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
Wednesday, September 2, 0730 GMT
Top stories
The Times: EBay sold a 65 per cent stake in Skype to a private investment group; the deal values the internet telephony business at $2.75 billion (£1.7 billion).
New York Times: US car sales rose in August, driven by the federal government's "cash for clunkers" program, but fell off sharply when the scheme ended.
The Times: British manufacturing contracted as activity in the US, China and France expanded, heightening fears that the UK recovery was falling behind.
Comment
David Wighton in The Times: Perhaps the defence industry should ensure its technologies are applied in the civil sector if it is seeking popular support.
Tom Stevenson in the Daily Telegraph: September and October are traditionally the two worst months of the year for stock markets.
James Moore in The Independent: It is high time somebody told the high priests of banking that it is time to cool it on executive pay.
Upside
The Times: The amount of consumer debt in the economy fell in July for the first time since records began in 1993 and corporate debt fell the most since 1997.
Wall Street Journal: Iberdrola, the Spanish wind-power giant, was the big winner in the first round of the US government's renewable energy subsidy.
The Times: Bank of America may pay off $20 billion (£12.4 billion) of its $45 billion government loan, and could avoid executive pay scrutiny by doing so.
Downside
The Times: The European Competition Commissioner will investigate a €450 million (£396 million, $640 million) subsidy for France Télévisions, the French public broadcaster.
Financial Times: US financial shares suffered their biggest fall since late June amid concerns over the profitability of banks during the economic downturn.
The Times: SkyEurope, a low-cost Slovakian airline, collapsed and cancelled its flights from Manchester and Luton airports, leaving thousands stranded.
Mergers and shakers
The Times: RHJ Holdings, the Belgian industrial conglomerate, increased its offer for General Motors' European arm by €25 million (£22 million, $35.5 million)
The Independent: Merger and acquisition activity fell to its lowest level in 40 years as a result of the recession and a shortage of credit.
Daily Telegraph: Steve Jobs, Jeff Bezos, Warren Buffett, Eric Schmidt, Larry Page and Sergey Brin head Vanity Fair magazine's list of information age powerbrokers.
Around Asia
Wall Street Journal: Power producer NHPC made a muted debut on India's stock market, damping the prospects of forthcoming public issues.
Daily Telegraph: Japan's tax revenues fell 27 per cent in the past, and the incoming Democrats may have to borrow heavily to fund their welfare boost.
Reuters: Chinese shoppers are flocking to the luxury stores of London's West End, outspending Arab royalty and replacing Russia's departing super-rich.
Look ahead
Financial Times: UK insurers fear they will need to lift premiums and raise £50 billion ($80 billion) to meet proposed European rules scheduled for 2012.
New York Times: Bernard L. Madoff's beach house will be sold to help raise funds for investors defrauded in one of the biggest Ponzi schemes in history.
Financial Times: China says cutting its greenhouse gas emissions will cost $440 billion (£270 billion) a year within 20 years, and developed economies must bear the brunt.
MARKETS
FTSE 100 4,819.70 down 1.8% (Tuesday close)
Dow 9,310.60 down 2% (close)
S&P 500 998.04 down 2.2% (close)
Nasdaq 1,968.89 down 2% (close)
Nikkei 10,253.18 down 2.6% (latest)
Hang Seng 19,581.53 down 1.5% (latest)
Currencies
Sterling $1.6154/1.1367 euros (latest)
Euro $1.4212 (latest)
Commodities
Brent crude $68.30 up 57 cents (latest)
West Texas crude $68.49 up 44 cents (latest)
Gold $955.40 down $1.10 (latest)
New York
Reuters: US stocks fell for a third straight day, spooked by uncertainty over the health of financials and concerns that the rally since March may have run ahead of economic reality. Among financial stocks, JPMorgan Chase fell 4.1 per cent and Citigroup fell 9.2 per cent. Car maker Ford Motor fell 4.7 per cent despite a 17 per cent rise in its monthly sales. Internet auction house eBay fell 2.1 per cent on reports the company will sell a majority stake in its online phone unit Skype.
Asia
Bloomberg: Asian stocks fell in morning trade as commodity prices declined. Seven & I, Japan's largest retailer, fell 3.8 per cent on a lower profit forecast. Aeon, Japan's No. 2 retailer, fell 5.5 per cent and Uny, which runs department stores, fell 5.6 per cent. Maruzen, the bookstore, fell 7.2 per cent on disappointing results. BHP Billiton, the world's largest miner, fell 2 per cent, rival Rio Tinto fell 2.4 per cent and Inpex, Japan's largest oil explorer, fell 4.1 per cent after oil and copper prices fell. Elpida Memory, Japan's biggest memory-chip maker, fell 17 per cent on plans to sell shares. Oil producer PetroChina and China Petroleum & Chemical, Asia's biggest refiner, rose by more than 1 per cent in Shanghai after China raised fuel prices. Mitsubishi UFJ, Japan's largest publicly traded bank, fell 2.9 per cent and Westpac Banking, Australia's largest bank, fell 2.9 per cent. The MSCI Asia Pacific Index fell 1.6 per cent to 112.10 in morning trade.
Michael Beh
michaelwbeh@gmail.com
