EUROZONE BOND INVESTORS ACCUSED OF OVERREACTING
Investors in Eurozone bond markets stand accused of letting “animal spirits” affect their judgment on the risk of a European debt default, creating a situation where financial markets could force weaker countries into excessive budget cutting. A senior official at the Organisation for Economic Co-operation and Development criticised the behaviour of some investors that has led to sharp swings in the yields on government bonds issued by Greece, Ireland, Portugal and Spain.
HOMESCHEME’S END LEAVES £400M BILL
The termination of government support for homebuyers has left taxpayers holding £400m of mortgage debt considered too high risk to be taken on by banks.
EU CLAIMS VICTORY IN AIRLINE EMISSIONS WRANGLE
A new global aviation deal will weaken the hand of US airlines to resist inclusion in Europe’s emissions trading system, the European Union’s transport chief has said. “The ETS is valid, and [the Americans] will come under it like everyone else,” said Siim Kallas, the EU transport commissioner, claiming a diplomatic victory in a long-running dispute between the EU and US over how to curb airline greenhouse gas emissions.
KLEINWORT BENSON NAMES CHIEF
Kleinwort Benson has hired a top executive from on of its rivals ina management shake-up that is part of efforts to rebuild its 200-year-old brand. Sally Tennant, chief executive of the UK arm of Swiss private bank Lombard Odier Darier Hentsch, will join Kleinwort Benson early next year as chief executive, the bank will announce today. Kleinwort hopes to strengthen its private banking arm.
TRADE SUMMIT EXPOSES FRICTION AS LEADERS “PUT RECOVERY AT RISK”
The world is shifting into a “dangerous” phase of unilateralism in currency and trade relations, the world’s leading banks have warned after a fractious summit of ministers in Washington. Josef Ackermann, chairman of the Institute of International Finance and chief executive of Deutsche Bank, said that some leaders were pursuing narrow national or regional interests that could damage a “fragile” world recovery.
THERE’S MORE THAN A STORM BREWING AT SEA...
One of the world’s biggest brewers is considering building large floating breweries. SABMiller, which owns such brands as Pilsner Urquell, Grolsch and Peroni Nastro Azzurro, is looking into the concept of ship-borne breweries.
The Daily Telegraph
AFRICA IS SAVING LIVES BY TURNING MOBILE PHONES INTO HOSPITALS
Mobile phone manufacturers, networks and software developers have joined forces with the United Nations to place the mobiles at the heart of a multi-million pound drive to tackle HIV/AIDS, malaria and deaths during childbirth.
CHILEAN MINERS DRAW UP CONTRACT TO SHARE PROCEEDS
The 33 trapped Chilean miners have moved to stop any individual from profiting at the expense of the group, drawing up a legal contract to share the proceeds from the story of their ordeal. The men have called in a lawyer to draw up a contract ensuring they will equally profit from the lucrative media deals they expect to secure for sharing the story of their two month survival in the hope that they never have to work again.
THE WALL STREET JOURNAL
NEWS FOR NEWS MAKERS
CONSTELLATION ENERGY NUCLEAR PROJECT SNAGS
Constellation Energy Group has pulled out of a government program essential to its plans to build a new nuclear reactor in Maryland, all but killing the project and further straining relations with its French partner, Electricité de France. The Baltimore power and utility company said it won’t move forward with an application for a federal loan guarantee, finding the government’s terms unworkable.
STEERING FAULT PROMPTS MERCEDES RECALL
Mercedes-Benz said it is recalling about 85,000 of its cars because of potential steering problems. The German luxury-car maker told US federal regulators that the steering systems in the cars “may fail due to the loss of power steering fluid”.