News

Your daily news update straight from the City PM newsroom in London

Low crude prices hit Total profits

November 4, 2009

FRENCH oil major Total said third quarter net profits dived 54 per cent as lower oil prices and tight refining margins dented earnings. Total said yesterday that its adjusted net income, which strips out one-off items and unrealised gains on fuel inventories, was €1.87bn (£1.67bn), in line with analysts’ forecasts. Oil and gas production rose [...]
GMAC posts third-quarter loss on its mortgage loans after housing crash

November 4, 2009

GMAC Financial Services, a US lender that has received $12.5bn ($7.54bn) in government assistance, posted a third straight quarterly loss yesterday as its mortgage business continues to reel from the housing market collapse. The third-quarter net loss for Detroit-based GMAC was $767m, compared with a loss of $2.5bn a year earlier. GMAC’s auto finance unit [...]
Intel sued for bullying by New York City prosecutor

November 4, 2009

INTEL was sued yesterday by New York Attorney General Andrew Cuomo, who accused the world’s largest chipmaker of scheming to maintain monopoly power in the market for microprocessors. In an 87-page lawsuit filed in a Delaware federal court, Cuomo said Intel violated state and federal antitrust laws through a “systematic worldwide campaign” of illegal threats, [...]
Hard day’s night for Bluebeat as EMI sues over copyright

November 4, 2009

MUSIC label EMI, which is owned by Guy Hands’ Terra Firma, said yesterday that it is suing a US-based website that is selling unauthorised downloads of Beatles songs. EMI filed a copyright infringement suit against Bluebeat.com, a small website based in California, which was selling the fab four’s music for download at just 25 cents [...]
Logica steers a steady ship

November 4, 2009

SHARES in IT services firm Logica rose yesterday after it cut its full-year guidance but stepped up its cost-cutting programme. Logica said that full-year revenue would fall three per cent rather than an earlier forecast of about two per cent, reflecting weak demand for consulting and professional services. Analysts had expected the cut and instead [...]
SHOULD THE MARKET TAKE HEART FROM LOGICA’S RESULTS?

November 4, 2009

DEREK BROWN SEYMOUR PIERCE“One thing of note was how strong their public sector business is in the UK. It is possible that this has been driven by the sector bringing things forward ahead of the election next year, when they will be forced to cut spending. I am therefore a bit cautious about income from [...]
ITV search nears an end

November 4, 2009

ITV HAS narrowed its search for a new chairman to three candidates, giving hope that the calamitous hunt to replace Michael Grade could be nearing an end. A source close to the commercial broadcaster said yesterday that three candidates remain in the race, though they were unable to confirm the identities of the individuals. Betting [...]
‘Teflon Terry’ to take the reins as C4 chairman

November 4, 2009

ABBEY National chairman Sir Terry Burns is expected to be the new chairman of state-owned Channel 4, with Ofcom set to make an announcement imminently. The former permanent secretary to the Treasury is understood to be the watchdog’s choice to replace Luke Johnson, who steps down in January. Burns is also said to be Whitehall’s [...]
Aviva talks up outlook as sales slide in third quarter

November 4, 2009

AVIVA became the second insurer in as many days to talk up the profit outlook despite revealing a sharp slide in sales in the third quarter, led by a 25 per cent dive in UK life and pensions. The slump in the UK, where sales fell to £6.66bn from £8.84bn in the third quarter, weighed [...]
SHOULD AVIVA BE CONCERNED BY FALLING SALES OR CONTINUE TO FOCUS ON INCREASING PROFIT MARGINS?

November 4, 2009

DUNCAN HALL FINNCAP“Pursuing profit margins over growth in volume is the right strategy at this moment when it’s all about good management and tight cost control. In the current environment there probably isn’t that much volume out there, so why try to chase it?” BARRIE CORNES PANMURE GORDON“Although new business sales were shy of expectations, [...]