Stories Report on Business is following today :
Brookfield poised to bid on U.S. mall owner
Brookfield Asset Management Inc. is poised to bid for a major stake in General Growth Properties Inc., the Wall Street Journal reports today. One of the biggest mall owners in the United States, General Growth, which is operating under court production, is the target of an unsolicited offer from rival Simon Property Group Inc. Brookfield is emerging as the white knight for General Growth, which owns more than 200 malls across the United States. For Brookfield's chief executive officer Bruce Flatt, the deal offers the chance to buy good properties at a bargain, much as it did at Canary Wharf in London. Read the story
Toyota executive apologizes
The top U.S. executive of Toyota Motor Corp. is apologizing for the delays and "poor communication" over its massive recalls. "We acknowledge these mistakes, we apologize for them and we have learned from them," Jim Lentz said in prepared testimony for a congressional panel today in Washington, according to reports. "We now understand that we must think differently when investigating complaints and communicate faster, better and more effectively with our customers and our regulators."
Mr. Lentz is testifying today, and Toyota chief Akio Toyoda tomorrow.
Read
U.S. probes raise stakes for Toyota
Driver recalls 6 miles of highway terror
China currency revaluation could be large, economist says
An Asia watcher at Société Générale says China will probably revalue its currency by between 5 per cent and 10 per cent this spring. Many economists expect the yuan to soon be revalued. Glenn Maguire, the bank's chief Asia economist, told the Reuters news agency in an interview that he believes the one-time revaluation of the currency will be done in April or May, allowing China to "make a credible commitment" that its currency policy will remain unchanged for a long period. "Practically every man and his dog will be betting on the fact that the yuan will be appreciating by probably more than the return you are likely to get on developed economy bonds or equity markets over the next one to two years," he said.
Related: Is China's yuan policy headed for change?
Greece accused of 'blackmailing' neighbours
The head of Germany's Ifo institute accused Greece today of "blackmailing" other countries in the euro currency zone. Greece's debt troubles have shaken stock and currency markets, and even raised questions about the future of the euro zone, though it has pledged to cut its debt through harsh austerity measures and the EU has promised support if it comes to that. " Greece should never have entered the euro zone because they did not qualify and they are now blackmailing the other European countries via the euro," Hans-Werner Sinn, president of the think tank, told Bloomberg News. "More than the euro would be weakened, they argue, if Greece was not helped, but I personally don't think this is a problem."
Several defaults likely, Rogoff warns
Greece's problems have rippled through markets because of fears over sovereign debt defaults. Greece is not alone. Others, such as Spain, Ireland and Portugal, are all in trouble. Today, Harvard Professor Kenneth Rogoff said several countries will probably default while other, richer nations simply cut spending and slow down growth. Sovereign defaults traditionally follow bank crises within a few years, Mr. Rogoff told a Tokyo symposium, according to Bloomberg news, and he predicted this will occur again. "It's very, very hard to call the timing, but it will happen," Mr. Rogoff said.
Related: Greek debt deal revives Wall St. criticism
Barrick aims for up to $1-billion African IPO
Barrick Gold Corp. plans to raise between $875-million (U.S.) and $1-billion by listing its Tanzanian properties on the London exchange, the Reuters news agency reports. Barrick announced earlier that it would spin off African Barrick Gold, and, the news agency said, the listing would value those assets at about $4-billion and would be the biggest in London in almost two years. Read the story
TransCanada boosts dividend
TransCanada Corp. today boosted its dividend as it reported a sharp increase in fourth-quarter profit. The energy pipeline giant's profit rose to $381-million or 48 cents a share from $271-million or 46 cents a year earlier. It increased its dividend by 5 per cent to. "In keeping with previous $0.02/share hikes in each of the past three year [TransCanada]raised its quarterly dividend from $0.38 to $0.40," UBS Securities Canada said in a research note. "Based on our existing EPS estimates, the new level implies a payout ration of 72 per cent, comparable with 2009 at 71 per cent but above the 2006-2008 average of 65 per cent." Read the story
U.S. consumer confidence falters
The U.S. Conference Board's consumer confidence index sank in February, a surprise drop to 46.0 from 56.5, the lowest reading since April of 2009. "It is not entirely clear what would have motivated such a drastic drop in confidence," said TD Securities chief economics and rates strategist Eric Lascelles. "To be sure, concerns about the Greek fiscal drama and a major vehicle recall would have peaked during the polling period. Similarly, the U.S. failed once again to generate job growth in January. But all of these are representative of reasons to remain relatively glum, as opposed to seeking out a new depth of dissatisfaction with a current situation that objectively includes economic growth, rising home prices, and flat equities. As a consequence of this, we hesitate to suggest that the U.S. consumer situation is truly getting significantly worse." Read the story
Sears Canada profit jumps, sales slip
Sears Canada Inc. posted a 29-per-cent jump in fourth-quarter profit to $128.2-million or $1.19 a share from $99.1-million or 92 cents a year earlier. Sales slipped 5.6 per cent to $1.53-billion while same store sales, a key measure among retailers, fell 1.7 per cent. "With the economic recession and low consumer confidence prevalent throughout the year, 2009 was a challenging period for Canadian retailers," said chief executive officer Dene Rogers. "A cool, rainy summer and mild fall and winter in most parts of the country impacted sales, especially in highly seasonal categories." Read the story
Sears Holdings Corp. , its U.S. parent, more than doubled its quarterly profit. Read the story
Home Depot profit better than expected
Home Depot Inc. shares are rising after the home improvement chain posted a better than expected fourth-quarter profit. Notably, the world's biggest such retailer recorded its first gain in same store sales in almost four years, of 1.2 per cent, and it increased its quarterly dividend by 5 per cent. Home Depot posted a quarterly profit of $342-million or 20 cents a share earlier, compared to last year's loss of $54-million or 3 cents. Read the story
Brewers to cut costs
Two of the world's biggest beer producers plan to cut costs again, projecting what they see as another troubled year. Carlsberg A/S and Heineken NV were hit last year by slumping demand amid the recession, though they did cut costs and raise prices. Heinken's profit was better than expected while Carlsberg projected higher profits this year.
Wall Street bonuses rise
This one's sure to raise hackles: The comptroller of New York state, Thomas DiNapoli, said today that bonuses on Wall Street rose 17 per cent last year, and that's the cash portion. It doesn't include stock options or deferred compensation. Mr. DiNapoli said that Wall Street is, of course, vital to the state economy, but added that "for most Americans, these huge bonuses are a bitter pill and hard to comprehend." Read the story
Related: Bay Street over Wall Street - Safer and sometimes richer
From today's Report on Business
Budget won't include new spending or tax measures
A shiny new city fuels talk of a bubble
Want to fix Ottawa's books? Try working a bit harder