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Sunday, 22 December 2024
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European Business News (96-06-14)European Business News (EBN) Directory - Previous Article - Next ArticleFrom: The European Business News Server at <http://www.ebn.co.uk/>Page last updated June 14 10:20 CETCONTENTS
[01] Rogue trader racks up billion-dollar-plus losses for SumitomoFor the second time in a less than a year, a top Japanese company on Friday found itself 'overwhelmed with shame' over billion-dollar-plus losses caused by a rogue trader.Sumitomo Corp., one of the world's biggest distributors of basic commodities like metals and grains, said copper trader Yasuo Hamanaka lost about dlrs 1.8 billion over 10 years in off-the-books deals. It was just eight months ago that Daiwa Bank disclosed a strikingly similar case: a single employee in New York who lost dlrs 1.1 billion over 11 years in unauthorized bond trades. 'Once again, the lax risk management of Japanese companies has been exposed, ' commented Japan's largest newspaper, the Yomiuri Shimbun. 'This could reduce even further trust in Japanese companies as a whole.' [02] Yorkshire Electricity posts modest profit riseU.K. distributor Yorkshire Electricity Group PLC announced Friday that its pretax profit for the year ended March 31, 1996 rose 1% to 219.3 million pounds after 20.1 million pounds of exceptional transactions related to the group's spinoff from the National Grid.Without exceptional gains, the group's pretax profit fell 8% to 199.2 million pounds as lower regulated prices reduced sales. Yorkshire also announced that it is responding to the regulators' intended reduction in the fossil fuel levy by cutting its own tariffs by at least another 4% on Aug. 1. [03] Finnish central bank cuts tender rate on healthy inflation outlookSuomen Pankki, the Finnish central bank, lowered its tender rate, which is the benchmark for market interest rates, to 3.60% from 3.75%.The decision is effective immediately, added the central bank Friday morning. Apart from the tender rate cut, the rate for extra deposits at the Bank of Finland is lowered to 1.60% from 1.75%. The rate cut is based on a continued good inflation outlook for Finland, the central bank said in a statement. Earlier Friday, Statistics Finland reported that consumer prices rose 0.2% in May, leaving the annual rate unchanged at 0.7%. [04] South Africa unveils economic-growth planTrevor Manuel, South Africa's finance minister, Friday unveiled an economic strategy for higher economic growth and jobs creation that promises a faster reduction in the budget deficit, a moderate relaxation of exchange controls and tax incentives for business.Manuel told parliament this accelerated growth strategy will also seek to curb inflationary pressures and stabilize the currency. The new economic platform is designed to ease government's reliance on monetary policy to achieve its goals by providing tighter fiscal policy. [05] US retail sales grow 0.8% in MayU.S. retail sales increased 0.8% in May to a seasonally adjusted $205.48 billion, led by strong auto sales, the Commerce Department said.Last month's increase followed a revised decline of 0.1% in April. The April decrease was previously reported as falling by 0.3%. Retail sales, excluding autos, rose 0.3% during May. Auto sales for the month increased by 2.1%. Weakness in food stores and restaurant sales were responsible for a lower- than-expected reading on retail sales in May, economists contend. Indeed, coupled with a big upward revision to April sales ex-autos and the likelihood that food sales would rebound, the May retail sales report was fairly strong, they say. [06] New Bundesbank short-term debt won't undermine policyThe Deutsche Bundesbank officially changed its stance on the issuance of short-term German government debt, ending years of opposition to such funding instruments that it previously said would weaken the central bank's ability to conduct monetary policy.The Bundesbank now says it doesn't see any impact on its main inflation indicator, M3 money supply data, from the two-year and six-month debt the government soon will issue. And it said monetary policy conduct won't be undermined by the new debt instruments. [07] Bayer denies reports of drugs division spin-offGerman chemicals and pharmaceuticals giant Bayer AG (BAYZY) denied news reports it intends to sell off its pharmaceutical division.''We have absolutely no intention of selling our pharmaceutical division,'' a company spokesman said. ''On the contrary, it's a fundamental base for our business and we want to expand it,'' he said. The Guardian, a U.K. newspaper, said in today's editions that Bayer chief financial officer Helmut Loehr had indicated yesterday in London that the company planned to spin off its pharmaceuticals division. [08] Karstadt braces itself for difficult yearGerman retailer Karstadt AG said earnings in its various divisions were ''within expectations,'' in the first four months of 1996, German financial news agency VWD reported.But Karl Deuss, Karstadt chairman, expects a ''difficult year'' in retail sales, the company said in a statement. It didn't give any more specific figures. ''Due to continuing insecurity about the economy's progress and in view of the unfavorable consumer climate, we assume an improvement in group operating results can be achieved essentially only through cost reduction, '' Deuss also said, according to VWD. From the European Business News (EBN) Server at http://www.ebn.co.uk/European Business News (EBN) Directory - Previous Article - Next Article |
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