LOSS AT ISRAEL'S IDB PROMPTS AUDITOR WARNING

Israeli conglomerate IDB, which controls locally based Clal Insurance, has reported a loss of ILS1.27bn ($315m) for the second quarter, prompting its auditor to issue a formal "going concern" warning. IDB lost ILS883m in the same period last year and ILS2.7bn in 2011 as a whole. In the middle of last month it was announced that Berkshire Hathaway's National Indemnity subsidiary would be buying Clal US Holdings for $221m. IDB chairman Nochi Dankner said after posting the Q2 loss that IDB was "going through difficult times; it's not easy for all of us. But I believe and am certain we will emerge from this crisis strengthened". Insurance is not the source of IDB's problems. It has been hurt by a highly competitive mobile phone sector, and by falling profits at supermarket chain Super-Sol, traditionally a strong cash generator.