ING to Renegotiate EU Restructuring Deal
Source: Reuters Dutch financial services group ING is set to renegotiate a restructuring agreed with the European Commission in return for a EUR10.0 billion (US$13.0 billion) state bailout, potentially resulting in fewer sales of smaller assets. The sale or listing of ING’s insurance and investment management operations in Asia, Europe and the United States will...
German Industrial Output Rises Three Times More than Forecast
Source: Bloomberg German industrial output rose more than three times as much as economists forecast in March, adding to signs Europe’s largest economy may have avoided recession. Production jumped 2.8 per cent from February, when it dropped 0.3 per cent, the Economy Ministry in Berlin said Tuesday. February output was revised up from a...
Credit Suisse to Seek China Stock Trading Licence
Source: Bloomberg Credit Suisse Group AG plans to boost capital at its Chinese joint venture and apply for a stock trading permit in the country, as the government loosens restrictions on foreign investment banks. Credit Suisse will move bankers to China to take advantage of higher ownership limits and a shorter wait for a licence...
Greek Vote Poses New Challenge for IMF Rescue
Source: AFP The International Monetary Fund’s already fragile rescue for Greece has taken a serious battering, after Greek voters rejected the government that accepted the Fund’s harsh austerity programme in exchange for bailout funding. The weekend vote that sent a centrist government packing also sent a message to the IMF and the European Union that...
German Factory Orders Rise More Than Forecast in March
Source: Bloomberg German factory orders rose more than economists forecast in March as demand from outside the euro area helped Europe’s largest economy weather the debt crisis. Factory orders, adjusted for seasonal swings and inflation, jumped 2.2 per cent from February, when they gained a revised 0.6 per cent, the Economy Ministry in Berlin said...
French Banks Slide on Tax Concern after Hollande Election Win
Source: Bloomberg French banks tumbled in Paris trading after the election victory of Francois Hollande raised concern that lenders will face higher taxes and may have to split off some of their riskier operations. BNP Paribas SA fell as much as 4.1 per cent, Societe Generale SA declined as much as 4.5 per cent, while...
RBS to Repay Last of Government Aid, Reinstate Dividends
Source: Bloomberg Royal Bank of Scotland Group Plc, Britain’s biggest publicly-owned lender, said it will pay back the last of its emergency aid from the UK government and will resume paying dividends on preference shares. Operating profit rose 4 per cent in the first quarter to GBP1.18 billion (US$1.91 billion) from GBP1.13 billion a year...
Swiss Re Profit Beats Estimates as Catastrophe Losses Drop
Source: Bloomberg Swiss Re Ltd, the world’s second-biggest reinsurer, posted better-than-expected first-quarter profit as catastrophe claims fell from a record level and investment returns improved. Swiss Re rose the most in almost two months in Zurich trading after reporting net income of US$1.14 billion following a loss of US$665 million a year earlier. That beat...
Lufthansa Reveals 3,500 Job Cuts
Source: AFP Germany’s top airline Lufthansa announced on Thursday that it intended to shed 3,500 administrative jobs in the next few years as part of a radical cost-cutting programme. The unprecedented steep cuts were intended to reduce administrative costs by a quarter, the airline said in a statement. Cuts in staff costs overall would...
Germany’s Metro Posts Loss after Cutting Prices on Electronics
Source: Bloomberg Metro AG, Germany’s biggest retailer, reported a wider-than-expected first-quarter loss after cutting prices of electronics goods to win back shoppers. The net loss was EUR82 million (US$108 million) compared with a EUR3-million loss a year earlier, the Dusseldorf-based company said Thursday in a statement. The average estimate of nine analysts compiled by Bloomberg...
Spain Meets Bond Target while French Borrowing Costs Fall
Source: Bloomberg Spanish bonds gained after the Treasury met its target at a debt sale, while French costs declined at an auction, easing concern that the countries will struggle to finance their borrowings. The Spanish Treasury sold EUR2.52 billion (US$3.31 billion) of bonds, exceeding its maximum target. Still, Spain had to pay 4.037 per...
French Bank Societe Generale Profit Falls 20.1 Per cent
Source: AFP French bank Societe Generale reported on Thursday a 20.1-per cent drop in quarterly net profit to EUR732 million (US$963 million) owing to a EUR119-million charge for risky debt. But the outcome was higher than expected by analysts polled by Dow Jones Newswires who had forecast on average a figure of EUR630 million....
