More business news in brief.
Dollar's surge against euro continues
The dollar headed for its biggest weekly advance ever against the euro on a surge in demand for US currency funding amid a worldwide credit crunch.
"The dollar should continue to do well," said Benedikt Germanier, a currency strategist at UBSAG in Stamford, Connecticut. "It's the most liquid asset. This Bill won't change the reality that global economic activities will slow down further."
The dollar traded at $1.3853 per euro, compared with $1.3819, and touched $1.3703, the strongest level since September 2007. The dollar has gained 5.2 per cent this week, the most since the euro debuted in 1999.
"Very strong demand for dollars is still evident," said Marc Chandler, global head of currency strategy at Brown Brothers Harriman Co in New York. - (Bloomberg)
Price of oil falls by 9 cents
US crude settled at $93.88 a barrel, down 9 cents, after dropping $4.56 on Thursday on concerns about slumping demand.
London Brent crude settled at $90.24 a barrel, down 31 cents.
High fuel prices and the wider economic crisis have hurt consumption in top consumer the United States, knocking crude off a record peak of over $147 a barrel struck in July.
Analysts said that while the bailout could help stem a more serious downturn in the economy, it was likely to do little to bolster flagging oil demand.
"We know that big picture demand is the big question at this point," said Tom Bentz, analyst at BNP Paribas Commodity Futures Inc in New York. - (Bloomberg)
UK bank pledge raised to £50,000
UK banking customers had their deposit guarantees raised to £50,000 (€63,804) from £35,000 (44,663) by Britain's financial regulator.
The British Financial Services Authority (FSA) said it will consult with banks and consumer groups on further changes, including another increase in the compensation limit, the regulator said in a statement.
"In the interests of providing clarity over the minimum level for the long term we have now decided to implement the move to a £50,000 limit, FSA chief executive officer Hector Sants said. UK consumers are increasingly worried about the safety of their savings.
Northern Rock, which the UK government nationalised in February and has complete deposit protection, said yesterday that it had started to turn away a surge of new customers. - (Bloomberg)
Elan delays drug delivery sale
Elan has delayed plans to sell its drug delivery unit in an auction due to the credit crisis but some discussions are still continuing, people familiar with the situation said.
Elan and its bankers had hoped to secure second-round bids from private equity firms for Elan Drug Technologies (EDT) by mid-September - a timeline that has been blown away by market turmoil, since funding for potential acquirers is now uncertain.
That may affect the price Elan eventually achieves, assuming the sale gets completed, the sources said. EDT had been expected to fetch as much as $1.3 billion to $1.4 billion.
"They are still trying to do something but there may well be financing issues ," said one person. - (Reuters)
Abbey says trading conditions difficult
House builder Abbey told shareholders at its annual general meeting yesterday that trading in the months since its year-end on April 30th has proved difficult.
The company said that aggressive pricing is driving reasonable activity in southern England. In Ireland, there had been good forward sales from its Kilcoole development.
