The Organisation for Economic Co-operation and Development (OECD) has predicted that the recovery and growth seen in the second half of 2009 is expected to continue in 2010. Their recent figures show that its 30 member countries, including the US and UK have more than doubled its growth projections for next year. However a spokesman from the OECD warned the developed nations not to expect a smooth ride and that "growth was being held back by still substantial headwinds" and would be restrained for some time in the near future. They went on to explain that some of the very measures that were being used to help the richer nation’s economies to recover might return like a boomerang upon them. The feeling was at the OECD was that the UK, needed to come up with a concrete plan to ease concerns about the stability of their public finances, and that the results that could be achieved through continuing the country’s quantitative easing programme remained uncertain. The UK, which now has overall debt of £825 billion, is set to borrow a record £175 billion over the next two years with further details of how and why due to be set out in Chancellor Darling’s pre-Budget report on 9 December.

US investment bank JP Morgan have announced that they are to complete their take-over of UK stockbroker Cazenove. Morgan are reported to be paying a further £1 billion ($1.67 billion) for the remaining 50% of Cazenove that is not in their hands. JP Morgan and Cazenove reached a joint venture agreement in 2004, where they merged their investment banking operations.

The news that Marks and Spencer have chosen Marc Bolland, current head of Wm Morrison, as its new chief executive, saw a dramatic and immediate shift in fortunes for both companies, at least in stock market terms. Shares in M&S rose 6 per cent to close on 390 pence while Morrisons’ fell by 5 per cent to 281 pence, making for a combined £600 million swing”.

Dutch born Bolland’s appointment puts a long awaited end to the speculation of who will replace incumbent chairman, Sir Stuart Rose, who will remain with the company as part-time chairman until mid-2011.

ITN were expected to reveal the first trading first-ever loss on Thursday as the company launched a set of austerity measures which will be required to put the company back on track. ITN, who produce news bulletins for ITV, as well as for Channel 4, is owned by four media companies, ITV Daily Mail & General Trust, United Business Media and Thomson Reuters, each of whom hold a 20 percent share, except ITV who hold 40 percent. Reasons given for the drop in sales and profit were mainly the recession, which has affected advertising revenues on all commercial broadcasters, and the closure of Setanta Sports News, the news channel operated by the Ireland-based sports channel network that went into administration this year. Revenue from Setanta made up approximately 5 per cent of ITN’s sales in 2008. ITN made a profit of £4.1 million on turnover of £105 million.

Postal and parcel delivery company UK Mail, who only this moth adopted their new trading title from Business Post, have announced a rise in their interim profits, despite of a fall in revenues caused by a recession driven fall in demand. A spokesman for the company pointed out that their parcel business, which holds around a 7 per cent share of the UK market, has witnessed an upturn is sales during the period of postal strikes, as the public began to seek alternatives to Royal Mail’s service. However the company, which also handles around 17 million items of mail a day, said the strikes affected the volumes of mail handled by the company much less significantly than they had hoped for. UK Mail, who relies on the Royal Mail for “last mile” delivery of its sorted post, pointed out that the impact the strikes had been less severe than anticipated.

Sterling lost some of its gains against the major currencies in midweek trading.

• Pound/US dollar 1.6636
• Pound/Euro 1.1163
• Pound/Japanese Yen 148.0862
• Pound/Swiss Franc 1.6881

The UK’s benchmark FTSE 100 index lost the bulk of its early gains for the week, down 78 points to 5,267.70. The FTSE 250 took its usual midweek tumble down 165 points to 9,237.

New home construction in the US have taken a surprise drop fall in October, down 10.6% to an annual rate of 529,000 homes, making for the lowest level in housing starts since April of this year, Reasons for the decrease in demand was put down to .a fall in demand for both single and family housing.

On the news, the Dow Jones average slumped 105 points to close on 10332.42. The NASDAQ also took a tumble, but for reasons of its own and finished the day on Thursday on 2156.92.

Internet giant America on Line (AOL) have announced that they are to lay off more than 2,000 of their staff , representing one third of their entire work forces when it completes its spinoff from Time Warner, with whom they have been in partnership since 2001. Representatives from Time Warner have stated that the separation will be completed by the end of 2009.

Also cutting jobs are Air France-KLM who plans to cut their work force by cut 1,700 during 2010. Their decision comes after the airline posted a worse than predicted third quarter loss of 147 million Euros (£131 million) the job losses are in addition to the 3,000 already cut in 2009.

Silver, platinum, palladium and copper have reached fresh highs for the year while gold continued to extend its record-breaking run breaching the $1,150 mark, seen as the next key milestone in the rally, to reach a record $1,152.74 an ounce, before easing back to $1,148.

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Tags: Air France-KLM, Alastair Darling, America on Line, AOL, Bolland, British Economy, British Pound, Business Post, Cazenove, copper, Credit Crunch, Currency, Daily Mail, Dow Jones, Economy, Financial News, FTSE, General Trust, Gold, ITN, JP Morgan, M&S, Marc Bolland, Marks and Spencer, Money, Money Markets, NASDAQ, OECD, Organisation for Economic Co-operation and Development, palladium, platinum, quantative easing, Recession, Retail, Royal Mail, Setanta, Silver, Stock Markets, Stocks and shares, Stuart Rose, Thomson Reuters, Time Warner, UK Banks, UK Economy, UK government, UK Mail, UK Recession, United Business Media, WM Morrison

Sweeping spending cuts and tax increases will be required across the industrialized world over the next decade to bring public finances under control following the economic crisis, the International Monetary Fund warned on Tuesday. The IMF projected that on current trends, even assuming some discretionary fiscal tightening next year, government debt in the advanced G20 economies would reach 118 per cent of gross domestic product in 2014.

The Fund warned against assuming that current low borrowing rates for these nations in the bond market would prevail forever, releasing research suggesting that the projected increase in government debt would result in a roughly 2 percentage point increase in government bond yields.

HSBC is to shed another 4 per cent of its UK workforce as pressure mounts across the banking industry to cut costs. The global bank said it would cut about 1,700 jobs in back-office functions, affecting mainly collections and credit card operations, in the next 12 to 18 months. The jobs would mostly be lost from regional centres in southern England. It also aims to add 400 to 500 jobs in Birmingham in that time. HSBC had previously announced the loss of 1,200 jobs in March and 500 in December last year. Of these, the bank said it had redeployed some 500 staff and would hope to redeploy a similar proportion from the latest round of job cuts.

Legal & General (LGIM) sought to defend itself against the idea of a break-up of its businesses as it reported its lowest level of quarterly sales figures for at least seven quarters on Tuesday.

The life and pensions said that keeping its annuity, protection and asset management businesses under one roof brought valuable “synergies” across all three.

Tim Breedon, chief executive, said that about 30 per cent of its new business either came from cross-selling or was business the company would not have won if it did not have all three elements.

Mr Breedon highlighted stronger-than-expected cash flow at the group and the performance of LGIM, the group’s asset management arm, which attracted net inflows of £12.2 bn ($20bn) over the first nine months, outstripping the £11.1 bn seen at M&G, Prudential’s asset management arm.

Marks and Spencer has confirmed it will start selling branded goods at its stores across the UK.

It will mean 400 household brands, such as Kellogg’s and Coca-Cola, will be sold alongside M&S’ own products in areas such laundry, beer and pet food.

The decision comes after successful trials in stores in the north-east and south-east of England.

The announcement came as M&S reported profits of £306.7 million for the six months to September.

The figure was little-changed on the profit of £307.8 million made in the same period last year.

Associated British Foods (ABF LN): The maker of Silver Spoon sugar reported a 12 percent rise in full-year group revenue. The company also said it’s cautious about the outlook for the U.K. consumer. The shares gained 5.5 pence, or 0.7 percent, to 833.

Aviva Plc (AV/ LN): The U.K. insurer raised 1.02 billion euros ($1.5 billion) selling stock in its Dutch insurance unit Delta Lloyd NV, pricing the shares near the low end of its forecast range after insurance companies slumped.

The U.K.’s biggest insurer by market value sold 63.5 million Delta Lloyd shares at 16 euros each. Aviva had sought 15.50 euros to 19 euros a share. Delta Lloyd will begin trading today in Amsterdam.

The shares rose 5.5 pence, or 1.4 percent, to 389.1.

British Airways Plc (BAY LN): Europe’s third-biggest carrier may face its first cabin-crew strike since 1997 before the end of the year as the union representing flight attendants at Europe’s third-largest airline prepares to vote on a walkout.

Members of the Unite union will meet on Dec. 14, by which time union leaders aim to have the results of a strike vote. The stock dropped 1.9 pence, or 1 percent to 179.9.

GlaxoSmithKline Plc (GSK LN): The U.K.’s largest drugmaker received a letter from Connecticut Attorney General Richard Blumenthal saying he was investigating allegations of price gouging, according to a faxed statement. The shares fell 3 pence, or 0.2 percent, to 1,247.

Cadbury Plc (CBRY LN): The U.K. confectioner is targeting an “unrealistic” price as a starting point for talks about a merger with Kraft Foods Inc., the Sunday Telegraph said, citing people it didn’t name. Kraft will probably make a hostile takeover bid if Cadbury’s management doesn’t support a tie-up. Reports have it that Kraft is preparing another bid for Cadbury which will be put to investors within the next 10 days. The newspaper did not say where it obtained the information. The stock fell 2.5 pence, or 0.3 percent, to 770.5.

DUTCH parcel firm TNT, which is trying to cash in on the disruption caused by the UK’s postal strikes, yesterday posted better-than-expected quarterly results due to cost-cutting and highlighted signs of revival in its business parcels arm. TNT, which has lobbied the government to allow it to launch a door-to-door postal service to challenge the strike-hit Royal Mail, said third quarter profits dipped 14.4 per cent to €179m (£162m), although margins recovered to nearly match last year’s levels. The group uses the Royal Mail for the so-called “final mile” of its British postal network, but has been trialling its own door-to-door letter deliveries in several areas including Merseyside, using orange-clad postmen. TNT said UK business-to-business parcel volumes had increased about 10 per cent in the few couple weeks since the strikes by the Communication Workers Union kicked in, but a spokesman said the rise had come too late to affect the third quarter numbers.

General Motors (GM) has cancelled plans to sell a majority stake in its European car business Opel, including its UK brand Vauxhall.

The US giant said in a statement that its board had made the decision because of "an improving business environment for GM over the past few months".

GM had agreed to sell Opel and Vauxhall to Canadian car parts firm Magna.

It added that it would now be seeking aid for Opel from the German government and other European states. GM added that it had also come to its decision because of the importance of Opel and Vauxhall to its global strategy. General Motors (GM) has confirmed that it plans to cut 10,000 jobs across its European car unit Opel, which includes the Vauxhall brand in the UK. The announcement comes a day after GM said it was cancelling its deal to sell Opel to Canadian car parts firm Magna. Unions in Germany said workers would begin walk-outs from Thursday in protest at GM’s decision.

The German government, which had backed the sale of Opel, demanded GM repayment of a 1.5bn euro ($2.2bn; £1.3bn) loan.

The pound fell for a second day against the dollar and snapped a five-day gain versus the euro on speculation that forced asset sales by banks may weaken the country’s financial institutions.

Billionaire Warren Buffett’s investment firm is to take control of the second-biggest US railroad, in what is said to be his biggest deal yet.

Berkshire Hathaway agreed to buy the 77.4% of Burlington Northern Santa Fe (BNSF) it does not already own for about $26bn (£16bn) in cash and stock.

BNSF is the biggest US hauler of products such as corn and coal.

Mr Buffett said that the deal was "an all-in wager on the economic future of the United States". Including past investment and the assumption of $10bn of BNSF debt, the deal is valued at $44bn. Warren Buffett on Tuesday struck the biggest deal of his life with the $26.6bn purchase of Burlington Northern Santa Fe, one of the largest US railroad operators, in what the billionaire investor called an “all-in wager” on America’s economic future. The cash-and-shares deal by Mr Buffett’s Berkshire Hathaway, which already has a 22.6 per cent stake in BNSF, caps a long search by the legendary investor for an “elephant” deal to deploy his vast cash pile. The takeover deepens Mr Buffett’s exposure to the US-focused old-economy sectors that have long been the backbone of his empire alongside financial services, and underlines his confidence in a rebound in domestic growth

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Tags: Associated British Foods, Attorney General, Aviva PLC, Bank, Bank of England, Berkshire Hathaway, BNSF, British Airways Plc, British Economy, Burlington Northern Santa Fe, Cadbury Plc, Coca-Cola, Credit Crunch, Delta Lloyd, Economics, Economy, Employment, Financial News, General Motors, GlaxoSmithKline Plc, GM, HSBC, International Monetary Fund, Kellogg's, Kraft Foods Inc, Legal & General, LGIM, M&G, M&S, Marks and Spencer, Money, Opel, Prudential, Recession, Retail, Richard Blumenthal, Royal Mail, Silver Spoon, Sunday Telegraph, Tim Breedon, TNT, UK Banks, UK Economy, UK government, UK Recession, Unite, Vauxhall, Warren Buffett

Fears that unemployment will soar in coming months intensified as Marks & Spencer laid plans to shed 1,000 staff and other big companies prepared to cut their staffs and close stores as well.

The Council of Economics and Business Research is forecasting that between 100,000 and 135,000 shop workers will lose their jobs this year.

With the last Woolworth store closing, 27,500 staff have joined the job queues.

Other major retailers such as JJB Sports are expected to announce job cuts in the coming months as the scale in decline of retail sales is revealed.

M&S confirmed plans to cut 1,230 jobs from a 70,000 strong workforce and that 25 of its Simply Food stores and two smaller M&S branded stores will close following a decline in sales.

For the 13 weeks to December 27, M&S sales fell by 7.1% .

Hotel group InterContinental, with brands including Holiday Inn, Crowne Plaza and Indigo, is rumoured to be drawing up plans to shed up to 200 jobs in the UK, where it has about 240 managed and franchised properties.

Bellway Homes, the house builder, that said in November that it would consider job cuts in the run-up to its annual meeting next week, is also understood to be preparing to cut staff in response to the tough housing market.

The Stag Brewery at Mortlake, London, is to close, with the loss of up to 182 jobs.

The brewery, which produces Budweiser, Bud Ice and Michelob Ultra, will shut next year as part of £690 million cost savings strategy announced by US brewery giant InBev after its $52 billion takeover of Anheuser-Busch.

Markets

FTSE100

Open Close Change % Change

4579.60 4638.90 + 59.30 points 1.29%

DOW

Open Close Change % Change

8952.89 9015.10 + 62.21 points 0.69%

CURRENCY –

Pound v Euro

Open Close Change % Change

1.04 Euros 1.05 euros +0.01 cents 0.96%

Pound v US Dollar

Open Close Change % Change

$1.45 $1.46 +0.01 cents 0.69%

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Tags: Bellway Homes, Credit Crunch, Crowne Plaza, Holiday Inn, Indigo, InterContinental, JJB Sports, M&S, Retail, UK Recession, Woolworth