| CATEGORY: PRESS ROUND-UP SHORT SECTOR: MINING |
Wednesday newspaper round-up: Northern Rock, BHP Billiton, Greece |
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Wed 10 Feb 2010
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LONDON (SHARECAST) - Northern Rock is preparing to remove the blanket guarantee on its deposits in a key move that will help to prepare for the sale of the nationalised bank.
An announcement about the lifting of the 100% guarantee — introduced by the Chancellor in an attempt to stop the run on Northern Rock in September 2007 — is expected within the next few weeks. The final decision will be made by the Treasury, Northern Rock’s owner, the Times reports.
BHP Billiton signalled caution over a sustained global recovery and held off from a share buyback after reporting its weakest first-half profit in four years. Its July to December profit beat market forecasts by 11 per cent, and the company was able to step up its dividend slightly, but it dashed hopes for a near-term share buyback, the Times reports.
Angela Merkel tried to calm fevered speculation in financial markets yesterday that Germany was preparing to lead a bail-out of Greece amid a split in the EU on how to handle its most ailing member. The German Chancellor denied reports that her Finance Minister was conducting secret talks with Jean-Claude Trichet, head of the European Central Bank, and with other capitals on an EU rescue fund for Athens, the Times reports.
The new President of the European Council, Herman Van Rompuy, is using the financial crisis sweeping the eurozone to launch an audacious grab for power over national budgets, leaked documents reveal. The Independent has seen a secret annexe to the letter being sent by Mr Van Rompuy to European Union heads of government inviting them to the summit to be held tomorrow in Brussels.
The planned overhaul of US financial rules prompted Standard & Poor’s to warn on Tuesday it might downgrade the credit ratings of Citigroup and Bank of America on concerns that the shake-up would make it less likely that the banks would be bailed out by US taxpayers if they ran into trouble again. The move came in spite of S&P admitting that Citi and BofA, two of the world’s largest lenders, had bolstered their balance sheets with fresh capital and improved performance in recent months, the FT reports.
British Airways has approached the staff it released last year to entice them back on temporary contracts as strike cover if cabin crew vote for industrial action. The Times has learnt that former staff have been offered six-month contracts worth about £1,000 a month plus £2.40 an hour flying allowance. BA has told these former cabin crew that retraining would take a week and courses start from 22 February.
Toyota could be heading for a fourth safety crisis after an American federal agency said that it was investigating complaints about steering on the Corolla model in the United States. The inquiry by the National Highway Traffic Safety Administration followed hard on yesterday’s recall by Toyota of 437,000 Prius and other hybrid vehicles. The agency said that it had received complaints from drivers reporting difficulties with steering on 2009 and 2010 Corollas, the Times reports.
Senior business leaders of firms operating in China have complained in interviews with The Daily Telegraph that they are operating in the worst conditions they had seen for decades. Faced with regulations that are often impossible to meet and a climate of overwhelming protectionism, many said they are now openly considering whether to leave the world's biggest market.
Roger Carr, the outgoing chairman of Cadbury, called last night for action to curb the influence of hedge funds during hostile takeover bids. He believes that the funds, which amassed a 30% stake in Cadbury as it was fighting a bid from Kraft, effectively handed the company over to the American food group, the Times reports.
Vauxhall is cutting more than 500 British jobs as part of a massive restructuring that will slash 8,300 staff from the group's European workforce. The strategy announced yesterday by GM Europe (GME) chief executive Nick Reilly aims to get the struggling firm to break even by 2011 and in profit by 2012. But to do so it needs to cut 20 per cent of its capacity across Europe, the Independent reports.
Fidelity has announced it plans to raise £630m for Anthony Bolton’s new China Special Situations investment trust. If it succeeds in attracting the full amount it is seeking this would make it one of the biggest investment trust launches of recent years. Fidelity will raise the money through a public offer in the UK, along with some overseas placings, the FT reports.
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