Dubai: Σύντομα τα νέα για 30% σε CPB
Μέχρι το τέλος Ιανουαρίου αναμένεται να έχει ολοκληρωθεί η εξέταση της αίτησης του Dubai Financial Group για αύξηση του ποσοστού του στη Marfin Laiki. Όπως μας αναφέρθηκε αρμοδίως, αν και η Κεντρική Τράπεζα δεν έχει αρχίσει ακόμα την εξέταση της αίτησης, αναμένει πως η σχετική διαδικασία θα τελειώσει μέσα στις επόμενες βδομάδες.
Η αίτηση έγινε μετά την κοινοποίηση της πρόθεσης του DFG να αυξήσει σταδιακά το ποσοστό του στην τράπεζα για να φθάσει μέχρι το 30%. Οι προθέσεις του DFG έγιναν γνωστές στις 31 Οκτωβρίου 2007, στέλνοντας τη μετοχή της τράπεζας στο ψηλότερο σημείο των τελευταίων ετών. Την ίδια μέρα το DFG ανακοίνωσε την αγορά των τίτλων του CEO της τράπεζας, Ανδρέα Βγενόπουλου, στα €12, και την παράλληλη αύξηση του ποσοστού του στο 19,9%.
Η εξέταση της αίτησης θα γίνει με βάση κριτήρια που ορίζει η σχετική ευρωπαϊκή οδηγία για μετόχους που θέλουν να αποκτήσουν πάνω του 10% σε τραπεζικά ιδρύματα (qualifying shareholding). Η οδηγία αποσκοπεί στην εξέταση της καταλληλότητας και ικανότητας των μετόχων σε τράπεζες. Με βάση την οδηγία, οι εποπτικές αρχές εξετάζουν τη φήμη, ευρωστία, ικανότητα διοίκησης χρηματοοικονομικού ιδρύματος και διαφάνεια των εν δυνάμει μετόχων.
STOCKWATCH.COM.CY
Economy | Business | Social | Leaked | Opinions
Friday, January 18, 2008
Ex-Goldman Analyst Gets Time Served for Trade Scheme
Ex-Goldman Analyst Gets Time Served for Trade Scheme
Jan. 18 (Bloomberg) -- A former Goldman Sachs Group Inc. analyst who led a $6.7 million insider trading scheme and then helped prosecutors build criminal cases against his accomplices was sentenced to time served and three years supervised release.
David Pajcin, who agreed to remain in jail after his arrest, is one of six men convicted in the case. With former colleague Eugene Plotkin, he traded on leaks from a Merrill Lynch & Co. analyst, a grand juror and two workers at a factory that printed McGraw-Hill Cos.' Business Week magazine. Pajcin, who was fined $10,000 and forfeited $6.7 million, has been held for 26 months.
``Pajcin came in very early in the process and aided the government in what became a very serious investigation,'' Assistant U.S. Attorney Helen Cantwell told U.S. District Judge Victor Marrero at the sentencing today in Manhattan federal court. Pajcin pleaded guilty in 2006 to conspiracy, lying to securities regulators and obtaining confidential data.
Prosecutors last year stepped up their fight against insider trading. An ex-Morgan Stanley vice president and her husband, a former ING Groep NV analyst, were sentenced to 18 months in prison for trading on confidential news. A former Credit Suisse Group investment banker is now on trial in Manhattan federal court for leaking stock tips.
Almost Five Years
Plotkin was previously sentenced to almost five years in prison. Former Merrill mergers analyst Stanislav Shpigelman is serving a three-year term.
``I would like to apologize to the court, to the U.S. government and to my family for the crimes I committed,'' Pajcin said. Pajcin, who worked as an analyst in the fixed income, currency and commodities unit at New York-based Goldman, the largest U.S. securities firm by market value, received a reduced sentence because of his cooperation.
The ring operated from mid-2004 to mid-2005, prosecutors said. The scheme had three parts, according to court papers.
Pajcin, a resident of Clifton, New Jersey, and Plotkin traded on tips from Shpigelman, who they recruited in a 2004 meeting at a lower Manhattan sauna. A New Jersey mailman also leaked them news from a grand jury on which he was serving, and two workers at a Wisconsin printing plant told them the names of companies about to appear in Business Week magazine.
The mailman and factory workers have also pleaded guilty.
According to Plotkin's court filings, Pajcin masterminded the plot with talk of ``how successful stock traders had gained `edges,''' and told Plotkin that ``criminal types'' he knew in Croatia ran a similar Business Week scheme. It was Pajcin's friend who was on the New Jersey grand jury and Pajcin who got Shpigelman's leaks, Plotkin claimed.
Planned Bid
In 2005, Shpigelman told Pajcin about Adidas AG's planned bid for Reebok International Ltd., generating $6.1 million in profits for Pajcin and others, including his aunt, a seamstress in Croatia, and the father of his ex-girlfriend, Plotkin said.
Pajcin began cooperating after authorities learned of the scheme and ``is the principal source of the government's information,'' Plotkin said in court papers.
His lawyer, Jesse Siegel, asked for leniency ``in view of the very extensive assistance he provided to the government,'' adding that he would also never be able to work in finance again. Pajcin will likely be released today, Siegel said.
The case is U.S. v.Pajcin, 05-CR-1284, U.S. District Court, Southern District of New York (Manhattan).
BLOOMBERG
Jan. 18 (Bloomberg) -- A former Goldman Sachs Group Inc. analyst who led a $6.7 million insider trading scheme and then helped prosecutors build criminal cases against his accomplices was sentenced to time served and three years supervised release.
David Pajcin, who agreed to remain in jail after his arrest, is one of six men convicted in the case. With former colleague Eugene Plotkin, he traded on leaks from a Merrill Lynch & Co. analyst, a grand juror and two workers at a factory that printed McGraw-Hill Cos.' Business Week magazine. Pajcin, who was fined $10,000 and forfeited $6.7 million, has been held for 26 months.
``Pajcin came in very early in the process and aided the government in what became a very serious investigation,'' Assistant U.S. Attorney Helen Cantwell told U.S. District Judge Victor Marrero at the sentencing today in Manhattan federal court. Pajcin pleaded guilty in 2006 to conspiracy, lying to securities regulators and obtaining confidential data.
Prosecutors last year stepped up their fight against insider trading. An ex-Morgan Stanley vice president and her husband, a former ING Groep NV analyst, were sentenced to 18 months in prison for trading on confidential news. A former Credit Suisse Group investment banker is now on trial in Manhattan federal court for leaking stock tips.
Almost Five Years
Plotkin was previously sentenced to almost five years in prison. Former Merrill mergers analyst Stanislav Shpigelman is serving a three-year term.
``I would like to apologize to the court, to the U.S. government and to my family for the crimes I committed,'' Pajcin said. Pajcin, who worked as an analyst in the fixed income, currency and commodities unit at New York-based Goldman, the largest U.S. securities firm by market value, received a reduced sentence because of his cooperation.
The ring operated from mid-2004 to mid-2005, prosecutors said. The scheme had three parts, according to court papers.
Pajcin, a resident of Clifton, New Jersey, and Plotkin traded on tips from Shpigelman, who they recruited in a 2004 meeting at a lower Manhattan sauna. A New Jersey mailman also leaked them news from a grand jury on which he was serving, and two workers at a Wisconsin printing plant told them the names of companies about to appear in Business Week magazine.
The mailman and factory workers have also pleaded guilty.
According to Plotkin's court filings, Pajcin masterminded the plot with talk of ``how successful stock traders had gained `edges,''' and told Plotkin that ``criminal types'' he knew in Croatia ran a similar Business Week scheme. It was Pajcin's friend who was on the New Jersey grand jury and Pajcin who got Shpigelman's leaks, Plotkin claimed.
Planned Bid
In 2005, Shpigelman told Pajcin about Adidas AG's planned bid for Reebok International Ltd., generating $6.1 million in profits for Pajcin and others, including his aunt, a seamstress in Croatia, and the father of his ex-girlfriend, Plotkin said.
Pajcin began cooperating after authorities learned of the scheme and ``is the principal source of the government's information,'' Plotkin said in court papers.
His lawyer, Jesse Siegel, asked for leniency ``in view of the very extensive assistance he provided to the government,'' adding that he would also never be able to work in finance again. Pajcin will likely be released today, Siegel said.
The case is U.S. v.Pajcin, 05-CR-1284, U.S. District Court, Southern District of New York (Manhattan).
BLOOMBERG
Bush Calls for $150 Billion Stimulus Plan for Economy
Bush Calls for $150 Billion Stimulus Plan for Economy
Jan. 18 (Bloomberg) -- The Bush administration proposed a growth package of as much as $150 billion to counter escalating risks to an economic expansion now in its seventh year.
``Passing a new growth package is our most pressing economic priority,'' President George W. Bush said at the White House after meeting with his economic advisers.
Treasury Secretary Henry Paulson said the plan would help create about a half-million jobs this year. Bush said Paulson will lead the administration's efforts at crafting a deal with the Democratic-majority Congress.
While the economic fundamentals are strong, ``there is a risk of a downturn,'' Bush said. The plan must include tax incentives for businesses and ``direct and rapid income tax relief for the American people,'' he said.
Bush said the package should total about 1 percent of gross domestic product, which was an annualized $13.97 trillion in the third quarter. Paulson later cited at a press briefing an estimate of $140 billion to $150 billion.
A continued decline in the housing market and the rising cost of oil may cause more harm to the economy and jeopardize job creation, the president said.
The U.S. unemployment rate in December climbed to 5 percent, the highest in two years, from 4.7 percent the previous month. Employment growth in the U.S. was 1.33 million last year, down from 2.26 million jobs a year earlier.
Federal Reserve Chairman Ben S. Bernanke told lawmakers yesterday that a stimulus plan of up to $150 billion would be ``significant'' and not ``window dressing.''
No Specifics
Bush didn't offer specifics on a stimulus plan, saying he wants to reach an agreement with Congress. The administration is considering offering $800 tax rebates for individuals and $1,600 for households, people familiar with the discussions said.
``My advisers and many outside experts expect that our economy will continue to grow over the coming year, but at a slower rate than we have enjoyed for the past few years,'' Bush said.
While the administration has taken steps to help homeowners avert foreclosure and asked Congress to allow the Federal Housing Administration to provide additional relief, more help is needed to bolster the economy, Bush said.
``This growth package must be big enough to make a difference in an economy as large and dynamic as ours, which means it should be about 1 percent of GDP,'' Bush said.
The plan must be temporary and shouldn't include any tax increases, Bush said.
Conferring With Congress
``Yesterday I spoke to members of the congressional leadership from both political parties,'' Bush said. ``I was encouraged by those discussions, and I believe there is enough broad consensus that we can come up with a package that can be approved with bipartisan support.''
The White House and Congress are trying to hammer out an agreement quickly, with some Democrats saying it could come in 30 to 45 days.
White House spokesman Tony Fratto suggested the president may never offer a specific package of stimulus proposals on his own. ``That remains to be seen,'' Fratto said. Bush has appointed Paulson ``to come up with a bipartisan approach,'' said Ed Gillespie, the president's top political adviser.
Bush later today was to visit workers and executives at Wright Manufacturing, Inc., a lawn equipment maker, in nearby Frederick, Maryland, to show the White House is aware that Americans are feeling the pinch of higher gasoline prices and falling home values.
BLOOMBERG
Jan. 18 (Bloomberg) -- The Bush administration proposed a growth package of as much as $150 billion to counter escalating risks to an economic expansion now in its seventh year.
``Passing a new growth package is our most pressing economic priority,'' President George W. Bush said at the White House after meeting with his economic advisers.
Treasury Secretary Henry Paulson said the plan would help create about a half-million jobs this year. Bush said Paulson will lead the administration's efforts at crafting a deal with the Democratic-majority Congress.
While the economic fundamentals are strong, ``there is a risk of a downturn,'' Bush said. The plan must include tax incentives for businesses and ``direct and rapid income tax relief for the American people,'' he said.
Bush said the package should total about 1 percent of gross domestic product, which was an annualized $13.97 trillion in the third quarter. Paulson later cited at a press briefing an estimate of $140 billion to $150 billion.
A continued decline in the housing market and the rising cost of oil may cause more harm to the economy and jeopardize job creation, the president said.
The U.S. unemployment rate in December climbed to 5 percent, the highest in two years, from 4.7 percent the previous month. Employment growth in the U.S. was 1.33 million last year, down from 2.26 million jobs a year earlier.
Federal Reserve Chairman Ben S. Bernanke told lawmakers yesterday that a stimulus plan of up to $150 billion would be ``significant'' and not ``window dressing.''
No Specifics
Bush didn't offer specifics on a stimulus plan, saying he wants to reach an agreement with Congress. The administration is considering offering $800 tax rebates for individuals and $1,600 for households, people familiar with the discussions said.
``My advisers and many outside experts expect that our economy will continue to grow over the coming year, but at a slower rate than we have enjoyed for the past few years,'' Bush said.
While the administration has taken steps to help homeowners avert foreclosure and asked Congress to allow the Federal Housing Administration to provide additional relief, more help is needed to bolster the economy, Bush said.
``This growth package must be big enough to make a difference in an economy as large and dynamic as ours, which means it should be about 1 percent of GDP,'' Bush said.
The plan must be temporary and shouldn't include any tax increases, Bush said.
Conferring With Congress
``Yesterday I spoke to members of the congressional leadership from both political parties,'' Bush said. ``I was encouraged by those discussions, and I believe there is enough broad consensus that we can come up with a package that can be approved with bipartisan support.''
The White House and Congress are trying to hammer out an agreement quickly, with some Democrats saying it could come in 30 to 45 days.
White House spokesman Tony Fratto suggested the president may never offer a specific package of stimulus proposals on his own. ``That remains to be seen,'' Fratto said. Bush has appointed Paulson ``to come up with a bipartisan approach,'' said Ed Gillespie, the president's top political adviser.
Bush later today was to visit workers and executives at Wright Manufacturing, Inc., a lawn equipment maker, in nearby Frederick, Maryland, to show the White House is aware that Americans are feeling the pinch of higher gasoline prices and falling home values.
BLOOMBERG
U.S. Economy: Confidence Increases, Leading Index Declines
U.S. Economy: Confidence Increases, Leading Index Declines
Jan. 18 (Bloomberg) -- Confidence among U.S. consumers rose in January as gasoline prices fell, while a measure of the economy's direction over the next three to six months declined.
The improvement in consumer sentiment is at odds with comments by Federal Reserve Chairman Ben S. Bernanke, who said yesterday that risks to economic growth are ``more pronounced.'' Richmond Fed President Jeffrey Lacker said today that growth is ``very weak'' and may warrant additional interest-rate cuts.
The Reuters/University of Michigan preliminary index of consumer sentiment climbed to 80.5, from December's 75.5 reading that was the lowest since 2005. At the same time, the Conference Board reported its index of leading economic indicators dropped 0.2 percent in December, the third consecutive drop.
``The outlook is still very bleak,'' said Nigel Gault, chief U.S. economist at Global Insight Inc. in Lexington, Massachusetts. He said the final Michigan index for the month ``may not look quite as good.''
The confidence index was forecast to fall to 74.5, according to the median of 65 economists surveyed by Bloomberg News. The monthly figure averaged 86.1 last year, down from an average of 87.6 in 2006 and has weakened in six of the past seven years since peaking at 112 in January 2000.
Stocks extended gains after the University of Michigan report was published, before reversing the advance. Stocks had risen after General Electric Co. said fourth-quarter profit rose 15 percent, buoyed by earnings from international sales.
Gasoline Relationship
Since the start of the fourth quarter, the sentiment index has tended to fluctuate in the opposite direction of gasoline prices, according to data compiled by Bloomberg. The correlation in the period was minus 0.76.
Retail gasoline prices, up about 40 percent from a year ago, have dropped about 20 cents a gallon from a peak in May of $3.21, according to the most recent figures from AAA. Prices dropped 3.4 cents in December.
The improvement in confidence was driven mainly by two groups, the report said. Households making less than $50,000 a year said bigger discounts made this a good time to buy durable goods like televisions and automobiles, while upper-income households cited an improving outlook on the economy. In addition, more people than at any time since 2001 said interest rates will drop.
Consumer Expectations
The sentiment gauge's expectations index, which some economists view as an indicator of future consumer spending, increased to 69.1 from 65.6 in December.
A measure of current conditions, which reflects Americans' perceptions of their financial situation and whether it is a good time to buy big-ticket items like cars, gained to 98.1 from 91.
The Fed may cut the benchmark interest rate by a half percentage point this month to help the economy avoid a recession, according to futures trading.
The housing recession is now in its third year and the job market is slowing. Employers added 18,000 workers in December, the lowest gain since 2004, and the unemployment rate jumped to 5 percent, according to government figures.
Consumers are becoming more careful about spending. California Pizza Kitchen Inc., the owner of the casual-dining chain of the same name, this week said quarterly profit missed the company's forecast and lowered its earnings outlook for 2008.
Discounting
Discounts are helping other companies. Wal-Mart Stores Inc., the world's largest retailer, said its December sales rose 2.4 percent, the most in four months, after it lured shoppers with price cuts on more holiday items.
Combined with gross domestic product, the Conference Board's leading indicators are used by the seven-member committee within the National Bureau of Economic Research in Cambridge, Massachusetts, to determine when economic downturns start and end.
Pending revisions, last month's rise in the coincident index signals a recession probably didn't start last month.
``The latest data suggest that growth could remain slow, and possibly be a little slower, in the first half of 2008,'' Ken Goldstein, a labor economist at the Conference Board, said in a statement.
Over the last six months, the leading indicators index dropped at an annual pace of 1.6 percent, short of the approximate 4 percent to 4.5 percent drop Conference Board economists say signals recession.
The report bears out forecasts by most economists that the U.S. will be able to skirt recession. The world's largest economy is projected to grow at a 1.1 percent annual rate this quarter and pick up speed in the following three months, according to the median forecast of economists surveyed earlier this month.
BLOOMBERG
Jan. 18 (Bloomberg) -- Confidence among U.S. consumers rose in January as gasoline prices fell, while a measure of the economy's direction over the next three to six months declined.
The improvement in consumer sentiment is at odds with comments by Federal Reserve Chairman Ben S. Bernanke, who said yesterday that risks to economic growth are ``more pronounced.'' Richmond Fed President Jeffrey Lacker said today that growth is ``very weak'' and may warrant additional interest-rate cuts.
The Reuters/University of Michigan preliminary index of consumer sentiment climbed to 80.5, from December's 75.5 reading that was the lowest since 2005. At the same time, the Conference Board reported its index of leading economic indicators dropped 0.2 percent in December, the third consecutive drop.
``The outlook is still very bleak,'' said Nigel Gault, chief U.S. economist at Global Insight Inc. in Lexington, Massachusetts. He said the final Michigan index for the month ``may not look quite as good.''
The confidence index was forecast to fall to 74.5, according to the median of 65 economists surveyed by Bloomberg News. The monthly figure averaged 86.1 last year, down from an average of 87.6 in 2006 and has weakened in six of the past seven years since peaking at 112 in January 2000.
Stocks extended gains after the University of Michigan report was published, before reversing the advance. Stocks had risen after General Electric Co. said fourth-quarter profit rose 15 percent, buoyed by earnings from international sales.
Gasoline Relationship
Since the start of the fourth quarter, the sentiment index has tended to fluctuate in the opposite direction of gasoline prices, according to data compiled by Bloomberg. The correlation in the period was minus 0.76.
Retail gasoline prices, up about 40 percent from a year ago, have dropped about 20 cents a gallon from a peak in May of $3.21, according to the most recent figures from AAA. Prices dropped 3.4 cents in December.
The improvement in confidence was driven mainly by two groups, the report said. Households making less than $50,000 a year said bigger discounts made this a good time to buy durable goods like televisions and automobiles, while upper-income households cited an improving outlook on the economy. In addition, more people than at any time since 2001 said interest rates will drop.
Consumer Expectations
The sentiment gauge's expectations index, which some economists view as an indicator of future consumer spending, increased to 69.1 from 65.6 in December.
A measure of current conditions, which reflects Americans' perceptions of their financial situation and whether it is a good time to buy big-ticket items like cars, gained to 98.1 from 91.
The Fed may cut the benchmark interest rate by a half percentage point this month to help the economy avoid a recession, according to futures trading.
The housing recession is now in its third year and the job market is slowing. Employers added 18,000 workers in December, the lowest gain since 2004, and the unemployment rate jumped to 5 percent, according to government figures.
Consumers are becoming more careful about spending. California Pizza Kitchen Inc., the owner of the casual-dining chain of the same name, this week said quarterly profit missed the company's forecast and lowered its earnings outlook for 2008.
Discounting
Discounts are helping other companies. Wal-Mart Stores Inc., the world's largest retailer, said its December sales rose 2.4 percent, the most in four months, after it lured shoppers with price cuts on more holiday items.
Combined with gross domestic product, the Conference Board's leading indicators are used by the seven-member committee within the National Bureau of Economic Research in Cambridge, Massachusetts, to determine when economic downturns start and end.
Pending revisions, last month's rise in the coincident index signals a recession probably didn't start last month.
``The latest data suggest that growth could remain slow, and possibly be a little slower, in the first half of 2008,'' Ken Goldstein, a labor economist at the Conference Board, said in a statement.
Over the last six months, the leading indicators index dropped at an annual pace of 1.6 percent, short of the approximate 4 percent to 4.5 percent drop Conference Board economists say signals recession.
The report bears out forecasts by most economists that the U.S. will be able to skirt recession. The world's largest economy is projected to grow at a 1.1 percent annual rate this quarter and pick up speed in the following three months, according to the median forecast of economists surveyed earlier this month.
BLOOMBERG
GLOBAL INDEXES
XAK
FTSE/CySE 20
1389.36 ( 0.66%)
ΓΕΝΙΚΟΣ ΔΕΙΚΤΗΣ
4049.14 ( 0.65%)
Όγκος: € 9,300,841
---
FTSE 100 INDEX 5,901.70 -0.70 -0.01%
CAC 40 INDEX 5,092.40 -64.69 -1.25%
DAX INDEX 7,314.17 -99.36 -1.34%
---
US
DOW JONES INDUS. AVG 12,099.30 -59.91 -0.49%
S&P 500 INDEX 1,325.19 -8.06 -0.60%
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FTSE/CySE 20
1389.36 ( 0.66%)
ΓΕΝΙΚΟΣ ΔΕΙΚΤΗΣ
4049.14 ( 0.65%)
Όγκος: € 9,300,841
---
FTSE 100 INDEX 5,901.70 -0.70 -0.01%
CAC 40 INDEX 5,092.40 -64.69 -1.25%
DAX INDEX 7,314.17 -99.36 -1.34%
---
US
DOW JONES INDUS. AVG 12,099.30 -59.91 -0.49%
S&P 500 INDEX 1,325.19 -8.06 -0.60%
NASDAQ COMPOSITE INDEX 2,340.02 -6.88 -0.29%
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U.K. Retail Sales Unexpectedly Fall Most in 11 Months
U.K. Retail Sales Unexpectedly Fall Most in 11 Months
Jan. 18 (Bloomberg) -- U.K. retail sales unexpectedly dropped in December by the most in 11 months as higher borrowing costs and falling house prices curbed consumer spending.
Sales declined 0.4 percent from November, when they rose by the same amount, the Office for National Statistics said today in London. Economists forecast a 0.2 percent increase, the median of 31 estimates in a Bloomberg News survey showed. On the year, sales climbed 2.7 percent, the least since September 2006.
The pound dropped after the report, which showed that an interest-rate cut in December failed to encourage Christmas spending amid the worst housing market slowdown since Britain's last recession in 1992. Kesa Electricals Plc, the owner of Comet electronics stores in Britain, said yesterday that sales growth slowed during the fourth quarter.
``The consumer is feeling the headwinds from the financial and housing sectors,'' Richard McGuire, an economist at Royal Bank of Canada in London, said in a Bloomberg Television interview. ``This will provide added support in favor of a widely expected rate cut in February.''
The pound fell as much as 0.6 percent against the dollar and 0.6 percent against the euro, after the report as investors increased bets on lower rates. The currency traded at $1.9580 and 74.67 pence per euro as of 10:07 a.m. today in London.
The Bank of England reduced its benchmark rate by a quarter point to 5.5 percent in December to help stem the fallout from the U.S. subprime mortgage market collapse, which has pushed up market borrowing costs.
Slowing Growth
A Bloomberg News survey of Jan. 4 showed most economists forecast the rate will fall to 4.75 percent by the end of 2008. The economy grew 0.5 percent in the fourth quarter, the weakest pace in two years, the National Institute of Economic and Social Research estimates.
Sales at non-specialized stores, the category which includes department stores, fell 4.3 percent on the month, the biggest drop since January 2007, the statistics office said. Overall non-food sales dropped 0.9 percent, outweighing a 0.1 percent increase for food retailers.
Jean-Noel Labroue, chief executive officer of Kesa, said yesterday that market conditions were ``difficult, particularly in the U.K.'' Retailers Tesco Plc and Marks & Spencer Plc this month called for interest-rate cuts to help consumers, who have 1.4 trillion pounds ($2.8 trillion) of debt.
Lower Spending
Falling property prices may also discourage shoppers. Real- estate professionals said December was the housing market's worst month since the aftermath of the last recession in 1992, the Royal Institution of Chartered Surveyors said on Jan. 16.
Consumers may still pare spending as banks curb loans and the economy starts to slow. ``While only a minority of households may be credit constrained, they are probably sufficient to depress household spending somewhat,'' Bank of England Deputy Governor John Gieve said yesterday.
Jobs growth was still the strongest in a decade in the quarter through November, and unemployment fell to the lowest since 1975 last month. HMV sold 45 percent more video games during the Christmas season as the overall U.K. market expanded 30 percent in unit terms, the company said yesterday.
Retailers also cut prices to attract shoppers. The implied deflator, which shows annual inflation in shops, was 1.2 percent lower than a year earlier, the biggest drop in three months.
Gieve said yesterday that policy makers face ``difficult judgments'' on interest rates as they weigh risks to growth against the threat of inflation, which exceeded the 2 percent target for the past three months.
BLOOMBERG
Jan. 18 (Bloomberg) -- U.K. retail sales unexpectedly dropped in December by the most in 11 months as higher borrowing costs and falling house prices curbed consumer spending.
Sales declined 0.4 percent from November, when they rose by the same amount, the Office for National Statistics said today in London. Economists forecast a 0.2 percent increase, the median of 31 estimates in a Bloomberg News survey showed. On the year, sales climbed 2.7 percent, the least since September 2006.
The pound dropped after the report, which showed that an interest-rate cut in December failed to encourage Christmas spending amid the worst housing market slowdown since Britain's last recession in 1992. Kesa Electricals Plc, the owner of Comet electronics stores in Britain, said yesterday that sales growth slowed during the fourth quarter.
``The consumer is feeling the headwinds from the financial and housing sectors,'' Richard McGuire, an economist at Royal Bank of Canada in London, said in a Bloomberg Television interview. ``This will provide added support in favor of a widely expected rate cut in February.''
The pound fell as much as 0.6 percent against the dollar and 0.6 percent against the euro, after the report as investors increased bets on lower rates. The currency traded at $1.9580 and 74.67 pence per euro as of 10:07 a.m. today in London.
The Bank of England reduced its benchmark rate by a quarter point to 5.5 percent in December to help stem the fallout from the U.S. subprime mortgage market collapse, which has pushed up market borrowing costs.
Slowing Growth
A Bloomberg News survey of Jan. 4 showed most economists forecast the rate will fall to 4.75 percent by the end of 2008. The economy grew 0.5 percent in the fourth quarter, the weakest pace in two years, the National Institute of Economic and Social Research estimates.
Sales at non-specialized stores, the category which includes department stores, fell 4.3 percent on the month, the biggest drop since January 2007, the statistics office said. Overall non-food sales dropped 0.9 percent, outweighing a 0.1 percent increase for food retailers.
Jean-Noel Labroue, chief executive officer of Kesa, said yesterday that market conditions were ``difficult, particularly in the U.K.'' Retailers Tesco Plc and Marks & Spencer Plc this month called for interest-rate cuts to help consumers, who have 1.4 trillion pounds ($2.8 trillion) of debt.
Lower Spending
Falling property prices may also discourage shoppers. Real- estate professionals said December was the housing market's worst month since the aftermath of the last recession in 1992, the Royal Institution of Chartered Surveyors said on Jan. 16.
Consumers may still pare spending as banks curb loans and the economy starts to slow. ``While only a minority of households may be credit constrained, they are probably sufficient to depress household spending somewhat,'' Bank of England Deputy Governor John Gieve said yesterday.
Jobs growth was still the strongest in a decade in the quarter through November, and unemployment fell to the lowest since 1975 last month. HMV sold 45 percent more video games during the Christmas season as the overall U.K. market expanded 30 percent in unit terms, the company said yesterday.
Retailers also cut prices to attract shoppers. The implied deflator, which shows annual inflation in shops, was 1.2 percent lower than a year earlier, the biggest drop in three months.
Gieve said yesterday that policy makers face ``difficult judgments'' on interest rates as they weigh risks to growth against the threat of inflation, which exceeded the 2 percent target for the past three months.
BLOOMBERG
ΑΝΟΔΙΚΗ ΑΝΤΙΔΡΑΣΗ ΣΤΟ ΛΟΝΔΙΝΟ
ΑΝΟΔΙΚΗ ΑΝΤΙΔΡΑΣΗ ΚΑΤΑΓΡΑΦΕΤΑΙ ΑΥΤΗ ΤΗΝ ΣΤΙΓΜΗ ΣΤΟ ΧΡΗΜΑΤΙΣΤΗΡΙΟ ΤΟΥ ΛΟΝΔΙΝΟΥ ΜΕ ΤΟ ΓΕΝΙΚΟ ΔΕΙΚΤΗ ΝΑ ΣΗΜΕΙΩΝΕΙ ΑΥΞΗΣΗ ΤΗΣ ΤΑΞΗΣ ΤΟΥ 1,05%.
Ισχυρή κερδοφορία αναμένει για το 2008 η IBM
Ισχυρή κερδοφορία αναμένει για το 2008 η IBM
ΚΕΡΔΗ ανώτερα των εκτιμήσεων της Wall Street ανακοίνωσε πως αναμένει για το 2008 η IBM επικαλούμενη την ισχυρή ανάπτυξή της στο εξωτερικό, η οποία, σύμφωνα με την εταιρεία, αντιστάθμισε τα αδύναμα μεγέθη στις ΗΠΑ και οδήγησε σε άνοδο τη μετοχή της.
Ειδικότερα, η IBM εκτιμά πως τα κέρδη της θα παρουσιάσουν φέτος άνοδο της τάξεως του 15% με 16% και θα διαμορφωθούν μεταξύ 8,20 και 8,30 δολαρίων ανά μετοχή, τη στιγμή που οι αναλυτές της Wall Street προβλέπουν κατά μέσο όρο κέρδη 7,91 δολαρίων ανά μετοχή.
Οι αισιόδοξες αυτές προβλέψεις της κορυφαίας εταιρείας παροχής υπηρεσιών για ηλεκτρονικούς υπολογιστές, ανακοινώθηκαν εν μέσω αυξημένων ανησυχιών ότι η επιβράδυνση της αμερικανικής οικονομίας θα ψαλιδίσει τα κέρδη των επιχειρήσεων του τεχνολογικού κλάδου και όχι μόνο. Ενδεικτικές είναι οι απογοητευτικές προβλέψεις στις οποίες προέβη αυτή την εβδομάδα η Intel
Σύμφωνα με την IBM, τα ετήσια έσοδά της θα μειωθούν κατά περίπου 100 εκατ. δολάρια, σε περίπτωση που καταγραφεί πτώση 10% στα έσοδα από το αμερικανικό τμήμα χρηματοοικονομικών υπηρεσιών, το οποίο αναλογεί στο 7% σχεδόν των συνολικών εσόδων της.
Σημειώνεται ότι στο τέταρτο τρίμηνο του 2007 η εταιρεία εμφάνισε καθαρά κέρδη ύψους 3,95 δισ. δολαρίων, έναντι 3,46 δισ. δολαρίων που είχε ανακοινώσει το αντίστοιχο διάστημα του 2006. Τα έσοδά της ανήλθαν σε 28,9 δισ. δολάρια από 26,3 δισ. δολάρια.
NAFTEMPORIKI
ΚΕΡΔΗ ανώτερα των εκτιμήσεων της Wall Street ανακοίνωσε πως αναμένει για το 2008 η IBM επικαλούμενη την ισχυρή ανάπτυξή της στο εξωτερικό, η οποία, σύμφωνα με την εταιρεία, αντιστάθμισε τα αδύναμα μεγέθη στις ΗΠΑ και οδήγησε σε άνοδο τη μετοχή της.
Ειδικότερα, η IBM εκτιμά πως τα κέρδη της θα παρουσιάσουν φέτος άνοδο της τάξεως του 15% με 16% και θα διαμορφωθούν μεταξύ 8,20 και 8,30 δολαρίων ανά μετοχή, τη στιγμή που οι αναλυτές της Wall Street προβλέπουν κατά μέσο όρο κέρδη 7,91 δολαρίων ανά μετοχή.
Οι αισιόδοξες αυτές προβλέψεις της κορυφαίας εταιρείας παροχής υπηρεσιών για ηλεκτρονικούς υπολογιστές, ανακοινώθηκαν εν μέσω αυξημένων ανησυχιών ότι η επιβράδυνση της αμερικανικής οικονομίας θα ψαλιδίσει τα κέρδη των επιχειρήσεων του τεχνολογικού κλάδου και όχι μόνο. Ενδεικτικές είναι οι απογοητευτικές προβλέψεις στις οποίες προέβη αυτή την εβδομάδα η Intel
Σύμφωνα με την IBM, τα ετήσια έσοδά της θα μειωθούν κατά περίπου 100 εκατ. δολάρια, σε περίπτωση που καταγραφεί πτώση 10% στα έσοδα από το αμερικανικό τμήμα χρηματοοικονομικών υπηρεσιών, το οποίο αναλογεί στο 7% σχεδόν των συνολικών εσόδων της.
Σημειώνεται ότι στο τέταρτο τρίμηνο του 2007 η εταιρεία εμφάνισε καθαρά κέρδη ύψους 3,95 δισ. δολαρίων, έναντι 3,46 δισ. δολαρίων που είχε ανακοινώσει το αντίστοιχο διάστημα του 2006. Τα έσοδά της ανήλθαν σε 28,9 δισ. δολάρια από 26,3 δισ. δολάρια.
NAFTEMPORIKI
Οcean Tankers: Αύξηση κερδών το 2007
Οcean Tankers: Αύξηση κερδών το 2007
ΚΑΘΑΡΑ κέρδη ύψους 3,7 εκατ. δολ. έναντι μόλις 1,7 εκατ. δολ. το 2006, ανακοίνωσε για τη χρήση 2007 η εισηγμένη στο Κυπριακό Χρηματιστήριο εταιρεία της ποντοπόρου ναυτιλίας Ocean Tankers Holdings.
Τα έσοδα της εταιρείας από την εκμετάλλευση των πλοίων αυξήθηκαν σημαντικά στα 16,6 εκατ. δολ. έναντι 9,8 εκατ. δολ. στη χρήση 2006.
Όπως αναφέρει σε ανακοίνωσή της προς το ΧΑΚ η Ocean Tnakers τα έσοδα από την εκμετάλλευση των πλοίων της εταιρείας για το οικονομικό έτος 2007 είναι πολύ βελτιωμένα σε σύγκριση με τα έσοδα του έτους 2006, λόγω του ότι ο στόλος της εταιρείας αυξήθηκε σταδιακά από τρία διπλού τοιχώματος δεξαμενόπλοια το 2006 σε έντεκα διπλού τοιχώματος δεξαμενόπλοια το 2007.
Σε ό,τι αφορά τη τρέχον έτος η εταιρεία εκτιμά ότι θα είναι αισθητά βελτιωμένο σε σύγκριση με το 2007 για τους παρακάτω λόγους:
- Η εταιρεία θα κατέχει έντεκα δεξαμενόπλοια καθ' όλο το οικονομικό έτος 2008.
- Το Μάρτιο με Απρίλιο του 2008 η εταιρεία θα παραλάβει ακόμη τρία δεξαμενόπλοια τα οποία είναι ήδη χρονοναυλωμένα για 7 συν 3 χρόνια με την εταιρεία Lukoil με καθαρό εισόδημα την ημέρα ύψους 15.300 δολ.
- Τον Αύγουστο του 2008, η εταιρεία θα παραλάβει το πρώτο νεότευκτο δεξαμενόπλοιο M/T Gemi, χωρητικότητας 12.800 τόνων.
NAFTEMPORIKI
ΚΑΘΑΡΑ κέρδη ύψους 3,7 εκατ. δολ. έναντι μόλις 1,7 εκατ. δολ. το 2006, ανακοίνωσε για τη χρήση 2007 η εισηγμένη στο Κυπριακό Χρηματιστήριο εταιρεία της ποντοπόρου ναυτιλίας Ocean Tankers Holdings.
Τα έσοδα της εταιρείας από την εκμετάλλευση των πλοίων αυξήθηκαν σημαντικά στα 16,6 εκατ. δολ. έναντι 9,8 εκατ. δολ. στη χρήση 2006.
Όπως αναφέρει σε ανακοίνωσή της προς το ΧΑΚ η Ocean Tnakers τα έσοδα από την εκμετάλλευση των πλοίων της εταιρείας για το οικονομικό έτος 2007 είναι πολύ βελτιωμένα σε σύγκριση με τα έσοδα του έτους 2006, λόγω του ότι ο στόλος της εταιρείας αυξήθηκε σταδιακά από τρία διπλού τοιχώματος δεξαμενόπλοια το 2006 σε έντεκα διπλού τοιχώματος δεξαμενόπλοια το 2007.
Σε ό,τι αφορά τη τρέχον έτος η εταιρεία εκτιμά ότι θα είναι αισθητά βελτιωμένο σε σύγκριση με το 2007 για τους παρακάτω λόγους:
- Η εταιρεία θα κατέχει έντεκα δεξαμενόπλοια καθ' όλο το οικονομικό έτος 2008.
- Το Μάρτιο με Απρίλιο του 2008 η εταιρεία θα παραλάβει ακόμη τρία δεξαμενόπλοια τα οποία είναι ήδη χρονοναυλωμένα για 7 συν 3 χρόνια με την εταιρεία Lukoil με καθαρό εισόδημα την ημέρα ύψους 15.300 δολ.
- Τον Αύγουστο του 2008, η εταιρεία θα παραλάβει το πρώτο νεότευκτο δεξαμενόπλοιο M/T Gemi, χωρητικότητας 12.800 τόνων.
NAFTEMPORIKI
Τσιμέντο: Μπουμ πωλήσεων το 2007
Τσιμέντο: Μπουμ πωλήσεων το 2007
Οι έντονες κατασκευαστικές εργασίες που παρατηρήθηκαν το 2007 στην Κύπρο ανέβασαν σημαντικά τις πωλήσεις τσιμέντου. Σύμφωνα με στοιχεία της Στατιστικής Υπηρεσίας, οι πωλήσεις τσιμέντου αυξήθηκαν το 2007 κατά 10%. Έφθασαν το 1,79 εκ. τόνους έναντι 1,63 εκ. το 2006. Το 2006 η αύξηση που είχε παρατηρηθεί στις πωλήσεις τσιμέντου σε σχέση με το 2005 ήταν μόνο 2,4%.
Το Δεκέμβριο οι πωλήσεις τσιμέντου μειώθηκαν κατά 0,7%. Περιορίστηκαν στις 133,2 χιλ. τόνους σε σχέση με 134,1 χιλ. τόνους το Δεκέμβριο του 2006.
Η σημαντική άνοδος στις πωλήσεις τσιμέντου το 2007 αποδίδεται στην έξαρση των έργων στους κυκλικούς κόμβους Λεμεσού, αλλά και στα αυξημένα έργα στα αεροδρόμια Λάρνακας και Πάφου.
Εξαγωγές
Παρά την αύξηση των επιτόπιων πωλήσεων τσιμέντου, οι εξαγωγές εμφανίζονται μειωμένες λόγω των προσπαθειών των τσιμεντοποιείων για εξυπηρέτηση της ντόπιας ζήτησης. Συγκεκριμένα, οι εξαγωγές το 2007 περιορίστηκαν στις 63 χιλ. σε σχέση με 173,2 χιλ. το 2006.
STOCKWATCH.COM.CY
Οι έντονες κατασκευαστικές εργασίες που παρατηρήθηκαν το 2007 στην Κύπρο ανέβασαν σημαντικά τις πωλήσεις τσιμέντου. Σύμφωνα με στοιχεία της Στατιστικής Υπηρεσίας, οι πωλήσεις τσιμέντου αυξήθηκαν το 2007 κατά 10%. Έφθασαν το 1,79 εκ. τόνους έναντι 1,63 εκ. το 2006. Το 2006 η αύξηση που είχε παρατηρηθεί στις πωλήσεις τσιμέντου σε σχέση με το 2005 ήταν μόνο 2,4%.
Το Δεκέμβριο οι πωλήσεις τσιμέντου μειώθηκαν κατά 0,7%. Περιορίστηκαν στις 133,2 χιλ. τόνους σε σχέση με 134,1 χιλ. τόνους το Δεκέμβριο του 2006.
Η σημαντική άνοδος στις πωλήσεις τσιμέντου το 2007 αποδίδεται στην έξαρση των έργων στους κυκλικούς κόμβους Λεμεσού, αλλά και στα αυξημένα έργα στα αεροδρόμια Λάρνακας και Πάφου.
Εξαγωγές
Παρά την αύξηση των επιτόπιων πωλήσεων τσιμέντου, οι εξαγωγές εμφανίζονται μειωμένες λόγω των προσπαθειών των τσιμεντοποιείων για εξυπηρέτηση της ντόπιας ζήτησης. Συγκεκριμένα, οι εξαγωγές το 2007 περιορίστηκαν στις 63 χιλ. σε σχέση με 173,2 χιλ. το 2006.
STOCKWATCH.COM.CY
ΔΙΕΘΝΕΙΣ ΚΙΝΗΣΕΙΣ...
ΣΗΜΕΡΑ ΑΝΑΜΕΝΟΝΤΕ ΑΝΤΙΔΡΑΣΤΙΚΕΣ ΑΝΟΔΙΚΕΣ ΚΙΝΗΣΕΙΣ/ΑΓΟΡΕΣ ΣΤΙΣ ΔΙΕΘΝΕΙΣ ΑΓΟΡΕΣ ΛΟΓΩ ΤΗΣ ΒΙΑΙΗΣ ΠΤΩΣΗΣ ΤΩΝ ΤΕΛΕΥΤΑΙΩΝ ΗΜΕΡΩΝ ΣΕ ΣΥΝΔΥΑΣΜΟ ΜΕ ΤΙΣ ΑΝΑΜΕΝΟΜΕΝΕΣ ΕΞΑΓΓΕΛΙΕΣ ΣΤΗΡΙΞΗΣ ΤΗΣ ΑΜΕΡΙΚΑΝΙΚΗΣ ΟΙΚΟΝΟΜΙΑΣ ΠΡΟΣ ΑΠΟΦΥΓΗ ΤΗΣ ΥΦΕΣΗΣ.
U.K. Offers London as Base for China's $200 Bln Fund
U.K. Offers London as Base for China's $200 Bln Fund
Jan. 18 (Bloomberg) -- U.K. Prime Minister Gordon Brown has offered London as an overseas base for China's $200 billion sovereign wealth fund, aiming to encourage the world's fastest- growing major economy to invest in Britain.
``Amidst the global economy's difficulties and turbulence, the importance of China and our growing relationship is absolutely crucial to the success of the global economy,'' Brown said today in Beijing. ``We want Britain to be the number one destination for Chinese business as it chooses to invest in the rest of the world. Tens of thousands of jobs in Britain can be created from cooperation between our two countries.''
The economy of the world's most populous nation overtook the U.K. in 2005, and Britain's trade with China may grow 50 percent to $60 billion by 2010, according to a goal set today by Brown and Chinese Premier Wen Jiabao. China last year surpassed the U.K. as the biggest exporter to the Eurozone and Brown wants to sell British luxury brands to Chinese consumers, attract Chinese students to U.K. universities and draw the country's estimated 300 million soccer fans to the English Premier League.
``We can now sell China not just financial services, but also a whole range of British brands that are becoming very popular among the rising number of Chinese consumers,'' Brown said at a press conference during his first China trip as British prime minister.
China may surpass the U.K. as the second largest market for Rolls-Royce luxury cars, the brand's owner Bayerische Motoren Werke AG said in April 2007. Rolls-Royce sold 75 cars in China in 2006, half of the brand's Asia-Pacific sales and about 10 percent of global sales.
China's Sovereign Fund
China Investment Corp. was set up last year to improve the returns on the Chinese government's $1.4 trillion of foreign- currency reserves. Beijing-based CIC spent more than $8 billion last year buying stakes in Morgan Stanley, the second-biggest U.S. securities firm, and Blackstone Group LP, manager of the world's largest buyout fund.
Sovereign wealth funds, which invest money controlled by national governments, have taken stakes in banks including Citigroup Inc. and Merrill Lynch & Co. in recent weeks. China Development Bank has invested in Barclays Plc, Britain's third biggest bank.
``We welcome international investors, but they have to play by our rules,'' Jon Cunliffe, a senior economic adviser to Brown, told journalists before he and the prime minister left London. ``We're in favor of open investment, an open economy.''
Brown, whose departure yesterday was delayed by a crash- landing of another aircraft at London's Heathrow airport, met Wen this morning in central Beijing.
Contracts Signed
The two nations signed eight agreements to cooperate in education, climate change and renewable energy. BP Plc and China Petrochemical Corp. agreed to expand a factory in southwestern China to produce acetic acid. HSBC Holdings Plc and Arup agreed to help Shanghai Industrial Holdings Corp. develop methods for financing the development of energy-sustainable cities.
The two premiers agreed to allow Chinese companies to double their initial public offers on the London Stock Exchange in the next two years. Up to 15 Chinese companies currently trade their stocks on the London exchange, according to Bloomberg data.
Virgin Group Ltd. founder Richard Branson, currently seeking financing for his offer to buy Northern Rock Plc, traveled with Brown. Branson said he's confident his bid would succeed, adding he didn't plan to talk with Chinese officials about the matter.
``I'm confident that the Bank of England can put a proposition together that can save Northern Rock,'' Branson said yesterday on board his flight to Beijing. ``We are the only serious contenders. The management indicated they agree. The board have indicated they agree. Subject to what Goldman Sachs have to say, I am still confident a deal can be done.''
Options Open
Brown has repeatedly said he is keeping all options open to recover more than 25 billion pounds ($49 billion) in government loans supporting Northern Rock, including nationalizing the bank. The government would consider allowing a bid for the bank financed by a sovereign wealth fund, Michael Ellam, a spokesman for the prime minister, said on Jan. 10.
To bolster his economic message, Brown has brought along 30 chief executives from the U.K. including Philip Yea of 3i Group Plc, AstraZeneca Plc's David Brennan and Arun Sarin of Vodafone Plc. Barclays Plc Chairman Marcus Agius, Standard Life Plc Chairman Gerry Grimstone and British Energy Group Plc Chairman Adrian Montague are also on the trip.
BLOOMBERG
Jan. 18 (Bloomberg) -- U.K. Prime Minister Gordon Brown has offered London as an overseas base for China's $200 billion sovereign wealth fund, aiming to encourage the world's fastest- growing major economy to invest in Britain.
``Amidst the global economy's difficulties and turbulence, the importance of China and our growing relationship is absolutely crucial to the success of the global economy,'' Brown said today in Beijing. ``We want Britain to be the number one destination for Chinese business as it chooses to invest in the rest of the world. Tens of thousands of jobs in Britain can be created from cooperation between our two countries.''
The economy of the world's most populous nation overtook the U.K. in 2005, and Britain's trade with China may grow 50 percent to $60 billion by 2010, according to a goal set today by Brown and Chinese Premier Wen Jiabao. China last year surpassed the U.K. as the biggest exporter to the Eurozone and Brown wants to sell British luxury brands to Chinese consumers, attract Chinese students to U.K. universities and draw the country's estimated 300 million soccer fans to the English Premier League.
``We can now sell China not just financial services, but also a whole range of British brands that are becoming very popular among the rising number of Chinese consumers,'' Brown said at a press conference during his first China trip as British prime minister.
China may surpass the U.K. as the second largest market for Rolls-Royce luxury cars, the brand's owner Bayerische Motoren Werke AG said in April 2007. Rolls-Royce sold 75 cars in China in 2006, half of the brand's Asia-Pacific sales and about 10 percent of global sales.
China's Sovereign Fund
China Investment Corp. was set up last year to improve the returns on the Chinese government's $1.4 trillion of foreign- currency reserves. Beijing-based CIC spent more than $8 billion last year buying stakes in Morgan Stanley, the second-biggest U.S. securities firm, and Blackstone Group LP, manager of the world's largest buyout fund.
Sovereign wealth funds, which invest money controlled by national governments, have taken stakes in banks including Citigroup Inc. and Merrill Lynch & Co. in recent weeks. China Development Bank has invested in Barclays Plc, Britain's third biggest bank.
``We welcome international investors, but they have to play by our rules,'' Jon Cunliffe, a senior economic adviser to Brown, told journalists before he and the prime minister left London. ``We're in favor of open investment, an open economy.''
Brown, whose departure yesterday was delayed by a crash- landing of another aircraft at London's Heathrow airport, met Wen this morning in central Beijing.
Contracts Signed
The two nations signed eight agreements to cooperate in education, climate change and renewable energy. BP Plc and China Petrochemical Corp. agreed to expand a factory in southwestern China to produce acetic acid. HSBC Holdings Plc and Arup agreed to help Shanghai Industrial Holdings Corp. develop methods for financing the development of energy-sustainable cities.
The two premiers agreed to allow Chinese companies to double their initial public offers on the London Stock Exchange in the next two years. Up to 15 Chinese companies currently trade their stocks on the London exchange, according to Bloomberg data.
Virgin Group Ltd. founder Richard Branson, currently seeking financing for his offer to buy Northern Rock Plc, traveled with Brown. Branson said he's confident his bid would succeed, adding he didn't plan to talk with Chinese officials about the matter.
``I'm confident that the Bank of England can put a proposition together that can save Northern Rock,'' Branson said yesterday on board his flight to Beijing. ``We are the only serious contenders. The management indicated they agree. The board have indicated they agree. Subject to what Goldman Sachs have to say, I am still confident a deal can be done.''
Options Open
Brown has repeatedly said he is keeping all options open to recover more than 25 billion pounds ($49 billion) in government loans supporting Northern Rock, including nationalizing the bank. The government would consider allowing a bid for the bank financed by a sovereign wealth fund, Michael Ellam, a spokesman for the prime minister, said on Jan. 10.
To bolster his economic message, Brown has brought along 30 chief executives from the U.K. including Philip Yea of 3i Group Plc, AstraZeneca Plc's David Brennan and Arun Sarin of Vodafone Plc. Barclays Plc Chairman Marcus Agius, Standard Life Plc Chairman Gerry Grimstone and British Energy Group Plc Chairman Adrian Montague are also on the trip.
BLOOMBERG
NYSE Euronext to Acquire the American Stock Exchange
NYSE Euronext to Acquire the American Stock Exchange
NEW YORK--(BUSINESS WIRE)--NYSE Euronext (NYSE Euronext: NYX), the world’s largest and most liquid exchange group, has entered into a definitive agreement to acquire the American Stock Exchange® (Amex®). The proposed business combination, which has been approved by both companies’ boards of directors, will significantly enhance NYSE Euronext’s scale in U.S. options, exchange traded funds (ETFs), closed-end funds, structured products and cash equities. Subject to approval by Amex members and customary regulatory approvals, including from the U.S. Securities and Exchange Commission and Department of Justice, this transaction is expected to close in the third quarter of this year and to be accretive to NYSE Euronext’s 2009 earnings.
Under terms of the agreement, NYSE Euronext will pay $260 million in NYSE Euronext common stock for the Amex. In addition, Amex members will be entitled to receive additional shares of NYSE Euronext common stock based on the net proceeds from the expected sale of Amex’s lower Manhattan headquarters.
The acquisition of the Amex provides for a number of additional benefits and opportunities for NYSE Euronext:
Obtain a second U.S. option exchange license, which will enable NYSE Euronext to operate a compelling dual market structure making available to all customers the choice of price-time priority on NYSE Arca and the Amex’s traditional market-maker model;
Provide additional volume to NYSE Euronext’s robust U.S. options business, making it the third largest U.S. options marketplace;
Operate a third, complementary U.S. cash equities exchange, in addition to the NYSE and NYSE Arca;
Strengthen NYSE Arca’s leadership position in ETF listing and trading, joining 381 current Amex ETF listings with 240 NYSE Arca ETF listings;
Offer a leading venue for listing and trading closed-end funds and structured products, including 545 listings on Amex and over 1,000 listings on NYSE;
Realize annualized run rate cost synergies of over $100 million within two years from closing, including technology, data center and staff integration, consolidation of professional and contract services and vendors; and
Relocate Amex’s trading floor operations to the NYSE trading floor.
Source: NYSE Euronext
“The addition of the American Stock Exchange to the NYSE Euronext family is highly beneficial for our customers and shareholders, and demonstrates our ongoing commitment to growing our business and product lines,” said Duncan L. Niederauer, NYSE Euronext CEO. “NYSE Euronext is the established leader in global financial-market consolidation, offering the most attractive and diverse array of products of any global exchange. This transaction is consistent with our strategic objectives and will strengthen our competitive position in the U.S., produce significant operational efficiencies, and create new business opportunities.”
Neal Wolkoff, Chairman and CEO of the American Stock Exchange, said, “The Amex is pleased to join NYSE Euronext and be part of the world’s leading multi-asset global exchange. With the Amex’s diverse business lines and specialization in launching innovative new products, I am excited to be at the helm of the Amex as we complete this compelling and strategic business combination.”
Amex operating revenues for the year-ended December 31, 2007 were approximately $178 million, and the company generated a pre-tax net loss of approximately $36 million. On Dec. 31, 2007, the Amex employed 471 people. Upon the expected completion of Amex’s acquisition by NYSE Euronext in the third quarter of 2008, Amex is expected to operate at a breakeven level for fiscal year 2008, and in 2009 the transaction is expected to be accretive to NYSE Euronext’s earnings.
Lehman Brothers is acting as financial advisor and Wachtell, Lipton, Rosen & Katz is acting as legal advisors to NYSE Euronext on this transaction. Amex is represented by Morgan Stanley as financial advisor and Milbank, Tweed, Hadley & McCloy LLP, and Paul, Weiss, Rifkind, Wharton & Garrison LLP as legal advisors.
Analyst/Investor and Media Briefing: Jan. 17, 2008, 5:15pm (NY/ET)
NYSE Euronext and Amex senior management representatives will host a joint analyst/investor and media call via teleconference today regarding this announcement. A live audio webcast of the conference call will be available on the Investor Relations section of NYSE Euronext’s website, http://www.nyseeuronext.com/ir. Those wishing to listen to the live conference via telephone should dial-in at least 10 minutes before the call begins.
Audio replays of the conference call will be available on the Investor Relations section of NYSE Euronext’s website, http://www.nyseeuronext.com/ir and by dial-in beginning approximately two hours following the conclusion of the live call.
Background
On Jan. 14, 2008, NYSE Euronext announced the signing of a definitive agreement to acquire Wombat Financial Software (Wombat), a privately held global leader in high-performance financial market data management solutions.
On April 4, 2007, the shares of NYSE Euronext began trading. The debut of NYSE Euronext followed the successful combination of NYSE Group, Inc. (NYSE Group) and Euronext N.V. (Euronext) and created the global leader in listings, in equity and derivatives trading, in market data products and financial services technology.
On Dec. 12, 2006, NYSE Group announced the signing of a definitive agreement to acquire TransactTools Inc., the global leader in enterprise messaging solutions for the securities trading industry. The transaction closed on Jan. 8, 2007.
On March 8, 2006, NYSE Group completed the merger with Archipelago Holdings to become a for-profit, publicly traded company, trading on the NYSE under symbol NYX.
On Oct. 25, 2006, NYSE Group announced an agreement to acquire the one-third ownership stake in the then Securities Industry Automation Corporation (SIAC) held by Amex for approximately $40 million in order to gain full ownership of SIAC, including Sector, Inc. and SFTI. The transaction closed on Nov. 1, 2006.
About NYSE Euronext
NYSE Euronext, a holding company created by the combination of NYSE Group, Inc. and Euronext N.V., commenced trading on April 4, 2007. NYSE Euronext (NYSE Euronext: NYX) operates the world’s largest and most liquid exchange group and offers the most diverse array of financial products and services. NYSE Euronext, which brings together six cash equities exchanges in five countries and six derivatives exchanges in six countries, is a world leader for listings, trading in cash equities, equity and interest rate derivatives, bonds and the distribution of market data. Representing a combined $30.3 trillion/€21.3 trillion total market capitalization of listed companies and average daily trading value of approximately $139 billion/€103 billion (as of September 30, 2007), NYSE Euronext seeks to provide the highest standards of market quality and integrity, innovative products and services to investors, issuers, and all users of its markets. NYSE Euronext is part of the S&P 500 and S&P 100 indexes.
About American Stock Exchange
The American Stock Exchange® (Amex®) offers trading across a full range of equities, options and exchange traded funds (ETFs), including structured products and HOLDRSSM. In addition to its role as a national equities market, the Amex is the pioneer of the ETF, responsible for bringing the first domestic product to market in 1993. Leading the industry in ETF listings, the Amex lists 381 ETFs to date. The Amex is also one of the largest options exchanges in the U.S., trading options on broad-based and sector indexes as well as domestic and foreign stocks.
IMPORTANT INFORMATION WITH RESPECT TO THE MERGER
In connection with the proposed acquisition by NYSE Euronext of The Amex Membership Corporation (“Amex”), NYSE Euronext intends to file with the U.S. Securities and Exchange Commission (“SEC”) a registration statement on Form S-4, containing a preliminary proxy statement/prospectus regarding the proposed transaction. The parties will file other relevant documents concerning the proposed transaction with the SEC. Such documents, however, are not currently available. AMEX MEMBERS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED TRANSACTION WHEN IT BECOMES AVAILABLE, BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION. Amex members can obtain a free copy of the final proxy statement/prospectus, as well as other filings containing information about NYSE Euronext and Amex without charge, at the SEC’s website (http://www.sec.gov). Copies of the final proxy statement/ prospectus can also be obtained, without charge, once they are filed with the SEC, by directing a request to the Office of the Corporate Secretary, NYSE Euronext, 11 Wall Street, New York 10005, 212-656-2061 or to Amex, Attention: Office of Corporate Secretary, 86 Trinity Place, NY NY 10006, 212-306-1408.
This document shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Cautionary Note Regarding Forward-Looking Statements
This press release may contain forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning NYSE Euronext's and Amex’s plans, objectives, expectations and intentions and other statements that are not historical or current facts. Forward-looking statements are based on NYSE Euronext's and Amex’s current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Factors that could cause NYSE Euronext's and Amex’s results to differ materially from current expectations include, but are not limited to: NYSE Euronext's and Amex’s ability to implement their respective strategic initiatives, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk and U.S. and global competition, and, in the case of NYSE Euronext,other factors detailed in NYSE Euronext’s reference document for 2006 ("document de référence") filed with the French Autorité des Marchés Financiers (Registered on June 6, 2007 under No. R.07-0089), 2006 Annual Report on Form 10-K, as amended, and other periodic reports filed with the U.S. Securities and Exchange Commission or the French Autorité des Marchés Financiers. In addition, these statements are based on a number of assumptions that are subject to change. Accordingly, actual results may be materially higher or lower than those projected. The inclusion of such projections herein should not be regarded as a representation by NYSE Euronext or Amex that the projections will prove to be correct. This press release speaks only as of this date. NYSE Euronext and Amex disclaims any duty to update the information herein.
BUSINESS WIRE
NEW YORK--(BUSINESS WIRE)--NYSE Euronext (NYSE Euronext: NYX), the world’s largest and most liquid exchange group, has entered into a definitive agreement to acquire the American Stock Exchange® (Amex®). The proposed business combination, which has been approved by both companies’ boards of directors, will significantly enhance NYSE Euronext’s scale in U.S. options, exchange traded funds (ETFs), closed-end funds, structured products and cash equities. Subject to approval by Amex members and customary regulatory approvals, including from the U.S. Securities and Exchange Commission and Department of Justice, this transaction is expected to close in the third quarter of this year and to be accretive to NYSE Euronext’s 2009 earnings.
Under terms of the agreement, NYSE Euronext will pay $260 million in NYSE Euronext common stock for the Amex. In addition, Amex members will be entitled to receive additional shares of NYSE Euronext common stock based on the net proceeds from the expected sale of Amex’s lower Manhattan headquarters.
The acquisition of the Amex provides for a number of additional benefits and opportunities for NYSE Euronext:
Obtain a second U.S. option exchange license, which will enable NYSE Euronext to operate a compelling dual market structure making available to all customers the choice of price-time priority on NYSE Arca and the Amex’s traditional market-maker model;
Provide additional volume to NYSE Euronext’s robust U.S. options business, making it the third largest U.S. options marketplace;
Operate a third, complementary U.S. cash equities exchange, in addition to the NYSE and NYSE Arca;
Strengthen NYSE Arca’s leadership position in ETF listing and trading, joining 381 current Amex ETF listings with 240 NYSE Arca ETF listings;
Offer a leading venue for listing and trading closed-end funds and structured products, including 545 listings on Amex and over 1,000 listings on NYSE;
Realize annualized run rate cost synergies of over $100 million within two years from closing, including technology, data center and staff integration, consolidation of professional and contract services and vendors; and
Relocate Amex’s trading floor operations to the NYSE trading floor.
Source: NYSE Euronext
“The addition of the American Stock Exchange to the NYSE Euronext family is highly beneficial for our customers and shareholders, and demonstrates our ongoing commitment to growing our business and product lines,” said Duncan L. Niederauer, NYSE Euronext CEO. “NYSE Euronext is the established leader in global financial-market consolidation, offering the most attractive and diverse array of products of any global exchange. This transaction is consistent with our strategic objectives and will strengthen our competitive position in the U.S., produce significant operational efficiencies, and create new business opportunities.”
Neal Wolkoff, Chairman and CEO of the American Stock Exchange, said, “The Amex is pleased to join NYSE Euronext and be part of the world’s leading multi-asset global exchange. With the Amex’s diverse business lines and specialization in launching innovative new products, I am excited to be at the helm of the Amex as we complete this compelling and strategic business combination.”
Amex operating revenues for the year-ended December 31, 2007 were approximately $178 million, and the company generated a pre-tax net loss of approximately $36 million. On Dec. 31, 2007, the Amex employed 471 people. Upon the expected completion of Amex’s acquisition by NYSE Euronext in the third quarter of 2008, Amex is expected to operate at a breakeven level for fiscal year 2008, and in 2009 the transaction is expected to be accretive to NYSE Euronext’s earnings.
Lehman Brothers is acting as financial advisor and Wachtell, Lipton, Rosen & Katz is acting as legal advisors to NYSE Euronext on this transaction. Amex is represented by Morgan Stanley as financial advisor and Milbank, Tweed, Hadley & McCloy LLP, and Paul, Weiss, Rifkind, Wharton & Garrison LLP as legal advisors.
Analyst/Investor and Media Briefing: Jan. 17, 2008, 5:15pm (NY/ET)
NYSE Euronext and Amex senior management representatives will host a joint analyst/investor and media call via teleconference today regarding this announcement. A live audio webcast of the conference call will be available on the Investor Relations section of NYSE Euronext’s website, http://www.nyseeuronext.com/ir. Those wishing to listen to the live conference via telephone should dial-in at least 10 minutes before the call begins.
Audio replays of the conference call will be available on the Investor Relations section of NYSE Euronext’s website, http://www.nyseeuronext.com/ir and by dial-in beginning approximately two hours following the conclusion of the live call.
Background
On Jan. 14, 2008, NYSE Euronext announced the signing of a definitive agreement to acquire Wombat Financial Software (Wombat), a privately held global leader in high-performance financial market data management solutions.
On April 4, 2007, the shares of NYSE Euronext began trading. The debut of NYSE Euronext followed the successful combination of NYSE Group, Inc. (NYSE Group) and Euronext N.V. (Euronext) and created the global leader in listings, in equity and derivatives trading, in market data products and financial services technology.
On Dec. 12, 2006, NYSE Group announced the signing of a definitive agreement to acquire TransactTools Inc., the global leader in enterprise messaging solutions for the securities trading industry. The transaction closed on Jan. 8, 2007.
On March 8, 2006, NYSE Group completed the merger with Archipelago Holdings to become a for-profit, publicly traded company, trading on the NYSE under symbol NYX.
On Oct. 25, 2006, NYSE Group announced an agreement to acquire the one-third ownership stake in the then Securities Industry Automation Corporation (SIAC) held by Amex for approximately $40 million in order to gain full ownership of SIAC, including Sector, Inc. and SFTI. The transaction closed on Nov. 1, 2006.
About NYSE Euronext
NYSE Euronext, a holding company created by the combination of NYSE Group, Inc. and Euronext N.V., commenced trading on April 4, 2007. NYSE Euronext (NYSE Euronext: NYX) operates the world’s largest and most liquid exchange group and offers the most diverse array of financial products and services. NYSE Euronext, which brings together six cash equities exchanges in five countries and six derivatives exchanges in six countries, is a world leader for listings, trading in cash equities, equity and interest rate derivatives, bonds and the distribution of market data. Representing a combined $30.3 trillion/€21.3 trillion total market capitalization of listed companies and average daily trading value of approximately $139 billion/€103 billion (as of September 30, 2007), NYSE Euronext seeks to provide the highest standards of market quality and integrity, innovative products and services to investors, issuers, and all users of its markets. NYSE Euronext is part of the S&P 500 and S&P 100 indexes.
About American Stock Exchange
The American Stock Exchange® (Amex®) offers trading across a full range of equities, options and exchange traded funds (ETFs), including structured products and HOLDRSSM. In addition to its role as a national equities market, the Amex is the pioneer of the ETF, responsible for bringing the first domestic product to market in 1993. Leading the industry in ETF listings, the Amex lists 381 ETFs to date. The Amex is also one of the largest options exchanges in the U.S., trading options on broad-based and sector indexes as well as domestic and foreign stocks.
IMPORTANT INFORMATION WITH RESPECT TO THE MERGER
In connection with the proposed acquisition by NYSE Euronext of The Amex Membership Corporation (“Amex”), NYSE Euronext intends to file with the U.S. Securities and Exchange Commission (“SEC”) a registration statement on Form S-4, containing a preliminary proxy statement/prospectus regarding the proposed transaction. The parties will file other relevant documents concerning the proposed transaction with the SEC. Such documents, however, are not currently available. AMEX MEMBERS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED TRANSACTION WHEN IT BECOMES AVAILABLE, BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION. Amex members can obtain a free copy of the final proxy statement/prospectus, as well as other filings containing information about NYSE Euronext and Amex without charge, at the SEC’s website (http://www.sec.gov). Copies of the final proxy statement/ prospectus can also be obtained, without charge, once they are filed with the SEC, by directing a request to the Office of the Corporate Secretary, NYSE Euronext, 11 Wall Street, New York 10005, 212-656-2061 or to Amex, Attention: Office of Corporate Secretary, 86 Trinity Place, NY NY 10006, 212-306-1408.
This document shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Cautionary Note Regarding Forward-Looking Statements
This press release may contain forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning NYSE Euronext's and Amex’s plans, objectives, expectations and intentions and other statements that are not historical or current facts. Forward-looking statements are based on NYSE Euronext's and Amex’s current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Factors that could cause NYSE Euronext's and Amex’s results to differ materially from current expectations include, but are not limited to: NYSE Euronext's and Amex’s ability to implement their respective strategic initiatives, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk and U.S. and global competition, and, in the case of NYSE Euronext,other factors detailed in NYSE Euronext’s reference document for 2006 ("document de référence") filed with the French Autorité des Marchés Financiers (Registered on June 6, 2007 under No. R.07-0089), 2006 Annual Report on Form 10-K, as amended, and other periodic reports filed with the U.S. Securities and Exchange Commission or the French Autorité des Marchés Financiers. In addition, these statements are based on a number of assumptions that are subject to change. Accordingly, actual results may be materially higher or lower than those projected. The inclusion of such projections herein should not be regarded as a representation by NYSE Euronext or Amex that the projections will prove to be correct. This press release speaks only as of this date. NYSE Euronext and Amex disclaims any duty to update the information herein.
BUSINESS WIRE
Philips May Post Higher Fourth-Quarter Profit on Stake Sales
Philips May Post Higher Fourth-Quarter Profit on Stake Sales
Jan. 18 (Bloomberg) -- Royal Philips Electronics NV, the world's biggest maker of light bulbs and electric shavers, may say fourth-quarter profit rose 81 percent on gains from selling Taiwan Semiconductor Manufacturing Co. shares.
Net income may have increased to 1.23 billion euros ($1.8 billion) from 680 million euros a year earlier, the median estimate of 10 analysts Bloomberg News surveyed by telephone and e-mail. Revenue likely climbed 1.1 percent to 8.14 billion euros.
Chief Executive Officer Gerard Kleisterlee has sold most of Philips' semiconductor unit and shares in Taiwan Semiconductor to raise funds for acquisitions in the appliances, medical and lighting divisions. The Amsterdam-based company, also Europe's largest maker of televisions, announced or completed more than 10 billion euros of takeovers since 2005.
``The strategy will prove itself by definition,'' said Scott Geels, an analyst at Sanford C. Bernstein who has a ``market perform'' rating on the stock. ``Clearly, if the economy is slowing, you probably don't want to own those massively cyclical businesses.'' The company has said it would record about 1.03 billion euros of non-taxable gains from selling shares in Taiwan Semiconductor and LG.Philips LCD Co. It would also incur charges of 380 million euros related to plans to sell its 70 percent stake in MedQuist Inc. and the disposal of a majority stake in the chip unit in 2006.
Sales Growth
Sales growth was probably fueled by the units making lamps and appliances. Earnings before interest, tax and amortization, or Ebita, probably rose 8.1 percent to 798 million euros as profitability improved at the lighting unit, the survey shows.
Philips has sold more than two-thirds of its 16.2 percent stake in Hsinchu, Taiwan-based Taiwan Semiconductor, the world's largest customized-chipmaker, since saying in March it planned to divest its shares.
The Dutch company holds 19.9 percent of NXP BV, Europe's second-biggest semiconductor maker, after selling control of the unit to a group of buyout firms in 2006. Philips also sold a 13 percent stake in LG.Philips LCD, the world's second-largest maker of liquid-crystal displays, and now owns 19.9 percent.
``They're basically done,'' Geels said. ``Now it comes back to what people should always be looking at: growing sales and improving margins.''
Display Record
Seoul-based LG.Philips, the world's No. 2 maker of liquid- crystal displays, on Jan. 14 reported a record quarterly profit on surging demand for screens used in computers and televisions.
LG.Philips' fourth-quarter net income was 760 billion won ($811 million), compared with a loss of 174.3 billion won a year earlier. That beat the 654 billion-won median estimate of 17 analysts Bloomberg surveyed by phone and e-mail.
Of the 41 analysts covering Philips in the past year, 32 recommend buying the stock and four advise selling it, according to data compiled by Bloomberg.
Philips fell 18 cents, or 0.7 percent, to 25.65 euros in Amsterdam trading yesterday. The shares, which rose 3.3 percent last year, are down 13 percent this year, compared with an 11 percent slide in the benchmark Amsterdam Exchanges Index.
Kleisterlee, 61, received 2.54 million euros in total compensation in 2006, a 24 percent increase from 2005. The executive, who joined Philips in 1974, wasn't available for comment before the report, said company spokesman Arent Jan Hesselink.
Using Cash
Philips has said asset sales and a plan to increase debt will leave cash for takeovers in medical equipment and lighting. The company on Dec. 21 said it agreed to buy U.S. medical- equipment maker Respironics Inc. for 3.6 billion euros in its largest-ever acquisition.
Since 2005, Philips also completed or announced 10.2 billion euros of share buybacks. The company received more than 12 billion euros of proceeds from divestments over the same period.
Credit-default swap contracts based on Philips have risen 18 basis points to 64 so far this year, according to data compiled by Bloomberg. Credit-default swaps are used to speculate on a company's ability to repay debt. A rise indicates worsening perceptions of credit quality.
Standard & Poor's rates the company's debt A- and Moody's Investors Service rates it A3.
BLOOMBERG
Jan. 18 (Bloomberg) -- Royal Philips Electronics NV, the world's biggest maker of light bulbs and electric shavers, may say fourth-quarter profit rose 81 percent on gains from selling Taiwan Semiconductor Manufacturing Co. shares.
Net income may have increased to 1.23 billion euros ($1.8 billion) from 680 million euros a year earlier, the median estimate of 10 analysts Bloomberg News surveyed by telephone and e-mail. Revenue likely climbed 1.1 percent to 8.14 billion euros.
Chief Executive Officer Gerard Kleisterlee has sold most of Philips' semiconductor unit and shares in Taiwan Semiconductor to raise funds for acquisitions in the appliances, medical and lighting divisions. The Amsterdam-based company, also Europe's largest maker of televisions, announced or completed more than 10 billion euros of takeovers since 2005.
``The strategy will prove itself by definition,'' said Scott Geels, an analyst at Sanford C. Bernstein who has a ``market perform'' rating on the stock. ``Clearly, if the economy is slowing, you probably don't want to own those massively cyclical businesses.'' The company has said it would record about 1.03 billion euros of non-taxable gains from selling shares in Taiwan Semiconductor and LG.Philips LCD Co. It would also incur charges of 380 million euros related to plans to sell its 70 percent stake in MedQuist Inc. and the disposal of a majority stake in the chip unit in 2006.
Sales Growth
Sales growth was probably fueled by the units making lamps and appliances. Earnings before interest, tax and amortization, or Ebita, probably rose 8.1 percent to 798 million euros as profitability improved at the lighting unit, the survey shows.
Philips has sold more than two-thirds of its 16.2 percent stake in Hsinchu, Taiwan-based Taiwan Semiconductor, the world's largest customized-chipmaker, since saying in March it planned to divest its shares.
The Dutch company holds 19.9 percent of NXP BV, Europe's second-biggest semiconductor maker, after selling control of the unit to a group of buyout firms in 2006. Philips also sold a 13 percent stake in LG.Philips LCD, the world's second-largest maker of liquid-crystal displays, and now owns 19.9 percent.
``They're basically done,'' Geels said. ``Now it comes back to what people should always be looking at: growing sales and improving margins.''
Display Record
Seoul-based LG.Philips, the world's No. 2 maker of liquid- crystal displays, on Jan. 14 reported a record quarterly profit on surging demand for screens used in computers and televisions.
LG.Philips' fourth-quarter net income was 760 billion won ($811 million), compared with a loss of 174.3 billion won a year earlier. That beat the 654 billion-won median estimate of 17 analysts Bloomberg surveyed by phone and e-mail.
Of the 41 analysts covering Philips in the past year, 32 recommend buying the stock and four advise selling it, according to data compiled by Bloomberg.
Philips fell 18 cents, or 0.7 percent, to 25.65 euros in Amsterdam trading yesterday. The shares, which rose 3.3 percent last year, are down 13 percent this year, compared with an 11 percent slide in the benchmark Amsterdam Exchanges Index.
Kleisterlee, 61, received 2.54 million euros in total compensation in 2006, a 24 percent increase from 2005. The executive, who joined Philips in 1974, wasn't available for comment before the report, said company spokesman Arent Jan Hesselink.
Using Cash
Philips has said asset sales and a plan to increase debt will leave cash for takeovers in medical equipment and lighting. The company on Dec. 21 said it agreed to buy U.S. medical- equipment maker Respironics Inc. for 3.6 billion euros in its largest-ever acquisition.
Since 2005, Philips also completed or announced 10.2 billion euros of share buybacks. The company received more than 12 billion euros of proceeds from divestments over the same period.
Credit-default swap contracts based on Philips have risen 18 basis points to 64 so far this year, according to data compiled by Bloomberg. Credit-default swaps are used to speculate on a company's ability to repay debt. A rise indicates worsening perceptions of credit quality.
Standard & Poor's rates the company's debt A- and Moody's Investors Service rates it A3.
BLOOMBERG
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