Business & Financial News

The Finnish cellular telephones Nokia manufacturer has finished the transaction on purchase of American cartographical company Navteq. As it is informed in the press release of the American company, cost of the transaction has made 8,1 billion dollars

The transaction between Nokia and Navteq has been declared on October, 1st, 2007. Nokia has paid 78 dollars cash for each Navteq’s share.

The transaction has met with approval of boards of directors of both companies, its end planned on I quarter of 2008, however, Eurocommission required additional investigation and detailed studying of the transaction to approve it.

Eurocommission was interested in the question, whether purchase of the American company would lead to the increase in cost of navigating systems for other companies, making the similar equipment and services for cellular telephones. Besides, it should find out, whether it would limit access of these companies to systems, that as a result, would negatively affect consumers.

Swiss authorities can address to the largest banks of the country - UBS and Credit Suisse - with the offer to reserve 70 billion Swiss francs (43,5 billion euro) in case of further development of world financial crisis.

In case of adverse succession of events, financial obligations between banks will be distributed as follows: 40 billion Swiss francs (25 billion euro) for UBS and 30 billion Swiss francs (19 billion euro) for Credit Suisse.

As it became known, adjusting bank bodies of Switzerland are measured to enter the new law, which is obliging UBS and Credit Suisse to allocate means, which will become a guarantee from losses like that has incurred UBS owing to crisis in the financial markets.

Let’s remind, in I quarter of 2008 UBS’s pure losses have made 11,54 billion Swiss francs (7,11 billion euro) in comparison with net profit at the rate of 3,03 billion francs (1,86 billion euro), received for the similar period year earlier. for the specified period The proceeds of bank have fallen up to 20,22 billion Swiss francs (12,46 billion euro), that is on 22 % less than the parameter fixed, in I quarter 2007.

At the same time, for first three months of 2008, pure losses of Credit Suisse have made 2,15 billion Swiss francs (1,33 billion euro) against net profit in 2,73 billion francs (1,7 billion euro) for the similar period year earlier. Thus the proceeds of bank were reduced almost four times, having made 3,09 billion Swiss francs (1,93 billion euro), whereas in I quarter of 2007 this parameter made 11,62 billion francs (7,3 billion euro).

The bank has also declared about write-off of actives because of credit crisis for the sum of 5,3 billion Swiss francs (3,3 billion euro) in I quarter 2008 and it has become a principal cause, fixed on results of quarter of losses.

The bank commission of France (the central bank regulator of the country) has fined bank Societe Generale on 4 million euro for infringements which have led to swindle of the former trader Jérôme Kerviel.
The regulator specifies, that in internal monitoring systems behind transactions Societe Generale “rough lacks”, which as a result cost have been revealed to the companies in 4,9 billion euro.
In the message of the bank commission it is spoken that Societe Generale’s staff, responsible for monitoring of trading operations, has neglected risks of possible swindle. To all other “serious weaknesses” are noted in system of information safety of bank.
Representatives of Societe Generale have refused to make comments on commission’s conclusions. However, earlier the management of bank has shifted all faults for scandal on the trader and has declared that it is an “individual” case of swindle.

American auto concern Chrysler LLC for uncertain term closes a minivans factory in Saint Louis, located in state of Missouri. One more factory in Saint Louis, on which Chrysler makes pickups, reduces the manufacture due to transition with two-shift to the one-replaceable schedule.
Changes will come into force in the autumn of this year and will concern 2,4 thousand workplaces.
Curtailment of production is connected with reduction in demand for pickups and minivans. Chrysler connects falling demand with delay of the American economy, the high prices for gasoline and the general consumer trend in favor of less large and more economic cars.
Chrysler, which is producing cars under marks Chrysler, Jeep, Dodge, has not the best times now. In May, 2008, sales of concern in the USA have fallen on 25 % in comparison with May of the last year. Earlier the company declared plans to reduce nearby 10 thousand workplaces in 2008 because of re-structuring.
Let’s note that falling of sales is characteristic not only for Chrysler, but also for all large American motor-car manufacturers.
However, despite of record delay of rates of growth of a car market of the USA, the Asian companies continue to increase the presence in the American market. For example, Honda and Nissan became the unique companies from among large motor-car manufacturers, who could overcome the tendency to decrease in a break-even sales level. So, in May, Honda realized on 11 % more cars, than for the similar period of the last year, Nissan has informed on four percent sales’ increase.

Recession in the real estate market of the USA has led to that sales volume in IKEA furniture hypermarkets have worldwide reduced.
So, in America sales volumes of IKEA have decreased on 21 % in comparison with the last year, though IKEA occupied only about 10 % of the American market, or 21 billion euro in 2007.
Thus IKEA representatives do not consider, that for them this recession of sales - is occasion for a panic, in fact it will not proceed eternally. In order to keep the positions in the market, the company has changed strategy of development. Now the network actively enters developing markets of China, Russia and the East Europe.
In total IKEA owns 250 shops in 32 countries.

Rainy weather has appeared on a hand to the Central Banks of some the countries of the East Europe as it has favorably affected the agricultural crops, which are grown up in these countries.
Good harvests should help to the Central Bank to cope with inflation, which is on record-breaking high marks practically in all developed and developing countries. In experts’ opinion, this year crops in all Eastern European countries will grow on 10-70 % and though it will not help to lower general rate of inflation, but it will considerably facilitate consumers life.
Of course, inflation will not sharply decrease. But unexpected good harvests of agricultural crops will help to weaken slightly inflationary pressure. Meantime a proceeding growth of inflation created huge quantity of problems to the Eastern European Central Bank as it compelled them to trace a rate of inflation constantly. So, since October 2007, the Central Bank of Romania has already raised the rate of refinancing on 275 basic items up to 9,75 %. And the majority of experts down to recent time were assured, that the bank will continue a cycle of discount rate increase.
However, May data on inflation have placed all in the places. So, in May in monthly calculation inflation has made 0,5 %, in comparison with 1 % in April. Annual inflation in this country has decreased from 8,6 % in April to 8,5 % in May, though it is considerably above the purpose(2,8-4,2 %), declared by the Central Bank. However, it is expected, that in August the rate of inflation will considerably decrease, in many respects owing to good harvests

Brewing company Anheuser Busch has received the offer on purchase of Belgian brewing company InBev. The Total sum of the transaction is estimated in 46 billion dollars
As it is informed in press release of Anheuser Busch, InBev has offered 65 dollars for each Anheuser Busch’s share. It is informed, that the transaction will be carried out for cash.
Hearings about this transaction have appeared in May, 2008, however they have not been proved yet.
Belgian InBev - is largest on size brewing company in the world. The company produces beer under brands Stella Artois, Beck’s and Brahma.
Anheuser Busch - is the second in the world on size and the largest in the USA brewing company, which possesses 12 American beer factories and has branches in other countries of the world.
The company makes more than 60 kinds of beer and other alcoholic production, including well-known Czech mark Budweiser.

Today, on June, 10th, IPE Brent Index on ICE Futures Europe has for the first time exceeded a mark of 13500 items. The parameter, reflecting the forward price spot of North Sea oil mix BFOE (Brent, Forties, Oseberg, Ekofisk) with a term of its delivery within 21 trading days, has grown on 246 items, or on 1,9 %, and has reached new record value - 13504 items.
For last six sessions at ICE Futures IPE Brent Index resulted in such values: on June, 10th - 13504; on June, 9th - 13258; on June, 6th - 12368; on June, 5th - 12297; on June, 4th - 12651; on June, 3rd - 12723.
Let’s remind that till today an absolute record for IPE Brent Index was fixed at the mark of 13273 items, registered on May, 23rd.
Value IPE Brent Index which has established next day after end of the contract period under the future nearest delivery month defines the price of final settlement under the agreed transactions. Thus one item of index corresponds to 0,01 doll./barr.

Prompt rise in prices for oil has for the first time for long time created threat of sharp delay of rates of economic growth and has provoked increase in demand practically to all alternative energy sources.
Moreover, some experts mark, that the current power policy of many countries can in long-term prospect very strongly affect the future of the Earth and even to alter in the further economic and geopolitical balance.
Now the future depends on those decisions, which are accepted now. Authorities of the developed and developing countries should pay more attention to a problem of demand for oil as in the further it is impossible to exclude an opportunity of an energy crisis. Meantime, on a background of sharp growth of demand for oil and mineral oil, the prices for this raw material have jumped up practically twice, and last week for the first time in history have overcome a mark 135 doll./barr.
And, in market participants’ opinion, while demand for oil from developing countries (for example, China) will grow, it is not necessary to expect reductions of prices on this raw material. Already now the prices are on record-breaking high marks and not in the best way affect consumers.
Already now demand for alternative energy is much higher than several years ago.

The chapters of United Airlines and US Airways Glenn Tilton and Douglas Parker have officially postponed plans on creation of the incorporated world’s largest airline, having declared, that merge will not occur “this time”.
The application has been made after a meeting of heads of both companies.
Earlier Chicago United Airlines and US Airways considered an opportunity of merge within more than two months. However, not so optimistically forecasts on profit for the companies of sector in view of record-breaking high prices for oil have forced a management of both companies to refuse from the transaction in the nearest future.
Airline United Airlines carries out more than 3,200 thousand flights a day, on more than 200 internal and external flights. The staff of the company totals nearby with 55 thousand people.
Company US Airways carries out approximately 3,800 thousand flights a day. The company has 36 thousand employees worldwide.
Let’s remind that United Airlines and US Airways have already tried to be united in 2001. However, then attempt of merge has failed that antimonopoly bodies have refused to approve it.
Consolidation in the market of aviaservices is considered by the American companies as a way to reduce the costs, which have essentially increased in connection with the high prices for fuel. So, losses of company UAL in I quarter, 2008, have made 537 million dollars against 152 million dollars year earlier. Fuel costs of United Airlines have grown on 51 % - up to 1,58 billion dollars.