Jan
2009
Articles from 22nd Jan 2009
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Markets close with banks suffering again
Jan 22 2009 | National Business News
Heightened volatility continued all day in the banking sector with Barclays and Royal Bank of Scotland shares see-sawing in another tough session for the sector.RBS swung between positive and negative territory, while Barclays remained in the red, although Lloyds Banking Group held firm in positive territory at the head of the risers board.Heavy falls in early trading on Wall Street saw the wider FTSE 100 Index close down 7.7 points at 4052.2.The Dow Jones Industrial Average plunged 3% after figures revealed the number of new unemployment claims jumped more than expected last week, to a seasonally adjusted 589,000 - well above economists forecasts of 540,000.In London, Barclays was the biggest faller, down 10% or 6.9p at 59.2p, having earlier dipped only 0.9p, while RBS closed down 0.3p at 12.2p, having risen as much as 16% at one stage.Barclays was suffering amid speculation that any further capital raising initiative could trigger a clause that would hand control of the bank to its Middle East investors.Among other banking stocks, HSBC rose 11.5p to 527p and fellow Asian-facing bank Standard Chartered lifted 4%, or 34p to 800p.The biggest corporate news of the session came from telecoms giant BT Group after it warned of a £340 million one-off charge from its under-performing Global Services division.Shares slumped 9% or 11.2p to 111.8p, as the stock returned to the 20-year low seen in October after a previous profits warning from Global Services.Supermarket group Morrisons was also lower despite posting healthy Christmas trading figures, as analysts turned their attention to uncertain trading prospects in 2009. Shares were off 4% or 11.5p at 252.75p, while rival Tesco was down 1.4p at 349.9p and Sainsbury’s fell 10.75p to 300.5p.Other retailers were also seeing falls, with Next down 4p at 1098p and Argos parent Home Retail Group off 1p at 201.25p.Low-cost airline easyJet made progress in the FTSE 250 Index after it reported better-than-expected passenger numbers for the first quarter. Shares jumped 12% or 31.75p to 286.75p as easyJet’s revenues lifted 32% to £550 million and it said it had captured more business from outside of the UK.The carrier’s rise was overtaken by pub firms Enterprise Inns and Punch Taverns after a trading update from Enterprise calmed nerves in the sector.The better-than-expected statement lifted Enterprise by 19% or 6p to 37.75p, while Punch gained 21% or 7p to 9.25p.Fellow pub group Mitchells & Butlers was up 9.75p at 169.75p after Bank of America raised its rating on the stock, but Greene King was lower after the same note lowered the bank’s price target. The brewer and pubs chain was off 25.75p at 355.25p, a fall of 7%.The biggest Footsie risers were Lloyds Banking Group ahead 4p at 49.1p, Amlin ahead 16.75p at 394p, Standard Chartered up 34p at 800p and Friends Provident up 3p at 74.3p.The biggest Footsie fallers were Barclays down 6.9p at 59.2p, BT Group off 11.2p at 111.8p, Man Group down 14p at 206.75p and Aviva off 15p at 283p. Read
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Somerfield is latest supermarket to report improved Christmas sales
Jan 22 2009 | National Business News
Grocery retailer Somerfield has reported strong Christmas sales driven by the performance of its smaller shops.The chain, which last week saw its takeover by the Co-op receive the green light, said like-for-like sales for the three weeks to January 3 grew by 3.7%.The £1.6bn takeover of the Somerfield is the biggest in the Co-op’s history and will cement its position as the UK’s fifth largest food retailer, creating a chain of around 3,000 outlets with a market share of 8%.Somerfield’s chief executive Paul Mason said the figures provided an excellent platform for the combined Somerfield and Co-operative Group businesses.The Co-operative Group, which merged with United Co-operatives in 2007 to create the world’s largest consumer co-operative, last month announced its 11th successive quarter of like-for-like sales growth, continuing the revival in its fortunes.Somerfield retail director John Cleland said that sales growth in the smaller of the chain’s 900 stores was ``industry-leading“, with shops below 5,000 sq ft delivering close to 10% like-for-like sales over Christmas.He said: “On completion of the transaction with the Co-operative Group, we will be bringing together two businesses that currently have real momentum and a shared vision to be Britain’s favourite local grocery shop.”Supermarket giant Tesco has the biggest share (30.7%) of the UK’s £120 billion grocery market, followed by Asda and Sainsbury’s.The Co-op has 4.2% and Somerfield 3.5%, according to market researchers TNS. Read
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Uncertainty on Threshers' future
Jan 22 2009 | National Business News
Uncertainty surrounds off-licence group Threshers after it emerged that its owner has closed 100 stores in the last six months and is in discussions over the future of others.According to sources close to the company First Quench, which also owns Wine Rack and convenience store chain The Local, it is in talks with landlords over rental payments for some of its unprofitable stores.First Quench has already closed 100 Threshers outlets as part of its attempts to restructure the business.The source said First Quench hoped to reduce the size of rental payments for unprofitable Threshers shops to within manageable levels, or to pay monthly rather than every three months.None of the company’s other brands are thought to be affected by the move.A national newspaper report said the company could close as many as 400 stores.First Quench first announced its intention to restructure the business in March last year and has since converted 23 Threshers stores into The Locals.It has also updated 276 Wine Rack stores with a new “True Blue“ colour scheme.According to the company’s website, it owns a total of 1,500 shops - including its Haddows shops in Scotland - and employs more than 12,000 people across the UK. Read
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Microsoft cutting jobs
Jan 22 2009 | National Business News
Microsoft has announced it is axing up to 5,000 jobs, with 1,400 to go with immediate effect.The computer giant said the rest will go over the next 18 months, after it suffered an 11% drop in net income for its last quarter compared with the previous year.Today’s losses involved less than 2% of its UK workforce of around 2,900 - fewer than 60 people, according to the company.A spokesman could not put a figure on how the further cuts will affect UK staff, who work out of offices in London, Reading, Manchester, Edinburgh, Cambridge and Chertsey, Surrey.Microsoft said it was removing jobs in its research and development, marketing, sales, finance, legal, HR and IT departments after economic activity slowed more than it had expected. Read
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easyJet sees 20% rise in European passengers
Jan 22 2009 | National Business News
Budget airline easyJet has said more than half of its customers were now from outside the UK after it saw a 20% rise in European passenger numbers. Read
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BT takes £340m hit
Jan 22 2009 | National Business News
BT shares were back on the ropes today after the telecoms giant disclosed a hit of £340m from its under-performing IT networks division. Read
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Royal Mail posts £255m profit
Jan 22 2009 | National Business News
THE Royal Mail made an increased profit of £255m in the nine months to Christmas, and all its businesses are in profit for the first time in almost 20 years, the postal group announced yesterday. Read
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Morrisons Christmas sales jump
Jan 22 2009 | National Business News
Supermarket chain Morrisons continued to outperform its rivals today after it revealed like-for-like sales jumped 8.2% over Christmas. Read
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British Gas cuts bills
Jan 22 2009 | National Business News
British Gas today said it was cutting the price of its standard tariff by 10%. Read
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AIG will not renew Reds' sponsor deal
Jan 22 2009 | National Business News
INSURANCE company American International Group, last year rescued by the US government, has confirmed it will not renew its sponsorship of Manchester United. Read
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Blanchflower wanted cut to 1%
Jan 22 2009 | National Business News
BANK of England policymakers voted 8-1 in favour of cutting interest rates to a record low of 1.5% earlier this month. Read
