SPAIN’S BORROWING COSTS SOAR
Spain’s borrowing costs rose above 5.5 per cent for the first time since January as investors fretted about another escalation of the eurozone crisis amid signs of further economic weakening even in Germany. Investors pushed Spain’s benchmark 10-year bond yields up 14 basis points to as high as 5.53 per cent.
US RECOVERY PUSHES DOWN GOLD
Investors are losing their enthusiasm for gold as signs of improvement in the US economy tempt them away. Interest in gold surged in the past ten years, as prices rose from $253 in 2001 to a peak of nearly $2,000 last year. But it has dropped 9 per cent since late February and on Thursday hitting a 10-week low of $1,627.68.
OBAMA ATTACKS ENERGY CRITICS
Barack Obama has hit back at his energy critics over sharply rising petrol costs, amid fears that economic recovery and his re-election prospects are being undermined by a rise in oil prices. “Anyone who says that we’re somehow suppressing domestic oil production isn’t paying attention,” Mr Obama said.
STAR ARCHITECT FOR GOLDMAN HQ
Goldman Sachs underlined the scale of its ambition for its new European headquarters in London, by holding talks with three high-profile architect practices, including Foster + Partners, the practice behind the Gherkin and Wembley Stadium.
FEARS GROW FOR VAUXHALL AS GM MULLS CLOSURES
Storm clouds are gathering over the Vauxhall car plant at Ellesmere Port after reports from Germany indicated that General Motors is intent on closing two European automotive factories. The reports suggest that GM will propose the closure of two car plants as it aims to reduce production in Europe by 30 per cent.
INVESTORS TURN ON KEYSTONE
Gulf Keystone was on a collision course with some of its biggest institutional investors last night after agreeing to pay executives and employees a £26M bonus if the oil explorer is taken over.
The Daily Telegraph
GOLDMAN SACHS IN HUNT FOR 'MUPPET' EMAIL
Goldman Sachs has started scanning emails for the term “muppet” as the Wall Street bank investigates allegations made by a former employee last week. Greg Smith last week used the New York Times to publish a resignation letter in which he alleged managing directors referred to clients as “muppets” on internal email.
RATING AGENCIES TOLD TO IMPROVE
Credit rating agencies Moody’s, Standard & Poor’s and Fitch have been told to improve internal processes or face possible enforcement from the European Securities and Markets Authority.
THE WALL STREET JOURNAL
NORWAY'S OIL INDUSTRY SNAPS UP SWEDISH WORKERS
Firms in Norway are seeing a chance to snap up staff from the declining Swedish auto industry. Saab’s bankruptcy and cutbacks by Volvo have released thousands of workers into the labor market in Western Sweden, workers Norway now hopes to lure to its booming petroleum industry.
VW TO HIRE 800 WORKERS IN US
Volkswagen said it will hire 800 staff at an American factory it opened last year, reflecting anticipated demand for a new car built there. The hiring will help the German auto maker increase production of its Passat midsize sedan at the Chattanooga plant.