Not likely. The country could learn a thing or two from New Zealand, home of Lord of the Rings.
The Australian tourism industry has banked millions of dollars on Australia, Baz Luhrmann's new 165-minute movie epic, which stars Nicole Kidman as a haughty English dame seduced by the rugged Hugh Jackman amid the grandiose Australian landscape. Already, signs are not looking good. Several critics at home and abroad have panned the movie, and uninspiring viewing figures so far mean that Australia is unlikely to send tourists to the Outback in droves.
But over in neighboring New Zealand, tour operators are still flush from the phenomenal success of director Peter Jackson's Lord Of The Rings trilogy, which was filmed all over the country. The adventures of Frodo Baggins captivated the imagination of moviegoers between 2001 and 2003, and wannabe Hobbits have been seeking out Middle Earth ever since. It's doubtful that Australia, which is set in the 1940s and traces the history of a cattle station, will replicate this success.
Sunday, January 4, 2009
Reduce Bajaj Hind, target of Rs 66: Prabhudas Lilladher
Prabhudas Lilladher has recommended a reduce rating on Bajaj Hindusthan with a target of Rs 66 in its research report. "Over the last 2-3 years, Bajaj Hindustan (BHL) augmented its sugar capacity by 7,000 TCD to 96,000 TCD. BHL set up two new distilleries , each of 160 KLPD, totalling the capacity to 640 KLPD. Capacity of sugar plants of its subsidiaries have been augmented from 6,000 TCD to 40,000 TCD and new distillery was set up with capacity of 160 KLPD and surplus power of 15 MW. We expect 20.9% growth in topline in FY2008-09 and 13.2% in FY2009-10. We expect EPS of Rs 3.1 and 7.7 in FY2008-09 and FY2009-10 respectively, Reduce, target of Rs 66," says Prabhudas Lilladher's research report.
TATA Sasol JV against profit sharing in CTL projects
PTI reported that the TATA group and its South African partner Sasol have opposed giving part of the crude oil they plan to produce from coal to the government as profit share.
Strategic Energy Technology Systems Ltd, a JV of TATA Sons and Sasol, vying for the coal to liquid project has told the government that profit sharing would effectively be a new tax, which is not permissible under relevant Acts.
SETSL has, however, opposed the regime in the project saying that the Oilfield Regulation Act or the Petroleum and Natural Gas Rules do not apply if crude oil and gas produced from coal are synthetic and not naturally occurring hydrocarbon.
It said that "Therefore, if a new tax in the form of profit sharing on CTL products is to be allowed, this can be done only through a legislative measure with the approval of Parliament. This cannot be done through an executive order."
As per report, the India Government is considering replicating the production sharing regime in oil and gas in the ambitious project, which envisages producing crude oil up to 80,000 barrels per day. Instead of charging upfront payment or signature bonus for allocating natural resources, the Government gets a share of oil and gas produced called profit petroleum, which is biddable and can be taken in kind or cash.
Strategic Energy Technology Systems Ltd, a JV of TATA Sons and Sasol, vying for the coal to liquid project has told the government that profit sharing would effectively be a new tax, which is not permissible under relevant Acts.
SETSL has, however, opposed the regime in the project saying that the Oilfield Regulation Act or the Petroleum and Natural Gas Rules do not apply if crude oil and gas produced from coal are synthetic and not naturally occurring hydrocarbon.
It said that "Therefore, if a new tax in the form of profit sharing on CTL products is to be allowed, this can be done only through a legislative measure with the approval of Parliament. This cannot be done through an executive order."
As per report, the India Government is considering replicating the production sharing regime in oil and gas in the ambitious project, which envisages producing crude oil up to 80,000 barrels per day. Instead of charging upfront payment or signature bonus for allocating natural resources, the Government gets a share of oil and gas produced called profit petroleum, which is biddable and can be taken in kind or cash.
GlaxoSmithKline slips despite setback for rival
Pharmaceuticals group GlaxoSmithKline, which performed relatively well amidst last year's stock market chaos, has slipped back today despite a buy note and what could be good news on the competition front.
There are reports from India that rival Ranbaxy failed to launch generic copies of migraine treatment Imitrex in the US in December. According to analyst Savvas Neophytou at Panmure Gordon, that could benefit Glaxo well into the new year. In a buy note Panmure said:
"Indian generics manufacturer Ranbaxy [has reportedly failed] to obtain registration for its generic copy of Imitrex. The generic had been expected in December 2008 so given lack of registration for the generic at least one extra month of revenues unopposed was achieved in 2008. If the delay in regulatory approval relates to well known manufacturing issues for Ranbaxy then the benefit could continue until May 2009, which will be an unexpected bonus for [GlaxoSmithKline]. Each additional month of revenues represents around 1% of operating profits for the group.
"The reason for the delay is unknown but could be related to the [US regulator] FDA ban in September which stopped Ranbaxy from importing more than 30 generic drugs to the US for not meeting some manufacturing norms at two plants in India.
"[GlaxoSmithKline] stock is trading on P/Es of 11.5x for 2009 and 9.8x for 2010. Its earnings per share is below the sector average, but we expect the dividend yield of 5.3% to provide support and remain buyers. Overall in the sector we still prefer AstraZeneca which is trading at a 56% discount to GlaxoSmithKline but, given our positive stance on the sector in general, we also advocate buying GlaxoSmithKline at these levels."
So far the message is being ignored, however, and GlaxoSmithKline is down 29p at £12.55.
Overall though the market has made a fairly bright if quiet start to the new year. With Asian markets edging higher the FTSE 100 is currently 22.94 points ahead at 4457.11.
The heavyweight mining and banking sectors are among the main gainers, with Vedanta Resources up 38.5p to 650p and Rio Tinto rising 53p to £15.43.
HBOS is up 2.6p at 71.6p while Royal Bank of Scotland has climbed 1.7p to 51.1p.
Good sales figures from John Lewis immediately before and after Christmas has helped lift Next 15p to £10.96, with Marks & Spencer - tipped by Seymour Pierce recently to make a January profit warning - up 0.5p at 215.25p.
Lower down the market chocolate retailer Thorntons is down 8.5p at 91.5p on worries about seasonal trading.
There are reports from India that rival Ranbaxy failed to launch generic copies of migraine treatment Imitrex in the US in December. According to analyst Savvas Neophytou at Panmure Gordon, that could benefit Glaxo well into the new year. In a buy note Panmure said:
"Indian generics manufacturer Ranbaxy [has reportedly failed] to obtain registration for its generic copy of Imitrex. The generic had been expected in December 2008 so given lack of registration for the generic at least one extra month of revenues unopposed was achieved in 2008. If the delay in regulatory approval relates to well known manufacturing issues for Ranbaxy then the benefit could continue until May 2009, which will be an unexpected bonus for [GlaxoSmithKline]. Each additional month of revenues represents around 1% of operating profits for the group.
"The reason for the delay is unknown but could be related to the [US regulator] FDA ban in September which stopped Ranbaxy from importing more than 30 generic drugs to the US for not meeting some manufacturing norms at two plants in India.
"[GlaxoSmithKline] stock is trading on P/Es of 11.5x for 2009 and 9.8x for 2010. Its earnings per share is below the sector average, but we expect the dividend yield of 5.3% to provide support and remain buyers. Overall in the sector we still prefer AstraZeneca which is trading at a 56% discount to GlaxoSmithKline but, given our positive stance on the sector in general, we also advocate buying GlaxoSmithKline at these levels."
So far the message is being ignored, however, and GlaxoSmithKline is down 29p at £12.55.
Overall though the market has made a fairly bright if quiet start to the new year. With Asian markets edging higher the FTSE 100 is currently 22.94 points ahead at 4457.11.
The heavyweight mining and banking sectors are among the main gainers, with Vedanta Resources up 38.5p to 650p and Rio Tinto rising 53p to £15.43.
HBOS is up 2.6p at 71.6p while Royal Bank of Scotland has climbed 1.7p to 51.1p.
Good sales figures from John Lewis immediately before and after Christmas has helped lift Next 15p to £10.96, with Marks & Spencer - tipped by Seymour Pierce recently to make a January profit warning - up 0.5p at 215.25p.
Lower down the market chocolate retailer Thorntons is down 8.5p at 91.5p on worries about seasonal trading.
ONGC Intraday Buy Call
Stock market analysts have maintained ‘buy’ rating on ONGC stock with an intraday target of Rs 680.
According to analysts, interested traders can purchase the stock above Rs 665 with a strict stop loss of Rs 652. If the stock market remains on positive track, the stock pricing becomes more attractive, and reach above Rs 696.
Shares of the company, on Wednesday (Dec 31), closed at Rs 667.65 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 368580. Current EPS & P/E ratio stood at 84.77 and 8.02 respectively. The share price has seen a 52-week high of Rs 1356.70 and a low of Rs 538.10 on BSE.
The stock has great potential to rise on the back of healthy growth plans and well-built operating capabilities.
On Dec 31, ONGC Videsh (OVL), the overseas arm of ONGC, has finished Imperial Energy acquirement for GBP 1.3 billion (USD 1.9 billion) with around 96% of the London-listed firm’s stockholders consenting its offer of 12.50 pounds per share.
OVL wanted only 90% shareowners to sanction its contract that will result in delisting of Imperial, which has the majority of its energy assets in Russia.
It is also learnt that at the close of the offer period on Tuesday, approximately 96% shareholders tendered their shares and the complete acquisition and subsequent delisting may take 2-3 weeks.
On Dec 24, Samsung Engineering in association with Linde (Germany) has been awarded by ONGC Petro addition (OPaL) a new engineering, procurement, construction & commissioning order for a naptha and gas dual feed ethylene cracker division and related units plant worth approximately $1.43 billion (Samsung Engineering at USD 0.96 billion and Linde at USD 0.47 billion ).
For the financial year 2008-09, ONGC, on Dec 19, declared the interim dividend of 180% for.
This interim dividend is on an expanded post-bonus equity capital of Rs 21,390 million and is priced at Rs 18 per share on equity share of Rs 10 each.
During fiscal 2005-06, the company (ONGC) announced an interim dividend of 250% and aggregate dividend of 450% amounting to Rs 64,170 million.
ONGC, on Dec 13, signed up a memorandum of understanding (MoU) with Indian Oil Corporation (IOC) for mutual co-operation in the fields of oil and gas exploration, production, and marketing.
Other stocks from the same sector that looks good for short-term as well as long-term trading includes GAIL, Cairn India, and Reliance Natura.
According to analysts, interested traders can purchase the stock above Rs 665 with a strict stop loss of Rs 652. If the stock market remains on positive track, the stock pricing becomes more attractive, and reach above Rs 696.
Shares of the company, on Wednesday (Dec 31), closed at Rs 667.65 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 368580. Current EPS & P/E ratio stood at 84.77 and 8.02 respectively. The share price has seen a 52-week high of Rs 1356.70 and a low of Rs 538.10 on BSE.
The stock has great potential to rise on the back of healthy growth plans and well-built operating capabilities.
On Dec 31, ONGC Videsh (OVL), the overseas arm of ONGC, has finished Imperial Energy acquirement for GBP 1.3 billion (USD 1.9 billion) with around 96% of the London-listed firm’s stockholders consenting its offer of 12.50 pounds per share.
OVL wanted only 90% shareowners to sanction its contract that will result in delisting of Imperial, which has the majority of its energy assets in Russia.
It is also learnt that at the close of the offer period on Tuesday, approximately 96% shareholders tendered their shares and the complete acquisition and subsequent delisting may take 2-3 weeks.
On Dec 24, Samsung Engineering in association with Linde (Germany) has been awarded by ONGC Petro addition (OPaL) a new engineering, procurement, construction & commissioning order for a naptha and gas dual feed ethylene cracker division and related units plant worth approximately $1.43 billion (Samsung Engineering at USD 0.96 billion and Linde at USD 0.47 billion ).
For the financial year 2008-09, ONGC, on Dec 19, declared the interim dividend of 180% for.
This interim dividend is on an expanded post-bonus equity capital of Rs 21,390 million and is priced at Rs 18 per share on equity share of Rs 10 each.
During fiscal 2005-06, the company (ONGC) announced an interim dividend of 250% and aggregate dividend of 450% amounting to Rs 64,170 million.
ONGC, on Dec 13, signed up a memorandum of understanding (MoU) with Indian Oil Corporation (IOC) for mutual co-operation in the fields of oil and gas exploration, production, and marketing.
Other stocks from the same sector that looks good for short-term as well as long-term trading includes GAIL, Cairn India, and Reliance Natura.
UBS sells stake in Bank of China - update
Financial services firm UBS AG (UBS: News ) Wednesday announced the sale of its investment of about 3.4 billion Bank of China Limited H-shares to institutional investors through a placement. The Zurich, Switzerland-based company purchased the stake in Bank of China in 2005 in preparation for Bank of China's Initial Public Offering, or IPO, to the international market.
UBS said it remains committed to its business relationship with Bank of China and to its businesses in China as a whole. The company will continue to develop its client franchise in China.
Similar to other banking and financial institutions, UBS has been hit hard by the credit market slump, incurring huge losses from sub-prime related mortgages. In October, the firm received a $59.2 billion aid package from the government. The company said in November that Chief Executive Officer Marcel Rohner, his 11 colleagues on the executive board and Chairman Peter Kurer would not receive bonus payments for 2008.
Last week, J.P. Morgan Chase & Co. (JPM: News ) announced a deal to acquire UBS Commodities Canada Ltd., the Canadian energy operations of UBS, as well as the firm's global agricultural business. Terms of the deal were not disclosed. The transaction is expected to be closed in the first quarter of 2009.
Media reported in early December that UBS is planning to cut its total workforce by a further 4,500, adding to its already announced about 9,000 job cuts, primarily in the investment banking business. The planned reduction will bring the company's total head count to below 80,000.
For the third quarter ended in September, UBS reported a profit compared with a loss last year, helped by a gain on own credit and a tax benefit. However, for the fourth quarter, the company expects the adverse conditions seen at the beginning of the quarter to continue to affect its fee-earning businesses. Wall Street analysts are of the view that UBS will incur a loss of $1.15 per share in the fourth quarter on revenues of $11.40 billion.
Meanwhile, UBS's peer, Citigroup, Inc. (C: News ) has completed the sale of its India-based captive business processing outsourcing business, Citigroup Global Services Ltd, to Tata Consultancy Services Ltd., a Tata Group company, for all cash consideration of $512 million. With the sale, Citi would be able to focus on its core financial services competencies.
In mid-December, Citi reached an agreement to sell its India-based Citi Technology Services Ltd. to another Indian company, Wipro Ltd. (WIT: News ), for an all cash consideration of approximately $127 million. Further, On December 16, Nikko Citi Holdings Inc., the principal holding company of Citi in Japan, announced a definitive deal to sell all shares of NikkoCiti Trust and Banking Corp. to Mitsubishi UFJ Trust and Banking Corp., or MUTB, for an all cash consideration of 25 billion yen. In December itself, Citi completed the sale of its German retail banking operation Citibank Privatkunden AG & Co. KGaA and certain of its affiliates, to Crédit Mutuel-CIC, a French banking group, for a cash consideration of US$6.6 billion.
UBS said it remains committed to its business relationship with Bank of China and to its businesses in China as a whole. The company will continue to develop its client franchise in China.
Similar to other banking and financial institutions, UBS has been hit hard by the credit market slump, incurring huge losses from sub-prime related mortgages. In October, the firm received a $59.2 billion aid package from the government. The company said in November that Chief Executive Officer Marcel Rohner, his 11 colleagues on the executive board and Chairman Peter Kurer would not receive bonus payments for 2008.
Last week, J.P. Morgan Chase & Co. (JPM: News ) announced a deal to acquire UBS Commodities Canada Ltd., the Canadian energy operations of UBS, as well as the firm's global agricultural business. Terms of the deal were not disclosed. The transaction is expected to be closed in the first quarter of 2009.
Media reported in early December that UBS is planning to cut its total workforce by a further 4,500, adding to its already announced about 9,000 job cuts, primarily in the investment banking business. The planned reduction will bring the company's total head count to below 80,000.
For the third quarter ended in September, UBS reported a profit compared with a loss last year, helped by a gain on own credit and a tax benefit. However, for the fourth quarter, the company expects the adverse conditions seen at the beginning of the quarter to continue to affect its fee-earning businesses. Wall Street analysts are of the view that UBS will incur a loss of $1.15 per share in the fourth quarter on revenues of $11.40 billion.
Meanwhile, UBS's peer, Citigroup, Inc. (C: News ) has completed the sale of its India-based captive business processing outsourcing business, Citigroup Global Services Ltd, to Tata Consultancy Services Ltd., a Tata Group company, for all cash consideration of $512 million. With the sale, Citi would be able to focus on its core financial services competencies.
In mid-December, Citi reached an agreement to sell its India-based Citi Technology Services Ltd. to another Indian company, Wipro Ltd. (WIT: News ), for an all cash consideration of approximately $127 million. Further, On December 16, Nikko Citi Holdings Inc., the principal holding company of Citi in Japan, announced a definitive deal to sell all shares of NikkoCiti Trust and Banking Corp. to Mitsubishi UFJ Trust and Banking Corp., or MUTB, for an all cash consideration of 25 billion yen. In December itself, Citi completed the sale of its German retail banking operation Citibank Privatkunden AG & Co. KGaA and certain of its affiliates, to Crédit Mutuel-CIC, a French banking group, for a cash consideration of US$6.6 billion.
Eventful 2008 for the Indian economy
The global economic downturn made 2008 a forgettable year, it had its usual share of ups and downs for India Inc
The global economic downturn made 2008 a forgettable year. It had its usual share of ups and downs for India Inc. Here’s a look at some of the events that shaped the year:
10 Jan: ‘Nano´ is born. The world’s cheapest car costing Rs100,000 unveiled at 9th Auto Expo in Delhi by Ratan Tata.
15 Jan: India’s largest IPO by Reliance Power to raise Rs11,000 crore opens. The issue closed on 18 January but was hammered in the market on debut. The company issued bonus shares to retain investor confidence.
8 Feb: Developer Emaar MGF Land Ltd calls off Rs7,000 crore IPO following poor investor response.
11 Mar: Real estate firm BPTP strikes India’s biggest ever land deal by shelling out Rs5,006 crore for a 95 acre commercial plot at Noida. As financial crisis deepens, the company is now facing problems paying the sum.
26 Mar: Tata Motors announces agreement with Ford Motor to acquire Jaguar Land Rover for $2.3 billion.
19 Apr: Cancer drug maker Dabur Pharma acquired by Singapore-based Fresenius Kabi for nearly Rs1,000 crore.
6 May: Telecom operator Bharti Airtel in talks with South Africa’s MTN Group for a deal that would give it presence in 21 African and Asian countries.
24 May: Bharti Airtel backs out from MTN deal.
28 May: Anil Ambani-run Reliance Communications begins discussions for reverse merger with MTN. Talks fail in July.
11 June: Japanese drug firm Daiichi Sankyo acquires control of Ranbaxy for over Rs22,000 crore - essays biggest Indian pharma industry deal.
18 June: India gets first commercially available hybrid car when Honda Siel launched its Civic Hybrid priced at Rs21.5 lakh.
25 June: Idea Cellular acquires 40.8% stake in a smaller rival Spice Communications for about Rs2700 crore.
27 June: Russia’s Severstal outbids Essar’s $1.2 billion offer for US-based Esmark.
11 July: Gurgaon-based WNS (Holdings) Ltd acquires UK insurance major Aviva’s BPO business Aviva Global Services (AGS) for around $228 million (Rs980 crore).
8 Aug: South Korean steel giant Posco gets approval from Supreme Court to go ahead with its Rs51,000 crore steel project in Orissa after getting environmental clearance.
11 Aug: Low-cost airline Spicejet secures $100 million investment from Goldman Sachs and WL Ross.
21 Aug: Apple’s iPhone makes India debut.
16 Sep: US Foods and Drug Administration bans 30 drugs manufactured by Ranbaxy Laboratories at its two facilities in Dewas and Poanta Sahib.
23 Sep: UAE telecom giant Emirates Telecommunications Corp (Etisalat) buys about 45% of Swan Telecom for up to $900 million.
26 Sep: HCL Technologies makes a cash offer of 650 pence a share for acquiring UK-based SAP consulting firm Axon Group.
3 Oct: Tata Motors pulls out of Singur, where it planned to set up the mother plant for Nano at an investment of Rs1,500 crore.
7 Oct: Tata Motors announces new Nano plant will come up at Sanand in Gujarat at an investment of Rs2000 crore.
Oct 8: TCS acquires 96.3% stake in Citigroup Global Services Ltd, the BPO outfit of the American bank, for $505 million.
13 Oct: Jet Airways and Kingfisher Airlines form operational alliance to cut costs.
15 Oct: Jet Airways lays off 1900 of its employees in various work profiles. Two days later, company Chairman Naresh Goyal orders reinstatement of all the sacked employees.
30 Oct: Real estate major Unitech sells 60% stake in telecom venture Unitech Wireless to Norway-based Telenor for Rs 6,120 crore.
4 Nov: Kolkata-based FMCG firm Emami completes acquisition of Zandu Pharmaceuticals.
12 Nov: Japan’s largest mobile operator by users, NTT DoCoMo picks up 26% stake in mobile and wireline operator Tata Teleservices (TTSL) for $2.7 billion.
21 Nov: Dabur India acquires 72.15% stake in women’s skin-care company Fem Care Pharma (FCPL) for Rs203.7 crore.
11 Dec: State-owned telecom operator MTNL launches third generation (3G) services.
16 Dec: India’s fourth largest IT firm Satyam Computer announces acquisition of Maytas Properties and Mytas Infra for $1.6 billion dollars.
17 Dec: Satyam calls off acquisition after angry shareholders response. Since then, four of the company’s independent directors have quit.
23 Dec: Country’s third-largest software services provider Wipro agrees to buy Citi Technology Services Ltd from Citigroup for about $127 million.
25 Dec: World Bank says Satyam barred from doing business with it for eight years; Reliance Petroleum commissions its 580,000 barrels per day refinery ar Jamnagar.
31 Dec: Stock market benchmark Sensex closes trading for the year down 69 points at 9,647.31. It had peaked to 21,206.77 points in January.
The global economic downturn made 2008 a forgettable year. It had its usual share of ups and downs for India Inc. Here’s a look at some of the events that shaped the year:
10 Jan: ‘Nano´ is born. The world’s cheapest car costing Rs100,000 unveiled at 9th Auto Expo in Delhi by Ratan Tata.
15 Jan: India’s largest IPO by Reliance Power to raise Rs11,000 crore opens. The issue closed on 18 January but was hammered in the market on debut. The company issued bonus shares to retain investor confidence.
8 Feb: Developer Emaar MGF Land Ltd calls off Rs7,000 crore IPO following poor investor response.
11 Mar: Real estate firm BPTP strikes India’s biggest ever land deal by shelling out Rs5,006 crore for a 95 acre commercial plot at Noida. As financial crisis deepens, the company is now facing problems paying the sum.
26 Mar: Tata Motors announces agreement with Ford Motor to acquire Jaguar Land Rover for $2.3 billion.
19 Apr: Cancer drug maker Dabur Pharma acquired by Singapore-based Fresenius Kabi for nearly Rs1,000 crore.
6 May: Telecom operator Bharti Airtel in talks with South Africa’s MTN Group for a deal that would give it presence in 21 African and Asian countries.
24 May: Bharti Airtel backs out from MTN deal.
28 May: Anil Ambani-run Reliance Communications begins discussions for reverse merger with MTN. Talks fail in July.
11 June: Japanese drug firm Daiichi Sankyo acquires control of Ranbaxy for over Rs22,000 crore - essays biggest Indian pharma industry deal.
18 June: India gets first commercially available hybrid car when Honda Siel launched its Civic Hybrid priced at Rs21.5 lakh.
25 June: Idea Cellular acquires 40.8% stake in a smaller rival Spice Communications for about Rs2700 crore.
27 June: Russia’s Severstal outbids Essar’s $1.2 billion offer for US-based Esmark.
11 July: Gurgaon-based WNS (Holdings) Ltd acquires UK insurance major Aviva’s BPO business Aviva Global Services (AGS) for around $228 million (Rs980 crore).
8 Aug: South Korean steel giant Posco gets approval from Supreme Court to go ahead with its Rs51,000 crore steel project in Orissa after getting environmental clearance.
11 Aug: Low-cost airline Spicejet secures $100 million investment from Goldman Sachs and WL Ross.
21 Aug: Apple’s iPhone makes India debut.
16 Sep: US Foods and Drug Administration bans 30 drugs manufactured by Ranbaxy Laboratories at its two facilities in Dewas and Poanta Sahib.
23 Sep: UAE telecom giant Emirates Telecommunications Corp (Etisalat) buys about 45% of Swan Telecom for up to $900 million.
26 Sep: HCL Technologies makes a cash offer of 650 pence a share for acquiring UK-based SAP consulting firm Axon Group.
3 Oct: Tata Motors pulls out of Singur, where it planned to set up the mother plant for Nano at an investment of Rs1,500 crore.
7 Oct: Tata Motors announces new Nano plant will come up at Sanand in Gujarat at an investment of Rs2000 crore.
Oct 8: TCS acquires 96.3% stake in Citigroup Global Services Ltd, the BPO outfit of the American bank, for $505 million.
13 Oct: Jet Airways and Kingfisher Airlines form operational alliance to cut costs.
15 Oct: Jet Airways lays off 1900 of its employees in various work profiles. Two days later, company Chairman Naresh Goyal orders reinstatement of all the sacked employees.
30 Oct: Real estate major Unitech sells 60% stake in telecom venture Unitech Wireless to Norway-based Telenor for Rs 6,120 crore.
4 Nov: Kolkata-based FMCG firm Emami completes acquisition of Zandu Pharmaceuticals.
12 Nov: Japan’s largest mobile operator by users, NTT DoCoMo picks up 26% stake in mobile and wireline operator Tata Teleservices (TTSL) for $2.7 billion.
21 Nov: Dabur India acquires 72.15% stake in women’s skin-care company Fem Care Pharma (FCPL) for Rs203.7 crore.
11 Dec: State-owned telecom operator MTNL launches third generation (3G) services.
16 Dec: India’s fourth largest IT firm Satyam Computer announces acquisition of Maytas Properties and Mytas Infra for $1.6 billion dollars.
17 Dec: Satyam calls off acquisition after angry shareholders response. Since then, four of the company’s independent directors have quit.
23 Dec: Country’s third-largest software services provider Wipro agrees to buy Citi Technology Services Ltd from Citigroup for about $127 million.
25 Dec: World Bank says Satyam barred from doing business with it for eight years; Reliance Petroleum commissions its 580,000 barrels per day refinery ar Jamnagar.
31 Dec: Stock market benchmark Sensex closes trading for the year down 69 points at 9,647.31. It had peaked to 21,206.77 points in January.
Business review of 2008
Households received a New Year blow to their finances after Centrica increased gas and electricity tariffs by an average 15 per cent.
Last orders loomed for Foster's brewer Scottish & Newcastle after it agreed a £7.8bn takeover offer from rivals Heineken and Carlsberg; the price of oil set a new record above 100 US dollars a barrel.
In the north west, Altrincham recruitment firm NES reported a 28 per cent rise in annual profits; ACP Capital shelved plans to buy Manchester-based lender Davenham Group; the £12m Glassworks scheme in Manchester's Northern Quarter collapsed when its development companies went into administration; Jelf Group bought Manchester-based insurance group Manson for up to £18.7m.
February
Northern Rock was nationalised after Chancellor Alistair Darling called time on private sector attempts to rescue the ailing lender.
Other banks were also suffering, although Barclays and Royal Bank of Scotland shrugged off further credit crunch write-downs to post profits of £7.08bn and £10bn respectively for 2007. Barclays warned of "at least" another six months of turmoil, but RBS chief Sir Fred Goodwin said the company had begun the year with "real momentum" after its acquisition of ABN Amro. The UK's five biggest banks chalked up a mammoth £39bn in profits for 2007. Oil major BP said it would axe nearly one in 10 of its UK staff under cost-cutting plans.
March
City watchdogs were forced to step in and warn over suspicious trading tactics after speculation swirled around Britain's biggest lender, Halifax Bank of Scotland. HBOS shares dropped as much as 20 per cent at one stage, as talk of further credit crunch pain swept the City, despite strong denials from the firm. Thousands of jobs and pensions were safeguarded when ownership of Jaguar and Land Rover passed from Ford to Tata Motors of India.
Around 69,000 staff at John Lewis and Waitrose were offered bonuses worth a fifth of their salary after annual profits rose to £379.8m.
In the north west, Stobart Group bought Cheshire haulier James Irlam & Sons for £59.9m; losses of £42.1m at Wilmslow air conditioning business Worthington Nicholls were after `a complete failure of corporate governance at all levels'; the M.E.N. revealed Manchester Airport Group's interest in buying Gatwick Airport.
Fitted furniture firm Neville Johnson, of Trafford Park, was sold for £12.5m by Endless to Key Capital Partners.
April
Halifax Bank of Scotland called on shareholders for £4bn to strengthen its balance sheet. HBOS said the rights issue, which followed Royal Bank of Scotland's record European cash call of £12bn, was needed to "consolidate its competitive position". Elsewhere in the sector, the world's largest bank, Citigroup, announced plans to cut 9,000 jobs but boosted shares with lower than expected losses.
Chocolate giant Mars confirmed a deal to buy Juicy Fruit and Extra chewing gum group Wrigley for around £11.6bn. Bank of England governor Mervyn King attacked the City for its excessive pay packages and heavy risk taking.
Wigan-based JJB Sports announced its intention to shut 72 underperforming stores with the loss of 800 jobs by the end of the month.
The Co-operative revealed that it was interested in buying supermarket chain Somerfield.
A flurry of deals ahead of capital gains tax changes saw a £12.5m management buyout of Denton's KDC Contractors, and the sale of Richardson Projects, a Rochdale-based building business, for up to £40.5m to Rok; Children's nursery chain Kids unlimited underwent a secondary buyout, valuing the business at £45m; duvets to curtains company Character World saw RJD Partners take a sizeable stake, and Dawn Gibbins sold Cheshire-based Flowcrete to American firm RPM International for more than £30m; Bolton-based retail chain Cash Generator was sold by founder and chairman Brian Lewis to his management team and New World Corporate Finance, of London.
May
Business class-only airline Silverjet called in administrators after a vital cash injection from a Middle Eastern investor failed to materialise. Marks & Spencer's annual profits topped £1bn for the first time in a decade, but staff failed to cash in after the retail giant slashed bonus payouts. Sainsbury's crowned a three-year turnaround plan with annual profits of £488m, up 28 per cent. Buy-to-let specialist Bradford & Bingley announced a £300m rights issue just weeks after it told the City it had no need for a bail-out. The head of Northern Rock said it was "in the commercial interests" of the publicly-owned lender to continue sponsoring Premier League team Newcastle United.
In the north west, Bodycote International announced plans to sell its testing division; Dragons' Den star Theo Paphitis backed the Many Hands Campaign to raise £250,000 for the New Children's Hospital Appeal in Manchester; Blue Oar, a London broker, called off its bidding for Manchester stockbroking business WH Ireland.
June
Mervyn King warned that "innocent bystanders" could be at risk if banks failed to curb excessive risk-taking.
Bradford & Bingley angered shareholders by agreeing to sell a 23 per cent stake to private equity firm Texas Pacific Group and carrying out a deep-discounted rights issue.
Norwich Union owner Aviva warned of up to 1,800 redundancies; Woolworths caused a surprise by ending chief executive Trevor Bish-Jones' six-year run in one of the high street's toughest jobs; Primark said it had stopped buying clothes from three Indian suppliers after it emerged child labour was being used to finish the goods.
In the north west, Urban Splash founder Tom Bloxham told the M.E.N. that he remained bullish despite housebuilders facing the worst slump for a generation, although the firm would later slash its workforce; the Serious Fraud Office began a probe into events at Worthington Nicholls; showers and tiles business Norcros said it was cutting more than 200 jobs across the UK and South Africa as the credit crunch began to bite.
July
British Gas parent Centrica fuelled anger over record price hikes by announcing a £144.6m dividend payout for its shareholders.
The 16 per cent jump in the dividend came as the group posted better than expected half-year profits of £992m.
Spanish banking giant Santander made a thrust into the UK market by agreeing a £1.26bn deal to buy Alliance & Leicester.
Sir Stuart Rose received a broadside from shareholders over his controversial dual role at the helm of Marks & Spencer. His re-election as executive chairman failed to win the support of investors representing 22 per cent of the group's shares voting at the firm's annual meeting. His role - combining chairman and chief executive - raised the ire of many investors as it breached corporate best practice. The vote was another blow to Sir Stuart after falling sales prompted a shock profits warning from M&S.
In the north west, CCTV to air conditioning group ID Support Services was sold to private equity outfit Penta Capital Partners in a deal which valued it at £25m.
Developer West Properties revealed plans to splash out £250m on five hotels in Manchester; the Co-op hailed its return to the big league of food retailing after agreeing a £1.6bn takeover of rival Somerfield; ATP International Group, a travel management company which sponsors the Belle Vue Aces, was sold in a £73m deal to Barclays Private Equity; rebel shareholders tried, but ultimately failed, to oust Lee Birkett, co-founder and chief executive of Cheshire-based financial services firm Prestbury Holdings, and his mother, its finance director.
August
The UK's nuclear power strategy was mired in uncertainty after a takeover of generator British Energy collapsed at the eleventh hour. The £12bn swoop by state-owned EDF of France had been seen as a key step towards the proposed construction of new nuclear power plants in the UK. But EDF's hopes of unveiling a takeover deal were dashed when two of British Energy's biggest City shareholders reportedly called for a higher price tag to reflect rising energy prices.
Royal Bank of Scotland boss Sir Fred Goodwin insisted that he remained the best man for the job despite unveiling the group's first loss in 40 years as a public company. The NatWest and Direct Line owner reported pre-tax losses of £691m for the first half of this year thanks mainly to a £5.9bn credit crunch hit. It was the second biggest banking loss in UK corporate history, and compared with £5bn of profits the bank made last year. In the north west, the new boss of Holland's Pies, Neil Court-Johnston, pledged to revive the iconic company by going back to basics; Vimto maker Nichols' profits in the first half of its centenary year jumped 15.5 per cent to £3.2m; Crown Paints, based in Darwen, was sold by Akzo Nobel to Endless for £70m;
Bodycote sold its testing division for £417m to US private equity firm Clayton Dubilier and Rice; the M.E.N. revealed plans to take Bolton healthcare IT group Ascribe private.
September
The dramatic collapse of US investment bank Lehman Brothers sent stock markets into freefall. There were fears for thousands of UK jobs after Lloyds TSB agreed the UK's biggest bank rescue deal with the ailing Halifax Bank of Scotland. The government-approved £12bn takeover would create a "mega-bank".
Bradford & Bingley was another casualty after the government seized control of the mortgage lender. B&B's fall into public ownership put £50bn - including £41bn in mortgage loans - on the public balance sheet. The company's savings business and branches, with 2.7m customers and £20bn in deposits, were sold to Santander for £612m.
Tens of thousands of holidaymakers were left stranded after the UK's third largest tour operator went into administration and grounded all flights. XL Leisure Group declared bankruptcy.
Manchester City was sold for £200m to Abu Dhabi investors in a deal which stunned the soccer world; the Parliamentary and Health Service Ombudsman announced plans to open a new office in Piccadilly and create 150 jobs; the Cheshire and Derbyshire building societies announced mergers with the Nationwide after turning to the mortgage giant for shelter from financial difficulties; JJB Sports revealed it had lost £9.7m in the first half of the year, and worse was to follow as its shares tumbled and an insurer refused to cover suppliers; water additives business BWA, of Stretford, was sold to United International Bank of Bahrain for £100m.
October
The government said it would throw a taxpayer lifeline to three of the UK's biggest banks. The stakes in Royal Bank of Scotland, Lloyds TSB and Halifax Bank of Scotland came with strings attached, including curbs on management bonuses.
Savers found themselves exposed to the problems in the Icelandic banking sector when their accounts in internet bank Icesave were frozen as its parent, Landsbanki, was nationalised by the Icelandic government. Around 230,000 UK savers held money with the bank, alongside 108 councils and other public bodies which had a total of more than £1bn invested with it.
Northern Rock denied claims that it took an "aggressive" attitude towards repossessions, after research showed the nationalised lender was more than twice as likely to repossess homes as other lenders.
In the north west, NWF Group sold its garden centres for £14.5m; Co-op Financial Services' plans to merge with Britannia Building Society were confirmed.
And the Co-op's takeover of Somerfield was given the green light by competition watchdogs.
November
Top UK firms joined the growing list of companies cutting jobs. Aerospace giant Rolls-Royce, defence firm BAE Systems and Anglo-Swedish drugmaker AstraZeneca were among firms to unveil cuts.
Taxpayers were landed with a 57.9 per cent stake in Royal Bank of Scotland after investors snubbed its £15bn share offer. High street lenders were told by Alistair Darling to lower mortgage rates "as quickly as possible" after the Bank of England slashed its base rate by 1.5 per cent to three per cent. Darling slashed VAT in a £20bn cash boost.
PZ Cussons, Nichols, NCC Group, Advanced Medical Solutions, ukfast.net and gettingpersonal.co.uk won M.E.N. Business of the Year awards; the government provoked anger by postponing a change of chairman at the Northwest Regional Development Agency to ensure continuity during the economic crisis. Critics said the process had been rendered a `farce'.
December
The death knell for Woolworths was sounded when administrators confirmed all its stores would close by January 5, at the likely cost of 27,000 jobs.
Other high street names to hit the buffers included MFI, Xavvi, Whittard of Chelsea, The Officers Club, Adams and USC.
UK banks lined up to reveal billions in potential losses as a result of alleged fraud by Wall Street investment manager Bernard Madoff.
Manchester-based London Scottish Bank fell into administration, and Bolton-based kitchen maker Bernsteing Group Holdings was another casualty. The Brookside Garden Centre at Poynton was sold out of administration, safeguarding scores of jobs.
Last orders loomed for Foster's brewer Scottish & Newcastle after it agreed a £7.8bn takeover offer from rivals Heineken and Carlsberg; the price of oil set a new record above 100 US dollars a barrel.
In the north west, Altrincham recruitment firm NES reported a 28 per cent rise in annual profits; ACP Capital shelved plans to buy Manchester-based lender Davenham Group; the £12m Glassworks scheme in Manchester's Northern Quarter collapsed when its development companies went into administration; Jelf Group bought Manchester-based insurance group Manson for up to £18.7m.
February
Northern Rock was nationalised after Chancellor Alistair Darling called time on private sector attempts to rescue the ailing lender.
Other banks were also suffering, although Barclays and Royal Bank of Scotland shrugged off further credit crunch write-downs to post profits of £7.08bn and £10bn respectively for 2007. Barclays warned of "at least" another six months of turmoil, but RBS chief Sir Fred Goodwin said the company had begun the year with "real momentum" after its acquisition of ABN Amro. The UK's five biggest banks chalked up a mammoth £39bn in profits for 2007. Oil major BP said it would axe nearly one in 10 of its UK staff under cost-cutting plans.
March
City watchdogs were forced to step in and warn over suspicious trading tactics after speculation swirled around Britain's biggest lender, Halifax Bank of Scotland. HBOS shares dropped as much as 20 per cent at one stage, as talk of further credit crunch pain swept the City, despite strong denials from the firm. Thousands of jobs and pensions were safeguarded when ownership of Jaguar and Land Rover passed from Ford to Tata Motors of India.
Around 69,000 staff at John Lewis and Waitrose were offered bonuses worth a fifth of their salary after annual profits rose to £379.8m.
In the north west, Stobart Group bought Cheshire haulier James Irlam & Sons for £59.9m; losses of £42.1m at Wilmslow air conditioning business Worthington Nicholls were after `a complete failure of corporate governance at all levels'; the M.E.N. revealed Manchester Airport Group's interest in buying Gatwick Airport.
Fitted furniture firm Neville Johnson, of Trafford Park, was sold for £12.5m by Endless to Key Capital Partners.
April
Halifax Bank of Scotland called on shareholders for £4bn to strengthen its balance sheet. HBOS said the rights issue, which followed Royal Bank of Scotland's record European cash call of £12bn, was needed to "consolidate its competitive position". Elsewhere in the sector, the world's largest bank, Citigroup, announced plans to cut 9,000 jobs but boosted shares with lower than expected losses.
Chocolate giant Mars confirmed a deal to buy Juicy Fruit and Extra chewing gum group Wrigley for around £11.6bn. Bank of England governor Mervyn King attacked the City for its excessive pay packages and heavy risk taking.
Wigan-based JJB Sports announced its intention to shut 72 underperforming stores with the loss of 800 jobs by the end of the month.
The Co-operative revealed that it was interested in buying supermarket chain Somerfield.
A flurry of deals ahead of capital gains tax changes saw a £12.5m management buyout of Denton's KDC Contractors, and the sale of Richardson Projects, a Rochdale-based building business, for up to £40.5m to Rok; Children's nursery chain Kids unlimited underwent a secondary buyout, valuing the business at £45m; duvets to curtains company Character World saw RJD Partners take a sizeable stake, and Dawn Gibbins sold Cheshire-based Flowcrete to American firm RPM International for more than £30m; Bolton-based retail chain Cash Generator was sold by founder and chairman Brian Lewis to his management team and New World Corporate Finance, of London.
May
Business class-only airline Silverjet called in administrators after a vital cash injection from a Middle Eastern investor failed to materialise. Marks & Spencer's annual profits topped £1bn for the first time in a decade, but staff failed to cash in after the retail giant slashed bonus payouts. Sainsbury's crowned a three-year turnaround plan with annual profits of £488m, up 28 per cent. Buy-to-let specialist Bradford & Bingley announced a £300m rights issue just weeks after it told the City it had no need for a bail-out. The head of Northern Rock said it was "in the commercial interests" of the publicly-owned lender to continue sponsoring Premier League team Newcastle United.
In the north west, Bodycote International announced plans to sell its testing division; Dragons' Den star Theo Paphitis backed the Many Hands Campaign to raise £250,000 for the New Children's Hospital Appeal in Manchester; Blue Oar, a London broker, called off its bidding for Manchester stockbroking business WH Ireland.
June
Mervyn King warned that "innocent bystanders" could be at risk if banks failed to curb excessive risk-taking.
Bradford & Bingley angered shareholders by agreeing to sell a 23 per cent stake to private equity firm Texas Pacific Group and carrying out a deep-discounted rights issue.
Norwich Union owner Aviva warned of up to 1,800 redundancies; Woolworths caused a surprise by ending chief executive Trevor Bish-Jones' six-year run in one of the high street's toughest jobs; Primark said it had stopped buying clothes from three Indian suppliers after it emerged child labour was being used to finish the goods.
In the north west, Urban Splash founder Tom Bloxham told the M.E.N. that he remained bullish despite housebuilders facing the worst slump for a generation, although the firm would later slash its workforce; the Serious Fraud Office began a probe into events at Worthington Nicholls; showers and tiles business Norcros said it was cutting more than 200 jobs across the UK and South Africa as the credit crunch began to bite.
July
British Gas parent Centrica fuelled anger over record price hikes by announcing a £144.6m dividend payout for its shareholders.
The 16 per cent jump in the dividend came as the group posted better than expected half-year profits of £992m.
Spanish banking giant Santander made a thrust into the UK market by agreeing a £1.26bn deal to buy Alliance & Leicester.
Sir Stuart Rose received a broadside from shareholders over his controversial dual role at the helm of Marks & Spencer. His re-election as executive chairman failed to win the support of investors representing 22 per cent of the group's shares voting at the firm's annual meeting. His role - combining chairman and chief executive - raised the ire of many investors as it breached corporate best practice. The vote was another blow to Sir Stuart after falling sales prompted a shock profits warning from M&S.
In the north west, CCTV to air conditioning group ID Support Services was sold to private equity outfit Penta Capital Partners in a deal which valued it at £25m.
Developer West Properties revealed plans to splash out £250m on five hotels in Manchester; the Co-op hailed its return to the big league of food retailing after agreeing a £1.6bn takeover of rival Somerfield; ATP International Group, a travel management company which sponsors the Belle Vue Aces, was sold in a £73m deal to Barclays Private Equity; rebel shareholders tried, but ultimately failed, to oust Lee Birkett, co-founder and chief executive of Cheshire-based financial services firm Prestbury Holdings, and his mother, its finance director.
August
The UK's nuclear power strategy was mired in uncertainty after a takeover of generator British Energy collapsed at the eleventh hour. The £12bn swoop by state-owned EDF of France had been seen as a key step towards the proposed construction of new nuclear power plants in the UK. But EDF's hopes of unveiling a takeover deal were dashed when two of British Energy's biggest City shareholders reportedly called for a higher price tag to reflect rising energy prices.
Royal Bank of Scotland boss Sir Fred Goodwin insisted that he remained the best man for the job despite unveiling the group's first loss in 40 years as a public company. The NatWest and Direct Line owner reported pre-tax losses of £691m for the first half of this year thanks mainly to a £5.9bn credit crunch hit. It was the second biggest banking loss in UK corporate history, and compared with £5bn of profits the bank made last year. In the north west, the new boss of Holland's Pies, Neil Court-Johnston, pledged to revive the iconic company by going back to basics; Vimto maker Nichols' profits in the first half of its centenary year jumped 15.5 per cent to £3.2m; Crown Paints, based in Darwen, was sold by Akzo Nobel to Endless for £70m;
Bodycote sold its testing division for £417m to US private equity firm Clayton Dubilier and Rice; the M.E.N. revealed plans to take Bolton healthcare IT group Ascribe private.
September
The dramatic collapse of US investment bank Lehman Brothers sent stock markets into freefall. There were fears for thousands of UK jobs after Lloyds TSB agreed the UK's biggest bank rescue deal with the ailing Halifax Bank of Scotland. The government-approved £12bn takeover would create a "mega-bank".
Bradford & Bingley was another casualty after the government seized control of the mortgage lender. B&B's fall into public ownership put £50bn - including £41bn in mortgage loans - on the public balance sheet. The company's savings business and branches, with 2.7m customers and £20bn in deposits, were sold to Santander for £612m.
Tens of thousands of holidaymakers were left stranded after the UK's third largest tour operator went into administration and grounded all flights. XL Leisure Group declared bankruptcy.
Manchester City was sold for £200m to Abu Dhabi investors in a deal which stunned the soccer world; the Parliamentary and Health Service Ombudsman announced plans to open a new office in Piccadilly and create 150 jobs; the Cheshire and Derbyshire building societies announced mergers with the Nationwide after turning to the mortgage giant for shelter from financial difficulties; JJB Sports revealed it had lost £9.7m in the first half of the year, and worse was to follow as its shares tumbled and an insurer refused to cover suppliers; water additives business BWA, of Stretford, was sold to United International Bank of Bahrain for £100m.
October
The government said it would throw a taxpayer lifeline to three of the UK's biggest banks. The stakes in Royal Bank of Scotland, Lloyds TSB and Halifax Bank of Scotland came with strings attached, including curbs on management bonuses.
Savers found themselves exposed to the problems in the Icelandic banking sector when their accounts in internet bank Icesave were frozen as its parent, Landsbanki, was nationalised by the Icelandic government. Around 230,000 UK savers held money with the bank, alongside 108 councils and other public bodies which had a total of more than £1bn invested with it.
Northern Rock denied claims that it took an "aggressive" attitude towards repossessions, after research showed the nationalised lender was more than twice as likely to repossess homes as other lenders.
In the north west, NWF Group sold its garden centres for £14.5m; Co-op Financial Services' plans to merge with Britannia Building Society were confirmed.
And the Co-op's takeover of Somerfield was given the green light by competition watchdogs.
November
Top UK firms joined the growing list of companies cutting jobs. Aerospace giant Rolls-Royce, defence firm BAE Systems and Anglo-Swedish drugmaker AstraZeneca were among firms to unveil cuts.
Taxpayers were landed with a 57.9 per cent stake in Royal Bank of Scotland after investors snubbed its £15bn share offer. High street lenders were told by Alistair Darling to lower mortgage rates "as quickly as possible" after the Bank of England slashed its base rate by 1.5 per cent to three per cent. Darling slashed VAT in a £20bn cash boost.
PZ Cussons, Nichols, NCC Group, Advanced Medical Solutions, ukfast.net and gettingpersonal.co.uk won M.E.N. Business of the Year awards; the government provoked anger by postponing a change of chairman at the Northwest Regional Development Agency to ensure continuity during the economic crisis. Critics said the process had been rendered a `farce'.
December
The death knell for Woolworths was sounded when administrators confirmed all its stores would close by January 5, at the likely cost of 27,000 jobs.
Other high street names to hit the buffers included MFI, Xavvi, Whittard of Chelsea, The Officers Club, Adams and USC.
UK banks lined up to reveal billions in potential losses as a result of alleged fraud by Wall Street investment manager Bernard Madoff.
Manchester-based London Scottish Bank fell into administration, and Bolton-based kitchen maker Bernsteing Group Holdings was another casualty. The Brookside Garden Centre at Poynton was sold out of administration, safeguarding scores of jobs.
Sunday, December 28, 2008
Investors shouldn't bank on a prosperous new year around the next corner
January: IT was truly a rotten, rotten year for the property and equity market, never mind the State finances. 2008 started off on a downbeat note and got rapidly worse.
In January we woke up to the news that Christmas shoppers had not produced the expected lift for tax revenues which in the first few days of the year were revealed to be €1.826bn short of expectations for 2007. At that time Taoiseach Brian Cowen was naively predicting a deficit of €4.8bn for the year ahead, while Davy's was predicting that growth would slow to 2.5 per cent.
Such innocent times.
Mobile operator 3 Ireland hired investment bank Goldman Sachs to advise it on a possible bid for its €1bn-valued rival Meteor.
We found out Brendan Investments, the controversial Eddie Hobbs-directed property vehicle, was heavily supported in its search for investors by Hobbs himself and funds linked with him. The share register of the property investment company, which only managed to raise €13m despite a target of over €50m, revealed that three directors -- Hobbs, managing director Vincent Regan and chairman Dermot Flanagan SC -- each sunk €600,000 of their own money into the venture.
Developer Liam Carroll added to his holdings in Greencore and Irish Continental buying a €35m stake in Aer Lingus at €2.06 per share.
With the international financial system already reeling from the subprime crisis, the revelation that rogue trader Jerome Kerviel had managed to lose his employers Societe Generale €4.9bn delivered another hammer blow to investor confidence.
February
Property developer Sean Dunne borrowed a further €500m from a group of Irish and international banks to fund the development of his controversial €3bn Ballsbridge skyscraper complex. Ulster Bank, Kaupthing Singer Friedlander and another Irish financial institution all agreed to lend Dunne the money. Blue-chip estate agents, Lisney, revealed they had swung into the red last year with a loss after tax of €140,293.
Despite the emerging chaos in the property markets the banks were still riding relatively high. On February 21, AIB closed at €13.80, Anglo Irish Bank finished at €8.84, while Irish Life & Permanent closed at €10.20 and Bank of Ireland traded at €9.50. What many would give to be back at those levels now.
In perhaps a sign that recession was on the way Guinness reversed years of decline and announced that sales of its stout rose 3 per cent in Ireland in the second half of 2007. "'Guinness is back in the black' is the headline for me," quipped Michael Ioakimides of Diageo Ireland.
Investors and banks had to write off €820m in the Dublin specialist lender International Securities Trading Corporation (ISTC), making it the largest cash loss in Irish corporate history. Some of the State's wealthiest businessmen, investors and leading international banks were owed €878m by ISTC, which earned profits by borrowing money in the international markets and lending it on to banks. However, the company only had assets worth €57.8m, leaving investors and bankers facing massive losses.
March
The near-collapse and bail-out of Wall Street investment bank Bear Stearns raised fundamental questions about the value of bank shares. While the collapse in Anglo Irish Bank's share price began in earnest with billions being wiped off its value on successive days
Kerry's newly installed chief Stan McCarthy executed his first major acquisition in a drive to double the food group's annual sales to €10bn with a €165m deal to buy out the consumer food brands owned by Reox, the Diarygold spin-off.
Building materials giant CRH made its first foray into India with a €290m deal, buying 50 per cent of Hyderabad-based My Home Industries, one of the biggest cement producers in south India.
Mobile operator 3 Ireland pulled out of discussions with Eircom over a planned bid for its €800m Meteor business.
Former Kerry group boss Denis Brosnan spent over €65m to buy the upmarket muesli maker Dorset Cereals -- described as the brekkie of choice of Britain's "chattering classes".
April
CRH chief Liam O'Mahony's pay rose to more than €2.79m from €2.66m in 2007 -- but at the same time its share price fell to €23.85 at the end of 2007 from €31.54 at the beginning of the year .
FBD, the listed insurance company, rejected a €1.2bn takeover approach from Dutch giant Eureko.
Tullow Oil looked set to realise €45m from the sale of 10 drilling blocks in the North Sea to Venture Production, an Aberdeen-based oil and gas company.
Heineken reiterated its determination to take control of Cork brewer Beamish & Crawford as part of its joint takeover with Carlsberg of Beamish parent Scottish & Newcastle.
The European Central Bank woke up to the fact that global financial turmoil could have a real impact on eurozone economies. However, it was still not ready to cut rates.
Utility and waste management specialist NTR bought a 51 per cent holding in Phoenix, Arizona-based Stirling Energy Systems (SES), which is developing solar-powered electricity generation plants, for €63m. It also took a controlling stake in Wind Capital Group, a Missouri-based wind farm operator. Closer to home in Germany it incurred a loss of up to €35m on the closure of its German bio-diesel unit.
Royal Bank of Scotland, owner of Ulster Bank and First Active here, had a huge rights issue in an attempt to beef up its balance sheet.
IAWS chief executive Owen Killian was by far the best-rewarded chief executive in 2007. The bagel baker landed a €10.15m package, according to the latest annual report.
May
Ulick McEvaddy, co-founder of air refuelling company Omega Air, landed a five-year $250m contract to refuel the Tornado fighter jet fleet of Britain's Royal Air Force.
The Sunday Independent revealed that an unencrypted laptop owned by the Financial Regulator had been stolen in 2005.
Aer Lingus predicted a half-year loss as economic gloom and oil price rises started to hit its bottom line. Meanwhile, Ryanair won the subsidised Dublin-Kerry contract from under the nose of Aer Arann.
Brian O'Reilly, a senior director of financial giant UBS warned that Irish banks would be forced into a new rights issue and would have to deal with a lot of uncertainty. David Drumm, now former CEO of Anglo Irish Bank, dismissed his views, claiming "there is no requirement for Anglo to raise capital".
DCC's Jim Flavin resigned over the fallout from the insider trading case regarding the sale of shares in Fyffes taken against the group in 2000.
June
The family of Social Affairs Minister Mary Hanafin invested in Reservoir Resources, an oil exploration firm with interests in onshore prospects in southern England.
Cengage Learning, a division of Barry O'Callaghan's Education Media and Publishing Group was sold for €482m in cash.
As it was revealed that Airtricity founder Eddie O'Connor created the greatest number of millionaires in Irish corporate history through its €2.2bn sale, he ploughed €30m into new wind energy firm Mainstream Renewable Power, and later sold a 15 per cent stake to Barclays Capital.
Bank of Ireland and Ulster Bank began to increase the numbers of staff working in their debt management departments.
The $80bn Carlyle Group, one of the world's most powerful private equity funds, confirmed that it was looking at buying distressed Irish property assets. It later emerged as a member of the Mallabracca consortium, which was more recently considering investing in the banks.
Noticeable declines in sales of breakfast rolls, big-screen TVs and DIY goods began to emerge at Retail Excellence Ireland as the recession started to bite.
July
Iberdrola, Spain's second largest utility, bought a 22.6 per cent stake in Irish oil and gas explorer Petroceltic for $55m.
Irish explorer Conroy Diamonds and Gold struck a one million ounce deposit of gold at Clontibret, Co Monaghan.
McDonald's saw a spike in job applications from Irish people for the first time in nearly a decade.
Tullow Oil boss Aidan Heavey cashed in a €37m bonus on the back of a healthy share price and rising oil production in its huge Jubilee field in Ghana and its three oilfields in Uganda.
CIE, semi-state parent of Dublin Bus, Bus Eireann and Iarnrod Eireann, lost €406m in 2007, despite an €800m State subsidy.
August
IAWS became a €2.7bn food group after acquiring Swiss baker Hiestand.
Tesco upped its advertising budget to nearly €4m in May and June in a bid to fight off competition from Aldi and Lidl. It later fought back by launching a new cashsavers range of products.
Oman Investment Fund, a sovereign wealth fund controlled by the Middle Eastern country's government, snapped up a 50 per cent stake in Derek Quinlan's Jurys Inns hotel chain for €200m.
As torrential rain hit the country, loss adjusters GAB Robins said flood damage claims could reach €100m.
Ion Equity announced plans to invest tens of millions in creating a new chain of premium budget hotels under a new brand called Pillo Hotels.
Kingspan bought US panel maker Metecno for €75m, while Eirgrid bought Northern Ireland grid operator SONI for €30m.
The Competition Authority blocked Kerry Group's €165m acquisition of Breeo Foods.
September
September opened with the US government bailing out mortgage giants Fannie Mae and Freddie Mac. Both firms had been brought to their knees by the collapse in the US housing market. With soaring losses rapidly eroding their capital Uncle Sam had no alternative but to act to save the pair, which between them own or guarantee almost half of the $12 trillion US mortgage market.
On September 7, US Treasury Secretary Hank Paulson announced that the Federal Government was pumping up to €100bn each into Freddie and Fannie. It also took an 80 per cent stake in both institutions and replaced both of their chief executives. Irish Government, please note.
Wall Street investment bank Lehman Brothers was not so lucky. In what quickly turned out to be a disastrously misplaced piece of free-market bravado, the US authorities allowed it to go bust on September 14.
Lehman almost brought the international financial system down with it. Merrill Lynch quickly agreed to be bought by Bank of America while the mighty Goldman Sachs had to go cap in hand to Warren Buffett for an emergency cash transfusion.
On September 17, British bank HBOS collapsed into the arms of its rival Lloyds TSB after the HBOS share price fell by 40 per cent on one day.
Across the Atlantic the White House was forced into a humiliating U-turn and announced a giant $700bn bailout for the US banks. Despite opposition from Republican congressman the package finally cleared the House of Representatives.
The international banking crisis finally reached this country on September 29 when Irish bank shares lost a third of their value in a single day. With investors dumping the shares and the threat of a run by nervous depositors on one or more of the Irish banks rapidly increasing, the Government was forced to act.
After a night of crisis talks the Government announced it was extending an unconditional two-year guarantee of the deposits and bonds of the Irish banks. While the deposit guarantee removed the threat of a run it did nothing to address the underlying problem, a chronic lack of capital. As a result bank lending dried up as October wore on.
October
In the UK, after having denied the severity of the problem for several weeks, PM Gordon Brown and Chancellor Alistair Darling moved decisively on October 8 announcing a £500bn rescue package for the UK banking system, in which the government took major stakes in both RBS and Lloyds/TSB.
On the same day the ECB finally bowed to the inevitable when it cut eurozone interest rates by 0.5 per cent as part of a programme of rate cuts by the world's central banks.
On October 14, Brian Lenihan unveiled his maiden budget, which had been brought forward by seven weeks in response to the deepening economic crisis. Why did he bother? Apart from burdening the economy with a further €2bn of taxes it did nothing to tackle runaway public spending but incurred the wrath of every pensioner in the country by scrapping medical cards for the over-70s. A rapid climbdown on the medical card issue was followed by a series of further embarrassing retreats which quickly made a nonsense of the Government's budgetary arithmetic.
On October 21, developer Michael Taggart became the first high-profile casualty of the property downturn when his firm Taggart Holdings was placed in administration. Three days later Sean Quinn sensationally stepped down as chairman of Quinn Insurance when it was disclosed that the insurer had made an unauthorised €288m loan to another Quinn Group firm.
November
On November 6, the ECB cut interest rates once again by a further 0.5 per cent to 3.25 per cent. Implicitly conceding that it had got it totally wrong when it raised rates in July, ECB president Jean-Claude Trichet signalled that there would be further rate cuts to come.
Then on November 24, UK Chancellor Alistair Darling further upped the pressure on hard-pressed Southern retailers when he cut the British VAT rate by 2.5 per cent to just 15 per cent. After Brian Lenihan increased the Irish VAT rate to 21.5 per cent, the yawning 6.5 per cent cross-border VAT gap and the euro climbing to record highs against sterling led to five-mile long tailbacks of Southern-registered cars on the Newry bypass at weekends.
December
December opened with Ryanair renewing its efforts to take over Aer Lingus. However, this time around Ryanair was offering just €1.40 a share, only half of what it was prepared to pay two years ago.
Once again Aer Lingus boss Dermot Mannion rejected Michael O'Leary's overtures. Stand by for plenty of fun and games out at Dublin Airport in the New Year.
On December 2 the Department of Finance published Exchequer returns showing an €8bn deficit for the first 11 months of the year. With the full-year deficit now likely to be close to €9bn the New Year budgetary arithmetic was already obsolete a full month before 2009 had even begun.
Two days later an increasingly desperate ECB cut interest rates yet again, this time by a record 0.75 per cent. With even the mighty German economy now in recession, Trichet's earlier inflationary fantasies have given away to a belated recognition that interest rate cuts are needed to avert economic Armageddon.
Heineken announced it was closing the Beamish brewery in Cork, with 120 jobs gone.
Then on December 18, Sean FitzPatrick sensationally resigned as chairman of Anglo Irish when it was revealed that he had concealed €87m of loans from Anglo by temporarily transferring the loans to Irish Nationwide a few days before Anglo's year-end and moving them back again after the start of Anglo's new financial year. Seanie was followed out the door by Anglo chief executive David Drumm.
This finally brought the Irish banking crisis to a head. On December 21, the shortest day of the year, the Government bowed to the inevitable and agreed to pump €7.5bn into AIB, BoI and Anglo.
With the share prices of the Irish-owned banks having fallen by a further two-thirds since the deposit guarantee had been announced 12 weeks earlier, the truth is that the Government didn't have any choice. However, with the bad debts of the Irish-owned banks likely to be a multiple of €7.5bn, stand by for further bank bailouts in the New Year.
- Jane Suiter, John Reynolds and Dan White
In January we woke up to the news that Christmas shoppers had not produced the expected lift for tax revenues which in the first few days of the year were revealed to be €1.826bn short of expectations for 2007. At that time Taoiseach Brian Cowen was naively predicting a deficit of €4.8bn for the year ahead, while Davy's was predicting that growth would slow to 2.5 per cent.
Such innocent times.
Mobile operator 3 Ireland hired investment bank Goldman Sachs to advise it on a possible bid for its €1bn-valued rival Meteor.
We found out Brendan Investments, the controversial Eddie Hobbs-directed property vehicle, was heavily supported in its search for investors by Hobbs himself and funds linked with him. The share register of the property investment company, which only managed to raise €13m despite a target of over €50m, revealed that three directors -- Hobbs, managing director Vincent Regan and chairman Dermot Flanagan SC -- each sunk €600,000 of their own money into the venture.
Developer Liam Carroll added to his holdings in Greencore and Irish Continental buying a €35m stake in Aer Lingus at €2.06 per share.
With the international financial system already reeling from the subprime crisis, the revelation that rogue trader Jerome Kerviel had managed to lose his employers Societe Generale €4.9bn delivered another hammer blow to investor confidence.
February
Property developer Sean Dunne borrowed a further €500m from a group of Irish and international banks to fund the development of his controversial €3bn Ballsbridge skyscraper complex. Ulster Bank, Kaupthing Singer Friedlander and another Irish financial institution all agreed to lend Dunne the money. Blue-chip estate agents, Lisney, revealed they had swung into the red last year with a loss after tax of €140,293.
Despite the emerging chaos in the property markets the banks were still riding relatively high. On February 21, AIB closed at €13.80, Anglo Irish Bank finished at €8.84, while Irish Life & Permanent closed at €10.20 and Bank of Ireland traded at €9.50. What many would give to be back at those levels now.
In perhaps a sign that recession was on the way Guinness reversed years of decline and announced that sales of its stout rose 3 per cent in Ireland in the second half of 2007. "'Guinness is back in the black' is the headline for me," quipped Michael Ioakimides of Diageo Ireland.
Investors and banks had to write off €820m in the Dublin specialist lender International Securities Trading Corporation (ISTC), making it the largest cash loss in Irish corporate history. Some of the State's wealthiest businessmen, investors and leading international banks were owed €878m by ISTC, which earned profits by borrowing money in the international markets and lending it on to banks. However, the company only had assets worth €57.8m, leaving investors and bankers facing massive losses.
March
The near-collapse and bail-out of Wall Street investment bank Bear Stearns raised fundamental questions about the value of bank shares. While the collapse in Anglo Irish Bank's share price began in earnest with billions being wiped off its value on successive days
Kerry's newly installed chief Stan McCarthy executed his first major acquisition in a drive to double the food group's annual sales to €10bn with a €165m deal to buy out the consumer food brands owned by Reox, the Diarygold spin-off.
Building materials giant CRH made its first foray into India with a €290m deal, buying 50 per cent of Hyderabad-based My Home Industries, one of the biggest cement producers in south India.
Mobile operator 3 Ireland pulled out of discussions with Eircom over a planned bid for its €800m Meteor business.
Former Kerry group boss Denis Brosnan spent over €65m to buy the upmarket muesli maker Dorset Cereals -- described as the brekkie of choice of Britain's "chattering classes".
April
CRH chief Liam O'Mahony's pay rose to more than €2.79m from €2.66m in 2007 -- but at the same time its share price fell to €23.85 at the end of 2007 from €31.54 at the beginning of the year .
FBD, the listed insurance company, rejected a €1.2bn takeover approach from Dutch giant Eureko.
Tullow Oil looked set to realise €45m from the sale of 10 drilling blocks in the North Sea to Venture Production, an Aberdeen-based oil and gas company.
Heineken reiterated its determination to take control of Cork brewer Beamish & Crawford as part of its joint takeover with Carlsberg of Beamish parent Scottish & Newcastle.
The European Central Bank woke up to the fact that global financial turmoil could have a real impact on eurozone economies. However, it was still not ready to cut rates.
Utility and waste management specialist NTR bought a 51 per cent holding in Phoenix, Arizona-based Stirling Energy Systems (SES), which is developing solar-powered electricity generation plants, for €63m. It also took a controlling stake in Wind Capital Group, a Missouri-based wind farm operator. Closer to home in Germany it incurred a loss of up to €35m on the closure of its German bio-diesel unit.
Royal Bank of Scotland, owner of Ulster Bank and First Active here, had a huge rights issue in an attempt to beef up its balance sheet.
IAWS chief executive Owen Killian was by far the best-rewarded chief executive in 2007. The bagel baker landed a €10.15m package, according to the latest annual report.
May
Ulick McEvaddy, co-founder of air refuelling company Omega Air, landed a five-year $250m contract to refuel the Tornado fighter jet fleet of Britain's Royal Air Force.
The Sunday Independent revealed that an unencrypted laptop owned by the Financial Regulator had been stolen in 2005.
Aer Lingus predicted a half-year loss as economic gloom and oil price rises started to hit its bottom line. Meanwhile, Ryanair won the subsidised Dublin-Kerry contract from under the nose of Aer Arann.
Brian O'Reilly, a senior director of financial giant UBS warned that Irish banks would be forced into a new rights issue and would have to deal with a lot of uncertainty. David Drumm, now former CEO of Anglo Irish Bank, dismissed his views, claiming "there is no requirement for Anglo to raise capital".
DCC's Jim Flavin resigned over the fallout from the insider trading case regarding the sale of shares in Fyffes taken against the group in 2000.
June
The family of Social Affairs Minister Mary Hanafin invested in Reservoir Resources, an oil exploration firm with interests in onshore prospects in southern England.
Cengage Learning, a division of Barry O'Callaghan's Education Media and Publishing Group was sold for €482m in cash.
As it was revealed that Airtricity founder Eddie O'Connor created the greatest number of millionaires in Irish corporate history through its €2.2bn sale, he ploughed €30m into new wind energy firm Mainstream Renewable Power, and later sold a 15 per cent stake to Barclays Capital.
Bank of Ireland and Ulster Bank began to increase the numbers of staff working in their debt management departments.
The $80bn Carlyle Group, one of the world's most powerful private equity funds, confirmed that it was looking at buying distressed Irish property assets. It later emerged as a member of the Mallabracca consortium, which was more recently considering investing in the banks.
Noticeable declines in sales of breakfast rolls, big-screen TVs and DIY goods began to emerge at Retail Excellence Ireland as the recession started to bite.
July
Iberdrola, Spain's second largest utility, bought a 22.6 per cent stake in Irish oil and gas explorer Petroceltic for $55m.
Irish explorer Conroy Diamonds and Gold struck a one million ounce deposit of gold at Clontibret, Co Monaghan.
McDonald's saw a spike in job applications from Irish people for the first time in nearly a decade.
Tullow Oil boss Aidan Heavey cashed in a €37m bonus on the back of a healthy share price and rising oil production in its huge Jubilee field in Ghana and its three oilfields in Uganda.
CIE, semi-state parent of Dublin Bus, Bus Eireann and Iarnrod Eireann, lost €406m in 2007, despite an €800m State subsidy.
August
IAWS became a €2.7bn food group after acquiring Swiss baker Hiestand.
Tesco upped its advertising budget to nearly €4m in May and June in a bid to fight off competition from Aldi and Lidl. It later fought back by launching a new cashsavers range of products.
Oman Investment Fund, a sovereign wealth fund controlled by the Middle Eastern country's government, snapped up a 50 per cent stake in Derek Quinlan's Jurys Inns hotel chain for €200m.
As torrential rain hit the country, loss adjusters GAB Robins said flood damage claims could reach €100m.
Ion Equity announced plans to invest tens of millions in creating a new chain of premium budget hotels under a new brand called Pillo Hotels.
Kingspan bought US panel maker Metecno for €75m, while Eirgrid bought Northern Ireland grid operator SONI for €30m.
The Competition Authority blocked Kerry Group's €165m acquisition of Breeo Foods.
September
September opened with the US government bailing out mortgage giants Fannie Mae and Freddie Mac. Both firms had been brought to their knees by the collapse in the US housing market. With soaring losses rapidly eroding their capital Uncle Sam had no alternative but to act to save the pair, which between them own or guarantee almost half of the $12 trillion US mortgage market.
On September 7, US Treasury Secretary Hank Paulson announced that the Federal Government was pumping up to €100bn each into Freddie and Fannie. It also took an 80 per cent stake in both institutions and replaced both of their chief executives. Irish Government, please note.
Wall Street investment bank Lehman Brothers was not so lucky. In what quickly turned out to be a disastrously misplaced piece of free-market bravado, the US authorities allowed it to go bust on September 14.
Lehman almost brought the international financial system down with it. Merrill Lynch quickly agreed to be bought by Bank of America while the mighty Goldman Sachs had to go cap in hand to Warren Buffett for an emergency cash transfusion.
On September 17, British bank HBOS collapsed into the arms of its rival Lloyds TSB after the HBOS share price fell by 40 per cent on one day.
Across the Atlantic the White House was forced into a humiliating U-turn and announced a giant $700bn bailout for the US banks. Despite opposition from Republican congressman the package finally cleared the House of Representatives.
The international banking crisis finally reached this country on September 29 when Irish bank shares lost a third of their value in a single day. With investors dumping the shares and the threat of a run by nervous depositors on one or more of the Irish banks rapidly increasing, the Government was forced to act.
After a night of crisis talks the Government announced it was extending an unconditional two-year guarantee of the deposits and bonds of the Irish banks. While the deposit guarantee removed the threat of a run it did nothing to address the underlying problem, a chronic lack of capital. As a result bank lending dried up as October wore on.
October
In the UK, after having denied the severity of the problem for several weeks, PM Gordon Brown and Chancellor Alistair Darling moved decisively on October 8 announcing a £500bn rescue package for the UK banking system, in which the government took major stakes in both RBS and Lloyds/TSB.
On the same day the ECB finally bowed to the inevitable when it cut eurozone interest rates by 0.5 per cent as part of a programme of rate cuts by the world's central banks.
On October 14, Brian Lenihan unveiled his maiden budget, which had been brought forward by seven weeks in response to the deepening economic crisis. Why did he bother? Apart from burdening the economy with a further €2bn of taxes it did nothing to tackle runaway public spending but incurred the wrath of every pensioner in the country by scrapping medical cards for the over-70s. A rapid climbdown on the medical card issue was followed by a series of further embarrassing retreats which quickly made a nonsense of the Government's budgetary arithmetic.
On October 21, developer Michael Taggart became the first high-profile casualty of the property downturn when his firm Taggart Holdings was placed in administration. Three days later Sean Quinn sensationally stepped down as chairman of Quinn Insurance when it was disclosed that the insurer had made an unauthorised €288m loan to another Quinn Group firm.
November
On November 6, the ECB cut interest rates once again by a further 0.5 per cent to 3.25 per cent. Implicitly conceding that it had got it totally wrong when it raised rates in July, ECB president Jean-Claude Trichet signalled that there would be further rate cuts to come.
Then on November 24, UK Chancellor Alistair Darling further upped the pressure on hard-pressed Southern retailers when he cut the British VAT rate by 2.5 per cent to just 15 per cent. After Brian Lenihan increased the Irish VAT rate to 21.5 per cent, the yawning 6.5 per cent cross-border VAT gap and the euro climbing to record highs against sterling led to five-mile long tailbacks of Southern-registered cars on the Newry bypass at weekends.
December
December opened with Ryanair renewing its efforts to take over Aer Lingus. However, this time around Ryanair was offering just €1.40 a share, only half of what it was prepared to pay two years ago.
Once again Aer Lingus boss Dermot Mannion rejected Michael O'Leary's overtures. Stand by for plenty of fun and games out at Dublin Airport in the New Year.
On December 2 the Department of Finance published Exchequer returns showing an €8bn deficit for the first 11 months of the year. With the full-year deficit now likely to be close to €9bn the New Year budgetary arithmetic was already obsolete a full month before 2009 had even begun.
Two days later an increasingly desperate ECB cut interest rates yet again, this time by a record 0.75 per cent. With even the mighty German economy now in recession, Trichet's earlier inflationary fantasies have given away to a belated recognition that interest rate cuts are needed to avert economic Armageddon.
Heineken announced it was closing the Beamish brewery in Cork, with 120 jobs gone.
Then on December 18, Sean FitzPatrick sensationally resigned as chairman of Anglo Irish when it was revealed that he had concealed €87m of loans from Anglo by temporarily transferring the loans to Irish Nationwide a few days before Anglo's year-end and moving them back again after the start of Anglo's new financial year. Seanie was followed out the door by Anglo chief executive David Drumm.
This finally brought the Irish banking crisis to a head. On December 21, the shortest day of the year, the Government bowed to the inevitable and agreed to pump €7.5bn into AIB, BoI and Anglo.
With the share prices of the Irish-owned banks having fallen by a further two-thirds since the deposit guarantee had been announced 12 weeks earlier, the truth is that the Government didn't have any choice. However, with the bad debts of the Irish-owned banks likely to be a multiple of €7.5bn, stand by for further bank bailouts in the New Year.
- Jane Suiter, John Reynolds and Dan White
After a hard landing, investors who can take a risk are getting back in the saddle
This year will go down as one of the toughest on record for UK investors. The FTSE 100 index of leading shares has fallen by 33 per cent and the picture is no brighter for those putting their money overseas. American stocks have dropped by 33 per cent, while shares in Europe and Japan have fallen by 44 per cent.
Millions of UK investors hold money-purchase pensions, where the value of their retirement income depends on stock market performance, and the bitter truth is that many will find the size of their pension pots has been cut by a third or more in the space of just 12 months.
Savers in deposit accounts have, at least, not seen their capital eroded in this way, but they, too, have experienced some nasty shocks. Thousands of people with money in UK-based Icelandic bank accounts faced a nail-biting few weeks before the British Government agreed to compensate them after the banks collapsed this autumn. Depositors in some of the banks' offshore accounts are still waiting to find out how much compensation they will receive.
But even those savers who avoided the pitfalls of offshore accounts did not have much to cheer about. At the start of the year, Bank base rate was 5.5 per cent and it was possible to earn 6.5 per cent with no strings with an online instant-access account. The base rate is now at an historically low 2 per cent and the best no-strings online instant-access rate is paying just over 4.5 per cent.
However, if you knew where to look it was possible to make money in 2008 - you just had to be selective. Only a handful of FTSE 100 stocks performed well for investors, but those fortunate enough to hold shares in British Energy or AstraZeneca would have reaped gains of 40 per cent and 20 per cent respectively.
Investors unfortunate enough to own shares in HBOS have seen their value tumble by 90 per cent since the start of the year.
Those with money in unit and investment trusts had to be equally selective in their purchases if they wanted to show a profit this year. In many unit trust sectors, not a single fund notched up a positive return and barely 100 out of nearly 2,400 funds produced a return that would have equalled that obtainable from an ordinary deposit account.
But there were honourable exceptions. Leading the way was Neptune Japan Opportunities fund, which, with a return of 80 per cent this year, was head and shoulders above any other fund of any kind, according to figures from Financial Express, the data company. Almost all the following pack of good performers were bond funds. Ignis Asset Management's US Government Bond fund generated a return of 48 per cent, while M&G's International Sovereign Bond fund returned 47 per cent.
Former high-flying funds investing in emerging markets and special situations were relegated to the bottom of the performance tables in 2008. JPMorgan's New Europe fund lost 61per cent, Rathbone Special Situ- ations gave up 58 per cent of its value, while Invesco Perpetual European Smaller Companies lost 57 per cent. Commodity and natural resources funds, which had performed well in previous years, also came down to earth with a bump. Junior Oils Trust lost 50 per cent, while JPMorgan Natural Resources lost 55 per cent.
A similar pattern emerged with investment trusts. Only a tiny handful of the 300 trusts achieved a positive return, with a special mention for Ruffer Investment Company, whose defensive stance enabled it to produce a return of 13 per cent. At the other end of the scale, two of the biggest losers were SVG Capital, a private equity trust, which lost 76 per cent, and 3i Group, another private equity trust, which lost 75 per cent.
So what is the outlook for 2009? Most commentators expect stock markets to recover, with a general consensus that the FTSE 100 could test the 5,000 mark in the next 12 months.
UBS, the Swiss bank, thinks that the FTSE could reach 5,800 next year. It is looking for good performance from sectors such as food retailers, health equipment and household goods.
Brewin Dolphin, the stockbroker, says that shares are already discounting most of the bad news likely to break in 2009 and are now looking cheap. It favours sectors such as general retailing and media stocks.
Some of the most seasoned investors on both sides of the Atlantic are making optimistic noises about the coming year.
In the UK, Anthony Bolton, who managed the Fidelity Special Situations fund with great success from 1979 to 2007, is expecting a fresh bull market to begin in the new year - and thinks investors could be caught out by the strength of the rally.
He said: “All the pieces are in place for a rally in the first quarter. Valuations look cheap and you often have this kind of volatility at a turning point.”
In the US, Warren Buffett, one of the world's richest men and one of the most respected market commentators, has announced that he is buying US stocks because he thinks they now appear to be good value. Most commentators expect the US, which led the world into recession, to lead it out again, which should provide a much-needed boost for the US stock market.
Elsewhere in the world, emerging markets, which have taken a real pasting in 2008, are tipped to mount a strong recovery. Morgan Stanley, the US investment bank, is forecasting that emerging markets could rise by 60 per cent in the next 12 months, as their economies continue to grow, while those of the developed world battle their way through a recession.
Mark Dampier, of Hargreaves Lansdown, the independent financial adviser, said that he is still bullish about parts of the world such as Latin America and India: “They have enjoyed a fantastic five-year rise, followed by a dramatic one-year fall. I believe emerging markets are poised for another upward run, and people who didn't get on board first time round now have a second chance to profit from the continuing growth that we expect these regions to deliver. However, this area of investment is for the risk-tolerant only.”
Bond prices have already come down so far that they now look good value in the eyes of experts such as Brian Dennehy, of Dennehy Weller & Co, the independent financial adviser. He said that bond prices - and bond yields - are now at the most attractive levels he has ever seen. With falling interest rates and falling inflation expected to send the price of bonds higher, he expects 2009 to be a very good year for them: “Investors will be receiving the benefit of a high yield while savings rates are falling, and when bond prices start to recover, as we expect them to do, they will enjoy the additional bonus of some capital growth on top.”
Millions of UK investors hold money-purchase pensions, where the value of their retirement income depends on stock market performance, and the bitter truth is that many will find the size of their pension pots has been cut by a third or more in the space of just 12 months.
Savers in deposit accounts have, at least, not seen their capital eroded in this way, but they, too, have experienced some nasty shocks. Thousands of people with money in UK-based Icelandic bank accounts faced a nail-biting few weeks before the British Government agreed to compensate them after the banks collapsed this autumn. Depositors in some of the banks' offshore accounts are still waiting to find out how much compensation they will receive.
But even those savers who avoided the pitfalls of offshore accounts did not have much to cheer about. At the start of the year, Bank base rate was 5.5 per cent and it was possible to earn 6.5 per cent with no strings with an online instant-access account. The base rate is now at an historically low 2 per cent and the best no-strings online instant-access rate is paying just over 4.5 per cent.
However, if you knew where to look it was possible to make money in 2008 - you just had to be selective. Only a handful of FTSE 100 stocks performed well for investors, but those fortunate enough to hold shares in British Energy or AstraZeneca would have reaped gains of 40 per cent and 20 per cent respectively.
Investors unfortunate enough to own shares in HBOS have seen their value tumble by 90 per cent since the start of the year.
Those with money in unit and investment trusts had to be equally selective in their purchases if they wanted to show a profit this year. In many unit trust sectors, not a single fund notched up a positive return and barely 100 out of nearly 2,400 funds produced a return that would have equalled that obtainable from an ordinary deposit account.
But there were honourable exceptions. Leading the way was Neptune Japan Opportunities fund, which, with a return of 80 per cent this year, was head and shoulders above any other fund of any kind, according to figures from Financial Express, the data company. Almost all the following pack of good performers were bond funds. Ignis Asset Management's US Government Bond fund generated a return of 48 per cent, while M&G's International Sovereign Bond fund returned 47 per cent.
Former high-flying funds investing in emerging markets and special situations were relegated to the bottom of the performance tables in 2008. JPMorgan's New Europe fund lost 61per cent, Rathbone Special Situ- ations gave up 58 per cent of its value, while Invesco Perpetual European Smaller Companies lost 57 per cent. Commodity and natural resources funds, which had performed well in previous years, also came down to earth with a bump. Junior Oils Trust lost 50 per cent, while JPMorgan Natural Resources lost 55 per cent.
A similar pattern emerged with investment trusts. Only a tiny handful of the 300 trusts achieved a positive return, with a special mention for Ruffer Investment Company, whose defensive stance enabled it to produce a return of 13 per cent. At the other end of the scale, two of the biggest losers were SVG Capital, a private equity trust, which lost 76 per cent, and 3i Group, another private equity trust, which lost 75 per cent.
So what is the outlook for 2009? Most commentators expect stock markets to recover, with a general consensus that the FTSE 100 could test the 5,000 mark in the next 12 months.
UBS, the Swiss bank, thinks that the FTSE could reach 5,800 next year. It is looking for good performance from sectors such as food retailers, health equipment and household goods.
Brewin Dolphin, the stockbroker, says that shares are already discounting most of the bad news likely to break in 2009 and are now looking cheap. It favours sectors such as general retailing and media stocks.
Some of the most seasoned investors on both sides of the Atlantic are making optimistic noises about the coming year.
In the UK, Anthony Bolton, who managed the Fidelity Special Situations fund with great success from 1979 to 2007, is expecting a fresh bull market to begin in the new year - and thinks investors could be caught out by the strength of the rally.
He said: “All the pieces are in place for a rally in the first quarter. Valuations look cheap and you often have this kind of volatility at a turning point.”
In the US, Warren Buffett, one of the world's richest men and one of the most respected market commentators, has announced that he is buying US stocks because he thinks they now appear to be good value. Most commentators expect the US, which led the world into recession, to lead it out again, which should provide a much-needed boost for the US stock market.
Elsewhere in the world, emerging markets, which have taken a real pasting in 2008, are tipped to mount a strong recovery. Morgan Stanley, the US investment bank, is forecasting that emerging markets could rise by 60 per cent in the next 12 months, as their economies continue to grow, while those of the developed world battle their way through a recession.
Mark Dampier, of Hargreaves Lansdown, the independent financial adviser, said that he is still bullish about parts of the world such as Latin America and India: “They have enjoyed a fantastic five-year rise, followed by a dramatic one-year fall. I believe emerging markets are poised for another upward run, and people who didn't get on board first time round now have a second chance to profit from the continuing growth that we expect these regions to deliver. However, this area of investment is for the risk-tolerant only.”
Bond prices have already come down so far that they now look good value in the eyes of experts such as Brian Dennehy, of Dennehy Weller & Co, the independent financial adviser. He said that bond prices - and bond yields - are now at the most attractive levels he has ever seen. With falling interest rates and falling inflation expected to send the price of bonds higher, he expects 2009 to be a very good year for them: “Investors will be receiving the benefit of a high yield while savings rates are falling, and when bond prices start to recover, as we expect them to do, they will enjoy the additional bonus of some capital growth on top.”
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