Tuesday, July 31, 2012

How mentoring can help a small business grow - The Guardian

How mentoring can help a small business grow - The Guardian

I founded my production company Glasshead in 1994 with a view to delivering outstanding quality in television, media and – once the internet was upon us – digital content. Through hard work and persistence we built up a great reputation.

We have been very successful with factual programmes such as My Monkey Baby and The Stuttering School, both for Channel 4. We have also won two interactive BAFTAs, again for Channel 4, most notably for Homework High, a free online service for kids, which also won two BIMA awards.

Our team at Glasshead is highly motivated and very talented. Fulfilling the role of managing director, I was very confident with the quality of creative work the company was doing. However, after we got our feet off the ground, I was concerned that my lack of business background was holding the company back and would prevent us from reaching our full potential.

I heard about a mentoring programme being run by Nesta which was targeted at creative companies like mine. With an impressive lineup of well-known names in the industry as mentors, the opportunity was too good to turn down. I applied with the aim of creating a more formal plan and a clear structure for the day-to-day practices of the company.

After successfully making it onto the programme, we were paired up with mentor Alex Graham, who is CEO of Wall to Wall TV and one of the leading producers of factual and drama-based content.

Mentoring in action

After our first meeting we decided to focus on managing and expanding the business, as well as improving various business processes in the company.

The mentoring relationship worked extremely well. I would usually set the agenda for our meetings, and Alex then worked through this, offering advice and comments that would result in a set of actions for me to complete.

Going through the day-to-day activities with Alex really opened my eyes to aspects of the business that perhaps I didn't pay enough attention to before. For example, I started to make better use of management information – such as company accounts and reports – to help inform strategic decision-making.

Talking to Alex also helped me target priority markets. We started the mentoring programme before the recession hit but even then, there were signs that the economy wasn't heading in the right direction so we identified other potential markets. Alex encouraged me to attend various events in other markets, including Realscreen in Washington, and gave me strategies to make contacts and find potential new avenues of work – all of which proved immensely useful.

The results

As a result of implementing the various strategies and Alex's mentoring, we have worked with five new major clients in the past couple of years including Discovery, Al-Jazeera, CBBC and currently BBC World. Like many other companies our size, we have been affected by the economy and government cuts but I can honestly say that without the mentoring programme it could have been a very different story. We're in business because we diversified at the right time.

One possible growth area for us is animation, where we're working closely with Cosgrove Hall Fitzpatrick Entertainment looking for alternative funding models for future content. As we've been shortlisted for two children's BAFTAs for our previous animation work, this feels like a good fit.

My tips for running a business

As Alex used to constantly tell me; running a media business isn't brain surgery. Make sure you employ people who can sell ideas, in addition to hiring excellent creative staff. Relationships with clients are key so continuously work on that.

Always keep an eye on your overheads and don't delay in reducing them if the projects are slow in coming in. Set budgets, objectives and goals and then break them down to day to day tasks to make them manageable and achievable. Base important company decisions on information from management accounts and cashflow.

Finally, it's important to combine artistic satisfaction and profitability; this can be accomplished by using commercial projects to fund creative work.

Lambros Atteshlis is MD of TV and digital specialist Glasshead

This content is brought to you by Guardian Professional. To receive more like this you can become a member of the Small Business Network here

We'd love to hear your views and thoughts in the comments but please remember not to disclose personal identifiable details.



London 2012: French Olympics 'would be interested in gold not money' says Francois Hollande - Daily Telegraph

Highlighting the fact that his Socialist government detested corporate greed and was solely interested in winning medals, Mr Hollande said: "We don't talk of money, we talk of gold."

Mr Hollande stopped short of directly criticising the British, however, saying: "The London Olympics have been very well organised. I'm not here to be a killjoy or to give lessons to the British. It's not worthy of France."

But Mr Hollande made it clear that he disapproved of corporate clients being given free tickets which they did not use.

Most of the events in London have, so far, been blighted by rows of empty seats.

Mr Hollande also enjoyed a joke at the expense of Prime Minister David Cameron, who had promised to roll out the "red carpet" for French people escaping high taxes.

Pointing to the fact that France was currently beating Britain in the medals table, Mr Hollande said: "The British have rolled out a red carpet for French athletes to win medals. I thank them very much for that, but the competition is not over."

In another dig – this time at the Euroscepticism of Mr Cameron's Conservatives – Mr Hollande also said that "it is the results of Europe that will count in the games.

"We will put the French medals into the Europe pot, so that the British will be happy to be European."

Before losing 2012 to London, Paris failed to win the 2008 Games, which were awarded to Beijing.

Mr Hollande, who replaced the conservative Nicolas Sarkozy as French president in May, attended a number of events involving French athletes on Monday, before returning to Paris.

France has had a successful Olympics so far – with seven medals, including three gold in the pool. Mr Hollande on Monday night watched Yannick Agnel defeat American Ryan Lochte in the 200m freestyle.



MONEY MARKETS-Hopes of ECB bond buying underpin trade - Reuters

Tue Jul 31, 2012 7:59am EDT

* Hopes high ECB will restart bond buying this week

* Only limited relief seen from such a move

* Market prices in 50 pct chance of rate cut by year-end

By Kirsten Donovan

LONDON, July 31 (Reuters) - Markets are pricing in around a 50 percent chance that the European Central Bank will cut interest rates again this year but are likely to react badly if they have to wait longer than a couple of days for it to revive its bond-buying programme.

ECB President Mario Draghi said last week the ECB would do "whatever it takes", spurring expectations that the central bank will reactivate the Securities Market Programme (SMP) at Thursday's policy meeting.

The SMP - which the Bundesbank opposes - has been dormant for months but would be used to buy Spanish and Italian bonds in the secondary market.

The prospect of this has pushed yields on bonds issued by the two struggling countries sharply lower, but the rally is showing signs of running out of steam.

"Some of the confidence generated by Draghi is already fading - you can see that in the fall in Bund yields today," said BNP Paribas rate strategist Matteo Regesta.

"To make sure the relief rally we've seen is not further interrupted, at the very least we need a reactivation of the SMP. An interest rate cut by itself would fall short of what the market is expecting.

Money markets aren't expecting a cut in either of the ECB's two main interest rates this week, or the "bazooka" option of granting the euro zone's rescue fund a banking license, allow it to exchange bonds it buys for fresh cash from the ECB.

The main refinancing rate is at 0.50 percent, while the deposit rate paid to banks who park cash overnight is at zero. A cut in the deposit rate is increasingly priced in from September onwards, which would mean it would turn negative.

"Speculation may be overdone," said Commerzbank rate strategist Benjamin Schroeder.

"There are complications with negative rates but with the comments from the ECB members, the speculation could still run further."

The overnight Eonia rate, which is currently around 10 basis points above the deposit rate, is indicated at around 2 basis points by year-end, suggesting a deposit rate of around minus 10 basis points.

PROMISES

Financial markets are looking for a clear policy response from Draghi at the ECB's Thursday policy meeting .

Nineteen of 24 euro money market traders polled by Reuters said the ECB will soon resume bond buying.

"The bar has been raised very high for the ECB to deliver something," Schroeder said.

But analysts said even another round of bond buying would be unlikely to stabilise markets in the longer term, although it might ease the next few weeks combined with a sharp drop in new bond issuance over the summer period.

"It won't offer lasting relief, but it would allow August to be relatively stable," BNP Paribas' Regesta said.

"The real bazooka, even without activation, would be to grant the (euro zone rescue fund) a banking license... Just the presence of this vehicle with unlimited firepower would bring some peace to primary and secondary markets but we're not going to get that this week." (Editing by John Stonestreet)



My parents never have any money - should I get a job? - The Sun

I HAVE just finished my first year in the Sixth Form but I’ve failed two out of my three subjects.

I’d love to go back and try again but I just can’t concentrate. My parents have no money and are constantly in debt, so I’m worried about it all the time.

I’m a boy of 16 and all my life my parents have struggled with money. My mum is on the minimum wage and my dad works long hours for low pay.

My parents have always taken out loans to buy things for Christmas and birthdays. One December I found my mum out in the cold in the back garden crying about money.

My parents inherited a large amount of money when my Nan died. They paid off all their debts and got a better car. It was the best time in my life. I even forgot what it was like not to have any food or drink in the house for over a week.

Now that money is all gone. I don’t know how they have managed to spend it all but they have.

My parents are borrowing money again from family and friend just to pay off debts but then they owe even more.

My mum loves playing bingo. She spends at least £40 a week playing online and goes out to bingo twice a week and spends between £40 and £60.

It’s horrible at school. I live in a poor area but my school is in a wealthy area and it gets on my nerves to see everyone else dressing in nice clothes and with money all the time.

I want to drop out of education and get a full-time job, but I don’t like the thought of working five or six days a week for minimum wage for the rest of my life, like my parents.

DEIDRE SAYS

Go back to your school and ask to talk to the head of sixth form about whether you could return and do resits. I know it’s school holidays now but you should be able to get hold of someone.

Explain what’s been going on at home and how worried you are. They should be able to give you some support, and a quiet place to study away from the problems at home.

If you can’t go back, look for a job which involves training at the same time as being paid. Your local Job Centre can tell you about apprenticeships and other opportunities.

Get your dad on his own and explain that you think your mum needs help with her addiction to bingo. I’m emailing my leaflet about living with a gambler for you to pass to him.

You also need support for yourself. Get Connected will help you sort this out (0808 808 4994, www.getconnected.org.uk).

Good luck and please let me know how you get on.

Today's Daily Drama is about a woman who cheated on her fella with her friend's boyfriend. Do you think you should always confess if you’ve cheated or does honesty mean more heartache? Tell me on my Facebook page today.



Money well spent: Teenager who fell over while carrying Olympic torch is bought a new prosethetic limb by Britain’s biggest Euromillions winners - Daily Mail
  • Kieran Maxwell had his left leg amputated after getting rare and aggressive cancer Ewings Sarcoma
  • Last month while walking with his current prosthetic limb he fell while carrying the Olympic torch
  • Euromillionaires Colin and Chris Weir pay five-figure-sum for a new lightweight leg for the 13-year-old
  • 'He'll be able to walk, run and climb just like his friends,' his emotional mum Nicola said today

By Martin Robinson

|

A 13-year-old who lost a leg to cancer will get a new life-changing prosthetic limb from Britain's biggest-ever lottery jackpot winners.

Heartrendingly Kieran Maxwell had to be helped from the ground after he fell carrying the Olympic torch last month in Bishop Auckland, County Durham, because of his current heavy artificial leg.

But now he will be able to 'walk, run and climb just like his friends,' his emotional mother Nicola said today, thanks to Euromillionaires Colin and Chris Weir.

Scroll down for video

Brave: Kieran Maxwell carrying the Olympic Flame on the Torch Relay soon before he stumbled and fell because of his current prosthetic leg

Brave: Kieran Maxwell carrying the Olympic Flame on the Torch Relay soon before he stumbled and fell because of his current prosthetic leg but hopefully those problems will soon be over for him

Despite undergoing gruelling chemotherapy the brave 13-year-old had his left leg amputated below the knee in March last year.

He was diagnosed with the rare and aggressive cancer called Ewings Sarcoma, which affects fewer than 30 children a year, in October 2010.

Since then Kieran has been determined to remain active but his current replacement limb is heavy and slows him down, so his parents Nicola and Alistair decided to try to raise the cash to buy him a lighter model from the US.

But Euromillions winners Colin and Chris Weir from Ayrshire - who scooped 161 million in a draw a year ago - heard about Kieran's battle and stepped in with a five-figure donation to buy the new leg outright.

And Kieran is said to have 'screamed with delight' at the life-changing news and will have his leg within six weeks.

The unexpected donation came after the grandmother of Kieran’s school friend, who lives in the same village as the Weirs, contacted them to ask if they could help.

Happy: EuroMillions lottery winners Chris Weir and her husband Colin Weir say it is a privilege to spend a little of their 161m on Kieran

Happy: EuroMillions lottery winners Chris Weir and her husband Colin Weir say it is a privilege to spend a little of their 161m on Kieran

Hero: His mother and family are incredibly proud of the happy teenager who lost a leg to cancer but will now get a new limb

Hero: His mother and family are incredibly proud of the happy teenager who lost a leg to cancer but will now get a new limb

Mum Nicola Maxwell said: 'Kieran is our hero and we have been touched by all the support and kindness we’ve received since he was diagnosed with cancer.

'We thought it was going to take a long time to raise the money for a new prosthetic leg, but this donation from Chris and Colin means Kieran can get his new leg within six weeks. We can’t explain how much this means to us and Kieran.

'He screamed when he heard the news because it means that not only will he be able to walk again like all his friends, he will be able to run and climb too.

'We can’t thank the Weirs enough, because this will really change his life.

Heartbreaking: Kieran's bravery was clear for all to see when he fell while holding the Olympic torch because of his current artificial limb. He got up and dusted himself off in yet another incredible show of strength

'Kieran started yelling and dancing around when he heard. He couldn't believe it. I am still pinching myself.

'What they have done for Kieran will be a small drop in the ocean for them but for him it will change his life.

'He can go back to being a normal boy. He can be himself. Words cannot describe what they have done.'

The Lottery winners paid tribute to his bravery and said it was privilege to help.

Mrs Weir said: 'When we heard about Kieran and his family’s fantastic efforts to raise money for a new prosthetic leg, we had to help.

'It is a privilege to support him and, with this new leg, we hope he will continue to be determined to remain active and live life to the full.'

Kieran's parents will continue to fundraise, but will now hand over proceeds to the Toma Fund, which helps teenagers with cancer. 

Here's what other readers have said. Why not add your thoughts, or debate this issue live on our message boards.

The comments below have been moderated in advance.

Aww how lovey :-)

Nice to see such kindness being displayed. How much they won and how much they donate is irelevant. To Kieran's family it is priceless.

Great gesture...very kind..

If money can buy you everything,then this lovely couple deserve the world! To share there luck like they have, i wish you every happiness x

Restores your faith in some folk. Heartwarming to see...

what a wonderful selfless gesture to make to a wonderful, inspirational young boy. big,big smiles all round even from my grumpy teenage kids :-))

There really are some lovely people in this world.

How kind and wonderful.xxx

I hope the people who have millions and live useless meaningless lives take a tip from this lovely couple, help people instead of wasting millions on the nonsense you think are important like cars and clothes.

Good news and hope they do more good deeds

The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline.


Mitt Romney Ohio Ad Stars Business Owner Who Relied Heavily On Government Contracts - Huffington Post

Mitt Romney Ohio Ad Stars Business Owner Who Relied Heavily On Government Contracts - Huffington Post

WASHINGTON -- The star of the most recent Mitt Romney campaign ad criticizing President Barack Obama for arguing that government can play a constructive role in helping business has major business dealings with government entities.

Dennis Sollmann, the owner of Sollmann Electric Company, appears in a Romney web ad released Monday morning that plays off the president's now infamous "you didn't build that" line.

“I mean, I’m thinking, 'You’ve got to be kidding me,'" Sollmann says in the ad. "He was trying to say: ‘Hey, you didn’t build that business on your own. The government helped you build it.’ And that’s what ticked me off more than anything. Mr. President, unfortunately you have no idea how we here in Midwestern Ohio have to try to run a small business from daylight till night."


An electric construction company in Sidney, Ohio, Sollmann Electric has done work on commercial, residential and industrial properties. It has also serviced "hospitals, government and educational" facilities -- many of which rely on taxpayer funding. Neither Sollmann nor his company returned a request for comment as to how much money in government contracts they have earned. But a quick Google search turned up several instances in which the company either sought out or worked directly with government entities.

According to notes from a Jan. 26, 2006 meeting of the Ohio School Facilities Commission, Sollmann Electrical Company was rewarded a $915,117 contract for work in the Trotwood-Madison City school district.

Notes from a May 31, 2007 meeting of the same body show that Sollmann Electrical Company placed a $1,080,700 bid to do work in the Dayton County School District. This was the lowest bid offered and the commission recommended that it be finalized.

According to notes from a May 25, 2010 meeting of the School Facilities Commission, meanwhile, Sollmann Electrical Company was awarded a $1,689,829 contract for work in the Miami East school district.

Sollmann was also a contractor for work on the Horace Mann School in Dayton, Ohio, according to an Ohio School Facilities Commission form filled out in April 2008. Horace Mann is a public school, an official there said.

In November of 2011, Sollmann made a $274,792 bid with the Ohio Department of Administrative Services to do work on a building expansion at Rhodes State College, another public school.

The first project listed on Sollmann's own website is the work it did building Memorial Middle and High School in St. Marys, Ohio. An official at the school confirmed that it is a public school that was recently completely rebuilt.

The Obama campaign has argued that Romney's attacks over the "you didn't build that" line are woefully unfair, distorting the actual meaning of the president's words.

“The latest ad out of the Romney campaign once again blatantly takes the President's words out of context, showing their campaign will do and say anything,” Jessica Kershaw, press secretary of Obama For America - Ohio, told the Dayton Daily News.

The Obama campaign may take comfort in knowing that, through these web ads, the Romney campaign is seemingly making its point for them. This is not the first time that a businessman tapped by the Romney campaign to whack the president for acknowledging the government's role in a company's economic success has, himself, relied on the government to help with his business. It was reported last week that Jack Gilchrist, the owner of Gilchrist Metal Fabricating in Hudson, N.H. who starred in another Romney ad, had received $800,000 in tax-exempt revenue bonds from the New Hampshire Business Finance Authority in 1999, as well as sub-contracts from the U.S. Navy in 2008.

  • Romney Ad: Obama Attacks Success

  • Romney Ad: 'Obama Can't Run On That Record'

  • Romney Ad: 'Shame On You'

  • Romney Ad: Promises to Voters in North Carolina

  • Romney Ad: Standing Up to China

  • Romney Ad: 'We Are Not Doing Fine'

  • Romney Ad Looks at Obama's 2008 Promises

  • Romney Ad For Iowa: Goal Is a Balanced Budget

Also on HuffPost:



Business booming for HSBC as they rake in £44m per DAY in profit - Daily Mirror

HSBC has made more than £500 every SECOND this year... despite being hit by three scandals.

Britain’s biggest bank announced profits jumped 11% to £8.1billion between January and June.

The bank has set aside more than £1.2billion to cover looming compensation for mis-selling payment protection insurance and investments and a hefty fine for allowing money laundering.

HSBC chief executive Stuart Gulliver said: “It is right that we be held accountable for past shortcomings. We are profoundly sorry for our mistakes, and are committed to putting them right.”

The recent money laundering controversy in which drug cartels and potential terrorists banked with HSBC is expected to cost the bank £445million or more.

Bosses warned the final punishment by US authorities could be “significantly higher” than that after a scathing report found it shifted £4.5billion in suspicious funds from Mexico, and billions more from countries such as Iran, Syria and Russia.

Tory Lord Green has been caught up in the scandal as he was HSBC group executive chairman at the time – before he was made Trade Minister by PM David Cameron.

HSBC also increased the expected cost of settling claims by customers mis-sold PPI by another £340million in the second quarter, taking the total for the first half of 2012 to £637million.

The scandal could cost HSBC more than £1billion in total.

The bank announced today it also expects to pay around £150million in compensation for mis-selling complicated investment products to small and medium-sized businesses.

HSBC is making savage cuts to save money including axing about 28,000 staff worldwide. It also closed 27 UK bank branches this year.

Owen Tudor, of the Robin Hood Tax campaign, said: “Coughing up compensation for the latest scandal is a sticking plaster – banks continue to profiteer at the public’s expense.

Despite the recession, business is booming for banks so it is clear they can afford to pay more for the damage they have caused our economy and society.”

Putting profits above all else can be very, very costly - business editor Graham Hiscott's analysis

NOT long ago, HSBC was deemed one of the better banks.

It hadn’t needed a taxpayer bailout, it was defying the economic gloom and its reputation was intact.

The first two of those are still true, but the last has taken a serious knock. It took a £1.27billion hit for scandals in the first half of the year, and the figure could soar with a punishing money laundering penalty expected and a possible rate rigging fine.

The fact that amid all this it still made £8billion is, quite simply, staggering.

HSBC’s Asian arm is storming and today’s results will do nothing to dampen speculation that it will move its HQ that way, too.

We need HSBC to do well, it’s a London-based success with more than 200,000 shareholders.

But we also need it to remember its roots, to remember individual customers even though it’s a banking Goliath, and remember that slack rules and an obsession about profits above all else can prove very, very costly.



Stocks to watch at noon on Tuesday - News.com.au

STOCKS to watch on the Australian stock exchange at noon on Tuesday:

AQA - AQUILA RESOURCES LTD - up 20 cents, or 9.90 per cent, at $2.22

The environmental authority supports Aquila Resources' proposed port for its $6 billion iron ore project in Western Australia's Pilbara region.

BRG - BREVILLE GROUP LTD - up six cents, or 1.28 per cent, at $4.76

Shares in kitchen appliance maker Breville Group are higher after it said it expects full year earnings to grow by up to 40 per cent.

CTX - CALTEX AUSTRALIA LTD - up nine cents, or 0.64 per cent, at $14.21

Caltex Australia says it is confident of getting investor support for its $300 million capital raising despite a ratings agency casting doubt on its balance sheet last week.

HDF - HASTINGS DIVERSIFIED UTILITIES FUND - down one cent, or 0.39 per cent, at $2.54

The Takeovers Panel has rejected a request to look into aspects of one of the two takeover bids for energy infrastructure investor Hastings Diversified Utilities Fund (HDF).

MAQ - MACQUARIE TELECOM GROUP LTD - up 60 cents, or 7.32 per cent, at $8.80

Business-only telecommunications provider Macquarie Telecom has upgraded its earning guidance for the 2012 financial year by about 10 per cent.

MTS - METCASH LTD - up three cents, or 0.89 per cent, at $3.38

Grocery wholesaler Metcash has paid $46.5 million to take complete ownership of hardware chain Mitre 10.

ORG - ORIGIN ENERGY LTD - up 38 cents, or 3.28 per cent, at $11.95

Higher commodity prices have driven a three per cent rise in Origin Energy's full year revenue, despite lower production of gas.



World stocks rise on continued hopes of ECB action - The Guardian

BANGKOK (AP) — World stock markets rose again Monday as expectations remained high for strong European Central Bank action to stem the continent's chronic debt crisis.

Sentiment was also helped by U.S. second quarter growth not slowing as much as feared. The world's No. 1 economy grew just 1.5 percent in the April-June quarter after 2 percent growth the previous quarter but some analysts had predicted a bigger slowdown.

Markets are pregnant with speculation that the ECB will resume buying government bonds to lower the borrowing costs of struggling countries such as Spain and take other major steps to support the region's economy.

Investors hope such moves would prevent Spain from being forced to seek a bailout that would be much more expensive than earlier rescues of Portugal, Greece and Ireland. A major Spanish crisis could imperil the euro currency union and in turn tip the world economy into recession.

Global markets were roiled early last week as Spain's borrowing costs soared but rallied after ECB chief Mario Draghi on Thursday vowed that the central bank was ready to do what it takes to keep intact the euro currency shared by 17 European nations. A day later, German Chancellor Angela Merkel and French President Francois Hollande said they too would safeguard the euro. The ECB's next scheduled meeting is Thursday.

Meanwhile, U.S. Treasury Secretary Timothy Geithner will meet Monday with Draghi and Germany's finance minister to discuss the challenges facing Europe and the global economy.

"There is high expectation that the European Central Bank may reactivate its bond purchase program again to prevent Spain from evolving into a full-blown crisis," analysts at Singapore's DBS Bank said in a report.

In morning European trade, Britain's FTSE 100 was up 0.4 percent at 5,649.78 and France's CAC 40 added 0.7 percent to 3,303.34. Germany's DAX rose 0.7 percent to 6,733.01. Wall Street was poised to lose ground with Dow futures off 0.3 percent and broader S&P 500 futures down 0.4 percent.

Japan's Nikkei 225 stock average closed up 0.8 percent at 8,635.44 and Hong Kong's Hang Seng jumped 1.6 percent to 19,585.40. Australia's S&P/ASX 200 climbed 0.9 percent to 4,245.70 and South Korea's Kospi rose 0.8 percent to 1,843.79. China's Shanghai Composite fell 0.9 percent to 2,109.91.

In energy trading, benchmark crude for September delivery was up 23 cents at $90.35 a barrel in electronic trading on the New York Mercantile Exchange. The contract added 74 cents on Friday to finish at $90.13 per barrel in New York.

In currencies, the euro was down 0.3 percent at $1.227. The dollar fell 0.3 percent to 78.26 yen.



STOCKS NEWS SINGAPORE-Sakari Resources up after Q2 result - Reuters UK

Tue Jul 31, 2012 4:37am BST

Shares of Sakari Resources Ltd rose to the highest in nearly two weeks after the coal producer posted a 66 percent increase in its second-quarter net profit from the previous three months on the back of lower costs and higher output.

Sakari shares gained as much as 4.7 percent to S$1.33, the strongest level since July 19. Sakari stock has fallen 28 percent so far this year.

Nearly 28 million Sakari shares changed hands, 1.2 times the average full-day volume over the past 30 days. Sakari was among the top traded stocks by both value and volume in the Singapore market.

The company turned in net profit of $23.9 million for the quarter ended June, up from $14.5 million in the preceding three months. But net profit fell 39 percent from a year earlier.

"Year-on-year, coal prices had fallen quite a lot and we had expected the weaker performance. But the quarter-on-quarter improvement was actually a lot stronger than what we expected," said Carey Wong, an analyst at OCBC Investment Research.

"The key reasons for the improvement in margins is that they managed to sustain the average selling prices, and they have also managed to reduce cash costs slightly faster than what we expected."

1135 (0335 GMT) (Reporting by Eveline Danubrata in Singapore; eveline.danubrata@thomsonreuters.com)

************************************************************

11:18 STOCKS NEWS SINGAPORE-Deutsche cuts COSCO, Yangzijiang target prices

Deutsche Bank cut its target prices for COSCO Corp Singapore Ltd and Yangzijiang, citing poor outlook for the Chinese shipbuilding sector.

Shares of Yangzijiang were 0.5 percent lower at S$1.005 by 0305 GMT. They have risen 10.4 percent so far this year. COSCO was down 0.5 percent at S$0.955. It has gained 9 percent this year, compared with the FT ST Industrial Index's 13.7 percent rise.

"Operating conditions and outlook in the Chinese shipbuilding sector remain challenging," due to declining new orders, falling ship prices, weak vessel financing and intensifying competition amongst Chinese yards, said Deutsche Bank in a report.

The brokerage cut its target price for Yangzijiang to S$1.10 from S$1.20, kept its 'hold' rating, and lowered its new order assumptions in 2012-2014 by 13-33 percent.

It also lowered COSCO's target price to S$1.00 from S$1.10, maintained its 'hold' rating and cut its new order assumptions for 2012-2013 by 11-17 percent. As a result, it trimmed its net income estimates for the shipbuilder by 9.1-9.4 percent over the same period.

1111 (0311 GMT)

(Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com)

************************************************************

09:56 STOCKS NEWS SINGAPORE-OCBC raises target on Tiger Airways

OCBC Investment Research raised its target price on Tiger Airways Holdings Ltd to S$0.83 from S$0.76 and maintained its buy rating, citing the Singapore budget carrier's improved operations.

Tiger shares were up 0.7 percent at S$0.695 and have risen around 9 percent so far this year versus the 15 percent gain in the FT ST Small Cap Index.

Tiger's passenger yields in its fiscal first quarter rose 9 percent from a year earlier, while the fall in average jet fuel prices provided some cost relief, OCBC noted.

OCBC said the first-quarter operating profit posted by Tiger's Singapore operations bodes well for the rest of the 2013 fiscal year as it is no longer burdened with excess aircraft, allowing it to moderate its capacity expansion in 2013.

Tiger's Australian unit is primed for recovery with the ramping up of its operations to 60 sectors a day, after being hit by flying restrictions, and the expected peak travel season later in the year, OCBC said.

For a related story, click

0946 (0146 GMT)

(Reporting by Eveline Danubrata in Singapore; eveline.danubrata@thomsonreuters.com)



Asian stocks push higher as ECB hopes build - The Guardian

KELVIN CHAN

AP Business Writer= Hong Kong (AP) — Asian stocks pushed higher on Monday as expectations continued to build that European policymakers will unleash powerful measures to battle the continent's debt crisis.

Japan's Nikkei 225 stock average rose 0.6 percent to 8,691.60 and Hong Kong's Hang Seng gained 0.8 percent to 19,748.73. South Korea's Kospi rose 1.4 percent to 1,868.92 while Australia's S&P/ASX 200 climbed 0.8 percent to 4,280.00. Benchmarks in Taiwan, Thailand, Indonesia and New Zealand also rose.

Investors are pinning their hopes on a European Central Bank meeting later this week where many expect ECB President Mario Draghi to announce big plans to support the euro, following his comments last week that the bank is "ready to do what it takes" to save the beleaguered currency. Spain's borrowing costs have surged, raising the risk that one of Europe's biggest economies will need a potentially unaffordable bailout that would strain the euro currency union.

"It's all about the ECB at the moment," strategist Stan Shamu of IG Markets in Melbourne, said in a commentary. "Mr Draghi has made people believe we will see a strong policy response to the rise in peripheral European bond yields," Shamu said. He cautioned that the chances of investors being disappointed following Thursday's meeting are very high.

China's Shanghai Composite edged 0.1 percent lower to 2,107.25 as investors appeared unimpressed by a government announcement the day before that it will launch projects to attract private investments in energy, health and other industry sectors in an attempt to reverse an economic slump.

U.S. Federal Reserve policymakers are also meeting this week, adding to hopes of more monetary stimulus for the world's biggest economy.

On Wall Street on Monday, U.S. stocks fell as investors took a more wary approach, waiting for action from Europe's leaders to follow their talk. The Dow Jones industrial average fell less than 0.1 percent to close at 13,073.01. The broader Standard & Poor's 500 also edged down less than 0.1 percent to 1,385.30, while the Nasdaq dropped 0.4 percent to 2,945.84.

In currencies, the euro rose to $1.2289 from $1.2261 in late trading Monday. The dollar weakened to 78.19 Japanese yen from 78.21 yen.

Oil prices rose. Benchmark crude for September delivery was up 21 cents to 89.99 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell 35 cents to $89.78 on Monday. In London, Brent crude was up 10 cents at $106.30 on the ICE Futures exchange.



Four Flintshire council staff suspended in financial probe - BBC News

Four council staff have been suspended over alleged operational and financial irregularities, it has emerged.

The staff are employed by Flintshire's Streetscene section which looks after refuse collection, street cleaning and grass cutting.

North Wales Police said they had been informed.

Council chief executive Colin Everett said interim arrangements had been made to ensure "continuity of service until the investigation is complete".

Mr Everett added no further information could be provided to avoid "risks of identifying the individuals involved or prejudicing the investigation".



Morning business round-up: HSBC sets aside $2bn - BBC News

What made the business news in Asia and Europe this morning? Here's our daily business round-up:

HSBC has put aside $2bn (£1.3bn) to cover potential mis-selling claims and money-laundering fines as it announces a sharp rise in first-half profits.

The bank is setting aside $1.3bn to cover UK mis-selling compensation and $700m for any US fines following the money laundering accusations.

Chief executive Stuart Gulliver described the bank's failure of anti-money laundering controls as "shameful" and "embarrassing".

Pre-tax profit for the first six months of 2012 was $12.7bn, up 11% on the $11.5bn the bank made a year ago. But that figure was boosted by $4.3bn of asset sales in the US.

Investors concerns about Italy and Spain seem to have eased, as comments from European leaders suggest authorities are preparing measures to help the debt-laden countries.

Business headlines

Yields on Spain's 10-year bonds, which indicate its cost of borrowing, dropped to 6.5% in open market trading from last week's record high of 7.5%. A higher interest rate, or yield, indicates greater investor nervousness.

Italy meanwhile sold 5.48bn euros (£4.2bn) at a lower interest rate than in June. Five-year bonds were sold with an interest rate of 5.29%, compared with 5.84% in June, and 10-year bonds at 5.96%, significantly below June's 6.19%.

There were results from two of Europe's biggest airlines, Air France-KLM and Ryanair.

Losses widened at Air France-KLM to 895m euros ($1.1bn, £700m) in the three months to June, against a 197m euro loss a year earlier.

It took a one-off charge of 368m euros to cover redundancy payments as part of plans to cut 10% of its workforce.

Revenues rose 4.5% in the quarter to 6.5bn euros, with the number of passengers up by 2.4%.

However, the carrier saw a drop in its freight business due to the weak economic backdrop in Europe.

Fuel costs hit Ryanair's profits, knocking 29% off net profit for the three months to the end of June.

Ne profit was 99m euros ($122m; £77m), down from the 139m euros the company made a year earlier.

The Irish airline said traffic growth and an increase in average air fares helped to increase revenue by 11% to 1.28bn euros.

In Asia, Japanese output fell for the third straight month, prompting renewed fears the economy is losing steam.

Factory output dipped 0.1% in June, compared to the previous month. It follows a 3.4% decline in May.

The fall was mainly due to lower output in the machinery, iron and steel sectors, data showed.

Looking ahead, two of the world's biggest technology firms , Samsung and Apple, will face each other in court in California later in one of the biggest trials of its kind.

The tech firms have accused each other of intellectual property infringement.

Billions of dollars of payments could be triggered from one business to the other and sales bans imposed if the jury finds one or both parties guilty.

Submitted documents and testimony are also likely to throw fresh light on decision making processes and deals made by the two tech firms with others.

Today's Business Daily programme from the BBC World Service looks at the climate change policies of America's biggest oil company, Exxon Mobil.


Monday, July 30, 2012

Winning new business: The Chemistry Group - The Guardian

Winning new business: The Chemistry Group - The Guardian

Our new nutritional employee programme has created lots of sales opportunities for our small business. All employees say the programme increases their productivity and energy levels plus their ability to support clients.

The Chemistry Group, a management consultancy, solves complex people problems in some of the UK's largest companies. The business was thriving, yet a new nutritional programme has rocketed its pipeline further.

Roger Philby, Chemistry's CEO and founder, explains: "I noticed in 2010 that we always started the year in greater shape, pipeline-wise, than we finished. We analysed it and polled our team; they were tired, overworked and eating badly on the run. They were going like the clappers in the first half of the year and drained in the second".

Chemistry worked with nutritionist Lesley McLaughlin to implement a programme that has dramatically changed the business. Chemistry uses its unique 'pod coaching' system to encourage behaviour change - nudges, reward and recognition are constant.

Each employee has one-to-ones with Lesley, providing information unique for them. Junk food was removed from the office, replaced with deliveries of healthy food. Cookery lessons, a weekly in-office 'Come Dine With Me' has two team members cooking for the rest, while quick, nutritious meals are prepared daily for all. People are voluntarily exercising more, plus feel healthier and energised.

There is a correlation between nutrition and sales pipeline results, and a survey shows overwhelming employee support. No other changes were made.



Stocks decline ahead of Geithner-Draghi meeting - USA Today

The Dow Jones industrial average and the broader Standard & Poor's 500 index were higher in late morning trading and then turned downward close to noon. The tech-laden Nasdaq composite index, which also had started out positive, reversed course and was slightly lower.

European Commission released a report Monday showing that economic sentiment dipped, with pessimism growing in both the industrial and service sectors. Also Monday, Spain's National Statistics Institute said its economy contracted for a third straight quarter.

Most of the attention Monday will continue to center on Europe, with Geithner meeting ECB's chair Draghi and Germany's finance minister to discuss the challenges facing Europe and the global economy.

The spotlight this week won't just be on Europe: Federal Reserve policymakers meet this week, and there are growing expectations that in light of waning economic growth, the Fed may announce a new monetary stimulus. The Bank of England also holds its monthly rate-setting meeting.

"With the rally we have had, the potential is for the central bankers to disappoint," said Louise Cooper, markets analyst at BGC Partners. "This Draghi-inspired rally may peter out if the central bankers fail to deliver."

Stocks, as well as the euro and the bond prices of Spain and Italy, had been buoyant since ECB president Draghi said last Thursday that the bank "is ready to do what it takes to preserve the euro. Believe me, it will be enough."

In the euro zone

Countries that use the euro currency: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia, Spain

Those comments raised expectations that, at the very least, the ECB will ramp up its bond-buying program in the hope of keeping a lid on Spanish and Italian borrowing rates. The recent sharp rise in Spain's interest rates raised concerns that the 17-country eurozone hasn't the capacity to bail out its fourth-largest economy, and raised the specter of Italy needing financial help, too.

Making sure that Spain and Italy can continue tapping financial markets for cash appears to be the priority of policymakers despite a warning from Germany's central bank, the Bundesbank, that the line between monetary and fiscal policy should not be blurred.

Both Spain and Italy have seen their borrowing rates in bond markets ease since Draghi's comments.

The yield on Spain's 10-year bonds has dropped significantly below the dangerous 7% level to around 6.60%, while Italy was able to raise a bigger than expected €5.5 billion ($6.77 billion) in a round of auctions Monday. Crucially, the yield on the 10-year bond fell to 5.96% from 6.19% the last time it was offered, a signal of improving investor appetite.

"There is no doubt that policy action is required given the escalation in the crisis and we think it unlikely that Draghi would endanger his reputation and credibility by not fulfilling expectations," said Neil MacKinnon, chief global strategist at VTB Capital.

In Europe, Germany's DAX rose 0.8% to 6,743 while the CAC-40 in France was 0.6% higher at 3,299. The FTSE 100 index of leading British shares was up 0.9% at 5,677.

The euro was down 0.5% to $1.2252 after figures from the European Union showed economic confidence in the eurozone fell to a 34-month low in July. News that the Spanish economy contracted a further 0.4% in the second quarter of the year, its third straight quarterly decline, also weighed it down.

Earlier in Asia, Japan's Nikkei 225 stock average closed up 0.8% at 8,635.44 and Hong Kong's Hang Seng jumped 1.6% to 19,585.40. Australia's S&P/ASX 200 climbed 0.9% to 4,245.70 and South Korea's Kospi rose 0.8% to 1,843.79. China's Shanghai Composite fell 0.9% to 2,109.91.

In energy trading, benchmark crude for September delivery was down 30 cents at $89.83 a barrel in electronic trading on the New York Mercantile Exchange.



Morning business round-up: HSBC sets aside $2bn - BBC News

What made the business news in Asia and Europe this morning? Here's our daily business round-up:

HSBC has put aside $2bn (£1.3bn) to cover potential mis-selling claims and money-laundering fines as it announces a sharp rise in first-half profits.

The bank is setting aside $1.3bn to cover UK mis-selling compensation and $700m for any US fines following the money laundering accusations.

Chief executive Stuart Gulliver described the bank's failure of anti-money laundering controls as "shameful" and "embarrassing".

Pre-tax profit for the first six months of 2012 was $12.7bn, up 11% on the $11.5bn the bank made a year ago. But that figure was boosted by $4.3bn of asset sales in the US.

Investors concerns about Italy and Spain seem to have eased, as comments from European leaders suggest authorities are preparing measures to help the debt-laden countries.

Business headlines

Yields on Spain's 10-year bonds, which indicate its cost of borrowing, dropped to 6.5% in open market trading from last week's record high of 7.5%. A higher interest rate, or yield, indicates greater investor nervousness.

Italy meanwhile sold 5.48bn euros (£4.2bn) at a lower interest rate than in June. Five-year bonds were sold with an interest rate of 5.29%, compared with 5.84% in June, and 10-year bonds at 5.96%, significantly below June's 6.19%.

There were results from two of Europe's biggest airlines, Air France-KLM and Ryanair.

Losses widened at Air France-KLM to 895m euros ($1.1bn, £700m) in the three months to June, against a 197m euro loss a year earlier.

It took a one-off charge of 368m euros to cover redundancy payments as part of plans to cut 10% of its workforce.

Revenues rose 4.5% in the quarter to 6.5bn euros, with the number of passengers up by 2.4%.

However, the carrier saw a drop in its freight business due to the weak economic backdrop in Europe.

Fuel costs hit Ryanair's profits, knocking 29% off net profit for the three months to the end of June.

Ne profit was 99m euros ($122m; £77m), down from the 139m euros the company made a year earlier.

The Irish airline said traffic growth and an increase in average air fares helped to increase revenue by 11% to 1.28bn euros.

In Asia, Japanese output fell for the third straight month, prompting renewed fears the economy is losing steam.

Factory output dipped 0.1% in June, compared to the previous month. It follows a 3.4% decline in May.

The fall was mainly due to lower output in the machinery, iron and steel sectors, data showed.

Looking ahead, two of the world's biggest technology firms , Samsung and Apple, will face each other in court in California later in one of the biggest trials of its kind.

The tech firms have accused each other of intellectual property infringement.

Billions of dollars of payments could be triggered from one business to the other and sales bans imposed if the jury finds one or both parties guilty.

Submitted documents and testimony are also likely to throw fresh light on decision making processes and deals made by the two tech firms with others.

Today's Business Daily programme from the BBC World Service looks at the climate change policies of America's biggest oil company, Exxon Mobil.



Global stocks lifted by stimulus hopes; euro falls - Reuters UK

NEW YORK | Mon Jul 30, 2012 7:39pm BST

NEW YORK (Reuters) - Global stocks rose on Monday on expectations that the European Central Bank and the U.S. Federal Reserve will take measures to support struggling economies when they meet this week, but worries that the central banks will act less aggressively than hoped drove down the euro against the dollar.

There are strong expectations that the ECB will act forcefully to rein in the euro zone debt crisis when it meets on Thursday, after ECB President Mario Draghi's comments last week that the central bank would do whatever it takes to preserve the euro.

But there is more scepticism about what the Fed will do at its two-day meeting that begins on Tuesday. Many economists believe the U.S. central bank will wait until September to provide more stimulus to a faltering U.S. economic recovery.

U.S. Treasury Secretary Timothy Geithner and Germany's finance minister, Wolfgang Schaeuble, in a joint statement issued after their meeting on Monday, emphasized "the need for policymakers to adopt and implement all reform steps required to deal with the financial crisis and crisis of confidence."

The euro fell broadly, hitting a record low against the Australian dollar, on worries that the ECB may disappoint investors hoping for more measures to contain the debt crisis.

The euro lost 0.6 percent to $1.2241, retreating from a three-week high of $1.2390 hit on Friday.

"Clearly, if nothing is announced, that would be a massive disappointment," said Callum Henderson, global head of FX research for Standard Chartered Bank in Singapore. "But there is an expectation that we're going to see something meaningful on Thursday."

Inflows into safe-haven German government bonds slowed, keeping prices close to three-week lows.

"Certainly everyone thinks that Europe is going to come out with this big bazooka, and they also think the Fed will launch, so therefore the market is going to stay up here," said Ken Polcari, managing director, ICAP Equities in New York.

Speculation has grown that the Fed will do more to bolster the recovery after data on Friday showed U.S. second-quarter gross domestic product expanded at a 1.5 percent annual rate, the weakest pace since the third quarter of 2011.

Bank of America-Merrill Lynch analysts said in a research note that the Fed should extend its forward guidance language on maintaining ultra-low rates to "at least late 2015" at this week's meeting. They said while there is a moderate chance that additional quantitative easing, it is more likely the Fed will announce a third round of asset purchases in September.

The MSCI world equity index rose 0.4 percent, extending gains for a third straight day.

The FTSEurofirst 300 advanced 1.6 percent to 1,072.97 points, its highest close since April 2, having soared more than 5 percent in three days.

U.S. STOCKS RETREAT, BONDS RISE

But Wall Street slipped after its best two-day run this year, with the three major U.S. stock indexes touching session lows as investors awaited action from the ECB and the Fed.

The Dow Jones industrial average was down 19.23 points, or 0.15 percent, at 13,056.43. The Standard & Poor's 500 Index was down 2.86 points, or 0.21 percent, at 1,383.11. The Nasdaq Composite Index was down 14.60 points, or 0.49 percent, at 2,943.49.

Germany's Bundesbank is opposed to a resumption of the ECB's secondary market bond buying as well as granting the euro zone rescue funds a banking license, which would give them more firepower to tackle the debt crisis.

Brent crude fell 52 cents to $105.95 a barrel, while U.S. crude slipped 59 cents to $89.54.

Spot gold declined 0.3 percent to $1,618.09 an ounce.

In the U.S. bond market, the benchmark 10-year U.S. Treasury note rose 11/32, with the yield at 1.507 percent.

"Treasuries are likely to remain locked in lower rate ranges as U.S. and global growth continues to disappoint," said William O'Donnell, managing director and head of U.S. Treasury strategy at RBS in Stamford, Connecticut.

(Additional reporting by Anirban Nag in London, Blaise Robinson in London, and Chuck Mikolajczak, Wanfeng Zhou and Ellen Freilich in New York; Editing by Kenneth Barry, Jan Paschal and Leslie Adler)



GLOBAL MARKETS-World stocks rise on stimulus hopes; euro falls - Reuters

Mon Jul 30, 2012 12:24pm EDT

* European shares rally as ECB, Fed set to meet this week

* Euro slides on worries stimulus measures may disappoint

* U.S. stocks slip, reversing morning's gains

* Oil drops, gold falls

By Caroline Valetkevitch

NEW YORK, July 30 (Reuters) - Global stocks rose on Monday on expectations of stimulus measures by the European Central Bank and the U.S. Federal Reserve to support struggling economies, but the euro slid against the U.S. dollar.

Both the ECB and the Fed will meet this week. The Fed will start a two-day meeting on Tuesday, with many economists believing the central bank will wait until September to provide more stimulus to a faltering U.S. economic recovery. The ECB's meeting on Thursday will attract more attention, traders said, after ECB President Mario Draghi's comments last week that the central bank would do whatever it takes to preserve the euro.

U.S. Treasury Secretary Timothy Geithner and Germany's Finance Minister Wolfgang Schaeuble issued a joint statement after their meeting on Monday that emphasized "the need for policymakers to adopt and implement all reform steps required to deal with the financial crisis and crisis of confidence."

The euro fell broadly, hitting a record low against the Australian dollar, on worries that the ECB may disappoint investors hoping for more measures to contain the debt crisis.

The euro lost 0.6 percent to $1.2241, retreating from a three-week high of $1.2390 hit on Friday.

"Clearly, if nothing is announced, that would be a massive disappointment," said Callum Henderson, global head of FX research for Standard Chartered Bank in Singapore. "But there is an expectation that we're going to see something meaningful on Thursday."

Inflows into safe-haven German government bonds slowed, keeping prices close to three-week lows.

The rhetoric raised expectations that the ECB could take bold measures to lower Italian and Spanish borrowing costs that would also support riskier assets. Italy's benchmark 10-year borrowing costs eased below 6 percent.

"Certainly everyone thinks that Europe is going to come out with this big bazooka, and they also think the Fed will launch, so therefore the market is going to stay up here," said Ken Polcari, managing director, ICAP Equities in New York.

The rhetoric raised expectations that the ECB could take bold measures to lower Italian and Spanish borrowing costs that would also support riskier assets. Italy's benchmark 10-year borrowing costs eased below 6 percent.

However, other investors doubt ECB policymakers will deliver in line with market expectations when they meet on Thursday, and this kept the euro lower and checked gains in commodity prices.

Speculation is growing that the Fed will do more to bolster the recovery after data showed U.S. second-quarter gross domestic product expanded at a 1.5 percent annual rate, the weakest pace of growth since the third quarter of 2011.

The MSCI world equity index rose 0.2 percent, extending gains for a third straight day.

The FTSEurofirst 300 index of top European shares advanced 1.6 percent to close unofficially at 1.073.19, just off a four-month high.

U.S. STOCKS RETREAT, BONDS RISE

But Wall Street slipped on Monday after its best two-day run this year, with the three major U.S. stock indexes touching session lows as investors awaited action from the ECB and the Fed.

The Dow Jones industrial average slipped 21.53 points, or 0.16 percent, to 13,054.13. The Standard & Poor's 500 Index shed 3.46 points, or 0.25 percent, to 1,382.51. The Nasdaq Composite Index declined 14.59 points, or 0.49 percent, to 2,943.50.

Germany's Bundesbank is opposed to a resumption of the ECB's secondary market bond buying as well as granting the euro zone rescue funds a banking license, which would give them more firepower to tackle the debt crisis.

Brent crude fell 52 cents to $105.95 a barrel, while U.S. crude slipped 40 cents to $89.73.

Spot gold declined 0.3 percent to $1,618.09 an ounce.

In the U.S. bond market, the benchmark 10-year U.S. Treasury note rose 10/32, with the yield at 1.522 percent.

"Treasuries are likely to remain locked in lower rate ranges as U.S. and global growth continues to disappoint," said William O'Donnell, managing director and head of U.S. Treasury strategy at RBS in Stamford, Connecticut.



Stocks at three-week highs on stimulus hopes - Reuters

NEW YORK | Mon Jul 30, 2012 2:29pm EDT

NEW YORK (Reuters) - Global stocks rose on Monday on expectations of stimulus measures by the European Central Bank and the U.S. Federal Reserve to support struggling economies, but the euro slid against the U.S. dollar.

Both the ECB and the Fed will meet this week. The Fed will start a two-day meeting on Tuesday, with many economists believing the central bank will wait until September to provide more stimulus to a faltering U.S. economic recovery. The ECB's meeting on Thursday will attract more attention, traders said, after ECB President Mario Draghi's comments last week that the central bank would do whatever it takes to preserve the euro.

U.S. Treasury Secretary Timothy Geithner and Germany's Finance Minister Wolfgang Schaeuble issued a joint statement after their meeting on Monday that emphasized "the need for policymakers to adopt and implement all reform steps required to deal with the financial crisis and crisis of confidence."

The euro fell broadly, hitting a record low against the Australian dollar, on worries that the ECB may disappoint investors hoping for more measures to contain the debt crisis.

The euro lost 0.6 percent to $1.2241, retreating from a three-week high of $1.2390 hit on Friday.

"Clearly, if nothing is announced, that would be a massive disappointment," said Callum Henderson, global head of FX research for Standard Chartered Bank in Singapore. "But there is an expectation that we're going to see something meaningful on Thursday."

Inflows into safe-haven German government bonds slowed, keeping prices close to three-week lows.

The rhetoric raised expectations that the ECB could take bold measures to lower Italian and Spanish borrowing costs that would also support riskier assets. Italy's benchmark 10-year borrowing costs eased below 6 percent.

"Certainly everyone thinks that Europe is going to come out with this big bazooka, and they also think the Fed will launch, so therefore the market is going to stay up here," said Ken Polcari, managing director, ICAP Equities in New York.

The rhetoric raised expectations that the ECB could take bold measures to lower Italian and Spanish borrowing costs that would also support riskier assets. Italy's benchmark 10-year borrowing costs eased below 6 percent.

However, other investors doubt ECB policymakers will deliver in line with market expectations when they meet on Thursday, and this kept the euro lower and checked gains in commodity prices.

Speculation is growing that the Fed will do more to bolster the recovery after data showed U.S. second-quarter gross domestic product expanded at a 1.5 percent annual rate, the weakest pace of growth since the third quarter of 2011.

The MSCI world equity index .MIWD00000PUS rose 0.2 percent, extending gains for a third straight day.

The FTSEurofirst 300 index .FTEU3 of top European shares advanced 1.6 percent to close unofficially at 1.073.19, just off a four-month high.

U.S. STOCKS RETREAT, BONDS RISE

But Wall Street slipped on Monday after its best two-day run this year, with the three major U.S. stock indexes touching session lows as investors awaited action from the ECB and the Fed.

The Dow Jones industrial average .DJI slipped 21.53 points, or 0.16 percent, to 13,054.13. The Standard & Poor's 500 Index .SPX shed 3.46 points, or 0.25 percent, to 1,382.51. The Nasdaq Composite Index .IXIC declined 14.59 points, or 0.49 percent, to 2,943.50.

Germany's Bundesbank is opposed to a resumption of the ECB's secondary market bond buying as well as granting the euro zone rescue funds a banking license, which would give them more firepower to tackle the debt crisis.

Brent crude fell 52 cents to $105.95 a barrel, while U.S. crude slipped 40 cents to $89.73.

Spot gold declined 0.3 percent to $1,618.09 an ounce.

In the U.S. bond market, the benchmark 10-year U.S. Treasury note rose 10/32, with the yield at 1.522 percent.

"Treasuries are likely to remain locked in lower rate ranges as U.S. and global growth continues to disappoint," said William O'Donnell, managing director and head of U.S. Treasury strategy at RBS in Stamford, Connecticut.

(Additional reporting by Anirban Nag in London, Blaise Robinson in London and Chuck Mikolajczak, Wanfeng Zhou and Ellen Freilich in New York; Editing by Kenneth Barry and Jan Paschal)



Stocks drift lower on Wall Street; Shaw soars - San Jose Mercury News
NEW YORK—U.S. stocks drifted lower Monday, following big gains last week on expectations that European leaders would take action to calm the region's debt crisis.

The Dow Jones industrial average sank seven points to 13,069 shortly as of 1:30 p.m. Eastern. JPMorgan Chase led the Dow lower, falling 2 percent to $36.13.

U.S. Treasury Secretary Timothy Geithner meets separately with Germany's finance minister and the head of the European Central Bank, Mario Draghi, on Monday. Draghi's pledge to do whatever was needed to protect the euro set off a market rally last week. The Dow rose back above 13,000 for the first time since May and is now up 1.5 percent for the month.

Hopes are high that Draghi will back up his words with action when the central bank meets Thursday, said David Brown, the CEO and chief market strategist at the research firm Sabrient. "I think that's the big story this week," he said. "The market has really responded to his bold statement. I hope the ECB takes action. If they don't do anything, it's not going to be pretty."

Investors are also looking toward the Federal Reserve's meeting this week. Many in the financial markets believe the Fed will take new steps to stimulate the economy in coming months. The Fed will release its statement on interest rate policy Wednesday afternoon.

Besides the Fed statement Wednesday and the ECB meeting Thursday, another potentially market-moving event is coming up on Friday, when the U.S.

Labor Department releases its monthly employment survey. Economists expect that the unemployment rate will remain unchanged at 8.2 percent.

In other Monday trading, the broader Standard & Poor's 500 index fell one point to 1,384, while the Nasdaq dropped 11 points to 2,947.

The indexes had been creeping higher early in the day, then reversed course soon after a regional manufacturing report came in much weaker than expected. A survey of manufacturing by the Dallas branch of the Federal Reserve showed a steep drop in July. Economists had forecast a modest gain.

Two corporate deals announced early Monday pushed some stocks higher. Chicago Bridge & Iron Co. agreed to buy Shaw Group for $3 billion in cash and stock. Shaw jumped $14.73, or 55 percent, to $41.40.

Medical and industrial equipment maker Roper Industries said it plans to buy hospital software company Sunquest Information Systems for $1.42 billion. Roper also raised its earnings estimate for the year, a result of the pending merger and a stronger dollar. Roper gained 4 percent to $102.19. Sunquest is privately owned.

Among other stocks making big moves:

— Supermarket operator Supervalu rose 12 percent, or 22 cents, to $2.21 after the company announced that it would oust its CEO. Earlier this month, the Minneapolis company reported weaker sales and profits and suspended its dividend. Supervalu also said it may put itself up for sale.

— Loews Corp. sank 5 percent after reporting that its net income plunged 78 percent in the second quarter. The holding company, controlled by New York's Tisch family, took a hit as falling energy prices lowered the value of its oil and gas properties. The company runs Diamond Offshore Drilling Inc., HighMount Exploration & Production and Loews Hotels. Its stock sank $2.10 to $39.60.

— Suntech Power Holdings plunged 13 percent. The Chinese solar company said it may be the victim of a massive fraud. Suntech dropped 20 cents to $1.37. The solar company's stock has lost 82 percent of its market value over the past year.



HSBC raises mis-selling and money laundering provisions - BBC News

HSBC has put aside $2bn (£1.3bn) to cover potential mis-selling claims and money-laundering fines as it announces a sharp rise in first-half profits.

Pre-tax profit for the first six months of 2012 was $12.7bn, up 11% on the $11.5bn the bank made a year ago.

The profits were boosted by $4.3bn of asset sales in the US.

The bank is setting aside $1.3bn to cover UK mis-selling compensation and $700m for any US fines following money laundering accusations.

The $1.3bn covers $1.06bn for the mis-selling of payment protection insurance (PPI) and $240m to cover sales of specialist interest rate protection products to businesses.

The $700m set aside for money laundering follows a US Senate report published earlier this month, which found that lax controls at Europe's biggest bank had left it vulnerable to being used to launder dirty money from around the world.

"What happened in Mexico and the US is shameful, it's embarrassing, it's very painful for all of us in the firm," chief executive Stuart Gulliver told reporters on a conference call following the results.

"We apologise for our past mistakes in relation to anti-money laundering controls, and it is a priority for senior management to build on steps already taken to manage risk and ensure compliance more effectively," he added.

'Strong performance'

The bank did not set aside provisions for any fines relating to the fixing of the inter-bank lending rate, Libor, but said it was co-operating with investigations by the regulatory authorities.

Last month, Barclays was fined £290m by UK and US regulators for giving false Libor submissions, and other banks are expected to be caught up in the scandal.

Analysts said HSBC's results were slightly better than expected.

"HSBC has added to the emerging theme of the banking updates so far - strong headline performance partially offset by corporate contrition," said Richard Hunter at stockbroker Hargreaves Lansdown.

"The money laundering investigation in the US adds to the burden of the PPI debacle, with the bank also involved in the interest rate swap mis-selling and there is yet to be confirmation of the extent to which it may be involved in the Libor investigation."

Rising revenue

Profits in the first half of the year were boosted by $4.3bn of asset sales, including the sale of its Card and Retail Services business and 138 branches in the US.

The sales form part of a continuing strategy to streamline the bank's operations, which also includes cutting its global workforce dramatically. The bank said it now employed 271,500 full-time staff, compared with 299,000 in the first quarter of last year.

Underlying first half profit at the bank fell by 3% to $10.6bn, while underlying revenue rose by 4%, thanks to strong growth in China, India, Brazil and Argentina.

Revenue growth was driven by investment and commercial banking.

The bank said it believed growth in emerging markets would continue at a "reasonable pace", while economic conditions in Europe and Western economies would remain "subdued".

It also forecast that the eurozone economy would contract this year.