russia's Surgutneftegaz SNGS.MM for 1.4 billion euros was at almost twice MOL's current share price, allowing OMV to exit the stake without a loss. OMV's shares rose 3.3 percent on the day.
Ruttenstorfer’s trade, which more than doubled his holding in the company to 40,030 shares, was published on OMV’s website on March 25, five days before the MOL deal was announced.
The prosecutor’s spokesman, Gerhard Jarosch, said his Vienna office had received a request from the FMA on Tuesday to investigate Ruttenstorfer on suspicion of insider trading. The investigation would determine whether Ruttenstorfer should be charged.
FMA officials could not be reached for comment.
OMV’s spokeswoman Michaela Huber said the FMA’s move was baseless.
“In connection with the investigation we provided the facts clearly and openly to the authorities,” she told Reuters.
“Mr Ruttenstorfer’s own investment in OMV was duly reported to the FMA and the public through an announcement on our home page and cannot be seen to have any connection with the sale of MOL shares. This was carried out in accordance (with the law),” she said.
OMV said in April it had observed all relevant corporate governance regulations in the share sale and Ruttenstorfer had heeded all director dealings rules in his March 23 transaction. ($1=.6948 euros) (Reporting by Christian Gutlederer; Writing by Mark Heinrich)
Our Standards: The Thomson Reuters Trust Principles.
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b9284ea9d5864f30a62e8ca09483e83e | https://www.reuters.com/article/rbssIntegratedOilGas/idUSN1134230020080911 | US Interior Secy 'outraged' by oil-sex scandal | US Interior Secy 'outraged' by oil-sex scandal
By Tom Doggett3 Min Read
WASHINGTON, Sept 11 (Reuters) - U.S. Interior Secretary Dirk Kempthorne on Thursday said he was “outraged” by department workers who had sex, used drugs and took gifts from employees at regulated oil companies, while one senator called for a Bush administration official to resign over the scandal.
The Interior Department’s inspector general issued a scathing report on Wednesday that found “a culture of substance abuse and promiscuity” at the department’s Minerals Management Service, whose employees handled billions of dollars in oil and natural gas supplies that were turned over by companies as in-kind royalty payments for drilling on federal lands.
“I am outraged by the immoral behavior, illegal activities, and appalling misconduct of several former and current long-serving career employees in the Minerals Management Service’s royalty-in-kind program,” Kempthorne said. “We will take swift action to restore the public trust.”
Democratic Sen. Bill Nelson of Florida called for the agency’s top head, MMS director Randall Luthi, to resign.
In response to the inspector general’s report, Luthi had said that “I do not believe Americans have lost financially,” but admitted “it is too early to tell” if government workers gave oil companies financial favors at the expense of taxpayers.
In a letter to Kempthorne on Thursday, Nelson asked for all department employees involved in the scandal to be immediately fired and for the secretary to ask Luthi to submit his resignation.
“Besides being a sad commentary on the failures of certain public servants, this case shows us how the oil industry can hold sway over government officials,” Nelson said.
Nelson called for hearings into the scandal by the Senate Commerce Committee, on which he serves. The House Resources Committee is planning a hearing on the matter next week.
While not responding directly to the senator’s letter, Kempthorne said: “We must and we will eliminate any remaining negative elements in the Minerals Management Service.”
In his report, the inspector general said some MMS workers in the royalty-in-kind program took cocaine and marijuana and had “illicit sexual encounters.”
Government workers also got drunk at social events with employees of oil companies doing business with the agency and MMS workers had “brief sexual relationships” with industry contacts, the inspector general said.
The oil companies named in the report were Chevron CVX.N, Shell Oil RDSa.L, Hess Corp HES.N and Gary Williams Energy Corp. (Reporting by Tom Doggett; editing by Jim Marshall)
Our Standards: The Thomson Reuters Trust Principles.
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3287f57af84ba117cebd09dfcb9486b7 | https://www.reuters.com/article/rbssInvestmentServices/idUSL13631420081001 | CEO of French CO2 exchange BlueNext leaves company | CEO of French CO2 exchange BlueNext leaves company
By Reuters Staff1 Min Read
LONDON, Oct 1 (Reuters) - Andrei Marcu, chief executive of French carbon emissions exchange BlueNext, left the company after reaching a mutual agreement with the board of directors on Tuesday, the exchange said.
“We thank Mr. Marcu for his contribution to the company,” the spokesman said on Wednesday, adding that Serge Harry, chairman of the board, would become interim CEO.
Marcu, who joined BlueNext as CEO in April, was not immediately available for comment.
BlueNext, a joint venture between NYSE Euronext NYX.PA and France's Caisse des Depots, is Europe's main exchange for spot trading of EUAs, the emissions permits issued under the European Union's Emissions Trading Scheme. Marcu was formerly president of the International Emissions Trading Association (IETA), a business group representing players in the booming global emissions market.
Reporting by Michael Szabo; editing by Christopher JohnsonOur Standards: The Thomson Reuters Trust Principles.
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745f60395a598820765fc4967522401b | https://www.reuters.com/article/rbssInvestmentServices/idUSN2834717120080828?sp=true | Bank of NY Mellon data breach now affects 12.5 mln | Bank of NY Mellon data breach now affects 12.5 mln
By Jonathan Stempel3 Min Read
NEW YORK (Reuters) - Bank of New York Mellon Corp said on Thursday that a security breach involving the loss of personal information is much larger than previously reported, affecting about 12.5 million people, up from 4.5 million.
The case is the largest new reported U.S. data breach in 2008, as measured by the number of exposed records, according to the Identity Theft Resource Center.
Connecticut Gov. Jodi Rell, who announced a probe of the breach in May, in a statement said she is still pursuing a possible “substantial” fine, restitution and other remedies against Bank of New York Mellon.
Kevin Heine, a spokesman for the New York-based company, said the number of affected individuals had risen by 8 million from the 4.5 million reported earlier. Rell estimated the total number of customers that could be affected at 10 million.
According to Connecticut officials, the case stemmed from the bank’s February 27 loss of six to 10 unencrypted tapes, while it was transferring back-up tapes that contained names, addresses, birth dates and Social Security numbers.
“The vast dimensions of this data breach affect not only hundreds of thousands of individuals and businesses in Connecticut, but millions across our nation,” Rell said in a statement. She said the number of affected individuals grew following subpoenas that she ordered in May.
Bank of New York Mellon is the world’s largest custodial bank and one of the 10 largest asset managers. It said it is notifying affected individuals, but that there remains no indication that personal data has been accessed or misused.
Brian Rogan, the bank’s chief risk officer, said the bank is reviewing its security policies and procedures, and will offer affected individuals comprehensive fraud protection, including free credit monitoring.
Earlier this month, U.S. authorities charged 11 people from five countries with stealing tens of millions of credit and debit card numbers from several retailers including TJX Cos, in one of the largest identity theft schemes ever.
Bank of New York Mellon has a website, (www.bnymellon.com/tapequery), for customers seeking further information.
Editing by Andre Grenon, Gary HillOur Standards: The Thomson Reuters Trust Principles.
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78d244f8feec70e704eb4c0716220b21 | https://www.reuters.com/article/rbssITServicesConsulting/idUSN1213117420090812 | Shareholders challenge Google deal to buy On2 | Shareholders challenge Google deal to buy On2
By Reuters Staff3 Min Read
* Suit seeks to block Google’s acquisition of On2
* Says 60 cents/share well below recent On2 level
* Seeks class action status for On2 shareholders
SAN FRANCISCO, Aug 12 (Reuters) - Google Inc's GOOG.O deal to buy video compression software company On2 Technologies Inc ONT.A is being challenged in court by On2 shareholders unhappy about the $106.5 million price and the terms of the deal.
Google declined on Wednesday to comment on the suit, filed in Delaware Chancery Court on Monday and seeking class action status, as well as a permanent injunction blocking the deal. The suit also called on the defendants to account for all damages caused.
The move comes a week after Google announced the deal -- the first acquisition of a public company in its history. [ID:nN05225804]
The deal would give Google valuable technology as it seeks to reduce the cost of operating its YouTube video site and to foster the spread of video on the Internet.
Google’s offer of 60 cents a share represents a 57 percent premium from the closing price of On2’s stock on the last trading day before the announcement. According to the suit, however, the price is well below the level where On2’s stock traded in the few months prior to the proposed transaction.
The suit alleges that, on May 13, On2’s stock traded at 65 cents. The shares reached $1.16 in 2008, according to the suit.
According to Reuters data, On2’s shares began the second quarter at about 30 cents and ended it at above 40 cents.
The complaint also notes that On2 reported its best quarterly financial results in six quarters the day after the deal was announced.
“Defendants rushed to announce the proposed transaction at $0.60 per share on August 5th ahead of the positive earnings results announced the next day, thereby placing a cap on the company’s stock price,” the suit read.
According to the complaint, the deal contained various provisions -- including a “no shop” clause and a $2 million termination fee if On2’s board accepts a superior deal -- to ensure that no competing offers emerge.
On2 was not immediately available for comment. (Reporting by Alexei Oreskovic; editing by Andre Grenon)
Our Standards: The Thomson Reuters Trust Principles.
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b5e043a123fb369e00468b07cd5871f9 | https://www.reuters.com/article/rbssLeisureProducts/idUST23491120081030 | UPDATE 1-Nikon cuts profit forecast on chip equipment, yen | UPDATE 1-Nikon cuts profit forecast on chip equipment, yen
By Reuters Staff3 Min Read
*Cuts profit forecast by 40 pct on chip equipment, yen
*Lowers chip stepper sales target by 30 pct
*Rival ASML shares down 2 pct after announcement
*Nikon shares close up 13.8 pct before announcement (Updates with details, background)
TOKYO, Oct 30 (Reuters) - Japan's Nikon Corp 7731.T slashed its annual net profit forecast by 40 percent to below market expectations, citing weaker sales of semiconductor-making equipment and a stronger yen.
Shares of Netherlands-based ASML ASML.AS, Nikon's main rival in the chip equipment market, were down about 2 percent after the announcement.
Nikon cut its estimate for sales of new steppers in the current business year to March by 30 percent to 74 units, the latest victim of spending cuts by chipmakers adjusting their budgets as the global economy slows.
Steppers are multi-million dollar machines used in the production of semiconductors. Canon Inc 7751.T also competes in this market with Nikon and ASML.
Nikon said it now expects to post a net profit of 47 billion yen for the year, down from last year’s 75.5 billion yen and below a market consensus of 77.5 billion yen from a poll of 20 analysts by Reuters estimates.
It cut its sales forecast by 4 percent to 940 billion yen.
Nikon generates about three-quarters of its revenues outside the Japanese market, making its earnings vulnerable to the recent surge in the yen against the dollar, euro and other currencies.
Advantest Corp 6857.T has also been hurt by the chip market slump. The maker of semiconductor testing machines said on Thursday it swung to a net loss of 2.9 billion yen in the April-September first half. [ID:nT308OLZU4]
Nikon said digital camera sales remain strong.
It raised its annual target for shipments of digital single lens reflex cameras -- high-end models that use interchangeable lenses -- to 3.5 million units from 3.3 million, while lifting its compact camera forecast by 7 percent to 10 million units.
Nikon's rivals in the digital camera market include Canon, Sony Corp 6758.T and Panasonic 6752.T.
Prior to the announcement, shares of Nikon closed up 13.8 percent at 1,655 as part of a broad market rally. The stock has lost 57 percent so far this year, underperforming a 41 percent fall in the benchmark Nikkei average .N225. (Reporting by Nathan Layne; Editing by Edwina Gibbs)
Our Standards: The Thomson Reuters Trust Principles.
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0796268c2267eee7ed75334e19852e97 | https://www.reuters.com/article/rbssLeisureProducts/idUST33522420080704 | UPDATE 2-Canon to build $140 mln camera plant - source | UPDATE 2-Canon to build $140 mln camera plant - source
By Reuters Staff2 Min Read
(Adds source-based confirmation, details, share price)
TOKYO, July 4 (Reuters) - Canon Inc 7751.T plans to spend some 15 billion yen ($141 million) to build a new digital camera plant in Japan, with production scheduled to begin by the end of 2009, a source close to the matter said on Friday.
Production capacity of the plant, to be located in Nagasaki prefecture on Japan’s southern major island of Kyushu, is not available, but the Nikkei business daily said the factory would be capable of making about 4 million digital cameras a year.
Canon, which offers IXY and EOS brand models, is the world’s largest digital camera maker, controlling 19 percent of the global market, according to research firm IDC.
But it faces fierce competition from Sony Corp 6758.T in compact models, and from Nikon Corp 7731.T in more lucrative single lens reflex cameras, which are high-end and have interchangeable lenses.
Canon aims to boost its digital camera sales by 20 percent in calendar 2008 to 29.4 million units.
The new plant would come as some domestic rivals such as Fujifilm Holdings Corp 4901.T move camera production overseas to cut costs.
Canon currently operates two digital camera production facilities in Japan, one in China and another in Malaysia.
Shares in Canon were flat at 5,260 yen in early afternoon trade, underperforming the Tokyo stock market's electrical machinery index .IELEC.T, which was up 0.2 percent. ($1=106.79 yen) (Reporting by Kentaro Hamada, Taiga Uranaka, Kiyoshi Takenaka; Editing by Brent Kininmont)
Our Standards: The Thomson Reuters Trust Principles.
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bf3840319d91fdfd758b0b83ca54983d | https://www.reuters.com/article/rbssPersonalServices/idUSBNG49351220091116 | UPDATE 2-Apollo unit gets recertified for student aid programs | UPDATE 2-Apollo unit gets recertified for student aid programs
By Reuters Staff2 Min Read
* University of Phoenix gets Title IV recertification
* New program participation expires Dec. 31, 2012
* Shares rise 9 percent (Adds details, analyst comment, share movement)
Nov 16 (Reuters) - For-profit education provider Apollo Group Inc APOL.O said its unit, University of Phoenix, has been recertified for participation in federal student financial aid programs under Title IV of the Higher Education Act for three years.
The company’s shares, which have fallen 26 percent following news last month of an informal regulatory inquiry over its revenue recognition practices, rose as much as 9 percent Monday morning on Nasdaq.
The University of Phoenix, whose certification for the Title IV programs expired in June 2007, had been participating in the programs on a month-to-month basis pending recertification.
The University of Phoenix applied for recertification in March 2007, and in February this year, the DoE performed a review of its policies and procedures involving Title IV programs.
In a statement, Apollo said it was informed by the U.S. Department of Education that the new participation agreement expires Dec. 31, 2012.
The majority of Apollo’s fiscal 2009 consolidated net revenue came from Title IV financial aid program funds, the company noted in its annual report filed with the U.S. Securities and Exchange Commission on Oct. 27.
Robert W. Baird analyst Amy Junker said the news removes an overhang on the company’s shares, but the SEC informal inquiry will continue to weigh on the stock.
She cut her price target on shares of Apollo, one of the largest, publicly traded for-profit institutions, to $60 from $77.
Shares of education companies have been rattled by regulatory concerns over the last few months as investors fear more scrutiny into the sector under the administration of U.S. President Barack Obama.
Shares of Apollo touched a high of $58.49 before paring some gains to trade up $4.37 at $58.23. (Reporting by A.Ananthalakshmi in Bangalore; Editing by Anne Pallivathuckal)
Our Standards: The Thomson Reuters Trust Principles.
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96ecf911bdbd7c8cf742aeb61e7cdf7d | https://www.reuters.com/article/rbssRealEstateOperations/idUSHKG24591720080725?pageNumber=1&virtualBrandChannel=0 | Indonesia property -- a free, though not liquid, lunch? | Indonesia property -- a free, though not liquid, lunch?
By Dominic Whiting4 Min Read
HONG KONG, July 25 (Reuters) - Where can you get prime land, thousands of homes and some shopping malls virtually for free?
Indonesia, it seems.
While global investors shirk at anything property-related after the U.S. subprime mortgage meltdown, Indonesian developers are possibly Asia’s best kept secret, because brisk home sales contradict share prices that reflect a market crash.
Property stocks in Southeast Asia’s largest economy are so cheap they are offering their property for next to nothing, said CLSA analyst Daniel Oen.
Ciputra Development CTRA.JK, whose cash almost equals its market capitalisation, is gifting investors stakes in three retail-hotel complexes, a central Jakarta commercial development and housing projects, Oen calculates.
Using his model, which takes market capitalisation, deducts cash and a value for recurring income, Summarecon Agung SMRA.JK is offering its land bank to stock investors at a 70 percent discount to its own selling price.
“No question, it’s a bargain right now,” Oen said.
Owning stocks rather than land involves taking on the risk of a company going bust. But although the Indonesia property stock index .JKPROP has fallen 33 percent this year because of rising inflation and interest rates, developers are prospering.
Ciputra Development more than doubled its home presales in the first half of this year and rival PT Bakrieland Development ELTY.JK notched up 76 percent growth.
Housing booms are turning to slowdowns as rising interest rates bite in India, Singapore and Hong Kong. China is targetting property to cool its economy, and inflation and high financing costs have cast a pall over Asia’s property trusts.
But in Indonesia, no stranger to high inflation and interest rates, Jakarta home prices are up around 15 percent from a year ago, allowing developers to nudge margins up despite a similar rise in land and construction costs.
And while interest rates are rising, the introduction of fixed rate mortgages is proving popular with homebuyers. At 10.25 percent, they seem expensive internationally but are a bargain compared with the 18 percent going rate a couple of years ago.
NO LIQUIDITY
Ciptra Development and Bakrieland are trading at 66 percent and 54 percent discounts to forecast 2008 net asset value, compared to a 26 percent average discount in the rest of Asia, where housing markets are struggling.
But fund managers are yet to take the plunge, because low trade volumes for Indonesian property stocks means it is difficult for them to invest nimbly.
Only around $1 million worth of Ciptra Development shares change hands each day, and the most liquid stock is Bakrieland, with around $10 million of daily volume.
“It’s not a very meaningful part of our universe,” said Frankie Lee, property fund manager at Henderson Global Investments in Singapore.
Housing sales growth will probably weaken in coming months because of rising interest rates, according to Credit Suisse analyst Teddy Oetomo, but a complete market freeze is unlikely because the resource-rich economy is in decent shape.
And most developers have learnt from a torrid time with inflation in 2005, and have signed “price-volume” contracts with cement and steel suppliers, capping cost rises to 2-3 percent this year, compared to the 7-8 percent hikes in 2005.
“The market has punished stocks, expecting a worst case scenario, as in 2005,” Oetomo said. “But things aren’t as bad as 2005. Some of the money made from the commodities boom is being invested in Jakarta and Surabaya property.”
Our Standards: The Thomson Reuters Trust Principles.
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7b1d1a8448db2dd1675a4ab6da1366f1 | https://www.reuters.com/article/rbssRetailCatalogInternetOrder/idUSN2629894320081226 | UPDATE 2-Amazon claims record holiday orders in '08 season | UPDATE 2-Amazon claims record holiday orders in '08 season
By Reuters Staff2 Min Read
(Adds details on orders, analyst quote, updates shares)
NEW YORK, Dec 26 (Reuters) - Online retailer Amazon.com Inc AMZN.O on Friday reported its best holiday sales season yet, even as sales and traffic at U.S. store chains were the weakest in decades, sending its shares up nearly 4 percent.
Analysts have pointed to Amazon as a rare bright spot in this year’s holiday shopping season due to its scale and flexibility, as retailers try to outdo each other with deep discounts to lure consumers during a recession.
Online sales were also helped by winter storms that hit large sections of the United States on the last major shopping weekend before Christmas.
In a release titled “Amazon.com’s 14th holiday season is best ever,” the company said more than 6.3 million items were ordered on its site worldwide for the peak shopping day of Dec. 15, amounting to 72.9 items ordered per second. On its peak day, it shipped more than 5.6 million units.
However, the company gave no financial details regarding the sales, such as how its margins fared with the discounts seen across the retail sector.
Stifel Nicolaus analyst Scott Devitt said Amazon’s day of peak orders represented a 17 percent rise from a year ago, while its peak shipments represented an increase of 44 percent. He rates the share a “buy” with a $61 price target.
Amazon shipped merchandise to more than 210 countries, and said it shipped more than 99 percent of orders on time for holiday deadlines.
Amazon shares rose 3.6 percent to $53.31. (Reporting by Michele Gershberg; Editing by Derek Caney and Steve Orlofsky)
Our Standards: The Thomson Reuters Trust Principles.
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644c73877fb7bd235f375c1fe51d7e43 | https://www.reuters.com/article/rbssRetailSpecialty/idUSN2336278120090423 | UPDATE 3-Amazon beats Q1 sales, profit estimates, shares up | UPDATE 3-Amazon beats Q1 sales, profit estimates, shares up
By 5 Min Read
* Q1 EPS 41 cents vs Street’s 31 cents
* Sees Q2 revenue $4.3 bln-$4.75 bln
* Sees Q2 operating income $110 mln-$190 mln
* Shares up over 2 percent in extended trade (Adds comments, details on Kindle, valuation comparisons)
By Alexandria Sage
SAN FRANCISCO, April 23 (Reuters) - Amazon.com AMZN.O on Thursday beat Wall Street expectations for quarterly earnings and revenue as lowered prices lured more shoppers online and sales of its Kindle electronic reader gained momentum.
Shares in the global online retailer, which sells everything from car parts to comic books, rose 2.3 percent in after-hours trade despite a weak second-quarter profit view.
The company increased revenue an unexpectedly strong 18 percent as cash-strapped consumers went shopping online and Amazon’s own discount shipping program spurred purchases.
“Sentiment is so positive on Amazon, for the stock to decline it would have had to miss numbers entirely,” said BWS Financial’s Hamed Khorsand. “You have this aura of positive sentiment around the stock. That will keep the stock afloat.”
Promotions and cost-consciousness -- as customers eschewed a trip to the mall in favor of browsing for free online -- helped it post a 21 percent sales gain in North America.
“It tells you how well they’re executing and winning business with customers and increasing share of wallet with their consumers,” said Steve Weinstein at Pacific Crest Securities, which does not own Amazon stock.
He noted that Amazon’s U.S. business was growing faster than the overall e-commerce market. “It’s an incredible feat.”
Chief Executive Jeff Bezos said sales of the company’s Kindle had “exceeded our most optimistic expectations.”
The Kindle, sales of which are not disclosed, has garnered out-sized attention but analysts cannot speculate to what extent the $359 device contributes to profit, if at all.
“The important takeaway from Kindle is not only is it a revenue generator, but it’s also incremental revenues from e-books being sold,” Khorsand said.
PRIME GROWTH
Bezos also said shoppers enrolled in the Amazon Prime discount shipping program were boosting growth, as they were picking up goods across multiple categories.
Executives made no reference during a call with analysts to a difficult global economy that has battered rivals, including e-commerce giant eBay Inc EBAY.O, whose results on Wednesday beat Wall Street estimates despite sluggish sales in its marketplaces unit. [ID:nLN730120]
Amazon’s first-quarter net income rose 24 percent to $177 million, or 41 cents per share, from $143 million, or 34 cents per share, a year earlier. Analysts, on average, had been expecting earnings of 31 cents a share, according to Reuters Estimates.
Revenue rose 18 percent to $4.89 billion, but excluding the negative impact of a stronger dollar, sales rose 25 percent. Wall Street had been expecting sales of $4.75 billion.
Once criticized for spending on technology investments and putting sales ahead of profits, Amazon is now praised by Wall Street analysts who laud its ability to attract consumers in the midst of a recession.
Besides lowering prices, the company has widened its selection, and the recent closures of retailers like Circuit City CCTYQ.PK have only helped the online giant's sales.
“They’re choosing to use pricing and shipping as a lever to drive sales. It is working mathematically for them,” Weinstein said.
DISCOUNT SITE, PRICEY STOCK
But a run-up in its stock -- up 57 percent since January -- has made its valuation soar, scaring off potential investors. Amazon is now valued at 53 times projected 2009 earnings, compared to the 16.5 of the Standard & Poor's Retailing Index .GSPMS, a valuation many analysts deem overly rich.
International sales in the quarter rose 15 percent, but on a currency neutral basis that figure was 28 percent.
Amazon also credited inventory management and growth in independent sellers who use the site as their marketplace as reasons for a boost in gross margin, which was offset by lower prices. Amazon gets an undisclosed cut of what is sold.
Bezos said a 300 percent increase in items sold by these independent sellers but shipped by Amazon under its fulfillment program was due to Amazon Prime. If sellers work with Amazon’s fulfillment program, their goods are eligible for the shipping discount, thereby driving sales, he said.
Amazon said it expects second-quarter revenue of $4.3 billion to $4.75 billion, or a gain of between 6 percent and 17 percent. Operating profit is expected to range from $110 million to $190 million, a decline of between 12 percent and 49 percent. In the year-ago second quarter, results were boosted by a one-time gain.
Wall Street has been expecting operating income of $178.5 million, above the mid-point of Amazon’s guidance.
Amazon’s shares rose 2.3 percent in extended trade to $82.50 after closing at $80.61, up nearly 2 percent, on Nasdaq. (Reporting by Alexandria Sage; Editing by Edwin Chan, Carol Bishopric, Richard Chang)
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