February 2010

Video: Ex-BlackRock Manager Finds Grass is Greener at His Farm

February 26, 2010

Feb. 26 (Bloomberg) — Bloomberg’s Eric Coleman reports on the decision of former money manager Graham Birch to abandon his career at BlackRock Inc. in favor of running a dairy and sheep farm in Dorset, southwest England. Bloomberg’s Linzie Janis also speaks.

Read the full article →

Video: Tyrangiel Discusses Warren Buffett’s Management Style: Video

February 26, 2010

Feb. 26 (Bloomberg) — Bloomberg BusinessWeek editor Josh Tyrangiel talks with Deirdre Bolton about the latest issue of Bloomberg BusinessWeek, which features a cover story on billionaire investor Warren Buffett’s management style and involvement in companies whose shares he owns. (Source: Bloomberg)

Read the full article →

Video: Coutts Risks Losing Royal Lustre After U.K. Bank Bailout

February 26, 2010

Feb. 26 (Bloomberg) — Bloomberg’s Elliott Gotkine reports on the challenges facing Coutts & Co., the private bank owned by Royal Bank of Scotland Group Plc which counts Queen Elizabeth II among its clients. Maryam Nemazee also speaks.

Read the full article →

Video: U.K. Home Rentals Rise as Bank Terms Dim Ownership Hopes

February 26, 2010

Feb. 26 (Bloomberg) — Bloomberg’s John Cookson reports on the decline in U.K. home ownership as higher property prices and the limited availability of mortgages curb buyers. Andrea Catherwood also speaks.

Read the full article →

Video: Matt Rogers Sees New York Storm Affecting Heating Oil: Video

February 26, 2010

Feb. 26 (Bloomberg) — Matt Rogers, president of Commodity Weather Group, talks with Bloomberg’s Erik Schatzker and Deirdre Bolton about the snowstorm in the New York metropolitan area and its impact on heating oil supply and demand. The National Weather Service extended its winter storm warning for the region until 6 a.m. tomorrow, saying the city faced “near-blizzard” conditions. (Source: Bloomberg)

Read the full article →

Video: Cash Is King for Apple’s Jobs; NBC’s Olympic Loss: Video

February 26, 2010

Feb. 26 (Bloomberg) — Bloomberg’s Deirdre Bolton reports on today’s top technology stories. (Source: Bloomberg)

Read the full article →

Crab Soup Shows U.S. Airlines Wooing Premium Fliers as Travel Slump Abates

February 26, 2010

By Mary Jane Credeur and Mary Schlangenstein Feb. 26 (Bloomberg) — Delta Air Lines Inc. and AMR Corp.’s American Airlines , the world’s two largest carriers, are counting on lie-flat seats and Tahitian crab soup to help win back their most-profitable customers. With the easing of an 18-month global slump in first- and business-class travel, Delta’s seats that recline 180 degrees into beds and American’s Asian-fusion appetizers are lures for the corporate passengers whose ranks dwindled when the global recession ravaged budgets for international flying. Filling the premium seats at the front of airplane cabins is pivotal to U.S. airlines’ efforts to return to profit in 2010 after weak demand forced them into discounting to woo vacationers. Business fliers are prized because they typically pay the highest prices and take to the air more often. “If you’re flying to Japan or Seoul, it makes all the difference in the world to put your legs up and really sleep and arrive rested and ready to go,” said Chris McGinnis, editor of The BAT , a San Francisco-based newsletter and blog for frequent travelers. “You’re going to feel really taken care of.” U.S. airlines have been playing catch-up in recent years with overseas competitors such as Virgin Atlantic Airways Ltd. that moved more quickly to add amenities including seats that convert into beds. Shrinking Pool The recession shrank the pool of first- and business-class fliers for airlines worldwide, with December’s 1.7 percent increase in premium bookings the first for the global industry since May 2008, the International Air Transport Association trade group said on Feb. 16. While those passengers made up only 7.7 percent of 2009’s overseas total, they produced 26 percent of the revenue on those flights, IATA said. For example, Delta charges $4,998 for a walk-up, business-class ticket between New York’s Kennedy airport and London Heathrow. A discounted coach seat is $1,175 next month. International premium-ticket sales slid to $68 billion worldwide last year, down 20 percent from 2007. That contributed to losses at Delta, AMR, United Airlines parent UAL Corp. , Continental Airlines Inc. and US Airways Group Inc. Now, investor optimism is improving. The Bloomberg U.S. Airlines Index of 12 carriers has gained 9.7 percent this year, compared with a 46 percent plunge in the same period in 2009 as the economy weakened. Atlanta-based Delta fell 9 cents to $12.66 yesterday in New York Stock Exchange composite trading , while AMR rose 6 cents to $8.93. ‘Starting to Rebound’ “We continue to see signs that business travel trends are starting to rebound,” Matthew Jacob , an analyst at Majestic Research LLC in New York, told clients yesterday in a note. Delta is spending $1 billion on fleet upgrades through 2013, including lie-flat seats and quilted duvet comforters on 90 planes that fly international routes. Delta and Houston-based Continental both sought fliers’ input in designing new seats. “Seat comfort is among the highest factors in purchase drivers and satisfaction,” said Joanne Smith , Delta’s senior vice president of in-flight service and product development. Meals are important as well, as evidenced by Delta’s plans to add tarts to dessert options that include cheese and sundaes; the business-class menu at Continental revamped in December with help from New York chef James Canora of Delmonico’s restaurant; and American’s Asian cuisine unveiled Feb. 1. American flights between Tokyo and four U.S. airports, including Kennedy, offer first- and business-class fliers choices including the crab soup and gingered scallops with lobster sauce. The Fort Worth, Texas-based airline also improved its business-class seats and in-flight entertainment. Minimize Hassles The intent is to create “the best possible mix of things we can give to our customers to minimize their hassles and maximize their time,” Dan Garton , American’s executive vice president for marketing, said in an interview. At British Airways Plc , Chief Executive Officer Willie Walsh said Feb. 10 he is considering whether to add more U.S. destinations for his all-business-unit that serves Kennedy from London City Airport because the five-month-old route is “performing really well.” That would put pressure on carriers including Delta, because London-based British Airways already is the No. 1 operator of flights across the North Atlantic, the world’s biggest market for corporate travel. Qantas Airways Ltd. , Australia’s largest carrier, signaled its business-class strategy last week with a plan to drop first- class seats to some cities. Business First Qantas’ revamping of 29 wide-body jets to expand business- class cabins is “a commercial decision that you can generate more revenue allocating that space to business rather than first class,” said David Swierenga , president of aviation consultant AeroEcon in Round Rock, Texas. The affected routes include the 14-hour flight between Sydney and Johannesburg, for which Qantas now charges A$13,812 ($12,346) for the costliest round-trip ticket in first class. That’s almost twice as much as for business class. “Business class has become so luxurious with seats that lie flat and unlimited drinks and terrific food,” said Alan Bender , a professor of airline economics at Embry-Riddle Aeronautical University in Daytona Beach, Florida. “How can I justify another big sum of money for just a marginal increase in luxury for first class?” Bender said the industry standard for first-class service is still being set by the Asian carriers flying the longest intercontinental trips, including Singapore Airlines Ltd., Cathay Pacific Airways Ltd. and Japan Airlines Corp. ‘Greatest Wealth’ “Most of their routes are international business cities where there is the greatest wealth in the world, so naturally you have more people who want the very best service when they fly,” he said. Singapore Airlines is the first carrier to fly the double- decker Airbus SAS A380, which features private suites with sliding doors and the widest available business-class seats. The airline also spends S$11 million ($8 million) a year on wine and Dom Perignon champagne for first-class passengers. Delta and Continental are among the U.S. airlines that ditched their three-cabin configuration years ago in favor of plusher business seating along with coach, according to Bender. On United, one of the U.S. carriers still using three cabins on some routes, the menu developed by celebrity chef Charlie Trotter includes sea bass with a three-onion ragout in first class, while business-class choices include grilled mahi- mahi with a sweet-and-sour vegetable stir-fry. The trick for U.S. airlines is balancing that luxury service with the fare-cutting pressure on domestic routes from discounters such as Southwest Airlines Co., JetBlue Airways Corp. and AirTran Holdings Inc. , Bender said. “It’s very hard to do both well, so over time we’ve seen the U.S. carriers focus more on the middle ground of having a really nice business class,” he said. To contact the reporters on this story: Mary Jane Credeur in Atlanta at mcredeur@bloomberg.net ; Mary Schlangenstein in Dallas at maryc.s@bloomberg.net .

Read the full article →

Diageo Sees U.S. iPhone Users, Middle-Aged Women as Boon to Vodka Prices

February 26, 2010

By Andrew Cleary Feb. 26 (Bloomberg) — Diageo Plc is ramping up marketing to U.S. iPhone users and middle-aged American women as it seeks to restore sales growth and pricing power in the world’s most profitable spirits market. The Absolut and Smirnoff maker is “stepping up activity pretty significantly” in 2010 after 18 months of reduced advertising and discounting, said Larry Schwartz , president of Diageo’s U.S. unit. He didn’t provide figures. “There’s a new consumer out there, and we’re spending more to convince them to pay another one or two dollars a bottle,” Schwartz said in an interview at Diageo’s New York office. “The level of promotions has bottomed out. I want to take price.” The amount of liquor sold by the company in North America fell 4 percent in the six months through December, while sales declined 6 percent as Diageo discounted more products and consumers bought cheaper varieties of its brands. The distiller generates about 40 percent of earnings in the U.S., where it reduced its marketing spending by 9 percent last year as total liquor sales in the market stagnated at $18.7 billion. “Advertising builds brands, it drives volume, and only then can you start to increase prices,” said Gerard Rijk , an analyst at ING in Amsterdam. “Increasing prices without first increasing marketing won’t work — the U.S. consumer has gotten used to cheap buys.” Rijk has a “hold” rating on Diageo. Diageo’s spending on digital media in the U.S. will increase to about 21 percent of total marketing in 2010 from 16 percent last year, according to Jim Moseley, vice president of consumer planning and research. Cocktail Recipes One of the distiller’s new initiatives is an application for Apple Inc. ’s iPhone that allows the user to scan the barcode of a bottle of Smirnoff or Tanqueray gin and be shown cocktail recipes based on that liquor, Moseley said. Diageo also aims to tap middle-aged women, who it says account for 62 percent of vodka purchases made in stores, by advertising and running promotions through food and lifestyle Web sites such as NBC Universal Inc.’s Today show. “We’ve seen pretty dramatic shifts in consumer attitudes and behavior, in what they drink and how they drink it,” Moseley said. “We have to adapt to the new normal.” That adaptation includes changing the way in which Diageo advertises its brands to consumers who have been “scarred” by the recession, Moseley said. The maker of Johnnie Walker whisky and Captain Morgan rum plans to introduce at least 10 new vodka-based products in the U.S. within the next nine months, including a chocolate vodka in collaboration with Godiva Chocolatier Inc., Schwartz said. About 60 percent of the growth in U.S. spirits consumption is in the vodka category, according to Diageo. Cheaper Brands U.S. consumers will probably continue seeking cheaper brands or varieties this year, which may prompt the distiller to “compete in value a little more,” Schwartz said. “Everything is on the table.” According to Nielsen data, U.S. grocery stores offered promotions or discounts on 49.1 percent of Diageo products in the four weeks ended Feb. 10, up 0.1 percentage point from the year-earlier period. The peak year-on-year increase over the past six months was 8 percent, according to UBS AG. “Diageo has gone from leading the promotional activity higher at the start of the second half of 2009, to now trailing on promotional activity,” Melissa Earlam , an analyst at UBS in London, said in a Feb. 23 note. “While one month does not make a trend, if Diageo continues to cut promotions, it will be interesting to see if its competitors follow its lead.” ‘Still Waiting’ Weaning U.S. consumers off discounted spirits may not be easy, according to Andrew Klugerman, the owner of the K & D Wines & Spirits liquor store on New York’s Upper East Side. “When things are bad, everybody wants something on sale — even wealthy people,” Klugerman said in the aisles of his Madison Avenue store. “People aren’t stopping buying, they’re asking what can I buy that’s as good, but not so much.” Diageo is “still waiting” for drinkers to return to bars and restaurants, the so-called on-premise trade, where liquor companies sell more of their priciest brands, Moseley said. “We’re probably still another year away from on-premise picking up, but it definitely feels as though we’ve hit the low point and are on the climb back,” he said. To contact the reporter on this story: Andrew Cleary in London at acleary7@bloomberg.net .

Read the full article →

Portugal Under `No Pressure’ to Speed Bond Sales, Debt Chief Soares Says

February 26, 2010

By Anabela Reis and Anchalee Worrachate Feb. 26 (Bloomberg) — Portugal is under “no pressure” to speed up bond sales because almost 20 percent of the country’s financing needs for this year have already been met, according to Alberto Soares , chairman of the government debt agency. The nation may sell as much as 20 billion euros ($27 billion) of bonds in 2010 and has already issued 5 billion euros of debt, including a 3 billion euros of 10-year notes earlier this month. The region’s benchmark issuer Germany has so far met 17 percent of its 2010 target. Portuguese bonds have been battered by the fallout from the crisis that has engulfed the Greek government’s attempts to cut the Europe Union’s biggest budget deficit. Prime Minister Jose Socrates has pledged to lower Portugal’s budget gap of 9.3 percent of gross domestic product by more than half in three years. “We obviously try to issue bonds in moments when the market presents some stability,” Soares, 58, said in an interview in Lisbon yesterday. “We aren’t particularly pressured.” Portuguese bonds are the worst performing in the region this year after Greece, handing investors a 0.5 percent loss compared with a 4.3 percent decline in Greek debt, according to Bloomberg/EFFAS indexes. The yield premium that investors demand for holding 10-year Portuguese debt instead of the benchmark German bund rose five basis points to 120 basis points yesterday. A basis point is 0.01 percentage point. Standard & Poor’s lowered the outlook on Portugal’s A+ rating to negative in December, and Moody’s Investors Service also has a negative outlook on its Aa2 rating. Fitch Ratings reduced the outlook on its AA grade to negative in September. The nation’s public debt will rise to 91 percent of economic output by 2011, from 77 percent last year, according to European Commission forecasts. To contact the reporters on this story: Anabela Reis in Lisbon at areis1@bloomberg.net . Anchalee Worrachate in London at aworrachate@bloomberg.net

Read the full article →

Cote, Rivlin Said to Be Among Obama’s Picks for Deficit-Cutting Commission

February 26, 2010

By Hans Nichols and Roger Runningen Feb. 26 (Bloomberg) — Honeywell International Inc . Chief Executive Officer David Cote and former Federal Reserve Vice Chairman Alice Rivlin will be named today by President Barack Obama to a commission on cutting the federal deficit , an administration official said. The president also is picking Andy Stern , president of the Service Employees International Union, and former Young & Rubicam Brands CEO Ann Fudge for the panel, the official said, speaking on condition of anonymity before the official announcement. Obama last week named former Democratic White House official Erskine Bowles and former Wyoming Republican Senator Alan Simpson as co-chairmen of the commission. The White House appointees will be joined by 12 other panel members chosen by Democratic and Republican leaders in the House and Senate. The 18-member National Commission on Fiscal Responsibility was created by Obama to come up with recommendations for steps to reduce the federal deficit, which is forecast to hit a record $1.6 trillion this year. The budget shortfall may be an issue in November elections that will determine control of Congress. The commission may recommend tax increases, spending cuts or a combination of both to reduce U.S. deficits in the next five years to about 3 percent of the economy from an estimated 10.6 percent now. Under current projections, the budget will show a deficit of $752 billion, accounting for 3.9 percent of the economy, in 2015. “Everything’s on the table, that’s how this thing’s going to work,” Obama said Feb. 18 after signing the order to create the commission. Senate Appointees Democratic Senators Dick Durbin of Illinois, Kent Conrad of North Dakota and Max Baucus of Montana were named to the panel Feb. 23 by Senate Democratic Leader Harry Reid . Republicans and House Democrats haven’t yet named their members. Obama signed an executive order creating the panel after lawmakers from both parties said a special commission would be needed to tackle the problem of the budget deficit. The president’s order can’t force Congress to vote on the recommendations, though Reid and House Speaker Nancy Pelosi have promised to bring the commission’s proposals up for votes. While the panel may release some details of its conclusions before the November congressional elections, the full report won’t be made public until Dec. 1. Still, it gives lawmakers and the administration an answer to voter anxiety about efforts to revive the U.S. economy and while tackling shortfalls in the budget. Commission Members Cote, 57, a graduate of the University of New Hampshire in Durham, has been chairman and CEO of Honeywell since 2002. He was named by administration officials as one of four CEOs who Obama most admires, and he was one of 17 executives who dined with Obama and other administration officials at the White House Feb. 23. Rivlin, 78, a former director of the White House Office of Management and Budget, currently serves as a senior fellow in the Economic Studies Program at the Brookings Institution in Washington and is a visiting professor at Georgetown University. The founding director of the Congressional Budget Office, Rivlin graduated from Bryn Mawr College in Pennsylvania and received her Ph.D. in economics from Harvard University in Cambridge, Massachusetts. Stern, 59, is a graduate of the University of Pennsylvania in Philadelphia and has served as president of the 2.2 million- member SEIU since 1996. Fudge, 58, was CEO of Young & Rubicam Brands from 2003 to 2006 and served on the boards of the Gates Foundation, the Rockefeller Foundation and the Boys and Girls Clubs of America. She graduated from Simmons College in Boston and the Harvard Business School. Simpson and Bowles, in an interview with Bloomberg Television’s “Political Capital with Al Hunt ” last week, said the panel would consider a consumption or value-added tax as a way of reducing the federal debt, as well as changes to the Social Security retirement system. To contact the reporters on this story: Hans Nichols in Washington at Hnichols2@bloomberg.net ; Roger Runningen in Washington at rrunningen@bloomberg.net

Read the full article →

Turkey Frees Three Former Military Chiefs, Easing Tension Amid Coup Claims

February 26, 2010

By Steve Bryant and Mark Bentley Feb. 26 (Bloomberg) — Turkish prosecutors released the three most senior former military officers held for an alleged 2003 coup plot, easing concern that the secular army might move against the Islamist-leaning government. Ex-navy chief Ozden Ornek , former air force commander Ibrahim Firtina and ex-deputy chief of staff Ergin Saygun walked out of an Istanbul courthouse after three days in custody, the state-run Anatolia news agency said yesterday. The three may still be charged, CNN Turk television said, citing prosecutor Turan Colakkadi . The lira gained from a seven-month low. Earlier yesterday, President Abdullah Gul hosted Prime Minister Recep Tayyip Erdogan , 55, and the country’s military chief, General Ilker Basbug , 66, at the presidential palace in Ankara. Gul, 59, called for all sides to behave with “responsibility” after the encounter, and Erdogan told reporters that the meeting “went well.” The court jailed pending charges an additional 11 officers of lower ranks early today, bringing the number in custody to 31 in a case that widened a rift between Erdogan and the army. The military has ousted four governments since 1960 and sees itself as the defender of the separation between mosque and state laid down by modern Turkey’s founder, Mustafa Kemal Ataturk . ‘Good Sign’ The release of the former commanders “is a good sign that some kind of uneasy truce has been reached,” said Wolfango Piccoli , an analyst of political risk at Eurasia Group in London. “This is going to reduce tension.” The lira rose from the lowest level since July and was trading at 1.547 per dollar at 9:19 a.m. in Istanbul. It fell as much as 1.3 percent to 1.5645 yesterday. Stocks , which were heading for the biggest weekly drop since November 2008, were closed for trading and the shares futures index rose 1.5 percent. Citigroup Inc. downgraded the country’s shares to “neutral” after the three leaders met, saying Turkey risks “prolonged political turmoil,” in an e-mailed report. Opposition political parties have called for early elections to resolve the crisis. Police detained about 50 officers in nationwide raids based on allegations that senior officers planned to stage bomb attacks in 2003 in a bid to undermine Erdogan’s government. “I came here to correct the mistakes that were presented as truth about the armed forces,” Firtina said as he left the court building, according to Anatolia. “I think I did that sufficiently and now I’m back among you.” Wider Probe Firtina and Ornek have been cited in a wider two-year investigation that has seen scores of ex-officers, journalists and academics jailed and put on trial on charges of planning a coup. This week’s arrests followed a report in the Taraf newspaper on Jan. 21 that army officers drafted a plan seven years ago to stage bombings to undermine confidence in Erdogan’s government. Erdogan has chipped away at the powers of the second- largest military force in NATO since his Justice and Development Party was elected with a mandate to press for European Union membership. He ended army control over the National Security Council in 2003 and that same year ignored the generals’ objections to a United Nations plan for the reunification of Cyprus. The prime minister’s efforts to ease a ban on the Islamic headscarf led to an attempt to outlaw the Justice party in 2008 as a center of Islamist activism. It escaped closure by one vote in the 11-member constitutional court. Yesterday the party threatened two of its lawmakers with disciplinary action after their remarks on the row with the army drew the attention of prosecutors, CNN Turk reported. Earlier Friction Gul’s emergence as a mediator contrasted with his involvement in an earlier episode of friction with the military chiefs. Erdogan called an election in 2007 after the army criticized his choice of Gul as president because of his past ties to a political movement with an Islamist agenda. Justice won with 47 percent of the vote, the biggest share any Turkish party had received in almost 40 years, and promoted Gul to the presidency. Erdogan’s vote declined to 39 percent in local polls in March 2009. The economy shrank about 6 percent last year, according to government forecasts. Basbug said on Jan. 25 that allegations against the military were part of a campaign of psychological warfare designed to undermine public trust. He said the army is committed to democracy and that coups are “a thing of the past.” To contact the reporters on this story: Steve Bryant in Ankara at sbryant5@bloomberg.net ; Mark Bentley in Istanbul at mbentley3@bloomberg.net

Read the full article →

Colombia May Keep Interest Rate at 3.5% to Fuel Growth Amid Tame Inflation

February 26, 2010

By Helen Murphy Feb. 26 (Bloomberg) — Colombia’s central bank will probably keep its benchmark interest rate unchanged as policy makers judge the current level will help boost growth without risking inflationary pressure. The seven-member board , led by bank chief Jose Dario Uribe , will keep the interbank rate at 3.5 percent when it meets today, according to all 28 economists surveyed by Bloomberg. That would be the third straight pause after seven cuts in a year. Policy makers say the economy is beginning to recover from last year’s recession and consumer demand is improving as a record-low interest rate encourages Colombians to use credit to purchase big-ticket items such as cars and washing machines. An acceleration in inflation caused by dry weather from the El Nino weather effect — which reduces crop output — will be short- lived, Uribe has said. “The economy could do with an additional boost, but the bank isn’t too worried about inflation right now because the dry weather is transitory and it would be a mistake to throw in the towel on reactivating the economy,” said Alberto Bernal , an economist at Bulltick Capital in Miami. Policy makers estimate that the economy will expand 2 percent to 3 percent this year after little or no growth in 2009. Finance Minister Oscar Ivan Zuluaga , who sits on the central bank’s board, has said the government’s 55 trillion pesos ($28.3 billion) of infrastructure investment last year helped temper Colombia’s first recession in a decade. Rate, Growth Horizons Consumer prices rose 2 percent last year, the lowest rate in more than five decades, down from 7.67 percent in 2008, after the bank increased borrowing costs 16 times over 2 1/2 years. The board may not want to cut rates to stimulate the economy as policy makers anticipate a lower level would lead to a resurgence of inflation, said David Duarte , a Latin America economist at 4Cast Inc. in New York. The annual inflation rate may almost double by year-end from last year, according to a central bank survey. “If the speed of the recovery is slower than expected, it’s possible they won’t raise rates until 2011,” Duarte said. “The private sector economy remains anemic. It’s going to need at least another six months of low rates to make sure the recovery is well-rooted and sustainable.” Retail sales rose 2.7 percent in December, while industrial output climbed 2 percent. Tensions, Ties A diplomatic and trade spat between Colombia and Venezuela has led to a plunge in exports and prompted the central bank to consider the decline in trade revenue on the economy as it sets monetary policy, Uribe has said. Policy makers have also voiced concern that Venezuela’s deepening economic slump may undercut Colombia’s recovery. Venezuelan President Hugo Chavez , who devalued the bolivar in January, last year pledged to end imports from his Andean neighbor in response to an agreement to allow U.S. armed forces greater access to Colombian military bases. Exports to Venezuela may fall to $1.5 billion this year as its lingering recession and electricity crisis further suppress demand for Colombian goods, bank chief Uribe has said. That’s down from $6.1 billion in 2008, according to the national statistics agency. Colombia’s exports rose 7.6 percent in December from a year earlier to $3.2 billion. “Colombian manufacturers and exporters are now scrambling continuously to find new markets, and they’re beginning to find them,” Duarte said. Trade Partners, Power Chile, Peru and Central America are helping replace exports to Venezuela, Uribe has said. Colombian companies also are beginning to find domestic buyers for the surpluses created by the drop in trade with Venezuela, Duarte said. Colombia has offered to sell electricity to Venezuela. Chavez declared a national emergency in the electricity sector on Feb. 8. Water levels may fall below the level needed to run 6,300 megawatts worth of turbines if it doesn’t rain by June. “Chavez is going to have to eat his words and buy electricity from Colombia,” Bernal said. “If it doesn’t rain by June, it’s all over.” The peso fell 0.4 percent yesterday to 1942.67 per U.S. dollar. The currency has gained 5.2 percent against the dollar this year, the best performance among 26 emerging-market currencies tracked by Bloomberg. To contact the reporter on this story: Helen Murphy in Bogota at Hmurphy1@bloomberg.net ;

Read the full article →

European Economy Risks Decoupling From Global Recovery as Deficits Balloon

February 26, 2010

By Mark Deen Feb. 26 (Bloomberg) — Europe’s economy may be coming unstuck from the global recovery as governments to the south of the region struggle to reverse budget deficits and consumers in the north pull back spending. After the 16-nation euro economy almost stagnated in the fourth quarter, data this week showed the weakness reaching into 2010. Confidence among households and companies worsened unexpectedly, French consumer spending fell and bank loans to the private sector slid for a fifth month. At the same time, Standard & Poor’s said it may soon downgrade Greece again as the country grapples with the region’s largest budget shortfall. Signs of a flagging recovery risk extending the euro’s slide against the dollar. They are also prompting Citigroup Inc. to advise investors to favor German government bonds and UBS AG to recommend European stocks with links to the faster-growing U.S., such as Daimler AG . As they cut their growth forecasts, economists predict slower interest-rate increases from the European Central Bank, whose governing council meets next week. “Europe is where we see the biggest risk of a double dip at the global level,” said Julian Callow , chief European economist at Barclays Capital in London. “Europe has been lagging and we’ve continued to see better numbers in Asia and now the U.S.” The European Commission yesterday said the euro-area recovery may not gather momentum until the fourth quarter and maintained its forecast for 0.7 percent growth this year. Citigroup cut its 2010 growth prediction to 1.1 percent, while raising its projection for the U.S. to 3.2 percent. ECB Policy Having begun the year predicting the ECB would lift its benchmark interest rate from a record low of 1 percent in the second quarter and to 2 percent by the end of the year, economists at Bank of America Merrill Lynch now don’t expect any increase until December. Still, ECB policy makers meeting in Frankfurt on March 4 will take decisions on a further “gradual” phasing out of emergency measures introduced to fight the financial crisis, council member George Provopoulos said in an interview on Feb. 19. After already announcing the end of its 12- and 6-month loans, President Jean-Claude Trichet has indicated the bank may return to an auction procedure in some of its refinancing operations as a next step. Stocks Decline The outlook for the economy is unnerving investors and taking its toll on stocks. While the S&P 500 Index in the U.S. has risen 3.8 percent this year, Europe’s Dow Jones Stoxx 50 has dropped 9.5 percent, giving up almost half of its 2009 gain. The euro has fallen almost 6 percent against the dollar this year on speculation the U.S. will recover faster and concerns about Greece’s fiscal problems. That decline may continue, according to Chris Turner , head of foreign-exchange strategy at ING Financial Markets, who says the euro “will struggle” to return to $1.37 and is more likely to slip to $1.30. The currency was at $1.3499 late yesterday in London. Investors should favor German bonds over U.S. Treasuries because the ECB will lag behind the Federal Reserve in raising rates, Citigroup said on Feb. 23. At UBS, strategist Nick Nelson says that European companies making more than a quarter of their sales in the U.S. may benefit from the dollar’s strength and the U.S. rebound. “There are tentative signs that the U.S. economy may be pulling ahead from Europe,” Nelson said in a Feb. 23 report, which cited luxury carmaker Daimler and publisher Wolters Kluwer NV among potential winners. ‘Stalled’ The euro-area is also troubling policy makers abroad. Bank of England Governor Mervyn King said on Feb. 23 that indications the U.K.’s largest trading partner has “stalled” threatens U.K. exports. Alcatel-Lucent SA , the world’s biggest supplier of fixed- line phone networks, this month lowered its 2010 profit-margin targets. RWE AG , Germany’s second-largest utility, yesterday reduced its earnings growth forecast because of delays in developing power plants as well as oil and gas projects. “It will take several years for the European economy to return to the level seen in 2008,” RWE Chief Executive Officer Juergen Grossmann said. Rising borrowing costs on the back of Greece’s mounting fiscal problems may further undermine Europe’s economy. The impact of sliding sovereign bonds could be “broader, weighing further on the recovery” by pushing up financing costs, the commission said yesterday. Growth Brake The drive to shrink budget deficits in Greece, Spain, Portugal and elsewhere is another potential brake. Barclays’s Callow estimates that countries representing 20 percent of the euro region’s output will have a fiscal tightening of 2 percent of gross domestic product in 2010. “The sovereign debt crisis in Europe’s periphery reinforces drags on euro-area growth,” said Michael Saunders , an economist at Citigroup in London. Consumers will also keep retrenching as unemployment rises from December’s 11-year high after climbing slowly last year when government aid limited firings, said Gilles Moec , an economist at Deutsche Bank AG in London. Spending may also suffer as governments cut programs used to stoke consumer demand in 2009. “Now we’re getting the backlash,” said Moec, who predicts global and euro-zone growth of 4.1 percent and 1.1 percent, respectively, this year. “Domestic demand is feeling the lagged effects of the recession.” To contact the reporter on this story: Mark Deen in Paris at markdeen@bloomberg.net

Read the full article →

U.K. Emerges From Recession at Faster Pace Than Estimated, Boosting Brown

February 26, 2010

By Svenja O’Donnell Feb. 26 (Bloomberg) — Britain emerged from recession at a faster pace than previously estimated in the fourth quarter as services output jumped, providing a boost for Prime Minister Gordon Brown as he prepares for a general election within weeks. Gross domestic product rose 0.3 percent from the third quarter, compared with a previous calculation of 0.1 percent growth, the Office for National Statistics said today in London. The median forecast in a Bloomberg News survey of 27 economists was for a 0.2 percent increase. Brown is seeking to persuade voters his Labour government has the best policies to cement the recovery. The Conservatives’ poll lead has narrowed to as little as six percentage points as ministers argue that David Cameron ’s plan to cut spending this year risks plunging the economy into a “double-dip” recession. “Today’s figures should help to alleviate some of the gloom and uncertainty that descended on markets about U.K. economic prospects,” said Philip Shaw , chief economist at Investec Securities in London. “It will help Brown. We’ll see a slow and steady momentum building up in growth through 2010.” The pound was little changed at $1.5256 at 10:04 a.m. in London. Government bonds fell, with the yield on the 10-year benchmark rising 3 basis points to 4.06 percent. The two-year yield was little changed at 0.94 percent. The upward revision came as services growth was revised to 0.5 percent, the biggest gain since the first quarter of 2008, from a previous estimate of 0.1 percent, the statistics office said. Industrial production growth was revised to 0.4 percent from 0.1 percent, with manufacturing rising 0.8 percent instead of 0.4 percent. Consumer Spending Consumer spending rose 0.4 percent, the biggest increase since the first quarter of 2008, and government spending gained 1.2 percent. Fixed capital investment fell 3.1 percent on the quarter. Revisions to previous quarters meant that the economy shrank 6.2 percent since the first quarter of 2008, making the recession the deepest on record. The figures may ease concerns that the economy may struggle to maintain momentum in the first quarter after heavy snow disrupted business and a temporary cut in value-added tax expired on Dec. 31. Chancellor of the Exchequer Alistair Darling “has always said that the economy would return to growth by the turn of 2009 and today’s second estimate continues to bear that judgment out,” said a spokesman for the Treasury who declined to be named. “Withdrawing the support that has helped us get to this point would put the recovery at risk.” Deficit Pledge Darling has pledged to delay cutting the deficit until 2011, saying Conservative plans to start this year may wreck the recovery. At more than 12 percent of GDP, Britain’s budget deficit is on a par with that of Greece. While Brown has until June to hold the election, Labour Party documents point to a vote to coincide with local authority polls on May 6 — less than two weeks after the statistics office publishes its preliminary estimate of first-quarter GDP. Britain was the last Group of Seven nation to exit recession, and policy makers say the recovery is far from assured as credit strains persist. The Bank of England last week cut its forecast for growth this year to 1.4 percent from 2.2 percent and Governor Mervyn King left the door open to expanding its 200 billion-pound ($300 billion) asset-purchase program if needed. Bank of England policy maker David Miles said yesterday that “the strength of any prospective recovery is highly uncertain.” To contact the reporter on this story: Svenja O’Donnell in London at sodonnell@bloomberg.net .

Read the full article →

Two More UBS Clients Win Swiss Court Ruling Blocking Data Transfer to U.S.

February 26, 2010

By Joseph Heaven Feb. 26 (Bloomberg) — A Swiss court ordered tax officials to drop two more cases involving UBS AG account holders, adding urgency to the government’s effort to save a data-sharing agreement with the U.S. through the political process. The court, in a decision published today, told Switzerland’s tax authority to comply with an earlier ruling that blocked it from sending information on as many as 26 UBS customers to the U.S. The court said Switzerland could only lift bank secrecy rules when there is evidence of tax fraud. “No grounds have been asserted or are apparent, as to why the case before us” should “differ from the one decided,” the five judges wrote. The ruling increases pressure on the Swiss to find a way to salvage the agreement to hand over data on as many as 4,450 UBS account holders to the U.S. as part of a crackdown on tax evasion. Ministers said this week they will ask the parliament to approve the U.S. settlement to get around the court rulings. The two UBS clients involved in today’s decision are among 26 covered by last month’s ruling. The court said that the account holders’ conduct, failing to complete tax forms or declare income, was merely tax evasion rather than tax fraud. Under Swiss law, tax fraud is a criminal offense, which allows the government to lift bank secrecy laws. Evasion is a civil matter. The court last month ruled the U.S. deal isn’t fully enforceable because it doesn’t alter the terms of an existing international treaty. With parliamentary approval, the court won’t be able to “regard the UBS agreement as merely a mutual agreement” as it will have the same legal weight as a treaty, the government said this week. Approval would allow the country to “bring a final resolution to its legal and sovereignty dispute with the USA.” Today’s Federal Administrative Court cases are: A. vs. Eidgenoessiche Steuerverwaltung (ESTV), A-7929/2009. A. vs. Eidgenoessiche Steuerverwaltung (ESTV), A-7814/2009. To contact the reporter on this story: Joseph Heaven in Zurich at jheaven1@bloomberg.net

Read the full article →

Lloyds Has Wider-Than-Estimated Loss as HBOS Takeover Increases Bad Loans

February 26, 2010

By Andrew MacAskill and Jon Menon Feb. 26 (Bloomberg) — Lloyds Banking Group Plc , Britain’s biggest mortgage lender, posted a wider-than-expected full-year loss as loan losses rose “significantly” in 2009 on the bank’s takeover of HBOS Plc . Lloyds’s pretax loss narrowed to 6.3 billion pounds ($9.6 billion) from 6.7 billion pounds in 2008, the London-based bank said in a statement today. That missed the 6.1 billion-pound median loss estimated by 22 analysts surveyed by Bloomberg. Lloyds fell in London trading. Bad loan losses were “significantly higher” at 24 billion pounds, the lender said today. They declined 21 percent in the second half compared with the first six months. “The HBOS legacy still weighs heavily on Lloyds, although these numbers do show some signs of encouragement,” Richard Hunter , Head of UK Equities at Hargreaves Lansdown Stockbrokers, said in a note to clients. “Lloyds remains as something of a U.K. recovery play and therefore hostage to the fortunes of the broader economic picture.” Lloyds completed the U.K.’s biggest rights offering last year to raise 13.5 billion pounds, enabling it to shun a government program capping losses on toxic assets. The bank, which is 41 percent owned by the taxpayer, has taken about 20.5 billion pounds in taxpayer-funded support since buying HBOS in January 2009, a deal that left the bank saddled with bad loans. “We are seeing commercial property impairments and mortgage coming down quite nicely,” Chief Executive Officer Eric Daniels , 58, said in an interview. “Margin, costs and impairments are all heading in the right direction and that gives a strong trajectory.” Loan Impairments Lloyds lost 2.7 percent to 53.40 pence at 9:32 a.m. in London trading for a market value of 35.8 billion pounds. The FTSE 350 Index of U.K. banks gained 1.1 percent. Banking net interest margin improved to 1.83 per cent in the second half of the year, compared to 1.72 per cent in the first half. The bank said it saw “further significant reductions” in impairments in 2010 and beyond, “assuming current economic expectations.” Economic growth in the U.K. will be slow and below trend, the bank said. Lloyds said it had focused on the loan portfolio from HBOS Plc , which it took over in January 2009, with “the greatest attention paid to the over-concentration in real estate related lending and those portfolios that fall outside the Lloyds TSB risk appetite.” That led the bank to “prudent and material impairment charges especially in the first half of the year.” Falling Mortgage Share Lloyds is losing market share of new U.K. mortgages after reducing loans. Gross new mortgage lending in 2009 dropped to 35 billion pounds from 78 billion pounds in 2008. That reduced Lloyds’s share of gross new lending to 24 per cent compared with 31 percent in 2008. Overall, mortgage balances outstanding at 31 December 2009 totaled 345.9 billion pounds, a drop of 3.7 billion pounds in the year. Banco Santander SA , Spain’s biggest bank, increased its gross U.K. market share to 18.6 percent in 2009 from 13.9 per cent a year earlier, the lender said when it announced full-year results this month. Royal Bank of Scotland Group Plc , Britain’s biggest government-owned lender, yesterday reported a narrower-than- expected full-year net loss buoyed by profit at its investment bank and slowing impairments. Barclays Plc, the U.K.’s second biggest bank, more than doubled profit to 7.5 billion pounds the bank said last week. HSBC Holdings Plc reports results March 1. Government Funding At the end of last year, Lloyds said it had gained 157 billion pounds of funding support from the government and central bank. A reduction in the bank’s balance sheet “will avoid the necessity to refinance much of this funding,” Lloyds said. The bank announced about 15,000 job cuts during the year, it said. Daniels is forgoing his 2.3 million pound bonus for 2009 following the lead of executives at Barclays and RBS who are waiving their right to a bonus. The government has pressed banks to cut or defer bonuses amid taxpayer anger over payouts. “I took a very personal decision to forgo bonuses because I thought it was really clouding the view of what Lloyds is accomplishing,” Daniels said. “So I thought I would remove that from the table.” Pretax profit at the bank’s retail unit fell by 1.57 billion pounds to 975 million, reflecting lower income and higher impairments, the bank said. Group net interest income decreased by 15 percent to 12.7 billion. To contact the reporters on this story: Andrew MacAskill in London at amacaskill@bloomberg.net ; Jon Menon in London at jmenon1@bloomberg.net

Read the full article →

Emerging Markets Lead Stocks Higher as Metals Rally on Economic Expansion

February 26, 2010

By Gavin Serkin Feb. 26 (Bloomberg) — Stocks rose around the world, driving the MSCI Emerging Markets Index higher for the first time in four days, on evidence of sustained economic expansion. Zinc led a rally in metals. The MSCI World Index of 23 developed nations’ stocks added 0.5 percent at 10:20 a.m. in London, while the emerging-markets gauge advanced 0.8 percent and futures on the Standard & Poor’s 500 Index climbed 0.3 percent. Zinc gained 3 percent, its first increase in five days. Indian Finance Minister Pranab Mukherjee predicted that the economy may grow at a 10 percent pace in the “not-too-distant future,” helping restore investor confidence that was rattled this week by warnings about Greece’s rising deficit. Britain emerged from recession at a faster pace than previously estimated in the fourth quarter, the government said. A U.S. report today may confirm that the world’s biggest economy expanded at a 5.7 percent clip in the fourth quarter. “Emerging markets are a strong, structural story,” said Michael Ganske , head of emerging-market research at Commerzbank AG in London. “Today’s movement is a reaction to the market being quite depressed over the past couple of days. We are facing a period of higher volatility rather than a long-term, sustained rally.” European Rally Europe’s Dow Jones Stoxx 600 Index climbed 0.7 percent as all 19 industry groups advanced. Cie. de Saint-Gobain SA, Europe’s biggest supplier of building materials, surged 5.7 percent in Paris after reporting better-than-estimated profit. Rio Tinto Group led gains in mining companies, rallying 2 percent in London. The MSCI Asia Pacific Index advanced 0.6 percent, capping its biggest weekly gain in six. Woolworths Ltd., Australia’s biggest retailer, climbed 5.5 percent in Sydney as it announced a share buyback. India’s Sensitive Index advanced 2.5 percent, the most in two months, and South Korea’s Kospi Index snapped a two-day slide. The gain in U.S. futures indicated the S&P 500 may rebound after yesterday’s 0.2 percent decline. The GDP report may show that the expansion, unchanged from a previous government estimate, was the fastest in six years. The Commerce Department report is due at 8:30 a.m. in Washington. Sales of previously owned homes probably rose in January on an extension of a government tax credit, a separate report from the National Association of Realtors due at 10 a.m. may show. Turkey, Kazakhstan Emerging-market stock gains were paced by a 1.5 percent advance in Kazakhstan’s KASE Index. Turkey’s ISE 100 Index rose for the first time this week, climbing 0.6 percent, while yields on benchmark two-year bonds fell 5 basis points to 8.99 percent and the lira strengthened 0.2 percent against the dollar after prosecutors released the three most senior army commanders held in a probe of an alleged coup, easing political tensions. South Africa’s rand strengthened the most in almost 11 weeks, rallying as much as 2.1 percent against the dollar, before paring the advance to 1 percent. The dollar fell for a third day against the euro, weakening 0.4 percent to $1.3597. The U.S. currency slipped against 14 of its 16 most actively traded counterparts. The yen dropped against all 16, falling 0.6 percent to 121.41 per euro. Copper for delivery in three months rose 1.8 percent to $7,125 a metric ton on the London Metal Exchange while zinc advanced $62.50 to $2,178.50 a ton. Gold for immediate delivery added 0.6 percent to $1,112.25 an ounce and palladium jumped 2 percent to $430 an ounce. Oil for April delivery rose as much as 0.6 percent to $78.67 in electronic trading on the New York Mercantile Exchange, and the contract is poised for a 7.8 percent gain for the month. JPMorgan Chase & Co. raised its 2010 forecast for oil, predicting crude will increase to $83.50 a barrel as demand improves and floating stockpiles decline. Its previous forecast was $78.25. To contact the reporter for this story: Gavin Serkin at gserkin@bloomberg.net

Read the full article →

Video: Raines Says Democrats May Pass Obama’s Health Bill Alone

February 26, 2010

Feb. 26 (Bloomberg) — John Raines, deputy director of political risk at Exclusive Analysis Ltd., talks about President Barack Obama’s health-care plan. Raines also discusses senators’ concern about the budget deficit ahead of the November elections. He speaks with Bloomberg’s Andrea Catherwood in London.

Read the full article →

Video: Raymond Blanc Recalls First Experiences of British Food

February 26, 2010

Feb. 26 (Bloomberg) — French Chef Raymond Blanc talks with Bloomberg’s Richard Vines about the changes to the British food scene since he arrived in the U.K. in 1972. They spoke at his Oxfordshire restaurant Le Manoir aux Quat’Saisons on Feb. 16. Andrea Catherwood also speaks.

Read the full article →

Indices start the final trading day on Green

February 26, 2010

Indices start the final trading day on Green

Read the full article →

Manufacturing sectors continue to blossom, while housing sector slumps unexpectedly

February 26, 2010

Manufacturing sectors continue to blossom, while housing sector slumps unexpectedly

Read the full article →

The dollar trims its losses after the U.S. GDP data

February 26, 2010

The dollar trims its losses after the U.S. GDP data

Read the full article →

The U.S economy growth rate beats market expectations

February 26, 2010

The U.S economy growth rate beats market expectations

Read the full article →

Gap Inc Results…

February 26, 2010

Gap Inc Results…

Read the full article →

AIG Financial Results

February 26, 2010

AIG Financial Results

Read the full article →

STOXX positive by midday powered by optimism

February 26, 2010

STOXX positive by midday powered by optimism

Read the full article →

SMI trading green by midday driven by Healthcare    

February 26, 2010

SMI trading green by midday driven by Healthcare

Read the full article →

Investors awaits the fourth quarter GDP report from the U.S economy

February 26, 2010

Investors awaits the fourth quarter GDP report from the U.S economy

Read the full article →

A sense of optimism in back in the market powering the correction

February 26, 2010

A sense of optimism in back in the market powering the correction

Read the full article →

U.K.’s Fourth-Quarter GDP Revised to the Upside

February 26, 2010

U.K.’s Fourth-Quarter GDP Revised to the Upside

Read the full article →

Ford to invest $155m in Cleveland engine plant

February 26, 2010

Ford to invest $155m in Cleveland engine plant

Read the full article →

Japan’s industrial output rises 2.5% in January

February 26, 2010

Japan’s industrial output rises 2.5% in January

Read the full article →

Top Japanese automakers to recall cars

February 26, 2010

Top Japanese automakers to recall cars

Read the full article →

Bayer reports profit in the fourth quarter

February 26, 2010

Bayer

Read the full article →

India on track for 9% economic growth

February 26, 2010

India on track for 9% economic growth

Read the full article →

Lloyds Banking posts a loss of 6.3 billion pounds in 2009

February 26, 2010

Lloyds Banking posts a loss of 6.3 billion pounds in 2009

Read the full article →

India’s rising food inflation alarms growth story

February 26, 2010

India’s rising food inflation alarms growth story

Read the full article →

Slight Correction then back to the downside  

February 26, 2010

Slight Correction then back to the downside

Read the full article →

India’s economy to grow over 8%

February 26, 2010

India’s economy to grow over 8%

Read the full article →

Europe Ahead: The abysmal gloomy weak comes to an end with an ironic upside revision to UK GDP amid Greek downgrade woes

February 26, 2010

Europe Ahead: The abysmal gloomy weak comes to an end with an ironic upside revision to UK GDP amid Greek downgrade woes

Read the full article →

Deflation threatens the Japanese economy

February 26, 2010

Deflation threatens the Japanese economy

Read the full article →

House Lending Inquiry: Lawmakers Probe Banks’ Lending To Small Businesses, Commercial Real Estate

February 26, 2010

WASHINGTON — House lawmakers are examining a crucial element of the economic recovery: banks’ lending to small businesses and for commercial real estate. Small businesses are seen as a linchpin for the recovery, with the potential to expand and soak up some of the high unemployment that has ravaged the country and preoccupied Congress. At the same time losses are mounting on loans for commercial real estate, such as stores and office complexes, as buildings sit vacant and builders default. A cascade of hundreds of billions in losses on the loans could deepen the hurt for regional banks and quicken the pace of bank failures – which reached 140 last year. Two House committees, Small Business and Financial Services, are hearing Friday from federal regulators, business owners, bankers and developers to gauge the condition of lending to small business and commercial real estate. At the gates stand the banks. In many cases their thinning capital reserves are one of the key factors limiting credit and clogging the pump of economic growth, Obama administration officials maintain. U.S. bank lending last year posted the steepest drop since World War II, with the volume of loans falling by $587.3 billion, or 7.5 percent, from 2008, the government reported Tuesday. Yet many in the banking industry say lending isn’t hampered by a lack of capital, with even well-capitalized banks having trouble finding creditworthy borrowers. And small businesses may be reluctant to borrow in the toughest economic climate since the Great Depression. The administration has proposed using $30 billion of leftover money from the $700 billion federal bailout program to help community banks increase lending to small businesses. Congress must approve the new small-business fund, which would be open to banks with $10 billion or less in assets. But many lawmakers want the money to be dispensed not by banks but directly by the federal Small Business Administration, which would decide which businesses should get loans. The House passed legislation a year ago and again last October to allow for that. “The problem is that, to date, most efforts have focused on helping banks, assuming that the benefits would eventually trickle down to entrepreneurs,” Rep. Nydia Velazquez, D-N.Y., who heads the Small Business Committee, said Thursday. “That hasn’t happened and it’s unlikely that simply writing another check to banks will get small businesses the financing they need to create jobs.” She said the Small Business Administration already does direct lending through its disaster loan program, “which means the agency has the expertise, experience and people to fill the current gaps that banks seem unwilling or unable to fill.” One Florida entrepreneur has taken the case to President Barack Obama. Steve Gordon stood up at Obama’s town hall meeting in Tampa, Fla., last month, saying he was exasperated because he’s raring to create 500 jobs but can’t get a loan from the skittish banks. Where’s the fairness, he asked, when the government loaned billions directly to Wall Street banks and automakers but not to small businesses? “The bottom line here is that businesses can’t stabilize and we can’t expand without capital,” Gordon said in a telephone interview Thursday. “The banks aren’t getting out capital to the companies that need it. … They’ve got their hands full with foreclosures,” he said. Gordon, whose company Instant-Off Inc. makes valves that automatically shut off faucets to save water, is scheduled to testify at Friday’s hearing along with Margot Dorfman, CEO of the U.S. Women’s Chamber of Commerce, and other business owners. Sheila Bair, the chairman of the Federal Deposit Insurance Corp., is among the regulators slated to appear, as well as SBA Administrator Karen Mills, Assistant Treasury Secretary Herbert Allison and Federal Reserve Gov. Elizabeth Duke. The bankers include executives of Wells Fargo & Co. and Citizens Republic Bancorp Inc.

Read the full article →

Video: Coulton Reaffirms Fitch’s `Negative’ Outlook on Greece: Video

February 26, 2010

Feb. 26 (Bloomberg) — Brian Coulton, an analyst at Fitch Ratings, talks with Bloomberg’s Mike McKee about Greece’s credit rating and outlook. Coulton speaks from London. (Source: Bloomberg)

Read the full article →

Video: UBS Boosts Bonuses in Asia; Ford Overhauling Factory: Video

February 26, 2010

Feb. 26 (Bloomberg) — Bloomberg’s Vonnie Quinn reports on the latest breaking business news and top stories in today’s Business Briefs. (Source: Bloomberg)

Read the full article →

Video: Rathbone’s Stick Sees Risk of Further Lloyds Loan Losses

February 26, 2010

Feb. 26 (Bloomberg) — Carl Stick, a director at Rathbone Unit Trust Management Ltd., talks with Bloomberg’s Poppy Trowbridge about Lloyds Banking Group Plc’s full-year loss.

Read the full article →

Video: Mentel Says Octopus Buying U.S. Stocks `More Broadly’

February 26, 2010

Feb. 26 (Bloomberg) — Lothar Mentel, chief investment officer at Octopus Investments Ltd., talks about his investment strategy for U.S. stocks and Greek bonds. Mentel speaks with Bloomberg’s Rishaad Salamat in London.

Read the full article →

Video: Low Medal Haul May Crimp Canadian Olympic Funding: Video

February 26, 2010

Feb. 26 (Bloomberg) — Bloomberg’s Michele Steele reports on Canada’s medal haul at the 2010 Vancouver Winter Olympics and the outlook for government funding of the country’s elite athletes. (Source: Bloomberg)

Read the full article →

Video: Kerslake Sees Insurers Investing in U.K. Rental Homes

February 26, 2010

Feb. 26 (Bloomberg) — Bob Kerslake, chief executive officer of Britain’s Homes and Communities Agency, talks about the prospects for insurers and pension funds that invest in the U.K. rental home market. Kerslake also discusses how the lack of housing supply will drive growth in rentals over the next few years. He speaks with Bloomberg’s Andrea Catherwood.

Read the full article →

Video: Dichtl Says Lloyds Is in an `Ongoing Repair Process’

February 26, 2010

Feb. 26 (Bloomberg) — Otto Dichtl, head of financials at Knight Libertas, speaks about Lloyds Banking Group Plc’s full-year loss. He talks with Bloomberg’s Maryam Nemazee and Rishaad Salamat in London.

Read the full article →

Video: Portsmouth Set to Enter Administration as No Buyer Found

February 26, 2010

Feb. 26 (Bloomberg) — Bloomberg’s Ryan Chilcote reports on the debt at English Premier League soccer club Portsmouth, which is expected to enter administration today. Bloomberg’s Tariq Panja and Rishaad Salamat also speak.

Read the full article →

← Previous Entries

Next Entries →