Archive for September, 2008
General Electric (GE) has decreased its earning forecasts considering recent unrest in the financial markets. Now the 3rdQ profits are expected 43-48 cents per share while they were 50-54 per share in a previous forecast.
The company also decreases its earning forecast for the full-year to $19.5bn-$21bn that were $22bn-$23bn in the earlier prediction.
According to the company, many other steps are also being taken to boost its fund and it also includes suspension of its funds.
It has also been stated that the company may leave its dividend at $1.24 per share till the end of next year. It is happening first time that the company has not raised the payout since 1970. Read the rest of this entry
After a £12.5bn purchase deal with British Energy, French energy firm EDF is planning to build four new nuclear reactors in the UK.
EDF whose 85% shares owned by the French government will takeover eight UK nuclear power plants of British Energy.
Furthermore, the British Gas owner Centrica announced that it was in talks to buy 25% of the power that the enlarged group would generate. Almost one sixth of UK energy supply is generated by British Energy power plants.
However, its rectors are old and many of them are expected to be shut in 15 years. Read the rest of this entry
US investment guru Warren Buffett owned company Berkshire Hathaway buys $5bn worth shares of Goldman Sachs.
MR Buffet, who is considered the world’s most famous investor, believes that Goldman Sachs is an exceptional institution.
Like many other major US financial institutions that are in serious financial crisis these days Goldman Sachs had to change its status from an investment bank this week. Gold Sachs stated that the deal would help to strengthen its finances.
Berkshire Hathaway will buy $ 5bn worth preferred stock by bearing a 10% annual interest rate. Read the rest of this entry
Microsoft is making plans to spend $40bn in an attempt to buy back its shares from investors. It is being said that it would be the biggest buy-back plan in history.
According to analysts, the software giant is taking this step to prop up its share price by utilizing the spare cash that the company has. This year, Microsoft’s share price has fallen almost 30% this year.
Same sort of buy-back plans have also been announced by PC maker Hewlett-Packard and Nike. Read the rest of this entry
To tackle the worst financial crisis of the decades, US Treasury Secretary Henry Paulson urges Congress to quickly pass a $700bn package.
According to the plan a fund will be set up to buy back much of the bad debt that financial institutions and banks around the world hold.
In an Interview with US television, Paulson called that financial market turmoil a “humbling experience”. He also urges other countries to have similar plans to build up confidence again.
“I am not going to bet against the long-term fundamentals of this country and its people.” Read the rest of this entry
