RBS LOSS IS THE BIGGEST OF ANY BANK IN THE WORLD
Royal Bank of Scotland lost more than any other bank in the world last year, booking a pre-tax operating loss of nearly $60bn (£36.7bn), according to figures released today.The Banker magazine’s Top 1000 World Banks 2008/09 survey revealed that RBS was the world’s biggest loser, beating Wall Street giant Citigroup, which lost slightly more than $53bn, into second place, HBOS, the bank that was taken over by Lloyds TSB last year, was the sixth largest loser, at $15.8bn.
GCL-POLY TO BUY SOLAR ASSETS FOR $3.4BN
GCL-Poly Energy, a Hong Kong-based power plant operator, said yesterday it would pay HK$26.4bn (£2bn) to acquire solar assets from its chairman as it seeks to expand in the green energy sector. The company said it would buy Jiangsu Zhongeng, a supplier of polysilicon and wafers used by the solar industry, from Zhu Gongshan, chairman and controlling shareholder of
GCL-Poly.ACTIVISTS BOARD VESSEL IN KINGSNORTH PROTEST
Environmental campaigners have stepped up their fight against coal-fired power with an attempt to block a vessel carrying fuel to the Kingsnorth power station in Kent. Greenpeace protesters boarded the coal freighter while others tried to impede its passage along the river Medway to the dock.
INDIA TO BAN REPLICA HANDSETS FROM CHINA
India is moving to block millions of cheap copy-cat Chinese mobile phones and accessories from flooding the market, because they are of dangerously poor quality. “Many of these phones behave like little bombs – exploding because the battery is bad,” said Pankaj Mohindroo, president of the Indian Cellular Association.
TV’S COWELL AND RETAILER GREEN JOIN FORCES
Simon Cowell, one of the world’s biggest TV stars, has joined forces with Sir Philip Green, the British retail billionaire, to form a global entertainment company that will create and own television content on both sides of the Atlantic.The two men, close friends for the past decade, have been working closely together in recent weeks, with Green advising Cowell on contracts.
BANK’S LACK OF ACTION ON LENDING FRUSTRATES TREASURY
Frustration is growing at the highest levels of the Treasury over the Bank of England’s failure to take swifter and more determined action to boost flows of lending to cash-strapped businesses across Britain. Treasury ministers and officials are said to be increasingly exasperated over the Bank’s tardiness in taking more urgent steps to ease credit conditions for business, especially for small firms and medium-sized companies.
FINANCIAL MESS SHOWS THE LONDON DEVELOPMENT AGENCY CAN'T BE TRUSTED
The latest financial mess to emerge from the London Development Agency vindicates the decision to create a separate 2012 legacy company to own and operate the Olympic Park after the Games.
HEDGE FUND MANAGERS BETTING TWITTER WILL GIVE THEM AN EDGE IN RAPID TRADING
Hedge fund managers are turning to Twitter in an attempt to steal a march on their rivals. Traders are using software developed by US-based technology StreamBase to monitor “tweets” for price sensitive information. The software plugs into Algorithm-based automated trading platforms that have been used by traders for years. But rather than searching Reuters or Bloomberg the software now scans Twitter.com.
AIRBUS FEARS CHINA'S AVIATION INDUSTRY MAY SOON CHALLENGE BRITAIN'S WING PRODUCTION
Airbus factories in China are rapidly mastering aircraft technology and may soon pose a direct challenge to Britain's niche industry of wing production, Airbus has warned.
RED ROOF INN DEFAULTS ON MORTGAGE DEBT
Red Roof Inn defaulted on $367m face amount of mortgage debt that was packaged into commercial mortgage-backed securities, it said yesterday. Debt-rating company Realpoint reported earlier that Red Roof defaulted on $332m, face amount, in mortgage debt this month. Realpoint said it found a fourth delinquent mortgage of $35m, bringing the total default to roughly $367m.
NORSK HYDRO QUITS TAKEOVER BID
Norwegian aluminum supplier Norsk Hydro ASA dropped its efforts to buy Asia Aluminum Holdings, dashing hopes for an alternative to a restructuring of the Chinese company that will leave some foreign debtholders with next to nothing. Advisers to the foreign creditors informed them of Norsk Hydro’s decision.
INTEL AND NOKIA TEAM UP
Intel and Nokia have revealed plans to work together to create the next generation of mobile computing. The move brings Intel closer to a breakthrough in the mobile phone market and the potential adoption of its chips in handsets. Intel’s microprocessors run about 80 per cent of the world’s personal computers but the firm has struggled to enter the mobile market. Nokia executive Kai Oistamo stopped short of saying exactly what they wanted to develop, saying it was a “technology collaboration”.
ALDI AND LIDL’S GROWTH RATE FALLING BEHIND
Discounters like Aldi and Lidl are now growing less quickly than British stalwarts such as J Sainsbury and Morrisons in a sign that the traditional supermarkets’ fight-back is succeeding, a survey showed yesterday. Britain’s grocery market grew by a recession-beating 6.5 per cent in the 12 weeks to 14 June compared to the same period last year, helped by food inflation of seven per cent, market researcher TNS World Panel said.
LENDING WEAK BUT MORTGAGE APPROVALS UP
There was more good news for the UK housing market yesterday in the shape of mortgage approvals data from the British Bankers’ Association (BBA).The BBA said approvals for home purchase numbered 31,162 in May, compared to 29,018 in April. This marks a 15.8 per cent increase on the same period in 2008.BBA statistics director, David Dooks, said: “Unlike much of the mortgage market, the high street banks are still seeing lending growth. Improved mortgage availability is reflected in higher average loan approval values.”
DELOITTE ENDS SETANTA’S RUN
Accountancy firm Deloitte was called in yesterday afternoon to act as administrator of Setanta Sport, ending weeks of speculation over the future of the Irish pay-TV broadcaster. “After a huge effort by the Setanta board, management team and its backers, it has not been possible to save the Great Britain (GB) business, which will be wound down in due course,” said Deloitte partner Neville Kahn, adding that the channel would cease to air within hours.
FUND BOSSES SHRUG OFF THE CORRECTION
Fund managers yesterday said that UK markets were facing a correction but that the FTSE 100 would not fall below the 3,500 level as it did in March. They said they were not preparing for a severe correction, after the UK’s blue chip index closed at 4,230 points yesterday, a 6.1 per cent fall on the highs of over 4,500 seen at the start of the month. And they added they remained bullish on the prospects for a sustained recovery, arguing that further confirmation of recent good news would see markets resume their rallies.
