Thomas Cook Group: RBS, Barclays, HSBC Holdings relax financial covenants, new money extended |
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| Economy | |
| Written by Roberta Murray | |
| Monday, 28 November 2011 | |
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Financial News Roundup: Thomas Cook, HSBC, UniCredit, Barclays, Royal Bank of Scotland Group, Anglo American, UBS and the Eurozone crisis.
Thomas Cook Group shares have rebounded by 34% this morning, this after banks Barclays plc (LON:BARC), Royal Bank of Scotland Group plc (LON:RBS), HSBC Holdings (LON:HSBA) and UniCredit effectively bailed out the travel company at the close of last week. Thomas Cook Group Group plc (LON:TCG) has announced:"Our banks, led by Barclays, HSBC, RBS and UniCredit, have agreed to provide a new £200m facility available until 30 April 2013, which replaces the £100m short-term facility announced on 21 October 2011. "In addition, they have agreed a further relaxation of the financial covenants under the existing facilities. (...) As previously announced, the Board is taking steps to reduce the Group's debt and reach a more appropriate capital structure over time. The Group will also undertake a strategic review." Bank funding gapThe FT reports that a €241bn funding gap for European banks exists - the banks have been unable to borrow as much money as they needed in 2011 to roll over previous loans. One suspects this is not the last we’ll hear about the agonies of Europe’s banks. NHS being ripped offThe Times’s lead story is an accusation by an Indian vaccine maker that the National Health Service is being ripped off by the pharmaceutical giants. The Chief Executive of Serum Institute of India argues by buying from generic producers (like his own firm) the British tax payer could cut its bills by £100m a year. UBS pricing in collapse of the EuroThe Telegraph goes with a summary of developments in the Eurozone crisis, as the annual Europe - US summit gets underway in Washington. Perhaps more pertinent than whatever President Obama, Herman Van Rompuy and José Manuel Barroso have to say to each other is the fact the huge Swiss bank, UBS, is already “pricing in” the collapse of the single currency. Anglo American Chilean project in disputeThe Telegraph also has a story about the mining giant Anglo American’s huge new copper mine in Chile, the “Los Bronces “ project. It is a fascinating tale of an engineering marvel and a legal dispute with the Chilean government. As the Times reports, Los Bronces is part of Anglo’s strategy of investing in capacity to deliver “high value growth”.
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