RWE will supply gas to Ukraine

RWE companyThe German company RWE will carry natural gas supplies to Ukraine. This is the first such deal after Kiev recently announced that due to strained relations with Moscow seeking ways to reverse supply from Europe. RWE announced that starting immediate deliveries of natural gas to the Ukrainian state company Naftogaz in Poland. The company did not specify the quantities to transport to Ukraine, but the cost is the wholesale price for Europe. Deliveries are part of a five-year deal that allows the German company to transport up to 10 million cubic meters of natural gas a year to Ukraine. However, the quantities will be negotiated annually. Earlier this month, Russian gas monopoly Gazprom raised the price of natural gas to Ukraine by 80% and now Kiev debt the company is estimated at over 2.2 billion USD. Separately, Russia wants Ukraine to prepay for Russian gas.

Credit Agricole will increase the proportion of dividends payment

Credit AgricoleThe management of Credit Agricole SA promised earlier today that they will seek to double the net profit of the company in the next two years, as the bank wants to end the long period of restructuring after the debt crisis in Europe. The latest finance news from the banks claim that will focus on the three main activities – retail banking, asset management and insurance. Also the bank will mostly direct its business in France and Italy and will close the divisions in the other country or will sell them.
The purpose of Credit Agricole is to improve the net profits and increase the dividends. The second largest asset bank in France said that it expects to achieve an annual net profit of 4 billion EUR in 2016, compared to 2.51 billion EUR in 2013. The bank also told that from the next year will increase the ratio of dividend payment by 50%.

Mikhail Fridman buys oil and gas production of RWE

RWE gas oilThe German utility company RWE AG intends to sell the unit for production of oil and natural gas to Russian billionaire Mikhail Fridman. The deal is valued at more than 5 billion EUR (7 billion USD). The second largest utility company by market capitalization in Germany has reached an agreement in principle with the investment firm Friedman – L1 Energy, for the sale of the subsidiary RWE Dea for about 4.5 billion EUR. Under the deal L1 Energy will assume liabilities of RWE worth 600 million EUR. Thus the actual value of the transaction becomes 5.1 billion EUR, according to information from RWE it must be done in the short term, as yet disclosure of additional details. RWE Dea put on the counter almost a year ago – a move considered a milestone in the company’s efforts to reduce its debt and optimize cash flow. RWE suffers from declining revenues and profits because subsidized renewable energy by eating its business in Europe. In a separate statement L1 Energu Friedman stated that the acquisition will be a springboard for expansion into the oil and gas industry.

China Eastern Airlines ordered 70 Airbus A320 at total price of 6.4 billion USD

Airbus A320The Chinese airline company China Eastern Airlines has ordered 70 Airbus plane model A320 version Neo. The catalog value of 70 aircraft model is 6.4 billion USD. The contract is still subject to approval by shareholders in China Eastern Airlines, and the Chinese authorities. According to the signed contract to supply aircraft will take place in the period 2018-2020, part of the agreement includes the purchase of 7 aircraft model A330-600 that Shanghai-based carrier may require at a competitive price at a later stage. Established in 2012, China Eastern Airlines became the first Chinese company to focus heavily on aircraft manufactured by Airbus. Currently the entire fleet of the carrier is composed of the French aircraft manufacturer. China Eastern Airlines is the third-largest number of passengers carried by an airline in China. Earlier this week, Airbus unveiled plans to boost production of its A320 aircraft after a higher than expected profit in 2013.

Royal Mail increased the prices of postage stamps

Royal MailThe British postal company Royal Mail Group said it will raise prices of brands over the rate of inflation. The appreciation is the first in the last two years and increases discontent among critics who say that taxpayers were defrauded in the sale of the group. The Royal Mail capitalization rose 85% after the government sold part of its stake in the company. This led trade unions and opposition MPs claim that the sale price was too low.
The company announced today that prices of its premium brands will be increased by 2 pence, or 3%, to 62 pence. Second class stamps will cost you 53 cents, or 3 pence and 6% more. The increase will take effect on March 31st, wrote Monday. The inflation in the UK fell to 1.9% in January, taking into account their first retreat in the last more than five years. Level and remained below the recommended threshold of 2% set by the Bank of England.

RWE recorded billions EUR losses

RWE energyThe Essen-based energy concern RWE will consider serious loss for the last fiscal year. According to the renowned German economic daily Handelsblatt, which refers to the sources of the Supervisory Board, listed on DAX company will report a net loss of around 3 billion EUR. This loss will be much higher than originally expected. RWE did not comment on the material. According to the material CFO of RWE Bernhard Gunter presented the balance sheet for the financial year 2013 the Supervisory Board. In next Tuesday is expected CEO Peter Terium its balance sheet and to the public. However, analysts will pay special attention to earnings before interest, taxes, depreciation and amortization (EBITDA), which is expected by the experts has fallen in the previous year by 4.4% to 8.9 billion EUR. In terms of sales the consensus expectations for revenue of 53.5 billion EUR. For 2012 the profit of RWE was 1.3 billion EUR. Given the expected loss for 2013, dividends will probably be based on a percentage of non retained gains for previous years that at the end of 2012 was 2.5 billion EUR.

Sony closes 60% of its stores in USA

SonyThe Japanese electronics maker y Sony announced the planned reorganization that will allow the company to maintain its competitiveness. Some of the measures are to be closed 2/3 of the company’s stores in USA. The company said it would close 20 of its stores located in different States. So workers will remain only 11 stores. On February 6, Sony said it plans to cut 5 thousand employees. Now it is clear that thousands of them will be from units in USA and Mexico.
“These moves are very difficult, but absolutely necessary to position us for the best item that will bring future growth”, said the president of Sony Electronics Mike beans.
Will be closed four stores Sony in California, as well as sites in Florida and Virginia. Will continue to operate one of the leading stores in the USA – Sony Plaza in New York, and some of the sites in California, Texas ( Houston) and Florida.

General Electric invest another 10 billion USD for environmental technologies

General ElectricGeneral Electric (GE) plans to spend 10 billion USD on research and development of cleaner technologies by 2020 as part of the company. The General Electric’s investment will focus on three areas: natural gas, renewable energy and power plants. According to a press release the company wants to encourage more environmentally friendly hydraulic fracturing and to improve the efficiency of their plants. In research on gas GE will partner with the Norwegian Statoil. The objective will be finding a way to more reliably hydraulic fracturing, or so called fracking. The GE said high cost of current systems that use carbon dioxide for fracking make them impractical for use on a large scale. One of the missions is to develop a cost-effective system. The initial version of the program started in 2005 and was worth $ 15 billion. The latest news GE said it is expanding its investments to 25 billion USD, extending the mandate for a further five years. For the moment, the US giant has invested 12 billion USD program.

JP Morgan cut 8 thousand employees

JP MorganJP Morgan Chase announced that it will cut eight thousand jobs – 6 thousand in mortgage division and 2 thousand in this retail after these businesses continue to shrink. Last year, JP Morgan released over 16,500 bankers in these areas. The US Bank has so far been reported for half of these cuts, as now stated that cuts more places to save costs. Mortgage banking industry was affected by the decline in refinancing because of rising interest rates after the US Federal Reserve began to shrink monetary incentives. The cuts in retail come amid a shift to automated machines. Meanwhile, JP Morgan said it plans to hire about three thousand employees, bringing the total personnel will reach 260 thousand at the end of the year.

More and more companies are cutting jobs in China

WorkersAfter years of expansion in China some Western companies cut jobs after second-largest economy in the world reported the slowest growth in 20 years. Hewlett Packard Co. reported that shrinks minimum work force in China. However, the company determines the Celestial Empire as one of its most important markets.
The company Johnson & Johnson is cutting its sales of pharmaceutical products undetermined amount shared close to the company faces anonymity. The provider of software services Bsquare Corp also closed its office in Beijing. By ManpowerGroup Inc, one of the world’s largest companies for recruitment, said that in October the items offered on behalf of major international companies in China have dropped by 25 % this year – a sharper decline than in during the global financial crisis.
China is still one of the most important markets for Western companies. Foreign direct investments in the country came from the United States and the European Union were for 9.4 billion USD for the first 10 months of the year. This is an increase of 19% from a year earlier.