The central bank of Ghana held its policy rate unchanged at 15.0 percent, saying the risks to inflation and growth were balanced despite the worsening in global economic conditions and uncertainties that could adversely affect the country's economy if prolonged.
The Bank of Ghana, which has raised its rate by 250 basis points this year, said the domestic economy had improved in the third quarter and inflationary expectations had diminished.
"The bank's inflation forecast indicates that inflation has been well anchored within the projected band of 8.5, plus/minus 2 percent and islikely to end the year in a single digit," the bank said.
Ghana's headline inflation eased to 9.4 percent in September from 9.5 percent in August, with food inflation stable at 4.4 percent, the bank said.
Second quarter Gross Domestic Product growth was estimated at 2.5 percent, down from 20.6 percent in the same 2011 quarter, mainly due to the base effects from the addition of oil, the bank said.
The bank added that exchange rate pressures, which threatened the economy's stability and boosted inflation in the first half of the year, have eased and in the past two months the cede currency had appreciated marginally against the U.S. dollar, helping lower inflation expectations.
www.CentralBankNews.info
Wednesday, 14 November 2012
Ghana holds rate, sees balanced inflation, growth risks
The central bank of Ghana held its policy rate unchanged at 15.0 percent, saying the risks to inflation and growth were balanced despite the worsening in global economic conditions and uncertainties that could adversely affect the country's economy if prolonged.
The Bank of Ghana, which has raised its rate by 250 basis points this year, said the domestic economy had improved in the third quarter and inflationary expectations had diminished.
"The bank's inflation forecast indicates that inflation has been well anchored within the projected band of 8.5, plus/minus 2 percent and islikely to end the year in a single digit," the bank said.
Ghana's headline inflation eased to 9.4 percent in September from 9.5 percent in August, with food inflation stable at 4.4 percent, the bank said.
Second quarter Gross Domestic Product growth was estimated at 2.5 percent, down from 20.6 percent in the same 2011 quarter, mainly due to the base effects from the addition of oil, the bank said.
The bank added that exchange rate pressures, which threatened the economy's stability and boosted inflation in the first half of the year, have eased and in the past two months the cede currency had appreciated marginally against the U.S. dollar, helping lower inflation expectations.
www.CentralBankNews.info
The Bank of Ghana, which has raised its rate by 250 basis points this year, said the domestic economy had improved in the third quarter and inflationary expectations had diminished.
"The bank's inflation forecast indicates that inflation has been well anchored within the projected band of 8.5, plus/minus 2 percent and islikely to end the year in a single digit," the bank said.
Ghana's headline inflation eased to 9.4 percent in September from 9.5 percent in August, with food inflation stable at 4.4 percent, the bank said.
Second quarter Gross Domestic Product growth was estimated at 2.5 percent, down from 20.6 percent in the same 2011 quarter, mainly due to the base effects from the addition of oil, the bank said.
The bank added that exchange rate pressures, which threatened the economy's stability and boosted inflation in the first half of the year, have eased and in the past two months the cede currency had appreciated marginally against the U.S. dollar, helping lower inflation expectations.
www.CentralBankNews.info
Goldman Sachs to wind down South Korea asset management unit
US based investment banking and securities firm Goldman Sachs Group is considering to shut down its South Korean asset management unit in the nextsix months.
A London-based spokesman for Goldman Sachs Asset Management Niklas Ekholm said in a statement, "Our expectations for the local Korean asset management business have not been met."
The bank, which launched its asset management business five years ago, said that severe competition and dominance of local companies have reduced theprofit margins in the country.
Approximately 40 members currently employed at the Korean unit may be absorbed in other divisions of the firm, according to the company's Hong Kong-based spokesman.
The bank will continue offering funds to Korean investors.
The Korean asset management unit has nearly$4bn under management, most of which are from institutional investors.
A London-based spokesman for Goldman Sachs Asset Management Niklas Ekholm said in a statement, "Our expectations for the local Korean asset management business have not been met."
The bank, which launched its asset management business five years ago, said that severe competition and dominance of local companies have reduced theprofit margins in the country.
Approximately 40 members currently employed at the Korean unit may be absorbed in other divisions of the firm, according to the company's Hong Kong-based spokesman.
The bank will continue offering funds to Korean investors.
The Korean asset management unit has nearly$4bn under management, most of which are from institutional investors.
Banks in Kenya full list
The Government has reformed banking to make it internationally competitive. In 2007, the Ministry of Finance proposed to raise bank capital from Sh250 million ($3.1 million) to Sh1 billion ($12.5 million) by 2010. This deadline has since been pushed to 2012. Foreign banks (Nigerian, South African and others) are investing in low-capital institutions.
After the profit growth of the first five years of the Kibaki administration, bank expansion has since crossedborders to Tanzania, Rwanda, Southern Sudan and Uganda. Local banks such as Equity, KCB and Cooperative are present in the region.
A significant development in banking has been the licensing of two Sharia-compliant commercial banks. First Community andGulf African were licensed in 2007. Consequently, the sector had 45 institutions – 43 commercial banks, two mortgage finance companies – by the end of 2008. of the 45,33 were local and 12 foreign-owned.
In 2009, the banks’ total assets were worth Sh 1.37 trillion ($17.1 billion). Profit before tax was a whopping Sh48.7 billion ($608.7 million). The Kenya Commercial Bank is the biggest in Kenya, with assetsworth Sh191 billion ($2.38 billion) in 2008. At the Nairobi Stock Exchange, banks and their holding companies are worth Sh270billion ($3.375 billion).
List of Banks in Kenya
1. African Banking Corporation Ltd.
2. Bank of Africa Kenya Ltd.
3. Bank of Baroda (K) Ltd.
4. Bank of India
5. Barclays Bank of Kenya Ltd.
6. CFC Stanbic Bank Ltd.
7. Charterhouse Bank Ltd
8. Chase Bank (K) Ltd.
9. Citibank N.A Kenya
10. Commercial Bank of Africa Ltd.
11. Consolidated Bank of Kenya Ltd.
12. Co-operative Bank of Kenya Ltd.
13. Credit Bank Ltd.
14. Development Bank of Kenya Ltd.
15. Diamond Trust Bank (K) Ltd.
16. Dubai Bank Kenya Ltd.
17. Ecobank Kenya Ltd
18. Equatorial Commercial Bank Ltd.
19. Equity Bank Ltd.
20. Family Bank Ltd
21. Fidelity Commercial Bank Ltd
22. Fina Bank Ltd
23. First community Bank Limited
24. Giro Commercial Bank Ltd.
25. Guardian Bank Ltd
26. Gulf African Bank Limited
27. Habib Bank A.G Zurich
28. Habib Bank Ltd.
29. Imperial Bank Ltd
30. I & M Bank Ltd
31. Jamii Bora Bank Ltd.
32. Kenya Commercial Bank Ltd
33. K-Rep Bank Ltd
34. Middle East Bank (K) Ltd
35. National Bank of Kenya Ltd
36. NIC Bank Ltd
37. Oriental Commercial Bank Ltd
38. Paramount Universal Bank Ltd
39. Prime Bank Ltd
40. Standard Chartered Bank (K) Ltd
41. Trans-National Bank Ltd
42. Victoria Commercial BankLtd
43. UBA Kenya Bank Ltd.
After the profit growth of the first five years of the Kibaki administration, bank expansion has since crossedborders to Tanzania, Rwanda, Southern Sudan and Uganda. Local banks such as Equity, KCB and Cooperative are present in the region.
A significant development in banking has been the licensing of two Sharia-compliant commercial banks. First Community andGulf African were licensed in 2007. Consequently, the sector had 45 institutions – 43 commercial banks, two mortgage finance companies – by the end of 2008. of the 45,33 were local and 12 foreign-owned.
In 2009, the banks’ total assets were worth Sh 1.37 trillion ($17.1 billion). Profit before tax was a whopping Sh48.7 billion ($608.7 million). The Kenya Commercial Bank is the biggest in Kenya, with assetsworth Sh191 billion ($2.38 billion) in 2008. At the Nairobi Stock Exchange, banks and their holding companies are worth Sh270billion ($3.375 billion).
List of Banks in Kenya
1. African Banking Corporation Ltd.
2. Bank of Africa Kenya Ltd.
3. Bank of Baroda (K) Ltd.
4. Bank of India
5. Barclays Bank of Kenya Ltd.
6. CFC Stanbic Bank Ltd.
7. Charterhouse Bank Ltd
8. Chase Bank (K) Ltd.
9. Citibank N.A Kenya
10. Commercial Bank of Africa Ltd.
11. Consolidated Bank of Kenya Ltd.
12. Co-operative Bank of Kenya Ltd.
13. Credit Bank Ltd.
14. Development Bank of Kenya Ltd.
15. Diamond Trust Bank (K) Ltd.
16. Dubai Bank Kenya Ltd.
17. Ecobank Kenya Ltd
18. Equatorial Commercial Bank Ltd.
19. Equity Bank Ltd.
20. Family Bank Ltd
21. Fidelity Commercial Bank Ltd
22. Fina Bank Ltd
23. First community Bank Limited
24. Giro Commercial Bank Ltd.
25. Guardian Bank Ltd
26. Gulf African Bank Limited
27. Habib Bank A.G Zurich
28. Habib Bank Ltd.
29. Imperial Bank Ltd
30. I & M Bank Ltd
31. Jamii Bora Bank Ltd.
32. Kenya Commercial Bank Ltd
33. K-Rep Bank Ltd
34. Middle East Bank (K) Ltd
35. National Bank of Kenya Ltd
36. NIC Bank Ltd
37. Oriental Commercial Bank Ltd
38. Paramount Universal Bank Ltd
39. Prime Bank Ltd
40. Standard Chartered Bank (K) Ltd
41. Trans-National Bank Ltd
42. Victoria Commercial BankLtd
43. UBA Kenya Bank Ltd.
Manchester United revenue not impressive, but manage to minimixe debt
LONDON (Reuters) - A strong start to the season andnew sponsorship deals have reinforced English Premier League soccer club Manchester United's confidence it will hit this year's financial targets despite lower first-quarter earnings.
United, English champions a record 19 times, said they had cut debt to 360 million pounds ($572 million), down 17 percent from a yearearlier, after a listing on the New York Stock Exchange in August that left the American Glazer family firmlyin control of the club.
A vocal section of United supporters have argued that the cost of servicing debts following the Glazers' 790 million pounds leveraged buyout of the club in 2005 have hampered its ability to compete with rival clubs at home and abroad.
"We have been very pleasedat how the year has started both on and off the pitch," executive vice chairman Ed Woodward told analysts on aconference call.
"Based on our first-quarter results and current visibility we remain confident that we can achieve our previously stated targets for fiscal 2013 -- revenue between 350 and360 million pounds and adjusted EBITDA of 107-110million pounds," he added.
United, reinforced by the summer hiring of Japan's Shinji Kagawa and DutchmanRobin Van Persie , lead the English Premier League afterfinishing second behind local rivals Manchester City last season.
United have also already qualified for the knockout stages of the Champions League after a costly early exit last season from Europe'smost lucrative club competition.
NEW SPONSORS SIGNED UP
United shares traded 12 cents lower at $12.86 in NewYork shortly after the opening on Wednesday. They floated at $14 in a listing that valued the club at $2.3 billion.
Investors have generally been wary of sporting franchises, concerned that their financial fortunes are too tightly linked to sportingsuccess.
United argue that their global fan base and a buoyant TV rights market for the English Premier League give them sound financial underpinnings.
For the three months to end-September, a reduction in broadcast revenue pushed underlying core earnings (EBITDA) 15 percent lower.
However, United said most of the decline was down to the scheduling of matches --the club played only one Champions League game in the period -- and would be recouped.
United, who claim to have 659 million followers worldwide, signed 10 new sponsorship deals in the first quarter, the most eye-catching being a $559 million agreement with General Motors to have the Chevrolet brand on the club's famous red shirts from2014.
The presence of Kagawa in their ranks has also led to a number of deals with Japanese firms. A 24 percentrise in revenues from all its commercial deals helped to push total revenues up 3 percent to 76 million pounds.
Profit from continuing operations was up to 20.5 million pounds against a loss of 5 million pounds a year earlier, a figure that was boosted by a tax credit which the club said related to it moving to certain U.S. tax bases.
Chelsea, who won the Champions League in May, said last week they had made a profit in 2011-12, returning to the black for thefirst time since Russian oligarch Roman Abramovich bought the club in 2003.
($1 = 0.6293 British pounds)
(Editing by Mike Nesbit)
United, English champions a record 19 times, said they had cut debt to 360 million pounds ($572 million), down 17 percent from a yearearlier, after a listing on the New York Stock Exchange in August that left the American Glazer family firmlyin control of the club.
A vocal section of United supporters have argued that the cost of servicing debts following the Glazers' 790 million pounds leveraged buyout of the club in 2005 have hampered its ability to compete with rival clubs at home and abroad.
"We have been very pleasedat how the year has started both on and off the pitch," executive vice chairman Ed Woodward told analysts on aconference call.
"Based on our first-quarter results and current visibility we remain confident that we can achieve our previously stated targets for fiscal 2013 -- revenue between 350 and360 million pounds and adjusted EBITDA of 107-110million pounds," he added.
United, reinforced by the summer hiring of Japan's Shinji Kagawa and DutchmanRobin Van Persie , lead the English Premier League afterfinishing second behind local rivals Manchester City last season.
United have also already qualified for the knockout stages of the Champions League after a costly early exit last season from Europe'smost lucrative club competition.
NEW SPONSORS SIGNED UP
United shares traded 12 cents lower at $12.86 in NewYork shortly after the opening on Wednesday. They floated at $14 in a listing that valued the club at $2.3 billion.
Investors have generally been wary of sporting franchises, concerned that their financial fortunes are too tightly linked to sportingsuccess.
United argue that their global fan base and a buoyant TV rights market for the English Premier League give them sound financial underpinnings.
For the three months to end-September, a reduction in broadcast revenue pushed underlying core earnings (EBITDA) 15 percent lower.
However, United said most of the decline was down to the scheduling of matches --the club played only one Champions League game in the period -- and would be recouped.
United, who claim to have 659 million followers worldwide, signed 10 new sponsorship deals in the first quarter, the most eye-catching being a $559 million agreement with General Motors to have the Chevrolet brand on the club's famous red shirts from2014.
The presence of Kagawa in their ranks has also led to a number of deals with Japanese firms. A 24 percentrise in revenues from all its commercial deals helped to push total revenues up 3 percent to 76 million pounds.
Profit from continuing operations was up to 20.5 million pounds against a loss of 5 million pounds a year earlier, a figure that was boosted by a tax credit which the club said related to it moving to certain U.S. tax bases.
Chelsea, who won the Champions League in May, said last week they had made a profit in 2011-12, returning to the black for thefirst time since Russian oligarch Roman Abramovich bought the club in 2003.
($1 = 0.6293 British pounds)
(Editing by Mike Nesbit)
BHP exits diamond mining
THE world's largest diversified resources company BHP Billitonhas become less diverse after exiting the diamond mining business.
BHP confirmed speculation first airedseveral months ago that it would sell its EKATI diamond business in Canada toCanadian miner and jewellery retailer Harry Winston Diamond.
The sale price is$US500 million ($A481.58 million) but BHP said it wouldalso book a non-cashimpairment charge ofabout $US200 million($A192.63 million) onthe asset's carrying value.
The move is consistent with a desire by BHP under chief executive MariusKloppers to strip away and simplify thebusiness.
That involves disposing of its smaller or less-profitable divisions with challenging outlooks,including nickel and aluminium.
BHP chief executive non-ferrous Andrew Mackenzie said the sale was consistent with a focus on large,long-life, low-cost, expandable, upstreamassets.
"Together with the recent sale of our interests in Richards Bay Minerals (mineral sands) and Yeelirrie (uranium), (the sale) reflects our ongoing pursuit of a simpler business," he said in astatement.
It sees its future coreassets being iron ore,coal, copper, petroleum and potash, although some analysts warn the world can changequickly and its other assets hold hedging value.
The diamond mine is located in Canada's remote northwestern territories, 200km south of the Arctic Circle.
BHP confirmed speculation first airedseveral months ago that it would sell its EKATI diamond business in Canada toCanadian miner and jewellery retailer Harry Winston Diamond.
The sale price is$US500 million ($A481.58 million) but BHP said it wouldalso book a non-cashimpairment charge ofabout $US200 million($A192.63 million) onthe asset's carrying value.
The move is consistent with a desire by BHP under chief executive MariusKloppers to strip away and simplify thebusiness.
That involves disposing of its smaller or less-profitable divisions with challenging outlooks,including nickel and aluminium.
BHP chief executive non-ferrous Andrew Mackenzie said the sale was consistent with a focus on large,long-life, low-cost, expandable, upstreamassets.
"Together with the recent sale of our interests in Richards Bay Minerals (mineral sands) and Yeelirrie (uranium), (the sale) reflects our ongoing pursuit of a simpler business," he said in astatement.
It sees its future coreassets being iron ore,coal, copper, petroleum and potash, although some analysts warn the world can changequickly and its other assets hold hedging value.
The diamond mine is located in Canada's remote northwestern territories, 200km south of the Arctic Circle.
2.7 million cars worldwide to be recalled by Toyota
Toyota has said it will recall 2.7 million cars worldwide because of problems with the steering wheel and water pump system.
The recall affects nine models, including the ToyotaCorolla and the second-generation Prius.
It comes four weeks after thefirm recalled more than seven million vehicles worldwide, including some Corolla and Camry models, over faulty window switches.
Toyota is Japan's biggest carmaker.
Joichi Tachikawa, a spokesman for Toyota, told the BBC that the problem with the steering wheel was to do with "insufficient hardness of the steering shaft".
He explained that due to this, the splines which connect the extension shaft to the gearbox may deform ifthe steering wheel is"frequently and forcefully turned to the full lock position while driving at a very slow speed".
"This may create an increased backlash and the splines may eventually wear out over time, which could result in loss of steering ability," he added.
The recall affects nine models, including the ToyotaCorolla and the second-generation Prius.
It comes four weeks after thefirm recalled more than seven million vehicles worldwide, including some Corolla and Camry models, over faulty window switches.
Toyota is Japan's biggest carmaker.
Joichi Tachikawa, a spokesman for Toyota, told the BBC that the problem with the steering wheel was to do with "insufficient hardness of the steering shaft".
He explained that due to this, the splines which connect the extension shaft to the gearbox may deform ifthe steering wheel is"frequently and forcefully turned to the full lock position while driving at a very slow speed".
"This may create an increased backlash and the splines may eventually wear out over time, which could result in loss of steering ability," he added.
40% quota for women on boards' EU approve
The European Commission has approved proposals fromjustice commissioner Viviane Reding to have at least 40% of women on company boards by 2020.
The news came in a tweet byMrs Reding. Official confirmation is due later.
But there are reports the proposals have been watered down to exclude small and medium companies and only to applyto non-executive directors.
Mrs Reding postponed the launch of the policy last month, when EU lawyers warned quotas may not be enforceable.
Under the plans, member states will be allowed to decide for themselves what action to take against companies failing to reach the quota.
Draft versions of the proposals also said that the rules would not apply to countries that had already taken measures to improve the gender balance on boards.
The plans were opposed by nine EU member states, including the UK.
Mrs Reding said the measures were "a breakthrough initiative" and criticised those who said the plans had been watered down.
They will still need to be approved by the European Parliament and the Council of Ministers, but Mrs Reding said she was confident they had enough support to be passed.
The news came in a tweet byMrs Reding. Official confirmation is due later.
But there are reports the proposals have been watered down to exclude small and medium companies and only to applyto non-executive directors.
Mrs Reding postponed the launch of the policy last month, when EU lawyers warned quotas may not be enforceable.
Under the plans, member states will be allowed to decide for themselves what action to take against companies failing to reach the quota.
Draft versions of the proposals also said that the rules would not apply to countries that had already taken measures to improve the gender balance on boards.
The plans were opposed by nine EU member states, including the UK.
Mrs Reding said the measures were "a breakthrough initiative" and criticised those who said the plans had been watered down.
They will still need to be approved by the European Parliament and the Council of Ministers, but Mrs Reding said she was confident they had enough support to be passed.
Tuesday, 13 November 2012
Paper profit (loss)
Paper profit (loss) – An unrealized profit or loss on a security still held. Paper profits and losses become realized only when the security is sold.
Par
Par – In the case of a common share, par means a dollar amount assigned to the share by the company's charter. Par value may also be used to compute the dollar amount of common shares on the balance sheet. Par value has little relationship to the market value of common stock. Many companies issue no-par stock but give a stated per share value on thebalance sheet. In the case of preferred stocks it signifies the dollar value upon which dividends are figured. With bonds, par value is the face amount, usually $1,000.
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