Posts Tagged ‘financial

08
Mar

The Female Factor: Awareness Rises, but Women Still Lag in Pay

PARIS — Companies in the United States, Spain, Canada and Finland lead the world in employing the largest numbers of women from entry level to senior management, according to a report set to be published Monday by the World Economic Forum. Yet the report also found that, despite increasing awareness of gender disparities in the workplace, women at many of the world’s top companies continued to lag behind their male peers in many areas, including pay and opportunities for professional advancement.

Moreover, many of these companies have yet to implement policies to address these gaps, despite pressure from many of their governments to do so.

The forum, based in Switzerland, surveyed 600 heads of human resources offices at the largest employers in 20 countries representing 16 different industries.

The poll assessed companies according to a range of criteria, including rates of female representation, whether the companies measured or set targets for gender balance in pay or promotion, and whether they offered benefits, like paid family leave, to promote work-life balance for their employees.

The findings, which were timed to coincide with the 100th anniversary of International Women’s Day, follow the announcement Friday by the European Union of an initiative aimed at significantly narrowing the union’s average 18 percent gender wage gap, which has changed little in the past 15 years.

A study by the 27-member union last year estimated that closing the wage gap could lead to a potential increase of 15 percent to 45 percent in gross domestic product.

A 2009 report by the International Labor Organization found an average 20 percent difference in pay for men and women employed full time in the Group of 20 largest developed and developing economies. Yet the World Economic Forum’s report found that 72 percent of the companies in its survey had no systems to track salary differences by gender.

In addition, 60 percent of the companies said they had no affirmative action policies to promote women within their hierarchies and did not measure women’s participation in their work forces.

Companies in India had the lowest percentage of female employees, 23 percent, just below Japan, with 24 percent, the forum’s report found.

Turkey, Austria and Italy rounded out the bottom five, with women representing just 26 percent, 29 percent and 30 percent of their staffs, respectively instant payday loans.

As its focus was on companies, the forum’s survey did not assess the status of women working in the public sector or in education, areas where female representation is traditionally high and where policies to promote gender balance are often institutionalized by law.

Women remained in the minority of senior corporate managers, representing just 5 percent of the chief executives of the 600 companies surveyed. Finnish companies in the sample had the largest proportion of female chief executives, with 13 percent, followed closely by Norway and Turkey with 12 percent and Italy and Brazil with 11 percent.

The high percentage of female chief executives at Turkish companies, despite having relatively low levels of female employment, was due to the fact that many of the biggest companies were controlled by families where women were at the helm, said Saadia Zahidi, co-author of the report and head of the forum’s Women Leaders and Gender Parity Program. In Italy, which reported similarly large numbers of women at the top, the companies surveyed were mainly large, multinational corporations.

In both countries, Ms. Zahidi said, “there is a real dearth of women elsewhere in the corporate hierarchy.”

The forum’s findings also follow a global study of 4,500 business school graduates published last month by Catalyst, a U.S.-based organization that advocates for women in the workplace.

The Catalyst study found that, even in this high-potential group, women consistently lagged behind men in advancement and compensation from their very first professional job. The differences held even in comparing men and women of equal levels of work experience and professional aspiration and in discounting for whether or not they had children.

Herminia Ibarra, a professor of leadership and organizational behavior at Insead, an international business school, and a co-author of the forum’s report, said of the findings, “Study after study shows that, in most countries and industries, women enter the workplace pipeline in representative numbers. Then, something fails to happen.”

The Female Factor: Awareness Rises, but Women Still Lag in Pay

28
Feb

James River Coal 4th-quarter loss narrows

RICHMOND, Va. – Coal mining company James River Coal Co. said Friday that its fourth-quarter loss narrowed, but the company said its results were hurt by lower rates of production at its mines.

The company also put out 2010 guidance that came up short of analyst expectations.

James River Coal said it lost $3.2 million, or 12 cents per share, compared to a loss of $33.6 million, or $1.26 per share, in the year-earlier quarter.

The company sold $149.5 million worth of coal during the quarter, up from $140.8 million in the 2008 fourth quarter. But company executives said that they were forced to reduce production because of soft coal markets business cards.

Analysts surveyed by Thomson Reuters expected earnings of 44 cents per share on sales of $175.4 million.

For 2010, the company projects earnings of $1.70 to $2.25. That is below the analyst consensus view of $2.93 per share.

James River Coal earned $51 million, or $1.85 per share, for all of 2009.

Shares of the company fell $1.09, or 6.4 percent, to close at $15.91.

James River Coal 4th-quarter loss narrows

26
Feb

A.I.G. Reports a Loss and Increases Its Reserves

The American International Group, the insurance giant, said Friday that it lost about $11 billion last year, and cited a rebound in annuities sold by its renamed life insurance companies as a bright spot.

The insurer’s year-end result was a small fraction of the record-breaking loss of $61.7 billion that it reported for 2008, when its large derivatives portfolio blew up, leading to a government bailout. Most of the 2009 loss came from a fourth-quarter charge taken to reflect that its bailout had been restructured — a one-time charge that A.I.G. has been warning about for months. The charge was not connected with the company’s core insurance operations.

But a big part of the loss was directly related to its insurance activity — A.I.G. increased its reserves on the advice of its outside actuaries. The move seemed to vindicate a study by the Sanford C. Bernstein research firm last November, which found a big shortfall in A.I.G.’s reserves for its property and casualty businesses. Those businesses have been renamed Chartis and are expected to be A.I.G.’s backbone.

Insurance companies set aside reserves to pay claims that they anticipate, and when they have to strengthen inadequate reserves, they take money from earnings. The Bernstein analyst, Todd R. Bault, had predicted that A.I.G. would have to “take some kind of a reserve charge” before it could offer Chartis’s shares to investors, as part of the company’s plans to restructure and pay back its government bailout.

For the fourth quarter alone, A.I.G. lost $8.87 billion, or $65.51 a share. That compared with a loss of $458.99 a share in the period a year ago. Analysts surveyed by Thomson Reuters forecast a loss of $3.94 a share.

A.I.G. said that $2.7 billion of its loss, on a pretax basis, came from increasing its reserves. Much of the increase took place in the fourth quarter, after an annual study showed a deficit in the amounts needed to pay workers’ compensation and other commercial claims that are gradually coming due on policies sold in 2002 and earlier.

Mr. Bault had reported that A.I.G.’s reserves seemed inadequate for its workers’ compensation and other types of insurance where claims take a long time to develop. But he said the deficit appeared to be much larger, estimating it at $11.9 billion. A.I.G. said the increase in reserves left Chartis with a surplus of $27 billion, 4 percent more than its surplus in 2008.

The chief executive, Robert Benmosche, said in a statement: “Our team has made great progress during the year in executing our strategic restructuring plan.”

In addition to strengthening the insurance companies, he cited the progress made in winding down A.I.G.’s derivatives business, and “positioning certain businesses for sale.”

A.I.G. has announced that it will sell shares in its biggest international life insurance company, the American International Assurance Company Ltd online pay day loans., on the Hong Kong stock exchange sometime this year. It has also been negotiating the sale of another large international life insurance company, known as Alico, to MetLife. The talks have proceeded slowly because of questions about a possible tax liability and who would pay it.

The first $25 billion in proceeds from those two transactions are to go to the Federal Reserve Bank of New York, to pay back part of the cost of rescuing A.I.G.

Already, A.I.G. had replaced $25 billion of rescue debt to the New York Fed with $25 billion of equity, an investment which will pay off when the sales of the two foreign life insurers go through. The debt-for-equity swap lightened A.I.G.’s debt burden, averting a credit downgrade that loomed in the first quarter of 2009, when the company announced its disastrous 2008 results.

The company said $5.2 billion of its year-end pre-tax loss was the result of eliminating the $25 billion of debt to the Fed. It has been carrying the lending commitment as an asset on its balance sheet, but was able to speed up the amortization of the so-called commitment asset, leading to the $5.2 billion pre-tax charge.

In addition, A.I.G. paid the New York Fed $5.2 billion of interest on its rescue loans over the course of 2009.

Another big factor in A.I.G.’s losses for 2009 was the pending sale of yet another foreign life insurance company, the Nan Shan Life Insurance Company, of Taiwan. Although the sale has not yet closed, A.I.G. said it had recognized a $2.8 billion pretax loss on the sale in the fourth quarter.

In his statement, Mr. Benmosche said his team was “increasingly confident in how we see the mix of A.I.G.’s businesses over the long term.”

He said the “nucleus” would consist not only of Chartis but of “a strong U.S. life and annuity operation and several other businesses,” which he did not identify. In the months immediately after A.I.G.’s rescue, its interim chief executive, Edward Liddy, had spoken of selling the company’s domestic life insurance companies.

Since then, the life insurance companies have been renamed and at least some of them have emerged as significant sources of cash for A.I.G. Mr. Benmosche cited in particular a subsidiary once called A.I.G. Annuity, which last year reverted to the name it used before A.I.G. acquired it, Western National.

Under the new name, Western National has reclaimed its former position as the largest seller of single-premium fixed annuities in banks. Some banks had suspended the sales immediately after the bailout, but in the second half of 2009 the sales were resumed. Demand was strong because the annuities, which are not insured by the F.D.I.C., have offered customers more interest than similar bank deposits.

A.I.G. Reports a Loss and Increases Its Reserves

13
Feb

Euro Hovers Near Nine-Month Lows

HONG KONG — European leaders’ declaration of support for Greece may have helped ease global worries of a debt default, but it did little to lift the euro, which hovered around nine month lows against the dollar on Friday.

Any gains in the currency shared by 16 European countries were undermined by lingering concerns about the fragile finances of several nations in the euro zone, analysts said.

The euro has sagged sharply against the dollar and the yen since January, as worries about a potential debt default by Greece began to surface.

At the start of this year, a euro bought around $1.45 and 133 yen; by midday in Asia on Friday, it bought only $1.37, and 122.5 yen.

Friday’s levels were a touch lower than Thursday’s — despite the European support for Greece — meaning the single currency remains around its weakest level against the U.S. currency since May last year. The last time the euro was at such levels against the yen was a year ago.

Stock markets, too, took only limited comfort from Thursday’s news out of Brussels, which was little more than a statement from European leaders to aid Greece during its debt crisis, if needed. Leaders offered no details on what that support would entail.

The main stock market indexes in the Asia-Pacific region were mixed, with muted rises in Japan, Hong Kong and Australia, and equally limited falls in South Korea.

The Nikkei 225 index in Tokyo was 0.9 percent higher by early afternoon. The Hang Seng in Hong Kong and the Straits Times index in Singapore gained about 0.3 percent, and the benchmark index in Australia edged up 0.1 percent In South Korea, the Kospi index slipped 0 free credit scores.3 percent by around noon.

On Thursday, the Dow Jones industrial average gained 105.81 points, or 1.05 percent, to close the day at 10,144.19. European markets ended Thursday mixed.

“Yesterday’s news on Greece did not actually provide much more than had been widely expected. The market was hoping for more specifics, so the reaction is now quite muted,” said Dariusz Kowalczyk, chief investment strategist at SJS Markets in Hong Kong.

Activity across much of the region was also dampened ahead of the Lunar New Year holiday, which will shut much of the region — notably China, Hong Kong, Singapore and Taiwan — on Monday.

“Risk appetite should gradually resume — unless we get massive violence in the streets of Greece,” Mr. Kowalczyk added, referring to worries that the Greek government’s efforts to reduce its deficit will be constrained by mass popular opposition.

Striking civil servants brought public services to a halt across Greece on Wednesday, in a largely peaceful one-day protest against the tough austerity measures that officials have said are necessary to stave off a mounting financial crisis. A much broader strike is planned for Feb. 24. “Feb. 24 will be a day to watch,” Mr. Kowalczyk said.

Better-than-expected news Thursday from the closely-watched U.S. jobs market failed to set spark strong gains. The number of Americans filing first-time unemployment claims fell by more than expected last week.

Euro Hovers Near Nine-Month Lows

12
Feb

Michelin posts 71 pct drop in 2009 profit

PARIS – French tire maker Michelin on Friday reported a 71 percent drop in earnings last year as auto markets slumped, and said it is “vigilant” for the year ahead.

Michelin posted a net profit of euro104 million ($143 million), less than the euro357 million earned last year. Revenues declined 9.8 percent to euro14.8 billion.

Like auto maker Renault SA, Michelin, which is based in Clermont-Ferrand, France, achieved its aim of generating positive free cash flow at the year end to help it ride out the crisis.

Michelin had a positive free cash flow — the funds a company is able to generate after maintaining or expanding assets — of euro1.4 billion compared to a negative euro359 million in 2008 after it ran down inventories and reduced capital expenditure.

In 2010, Michelin is again targeting positive free cash flow.

Chief Executive Officer Michel Rollier said Michelin has “improved its major financial metrics, the foundations of its future growth” as it responded to a “historic decline in tire demand, especially in mature economies paydayloan.”

Looking ahead, he said Michelin is exercising “extreme vigilance.”

Michelin said markets for car and light truck tires fell sharply in the first half as carmakers slashed production and cut inventories, but lifted in the second half thanks to government scrappage schemes.

The exception was China, were demand surged 65 percent, making the country the largest market ahead of the United States for the first time.

Demand for truck tires remained low, the company said.

Michelin posts 71 pct drop in 2009 profit

Hot News: Rates on 30-year mortgages average under 5 pct

09
Feb

Feds Bullard: May see asset sales late 2010

WASHINGTON (Reuters) – The Federal Reserve could sell some assets later this year in an effort to whittle down its bloated balance sheet to avoid inflation, a senior Federal Reserve official said on Monday.

The Fed's purchases last year of longer-term Treasuries and other debt, undertaken to help revive the economy, were financed by adding cash to the financial system. But leaving large amounts of cash sloshing around as the economy strengthens risks fueling inflation.

"Maybe you get in the second half of 2010 or something like that, if things are going pretty well, maybe then you'd sell a little bit at that point and you'd try to see how the market reacts," St. Louis Federal Reserve Bank President James Bullard told Reuters in an interview.

The U.S. central bank should try to get its balance sheet, which has ballooned by more than $1 trillion, down to a normal size before the next recession strikes to ensure it has the ammunition it needs to counter a downturn, Bullard said.

After the Fed slashed interest rates to near zero in late 2008, it launched a buying spree that also included mortgage-backed securities and debt issued by housing finance agencies to provide further support for the economy.

SALES BEFORE RATE HIKES

Bullard, who is a voting member on the Fed's policy-setting panel this year, said his preference would be to begin selling some assets before raising interest rates, although he said not all Fed policymakers were likely to see it his way.

He said the idea would be not only to get the balance sheet back to a pre-crisis size, but to return it to holdings of mostly U.S. Treasury securities.

The St. Louis Fed chief has long been an advocate of more actively managing the Fed's assets — either by selling them or by leaving open the option of buying more if the economy stumbles anew. The consensus view at the Fed favors shuttering the purchase programs as planned and relying on rate hikes initially to tighten financial conditions.

However, with an economic recovery seemingly on track, Bullard made clear officials had begun to debate how best to normalize the Fed's balance sheet. Fed Chairman Ben Bernanke could shed more light on the central bank's plans in congressional testimony on Wednesday.

Bullard said markets would be disrupted if they came to believe the Fed was planning large-scale sales of mortgage-backed securities. However, he said the idea of gradual sales as a strategy is under discussion.

"Selling has more sympathy than you might think free credit report online. It's more a question of timing and speed," Bullard said.

"You'd kind of want the situation to be back to normal in some kind of time frame before the next storm comes for the economy so that at that point you'd have a fresh set of tools and you can react at that point," he said. "There will be a lot more discussion going forward about how exactly to do this."

INFLATION EXPECTATIONS SEEN RISING

The Fed's unprecedented policy actions helped lift the U.S. economy out of its deepest downturn since the 1930s. After contracting for four straight quarters, the economy grew at a 2.2 percent annual rate in the third quarter of last year and a 5.7 percent pace in the final three months of the year.

Bullard said the economy should grow at an annual rate above 3 percent in the first half of this year, adding that unemployment may have peaked. The U.S. jobless rate dropped to 9.7 percent in January from 10 percent in December.

The Fed is scheduled to wrap up its purchases of $1.43 trillion in mortgage-related securities by the end of next month. The program was undertaken to lower mortgage rates and prop up the struggling housing market.

Bullard said he does not expect a substantial jump in mortgage rates when the program ends, as some fear.

"I think it will be seamless," he said.

Further emphasizing his concerns about preventing inflation, Bullard said inflation expectation are at or above the Fed's implicit target range. Central bankers lay great stress on holding inflation expectations in check because they believe doing so is key to keeping inflation at bay.

"If the data keep coming in as expected and the economy keeps improving, then those will continue to ratchet up unless the central bank sends some signals that, 'No, we intend to keep inflation close to target,'" he said.

Bullard said that if the rise in inflation expectations began to look troubling, the Fed could discard its pledge to hold interest rates exceptionally low for an extended period, even if unemployment remained high.

"We know that the expectations are very important to how these things evolve, and so if those started to get out of hand, we really have to come back in and send a signal to the market," he said. "It would trump everything."

Fed’s Bullard: May see asset sales late 2010

03
Feb

Obama pushes energy plan that GOP may support

WASHINGTON – Looking for a political and policy victory, President Barack Obama on Thursday pushed energy proposals designed to attract allies and opponents alike, calling for increased ethanol production and new technology to limit pollution from the use of coal.

Facing a Senate with a newly energized Republican minority, Obama has begun tailoring his energy policy to GOP-supported ideas, starting in his State of the Union address last week with calls for offshore oil drilling opposed by environmentalists and a bigger role for nuclear power.

The first-term president — politically weakened by the loss of the late Sen. Edward M. Kennedy’s seat to Massachusetts Republican Scott Brown — also has begun promoting his energy policy as a job-creating boost to the economy.

“Now, there’s no reason that we shouldn’t be able to work together in a bipartisan way to get this done,” Obama said during a bipartisan meeting with governors in the White House’s State Dining Room. “It’s good for our national security and reducing our dependence on foreign oil. It’s good for our economy, because it will produce jobs.”

He spoke as the White House released presidential task force recommendations calling on both Washington and the private sector to spend more money on biofuels like ethanol. The group said the nation likely will fall short of goals Congress has set for creating more environmentally friendly energy.

At the same time, the Environmental Protection Agency issued a new rule requiring U.S. companies to produce at least 13 billion gallons of renewable fuels this year — up from about 11.1 billion in 2009. The congressional goal is 36 billions gallons of renewable fuel by 2022.

EPA Administrator Lisa Jackson said the new rules would reduce oil dependence by million of barrels a year and “help bring new economic opportunity to millions of Americans, particularly in rural America us fast cash.”

In his meeting with the governors, Obama also announced a new task force to study ways to increase the use of coal in meeting the nation’s energy needs without increasing the pollution that contributes to global warming.

“It’s been said that the United States is the Saudi Arabia of coal, and that’s because … it’s one of our most abundant energy resources,” Obama said. “If we can develop the technology to capture the carbon pollution released by coal, it can create jobs and provide energy well into the future.”

Washington Gov. Christine Gregoire said the president told coal-state governors he understood their resistance to change when coal suppliers in their states are making money. She said Obama urged them to be partners in developing clean coal alternatives, a proposal that was embraced by many Republicans in the room.

“There was consensus around, let’s see if we can develop a clean coal strategy of the future,” she said.

The White House meeting comes a day after Obama signaled a willingness to separate a controversial cap-and-trade proposal aimed at limiting carbon pollution from more attractive green energy jobs and energy efficiency proposals. The House approved the anti-pollution measure last year as part of a comprehensive energy bill, but it is unlikely to win Republican support on Capitol Hill.

Energy has been a major part of the president’s domestic agenda since he took office, but it has taken on new urgency in the wake of Brown’s victory in Massachusetts as both the president and his Democratic allies on Congress look ahead to the fall elections.

___

Associated Press Writer Julie Pace contributed to this report.

Obama pushes energy plan that GOP may support

Hot News: Bernanke voices economic concerns as hes sworn in

30
Jan

Davos leaves questions over global bank rules push

DAVOS, Switzerland (MarketWatch) — Bankers and politicians agreed on little in public during this week’s World Economic Forum gathering of top CEOs and policymakers in the Swiss Alps, other than the desire to see regulations coordinated around the globe.

But some attendees say it’s not clear that’s going to happen.

Bankers and politicians met behind closed doors at the annual meeting Saturday, though the discussions didn’t appear to produce any concrete agreements.

Bankers have acknowledged they are going to see more regulation, said U.S. Rep. Barney Frank, the Democratic chairman of the House Financial Services Committee, after the meeting.

Deutsche Bank chief executive Josef Ackermann, who has emerged as an unofficial spokesman for the bankers at this year’s WEF , told an audience at a panel discussion later Saturday that “something has to happen quickly to restore confidence in the banking system.”

Ackerman, who chairs the forum’s committee of finance CEOs, on Friday said the bankers were in favor of higher capital requirements, better liquidity management and improved market infrastructure, as well as measures that would ensure failed banks could be wound up without bringing down the system. Read about Ackermann’s presentation.

Davos: Jacob Zuma Promotes World Cup at Forum

South African President Jacob Zuma goes on a public relations blitz at the Davos economic forum to promote the World Cup in South Africa. WSJ reporter Roman Kessler has more.

Meanwhile, questions surround the ability of regulators to internationally coordinate new banking rules.

Ensuring some degree of uniformity in new banking rules amid intense public anger around much of the world was always going to be a tough task.

The importance of policy coordination was a “key lesson of the crisis,” International Monetary Fund Managing Director Dominique Strauss-Kahn said on Saturday. “I’m a bit afraid we’re not going in this direction.”

“The big unknown is the attitude of the United States,” said Barry Eichengreen, an economics professor at the University of California Berkeley, in an interview.

The Obama administration’s introduction last week of the “Volcker rule,” a proposal that would limit the size of commercial banks, barring them from trading for their own account and operating private equity and hedge funds,

British Chancellor of the Exchequer Alistair Darling contends that approach wouldn’t solve the problems that created the crisis fast payday loans. He’s put the emphasis on increased capital requirements and “living wills” that would detail how to close down failed banks.

French President Nicolas Sarkozy told Davos bankers and other luminaries earlier this week that the Obama measures were correct, but that no nation could go it alone. Efforts must be coordinated by the Group of 20 nations, which agreed in April that the Basel, Switzerland-based Financial Stability Board would oversee negotiations. Read about Sarkozy’s speech in Davos.

Banks say that a lack of coordination would make for an un-level playing field. Policy makers say banks would game differences in a damaging round of regulatory arbitrage.

European Central Bank President Jean-Claude Trichet told a Davos audience that failure to coordinate measures “would be a catastrophe.”

Frank has said the Obama plan would be passed within months.

In a panel discussion earlier this week, he dismissed ideas that pressing ahead with the plan threatened efforts to coordinate measures across the globe as a “false dichotomy.”

While Frank was in high demand this week, Obama administration officials were thin on the ground in Davos.

On Saturday, Eichengreen introduced a high-powered panel discussion of central bankers and business leaders on the issue of financial reform, noting that the panel lacked only a representative of the Obama administration. “But why should this panel be any different from others here at Davos this year,” he said.

White House economic adviser Lawrence Summers delivered remarks in Davos Friday, but no other high-profile administration officials were in attendance for the event that began Wednesday.

Eichengreen said a U.S. policy that insists on elements of the Obama plan such as the ban on proprietary trading by commercial banks would make it difficult to reach international agreement.

Davos leaves questions over global bank rules push

Hot News: Batch of Bad News Weighs on Asian Stock Markets

28
Jan

Europe Markets: European shares higher after Fed comments

LONDON (MarketWatch) — European shares advanced on Thursday, with investors getting their first chance to react to the U.S. Federal Reserve’s more upbeat comments on the U.S. economy.

The pan-European Dow Jones Stoxx 600 index , which dropped on Wednesday for the fifth time in six sessions, advanced 1.2% to 250.18.

Miners and banks were among the best performers as recent fears about global economic trends appeared to recede, with Santander shares up 2.3% and Xstrata shares up 2.2%.

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On Wednesday after the European close, the Federal Reserve kept official interest rates unchanged. In its description of the economy, the Fed was slightly more upbeat. Read more on Fed.

“The U.S. Federal Reserve said that there was an improvement in U.S. business spending, adding that the “recovery is likely to be moderate for a time”– a significant change from its characterization of “weak growth” cited in previous statements,” said analysts at MF Global.

Of other regional equity markets, the U pay day loan lenders.K. FTSE 100 index rose 0.8% to 5,259.93, the German DAX index rose 1.1% to 5,705.17 and the French CAC-40 index climbed 1.1% to 3,799.60.

The move in Europe followed gains in Asian equity trading. U.S. stock futures were pointing to moderate gains on Wall Street.

Corporate news was also providing European investors with reasons to be upbeat.

Shares of Swedish fashion chain Hennes & Mauritz jumped 7.4% after its fourth-quarter net profit rose to 6.15 billion Swedish kronor ($844 million), from 5.09 billion kronor a year ago, beating analyst forecasts.

Revenue, excluding sales tax, rose 13% to 18.58 billion kronor, against 16.41 billion kronor in the year-ago period. H&M also said total sales for the month of December rose 15% and 3% on a comparable basis.

Shares of British Sky Broadcasting climbed 2.7% after its first-half net profit rose to 256 million pounds ($415.1 million), from 166 million pounds a year ago. Sales rose to 2.87 billion pounds, from 2.6 billion pounds last year, as strong growth in subscription revenue offset weakness in other categories.

Customer net additions were 172,000 in the second quarter, taking the total base to 9.7 million.

Europe Markets: European shares higher after Fed comments

26
Jan

Opel unions issue strike warning over factory closure

ANTWERP, Belgium (AFP) – Unions at General Motors unit Opel on Tuesday warned widespread strike action is a possibility as they refused to accept a planned Belgian plant closure at the troubled carmaker.

"A strike is the last resort, but management has to realise that we will undertake all manner of (industrial) action — and that can include strikes," said Peter Scherrer of the European Metalworkers' Federation (EMF).

"There will be neither sacrifice nor concession by the unions, by the workers at other plants, if the decision is not overturned," Scherrer said in Antwerp after a meeting also assembling Austrian, British, German, Hungarian, Polish and Spanish unions.

The company announced last week its intention to close down an auto factory in Antwerp, probably by the summer, with the loss of 2,600 jobs.

That decision was accompanied by a switch in production for a line of sports utility vehicles (SUVs) to South Korea, against which unions have embarked on legal action new car loans.

Scherrer said workers at other GM Europe plants had agreed not to fill in for Antwerp workers during any stoppage.

"We make the GM management aware of a long history of European solidarity in common action," read a joint declaration by labour movements representing workers at Opel and Vauxhall. "This will be exercised if necessary."

The statement was signed by the European Employee Forum (EEF), the EMF and the European unions and works councils represented at GM Europe.

Opel unions issue strike warning over factory closure

23
Jan

Market Snapshot: U.S. stocks drop for third straight session

NEW YORK (MarketWatch) — Stocks closed with steep losses for a third straight day Friday, paced by technology shares, which suffered from analyst downgrades and sky-high earnings expectations.

The selling picked up in the afternoon as fears swirled regarding the possibility that Ben Bernanke might not get confirmed to a second term as Federal Reserve chairman.

The Dow Jones Industrial Average slid 216.90, or 2.1%, to 10,172.98, off 5.2% over its three-day slide. For the week, the Dow was off 4.1%.

Hot Stocks: Energy under pressure

Energy stocks end a punishing week with more losses as a result of lower crude prices, broader-market weakness and less-than-inspiring results from Schlumberger. MarketWatch’s Steve Gelsi reports.

The S&P 500 Index plunged 2.2% to 1,091.75, off 3.9% for the week. The tech-heavy Nasdaq Composite Index ended down 2.7%, the worst decline of the major indexes. It was hurt in part by a 5.7% slide in Google , despite the Internet giant’s surge in fourth-quarter earnings. The company’s earnings and revenue came in well above analysts’ estimates, but investors seemed to have been looking for more.

“Expectations have gotten elevated over the last three quarters and it becomes a very tough short-term bar to clear,” said Jeff Markunas, portfolio manager of the RidgeWorth Large Cap Core Equity Fund. “There’s been a lot of nit-picking.”

Also weighing on the tech sector: Citigroup cut its ratings on seven semiconductor-equipment stocks, citing the risk of a correction of perhaps 30% in the sector for the short term, though a broader bullish trend remains intact.

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Of the companies downgraded by Citi, the hardest hit were Entegris , off 11 payday loans with no fax.9%; Brooks Automation , off 9.6%; and Applied Materials , off 7%.

The declines in major averages gathered some steam in late afternoon as President Barack Obama spoke at a town hall meeting regarding his plan to impose tougher limits on big banks’ speculative activity. His proposal fueled a 213-point slide in the Dow when it was unveiled on Thursday and continued to be a hot topic among investors during the latest trading session.

Investors also weighed reports that some congressional Democrats are growing skittish about confirming Bernanke to a second term as Fed chairman.

“The chief sponsor of the economy, the Fed, will be in disarray if Bernanke doesn’t get reappointed,” said strategist Bruce Bittles, of R.W. Baird & Co. “That’s a big concern for investors right now.”

Financial bellwethers extended the previous session’s sharp losses. Goldman Sachs Group was down 4.2%, while Bank of America , which focuses more on traditional banking, was off 3.7%.

General Electric rose 0.6% after reporting fourth-quarter earnings above analysts’ estimates and forecasting a return to growth in 2011. McDonald’s , meanwhile, climbed 0.3%. The fast-food giant’s fourth-quarter earnings rose 23% as same-store sales climbed across all its regions.

American Express fell 8.5% despite a tripling in its quarterly net income. The report topped Wall Street estimates, but fell short of investor expectations. The market may have already priced in the improvements, anticipating the credit card issuer’s strengthening, analysts said.

In other markets Friday, crude-oil prices fell below $75 per barrel. Gold futures also slipped.

The dollar weakened against both the euro and the yen, while Treasurys were little changed. The 10-year note was recently off 2/32 to yield 3.601%.

Market Snapshot: U.S. stocks drop for third straight session

24
Dec

Personal spending and income rise in November

WASHINGTON (Reuters) – Consumer spending rose for a second straight month in November as incomes recorded their biggest gain in six months, data showed on Wednesday, boosting hopes of a self-sustaining economic recovery.

The Commerce Department said spending increased 0.5 percent after rising by a slightly downwardly revised 0.6 percent in October. Consumer spending in October was previously reported to have increased 0.7 percent.

Analysts polled by Reuters had expected consumer spending, which normally accounts for over two-thirds of U.S. economic activity, to rise 0.6 percent last month.

The data was the latest evidence that households were starting to feel comfortable enough to spend after a long period of restraint following the most painful U.S. recession in 70 years.

Data early this month showed a strong rise in retail sales in November, with gains spread across nearly all categories.

Wednesday's report showed spending adjusted for inflation rose 0.2 percent in November, adding to the prior month's 0 business card.4 percent gain. Personal income increased 0.4 percent last month, the largest increase since May, after rising 0.3 percent in October. That was a touch below market expectations for a 0.5 percent increase.

Real disposable income climbed 0.2 percent in November after rising by the same margin in October. The rise in income saw savings increasing to an annual rate of $525.1 billion, but the savings rate was unchanged at 4.7 percent from the prior month.

Commerce Department data also showed the personal consumption expenditures price index, excluding food and energy, rising 1.4 percent from a year ago in November. The index, which is a key inflation gauge monitored by the U.S. Federal Reserve, increased 1.4 percent in October.

(Reporting by Lucia Mutikani; Editing by Andrea Ricci)

Personal spending and income rise in November