Nineteen of UK’s biggest service suppliers - including BT, Capita, Vodafone, and Serco - have been ordered to slash the prices they charge the Government by 20% or GBP 16bln. (The Mail on Sunday)
UKUK Companies - Profit warnings have dropped to their lowest level for seven years as firms benefit from the recovery, according to Ernst & Young (Sunday Times)
BP (BP: 34.05 0.00 0.00%) - Exxon Mobil (XOM: 58.78 0.00 0.00%) has sought clearance from Washington to examine a GBP 100bln bid for the company. Sources cautioned there was no certainty that Exxon would make a move, but said the talks with Washington indicated a renewed interest as the co. comes closer to plugging the hole in the Gulf of Mexico. - In other news, companies partnered with BP in developing the crippled Mocondo well in the Gulf of Mexico could possibly also be targeted in the sweeping criminal investigation underway in Washington, according to the US Attorney General. (The Independent on Sunday)
- Also, Standard Chartered, the bank leading the USD 10bln-plus sale of assets in co., is believed to be behind a USD 5.25bln standby account to protect the co. (The Independent on Sunday) - Elsewhere, co.’s USD 6bln in-house insurance fund will pay out only USD 700mln for the Gulf of Mexico oil spill, documents reveal, leaving the firm exposed to billions in potential liabilities. (Sunday Express)
- Co. executives are refusing to provide President Obama with advance information on asset sales or large transactions, claiming that they would personally face huge fines if they did not inform the stock market first. (The Mail on Sunday) - Co. is in talks to sell its USD 9bln stake in Pan American Energy. CNOOC and Bridas, a rival Argentinean firm, are considering buying all or part of BP’s 60% holding. (Sunday Times)
- Co. said installation of the sealing cap is proceeding as planned, adding that the cost of the response to date amounts to approximately USD 3.5bln. (RTRS) - Abu Dhabi is not keen to invest in co., according to a report. (maktoob.com)
HSBC (HBC: 47.57 0.00 0.00%) - Chairman, Stephen Green, has revealed serious concerns about the future strength of the economically vital banking sector which is under threat from a wave of new regulations, citing the proposed Basel III accord on banking risks. (Sunday Telegraph)
GlaxoSmithKline (GSK: 34.84 0.00 0.00%) - A high level advisory committee to the FDA will examine the safety of co.’s diabetes pill Avandia for the second time in three years. (Telegraph)
Lloyds - The disastrous legacy of HBOS’s forays into private equity is revealed during the weekend with the disclosure of huge losses of GBP 289mln in 2009 at its remaining investment vehicle, now part of co. (The Mail on Sunday)
Standard Chartered - Co. said it will acquire GE Commercial Financing Ltd, adding that gross assets of the underlying business were USD 132mln equivalent at end-2009. (RTRS)
Rio Tinto (RTP: 48.29 0.00 0.00%) - Co. is selling its Chapudi coal exploration assets in South Africa for up to USD 75mln. (The Independent on Sunday)
BHP Billiton (BHP: 67.84 0.00 0.00%) - Co.’s Olympic Dam expansion that could cost USD 20bln may be delayed or crimped by a protracted environmental assessment and the cost. (Australian Financial Review)
BT - Co., its pension trustees and the Government go to court this week to determine who is responsible for GBP 40bln in pension liabilities should the co. go under. (Sunday Express)
British Airways (BAY: 79.44 0.00 0.00%) - The EU Commission is to approve next week plan by American, Iberia and co. to deepen OneWorld alliance - Sources (RTRS)
Marks & Spencer - Co. has initiated a major market research programme to find out how tax rises and public spending cuts will affect customers. (The Independent on Sunday)
Prudential (PUK: 16.22 0.00 0.00%) - Co.’s leading investors will write to the co. week to demand the dismissal of Chairman Harvey McGrath following its failed attempt to buy AIA. (Sunday Express)
Pearson - Co. plans to splash out on additional bolt-on buys, leaving analyst expectations of a 5-8% increase in dividends intact. (Sources)
USThe return of risk appetite saw equity markets stage a session long rally, with cyclical sectors such as materials and financials showing biggest gains. The session began with raft of M&A rumours hitting the market. Among the note worthy was the speculation that Microsoft (MSFT: 24.27 0.00 0.00%) may be looking to bid for Nokia (NOK: 8.48 0.00 0.00%), while Barclays (BCS: 18.40 0.00 0.00%) was thought to be close to sealing a takeover bid for Sun Trust Banks(STI: 25.46 0.00 0.00%). Also, some of the fears regarding EU banks abated after it came to light that stress tests will include haircuts on government bonds. The upward trend continued into the closing hour, which saw DJIA move above 10,000 point mark. Finally, at the closing bell DJIA closed up 2.82% at 10018, S&P 500 closed up 3.18% at 1060.25, and NASDAQ 100 closed up 0.92% at 1814.79.
Smartphone Makers - NTP, best known for getting a settlement from Research In Motion (RIMM: 53.33 0.00 0.00%) over e-mail technology, is shifting its legal sights to a number of smartphone makers, including Apple (AAPL: 259.62 0.00 0.00%) and Google, Microsoft, Motorola (MOT: 6.76 0.00 0.00%). (WSJ)
Google (NASDAQ:GOOG) - Co.’s CEO Schmidt says he learned of China outcome this morning, and says the outcome is the one co. was hoping for. (Sources)
Citigroup (NYSE:C) - Co. said it has received approval from the Indonesian Stock Exchange to broker equities in the country. (WSJ)
Bank of America (NYSE:BAC) - Co. told US regulators in April that it unintentionally hid USD 10.7bln in debt from its balance sheets using six trades known as dollar roles, according to sources. (WSJ)
Boeing (NYSE:BA) - Co. says it has offered to build US Air Force tankers below the price in its previous, failed bid against EADS-Northrop Grumman. (RTRS)
Berkshire Hathaway (BRK-B) - Co. may record a USD 800mln writedown tied to asset declines in the second quarter, said Meyer Shields from Stifel Nicolaus & Co. (NY Post)
EuropeCommerzbank - Co.’s CFO says co. expects to post a positive pre-tax result for Q2, net result likely also positive, and H1 significantly better than initially expected. CFO says still plans to update 2010 outlook in August, and is not worried that Tier 1 ratio will could be at all too low under stress. (RTRS)
Merck - Co.’s Cladribine has been given market approval by Russia for the treatment of multiple sclerosis. (Sources)
Volkswagen - Co. will boost earnings in 2010 along with sales, according to the CEO. (Sueddeutsche Zeitung)
EADS - Boeing says it has offered to build US Air Force tankers below the price in its previous, failed bid against co.-Northrop Grumman. (RTRS) Also, co.’s bid for US refuelling tanker order may be below previous offers in 2008 and 2009 as the co. aims to undercut Boeing on pricing, according to sources. (FT Deutschland)
L’Oreal - Nestle may sell almost a 30% stake in co. (Neue Zuercher Zeitung)
Further coverage at the weekend in regards to the EU stress test with the Sunday Times business section writing that Europe’s banks could be forced to raise as much as EUR 90bln with Germany’s regional banks alone potentially requiring as much as EUR 37bln, citing last week’s note from Credit Suisse.
EU finance ministers will try to agree the fine points of bank stress tests when they meet this week on Monday and Tuesday and break a deadlock in talks on new financials supervisors, according to EU diplomats and officials. (RTRS)
Italian Banks - Italian stress tests will show the financial soundness of the country’s largest banks, according to sources. (Sole 24 Ore)
Santander - Co. is on the lookout for acquisitions across Latin America as the region’s banking system becomes “the best in the world”, according to the head of co.’s Latin American operations. (FT) Also, co. said it agreed to buy SEB Group’s commercial banking unit for EUR 555mln. (RTRS)
Abertis - The Abertis bid consortium, comprising of La Caixa, ACS and CVC, have told potential lenders they are planning to sell off EUR 2bln worth of assets. (El Confidencial)
Nestle - Co. may sell almost a 30% stake in L’Oreal. (Neue Zuercher Zeitung)
Novartis - UK regulator says co.’s Sandoz unit recalls specific batches of Temozolomide drug due to broken capsules. (Sources)
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