Mon, Aug 06, 2012 - Page 15 News List

World Business Quick Take

Agencies

TRADING

Knight keeps up the fight

Knight Capital Group Inc, fighting to stay afloat after a US$440 million loss spurred by a software bug, scrambled with its advisers to find a buyer or investor. The market maker responsible for about 10 percent of US equity volume turned to Goldman Sachs Group Inc on Wednesday to buy the firm out of trading positions acquired by mistake when a computer program malfunctioned, a person with knowledge of the matter said. It has until the close of business today to complete the transaction. “There’s a lot of questions about their liquidity — do they have the money to get through the trade settlement on Monday?” Patrick O’Shaughnessy, an analyst at Raymond James & Associates Inc, said in an interview with Pimm Fox on Bloomberg Television’s Taking Stock. Knight made it to the weekend after receiving short-term financing for market making, according to a person familiar with the matter who requested anonymity.

HONG KONG

Man held for hacking threats

Police said yesterday they had arrested a 21-year-old man after he reportedly said on Facebook that he planned to hack several government Web sites. Police said the man, who was later released on bail, was held on suspicion of “access to a computer with criminal or dishonest intent” after he allegedly threatened to hack seven government Web sites between June and this month. “The Internet is not a virtual world of lawlessness,” a police spokesman said, adding that the man was required to report back to the police in October. The unidentified man was arrested on Friday before being released on bail, the spokesman said, and faces up to five years imprisonment if found guilty.

EGYPT

Government plans bond sale

The government plans to sell 5 billion Egyptian pounds (US$822 million) of Treasury bills today as it prepares to resume loan talks with the IMF later this month. Cairo will seek bids for 4 billion pounds of nine-month notes and 1 billion pounds of three-month bills, according to central bank data on Bloomberg. Yields on both securities declined at every auction last month to 15.65 percent and 14.2 percent respectively. Cairo contacted the IMF to start negotiations for a US$3.2 billion loan after the end of the Islamic holy month of Ramadan, Finance Minister Momtaz El-Saieed said yesterday. Talks have been on and off for more than a year during which national borrowing costs rose to record highs and net international reserves slumped by more than half to US$15.5 billion as of the end of June.

FINANCE

US jobs make rich richer

The 740 richest people on the planet added US$19.4 billion to their collective net worth on Friday after an increase in US jobs and positive earnings reports erased losses sustained last week. The day’s biggest gainer was Spanish retail tycoon Amancio Ortega, who added US$2.8 billion to his fortune as shares of Inditex SA, the world’s largest clothing retailer, jumped 5.4 percent. Bernard Arnault’s fortune increased US$474 million during the week. Shares of LVMH Moet Hennessy Louis Vuitton SA, the world’s largest luxury goods maker, rose 3.1 percent in Paris. Carlos Slim, 72, remains the world’s richest person. Slim’s fortune lost US$569 million. He now has a net worth of US$74.9 billion. Bill Gates, 56, is US$12.2 billion behind Slim. No. 3 on the index is Warren Buffett, 81, worth US$45.9 billion.

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