GlaxoSmithKline, the British drugs giant that is
Europe's biggest pharmaceutical firm, said today that some of its senior
executives appeared to have violated Chinese law, after Chinese officials
alleged the company had engaged in bribery and tax crimes.
Abbas Hussain, GSK's London-based president of emerging markets and Asia
Pacific, at the weekend met with Chinese officials according to a statement
Monday. It added: "Certain senior executives of GSK China who know our systems
well, appear to have acted outside of our processes and controls which breaches
Chinese law. We have zero tolerance for any behavior of this nature."
statement also said Hussain that Glaxo supports China's action against
corruption in the market and will fully cooperate with authorities in an ongoing
The statement added that Glaxo will review its business model and cut its prices
for Chinese consumers, ensuring its medicines are more affordable to Chinese
Four executives of GSK
(China) Investment Co., Ltd. are in custody including Liang Hong, vice president
and operations manager.
In an interview last week with Xinhua, the official news agency, Liang, who
supervised about 3,000 medical representatives across China to deal with
hospitals and doctors, admitted that he had been "in contact with" senior
government officials and medical experts.
He said he was authorised to approve an annual budget of up to hundreds of
millions of yuan.
The company's finance manager in China,
Steve Nechelput, a British national, has been prevented from leaving the
Big Pharma firms subject of fraud inquiries in US, China and
Economic View: Annual house price growth
returns; Dermot O'Leary, chief economist of Goodbody,
comments - - "There have been a number of signs over recent months that after a
record fall in prices since 2007, the Irish housing market has entered a
stabilisation phase. In this regard, official price data to be released tomorrow
may show the first annual rise in prices nationally since January 2008.
There are numerous reasons for this improvement,
but the key one is the lack of new supply coming on to the market. This lack of
supply can be explained by: (i) the collapse of new construction and; (ii)
negative equity, tracker mortgages and an absence of repossessions. In terms of
the former, new construction of homes has fallen from an annual total of 90,000
units to below 8,000 this year. Judging by the commencements data so far this
year, it will be a long road to get back to a “normal” level of building
activity; in the first five months of 2013, just 1,665 units were commenced,
with three-quarters of these being one-off units. In other words, the
commencement of larger developments is still close to zero.
Given this reality, it is likely that this
supply-led price stabilisation will continue nationally, with important regional
differences depending on the local supply/demand fundamentals. Along with
mortgage credit availability, another important ingredient for a housing
recovery is confidence. The return of headlines of prices growing again will
surely help in this regard."
Irish Budget 2014: Former IMF official says austerity should be
put on ice
Banks: Legal title problems on repossessed properties; Eamonn Hughes and
Colm Foley comment - - "Press reports this morning (Irish Times) indicate that
the Law Society has written to the Irish Banking Federation and the Irish
Mortgage Council highlighting that borrowers are struggling to take out
mortgages on repossessed properties because contracts are so restrictive. Unless
the situation is resolved, the Society has indicated it will advise solicitors
not to act for purchasers of repossessed properties where clients need
The Law Society highlights that some of the
contracts its conveyancing committee has seen have been “restrictive in the
extreme” and it appears that liquidators and receivers appointed by the banks
are “issuing blanket refusals to provide information as is reasonable within
their possession or procurement”. It adds that banks may not be aware that
restrictive contracts are being issued on their behalf. Where a solicitor fails
to get the necessary information, it typically qualifies the certificate of
title given to the institution providing the loan, with such qualifications
often ruling out a mortgage.
The notice from the Law Society highlights that
further tweaks to the mortgage process will be required in order to expedite
repossessions. However, with the matter now highlighted, we would be of the view
that moves will be made to deal with the issue, although this issue points to a
further delay in the process that is taking much longer than previously
UK public sector borrowing shows little improvement: Conall Mac Coille,
chief economist at Davy, comments - - "DAVY VIEW: Stock indices were little
changed on Friday. The Euro Stoxx 50 fell 0.1% while the S&P 500rose 0.2%. Poor
results from tech stocks held back sentiment. Today, US existing home sales and
the Chicago Fed national activity index are the key releases. Friday’s UK public
sector borrowing figures showed little progress in reducing the deficit below
£120bn. However, some encouraging tax revenue figures suggest that the fledgling
UK recovery may have had some positive impact.
Stock markets were little changed on Friday. The Euro Stoxx 50 fell 0.1% while
the S&P 500 rose 0.2%. European shares recorded a fourth week of gains, but were
flat on Friday as poorer-than-expected results from both Microsoft and Google
held back sentiment. The key question facing markets over the past month has
been how quickly the Fed will taper back its $85bn monthly asset purchases.
Today sees US existing home sales numbers for June, expected to rise to 5.25m in
June (a fresh high going back to 2009) and also the Chicago Fed’s national
Public finances data released on Friday showed UK government borrowing at £8.5bn
in June, down sharply from £11.9bn in 2012. However, the fall mainly reflected
£3.9bn of profits from the Bank of England’s asset purchases facility (APF).
That is the net interest income the bank earns on its gilt purchases over its
cost of funding of 0.5%. Excluding the APF, income borrowing was £12.4bn,
signalling that there has been little progress in getting the deficit below the
That said, there are some signs that the fledgling economic recovery is
beginning to feed into more buoyant tax revenues. VAT receipts were up 2.2% and
income taxes up 9.3% in the first three months of the Budget year 2013/14,
compared with the same period in 2012. However, current expenditure grew by 4.6%
in the first quarter of the Budget year, well above the 2.2% assumed in the
March Budget. So despite some positive signs from revenue growth, George Osborne
still has a lot of work to do to get public sector borrowing down."
The MSCI Asia Pacific Index
rose 0.5% Monday.
Japan's Nikkei 225 advanced
0.47%; China's Shanghai Composite added 0.51%; Korea's Kospi index gained 0.48%;
Australia's S&P/ASX 200 rose 0.60% in Mumbai, the Bombay Stock Exchange the S&P
BSE India Sensex Index climbed 0.11%.
In Europe, the
Dow Jones Stoxx Europe 600 is up 0.03% in mid-afternoon trading Monday.
In Dublin, the
ISEQ is up 0.06%.
Irish Share Prices
Key Index Performance Statistics
AIB Daily Report
Bank of Ireland Daily Report
The euro is
trading at $1.3188 and at £0.8600.
For live currency updates, check the
right-hand column of the
Finfacts home page.
The US dollar
fell to $1.6038 per euro on Tuesday, July 15, 2008 - an-all time record.
Baltic Dry Index,
a measure of shipping costs for dry commodities,
hit an all-time High of 11,771 on the 21st of May, 2008.
From that time it reversed and on the 5th of December, 2008 it hit a low of 663
- - close to a 1986 low.
On Thursday, July 15, 2010, the index fell for
the 35th straight session, by 9 points, or 0.537%, to 1,700 points,
On Friday, the
BDI fell 8 points or 0.70% to 1,138.
Global rebalancing — the
tanker scrapyard index?
Crude oil for August 2013 delivery is
currently trading on the
Chicago York Mercantile Exchange (CME/Nymex)
at $108.05 up 1 cent from Friday's close. In London, Brent for August delivery
is trading on the
International Commodities Exchange at
Sea benchmark accounts for two-thirds of the global market.
Finfacts, July, 15, 2013:
US West Texas Intermediate oil benchmark jumps in
July - - margin between WTI and Brent
Gold spot price
The spot price
of an oz of gold is trading on the
CME in Chicago at $1,332.00, up $28.70 from Fridays closing.
Gold had hit a
record high of $1,921.05 a troy ounce on Sept 06, 2011.
out our subscription service,
, at a low annual charge of €25.