Beige Book backs stimulus November 28, 2012 THE US could be in for further monetary stimulus, after the Federal Reserve’s Beige Book report on the economy, out yesterday, gave little sign of price pressures but revealed continued worries about growth. The report said manufacturers were worried about the impact of the so-called “fiscal cliff” of tax hikes and spending cuts due in [...]
Gold slides on deflation fears November 28, 2012 GOLD PRICES slid 1.5 per cent yesterday, as investors worried that the debt crisis in the Eurozone, combined with fiscal crisis in the US, could lead to deflation. Some had speculated the sharp fall, the biggest for around a month, was down to a so-called “fat finger error”, but derivatives market CME denied this claim. [...]
London rejoices as Megafon IPO defies the odds November 28, 2012 MEGAFON, the mobile telecoms group controlled by Russia’s richest man, Alisher Usmanov, became the second largest share offering in Europe this year as it raised $1.7bn (£1.06bn) yesterday in London and Moscow despite concerns which had earlier led Goldman Sachs to step aside from the deal. The deal was assisted in its final stages by [...]
Barroso unveils blueprint for restructuring of the Eurozone November 28, 2012 THE European Commission yesterday unveiled plans for a fundamental overhaul of how the Eurozone is structured, including the prospect of setting up a common budget for the single currency area and issuing joint debt in the years ahead. In a five-page document dubbed a ‘blueprint’ for creating a “deep and genuine” economic and monetary union, [...]
Spanish banks must slash jobs for bailout cash November 28, 2012 FOUR Spanish banks have agreed to downsize radically in return for a huge injection of public money, after the European Commission approved the restructuring plans yesterday. Between them the banks will receive a €40bn (£32.2bn) recapitalisation boost, but must slash jobs and shrink their balance sheets by up to 60 per cent as part of [...]
City’s bonuses safe from EU cap for now November 28, 2012 THE EUROPEAN Parliament yesterday postponed its key vote on capping bank bonuses, putting its decision back from December to March as its members (MEPs) try to agree what type of cap to consider. The delay means bonuses are safe for at least another year. MEPs had hoped to approve the cap quickly in a bid [...]
Greece names banks on key debt buy back November 28, 2012 GREECE’S debt buy back plan, a key element of the cash-strapped country’s bailout deal, will be voluntary but must succeed, finance minister Yannis Stournaras said yesterday. In his first major speech since a deal earlier this week to shave about €40bn (£32.2bn) off the country’s debt pile, Stournaras said the offer would be attractive to [...]
Italy’s Pashi ups state aid plea November 28, 2012 BANCA Monte dei Paschi di Siena, Italy’s third biggest lender, yesterday increased its request for state aid by €500m (£404m) to up to €3.9bn, citing possible capital concerns due to past financial structured transactions. In a statement Monte dei Paschi said its board had approved the issuing of special bonds to the Treasury for up [...]
Private sector loans decline November 28, 2012 BANK lending to businesses fell again in the Eurozone in October, according to data published yesterday by the European Central Bank (ECB). Despite market sentiment improving on the back of the ECB’s plans to buy the bonds of struggling governments like Spain’s, loans to the firms fell 1.8 per cent, accelerating from the 1.5 per [...]
France says has buyer for Arcelormittal site November 28, 2012 THE French government has found an industrialist willing to invest €400m in ArcelorMittal’s steelworks in northeast France, a minister said yesterday. Industry Minister Arnaud Montebourg told lawmakers that the interested party was a private investor from the steel industry. ArcelorMittal has so far said that it wants to sell the furnaces but not the entire [...]
