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    Citigroup to double China branches to 100

    Citigroup has announced late on Sunday it is to increase its China presence to a hundred from the current 47 within two to three years, according to the CEO for Asian operations, Stephen Bird. Doubling the branches will help speed up its drive into China’s credit card business and an imminent securities joint venture. According to Bird, Citigroup has benefited from its endeavours to help Chinese institutions widen their technology and products as it has achieved approval for its own undertakings in the process. The bank bought stakes in Chinese companies in an attempt to position itself among the most influential lenders within the market. ...
    On March 12, 2012 / By
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    US Treasury to sell $6bn worth of AIG shares

    The US Treasury Department late on Wednesday reached a deal with insurer AIG to sell off an estimated $6bn in stock in an attempt to gradually sell down the stake it still owns. The Department already cut its stake to 77 percent when it sold 200 million shares last May. Shares are now being offered at $29 apiece. Under the agreement, AIG has to pay off over $8.5bn in obligations. AIG’s CEO Robert Benmosche said in a statement: “The people of AIG have achieved another significant milestone in their progress toward the goal that American taxpayers recoup their entire investment in AIG at a profit.”...
    On March 8, 2012 / By
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    Greece puts pressure on bondholders

    Greece increased the pressure on its creditors late on Tuesday, as it looks to secure a bond swap deal that will help write off an estimated 53.5 percent of the country’s privately held debt. Athens informed creditors that it is reassessing its options concerning non-payment, saying it will default on any bondholders unwilling to participate in the €206bn debt restructuring. Private creditors in Greece now have until Thursday to decide. New legislation has already been passed to force bondholders to participate. Greek banks, which hold up to €45bn of the sovereign bonds already agreed to take part in the debt swap deal, Greece’s finan...
    On March 7, 2012 / By
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    Greece blames European Union for debt crisis

    Greek Tourism Minister Pavlos Yeroulanos believes that the EU is responsible for Greece’s current economic situation. “People should remember that European institutions have been monitoring the Greek economy since 2004… What happened between 2004 and 2009? Either the EU was not doing its job correctly, or it knew what the situation was and hid it,” Yeroulanos said on Tuesday. Yeroulanos’ comments come as fears grow over whether the recent supplementary €130bn bailout package (dubbed “the world’s most expensive sticking plaster”, by Guardian Economics editor Larry Elliott) afforded to Greece will be able to alleviate Greek fi...
    On March 7, 2012 / By
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    China drops double-digit growth for first time since 2005

    Global shares in commodities such as copper and natural gas took a hit in early trading on Tuesday as investors tried to digest the repercussions of China’s announcement that it is to scale back its expansion plans. China, for the first time in eight years, has cut its annual economic growth target to below eight percent in a sign that the nation can no longer supply double digit growth rates. Premier Wen Jiabao addressed the National People’s Congress late on Monday, saying that his target for economic growth in 2012 will now be 7.5 percent instead of eight percent to ensure a more “sustainable and efficient” economy. He also announc...
    On March 6, 2012 / By
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    Glencore says $37bn deal “fair”

    Glencore, the globe’s largest commodity trader, said on Monday that the $37bn offer for Xstrata is a fair deal, and is a “logical” next step for the two companies. There was no indication that it was willing to improve its offer to win over hesitant investors. Last month Glencore released estimated 2011 earnings together with the news it is to go ahead with the Xstrata tie up. Glencore’s net income was up 7 percent to $4.06bn. The commodity trader is now offering 2.8 new shares for every Xstrata share it does not already own – an estimated 66 percent of the group....
    On March 5, 2012 / By
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    New Google privacy policy ‘illegal’ says EU Justice Commissioner

    Viviane Reding, the EU’s Justice Commissioner, has announced that Google’s new privacy policy, effective as of midnight on March 1, represented “a breach of EU law”. In the face of entreaties from the EU to cease and desist earlier last week, Google went ahead with the privacy policy update, and issued a statement declaring that they believed the “simple, clear and transparent privacy policy” was compliant with all European laws pertaining to data protection. However, in an interview with the BBC, Reding said that “transparency rules have not been applied”. The change means that user data (such as browsing history) collected b...
    On March 5, 2012 / By
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    Peugeot debt rating cut could hamper GM deal

    Shares in Peugeot fell around 7.7 percent following a debt rating cut by Moody’s late on Thursday. The move saw the French car manufacturer’s rating drop to “junk” status, which may hinder a proposed deal with General Motors. According to Moody’s, a GM alliance would possibly weigh on earnings in the short term without yielding the expected savings in the long term. The company said that it had been anticipating the downgrade and had prepared for it with additional cost cutting measures....
    On March 2, 2012 / By
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    US Air Force cancels Embraer aircraft deal

    The US Airforce late on Tuesday unexpectedly cancelled a $355m light aircraft contract granted to Sierra Nevada and Brazil’s aircraft manufacturer Embraer. The deal was scraped following objections from a rival US aerospace company. Hawker Beechcraft protested the award, saying its AT-6 plane was unjustly shut out from the competition. The deal for 20 Embraer AT-29 Super Tucano aircrafts was agreed in December as part of a mission to arm the Afghan military following a NATO troop exit. The awarded contract was originally seen as a significant victory for Embraer as it emphasised closer military ties between the two nations....
    On March 1, 2012 / By
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    WPP pre-tax profits up 18.5% to £1.008bn; “a record on whatever measure you care to name”

    WPP, the world’s largest advertising and PR network, today reported an annual profit of £1.008 bn, representing not only an unprecedented 18.5 percent rise on 2010’s results, but the first time the communications leviathan has broken the £1bn profit mark – and WPP say they expect their revenue to increase in 2012. A spokesman for Martin Sorrell, CEO of WPP, said that 2011 had been “a record…on virtually whatever measure you care to name”. WPP made 90 percent of its profits overseas, with the emerging markets in Latin America, Africa, the Middle East and Asia-Pacific seeing revenue growth of 12 percent or more. With the exception...
    On March 1, 2012 / By