A round-up of today's other business stories in brief
EBS subsidiary joins guarantee scheme
The subsidiary will issue covered-bond securities created by pooling mortgages into assets that the society can sell on to investors.
EBSMF was assigned an A-rating with a negative outlook by debt rating agency Fitch on Wednesday. The subsidiary's inclusion under the guarantee means any bonds it sells within the two-year scheme, expiring before September 29th, 2010, will win a top AAA-rating because it is covered by the State. Fitch gave an AAA-rating to the EBS's €6 billion medium-term debt programme.
Oil falls 5% to four-year low
Oil dropped 5 per cent to a four-year low below $42 a barrel yesterday after a US report showed the heaviest job losses in 34 years in the world's top energy consumer.
US crude plunged $2.23 to $41.44 by midday in New York after touching $40.85, the lowest since December 2004. London's Brent crude traded down $2.34 at $39.94 a barrel.
"This translates, irrefutably, into further and severe contracting demand," John Kilduff, senior vice-president at MF Global in New York, said in a research note. "Conventional wisdom now holds that there will be a test of the $40 level fairly soon."The International Energy Agency lowered its forecast for global annual demand growth to 1.2 per cent from 1.6 per cent. - (Reuters)
Shareholders back Merrill Lynch sale
In a scene that resembled a wake more than a shareholder meeting, stockholders of Merrill Lynch voted yesterday to approve the firm's acquisition by Bank of America.
The all-stock transaction, which values Merrill at about $20 billion, is expected to close by December 31st, bringing an end to a legendary firm that had been independent for 94 years.
Chief executive John Thain, hired by Merrill a year ago to save it from its massive overexposure to securities backed by subprime mortgages, described the occasion as "bittersweet". "I am confident that the combination will be good for shareholders, will be good for employees, and our global footprint is going to allow us great opportunities to expand our business." - (Financial Times service)
