Week ended 14 February 2009 – some good news this week

Posted by admin on 15 February, 2009 under Weekly business news summary | Be the First to Comment

Microsoft plans an expansion into retail chains at a time when other retailers are struggling.

They plan to sell computers with their new Windows 7 operating system and other software in a similar way to the present apple stores. Microsoft plans to have their stores in high-profile places around the world and the new retail division of the company will be headed up by David Porter the ex-Wal-Mart executive.

Good news on the high street as an ex-manager of the Adams children’s wear chain has purchased the remaining 120 stores and brand from administrators PricewaterhouseCoopers. This take over will save the remaining in 1,900 jobs at the business, after PricewaterhouseCoopers closed some 147 of the shops and made 1,100 people redundant.

Good news in the US as Congress approve a $787 billion (£554 billion) rescue package. Barack Obama has hailed this bail-out package as an important milestone in moving the economic situation in America forward and that it should create 3.5 million new jobs. The bail-out package is to be split between tax cuts and spending with 64% to be used on social spending and the balance on tax cuts.

In contrast to this huge package in the US the Australia’s Senate have approved an AUD$42 billion (£19 billion) bail-out package. The vote to approve the plan with 30 for and 28 against, but the Prime Minister Kevin Rudd has said that this package is vital for the Australian economy.

Leading nations must push to avoid protectionism during this economic slow-down, which is what has happened in previous major slow-downs. This week at a meeting in Italy G7 leaders have pledged to prevent countries from putting up trade barriers which only lead to prolonging the economic crisis.

Maybe people are turning to drink in this economic down turn as the French group Pernod Ricard has reported a 13% rise in sales and a 5% rise in profits for the 6-month period to December 2008. This is in the same week as the biggest world drinks maker Diageo reported a 3.2% rise in half-year profits.

End of the week saw:
Stock exchanges:
FTSE 100: 4,189.60
DOW: 7,850.40
S&P: 826.84
Nikkei: 7,779.4

Currencies
UK Sterling £ to US Dollar $ 1.42091
UK Sterling £ to Euro € 1.11015
UK Sterling £ to Japanese Yen 130.249
UK Sterling £ to Aus $ 2.17845
US Dollar $ to Euro € 0.781069
US Dollar $ to Japanese Yen 91.6639

Commodities
Nymex Crude oil – $38.01
Gold – $941.35