■MORTGAGES
Freddie Mac CEO resigns
David Moffett, the chief executive of Freddie Mac, resigned on Monday after only six months at the helm of the nationalized mortgage lender, which suffered billions of dollars in losses as the US housing market collapsed. The government-chartered lender said it was Moffett’s own decision and not the result of pressure from US President Barack Obama’s administration. Moffett will exit and an interim head will be appointed by March 13, the company said.
■PHARMACEUTICALS
Bayer net profit jumps
German drug and chemical maker Bayer AG reported yesterday a 58 percent jump in fourth quarter net profit despite difficult market conditions, and said it expected further growth at some divisions this year. The Leverkusen-based company said net profit increased 58 percent in the October through December period, to 106 million euros (US$135 million) from 67 million euros in the year earlier quarter. Sales in the fourth quarter fell 1.5 percent to 7.9 billion euros from 8 billion euros. Werner Wenning, the company’s chief executive, expressed confidence for this year despite substantial risks for the future development of the world economy: “We expect further growth in earnings at health care and crop science, along with a substantial reduction in net debt,” he said.
■BANKING
Woori, Macquarie form fund
South Korea’s Woori Bank said yesterday it would form a fund with Australian financial group Macquarie to invest in South Korea and a media report put its size at US$1 billion. A Woori spokesman said the deal would be signed in Australia today, the day South Korean President Lee Myung-bak begins a state visit to the country. “Talks are still under way on the scale of the fund and its terms,” the spokesman said. The Herald Business newspaper in Seoul said it would total US$1 billion. The spokesman said the fund would be used to support state-backed projects including a “Green New Deal” announced by Lee to revive the slumping economy.
■CHINA
Group heads for Europe
China will send a group to Europe this weekend to look for merger and investment targets following a visit by a multibillion-dollar Chinese buying delegation, the commerce minister said. Chinese companies have been stepping up investments abroad despite global financial turmoil and have signed a flurry of foreign energy and resource deals. “We will send a tour to Europe this weekend mainly for the purpose of investment and mergers, to take a look at what enterprises would be worth our taking shares in and operating together,” Commerce Minister Chen Deming (陳德銘) said on Monday in comments shown on state television.
■AVIATION
Carriers’ losses higher
Airline companies lost up to US$8 billion last year, with half of the losses incurred in the fourth quarter, the International Air Transport Association (IATA) said. IATA hiked its loss estimate for last year from a December forecast of US$5 billion to US$8 billion amid “large losses now being reported by Asian and European airlines.” Airlines’ losses in the fourth quarter of last year “at US$4 billion were larger than expected, because of recession and fuel hedging losses, pointing to industry net losses of up to US$8 billion for 2008,” said IATA in its latest Airlines Financial Health Monitor report.
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