In Short

A round-up of today's other news stories in brief

HSBC sets up corporate banking firm

HSBC has set up a corporate banking business in Dublin aimed at helping Irish businesses expand overseas.

The bank, which has been servicing the international funds industry out of Ireland for more than 25 years, is seeking to expand its presence in the Republic.

"Ireland's status as one of the world's leading trading nations offers tremendous scope for HSBC to assist Irish companies pursuing growth in international markets," said Charles Gregory, chief executive of HSBC in Ireland.

"The continued vibrancy of the Irish economy and the general internationalisation of trade will ensure that Irish companies are well positioned to capitalise on growth opportunities globally."

Deutsche Bahn ready for flotation

Deutsche Bahn, Germany's state-owned railway operator, yesterday said it was ready to float on the stock exchange, as it announced a surge in profits and increased its 2006 profit forecast by one-fifth.

"With these great results we achieve the economic conditions for an initial public offering," said Hartmut Mehdorn, chief executive. Shares could be listed as early as spring 2008. Deutsche Bahn expects to make profits of €1.9 billion in 2006, compared with €1.35 billion in 2005. - (Financial Times Service)

Shanghai Electric chairman detained

A widening scandal at Hong Kong-listed Shanghai Electric Group claimed the company's chairman yesterday, just days after the group confirmed the detentions of two other directors. A Shanghai government spokesperson said Wang Chengming was under investigation for violating unspecified "party rules". On Friday, Shanghai Electric had confirmed two of its directors were being investigated for "personal acts" not related to the company's operations. - (Financial Times Service)

Australian grants for converting cars

The Australian government yesterday responded to soaring oil prices by offering drivers a subsidy of 2,000 Australian dollars (€1,193) to convert their car to run on cheaper liquefied petroleum gas.

Prime minister John Howard told parliament that the subsidy scheme, which will cost A$1.6 billion over eight years, was a sensible way to reduce reliance on oil from the Middle East and tap into a resource Australia possesses in large amounts.- (Financial Times Service)

Banks to challenge stock exchange

Investment banks are set to challenge the London Stock Exchange's near monopoly on collection and sale of trading data.

The move could cost the LSE and other exchanges revenue, while saving banks time and money. Meetings between 10 of the investment banks most active in European markets, including Morgan Stanley and Credit Suisse, started at the beginning of this year. - (Financial Times Service)

US slowdown predicted

US economic growth over the next year will slip as payrolls expand more slowly and housing starts decline, but inflation looks higher than it did three months ago, according to a survey issued by the Philadelphia Federal Reserve Bank said yesterday.

Results of the "Survey of Professional Forecasters" were consistent with suggestions that the economy is facing a period of "stagflation lite" as Fed policymakers attempt to bring the economy in for a soft landing. - (Reuters)