Business News Today: Research in Motion, Spanish bailout terms agreed, Augusta Westland boosts defence industry, M&S results.
Research In Motion Limited (NASDAQ:RIMM) is getting serious about cutting costs - one of its two business jets will be sold in an effort to cut 1bn USD in operating costs.
The Dassault F50EX is expected to fetch up to 7m USD.
That said, according to Bloomberg the jets at RIM are not a mere luxury from a bygone era. A 47 percent plunge in US sales last year has seen company executives increasingly roam the world in order to stay afloat - markets such as Indonesia and South Africa are examples of where the company as remained successful.
"We’re looking at options with both our aircraft costs and finding ways to reduce our travel while still making sure we keep in close contact with our partners around the world," says a statement from Research in Motion.
Euro area ministers agree Spanish bailout terms
Euro area finance ministers have agreed on the terms of a bailout for Spain's troubled banks, saying that 30bn euros can be ready by end of this month to help save one of the largest countries in the Eurozone from needing a full bailout. Ministers also agreed to grant Spain an extra year until 2014 to reach its deficit reduction targets in exchange for further budget saving.
The decisions were aimed at preventing the currency area's fourth largest economy, mired in a worsening recession, from needing a full state bailout that would stretch the limits of Europe's rescue fund and plunge it deeper into a debt crisis.
"We are aiming at reaching a formal agreement in the second half of July, taking into account national parliamentary procedures, allowing for a first disbursement of 30bn euros by the end of the month to be mobilised as a contingency in case of urgent needs in the Spanish banking sector," Euro Group President Jean-Claude Juncker said, according to The Telegraph.
Augusta Westland boosts UK defence industry
Augusta Westland used Farnborough Airshow to unveil its scheme to build its new AW189 civil helicopter in Yeovil, which is expected to create 1,500 jobs in the UK and £2bn of exports. Graham Cole, Agusta Westland chairman, said it was a “giant step” for the company.
David Cameron, the Prime Minister, hailed the news as he opened the airshow and voiced his strongest support yet for the defence industry. Britain’s leading defence manufacturers, such as BAE Systems, have been hurt by UK public spending cuts, but Mr Cameron identified aerospace as a “real success story” for the economy. However, he warned that the rest of the world was “breathing down our necks” and the UK had to be “constantly alive to the competition,” The Telegraph says.
Marks & Spencer
Marks & Spencer IMS/Q1 Results reported a fall in group sales of 0.7% due to its womenswear merchandise but food sales rose 2.9%. It added that it expected short-term trading to be challenging but existing guidance for the financial year 2012/13 remained unchanged.
It also separately announced the departure of Kate Bostock as Head of General Merchandise with effect from October 2012 who will be replaced by John Dixon who has been at the company for 26 years with Belinda Earl being appointed as Style Director in a set of changes to the management team.
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