QE SPECTRE LOOMS AS ECB TACKLES CRISIS
Investors yesterday warned that the European Central Bank would have to introduce quantitative easing to stave off the worst crisis in the Eurozone since it was launched 11 years ago. The ECB has resisted following the Bank of England and the US Federal Reserve in expanding the money supply by buying government bonds as it fears that it could stoke inflation.
STRAUSS-KAHN CALLS FOR EUROZONE REFORM
Eurozone nations should take a big step towards integration with a new system of cross-border budgetary co-ordination, according to the head of the International Monetary Fund. Dominique Strauss-Kahn, IMF managing director, suggested introducing short-term fiscal transfers between member states to avoid a repeat of the crisis that has shaken financial markets. The proposal would mark a move towards common economic governance in the euro area.
FULLER’S FASHION WEBSITE CLOSED DUE TO LACK OF FUNDS
An upmarket fashion website co-founded by Simon Fuller has been closed after its owner pulled the plug on funding. Fashionair was the brainchild of the former manager of the Spice Girls and Sojin Lee, a former Net-a-Porter executive. Last week staff were told that they would be made redundant after an investment review by its American parent.
The Daily Telegraph
TUI COUNTS COST OF VOLCANO CHAOS BUT SUMMER BOOKINGS IN RECOVERY
Volcanic ash from Iceland has cost holiday company TUI Travel around £90m, after the flight ban disrupted its services for 12 days last month. About 175,000 holidays had to be cancelled after the volcanic eruption caused regulators to impose a no-fly zone over all of Europe. Excluding that loss, the company is on track to meet its forecasts for 2010.
WALL STREET JOURNAL
JP MORGAN BUYS 10.2 PER CENT OF GANNETT
J.P. Morgan Chase & Co. disclosed taking a 10.2 per cent passive stake in publisher Gannett Co., making a nearly $400m(£268m) bet on the sustainability of the traditional media industry. The move appears to be a vote of confidence about a further recovery in local advertising markets, where Gannett has a significant presence.