Milan, Italy (GenevaLunch) – Urgent cleanup work is underway on the Po, Italy’s longest river and a major tributary that is important to industry and agriculture, after a massive amount of fuel and heating oil spilled into it, near Milan. Police are saying a “criminal act” lies behind the spill, with eight storage tanks tampered with at a closed storage facility that belongs to Lombarda Petroli SpA.
The fuel initially went into the Lambro River. Estimates of the amount of fuel spilled vary wildly, with the lowest talking about hundreds of thousands of litres, but a state of emergency has been declared in Lombardy as concerns grow over the potential impact on natural reserves, wildlife and crops.
Links to other sites: Bloomberg/BW, Corriere della Sera (Ita), National Geographic feature on the Po
Zurich, Switzerland (GenevaLunch) – The Swiss National Bank expects to see a “large profit” of CHF10 billion for 2009, thanks to the rapid rise in the price of gold and currency fluctuations during the year. The valuation of the gold holdings of the central bank rose by CHF7.3 billion during the year, with the price of gold moving between about $800 and $1,200 an ounce (chart).
The bank’s foreign currency positions brought in another CHF2b.
The profits are shared in part with the federal and cantonal governments, some CHF2.5b.
Zurich, Switzerland (GenevaLunch) – ABB, Switzerland’s largest engineering group, says that positive developments will allow it to post a $1 billion profit when its official figures are announced 29 October. The more upbeat business environment has allowed the company to reduce its provisions against charges in the third quarter, boosting its profits. At the end of 2008, ABB announced that compliance, tax and restructuring costs would require it to reduce its forecast profits.
Tower Office, head of the BIS in Basel, Switzerland
Basel, Switzerland (GenevaLunch) – Central bank heads from 27 leading countries meeting in Basel agreed Sunday to follow recommendations made Saturday 5 September by finance officials, who met in London, to impose tougher capital requirements on banks. The new measures are designed to avoid a repeat of the collapse of much of the global banking system at the end of 2008.
