UBS profits slump on weak business
Profits UBS have slumped by 76% in its latest quarterly results.
Net income for the last three months of 2011 were 393m Swiss francs ($430m; £270m), down from 1.7bn francs a year ago and well short of expectations.
Business levels fell both at its key wealth management unit, as well as at its struggling investment bank.
As the eurozone debt crisis rumbles on, the Swiss bank warned that business in the coming three months was also likely to disappoint.
"Traditional improvements in first quarter activity levels and trading volumes may fail to materialise fully, which would weigh on overall results for the coming quarter, most notably in the investment bank," UBS said as it announced its fourth quarter results.
Profits for the full year of 4.2bn francs were down 44% from 2010.
Bonus pool
UBS has never fully recovered from the financial crisis, when it had to be rescued by the Swiss government.
The bank took heavy losses during the 2007-09 financial crisis and recession, reporting a total loss of 39bn francs during the period.
Last year, it lost a further 2bn francs thanks to a rogue trader.
The latest quarter fell well short of its post-crisis average profit of 1.5bn francs, which is itself half the 3bn franc profits the bank typically reported each quarter in the years leading up to the financial crisis.
The Swiss authorities have ordered UBS to massively increase its capital ratio - its risk buffer against future possible losses.
The bank duly announced an increase in its "Basel II core tier 1 ratio" - that is the value of its highest-quality capital as a percentage of its assets, based on the old and soon-to-be-replaced international methodology - from 18.4% to 19.7%.
The firm has also been downsizing its London-based investment bank, following severe criticism of its risk-management practices by Swiss regulators.
The investment bank reported a 256m franc loss for the quarter, mainly due to weak client business during tough trading conditions last autumn when markets feared Italy might be pushed into default.
In response, the head of the investment banking business, Carsten Kengeter, agreed to forego his bonus.
The bonus pool for employees of the bank as a whole has been cut by 40%, and that of the investment bank by 60%.
US Senators Warn Egypt of ‘Disastrous Rupture’ in Relations
Three United States Senators are warning of a “disastrous rupture” in relations with Egypt if the case of 19 Americans charged with illegal fundraising is not resolved soon.
Republicans John McCain and Kelly Ayotte and Independent Joe Lieberman said Tuesday that congressional support for Egypt, including financial aid, is in jeopardy.
The senators say those inside the Egyptian government who oppose relations with the United States are exacerbating tensions and inflaming public opinion. But they say there are people of good will in both countries who are working hard to resolve the crisis.
Egypt says 43 activists, including 19 Americans, who were working with non-governmental organizations will be put on trial on charges of illegally finding pro-democracy groups. One of the Americans is Sam LaHood, son of Transportation Secretary Ray LaHood.
The State Department says the Americans and others were working to support Egyptian elections. It says they are completely non-partisan and were not raising money to support any individual candidate.
Egypt is in the midst of a presidential election aimed at replacing the interim military government with a democratically-elected civilian administration. Parliamentary elections were held last month.
Thousands of Egyptians have been demanding a faster transition to civilian rule, including violent street protests. Egypt has been under a military government since President Hosni Mubarak fled last year.
Santorum Leading in Minnesota Caucus, Missouri Primary
U.S. Republican presidential hopeful Rick Santorum appears poised for a campaign boost with a strong showing in two of Tuesday's nominating caucuses.
The former senator from Pennsylvania has a solid initial lead in Minnesota, earning 43 percent of the vote with about six percent of precincts reporting. And his early lead in Missouri is even greater at 54 percent with nearly a quarter of the votes counted.
Mitt Romney, who had been hoping to solidify his front-runner status in Tuesday's contests, is more than 20 points behind Santorum in Missouri and lagging in third place in Minnesota.
The former Massachusetts governor may be helped by voters in Colorado, however, where Tuesday's caucus results have not yet been posted. Romney won the state by a large margin when he ran unsuccessfully for the Republican presidential nomination in 2008 and was expected to win again Tuesday.
A total of 70 delegates are up for grabs in the Colorado and Minnesota, although they will be awarded later at district and state conventions. Missouri's primary is non-binding, with no delegates at stake.
To be selected to face Mr. Obama, a Republican needs to have the support of 1,144 delegates at the Republican nominating convention in Florida in August. To date, Romney has a reported 101 committed delegates, Gingrich 32, Santorum 17 and Paul 9.
Despite Romney's wins in the primaries in Florida, Nevada, and New Hampshire, a new poll Tuesday indicated Republican support for him nationwide has fallen during the past month. In the Reuters/Ipsos telephone survey conducted this month, 29 percent of Republican voters backed Romney, down one percent from a survey in early January. The latest survey showed Texas Congressman Ron Paul's support growing by 5 percent to 21 percent, putting him in second place ahead of former House of Representatives speaker Newt Gingrich . Santorum also saw a 5 percent rise in support to land close behind Gingrich .
The Reuters news agency says the results suggest Romney still has many doubters among Republicans.
Gingrich, once considered Romney's top rival for the nomination, held a large lead in the Colorado polls late last year. But he has since lost ground in that state and was focusing his attention Tuesday on Ohio, as the state begins early voting ahead of its primary on March 6. Gingrich has vowed to fight all the way to the August nominating convention.
Meanwhile, Paul holds an election event in Minnesota Tuesday night.
In a hypothetical election match-up, an ABC News-Washington Post poll indicates President Obama would beat Romney. The survey shows Mr. Obama ahead 51 percent to 45 percent among registered voters . The poll found that half of those surveyed approve of President Obama's job performance and believe he deserves a second term.
The Reuters/Ipsos poll released Tuesday found Mr. Obama's approval rating is up one percent from the January survey to reach 48 percent, but his disapproval rating is the same at 49 percent.
California Court Rules Voter-Approved Ban on Gay Marriage Unconstitutional
A California appeals court has ruled that a voter-approved ban on same-sex marriage is unconstitutional.
The judges said in their ruling Tuesday the ban, known as Proposition 8, “serves no purpose” other than to lessen the “status and human dignity” of homosexuals in the state. The dissenting judge in the 2-to-1 decision said he thought the government could have a “legitimate reason” to restrict same-sex couples from marrying.
Gay marriage supporters cheered the ruling, while Proposition 8's proponents said they would appeal it, either to a higher California Court or directly to the U.S. Supreme Court.
But some legal analysts said Tuesday the Supreme Court may choose not to weigh in, because Tuesday's ruling only applies to California's specific circumstances. The judges said the Proposition 8 was illegitimate because it took away a right that had already been granted.
California Senator Dianne Feinstein told VOA she thought the ruling, though narrow, was indicative of the broader issue, that no laws can change the U.S. constitution's guarantee of equal protection under the law.
“On page 79 of the decision, there is one sentence: 'By using their initiative power to target a minority group, and withdraw a right it possessed without a legitimate reason for doing so, the people of California violated the Equal Protection clause. We hold Proposition 8 to be unconstitutional'. Now, what this means is that, in a very narrow sense, the court is saying that an initiative cannot change the guarantee that the constitution gives with respect to equal protection. So, it is a narrow decision, but it is really dispositive of the question.”
She said the federal law restricting gay marriage, known as the Defense of Marriage Act, or DOMA, should likewise be overturned.
“My belief is that DOMA should fall on the same basis that Proposition 8 fell. But in the event it does not, or will not, we have produced a bill that would essentially repeal DOMA.”
Proposition 8 passed in 2008 with 52 percent of the vote, just months after the state had approved gay marriages.
Homosexual couples will still be prevented from marrying in California until the appeals process is complete.
The appeals court Tuesday also ruled that the judge who declared the ban unconstitutional in 2010 did not have a conflict of interest. Lawyers for the ban's supporters argued the judge should have been disqualified or recused himself because his long-term same-sex relationship meant he could have had a personal interest in allowing marriages between homosexual couples.
Several U.S. states and the District of Columbia allow gay couples to marry.
Britain Marks Charles Dickens’ 200th Birthday
Britain's Prince Charles has led ceremonies marking the 200th anniversary of the birth of Charles Dickens, one of English literature's most famous and celebrated novelists.
The prince laid a wreath at Dickens' grave Tuesday at Westminster Abbey's Poets' Corner, where the writer was buried in 1870 — alongside Geoffrey Chaucer, Tennyson, Samuel Johnson and other literary greats.
The writer's descendants attended the ceremony. His great-grandson Mark Dickens said the writer was very committed to social reform.
“The fact that we're celebrating the 200th anniversary of the birth of Charles Dickens is an opportunity to be able to look back at what he did in his works and in particular with his social reform because that was very, very important to him throughout his life.''
Prince Charles and his wife Camilla also toured the Dickens Museum in central London where they cut a book-shaped as cake and listened to a reading by Actress Gillian Anderson from an old Dickens book. Anderson recently played Miss Haversham in the British TV drama “Great Expectations” based on Dickens' novel. She praised Dickens for describing the human condition in England of his time.
“He's obviously very well talented in many different ways, but he was so specific about the human condition of the time. And his descriptions of characters and of the state of being at that time in England was, you know, is part of our historical record of what it was like back then.''
Dickens' difficult early life led him to campaign for social reform in Victorian England through his writing. His novels, including Oliver Twist, Great Expectations and A Tale of Two Cities, have been read by millions of people worldwide. In championing the problems of the poor and underprivileged, his stories about social inequality, greed and corrupt politicians remain relevant today.
More events are being held in the southern city of Portsmouth, where Dickens was born on February 7, 1812.
Hezbollah’s Nasrallah Admits Receiving Material Support from Iran
Hezbollah leader Hassan Nasrallah has acknowledged for the first time that the Lebanese militant group receives financial and material support from Iran, a longtime ally.
He made the admission in a video-link speech to supporters in the Lebanese capital, Beirut. He said Hezbollah previously only confirmed receiving political and moral support from Iran to avoid embarrassing the Islamic state.
The United States considers Hezbollah to be a terrorist organization and has long accused Iran of arming the group by smuggling weapons through Syria, another Hezbollah supporter. The militant group began fighting Israel in 1982, when Israeli forces invaded Lebanon to drive out Palestinian militants who attacked the Jewish state.
Israel withdrew from southern Lebanon in 2000, but Hezbollah vowed to keep pursuing its goal of eliminating the Jewish state. In 2006, Hezbollah and Israel fought a month-long war that killed about 1,200 Lebanese and 160 Israelis.
Some observers have said Hezbollah may strike Israel again if Israeli forces take military action against Iran's nuclear facilities. Israel accuses Iran of secretly developing nuclear weapons to try to destroy the Jewish state and refuses to rule out an attack to stop the program. Iran says its nuclear activities are peaceful.
Nasrallah said in the event of an Israeli strike on Iran, the Iranian government “will not ask Hezbollah to do anything.” He said his group will make its own decision about how to react.
Conrad Murray, James DeBarge on Same Cell Block
Michael Jackson’s former doctor and former brother-in-law are reportedly on the same cell block in Los Angeles.
The King of Pop’s personal physician Conrad Murray is said to be neighbors at Los Angeles County Men’s Jail with singer James DeBarge, who was famously married to Janet Jackson for a year in the 1980s.
Murray has been behind bars since he was convicted of involuntary manslaughter last year for administering the fatal dose of propofol that killed Michael in 2009.
TMZ is now reporting that Murray has been locked up in the same block as DeBarge, who is currently jailed on assault and drug charges and is being housed in the Administrative Segregation along with Murray.
DeBarge’s lawyer, Spencer Vodnoy, tells the website his client is “really upset” by the coincidence as he was previously close to the King of Pop.
Chronicle beats The Woman in Black at US box office
Chronicle, a film about teenagers with super powers, has beaten Daniel Radcliffe thriller The Woman in Black to top the North American film chart.
The films took $22m (£14m) and $21m (£13.3m) respectively on their opening weekends, according to early estimates.
As a result, both ended up in the all-time top 10 for Super Bowl weekend - usually a quiet time for US cinemas.
Last week's number one, The Grey, starring Liam Neeson, dropped to three, with takings of $9.5m (£6m).
Sci-fi film Chronicle, made by first-time director Josh Trank, tells the story of three teenage boys who use their telekinetic powers in mischievous ways.
It is shot in a faux-documentary "found footage" style made popular by films like The Blair Witch Project and Super 8.
'Younger demographic'
Analysts said that both Chronicle and The Woman in Black found their main audience with cinemagoers in their teens and early 20s.
"Chronicle was designed and made for a younger demographic," said 20th Century Fox head of distribution Chris Aronson.
"That demographic has been the one that's been missing from theatres."
He said there had been "a lot of pre-release chatter on social media that made a connection with this audience".
The Woman In Black is an old-fashioned ghost story, based on Susan Hill's 1983 novel.
Radcliffe plays a widowed lawyer, haunted by apparitions at the home of a dead client.
CBS Films head of distribution Steven Friedlander said the movie had "all the elements for making a hit".
"In retrospect, you look at Daniel Radcliffe, one of the biggest stars and one of the hardest-working kids in show business, you have a very well-made PG-13 scary movie," he said.
Hammer Films - the British studio which became synonymous with the horror genre in the 1950s - said The Woman in Black had scored the production company's biggest North American opening.
"I'm thrilled that a British ghost story made with a British cast, crew and investment is playing so well with American audiences," director James Watkins said.
Drama Big Miracle, based on the true story of a whale rescue, was in fourth place on its opening weekend, taking $8.5m (£5.4m).
Underworld: Awakening, starring British actress Kate Beckinsale, dropped three places to number five, with $5.6m (£3.6m).
Cee Lo’s $10 Grand Strip Club Adventure
If you were watching the Super Bowl half-time show and “The Voice” after the game, you know Cee Lo Green was in Indianapolis. And from what we’re hearing, Mr. Green had himself a jolly, jolly time.
Apparently he reunited with his dudes from Goodie Mob and took the party to an Indy strip club. TMZ says the crew treated the stripper ladies to a five-figure thunderstorm.
The gents started partying at the club around 1:00 AM Thursday morning.
Sources inside the establishment say Cee Lo requested lap dances from “the baddest b*tches in the club” … and the group rewarded their good behavior by making it rain with roughly $10,000 in cash.
Supposedly there were other famous people in the club at the time, including some NFL players, but they couldn’t hang in the rain making department and had to bow down to Team Cee Lo, who easily commanded the girls’ attention.
Bow Wow ordered to be Arrested on Sight
It looks like it’s time for Bow Wow to face the music.
A judge in Georgia has ordered he be arrested and held in custody until produces documents and information to the other side, according to TMZ.
Bow Wow was ordered by a Tennessee court back in 2009 to pay almost $100,000 to a tour bus company for allegedly not paying his bill. The company then took the case to Georgia to try and get the court where Bow Wow lives to enforce the judgment.
He was ordered to produce documents in his home state regarding the lawsuit, which he never did. As a result, the tour company filed a motion to have the rapper held in contempt.
Finally back in October, the judge granted the motion and ordered Bow Wow be arrested and held until he produces the necessary documents the tour bus company asked for.
Bow Wow has not been taken into custody so far, or responded to the lawsuit.
TMZ says Calls to Bow Wow’s reps were not returned.
