Early Edition August 08 2008 at 12:36 AM Chi-Chu Tschang and Harry Maurer
UBS May Buy Back $25 billion in debt settlement
In the latest twist of the sub-prime fallout, UBS may buy back as much as $25 billion worth of securities from retail and institutional investors to settle state and federal claims that it defrauded them through the sale of auction-rate securities. Zurich-based UBS has been hit worse than any other bank by the crisis, losing $25.6 billion in the nine months through to March.
Such a payment would dwarf the amounts settled with regulators by Citigroup which agreed on Aug. 7 to buy back $7.3 billion worth of debt and pay $100 million in fines, while Merrill Lynch offered to purchase $10 billion worth of auction securities.
Source: Bloomberg
As Olympics Open, China's Economy Slows
In a worrisome sign that China's growth streak is losing more steam, the latest official statistics on manufacturing show the output of Chinese factories may have actually contracted in July. The Purchasing Managers Index (PMI) fell to 48.4 in July, the first time it has dropped below the 50 boom-bust line since the government introduced the measure three years ago.
Source: BusinessWeek
Royal Bank of Scotland shows first loss in 40 years
The Royal Bank of Scotland posted its first loss in 40 years thanks to huge right downs of $11.4 billion dollars related to credit market exposure. In the first half the bank swung to a $1.4 billion loss compared with a profit of $6.9 billion in the year earlier period.
Source: CNN
Pakistan coalition seeks to Impeach Musharaff
Pakistan's governing coalition led by Asif Ali Zardari and Nawaz Sharif said it will start impeachment proceedings against President Pervez Musharaff unless he resigns. Zardari blamed Musharaff for the country's "critical economic impasse" caused by raging food and fuel prices. Musharraf cancelled a trip to the Beijing Olympic opening ceremony to defend his position at home.
Source: Los Angeles Times
Bin Laden's driver gets 5 1/2 year sentence
A military jury sentenced a former driver for Osama bin Laden to five and a half years in prison on charges of supporting terrorism. The five years and one month he has spent in detention at Guantanamo Bay prison awaiting trial will be counted towards his sentence, leaving him just five months remaining in custody. Prosecutors had sought a 30 year sentence for Salim Ahmed Hamdam.
Source: Washington Post
Lenovo first quarter profit leaps 65%
Chinese personal computer maker Lenovo announced a 65% jump in first quarter profit to $110 million on sales of $4.21 billion thanks to robust growth in China which offsetting weaker demand in the U.S. Sales in China, which accounts for 41% of the company's business, grew 22% compared with a 12% increase in worldwide shipments.
Source: Wall Street Journal
Ferragamo may delay IPO until 2009
Italian luxury goods house Ferragamo may delay its IPO until 2009 as softness in consumer demand and financial markets continues. Earlier this year Ferragamo had been widely expected to float its shares in 2008 though the company never provided a specific date. The Florence-based company is controlled by the family of its deceased founder, Salvatore Ferragamo.
Source: Bloomberg
American Airlines Ups Fees on Mileage Program
Beginning Oct.1, passengers using American Airlines mileage program to upgrade tickets will face higher fees. Changes include a $100 co-payment on return trips in addition to awards miles. American's changes were announced a week after Delta unveiled increases in its fees.
Source: Pacific Business News
Conversation of the Day: Corporate Healthcare
"Some oversight to make sure that patient care takes priority over saving money is a good idea. I wish somebody would do the same thing for insurance companies!"
Tell Us: Are You too Busy for Medical Check ups?
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