Citigroup has downgraded its recommendation on Poland's top bank, PKO BP, from “buy/ medium risk” to “hold/medium risk.” The downgrade follows weak second quarter results.The target price has increased from 38 zloty to 41 zloty, despite the downgrade, as Citigroup is now using 2008 financial forecasts, instead of 2007, as the basis for their equity valuation. PKO BP was trading 0.54% down at 36.5 zloty at 11 am GMT.
Another 170 French troops arrived on Friday at the south Lebanese coastal town of Naqura to reinforce UN peacekeepers along the border with Israel. The troops arrived shortly before 8.30 am (5.30 GMT) on board the navy ship Foudre, which was also transporting trucks, bulldozers, dump trucks, generators and water purification equipment. The soldiers, specialists in de-mining and reconstruction, will be under the command of the United Nations Interim Force in Lebanon (UNIFIL).
Venezuelan president Hugo Chavez will sign two contracts to expand exports of oil to China. The contracts will be signed with the Chinese companies CNPC (China National Petroleum Corporation) and China Petroleum and Chemical Corporation. The aim is to increase oil exports to China from 150,000 barrels per day to one million barrels per day within five years.
China Construction Bank announced on yesterday that it has finalised its acquisition of 100% of Bank of America (Asia), a wholly owned subsidiary of Bank of America, for 9.7 billion Hong Kong dollars.