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European Business News (96-06-06)European Business News (EBN) Directory - Previous Article - Next ArticleFrom: The European Business News Server at <http://www.ebn.co.uk/>Page last updated June 6 11:30 CETCONTENTS
[01] Bank of England cuts UK base rateThe Bank of England has lowered its key minimum lending rate to 5.75% from 6%.The move follows the regular monetary meeting of U.K. Chancellor Kenneth Clarke and Bank of England Governor Eddie George Wednesday. Although the market had been anticipating such a move, expectations were low that the rate cut would come when it did. The Bank announced the move in calling for an early round of bill offers. [02] Medeva buys Rhone Poulenc Rorer unitU.K. drugs group Medeva PLC said Thursday that it is buying the U.S.-based Rochester Business and a portfolio of French pharmaceutical products from the U.S.-French group Rhone Poulenc Rorer (RPR) for a total of $400 million.Medeva said it will partly finance the agreement through a one-for-six share placing, raising 109 million pounds. The company also predicted that first-half 1996 pretax profit will be around 33.0 million pounds compared with 28.9 million a year before, with the interim dividend rising to 1.65 pence from 1.40 pence. [03] Copper prices hit two-year lowJuly copper futures plunged nearly nine cents a pound to their lowest levels in two years while June gold futures hit a seven-month low in a volatile day of trading in the metals markets.The July copper contract fell 8.65 cents a pound on the Comex division of the New York Mercantile Exchange to settle at $1.0205 a pound amid massive hedge and commodity fund selling. Copper prices are down nearly 25% in the past month. The drop, along with the drop in gold, oil and corn prices, helped push the KRCRB index more than 2 1/2 points lower to 247.45, taking a dent out of inflation fears thereby bolstering the bond market. [04] Qatar sees no oil conflict between Saudis and IranQatar's oil minister Abdullah bin Hamad Al Attiyah said Thursday there is no conflict between Saudi Arabia and Iran over the outlook for crude oil prices.Attiyah, who was on his way to separate talks with Saudi oil minister Ali Naimi and Iran's oil minister Gholamreza Aghazadeh, suggested there is harmony between the two. Asked if there was conflict, he said 'no, I don't think so.' There have been suggestions that Saudi Arabia and others are prepared to use their excess capacity to protect their market share should other countries continue to produce above their quotas. Iran, on the other hand, is anxious for prices to be supported around current levels. [05] Pilkington posts £55m pretax profitU.K. glass manufacturer, Pilkington PLC, announced Thursday that it made a pretax profit of 55 million pounds in the year ending March 31 1996. The previous year, it made a loss of 248 million pounds.The group's operating profit before exceptional items was at the bottom end of expectations at 196 million pounds. In a statement, Pilkington Chairman Nigel Rudd said it was 'a successful year,' with a 26% increase in operating profit, increased investment and a reduced cost base. But he confirmed analysts' fears of margin pressure. 'In the second half, there was some weakening in prices and volumes, mainly in Europe, but also to some extent in the United States,' he said. 'This was offset by the continued drive to improve manufacturing yields and reduce costs, which outpaced the effect of inflation for a fourth successive year.' [06] KHD announces losses of 606m Deutsche marksIn a statement distributed at a news conference following the creditors meeting, KHD said the total losses arising from mismanagement at its plant- construction arm amounted to 606 million Deutsche marks. It added that it had made provisions against a further 322 million marks in possible losses.How much of this second amount is actually lost will depend partly on the outcome of negotiations currently being conducted with customers in Saudi Arabia, where the cement-making plants at the heart of the fiasco were built. [07] German GDP falls 0.5% in the first quarterGermany's gross domestic product (GDP) shrank by a seasonally and calendar- adjusted real 0.5% in the first quarter of 1996 from the fourth quarter of 1995, the Federal Statistics Office said Wednesday.The agency said that the basic weakness of the economy was exacerbated by the exceptionally severe winter weather. The statistics office rounds quarter-on-quarter changes to the nearest 0.5 percentage point. Germany [08] Controversial UK water company posts 14% rise in pretax profitThe U.K.'s most controversial water company, Yorkshire Water PLC, Wednesday announced a 14% rise in pretax profit for the year through March to 162.2 million pounds, despite costs incurred as it struggled to cope with a drought in its region last summer.Yorkshire's jump in profits will spark fresh political controversy. The company was fined by the sector regulator, OFWAT, two days ago because of its handling of the drought and other weather-related problems. OFWAT said it had failed in 'controlling leakage, minimizing supply interruptions and controlling flooding from sewers.' 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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