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Citigroup’s Crittenden Replaced as Finance Chief
Citigroup Inc. (NYSE:C), whose biggest shareholder is poised to be the U.S. taxpayer, reassigned Chief Financial Officer Gary Crittenden to oversee the Citi Holdings unit that houses $850 billion of assets the bank plans to sell. Crittenden, 55, is the former American Express Co. (NYSE:AXP) CFO who joined Citigroup in March 2007.
Sony Ericsson issues first-quarter profit warning
Sony Ericsson Mobile Communications Friday warned that it would post a pretax loss of as much as 390 million euros ($533 million) in the first quarter as handset sales continued to suffer from weak consumer spending and inventory buildups.
Apollo Mulls Taking Stake in Charter
Private-equity firm Apollo Management is in talks to take a substantial ownership stake in Charter Communications Inc. (NASDAQ:CHTR) as part of the cable company’s bankruptcy reorganization, according to people familiar with the talks. Apollo controls a large chunk of Charter debt, which it will swap for equity as part of the company’s restructuring.
BofA Provides Cuomo With Merrill Bonus List
New York Attorney General Andrew Cuomo received the identities Thursday of the 200 highest-paid bonus recipients at Merrill Lynch & Co. (NYSE:MER) prior to a merger with Bank of America Corp. (NYSE:BAC) on Jan. 1. The delivery of names followed a Wednesday order from New York State Supreme Court Justice Bernard Fried denying Bank of America’s request that such details be kept confidential.
Weber Says ECB Could Offer Banks Longer-Term Loans
European Central Bank council member Axel Weber said the bank will lower interest rates again and may extend the maturities its loans to banks to push down long-term borrowing costs. The ECB still has “room to maneuver” on interest rates “which we will use,” Weber said in a speech in Berlin today.
Treasury to free up $5 billion for auto-parts makers
The U.S. Treasury Department on Thursday offered up to $5 billion in financial backing to ailing auto-parts makers, sending shares of the sector leaders, many of which have moved dangerously close to zero, into a torrid rally. The program, the first direct step in President Barack Obama’s broader rescue of the auto industry.
GE Capital Shows Investors a ‘More Sober’ Outlook
General Electric Co.’s (NYSE:GE) six-hour review of its finance arm provided what investors called a “more sober” assessment of its earnings power during a global recession and credit crunch. GE backed its $5 billion target for GE Capital while saying earnings would be closer to $2.5 billion if this month’s economic conditions prevail for the full year.
Wal-Mart awards $2 billion to U.S. hourly employees
At a time when many companies have curtailed bonuses and merit raises, Wal-Mart Stores Inc. (NYSE:WMT) said Thursday it is increasing its incentives to its U.S. hourly associates by 11% to about $2 billion. In a memo to employees Thursday, Wal-Mart CEO Mike Duke said the award includes $933.6 million in bonuses, which jumped by almost half from last year, $788.8 million in profit sharing and 401(k) contributions, and millions of dollars in merchandise discounts and contributions to the associate stock purchase plan.
Travel Spending Sinks Sharply
Spending on travel and tourism declined last year for the first time since the Sept. 11, 2001, terrorist attacks, the Commerce Department said Thursday, as Americans canceled vacations, a strong dollar kept foreigners away and businesses slashed travel budgets. Spending fell at a 22% annualized rate in the October through December quarter, compared with the prior three-month period.
Lonmin draws jeers ahead of FTSE 100 re-entry
Platinum miner Lonmin (LON:LMI) is about to re-join the ranks of the top 100 U.K.-listed companies, but many in the market say the company shouldn’t be uncorking champagne. Lonmin will re-enter the FTSE 100 on Monday, one of five additions to the top ranks.
Pfizer, BHP Billiton Lead Record Non-Financial U.S. Bond Sales
Pfizer Inc. (NYSE:PFE), maker of the world’s best-selling drug Lipitor, and BHP Billiton Ltd. (NYSE:BHP) led $25 billion in non-financial bond sales by investment-grade companies this week, the biggest on record. Rising sales may be an indication of investor confidence in government efforts to thaw credit markets, which seized up last fall after Lehman Brothers Holdings Inc. made the biggest bankruptcy filing in U.S. history on Sept. 15.
Xerox Lowers First-Quarter Outlook
Xerox Corp. (NYSE:XRX) sees first-quarter earnings well below already-downbeat expectations in part on slumping spending by corporations as the company plans to cut another $300 million in costs. Details on where the savings would come from weren’t disclosed, but come on top of plans to save $250 million this year, largely from last year’s 5% cut in the work force.
