Bank chairman

Swiss banking giant UBS plunged to its first-ever full-year net loss on Thursday after losing 18 billion dollars in the US subprime mortgage crisis.

Bank chairman Marcel Rohner said the losses were "unacceptable".

UBS revealed a net loss of 4.4 billion Swiss francs (4.0 billion dollars, 2.7 billion euros) in 2007, compared to a profit of 12.3 billion Swiss francs in 2006.

"We are obliged to confirm these unacceptable results," Rohner told a telephone conference on the figures.

"While most of our businesses continued to be very profitable, the sudden and serious deterioration in the US housing market, in combination with our large exposure in sub-prime mortgage-related securities and derivatives, has driven us into loss for the year," he said.

Analysts said the losses were in line with expectations as UBS had already said two weeks ago it would post a full year loss of around four billion francs.

Helvea analyst Peter Thorne warned that UBS is less attractive to investors than its rival Credit Suisse, which on Tuesday announced full year profits of 8.5 billion Swiss francs after limiting its subprime exposure.

UBS's balance sheet "remains a worry for investors," the London-based analyst said.

"Our preference for betting on a recovery in financials is with Credit Suisse where exposures are lower and known, and management has for more credibility," Thorne added .

In the fourth quarter alone, UBS lost 12.45 billion Swiss francs against a profit of 3.4 billion francs in the same period a year earlier.

"Last year was one of the most difficult in our history," Rohner said.

In the fourth quarter, writedowns linked to the US housing market amounted to 13.7 billion dollars.

For the year as a whole, its exposure was 18.1 billion dollars, making UBS the third-worst hit bank after Wall Street giants Merrill Lynch, with 19.4 billion dollars, and Citigroup 21.1 billion dollars.

UBS said it expected 2008 to be "another difficult year" given plunging stock market values and growing fears of a recession in the United States.

However, the bank's chief financial officer Marco Suter said there were unlikely to be any more "big surprises" with regard to subprime writedowns.

"We are not expecting any new major surprises and we are continuing to reduce (subprime exposure) in January and February," he told reporters .

"We were clearly over-exposed in the high-risk US housing sector and ill prepared" for the financial crisis, Suter admitted.

UBS acknowledged that part of its market risk control framework proved inadequate as the subprime crisis gathered pace in the second half of 2007 but said it has taken steps to improve its oversight systems.

In December, UBS turned to Singapore's state invesment arm (GIC) and an unnamed Middle Eastern investor to help restore its balance sheet.

GIC said it would inject 11 billion Swiss francs into UBS, giving it a stake of around nine percent and thus making it the largest single shareholder, while the Middle Eastern investor was to put up two billion Swiss francs.

Some shareholders have voiced unhappiness with the plans to raise funds from foreign, state-controlled investment bodies, fearing the terms of the deal could put existing investors at a disadvantage.

UBS' share price has taken a pummelling in recent weeks and Thursday was no exception .

The bank's shares were down 7.76 percent at 37.68 Swiss francs in late afternoon trade on the Zurich stock exchange, bucking an otherwise positive market trend.

Apple's iPhone

Pablo Gonzalez, a Prada shoe-wearing cell phone connoisseur who jumps from one new handset to the next, is ready to ditch his $1,000 touch-screen cell phone for Apple's iPhone when it becomes available in June.

Apple's competitors predict that even as the gadget will likely boost the company's fortunes, it will have limited market share and fall short of the successes Apple has seen with its iPod portable music player. They contend some of the phone's much-touted features - such as its touch screen, movement sensors and music player - are not innovative or new.

EIG Mutual Holding Company

EIG Mutual Holding Company (to be renamed Employers Holdings, Inc.) EIG today announced that its initial public offering of 26,750,000 shares of common stock priced at $17.00 per share. All of the shares of common stock are being sold by the Company. The Company has granted the underwriters an option to purchase up to 4,012,500 shares of common stock to cover over-allotments, if any.

Siliconware Precision Industries

TAICHUNG, Taiwan, Jan 31 /Xinhua-PRNewswire-FirstCall/ -- Siliconware Precision Industries Co., Ltd. ("SPIL" or the "Company") (TAIEX: 2325; Nasdaq: SPIL) today announced that its sales revenues for 4Q 2006 was NT$ 14,666 million, representing 0.4% sequential growth QoQ and 1.0% growth compared to the same period of year 2005.

SPIL reported a net income of NT$ 3,877 million in 4Q 2006, compared with a net income of NT$ 3,136 million in 3Q 2006 and a net income of NT$ 3,625 million in 4Q 2005.

SPIL reported its sales revenues for the twelve-month period ended December 31, 2006 were NT$ 56,354 million, up 30.8% compared to the same period of year 2005.

For the twelve-month period ended December 31, 2006 net income was NT$ 13,329 million, compared with a net income of NT$ 8,244 million for the same period of year 2005.

Teletouch President Interviewed on Market News First Bob & Rich Morning Show

On Jan. 29, 2007, T. A. "Kip" Hyde, Jr., the President & COO of Teletouch Communications, Inc. (PINK SHEETS: TLLE) and CEO of Hawk Electronics joined the Market News First team for an exclusive interview about the company's Cingular(R) Wireless and related products and services. If you missed the Live IPTV broadcast of this interview Monday, you can still catch the entire podcast on MN1.com's "Downloads and Podcasts."

During the interview, Hyde broadly touched on the company's long history in the wireless industry, trusted brand identity, its current position with shareholders and various technology trends direct from their recent review of the International Consumer Electronics Show (CES) in Las Vegas. Hawk Electronics is a leading independent retailer of Cingular wireless services in the Dallas/Fort Worth area and is also the leading provider of cellular services to local government agencies throughout North Texas. The segment discussed how Hawk Electronics differs from normal resellers and agents by using their own billing platform and local call center (located just outside Fort Worth), providing customized billing applications for their largely consumer, B2B and B2G subscriber base. Hyde discussed how their call center supports approximately 90,000 cellular subscribers who've purchased their wireless plans from the nearly thirty Hawk Electronics retail stores and authorized Hawk agents, plus its own direct sales force.

Again, to access the podcast in its entirety, go to www.MN1.com to listen to the interview, or download the podcast at http://www.mn1.com/mp3/tlle012907.mp3 and www.Teletouch.com.

About Teletouch Communications

For over 40 years, Teletouch has offered a comprehensive suite of telecommunications products and services, including cellular, two-way radio communications, GPS-telemetry and wireless messaging services throughout the United States. Teletouch's wholly-owned subsidiary, Progressive Concepts, Inc. (PCI), is a leading U.S. provider of wireless cellular voice, data, and entertainment products and branded wireless services to individuals, businesses, and government agencies. PCI provides these products and services through its chain of retail stores (under the "Hawk Electronics" brand), Hawk-branded agents, a direct sales force in Texas and Arkansas, and through the Internet at www.hawkelectronics.com. PCI also operates a significant national wholesale distribution business serving smaller cellular and automotive retailers, car dealers and cellular service providers throughout the country. Teletouch's common stock is traded on the OTC Pink Sheet electronic exchange under stock symbol: TLLE. Additional information about Teletouch and Hawk Electronics can be found at: www.hawkelectronics.com and www.teletouch.com.

Solitaire Executes Letter of Intent for Option to Acquire Eldorado From Kinross

Solitaire Minerals Corp. (TSX VENTURE: SLT)(OTCBB: SREMF) is pleased to announce that it has signed a letter of intent with Kinross Gold Corporation (TSX: K)(NYSE: KGC) for an option to acquire Kinross' interests in the Eldorado Uranium Mine property at Port Radium in the Northwest Territories (the "Eldorado Property"). Included in the acquisition will be the technical library comprised of Echo Bay Mines and Eldorado Nuclear mine and exploration reports for the entire mining camp. The Eldorado Uranium Mine produced 15 million pounds of uranium and eight million ounces of silver.

The Eldorado Property, consisting of 887.36 acres, adjoins Solitaire's Mystery Island property and expands the property size to 22,717.23 acres. This project shares property boundaries with and is partly surrounded by properties owned by Alberta Star Development Corp. (TSX VENTURE: ASX). Solitaire and Alberta Star share some of the underground working of the Eldorado mine. The Eldorado Property is located at Port Radium on the east side of Great Bear Lake, Northwest Territories, and 423 miles north of the city of Yellowknife.

Nominee to head Mideast forces warns on Iraq

Admiral William Fallon, the White House choice to command US forces in the Middle East, on Tuesday warned that the US was running out of time to improve security in Iraq.

"I believe the situation in Iraq can be turned around, but time is short," Admiral Fallon told senators. "There are no guarantees."

President George W. Bush chose Admiral Fallon, head of US Pacific Command, to replace General John Abizaid, who reportedly disagreed with the White House decision to push ahead with a military "surge" in Iraq.

Separately, John Negroponte, the top US intelligence official nominated for deputy secretary of state, told senators that Iraq was at a "precarious juncture".

Mr Bush's decision to send 21,500 more troops to Iraq has found little support in Congress. But for the moment it remains unclear how tough a non-binding resolution of opposition dissident Republicans would support.

The president's plan received a boost from James Baker, former secretary of state, who urged the Senate foreign relations committee to "just give it a chance".

Mr Baker was co-author with Lee Hamilton, a former Democratic congressman, of November's Iraq Study Group report that set out 79 recommendations, many of which the president rejected. Mr Hamilton was scathing about US policy towards Iran and Syria, saying isolation was not working.

Admiral Fallon joined a line of senior military officers who have conceded since the departure of Donald Rumsfeld, former defence secretary, that the US made mistakes in Iraq.

"We probably erred in our assessment of the ability of these people to take on all of these tasks at the same time," he told the Senate armed services committee.

Carl Levin, the Democratic committee chairman, criticised the Bush administration for not giving Congress a list of the benchmarks that it wants Nouri al-Maliki, the Iraqi prime minister, to meet under the latest Baghdad security plan.

Admiral Fallon said it would not be "particularly constructive right now to tape an edict of a number of actions and give deadlines".

Senators pressed the admiral and Mr Negroponte on US intentions towards Iran following the president's adoption of a more aggressive military and rhetorical stance towards the country.

Barack Obama of Illinois told Mr Negroponte he was concerned that the US would "stumble into active hostilities with Iran without having aggressively pursued diplomatic approaches".

Virginia's Jim Webb asked again whether the White House believed it had the authority to take unilateral action against Iran, without approval from Congress, without a direct threat.

Both times, Mr Negroponte was non-committal. He repeated the administration's line that it sought a diplomatic solution to the crisis with Iran but would not enter into an unconditional dialogue with the Islamic republic.

David Satterfield, a senior State Department official, on Tuesday directly accused Iran of killing Americans in Iraq. His remarks, to the BBC, went beyond Mr Bush's accusation that Iran was "providing material support for attacks on American troops".

L'Occitane opening at Waikiki mall

As Royal Hawaiian Shopping Center continues its multimillion dollar renovation, new tenants are moving in. This weekend it will be the body care boutique L'Occitane en Provence.

A grand opening is planned for Saturday, from 10 a.m., at the store's new location, Building B, Level 1, the retail arcade atrium. Gift bags valued at $100 will sold at half price to the first 100 customers.

L'Occitane en Provence sells skincare products and fragrance products using natural ingredients from the Provence region of France.

The four-level Royal Hawaiian Shopping Center has 310,000 square feet of retail space along a three-block stretch of Kalakaua Avenue. It is owned by Kamehameha Schools.

Honda third quarter net up

TOKYO (Reuters) - Honda Motor Co. posted a smaller-than-expected rise in quarterly profit, helped by brisk sales in Europe and a weak yen that offset a dip in U.S. sales -- where Honda could not keep up with demand -- and nudged its full-year forecast higher.

The world's second-most valuable carmaker with a market worth of $72 billion, is riding demand for its popular small and fuel-efficient cars amid high energy prices -- so much so that its supply line fell short in the U.S. in recent quarters.

Honda has said the bottleneck is easing as it rejigs production in North America to build more of its hot-selling Civic cars from April. A new plant in Indiana is also slated to start next year in anticipation of further demand growth.

Like other Asian car makers, Honda is winning global buyers, and record profits, with solid products such as its CR-V crossover and Fit subcompact, while big U.S. rivals are losing customers and burning through cash as they restructure their North American operations.

Ford Motor Co. last week booked a net quarterly loss of almost $5.8 billion -- more than Honda is likely to make in the full year to end-March.

Honda, which overtook Nissan Motor Co. as Japan's No.2 automaker last year, increased its full-year net profit forecast to 560 billion yen ($4.61 billion) from a previous 555 billion yen. Market forecasts are for 567 billion yen, according to Reuters Estimates.

It kept its full-year operating profit forecast unchanged at 820 billion yen.

October-December net profit rose 8.8 percent to 144.83 billion yen ($1.19 billion), but lagged an average estimate for 153.6 billion yen in a survey of five brokers by Reuters Estimates. Operating profit was up 5.2 percent to 205.11 billion yen, below market estimates for 215 billion yen.

New report cites extensive waste in Iraq

WASHINGTON (AP) - An audit finds that tens of (m) millions of dollars in Iraq reconstruction aid has been wasted.

Among the abuses cited by investigators: scores of unaccounted-for weapons and a camp for police trainers that was never used. The facility includes an Olympic-size swimming pool.

The waste is detailed in a quarterly audit by Stuart Bowen Junior, the special inspector general for Iraq reconstruction.

The 579-page report is grim. It concludes Iraq's security situation continues to deteriorate, "hindering progress in all reconstruction sectors."

Bowen says Iraq's sectarian violence is the greatest challenge and that the (b) billions of dollars in U-S aid that has been spent on strengthening security has had limited effect.

The findings are being released Wednesday.

CW Network Faces Struggle to Find a Winning Strategy

CW Network Faces Struggle to Find a Winning Strategy
CBS Corp. and Warner Bros. launch their new television network tonight with the latest installment of the Tyra Banks' contest, "America's Next Top Model." But in the coming months, the CW must do something trickier than strut down a runway in 4-inch stilettos: It must make money.

Electrolux profit below

Electrolux profit below consensus, keeps outlook
The company, which in June spun off its outdoor products unit, listed as Husqvarna , reported a pretax profit excluding extraordinary items of 765 million Swedish crowns ($103.8 million) versus the average of forecasts in a Reuters poll of 9 analysts of 866 million crowns, up from 610 million.

Stocks rise

Stocks rise on rate view
NEW YORK (Reuters) - U.S. stocks rose on Monday in a light and short pre-holiday session as mild economic data increased optimism about the interest-rate outlook and positive news about Citigroup Inc. gave investors a reason to buy bank shares.

Bumper profits in store

Bumper profits in store for Wall St banks
Wall Street investment banks are expected to shrug off market volatility to report the second most profitable quarter in their history in the next few weeks.

Oil climbs over $73

Oil climbs over $73 on worries over Iran flows
SINGAPORE (Reuters) - Oil prices climbed over $73 on Monday after Iran hinted it might use oil production as a weapon in its nuclear dispute with the West and hitches at U.S. refineries spurred worries over fuel supplies.