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April 20, 2012

Daily news for the equipment finance sector

Industry News

OECD: Recovery of small-business lending was slower in U.S.
Countries including Canada, France and Italy outpaced the U.S. in lending to small and midsize businesses after the recession, according to a forthcoming report from the Organization for Economic Cooperation and Development. "The financial institutions in the U.S. tightened credit to small and medium-size businesses for five [quarters] longer than many other countries," said Sergio Arzeni, an economist with the OECD. The Wall Street Journal (4/18)

Bradken cuts profit forecast amid lower sales and higher costs
Bradken reduced guidance for this fiscal year to a 13% increase in profit. The maker of mining equipment previously predicted a 35% to 40% increase. The company cited a $35 million drop in sales and a $16 million increase in costs at its rail division. The Sydney Morning Herald (Australia)/Australian Associated Press (4/20)

Regional banks' Q1 data illustrate lending, investment trends
Regional banks posted first-quarter results that highlight several trends in lending. Such banks are competing for creditworthy borrowers as loan demand remains weak. Also, in this low-interest environment, the value of deposit funding is lower than in recent memory. Reuters (4/19)

Qantas selects CFM's LEAP-1A to power 78 Airbus A320neos
Qantas Airways placed a $2 billion order for CFM International's LEAP-1A engine. CFM is a joint venture between France's Snecma and GE Aviation. The order is for 78 Airbus A320neo aircraft. Star-News (Wilmington, N.C.)/Biz Picture blog (4/19)

Market Trends

Weakening indicators raise doubts about the economic recovery
Christine Lagarde, head of the International Monetary Fund, warned world leaders not to become complacent about the ability of the shaky global economic recovery to continue beyond spring. Many of the challenges that tripped up the recovery in 2010 and 2011 are back, as oil-price increases cut consumer-spending power in the U.S. and Europe's bond yields rise to troubling levels. The New York Times (tiered subscription model) (4/19), Bloomberg (4/20)

Government & Regulatory

EPA delays rules on oil- and gas-well emissions until 2015
The Environmental Protection Agency said it won't finalize requirements for capturing emissions from oil and gas wells until 2015. In the meantime, the agency will impose other measures, including flaring, to cut the release of toxic and smog-producing chemicals by 90%. The Washington Post (4/18), Bloomberg (4/18), Power Engineering (4/18)

FDIC continues estimating losses incorrectly, GAO says
Although the Federal Deposit Insurance Corp. has worked to improve estimation of losses on failed-bank deals, errors and overestimates continue, the General Accounting Office said. AmericanBanker.com (free registration) (4/19)

Fed: Banks have until 2014 to comply with Volcker rule
Banks have until July 21, 2014, to conform to the Volcker rule, the Federal Reserve said. Many banks worried based on language in the Dodd-Frank Act that they would have to comply with the rule, which is not yet final, by July this year. "Our view is that the rule will become more moderate the longer it takes to finalize, especially if regulators delay until after the election," said Jaret Seiberg, an analyst with Guggenheim Securities. The Wall Street Journal (4/19)

Tax-cut legislation for small business gains House approval
The House voted largely by party line to approve Majority Leader Eric Cantor's plan to cut small-business taxes by 20%. Democrats objected to the measure's $46 billion cost and said it would help primarily wealthy taxpayers. Both parties are staking out tax-policy positions ahead of the fall election. The Hill/Floor Action Blog (4/19)

Featured Content

ELFA Member News

AIG unit lends $105 million to U-Haul
U-Haul secured a $105 million loan from AIG Commercial Asset Finance, planning to refinance notes. Read more.

ELFA News

Foundation releases Monthly Confidence Index for April
The Equipment Leasing & Finance Foundation released the April Monthly Confidence Index for the Equipment Finance Industry. Designed to collect leadership data, the index reports a qualitative assessment of prevailing business conditions and expectations for the future as reported by key executives from the $628 billion equipment-finance sector. See more details.

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