In Short

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

Egm rejects ex-Payzone chief's motion

Former Payzone chief executive John Nagle failed yesterday in an attempt to remove David Mills as a director of the London-listed electronic payments group.

His motion was defeated at an extraordinary general meeting, held at the offices of law firm Matheson Ormsby Prentice. The meeting lasted for only a short number of minutes.

Of the 237 million votes cast, 85.7 per cent voted against the motion while 14.3 per cent were in favour.

Addressing the meeting, Mr Nagle described Mr Mills as being "inefficient" and "incompetent" and said he had no confidence in him as an independent director.

The company did not respond to Mr Nagle's claims.

Mr Nagle was dismissed as chief executive of Payzone in March, following an egm. He is currently involved in litigation with the company relating to his sacking.

Commenting on the outcome of yesterday's egm, Payzone chairman Peter Smyth said: "We are delighted that David Mills remains as a non-executive director of Payzone."

Credit crisis 'far from over' - Merrill

The credit crisis is "broad, deep, and global" and "far from over" for financial companies, Merrill Lynch's chief investment strategist said yesterday.

"Investors are significantly underestimating both the scope and the extent of the credit bubble and the consequences of its subsequent deflation," Richard Bernstein wrote in a note to clients.

The lingering effects of the crisis - after a reported $500 billion in write-downs and credit losses - mean banks and brokerages need "massive" consolidation, Mr Bernstein said. - (Bloomberg)

Japanese economy contracts sharply

The Japanese economy shrank in the second quarter at its fastest pace since the last recession in 2001, government data showed yesterday. Household spending, which makes up 55 per cent of the economy, was the biggest drag on activity.

"Consumption is barely hanging on even as prices of daily necessities rise," said Yasuo Yamamoto, senior economist at Mizuho Research Institute. "But if consumption weakens further, it would delay Japan's escape from recession." - (Reuters)

Oil rises by almost $4 a barrel

Oil rose nearly $4 a barrel yesterday after a US government report showed declines in fuel and crude inventories in the world's top consumer.

US crude traded up $3.87 to $116.88 a barrel by lunch time in New York after demand concerns sent prices down to a three-month low of $112.31 during intraday activity on Tuesday. London Brent rose $3.40 to $114.55.

US gasoline stocks dropped by 6.4 million barrels in the week to August 8th as refinery throughput decreased, the Energy Information Administration said, more than the 2.1 million-barrel decline analysts forecast. - ( Reuters)