So, this week comes to an end soon. It was a short week for holiday makers in the UK because of Monday’s bank holiday. Next week will be a short one because of Labor Day over here in the States. So, to all you vacationers, I wish you well and I hope you had/have fun in your last days of summer!
I will be on holiday of sorts next week, so I will post sporadically. Keep coming back for more of my posts and commentary. I’m going to keep the round-up short today and look at what’s happening at some individual companies of note.
I am doing some foreign press alerts to cover some of the news and I expect to cover GDP and consumer spending later.
Companies
OK, my favourite UK lender (see post), Bradford & Bingley released its horrific earnings today. They reported a loss for H1 2008. Buy-to-let is getting crushed and B&B’s options for financing are narrowed. They had better start making cash or they are not going to making anything.
Bradford & Bingley announces loss – BBC News
Meanwhile, the juggernaut that is China showed us how to get it done. Bank of China posted first-half profits of $6.17 Billion. Remember when Citi and HSBC were clocking $6 Billion? But, let’s not get all starry-eyed here. We have to wait to see how things in China pan out.
China’s throwback banking profits – Market Watch
In other banking news, Commerzbank looks to be about to take on Dresdner. So, you’ll have #2 and #3 in Germany. Germany is way over-banked and consolidationis a good thing for the market and for these companies themselves. This deal makes sense. See my post on it here. The FT thinks it’s a done deal.
CBK to buy Dresdner – FT Alphaville
Commerzbank Moves Closer to Dresdner Deal – Deal Book
Another place with consolidation is the airline business. After the merger announcements in the US, comes a flurry of deals in the UK like BA-Iberia and now Alitalia is looking to get bought out too. Consolidation in this business is long overdo so these will be pretty positive deals.
Air France and Lufthansa in Deal Talks With Alitalia – Deal Book
Lufthansa in Talks to Buy Stake in Belgian Rival – Deal Book
Here’s a believable one. GM is looking to return to profitability by 20010. Hmm… Maybe it’s that Escalade Hybrid or the $50 billion in handouts GM wants. You make the call. Meanwhile, its supplier, Delphi, faces liquidation. We’re not talking Chapter 11 here.
GM eyes return to profit in 2010 – BBC News
GM says automakers deserve $50 billion in federal loans: report – Reuters
Delphi reportedly faces liquidation; bankruptcy financing looms – Market Watch
Delphi liquidation looms large: report – Reuters
That’s it. Have a marvelous weekend.