Today's other stories in brief
UBS may be ready to cut 8,000 jobs in Europe
UBS AG, Europe's biggest bank by assets, may cut as many as 8,000 jobs, sell a US unit and raise more capital.
UBS plans to cut 5 per cent to 10 per cent of jobs across its different units and may also propose a capital increase at its shareholders meeting in April, according to a report in SonntagsZeitung, which cited unidentified managers present at the company's top executives' meeting in Berlin last week. It has denied a report that it may sell its Paine Webber US brokerage unit. -(Bloomberg) Shell keeps reserves steady despite blow
Royal Dutch Shell, western Europe's biggest oil company, kept its oil and gas reserves steady last year in spite of the loss of control at its Sakhalin 2 project in Russia, it said yesterday.
It also reaffirmed the company's commitment to output growth of 2-3 per cent a year in the next decade, and highlighted its shift away from traditional oil and gas production towards long-lived "legacy assets".
Jeroen van der Veer, the chief executive, said Shell was investing in projects "that will underpin the group in the first half of this century", a time when he believes conventional oil and gas production will be insufficient to meet demand.- (Financial Times service)
Bank's CEO praises Bear rescue
Deutsche Bank AG chief executive Josef Ackermann praised the rescue of Bear Stearns and said more transparency is needed to avoid further market shocks. "The rescue of Bear Stearns was a good approach" to try to stabilise the market, said Ackermann at an event in Frankfurt yesterday hosted by the Swiss consulate. "We need concerted action by governments, central banks and market participants to help stop this wave."
He called for more transparency and said investors should buy financial products that are at "historically low" prices to send an "important message" to the world. - (Bloomberg) Plumbing giant sees profits tumble 68%
Wolseley Plc, the world's biggest distributor of plumbing and heating equipment, said first-half profit fell 68 per cent as a slowdown in US construction spread beyond housing and extended to Europe. Wolseley dropped the most in more than five years in London trading. Net income through January declined to £65 million (€83 million), or 9.86 pence a share, from £209 million, or 32.78 pence a share, a year earlier, the Reading-based company said in a statement. The firm plans to reduce investment "dramatically" and scale back new store openings as it seeks further savings this year. - (Bloomberg)
Siemens earnings to drop by €900m
Siemens AG, Europe's biggest engineering company, tumbled the most in at least 18 years in Frankfurt after saying order delays and cancellations will cut earnings by €900 million this quarter. The Munich-based company fell 17 per cent to €66.42, cutting Siemens's market value by about €12.5 billion.
Siemens said it reviewed the energy, transport and technology divisions and uncovered about €600 million in costs tied to power-plant projects alone. - (Bloomberg)
Japanese mobile firm accuses Toshiba
NTT DoCoMo, Japan's biggest mobile phone carrier, yesterday accused Softbank, its lower-cost rival, of copying one of its handsets and launched a legal challenge to have the model withdrawn from stores.
The action is the first of its kind in Japan's mobile phone industry, DoCoMo said.
DoCoMo and Fujitsu, which manufactures the DoCoMo phone, filed a joint request for an injunction with the Tokyo district court. The companies named Toshiba in the filing.
Belfast Briefing has been held over due to space reasons
