Apple win hits rivals
Samsung sinks
Apple's courtroom victory against smart phone rival Samsung has reverberated throughout the technology sector with investors selling off shares in the Korean phone maker and also smartphone Android architecture owner Google in response. There are fears that Samsung may have to redesign some of its popular products now it has been found guilty of compromising Apple's patents. Up to eight Samsung products could be banned from sale in the US. Shares in Google also fell back on fears its Android smart phone operating system could be compromised. Conversely, shares in troubled Nokia rose on hopes it could benefit.
West Coast rap
Court action
Virgin Trains has launched legal action against the government's decision to award the West Coast mainline rail franchise to rival FirstGroup after the government dismissed a demand from the Labour opposition for the £10bn deal to be put on ice until MPs return to Westminster next week, to allow for a proper debate. Virgin has run the line for 15 years and faces having to close down its UK rail operations if the loss of the franchise is confirmed, hence the lengths it is willing to go to in a bid to reverse the government's decision.
Entente cordiale
Franco-German thaw
Relations between France and Germany appear to have thawed after the two countries said they would be collaborating more closely through the formation of a joint policy making body which would encourage more integration of EU finance policies and also help build the new pan-European banking regulation infrastructure. The initial focus is to form a consensus on how best to deal with the problems in the Greek, Spanish and Italian economies. Meanwhile, hopes of further action from the European Central Bank were raised this week when Bank boss Mario Draghi cancelled his attendance at the Jackson Hole conference in the US.
Jackson Hole starts
World bankers meet
The annual symposium of global banking heads begins at Jackson Hole, Wyoming, today with equity geeks waiting with bated breath to hear whether the US Federal Reserve chairman Ben Bernanke will announce a further splurge of quantitative easing. With economic indicators in the US showing signs of growing weakness in the economy there, the likelihood of further easing in September is in the balance. Also, it is effectively the last chance for Mr Bernanke to act before the US presidential election campaigns kick off in earnest.
Norwegian no
Glenstrata pressure
Norway's oil-fuelled sovereign wealth fund has been buying heavily into miner Xstrata as it looks to join forces with Qatar Investment in blocking the proposed merger with 34 per cent shareholder Glencore International, which goes before a shareholder vote next Friday. Norges Bank Investment Management has spent $500m (£315.77m) on Xstrata shares in recent weeks. Qatar has long voiced its opposition to the terms of the merger and with the Norwegians now on board it is tantalisingly close to having enough firepower to veto the deal. Indeed, the respective boards of the two companies have been preparing the way for separate futures at recent corporate presentations.
Pain in Spain
Deposit flight
Spanish savers are withdrawing deposits from its troubled banking system at a record rate as fears grow that a formal bailout is imminent. Figures show that July saw a record €74bn (£58.64bn) outflow from Spanish commercial banks, double the previous monthly record. Spain’s deposit base has now shrunk by more than 10 per cent over the past year. Concern over Spain's finances was not helped earlier this week when the region of Catalonia, which represents around a fifth of the country's economic output, went cap in hand to the central government for €5bn from a liquidity facility.
