In short

Today's other stories in brief

Australia announces $42bn package

Australian authorities acted yesterday to buttress the cooling economy yesterday, announcing a fresh A$42 billion (€20.8 billion) fiscal stimulus package and a full percentage point cut in interest rates.

The government halved its estimate for growth for the year ending June 30th from 2 per cent to 1 per cent, raised its 2010 forecast for unemployment to 7 per cent, and predicted a budget deficit of A$22.3 billion in 2008-09 and further total deficits approaching A$100 billion over the next three years. – ( Financial Times service)

NTR appoints new solar executive

Utility company NTR has appointed a former senior executive with energy giant BP to run two existing solar power projects in California for its US venture Stirling Energy Systems and further projects.

Bob Lukefahr, former president of BP’s wind energy unit in the US, will be chief executive for North American Project Development at Stirling.

Qantas in A$500m share issue plan

Qantas, Australia’s largest airline, is today expected to announce plans to raise at least A$500 million in a share issue to bolster its balance sheet as the global economic downturn intensifies. The placement is expected to be led by UBS and Macquarie Group.

Qantas requested a trading halt on its shares pending a “material announcement in relation to capital management initiatives”.

It refused to elaborate but the airline’s board was understood to have met last night to finalise the issue.

It added that there was no reason to update the market on its 2008-9 earnings guidance. – (Financial Times service)

Euro zone producer prices drop by 1.3%

Euro zone producer prices dropped more than expected in December, pointing to quickly falling inflationary pressures and room for a 50 basis point interest rate cut by the ECB in March.

Prices at factory gates in the 15 countries using the euro in December fell 1.3 per cent month-on-month and were up 1.8 per cent year-on-year, the European Union's statistics office said. – ( Reuters)

RBS chairman steps down early

Royal Bank of Scotland (RBS) chairman Tom McKillop stepped down almost three months earlier than planned, clearing the way for his replacement to oversee the British bank’s restructuring.

Mr McKillop has been fiercely criticised for not checking the aggressive expansion of former chief executive Fred Goodwin and RBS, which owns Ulster Bank, has had to take state rescue funds in recent months, leaving 70 per cent of its equity in the hands of the British government.

Philip Hampton, who was appointed deputy chairman and chairman-designate last month, will take over as chairman. – (Reuters)

SAS seeks fresh capital and savings

Scandinavian airline SAS launched a scramble for fresh capital and a brutal new savings drive as it intensified efforts to ride out the global downturn, sending its shares down 16 per cent.

Under a new programme called “Core SAS”, the company will withdraw another 14 aircraft, reduce the number of routes it flies and cut staff by 3,000.

The airline already has two other cost-cutting schemes underway. – (Reuters)