 | May 6, 2010 |
Kill the Competition: Prudential delay ... Internet rules ... Euro plungeTop storiesThe Times: The $21 billion (£14 billion) rights issue by Prudential, the insurer, was abandoned because of regulatory concerns. http://tinyurl.com/2c2dzna Wall Street Journal: US regulators will propose new regulations for internet providers under decades-old rules designed for traditional phone networks. http://tinyurl.com/2ab73ey The Times: The European Commission lashed out at speculators after the euro plunged to its lowest level for 14 months and stock markets suffered another battering. http://tinyurl.com/287sd4z Comment David Wighton in The Times: This was no mere stumble for Prudential, more like the principal ballerina falling into the orchestra pit. http://tinyurl.com/346eh8s Edmund Conway in The Daily Telegraph: The numbers show that, as far as the IMF is concerned, Europe’s straggling southern states really are too big to save. http://tinyurl.com/32j3588 David Prosser in The Independent: The UK will borrow more than any other EU nation this year, but we start with a little more headroom to sort out public finances. http://tinyurl.com/24jhpgt Upside The Times: Time Warner, the large media group, beat analysts’ expectations after reporting a near 10 per cent rise in net profits for the quarter. http://tinyurl.com/2wzp9xq Wall Street Journal: US Senators overwhelmingly approved a plan to give the US government broad new powers to break up failing financial companies. http://tinyurl.com/34ro2kx The Independent: Greater demand for luxury cars and a doubling of sales in China helped BMW, the German car-maker, to return to profit in the first quarter. http://tinyurl.com/2axzezz Downside The Times: Bear Stearns was a "big fat goose" that was torn apart by hedge fund wolves, Jimmy Cayne, the bank’s former boss, told a US government hearing. http://tinyurl.com/2ck4yct The Daily Telegraph: UK regulators issued a safety warning five years ago over a North Sea oil rig operated by Transocean, the operator of the rig involved in the Gulf of Mexico disaster. http://tinyurl.com/38t9nau The Times: Pay freezes and the rising cost of living mean that almost a third of UK workers are enduring reduced income. http://tinyurl.com/2co5kzv Mergers and shakers The Times: Ian Dyson abruptly quit as finance director of retailer Marks & Spencer to become chief executive of Punch Taverns, Britain’s largest pub group. http://tinyurl.com/2doqp4z The Times: Shareholders have staged a revolt over executive pay at Xstrata, the Anglo-Swiss miner, for the second year running. http://tinyurl.com/2djkb78 The Times: Three UK bankers have been unable to leave Bahrain for ten months after being placed under investigation in relation to the collapse of Awal Bank, a Saudi bank. http://tinyurl.com/2w9wade Around Asia Wall Street Journal: National Australia Bank, the Australian lender, recorded a 22 per cent fall in its first-half net profit. http://tinyurl.com/36jedz7 Bloomberg: Australian retail sales rose in March at less than half the estimated pace, a sign the central bank’s interest-rate increases are cooling domestic demand. http://tinyurl.com/36v5uqb Wall Street Journal: Sri Mulyani Indrawati, Indonesia's respected finance minister, plans to step down to take a World Bank post. http://tinyurl.com/2w7fq8m Look ahead The Independent: The European Commission's latest forecast shows Britain is hurtling towards the worst budget deficit in the European Union this year. http://tinyurl.com/3abvqvw The Times: Macmillan is banned from taking up any contracts financed by the World Bank for six years after the British publisher admitted paying bribes. http://tinyurl.com/3a2nwy9 The Independent: The UK Government is likely to receive about £10 billion ($15 billion) extra in income tax during this financial year. http://tinyurl.com/22svc6v MARKETS FTSE 100 5,341.93 down 1.3% (Wednesday close) Dow 10,868.12 down 0.5% (close) S&P 500 1,165.87 down 0.7% (close) Nasdaq 2,402.29 down 0.9% (close) Nikkei 10,709.15 down 3.2% (latest) Hang Seng 20,185.76 down 0.7% (latest) Currencies Sterling $1.5125/1.1781 euros (latest) Euro $1.2839 (latest) Commodities Brent crude $82.71 up 10 cents (latest) West Texas crude $80.18 up 21 cents (latest) Gold $1174.70 down 30 cents (latest) New York Reuters: US stocks sagged as more signs emerged that the fallout from the Greek debt crisis could spread to bigger European economies. Resource and industrial stocks, sensitive to the outlook of global economic growth, weighed on the market. Energy shares were also pressured. Energy giant Chevron fell 0.7 per cent on lower oil prices. Big-cap consumer staples were among the winners on the Dow. Retailer Wal-Mart Stores rose 1.4 per cent and softdrink maker Coca-Cola rose 0.9 per cent. Trading volume was among the highest this year. http://tinyurl.com/375ks5c Asia Bloomberg: Asian stocks slumped in early trade on concern the Greek deficit crisis will spread through Europe. Canon, a Japanese camera maker that counts Europe as its biggest market, fell 3.4 per cent. Toyota, the world’s biggest carmaker, fell 2.6 per cent as the yen strengthened against the euro. Woodside Petroleum, Australia’s second-largest oil and gas producer, fell 1.3 per cent on lower commodity prices. Korea Zinc, the world’s second-biggest zinc refiner, fell 6 per cent in Seoul. The MSCI Asia Pacific Index fell 1.6 per cent to 120.76 in early trade. http://tinyurl.com/22sv638 Michael Beh michaelwbeh@gmail.com |
