UK-Business Summary

Fri 07 Nov, 2008 07:04

Oil rebounds above $61 a barrel

PERTH (Reuters) - Oil reversed course and rose above $61 a barrel on Monday, buoyed by a weakening U.S. dollar, but gains were curbed as an increasingly gloomy economic outlook continued to weigh on near-term energy demand. Comments by OPEC member Libya that the oil-producing cartel was not considering cutting production again also kept the commodity at a 1- year low.

FTSE seen opening lower

LONDON (Reuters) - The FTSE 100 (UKX.L) index is seen opening down as much as 0.7 percent on Friday, according to financial bookmakers, tracking weakness in U.S. and Japanese markets on concerns over the possibility of a deep and prolonged recession. U.S. stocks sold off on Thursday in the worst two-day slide since October 1987 with disappointing corporate outlooks and bleak sales from major retailers fuelling fears of a deepening economic downturn. In Asia, Japan's Nikkei average fell 3.6 percent. All eyes will be on the U.S. non-farm payrolls data due at 1:30 p.m. British time. Economists in a Reuters poll forecast a loss of 200,000 jobs in October compared with 159,000 jobs lost in September, while the unemployment rate is expected to be 6.3 percent versus September's 6.1 percent.

Microsoft chief pours cold water on Yahoo interest

SYDNEY (Reuters) - Software giant Microsoft dismissed speculation it might still be interested in a takeover of Internet firm Yahoo . "We made an offer, we made another offer ... We moved on," Microsoft Chief Executive Steve Ballmer told a business luncheon in Sydney on Friday when asked for the firm's plans after a partnership between Yahoo and Google fell through this week.

S.Korea cuts rates again

SINGAPORE (Reuters) - South Korea's central bank cut interest rates for the third time in a month on Friday to soothe markets and shore up its economy, after a flurry of deep rate cuts across Europe failed to calm panicky investors. Central bank action could not halt a slide in global stock markets and coincided with a warning by the International Monetary Fund that the developed economies were headed for the first full-year contraction since the World War Two in 2009.

Virgin Media considers selling content unit

LONDON (Reuters) - Cable operator Virgin Media is considering selling its content division, the Financial Times said on Friday. The newspaper, citing people close to the situation, said conversations about selling the unit were at an early stage and no buyer has been found.

Asian stocks struggle as jobs data eyed

HONG KONG (Reuters) - Most Asian stocks fell on Friday in the face of a rapidly slowing global economy, which dragged oil briefly below $60 a barrel, though hopes for more policy action to support growth brought markets back from their lows. Major European share markets were expected to open as much as 1 percent lower, according to financial bookmakers, ahead of the latest U.S. payrolls report that is widely expected to show the world's largest economy continuing to bleed jobs. The median forecast of economists polled by Reuters last week is for payrolls losses of 200,000 in October.

U.S. auto CEOs seek $50 bln in federal aid

WASHINGTON (Reuters) - Chief executives of distressed U.S. auto companies sought a $50 billion (32 billion pounds) federal bailout on Thursday to survive a financial crisis blamed on a worsening economy and the "near collapse" in demand for cars. Rick Wagoner of General Motors Corp , Alan Mulally of Ford Motor Co and Bob Nardelli of Chrysler LLC wore heavy faces while trudging through the deserted halls of Congress where they held long meetings with House Speaker Nancy Pelosi and Senate leader Harry Reid.

Lehman and Bear survivors may get best bonuses

NEW YORK (Reuters) - Bear Stearns and Lehman Brothers executives that survived the collapses of their firms and found new jobs should get bigger bonuses than their peers at Goldman Sachs Group Inc , a compensation consultant said on Thursday. It is no surprise by now that the global credit crisis, together with regulatory pressure and consolidation among the biggest U.S. banks, will lead to smaller 2008 bonuses for Wall Street bankers, traders and money managers.

Europe's DIY mkt to shrink in 2008, outlook bleak

LONDON (Reuters) - Europe's do-it-yourself (DIY) market is set to shrink by 1.5 percent this year and the outlook for 2009 is even bleaker as economies contract and housing markets grind to a halt, a report said on Friday. Verdict Research said consumers in the European Union spent 140.9 billion euros (116 billion pounds) on home improvements last year, up 2.6 percent on 2006, with strong growth in central and eastern Europe offsetting a weaker performance in the west.

Historic pottery maker goes into administration

LONDON (Reuters) - One of Britain's most venerable pottery makers, Royal Worcester & Spode, fell victim to the financial crisis and went into administration on Thursday, business services firm PricewaterhouseCoopers said. The porcelain and fine china maker, which traces its roots back to 1751, owns plants in Stoke and Worcester and employs 388 people in Britain.