UPDATE 1-Coldwater Creek sees bigger-than-expected Q3 loss
* Sees Q4 loss $0.17-$0.26 vs est -$0.28Oct 17 (Reuters) - Women’s apparel retailer Coldwater Creek
Inc forecast a wider-than-expected third-quarter loss,
hurt by weak traffic and high advertising costs.The retailer, whose larger rivals include Chico’s FAS
and Ann Taylor Stores Corp , projected a
third-quarter loss of 30-36 cents per share, while analysts were
expecting a loss of 28 cents per share, according to Thomson
Reuters I/B/E/S.The company, which has been struggling with its merchandise
for over a year now, expects comparable premium retail store
sales to fall 17-21 percent for the period and flat gross
margins compared to last year.However, the Sandpoint, Idaho-based company — which has
been working on a number of initiatives to improve its business,
including shutting stores — forecast a smaller-than-expected as
it hopes its holiday collection will appeal to customers.It projected net loss at 17-26 cents a share for the
quarter, while analysts had expected a loss of 28 cents a share.Coldwater shares closed at $1.13 on Monday on Nasdaq.
UPDATE 1-Coldwater Creek sees bigger-than-expected Q3 loss
* Sees Q4 loss $0.17-$0.26 vs est -$0.28Oct 17 (Reuters) - Women’s apparel retailer Coldwater Creek
Inc forecast a wider-than-expected third-quarter loss,
hurt by weak traffic and high advertising costs.The retailer, whose larger rivals include Chico’s FAS
and Ann Taylor Stores Corp , projected a
third-quarter loss of 30-36 cents per share, while analysts were
expecting a loss of 28 cents per share, according to Thomson
Reuters I/B/E/S.The company, which has been struggling with its merchandise
for over a year now, expects comparable premium retail store
sales to fall 17-21 percent for the period and flat gross
margins compared to last year.However, the Sandpoint, Idaho-based company — which has
been working on a number of initiatives to improve its business,
including shutting stores — forecast a smaller-than-expected as
it hopes its holiday collection will appeal to customers.It projected net loss at 17-26 cents a share for the
quarter, while analysts had expected a loss of 28 cents a share.Coldwater shares closed at $1.13 on Monday on Nasdaq.
UPDATE 1-Coldwater Creek sees bigger-than-expected Q3 loss
* Sees Q4 loss $0.17-$0.26 vs est -$0.28Oct 17 (Reuters) - Women’s apparel retailer Coldwater Creek
Inc forecast a wider-than-expected third-quarter loss,
hurt by weak traffic and high advertising costs.The retailer, whose larger rivals include Chico’s FAS
and Ann Taylor Stores Corp , projected a
third-quarter loss of 30-36 cents per share, while analysts were
expecting a loss of 28 cents per share, according to Thomson
Reuters I/B/E/S.The company, which has been struggling with its merchandise
for over a year now, expects comparable premium retail store
sales to fall 17-21 percent for the period and flat gross
margins compared to last year.However, the Sandpoint, Idaho-based company — which has
been working on a number of initiatives to improve its business,
including shutting stores — forecast a smaller-than-expected as
it hopes its holiday collection will appeal to customers.It projected net loss at 17-26 cents a share for the
quarter, while analysts had expected a loss of 28 cents a share.Coldwater shares closed at $1.13 on Monday on Nasdaq.
Ford UAW contract gains support in ongoing vote
The running tally as of Friday morning was 7,529 “yes” votes and 6,385 “no” votes, according to posting by the United Auto Workers Ford Department. That is about 54 percent for and 46 percent against.Two new plant votes, including an 87-percent vote from the Twin Cities plant in St. Paul, Minnesota and 77-percent in favor from the Livonia Transmission plant near Detroit, pushed the “yes” votes up from 51 percent reported earlier on Friday.There are about 1,000 workers at the Livonia plant and about 700 at the St. Paul plant.Ford local unions vote through next Tuesday on the tentative pact, with the total vote result to be issued on Wednesday.The vote will affect about 41,000 UAW-represented Ford workers.The next big union local to report results will be UAW Local 600, the biggest Ford local, which will report results on Sunday. Local 600 represents a handful of plants near Ford’s world headquarters in Dearborn, Michigan, including “The Rouge,” a sprawling factory built by company founder Henry Ford.UAW President Bob King said on Wednesday he was confident the pact would be ratified and that the weakening economy would undercut the union’s position if the two sides were forced back into bargaining.A Ford plant in Flat Rock, Michigan, voted 72 percent to approve the proposed pact, a union official said on Friday. That plant has been promised some of the production of the Ford Fusion sedan in a shift of work from Mexico. About 1,500 workers voted at the local representing the Flat Rock plant.Bringing back work from Mexico has been a selling point by King and UAW officials since Ford and the union reached a tentative agreement on October 4.UAW Local 1250 which represents two Ford engine plants in Cleveland where 1,032 workers voted, supported the contract by 53 percent to 47 percent.The proposed UAW contract at Ford is the richest of the deals offered to workers at the Detroit automakers. In one of the key differences, Ford workers would receive a signing bonus of $6,000 each, compared with just $5,000 for workers at General Motors Co and $1,750 at Chrysler Group LLC.Over the term of the contract, Ford workers are guaranteed at least $16,000 in bonuses. GM’s 48,500 union workers would get $11,500 at a minimum. At Chrysler, the weakest of the Detroit Three, guaranteed payout is just $5,750.Chrysler’s 26,000 unionized workers will vote over the next two weeks on a tentative contract agreement reached by negotiators on Wednesday.The Twin Cities plant, which once made the Model T, is scheduled to close in December. Many of its members voted in favor because the new contract promises production work at plants where the UAW workers can transfer, a union local official said.
Ford UAW contract gains support in ongoing vote
The running tally as of Friday morning was 7,529 “yes” votes and 6,385 “no” votes, according to posting by the United Auto Workers Ford Department. That is about 54 percent for and 46 percent against.Two new plant votes, including an 87-percent vote from the Twin Cities plant in St. Paul, Minnesota and 77-percent in favor from the Livonia Transmission plant near Detroit, pushed the “yes” votes up from 51 percent reported earlier on Friday.There are about 1,000 workers at the Livonia plant and about 700 at the St. Paul plant.Ford local unions vote through next Tuesday on the tentative pact, with the total vote result to be issued on Wednesday.The vote will affect about 41,000 UAW-represented Ford workers.The next big union local to report results will be UAW Local 600, the biggest Ford local, which will report results on Sunday. Local 600 represents a handful of plants near Ford’s world headquarters in Dearborn, Michigan, including “The Rouge,” a sprawling factory built by company founder Henry Ford.UAW President Bob King said on Wednesday he was confident the pact would be ratified and that the weakening economy would undercut the union’s position if the two sides were forced back into bargaining.A Ford plant in Flat Rock, Michigan, voted 72 percent to approve the proposed pact, a union official said on Friday. That plant has been promised some of the production of the Ford Fusion sedan in a shift of work from Mexico. About 1,500 workers voted at the local representing the Flat Rock plant.Bringing back work from Mexico has been a selling point by King and UAW officials since Ford and the union reached a tentative agreement on October 4.UAW Local 1250 which represents two Ford engine plants in Cleveland where 1,032 workers voted, supported the contract by 53 percent to 47 percent.The proposed UAW contract at Ford is the richest of the deals offered to workers at the Detroit automakers. In one of the key differences, Ford workers would receive a signing bonus of $6,000 each, compared with just $5,000 for workers at General Motors Co and $1,750 at Chrysler Group LLC.Over the term of the contract, Ford workers are guaranteed at least $16,000 in bonuses. GM’s 48,500 union workers would get $11,500 at a minimum. At Chrysler, the weakest of the Detroit Three, guaranteed payout is just $5,750.Chrysler’s 26,000 unionized workers will vote over the next two weeks on a tentative contract agreement reached by negotiators on Wednesday.The Twin Cities plant, which once made the Model T, is scheduled to close in December. Many of its members voted in favor because the new contract promises production work at plants where the UAW workers can transfer, a union local official said.
WRAPUP 1-EU may offer banks time to hit new capital target
* Losses on bonds, recaps could hit fragile economies* Greece banks could endure loss on bonds of up to 30 pctBy Philipp Halstrick and John O’DonnellFRANKFURT/BRUSSELS, Oct 13 (Reuters) - European banks could
get up to six months to strengthen their capital under plans
aimed at halting the region’s debt crisis, giving them time to
raise funds privately in the hope of averting another damaging
credit crunch.EU officials said on Thursday that weak banks may get the
extra time to bolster their balance sheets after a rapid health
check currently underway.Euro zone leaders are insisting that banks recapitalise, in
an attempt to halt the euro zone crisis and shore up investor
confidence.”A three- to six-month deadline is being considered,” said
one EU official, speaking on condition of anonymity. “No
decision has been taken.”The plan means Deutsche Bank and other top
European banks could have to raise billions of euros to meet a 9
percent core capital target and withstand hefty losses on
sovereign bonds.The European Banking Authority, which is assessing banks’
capital needs, is likely to mark down the value of banks’
holdings of sovereign debt to market value and require lenders
to hold a 9 percent core Tier 1 capital ratio, an EU source told
Reuters.Deutsche Bank, Germany’s flagship lender, would need 9
billion euros in fresh equity to reach that level, two people
with direct knowledge of the bank’s finances said on Thursday.Deutsche Bank declined to comment, but in separate remarks
the bank’s chief executive Josef Ackermann said it would do all
it could to avoid a forced recapitalisation and added it had
enough funds of its own to cope with a crisis.Setting the bar at 9 percent would leave European banks with
a capital shortfall of about 260 billion euros, based on a
two-year recession and applying current market prices to
holdings of Greek, Irish, Italian, Portuguese and Spanish
government bonds, according to Reuters Breakingviews data.Royal Bank of Scotland , Unicredit ,
Deutsche Bank, BNP Paribas and Societe Generale
would all need over 12 billion euros based on that
data. Some 67 of 90 banks tested would need capital.Banks are already attempting to sell assets and shrink their
loan books to lift capital ratios. They could also be told to
cut pay for staff and dividends for investors to preserve cash.But that could force them to cut lending to
companies and risk derailing economic recovery, bankers have
warned.”We need to find the right balance between stricter
regulation of the financial sector and the impacts these have on
the economy as a whole,” Ackermann said.All banks will be looking to cut back on lending
that uses a lot of capital and costly funding such as asset
finance, unsecured consumer finance, trade finance and some
business lending, analysts at Morgan Stanley said.”The risks of a big credit squeeze are very real, and we
hope the methodology and process looks to limit this,” said Huw
van Steenis, analyst at Morgan Stanley.PRIVATE FUNDS… THEN TAXPAYERSEuropean officials said banks should first turn to private
investors rather than governments to improve capital, signalling
that they needed time to do this.”The timeline is very important,” said one official. “The
current market circumstances are not ideal. At the same time, we
need to (regain) confidence as soon as possible.”There is likely to be limited private funding available for
banks, leaving many at risk of needing taxpayer funds or the new
euro zone EFSF rescue fund as a last resort.Greece’s banks could have to raise over 30 billion euros
under the plan, as they face big losses on their holdings of
domestic bonds.Banks are facing losses of 39 percent on their Greek bonds
under a private sector rescue plan agreed in July, above the
original estimate of a 21 percent hit, due to a rise in Greece’s
risk profile.Greek banks could endure a loss of up to 30 percent on the
bonds but could not stand significantly bigger haircuts, which
would also hurt the economy, Greek banking sources said.European leaders are still discussing the recapitalisation
plans, with many details still subject to change, and face
intense lobbying from banks and some countries who say it is too
harsh. Proposals are expected to be presented to a meeting of
European leaders on Oct. 23.The new standard is likely to be a 9 percent core tier 1
ratio, a key measure of a bank’s financial health, based on a
tighter definition of capital than used now, although not as
strict as that under new Basel III rules when in full forceAnalysts at Credit Suisse said a 9 percent capital level
would leave banks in need of 220 billion euros, with RBS,
Deutsche Bank and BNP Paribas most in need.Ackermann, Germany’s most high-profile banker, said it was
doubtful whether a blanket recapitalisation of European banks —
a measure being considered by politicians in Germany and France
— would help solve the sovereign debt crisis.”It is not the capital position which is the problem, but
the fact that sovereign debt as an asset class has lost its
risk-free status,” Ackermann told a conference in Berlin. “The
key to the solution is therefore in the hands of governments, to
restore confidence in the solidity of state finances.”
Saab receives loan money from Youngman -paper
STOCKHOLM Oct 12 (Reuters) - Crisis-hit car maker Saab has received about 100 million crowns ($15 million),
part of a bridge loan secured by China’s Zhejiang Youngman
Lotus Automobile that is key to the Swedish firm’s short-term
survival, daily Dagens Industri reported on Wednesday.The money is part of a 70 million euro ($97 million) loan
secured by Youngman that is intended to see Saab through a
period of creditor protection until Chinese authorities OK a
bigger investment by Youngman and China’s Pangda .Quoting unnamed sources, the paper said the money will be
used to pay wages at Saab when a government salary insurance
scheme runs out. The salary insurance plan kicked in when the
company got creditor protection in late SeptemberIt was not clear whether Saab would get further money from
Youngman in the short term or whether it must wait until
Chinese authorities approve the planned 245 million euro ($338
million) investment Youngman and Pangda have agreed to make in
Saab.The paper said a decision by China’s NDRC that Saab had
expected on Thursday is likely to be delayed. However, the
paper quoted a source with insight into the process as saying
approvals should be wrapped up by mid-November.Earlier on Wednesday, Pangda chairman Pang Qinghua said he
was “confident” the firm’s planned investment in Saab would go
through.In recent days, Swedish media have speculated that Saab’s
court-appointed administrator was close to ending Saab’s period
of credit protection, paving the way for the court to declare
the firm bankrupt.
UPDATE 1-Greek tax inspectors to strike, protests spread
* Budget deficit widens in first nine months despite new
taxesBy Harry Papachristou and Renee MaltezouATHENS, Oct 12 (Reuters) - Greek tax inspectors will go on
strike next week to protest against planned wage and pension
cuts, threatening more disruption to revenue collection efforts
that are already falling behind budget targets imposed by
international lenders.With much of Greece expected to be shut down by a general
strike on Oct. 19, finance ministry officials have called a
two-week stoppage from Oct. 17 while tax offices will remain
closed from Oct. 17-20 and customs officials will stay away from
their desks from Oct. 18-23.On Wednesday, the finance ministry in Athens was shuttered
with a black banner reading “Occupied” hanging down the front of
the building, which faces parliament across the central Syntagma
Square.”Everything is falling apart, we are suffering along with
everyone else in the public sector,” said Nikos Klouvatos, head
of the union representing workers at the statistics agency. “We
would not have reached this point if the government had taken
the right measures in time.”Greece is trapped in deep recession and fighting to control
a public debt mountain expected to reach 162 percent of GDP this
year, and there has been growing doubt over whether the
austerity measures will be enough to prevent default.Data on Wednesday showed the central government budget
deficit widened by 15 percent in the first nine months of the
year as the shrinking economy produced less tax revenue despite
a rise in sales tax in restaurants and a one-off income tax
surcharge.On Tuesday, officials from the EU-IMF-ECB “troika” said that
Athens would miss its 2011 fiscal targets and needed to take
additional steps to get back on track to meet objectives beyond
2012.But the measures imposed so far have strained Greek society
severely and raised questions over how much more pain workers
would accept.”We’ll continue with labour action and occupations next week
when the general strike takes place,” said Despina Spanou, a
senior leader of the ADEDY union, which represents half a
million public sector workers.”We expect it to be the biggest walkout so far,” she told
Reuters, adding that her salary had been cut by 70 percent since
2009. “We cannot live like this,” she said.EU SUMMITParliament is debating a sweeping package of measures,
ranging from wage and pension cuts to tax rises and large-scale
public sector layoffs, which Finance Minister Evangelos
Venizelos said must be approved before an Oct. 23 EU summit.”This law needs to be approved before the EU summit so that
the prime minister can stand up and argue that Greece is
fulfilling its obligations,” Venizelos told lawmakers at a
reading of the legislation in parliament on Wednesday.Analysts expect the law to pass despite discontent among
ruling Socialist party lawmakers.Prime Minister George Papandreou discussed the euro zone
debt crisis late on Tuesday with IMF chief Christine Lagarde,
but his office gave no details of their talks.The government has already admitted it will miss initial
2011 deficit targets and Venizelos has warned that if citizens
fail to back new tax measures, the 2011 deficit could reach 9
percent of GDP, above the new 8.5 percent goal.The conservative opposition, which opposes the austerity
measures and is leading the Socialists in opinion polls, said
the government had failed.”The ‘rescue plans’ are collapsing, one after another — the
budget execution figures confirm this”, the party’s economy
spokesman Christos Staikouras said. “This is a bottomless pit,
the fiscal holes get wider and wider.”Outside parliament, a couple of thousand demonstrators took
part in what have become daily protests against the measures.Garbage piled up in some areas as municipal workers stopped
work, and a 48-hour strike starting on Thursday will halt public
transport in Athens, adding to the misery of Greeks facing the
deepest cuts in postwar history.The walkouts by tax and customs officials are expected not
only to disrupt badly needed tax payments, but also to disrupt
fuel supplies, as petrol deliveries from refiners to filling
stations usually require customs clearance.Crowds of foreign tourists were barred from entering the
Acropolis in Athens because of a strike by archaeological
service workers, responsible for running sites which bring in
much-needed tourist revenue.Athens has promised tough new civil service wage cuts to
convince the European Union and the International Monetary Fund
that it will meet new budget deficit targets of 8.5 percent of
GDP this year and 6.8 percent in 2012.The planned strike, by workers who will suffer from the
austerity measures, underlines the difficulty of pushing through
the tax collection drive demanded by the EU and IMF inspectors.Disgruntled power workers have threatened to boycott a
planned property tax, designed to be collected through utility
bills as a means of bypassing the notoriously inefficient tax
authority.Many public servants have lost a fifth of their salaries
since the start of the crisis and now face further cuts of up to
20 percent. Some 30,000 are also being assigned to a so-called
labour reserve, a step towards redundancy.
