RBS reports record British loss

RBS reports record British loss
27-02-2009

The Royal Bank of Scotland has reported a net loss of 24.1 billion pounds in 2008, the largest shortfall ever recorded by a British company. RBS, which is nearly 70-percent owned by the British government after a massive bailout, said it would sell off a large part of its assets to re-focus its activities on the domestic market. It added that the state had agreed to insure RBS "toxic" assets worth 325 billion pounds, and would cover 90 percent of losses stemming from such holdings. The beleaguered bank suffered the losses after a catastrophic year when the financial crisis sparked by the failure of US bank Lehman Brothers brought it to the brink of collapse. RBS was forced to write off 16.2 billion pounds on its disastrous acquisition of Dutch bank ABN Amro at the top of the market in 2007. Chairman Philip Hampton blamed "unprecedented turbulence" in the financial markets for the results. "We owe our continued independence to the UK government and taxpayers and are very thankful for their support," he said.

GM post $9.6 billion loss for 4Q

GM post $9.6 billion loss for 4Q
27-02-2009

The struggling American automaker, General Motors, has posted a 9.6 billion US dollar fourth-quarter loss. This brought its losses for the whole of 2008 to almost 31-billion dollars. GM said it now expects an opinion from its auditors as to whether the company remains a "going concern" when its annual report is issued in March. The company has received 13.4-billion dollars in federal loans so far this year and says it needs up to 30-billion dollars more to stay out of bankruptcy. Top GM executives were in Washington today to meet with the Obama administration's auto task force to discuss further loans.

CLP gives profit warning

CLP gives profit warning
27-02-2009

CLP Holdings has warned that its profit in the coming year could drop thirty percent, as a result of a new scheme of control agreement with the government. The warning was issued as the group announced a slight drop in earnings for last year. Profit came in at 10.4 billion dollars - which is down 1.7 percent from 2007. Profits were up from the group's overseas business, but down slightly in Hong Kong.

Budget pledge to create 60,000 jobs

Budget pledge to create 60,000 jobs
26-02-2009

The Financial Secretary, John Tsang, has pledged to increase government spending to create more than 60,000 jobs and internships over the next three years, to combat the economic downturn. Delivering his budget in the Legislative Council, Mr Tsang also unveiled a series of tax and rate concessions. Spending is being increased despite forecasts that Hong Kong faces its worst recession for more than ten years, with the government expecting to record a deficit for at least the next five years. Mr Tsang said the economy would shrink by between two and three percent. He said the territory had slipped further into recession in the fourth quarter of 2008, with GDP falling 2.5 percent year-on-year "This once-in-a-century financial turmoil has spread from the financial markets to the real economy, leading to a synchronised global recession," Mr Tsang told legislators. "Being a small, open economy, Hong Kong will inevitably be hit by the turmoil." Despite reporting a HK$4.9 billion deficit for the past year, he pledged to boost government spending by nearly 20 percent to HK$301 billion to stimulate employment and ease the impact of the downturn. A total of HK$1.6 billion will be allocated for the creation of around 62,000 jobs. Most of this will be used to extend a subsidy scheme for residents of dilapidated buildings. Around 4,000 university graduates will be given internship opportunities in local and mainland firms, and the Labour Department will receive HK$400-million to increase subsidies to employers to hire middle-aged and disabled workers. Salaries tax will be cut -- at a cost of HKS4.1 billion -- with taxpayers enjoying a reduction of up to HK$6,000 in their next bill. Rates for homeowners will also be waived for two quarters -- at a cost of HK$4.2 billion.

Obama Sells Hope in Speech

Obama Sells Hope in Speech

President Obama asks for trust in his stimulus plan, in a speech that was aimed at real Americans as much as Congress, WSJ's Jerry Seib says.

Obama Addresses Congress

Obama Addresses Congress

President Obama says after a period of fiscal irresponsibility, it is time for Americans to take charge of their future, in an address to a joint session of Congress.

Hu wants more done to boost economy

Hu wants more done to boost economy
25-02-2009

President Hu Jintao has called for more "powerful" measures to counter further deterioration in the mainland economy. In a speech to the Communist Party's Politburo, Mr Hu called for more efforts to boost domestic demand. But he gave no details of specific policy proposals. The party has recently signalled that it intends to take measures during the National People's Congress session next month, to cushion the blow from the slowing economy.

SFC seeks to intervene in PCCW deal

SFC seeks to intervene in PCCW deal
25-02-2009

The Securities and Futures Commission will seek to intervene in the controversial PCCW privatisation deal at a High Court hearing today. The securities regulator, which has been investigating allegations of vote-rigging at a shareholders' meeting this month, said it would ask the court to let it be heard in the case. The move raises the possibility of more delays for the multi-billion dollar privatisation deal which was approved at the shareholders' meeting. In another development, thousands of PCCW staff are working-to-rule today to protest against lay-offs. It's thought about 80 percent of employees may refuse to work overtime. Terry Ip, of the PCCW staff union, told RTHK's Hong Kong today that the action by staff would not have a major effect on the company's operations.

Ping An boss gives back salary

Ping An boss gives back salary
25-02-2009

The Chief Executive of Ping An Insurance, Peter Ma, will forgo his salary for the whole of last year, after the company lost US$2.3 billion on its investment in Fortis. The company said he earned US$9.7 million in 2007. It did not give a figure for last year. The insurer has forecast a "significant" drop in profit for 2008.

EU member, Latvia, now rated as junk

EU member, Latvia, now rated as junk
2009-02-25 HKT 08:24

Latvia's sovereign debt has been cut to so-called junk status as its economy struggles with the financial crisis. The credit ratings agency Standard & Poor's has reduced its rating to BB+/B, which is below what the agency deems to be investment grade. S&P predicted that Latvia's economy would contract by 12 percent this year, following its 4.8 percent decline in 2008. Credit rating agencies, like S&P, have been heavily criticised for their role in the financial crisis. They have been accused of awarding their top ratings to mortgage-backed products which later turned out to be worthless.


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Wall Street surges after 12-year lows

Wall Street surges after 12-year lows
25-02-2009

On Wall Street, shares roared higher overnight - a day after key indexes fell to 12-year lows - as investors returned to the market in the hunt for bargains. The blue-chip Dow Jones Industrial Average rose 236.08 points - or just over three percent - to 7,350.86 after the closing bell. Meanwhile, the tech-heavy Nasdaq composite leapt 54.11 points, or almost four percent to 1,441.83 and the Standard & Poor's 500 broad-market index rallied 29.75 points or four percent to a close of 773.08.

FS delivering budget address

FS delivering budget address
25-02-2009

The Financial Secretary, John Tsang, has begun delivering his budget address in the Legislative Council. Job creation is expected to be the government's top priority with the economy expected to have tailed off significantly during the first quarter of the year. The unemployment rate is already up to 4.6 percent - the highest in more than two and a half years. But many believe the worst is still ahead, with thousands of new university graduates flooding the job market this summer. Given this, the government may propose a subsidy for companies providing internships to fresh graduates. It's also expected to speed up infrastructure projects to drive the economy. But these measures will add to the burden on the public purse. The government has forecast a budget deficit of $7.5 billion for the current fiscal year. Estimates from tax accountants swing from a surplus of HK$10 billion to a deficit of HK$9.7 billion, but many are predicting much tougher times to come. And this may ultimately dash taxpayers hopes of substantial sweeteners in the budget - expecially given the tax rebates, rates and public housing rent waivers and the power subsidy handed out last year.

Recession could last to 2010 - Bernanke

Recession could last to 2010 - Bernanke
25-02-2009

US Federal Reserve chief Ben Bernanke has warned Congress that without the right policies from the government, the US recession could last into 2010. But he said if the Obama administration and the central bank can restore some measure of financial stability, 2010 could be a year of recovery. Mr Bernanke made the comments to the Senate Banking Committee. He also warned that the global nature of the downturn was a threat because exports would be hit.

Macy's sees sharp fall in earnings

Macy's sees sharp fall in earnings
25-02-2009

Flagship US department store chain, Macy's, has reported an almost 59 percent drop in fourth-quarter earnings. The company said its results were dragged down by weak sales and one-time costs associated with the consolidations of regional divisions and store closings. The Cincinnati-based company said that in the three months ended January 31st, it earned US$310 million, or 73 cents per share. That compares with US$750 million, or US$1.73 per share, a year earlier. Sales fell 7.7 percent to US$7.93 billion from US$8.59 billion a year ago.

Citigroup's future

Citigroup's future

CNN's Mary Snow reports on fears about nationalizing banks.

What would it mean?

Fashion economics

Fashion economics

CNN's Atika Shubert interviews fashion designer Maria Grachvogel about how high fashion is dealing with recession.



Website: Style & Fashion

Stimulus Money Earmarked for Health-Care

Stimulus Money Earmarked for Health-Care

President Obama says money from the economic stimulus plan will be released to states for health-care costs in two days, but that the nation's governors will be central to the success. Video courtesy of Fox News.

UBS Causes First Cracks in Swiss Banking

Secret No More: UBS Causes First Cracks in Swiss Banking

WSJ's Deputy Markets editor Dennis Berman discusses the latest on UBS, which handed over 250 accounts to Swiss authorities as part of a U.S. investigation into tax evasion. He tells colleague Adam Najberg the Justice Department is making an example out of UBS and how the loss of secrecy will affect its future.

Oscar Wrap-Up: 'Slumdog Millionaire' Cleans Up

Oscar Wrap-Up: 'Slumdog Millionaire' Cleans Up

"Slumdog Millionaire," is the big winner at this year's Academy Awards. The rags to riches tale about a boy from India's slums takes Oscars for best film, director, cinematography, original song, sound mixing and film editing. Video courtesy of Reuters.

Thailand's economy shrinks

Thailand's economy shrinks

CNN's Dan Rivers explains how the global economic slowdown has affected the Thai economy.

Argentina's warning signs

Argentina's warning signs

Many analysts believe a recession is imminent for one of South America's largest economies. CNN's Brian Byrnes reports.

China snaps up bargains

China snaps up bargains

As commodity prices collapse, China sweeps in to buy resources around the world. CNN's John Vause reports.

Citi's bad image in Hong Kong

Citi's bad image in Hong Kong

Citibank in Hong Kong is reportedly charging around 45 percent interest to some borrowers. CNN's Eunice Yoon reports.

Ericsson remains upbeat

Ericsson remains upbeat

CNN's Adrian Finighan sat down with Ericsson CEO Carl-Henric Svanberg to discuss the state of the company.

Frankfurt stocks hit four-year low

Frankfurt stocks hit four-year low
24-02-2009

Frankfurt's DAX stock index hit a four-year low on Monday, falling below 4,000 points for the first time since October 2004 as Europe's other leading markets fell on concerns for the financial sector. The DAX dropped 1.95 percent to close at 3,936.45 points after losses on Wall Street. London's FTSE 100 index fell 0.99 percent to close at 3,850.73 points. In Paris the CAC 40 fell 0.82 percent to 2,727.87 points.

Business Update: Asia rally on Citi

Business Update: Asia rally on Citi

Feb 23 - Asian stocks rally on reports the U.S. government may increase its stake of Citigroup to 40 percent

* Japan's SFCG goes bankrupt

* China warned of second wave of crisis

* Singapore, Thailand GDP plummet

Stefanie McIntyre reports

Oscar at 81

Oscar at 81

The 81st Academy Awards are now in the history books.

CNN's Kareen Wynter takes a look at this years winners.

Yves Saint Laurent auction

Yves Saint Laurent auction

It is the auction of a lifetime -- Yves Saint Laurent's lifetime. CNN's Jim Bittermann reports

India feels like a 'Millionaire'

India feels like a 'Millionaire'

CNN's Malika Kapur reports on the mood in India from Mumbai after 'Slumdog Millionaire' wins the Academy Award for best picture.

Saudi Arabia economic outlook

Saudi Arabia economic outlook

Saudi Arabia is already emerging from an international economic slump. CNN's Nic Robertson reports

Slumdog inspiration

Slumdog inspiration

CNN's Sara Sidner reports on the project in India that inspired the book and movie "Slumdog Millionaire."

Jump in consumer prices

Jump in consumer prices
23-02-2009

Consumer prices rose 3.1 percent last month from the same period last year. That's a big jump from December's 2.1 percent inflation rate, but the government says the higher CPI figure was largely down to strong consumption over the Lunar New Year in January. It expects inflation to fall as economic growth tails off over the course of the year. Food prices led the rise - with rice surging almost 40 percent in January from a year ago. However, after discounting the effect of the government power subsidy, the underlying inflation rate was 4.5 percent - slightly lower than the December figure.

Thailand's growth shrinks to 2.6%

Thailand's growth shrinks to 2.6%
23-02-2009

Thailand's economy grew 2.6 percent last year - down from 4.9 percent in 2007. The slower growth was largely due to a contraction in the final quarter of last year. It shrank 4.3 percent, because of slowing production growth, manufacturing and exports. The Thai economy is expected to contract one-percent this year. At the same time, Singapore says its economy could shrink by more than five percent this year, exceeding the government's revised forecast of a contraction ranging from two to five percent.

HK can benefit from China stimulus - TDC

HK can benefit from China stimulus - TDC
23-02-2009

The Trade Development Council says Hong Kong's service sector should seize the opportunities offered by China's 4-trillion yuan plans to boost domestic consumption. The first 100-billion yuan tranche of the economic stimulus package was announced in December. Rural and urban infrastructure development together account for nearly 60 percent of the package, with another 12 percent earmarked for environmental efforts.

Call for 'better use' of reserves

Call for 'better use' of reserves
23-02-2009

Legislative councillor, Cyd Ho, says the government must make better use of Hong Kong's huge fiscal reserves during the current financial crisis and making fighting unemployment the number one priority. The Civic Act-up lawmaker said that in the face of the 'economic tsunami', the administration should provide more short-term relief and invest in sustainable development. Speaking on RTHK's Letter to Hong Kong, Ms Ho also said it was time for an in-depth public debate on the future direction of fiscal policy. She said subsidies for so-called grass-root, or low-income, workers would have a greater impact on the local economy than tax-cuts for the better-off. This was because those trying to make ends meet were more likely to spend their money in Hong Kong.

OZ Minerals 'needs' China cash

OZ Minerals 'needs' China cash
23-02-2009

Debt-laden Australian miner OZ Minerals has said it would go into receivership if a A$2.6 billion takeover offer from the mainland's Minmetals does not proceed. While some Australian politicans have expressed unease at Chinese investment in the country's resources sector, OZ Minerals chief executive Andrew Michelmore said last week's offer had saved his company. The proposed deal came days after China's state-owned aluminium firm Chinalco said it was putting over US$19 billion into another trouble Australian mining giant, Rio Tinto. Senators from across the Australian political spectrum have raised concern about Beijing's state-owned entities buying into the hugely important resources sector. However, Mr Michelmore said he was comfortable with Chinese money and believed Minmetals would follow corporate guidelines. Before the Minmetals offer, OZ Minerals flagged asset write-downs of up to A$2.8 billion due to steep commodity price falls sparked by the global financial crisis.

US-China economies interlinked: Clinton

US-China economies interlinked: Clinton
23-02-2009

The American Secretary of State, Hillary Clinton, has said on the last day of a visit to Beijing that the economies of China and the US are interlinked, and would rise or fall together. Mrs Clinton said China was wise to retain its major investment in US treasury bonds. She said the two countries were in the same boat and were rowing together.

Europe backs financial clampdown

Europe backs financial clampdown
23-02-2009

European leaders have backed sweeping new regulations for financial markets and hedge funds at a summit in Berlin as politicians and nations scramble to tame the global economic crisis. German Chancellor Angela Merkel hosted heads of state and finance ministers from Europe's largest economies to try to establish a common European position on economic reforms before an April 2 summit of the Group of 20 nations. "All financial markets, products and participants including hedge funds and other private pools of capital which may pose a systematic risk must be subjected to appropriate oversight or regulation," Ms Merkel said in a statement released on behalf of the summit members, following the talks. The statement said top officials from Britain, France, Italy, Luxembourg, Spain, the Netherlands and Czech Republic agreed on key points during their one-day meeting. Those ideas will be taken up by the European Council on March 19-20, then presented to the G-20 meeting in London. "A clear message and concrete action are necessary to engender new confidence in the markets and to put the world back on a path toward more growth and employment," Ms Merkel said. European leaders backed Ms Merkel's call for a "charter of sustainable economic activity" to guide a reduction of economic imbalances and to stabilize financial markets. The charter would subject all financial market activities around the globe to regulation, including credit rating agencies.

Asian ministers uphold free markets

Asian ministers uphold free markets
23-02-2009

Asian finance ministers have pledged to uphold free trade and investment in the midst of the global economic slowdown. At a meeting in Thailand they also said they would allocate an additional US$40 billion to protect falling currencies. The ministers from 10 Southeast Asian nations as well as China, Japan and South Korea agreed to boost funding for the Chiang Mai Initiative - an arrangement forged after the 1997 Asian financial crisis to address foreign reserve deficits through bilateral currency swaps - from $80 billion to $120 billion. The 10 members of the Association of Southeast Asian Nations will provide 20 percent of funding, with 80 percent from China, Japan and South Korea. The plan is expected to be approved at an ASEAN summit in Hua Hin, Thailand, from February 27 to March 1. "We reaffirm our determination to dedicate ourselves to increasing the free flow of trade and investment, to standing firm against protectionist measures which would worsen the economic downturn," the ministers said in a statement.

Could nationalization help?

Could nationalization help?

With banks collapsing around the world, CNN's Jim Boulden looks at a new buzzword: "Nationalization."

Nationalizing banks

Nationalizing banks

CNN's Anderson Cooper talks with HLN's money expert Clark Howard about nationalizing U.S. banks.

China's high-tech trade slows

China's high-tech trade slows
22-02-2009

The value of the mainland's external trade in new and high-tech products rose by 8.6 percent last year to nearly US$755-billion. But the growth rate for the products was 12.6 percent down from 2007. The General Administration of Customs said the slowdown in growth was because of the ebbing demand both at home and abroad. It said the ongoing financial crisis and the appreciation of the yuan also caused exports to decline.

Ma urges economic pact with Beijing

Ma urges economic pact with Beijing
22-02-2009

Taiwan's President, Ma Ying-jeou, has called for a wide-ranging economic pact with Beijing as part of his government's measures to tackle the island's recession. Mr Ma also vowed to speed up public infrastructure projects, loosen regulations and offer more tax incentives to boost investment. Mr Ma made the comments at a cabinet meeting after the release of worse-than-expected data indicating a record contraction of Taiwan's economy.