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
Tuesday, December 15, 0730 GMT
Top stories
The Times: Almost a million passengers to face travel chaos over Christmas after British Airways cabin crew voted for a 12-day strike from December 22.
The Times: The merger between British Airways and Iberia under threat because the hole in BA's two main pension funds ballooned to £3.7 billion ($6 billion).
The Times: Abu Dhabi's rescue of neighbour Dubai with a $10 billion (£6.1 billion) bailout helped boost share prices around the world.
Comment
David Wighton in The Times: Those who said that the richer, more staid Abu Dhabi would make Dubai sweat before bailing it out have been proved right.
Damian Reece in Daily Telegraph: While Copenhagen talks, Exxon bets $41 billion on low-carbon gas.
James Moore in The Independent: It looks like the bankers in Cadbury's corner are set to make some healthy success fees.
Upside
The Times: New instructions rose for the sixth straight month in November as higher house prices made sellers feel more confident.
New York Times: Wells Fargo to repay the $25 billion it received in the Government's banking bailout; Citigroup agreed with regulators on an exit from the program.
The Times: Whitbread, Britain's largest hotel and restaurant group, said full-year profits would beat market expectations after sales turned positive in the past three months.
Downside
The Times: A third hopeful, Great-West Retirement Services, quit the race to run the Government's flagship pension scheme, leaving Tata as the only group interested.
The Independent: The introduction of next generation mobile phones into the UK hit a hitch with the revelation they may stop televisions working.
New York Times: Joblessness wreaked financial and emotional havoc on the lives of many of those out of work, according to a poll of unemployed adults.
Mergers and shakers
The Times: Cadbury, the British confectioner, bolstered its defence against the Kraft bid with a robust trading update and optimistic targets for growth.
The Times: Exxon Mobil's purchase of XTO, a natural gas producer, in an all-share agreement valued at $31 billion (£19 billion), sparked speculation of more deals in the sector.
The Times: Jean-Marc Huet quits Bristol-Myers Squibb as finance chief and is expected to replace James Lawrence at Unilever, the maker of Dove.
Around Asia
New York Times: Toyota planned a widespread release of its plug-in hybrid car in 2011 as it scrambled for an upper hand for next-generation "green" technology.
Financial Times: Chinese stock exchanges raised double the amount of money secured by initial public offerings across the US in 2009.
Financial Times; US trade authorities protested against Japan's cash for clunkers vehicle scrappage scheme, saying it discriminated against imported cars.
Look ahead
The Times: New Government move to ensure City house of Rothschild and other banks with non-standard year-ends do not slip through banker bonus tax net.
The Times: City bankers expect a mini-boom in mergers and acquisitions next year with dozens of companies to be put up for sale instead of flotations.
The Times: Ten Alps, Bob Geldof's production company, to launch Accountancy TV, an online channel dedicated to bean counters, in the spring.
MARKETS
FTSE 100 5,315.34 up 1% (day close)
Dow 10,501.05 up 0.3% (close)
S&P 500 1,114.11 up 0.7% (close)
Nasdaq 2,212.10 up 1% (close)
Nikkei 10,087.18 down 0.2% (latest)
Hang Seng 21,896.91 down 0.9% (latest)
Currencies
Sterling $1.6306/1.1132 euros (latest)
Euro $1.4647 (latest)
Commodities
Brent crude $71.98 up 9 cents (latest)
West Texas crude $69.83 up 32 cents (latest)
Gold $1128.60 up $4.80 (latest)
New York
Reuters: US stocks closed at 14-month highs on Monday as Abu Dhabi's $10 billion in aid to help Dubai avoid default eased concerns and a takeover deal by Exxon Mobil for XTO raised optimism about mergers and acquisitions activity. Citigroup's plan to repay the U.S. government about $20 billion in bailout funds also helped buttress the buoyant mood. Citi slumped 6.3 per cent while XTO surged 15.4 per cent. In contrast, Exxon Mobil shed 4.3 per cent and ranked as the top drag on the Dow. Sun Microsystems jumped 11 per cent on Nasdaq after European Union regulators signalled they could clear Oracle's $7 billion takeover of Sun after Oracle promised measures to ease competition concerns. Visa rose 4.2 per cent after ratings agency Standard & Poor's said the credit card company would replace telecommunications equipment maker Ciena in the S&P 500.
Asia
Bloomberg: Asian mining stocks rose in morning trade after copper and platinum prices climbed. Shipping companies paced declines among Japanese equities after cargo rates fell. Platinum Australia, which owns mines in South Africa and Australia, surged 4.6 per cent in Sydney. BHP Billiton, the world's biggest mining company, climbed 1 per cent as JPMorgan Chase upgraded the stock on higher commodity- price forecasts. Mitsui O.S.K. Lines, Japan's No. 2 shipping line, fell 1.3 per cent after the Baltic Dry Index slumped for a sixth day. The MSCI Asia Pacific Index was little changed at 120.45 in morning trade.
Myles McIvor
London
Gartmore's life as a listed company got off to a lacklustre start yesterday with the fund manager's shares trading below their issue price on its first day of dealings. Shares in the group fell 1 per cent to 217, below its IPO price of 220p, which had already been marked down last week from its initial range of 250p to 330p as a result of muted interest. Market speculation suggested that few major City institutions had backed the deal, which values the group at about £676 million, believing the offer price was still too expensive. Overall, the FTSE 100 gained more than 1 per cent, up 53.77 points to 5,315.34, after Abu Dhabi agreed to rescue Dubai with a $10 billion (£6 billion) bailout package. The London Stock Exchange was the biggest blue-chip riser, climbing 10 per cent. The stock has underperformed of late amid concerns that Borse Dubai, which holds a near 21 per cent stake, may have to sell its holding. Banks thought to have big exposure to the Emirate also rallied.
Peter Stiff
