Saturday, April 18, 2009

European share prices close higher


European share prices close higher
18-04-2009

European shares closed higher rising for the sixth straight week, with banks gaining after better-than-expected results from Citigroup and General Electric.

The index of top European shares rose 1.6 percent, its highest close in more than two months.

Banks were given a boost, after Citigroup reported first-quarter revenues of $24.8 billion and a loss of 18 cents per share, better than forecasts.

Britain's Footsie 100, Germany's DAX and France's CAC-40 closed between one and 1.8 percent higher.

US stocks eke out modest gains


US stocks eke out modest gains
18-04-2009

US stocks eked out modest gains, after stronger-than-expected profit reports from Citigroup and General Electric.

Wall Street's winning streak extended to a sixth week.

The Dow Jones Average edged up almost 6 points, to close at 8,131 - the highest close for the blue-chip index in over two months.

The Nasdaq composite added 2 points, to a five-month high of 1,673;while Standard & Poor's 500 index increased 4 points, to 869.6.

The market ended positive for the sixth consecutive week, in a lackluster session.

Bank reports 12.5% Q1 profit fall


Bank reports 12.5% Q1 profit fall
16-04-2009

Another of America's biggest banks, JP Morgan Chase, has reported better than expected earnings.

The bank announced a 12.5% drop in first quarter net income of 2.1-billion dollars, compared with 2.4-billion dollars the same time a year ago.

However, its revenue increased 45% to 25-billion dollars, mostly due to its takeover of Washington Mutual.

UBS shareholders warned of hard times


UBS shareholders warned of hard times
16-04-2009

The new chief executive of the giant Swiss bank, UBS, has warned shareholders the company faces a long road back to success, after losing $US1.7 billion in the first three months of this year.

Oswald Gruebel said UBS would face more job cuts -- nearly 9,000 will go, in addition to the 11,000 already lost over the past two years.

UBS cutting another 7,500 jobs


UBS cutting another 7,500 jobs
16-04-2009

Switzerland's biggest bank, UBS, says it will cut an additional 7,500 jobs after reporting a loss for the first quarter.

The bank will reduce its workforce to 67,500 in 2010, from a previous target of 75,000.

The bank said the job cuts, together with reductions in marketing and sponsorship, would help save as much as US$3.5-billion.

It reported a first quarter loss of almost US$1.75-billion.

China's GDP growth slows


China's GDP growth slows
17-04-2009

Annual growth in China's gross domestic product slowed in the first quarter of 2009 to 6.1 percent, the National Bureau of Statistics has announced. It's the weakest growth since quarterly records began in 1992, but some analysts see signs of a recovery.

Growth was 6.8 percent in the last quarter of 2008, but the first quarter GDP figure dropped as exports fell 17 percent in March.

Beijing has said it is determined to achieve annual growth of 8 percent, and to expand its domestic demand.

Worst of crisis over


Worst of crisis over
18-04-2009

The British trade minister, Lord Davies, says the global financial crisis may have bottomed out - and he doesn't think there will be a second wave.

Speaking during a visit to Hong Kong, he also said that a new economic order is emerging that will see China, India and Brazil playing a greater role in world economic affairs.

Cathay makes cuts as revenue plunges


Cathay makes cuts as revenue plunges
18-04-2009

Cathay Pacific has announced further cost-cutting measures, after revenue plunged 22 percent in the first quarter of the year .

All 17,000 employees are being asked to take unpaid leave ranging from one to four weeks in the next 12 months.

The airline's latest move follows an annual loss of HK$8.6-billion in 2008 - its first loss since the height of the Asian financial crisis in 1998.

"We have no option but to take measures that will help us weather the current storm and maintain the long-term sustainability of the business,' said chief executive Tony Tyler in a statement.

Cathay Pacific and its subsidiary Dragonair reported a 22.4 percent year-on-year decline in turnover in the first quarter.

"A toxic combination of low fares, a big drop in premium travel, weak cargo loads, poor yields and a negative currency impact is making it more important than ever to preserve cash," Mr Tyler said.

Cathay Pacific said it would reduce planned passenger capacity by eight percent and that of Dragonair by 13 percent, starting next month.

It plans to cut cargo capacity by 11 percent, with freighter frequency falling t 84 flights a week from their 2008 peak of 124.

The company is also grounding two more of its Boeing 747 freighters, taking the total to five, and negotiating the sale of five aircraft.

Reaction from Cathay Pacific staff unions has been mixed.

The local staff union said it recognised the big challenge the airline is facing during the economic recession and understood the need to work together to help the company.

It said it appreciated that the airline had not decided to fire staff or make any long -term salary cuts.

However, the unions representing Cathay Pacific and Dragonair flight attendants expressed reservations.

Rise in HK bankruptcies


Rise in HK bankruptcies
18-04-2009

The number of bankruptcy application filed by Hong Kong companies rose to 1,872 last month - the highest level since July 2003.

The latest figure went up by a quarter from the previous month, and doubled from the same month last year.

Sony Ericsson cutting 2,000 more jobs


Sony Ericsson cutting 2,000 more jobs
18-04-2009

Mobile phone maker Sony Ericsson will cut an additional 2,000 jobs around the world, after it reported a first quarter loss of US$384-million.

The company vowed to deepen job cuts announced last year, in a bid to reduce costs and return to profitability.

It said the recession in major economies had hit demand for its handsets.

IBM setting up Cyberport laboratory


IBM setting up Cyberport laboratory
18-04-2009

The US company, IBM, will set up a cloud computing laboratory at Cyberport.

The lab will build on the email technology of a Hong Kong-based firm called Outblaze, whose email assets have been bought by IBM.

Cloud computing is a term referring to the use of online applications and services.

Wednesday, April 15, 2009

Goldman Sachs posts $US1.81 bln profit


Goldman Sachs posts $US1.81 bln profit
14-04-2009

US banking giant Goldman Sachs has reported a first-quarter net profit of 1.81 billion US dollars, soundly topping market expectations.

Goldman Sachs said after the stock market close that it had earnings per share of 3.39 dollars, above consensus market forecast of 1.33 dollars per share.

For the 2008 fourth quarter, Goldman posted a net loss of 2.12 billion dollars.

In a separate statement, the bank announced it would put five billion dollars in common stock on the market.

Qantas slashes jobs as crisis hurts


Qantas slashes jobs as crisis hurts
14-04-2009

Australia's international airline, Qantas, has issued a profit warning, and made sweeping cuts to both staff and aircraft numbers as a result of the global financial crisis.

The company downgraded its annual profit forecast by 80-percent and said it would slash as many as 1,750 jobs.

It'll also defer multi-billion dollar orders for 16 jetliners and put another ten up for sale.

The announcement saw Qantas shares plunge by almost 10-percent when trading resumed today.

Singapore's currency devalued


Singapore's currency devalued
14-04-2009

Singapore's central bank has devalued its currency to counter a record economic slump. The city's Monetary Authority says it has "re-centered" the secret trading range for the local currency. Economists say the actual devaluation of the Singapore dollar might be as much as two percent. Singapore's economy contracted a record 11.5 percent in the first quarter of this year. The government expects the economy to shrink by between 6 and 9 percent in the whole of 2009.

Wall St drops after retail sales decline


Wall St drops after retail sales decline
15-04-2009

Wall Street investors moved out of US stocks and into relatively safer assets such as Treasuries and the dollar overnight after an unexpected drop in US retail sales dampened hopes that the world's largest economy could be stabilizing.

The Dow Jones industrial average closed off 137 points, or 1.71 percent, at 7,920, while the Standard & Poor's 500 Index declined 17 points, or 2.01 percent, to 841. The Nasdaq Composite Index fell 27 points, or 1.67 percent, to 1,625.

Obama sees glimmer of hope in economy


Obama sees glimmer of hope in economy
15-04-2009

President Obama has said the American economy is seeing the first glimmers of hope, although there will be a lot of pain before it returns to growth. In a speech to Georgetown University, President Obama said that moves to help the banking industry, the housing and car markets were generating some optimism. But he cautioned that recovery was still some way off and the recession would lead to more job losses.

Bernanke says recession may be easing


Bernanke says recession may be easing
15-04-2009

Federal Reserve Chairman Ben Bernanke has said there have been "tentative signs" that the recession may be easing. But he also warned that any hope for a lasting recovery hinges on the government's success in stabilizing shaky financial markets and getting credit to flow more freely again. Specifically, the Fed chief mentioned improvements in recent data on home and auto sales, home building and consumer spending as flickering signs of encouragement.

Sunday, April 12, 2009

US budget deficit nears US$1 trillion


US budget deficit nears US$1 trillion
12-04-2009

The US budget deficit accelerated in March.

The deficit of US$192.2 billion was higher than the $160 billion expected by most analysts.

The deficit also hit a record of nearly $1 trillion in the first half of the current fiscal year, as the government moved to bail out troubled institutions.

Japan's record US$150b stimulus package


Japan's record US$150b stimulus package
11-04-2009

Japan has formally unveiled a record 150 billion US dollar stimulus package - as it seeks to revive its flagging economy.

Prime Minister, Taro Aso, said the plan - worth about 3% of its gross domestic product - aimed to protect livelihoods and to foster future growth.

The package includes measures to boost fuel-efficient vehicles and consumer electronics.

Japan's economy has been battered by a collapse in exports and is facing its deepest recession since World War II.

Japan's ruling coalition plans to put the stimulus package before parliament by the end of the month.

Pay cuts for corporate high-flyers


Pay cuts for corporate high-flyers
11-04-2009

China has ordered pay cuts for executives at state-owned banks and other finance firms as public anger grows over their high salaries during the global economic crisis.

Last year's pre-tax income for top executives, including salaries, bonuses and benefits, must not exceed 90 percent of their earnings in 2007, the Ministry of Finance said in a statement on its website.

It added the cap would be 80 percent for executives at financial companies whose operating profits fell last year.

The ministry said salaries and bonuses in the financial industry had been growing too quickly over recent years.

Obama sees economic 'glimmers of hope'


Obama sees economic 'glimmers of hope'
11-04-2009

President Barack Obama says he sees "glimmers of hope" that the US economy may be breaking free of recession.

But he warned that a lot of work was needed to nurse it back to health. He spoke after talks with top officials steering the recovery effort.

The talks came amid some optimism about the US economy, tempered by historically high unemployment and media reports that troubled US automaker, General Motors, may find bankruptcy to be the only path out of its crisis.

HK 'testing' yuan settlement system


HK 'testing' yuan settlement system
11-04-2009

The Undersecretary for Financial Services and the Treasury, Julia Leung, says Hong Kong is testing the yuan settlement system as part of preparations for the renminbi clearing scheme.

This follows the State Council's recent announcement that Shanghai and four Guangdong cities will pilot the yuan trade settlement programme, which will allow overseas firms to complete transactions in yuan.

Hong Kong hopes the scheme will soon expand to cover the territory. Ms Leung said the government and the Monetary Authority are making the necessary preparations to benefit from the scheme's anticipated expansion.

China industry output up in March


China industry output up in March
12-04-2009

Premier Wen Jiabao says China's annual industrial output growth accelerated to 8.3 percent in March, picking up from a record low of 3.8 percent in the first two months of the year.

Economists polled by Reuters had expected 6.0 percent annual growth in industrial production in March.

Mr Wen said that annual industrial production growth for the entire first quarter exceeded 5 percent.

The statistics agency gave a combined January-February figure for industrial output growth to smooth out distortions caused by the timing of the week-long Lunar New Year holiday, which fell in January this year.

China foreign exchange reserves swell


China foreign exchange reserves swell
12-04-2009

China's central bank says its foreign exchange reserves rose 16 percent year-on-year to US$1.9537 trillion by the end of March.

In March itself, the reserves increased by $41.7 billion, $6.7 billion more than the same period last year.

In a notice on its Web site, the People's Bank of China said the reserves, already the world's largest, increased by $7.7 billion in the first quarter - $146.2 billion less than the same period last year.

That rise was substantially less than the fourth quarter increase of almost $45 billion.

Wen: HK irreplacable as financial centre


Wen: HK irreplacable as financial centre
12-04-2009

Premier Wen Jiabao has described Hong Kong's status as an international financial centre as "irreplaceable".

The premier, who had travelled to Thailand for the ASEAN summit, made the remarks while speaking to the Hong Kong press.

Premier Wen acknowledged during the 30-minute session that Hong Kong's status was facing competition, and would deteriorate if the city didn't improve.

But he said Hong Kong's regional advantage, the financial sector's history and comprehensive legal framework had made its status as an international financial centre "irreplaceable".

The Premier's remarks came after the State Council recently approved a plan to develop Shanghai into an international financial centre by 2020.

Premier Wen stressed that it was not the time to decide which city would be the financial hub, but more a question of which could maintain stable development within the existing economic environment.

He also touched on the renminbi trade settlement pilot scheme recently announced by the State Council.

Premier Wen said it would benefit Hong Kong, as the scheme would promote trade and stimulate financial activities here.

He said it would solidify Hong Kong's status as an international financial centre.

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