News in brief: Industrial output to shrink, says CBI, Santander mulls float of US unit, Murdoch sells News Corp stock

Labourers work at a steel factory in Dalian, Liaoning province July 13, 2012. China's economy grew 7.6 percent in the second quarter of 2012 from a year earlier, its slowest pace in three years. REUTERS/China Daily (CHINA - Tags: BUSINESS COMMODITIES INDUSTRIAL TPX IMAGES OF THE DAY) CHINA OUT. NO COMMERCIAL OR EDITORIAL SALES IN CHINA

22 November 2012

Manufacturers sounded the alarm over prospects for the economy today as the CBI’s latest survey warned the sector expects of shrinking output during the next three months.

A balance of 9% are braced for declining volumes over the next quarter — the weakest result this year, according to the CBI. Head of economic analysis Anna Leach said: “Business confidence continues to be undermined by uncertainty over events in Europe and the fast approaching US fiscal cliff.”

Santander mulls float of US unit

Spanish bank Santander today said that it is considering a flotation of its US car loans business as it continues to shore up its balance sheet against the weakness in its domestic economy. The flotation could be worth around $6 billion (£4 billion) based on a loan book of $18 billion. Last month Santander raised $4 billion by selling shares in its Mexican operations. Plans to float Santander UK have been put on hold.

Murdoch sells News Corp stock

Rupert Murdoch has sold News Corporation stock worth more than $10 million (£6 million) but he has lost none of his power because these were “Class A” non-voting shares. Murdoch and his family still own 40% of the “Class B” voting shares, despite them representing only around 12% of News Corp’s $56 billion stock market value. Forbes estimates Murdoch’s personal wealth at $9.4 billion.