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Goldman stops trading
Even as Reuters reports that Investment Banks are getting ready to shake hands with “fat cat” insinuation led Obama as soon as polls end, Goldman Sachs has brought down its share of trading in the business to 19% among the large global banks from a peak of 29% in June 2009 ( as reported by Christine Harper on Bloomberg TV)
David Viniar, 55, Goldman Sachs’s chief financial officer, told analysts on a conference call last month that the firm had lowered its VaR because it didn’t see opportunities to take risk as client trading dropped.
“The world is still not a very safe place,” he said.
Goldman Sachs’s lead peaked in the fourth quarter of 2009, when it had 45 percent more fixed-income trading revenue than its closest competitor, New York-based JPMorgan Chase & Co., which remained profitable throughout the credit crisis.
Since then, its advantage over the second-place bank and over the average of the seven firms has dwindled in each of the last three quarters. In the third quarter, the bank
had a 6.8 percent advantage over its nearest competitor, Charlotte, North Carolina-based Bank of America, which reported fixed-income trading revenue of $3.53 billion.
Aviation revival catches fire
The mega merger between United and Continental yielded devastatingly simple benefits for investors as both corporate independently reported
$2.12 and $2.16 in profits(earnings per share for the September quarter. Q3 was sweeter as load factors were above 80% for Continental and exceed 85% for United and as the new parent reported, Continental made revenue realisations go up by as much as 16% per seat and United 18%
WSJ quotes: The former UAL Corp. and Continental Airlines Inc. each swung to the black in their final quarters as standalone companies amid a much improved revenue environment, according toUnited Continental Holdings Inc., which reported results for both units on Thursday.
The parent of the two airlines was formed Oct. 1, creating the world’s largest carrier by traffic as the sector is benefiting from rebounding demand. The airlines will continue to fly separately for up to 18 months while they seek regulatory approval to mix planes, crews and maintenance programs.
While JetBlue increased capacity by 9% United and Continental also managed a near 4% increase. Both companies reported standalone this quarter
The new conglomerate is likely to operate with just under $10 billion in Cash, coming from profits of $387 million for United and $354 million for Continental. Their combined revenue is already north of $9 billion, United bringing in $5.39bln out of the same
Low fare provider (LCC) Ryanair in Europe also proved Low cost model detractors like us wrong upping likely profit guidence by a 5-ish %
Ryanair update (FT.com)
In the six months to September, Ryanair carried 40.1m passengers, up 10 per cent from the 36.4m it carried in the same period last year. Average fares rose by 12 per cent in the period to €44 and total revenue per passenger – including ancillary revenues – also rose 12 per cent.
For the half-year ending in September, pre-tax profit increased by 15 per cent to €483m on revenues that rose 24 per cent to €2.2bn. Earnings per share rose from 25.21 cents to 28.31 cents.
- Goldman Sachs Losing Edge in Fixed-Income Trading as Risk Falls (businessweek.com)
- Ryanair reveals half-year profits rise (independent.co.uk)
- Profits Grow At Low-Cost Airline Ryanair (news.sky.com)