Pressure on rates in Eurozone eases

The eurozone economy deteriorated sharply in July, raising hopes that the European Central Bank may stay its hand in raising rates further in the coming months.

The RBS/Markit Eurozone purchasing managers' index for service companies, including banks, bars and restaurants, fell to 48.3 in July, from 49.1 in June, the lowest figure recorded for five years. Any figure under 50 indicates that the sector is contracting. The index for manufacturing dropped sharply to 47.5, from 49.2 in June.

German business confidence also collapsed in July, dropping to 97.5, from 101.2 in June, the biggest fall since the September 11 attacks in the US, figures from the Ifo institute suggest. Analysts had forecast a more modest fall to 100. The gloomy data caused the euro to slip against the dollar as expectations of more rate rises receded. (Gráinne Gilmore)

Dutch firm accused of energy futures scam

The US Commodity Futures Trading Commission has accused a Dutch trading firm, its chief executive and two other senior employees of manipulating energy futures contracts on the New York Mercantile Exchange.

Optiver Holding is accused of trying to manipulate petrol and oil prices 19 times last year. The defendants created false prices on five occasions, making profits of about &$1 million (£503,000), a complaint filed in the US District Court in New York alleges. Regulators asked a judge to impose monetary penalties, restitution and other restrictions.

Optiver executives were accused of accumulating a large position in energy futures contracts and trading them in the opposite direction just before or during the closing bell “to improperly influence and affect the price of futures contracts in a desired direction,” the complaint said. (AP)

Sun shines on B&Q

The improved summer weather has lifted some of the clouds over Kingfisher, the owner of the B&Q DIY chain, whose shares rose almost 7 per cent to 124.3p on the back of rising sales of garden furniture and barbecues. Like-for-like sales, which strip out gains from new stores, rose 0.2 per cent in Britain for the ten weeks to July 12 - the first increase for a year - against an 8.1 per cent fall in the first quarter. Total sales rose by 4.4 per cent. (Dearbáil Jordan)

B&B mortgage boost

Bradford & Bingley has securitised £2.9 billion of mortgages, easing fears about its ability to fund new mortgage business. The country's biggest buy-to-let lender, which is raising £400 million from shareholders after being hit by worse than expected bad debts, backed the £2.5 billion of triple A-rated notes and £400 million worth of subordinated notes with some of the £13 billion of mortgages held in its Aire Valley master trust. (Christine Seib)

JJB remains upbeat

JJB Sports said that its new store concept and “retro fit-outs” would help it to strengthen its trading position. Revenue at stores open for at least a year fell 1.2 per cent in the 12 weeks to July 20. Same-store sales fell 2 per cent at the company's retail outlets during the 12-week period but increased 5.9 per cent at its fitness clubs. Shares in JJB Sports edged down a quarter p to 89p. Less than ten months ago the stock was trading above 200p. (Heath Aston)

Yell shares lifted

Shares in Yell closed up 8p, or 11 per cent, at 79p after the debt-laden owner of Yellow Pages announced that it had increased earnings and cash and was trading within its banking covenants. Investors welcomed the better than expected figures for the three months to June 30 and a strong showing by its online business. The directories group's stock has fallen more than 80 per cent in the past year over fears about its debt and the advertising downturn. (Lilly Peel)

Saint-Gobain warning

Saint-Gobain, the world's biggest building materials group, said that it would cut 4,000 jobs this year, mostly in France, Britain, Spain and the United States. The French company cut its profit forecast yesterday after slower building activity in Europe pushed its half-year operating profits 4.2 per cent lower to €2.01 billion (£1.65 billion). Saint-Gobain said it expected full-year recurring operating income and adjusted net profit “close to” 2007 levels. (Reuters)

UBS accused

Andrew Cuomo, the New York attorney-general, filed a lawsuit yesterday against UBS, accusing the Swiss bank of deceptively steering customers into auction-rate securities that this year became impossible to cash out of amid the credit crunch. The suit accuses UBS of deceptively selling auction-rate securities to customers as cash equivalents. UBS said it would “vigorously defend” itself against the accusations brought by Mr Cuomo. (Reuters)

Microsoft chief goes

Kevin Johnson, a Microsoft veteran and one of the key players in the software giant's failed $47.5 billion (£23.9 billion) attempt to buy Yahoo!, is leaving as the company attempts to revitalise its flagging internet business. Mr Johnson has been with Microsoft for 16 years and became president of the group's platforms and services division in 2005. Microsoft announced that Mr Johnson's division would be split in two as part of a major reorganisation. (Lilly Peel)

SSP moves into India

SSP, the Surrey-based airport and station caterer controlled by EQT, the Swedish private equity firm, has taken its first steps into India after securing two contracts with Delhi International Airport. The first contract will involve running a Ritazza coffee shop and mobile café, a Segafredo café and an Indian snack and juice bar, while the second will consist of another Ritazza unit and two convenience stores. The contracts are worth £3 million. (Dominic Walsh)

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