Top Headlines - part 75
BUSINESS October 12, 2011 | 10:25 AM
- $500,000 spent this year on lobbying with US officials
- Reports of tie-up with Tata Coffee
- Starbucks shares up 3.7%; Tata Coffee rises 9.8%
Starbucks is stepping up lobbying efforts with United States government officials as it eyes a breakthrough into the rapidly expanding Indian market.
The American coffee giant has tried to find a foothold in India for many years, but efforts until now have proven fruitless. Earlier this year, the Seattle-based company began lobbying with US policymakers to help boost its chances. The group has been lobbying with the government on a range of topics since 2004, though this year saw the first mention of market openings in India in its quarterly disclosure reports.Read more »
BUSINESS October 12, 2011 | 9:37 AM
- Oracle set to concentrate on existing products after making over 70 acquisitions since 2005
- CEO Larry Ellison launches new Oracle Public Cloud and 100+ Fusion business applications at At OpenWorld 2011
- Oracle stock up by 9% over past year
After spending more than $40 billion over the past few years to acquire more than 70 companies, Oracle has now decided to focus on internal growth. While not completely ruling out any new large deals, Oracle co-President Safra Catz told analysts at a meeting in San Francisco that these would have to clear an “enormous hurdle” and that the Redwood City-based firm would instead be concentrating on increasing hardware sales and introducing a new cloud-computing service.
Starting with its purchase of the human-resources software company PeopleSoft in 2005, Oracle has acquired a string of companies as a strategy for boosting sales, which topped $35 billion for the fiscal year ending in May and are predicted to reach more than $38.5 billion this year, a rise of 8%.Read more »
FINANCE October 11, 2011 | 5:46 PM
- €4 billion part-nationalization part of wider bailout plan
- Belgium, France, Luxembourg agree 10-year, €90-billion guarantee
- Shares drop 4.7% after suspension of trading
The Belgian government has agreed to buy the local lending unit of Dexia for €4 billion ($5.4 billion) as part of a wider rescue package for the struggling Franco-Belgian bank. The bailout plan comes after an earlier rescue package for the bank during the financial crisis and includes plans for a €90 billion ($121 billion) guarantee for the next 10 years.
Belgium will put up 60.5% of the funds and France 36.5%, with Luxembourg providing the remaining 3%. Belgian Prime Minister Yves Leterme said these steps were necessary to protect the local retail arm and to reassure Dexia’s shareholders that that their money was fully secured.Read more »
WORLD October 11, 2011 | 5:23 PM
- 200 countries must agree at Durban talks in November for treaty to be extended
- Airlines could require permit allowing carbon dioxide emissions during takeoff, landing at EU airports from January 1, 2012
- EU emissions up almost 2.5% in 2010, after 7% drop in 2009
The United Nations is considering extending the Kyoto Protocol without Canada, Japan and Russia. UN talks are scheduled to take place in South Africa in November to determine how to replace or extend the treaty, which set greenhouse gas emissions limits to be respected by 2012.
Canada, Russia, and China have refused new Kyoto targets unless they apply to all major economic players; around 200 nations will still need to agree during the talks in Durban for the extension to go ahead. The EU will agree to the extension on the condition all major economies comply with a separate treaty that would be legally enforceable.Read more »
WORLD October 11, 2011 | 5:20 PM
- US firm to get 80% of ship’s treasure trove, UK government to get 20%
- Steamship’s cargo of 20 tons of silver laying on sea bed since 1917
- Odyssey recently found UK ship holding $200 million worth of silver
US firm Odyssey Marine Exploration has discovered a UK shipwreck laden with 20 tons of silver worth around $18 million. A German submarine sank the steamship Mantola in the North Atlantic off the coast of Ireland in 1917.
Odyssey sighted the Mantola while using a tethered robot in its search for another ship, and is contracted by the British Department for Transport to recover the silver. Odyssey stands to gain 80% of the silver’s worth, with the remainder going to the UK government. As private companies come up with the capital to cover expensive sea exploration projects with no guarantee they will yield favorable results, it is customary practice to divvy up any eventual profits.Read more »
FINANCE October 11, 2011 | 10:47 AM
- BNP Paribas said newspaper claim it will seek to raise $9.4 billion is untrue
- BNP hopes to reach capital ratio of 9%, 6 years ahead of Basel III schedule
- Societe Generale denies seeking capital of $5.5 billion
Top French bank BNP Paribas SA said the newspaper claim that it may look to generate $9.4 billion in capital is untrue. The Journal du Dimanche report had also stated that Societe Generale SA might similarly attempt to increase its capital by $5.5 billion as part of a joint move with Germany, which would see the banks in both countries seek to grow capital.
In September, both banks announced plans to avoid depending on US dollar capital and to boost investor confidence. BNP is aiming for a Tier 1 capital ratio of 9%, in accordance with Basel III rules, by 2013. Reaching this rate of financial stability would entail different moves, including reducing its corporate and investment banking segment by $82 billion.Read more »
FINANCE October 10, 2011 | 2:43 PM
- Moody's downgrades 12 British lenders, including RBS and Lloyds
- EU plans recapitalization of $115 billion, Britain unlikely to bailout banks
- Lloyds refunds customers for misleading PPI information
Moody's Investors Service has reduced credit ratings for twelve British lenders due to fears that the British government may not provide support for the financial sector. Moody's cut five major banks including Royal Bank of Scotland, Lloyds TSB, Santander UK, Co-Operative Bank, Nationwide Building Society and seven smaller British banks.
The two other major lenders, Barclays and HSBC, were unharmed. RBS was cut two levels from Aa3 to A2, while Lloyds was cut by one notch from Aa3 to A1.Read more »
FINANCE October 10, 2011 | 12:20 PM
- Protests spread to over a dozen US cities
- Labor unions join in movement
- Dallas Fed president voices support; NY Mayor slams protesters
The Occupy Wall Street protests against corporate power and social inequality in the United States have spread to over a dozen cities across the country. The movement began as a loosely organized handful of people who began camping out in Zuccotti Park in New York’s financial district on September 17. Now it has spread through ten states, with new groups adding their voices to the movement.
Protesters are angry about corporate greed, corruption in the government and the growing gap between the rich and poor in America.Read more »
WORLD October 10, 2011 | 12:15 PM
- Over 20% of artwork unsold in Hong Kong Autumn auction
- Ming dynasty vase sells for record $21.6 million; art sales poor
- Last spring auction in Hong Kong a huge success
Sales figures from Sotheby’s Autumn auction in Hong Kong suggest the roaring Asian art market may be slowing as gloomy economic forecasts send stocks plummeting worldwide.
The New York-based auction house was selling mainly 20th century Chinese and contemporary Asian art, and pulled in good prices for early works from renowned artistes like Zhang Xiaogang.Read more »
BUSINESS October 10, 2011 | 11:59 AM
- Sony to beef up smartphone strategy; take on Apple, Samsung
- Decision on Sony Ericsson future to be made this month
- Deal could be worth up to $1.7 billion
Sony is looking to step up its smartphone campaign by buying out Ericsson’s share of its mobile phone joint venture, according to sources close to the situation.
Sony manufactures tablet PCs, PCs, handheld game consoles and other consumer electronics devices but all smartphone operations are controlled by Sony Ericsson, the sixth-largest mobile phone making entity in the world.Read more »