KILL THE COMPETITION
Welcome to today's round-up of business news from The Times: what we're saying, what they're saying, from Michael Beh
Thursday, December 11, 0730 GMT
Top stories
The Times: Channel 4 could be merged with the profitable BBC Worldwide to prevent the public broadcaster going bankrupt.
http://tinyurl.com/5vok2t
The Times: The Government increased pressure on the banks to lend money as the pound closed in on parity with the euro.
http://tinyurl.com/5wbm27
Reuters: The US House of Representatives approved a $14 billion (£9.4 billion) bailout for the nation's carmakers, but it faces opposition in the Senate.
http://tinyurl.com/63q9u5
Comment
Anatole Kaletsky in The Times: Raising energy taxes would plug the hole in the budget, keep oil prices low and spur investment in alternative energy.
http://tinyurl.com/63tlso
Damian Reece in the Daily Telegraph: Rio Tinto has a most august board to lead it to safety, but safety is a long way off.
http://tinyurl.com/5ov34c
Jeremy Warner in The Independent: The City will emerge from the banking crisis shrunken, repentant, more risk averse and less well paid, but also unbowed.
http://tinyurl.com/5jgo3c
Upside
The Times: Corus, the steelmaker seeking state support, is in talks with unions about a temporary 10 per cent pay cut for its 25,000 UK employees.
http://tinyurl.com/56h3uz
Financial Times: Verizon Wireless, the US wireless telecoms provider, secured a $17 billion (£11.4 billion) syndicated loan, the largest in the US this year.
http://tinyurl.com/57e8pk
Reuters: In a boost for arms makers, the Pentagon approved the sale to Iraq of weapons valued at up to $6 billion (£4 billion).
Downside
The Times: Rio Tinto, the Anglo-Australian mining giant, will axe 14,000 jobs in a bid to reduce its $39 billion (£26.2 billion) debt mountain.
http://tinyurl.com/5ffz2o
New York Times: Russia volunteered to work with OPEC to cut global oil production in a bid to push prices higher.
http://tinyurl.com/6r95p7
The Times: Woolworths begins a huge closing down sale across its 813 stores after its administrator said it had not found a buyer for the retailer.
http://tinyurl.com/5qypz4
Mergers and shakers
The Times: David Blanchflower, the member of the Bank of England's rate-setting committee who led the push for lower interest rates, will step down.
http://tinyurl.com/5b3fsh
Daily Telegraph: Reed Elsevier, the business-to-business giant, has taken its magazines arm off the market, where it had been since February.
http://tinyurl.com/6838pt
The Times: Laing O'Rourke, the construction giant, could be shut down by wealthy Irishman John Magnier over a €3.5 million (£3 million, $4.5 million) court decision.
http://tinyurl.com/56gtda
Around Asia
The Times: China's leaders, anxious about the impact of the global downturn on living standards, have pledged to lower taxes and increase public spending.
http://tinyurl.com/6qynh6
Financial Times: The Bank of Korea cut interest rates by 100 basis points to a record low of 3 per cent.
http://tinyurl.com/57lrtm
The Times: Despite the turmoil they are experiencing, the Japanese are refusing to drown their sorrows in beer; and that, economists say, is a terrible sign.
http://tinyurl.com/6mp6qq
Look ahead
The Times: British Gas, the country's biggest energy supplier, ruled out price cuts until the spring, despite falling wholesale prices and government pressure.
http://tinyurl.com/5dmynf
Reuters: Morgan Stanley is expected next week to announce its second quarterly loss in the past year as the bank is hit by plunging revenues and asset values.
http://tinyurl.com/69ds7g
The Times: The Government is considering taxing savings in tax havens such as Guernsey and the Isle of Man to fund a deposit protection scheme.
http://tinyurl.com/6hkk2e
MARKETS
FTSE 100 4,367.28 down 0.3% (Wednesday close)
Dow 8,761.42 up 0.8% (close)
S&P 500 899.24 up 1.2% (close)
Nasdaq 1,565.48 up 1.2% (close)
Nikkei 8,591.27 down 0.8% (latest)
Hang Seng 15,400.36 down 1.1% (latest)
Currencies
Sterling $1.4870/1.1395 euros (latest)
Euro $1.3050 (latest)
Commodities
Brent crude $42.55 up 15 cents (latest)
West Texas crude $43.72 up 20 cents (latest)
Gold $803.80 down $5.00 (latest)
New York
Reuters: US stocks rose in a choppy session on Wednesday. Oil giant Exxon Mobil rose 2.4 per cent and rival Chevron rose 3.8 per cent on higher oil prices. Uncertainty over a government bailout for carmakers saw General Motors fall 2.1 per cent and Ford rise 0.6 per cent. Yahoo! rose 9.9 per cent after a major shareholder pushed for a deal with Microsoft. Eastman Kodak, the photographic company, fell 8.5 per cent and Electronic Arts, the video game maker, fell 12.1 per cent after each issued a profit warning. American Express fell 7.4 per cent after analysts said it would be hit by loan losses.
http://tinyurl.com/6ammjw
Asia
Bloomberg: Asian stocks fell in morning trade for the first time this week on concerns Congress will reject the US auto bailout. Toyota, which makes more than a third of its sales in North America, fell 1.7 per cent and Hyundai fell 2 per cent. BlueScope Steel, Australia's largest steelmaker, fell 23 per cent after it sold stock at a discount. KB Financial Group rose 3.4 per cent in Seoul after the central bank cut interest rates. Mining giant Rio Tinto rose 6 per cent after announcing it would axe 14,000 jobs. Japan Tobacco rose 5.2 per cent on reports cigarette taxes may not increase. The MSCI Asia Pacific Index fell 0.2 per cent to 86.41 in morning trade.
http://tinyurl.com/5jlnlm
Michael Beh
michaelwbeh@gmail.com
London
Christmas cheer was in short supply among retailers yesterday, as dealers sold out after Morgan Stanley said that the festive season was shaping up to be the worst in many years. The American investment bank said that shops were going into the vital selling period with too much stock, having placed their Christmas orders before consumer confidence dropped off a cliff. Consequently, it said, profitability would come under significant pressure from both lower sales and deeper discounting. It singled out Marks & Spencer, down 5 per cent, and Kesa Electricals, down 6.4 per cent, as the most likely to disappoint. Overall, the FTSE 100 shed 13.98 points to close at 4,367.28, with losses for retailers offset by gains for miners. Rio Tinto soared 20 per cent after revealing plans to eliminate 14,000 jobs as part of a cost cutting programme.
Peter Stiff
peter.stiff@thetimes.co.uk
AGENDA
INTERIMS
Accident Exchange Group
Consort Medical
HMV
Imagination Technologies
International Greetings
Mulberry Group
FINALS
JP Morgan Indian IT
The Local Shopping REIT
Pursuit Dynamics
Renovo
RWS Holdings
Titon Holdings
Widney
OTHER RESULTS
Premier Farnell (Q3)
TRADING STATEMENTS
Bunzl
AGMs
Fidelity Special Values
Mouchel Group
Schroder Income Growth Fund
EGMs
Private Equity Investor
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