Berlusconi in pensions fight October 26, 2011 ITALIAN Prime Minister Silvio Berlusconi presented European leaders with a hastily constructed package of economic reforms last night, in response to an ultimatum demanding action to boost growth and cut Italy’s huge public debt. Employment laws could be reformed and state assets palmed off to raise cash, according to a letter sent by Berlusconi to [...]
These vague plans won’t save Europe October 26, 2011 FORGET about all the nonsense, the acronyms, the double-speak and the details of last night’s communiqués from Europe’s leaders. The reality is this. A country that has too much debt and cannot repay it by raising taxes or selling assets faces three choices: it can default; try and inflate or depreciate the debt away by [...]
No agreement reached on level of private sector haircuts on Greece’s debt, warns banking body October 26, 2011 NEGOTIATIONS over the extent of the private sector’s involvement in a second financial aid package for Greece have stalled, with no agreement over any elements, the managing director of the Institute for International Finance (IIF) said late last night. ‘There has been no agreement on any Greek deal or a specific ‘haircut,’” Charles Dallara, who [...]
Draghi vows to take action as new ECB boss October 26, 2011 THE BAILOUT fund should be used immediately and the European Central Bank (ECB) will keep buying bonds, incoming boss Mario Draghi told a Rome conference yesterday. He also hinted a cut in interest rates might come soon as growth is slow. He takes the helm at the ECB on 1 November, with the first interest [...]
Merkel wins support after invoking war October 26, 2011 ANGELA Merkel invoked Europe’s war-torn history as German MPs backed her plea for an increase in the size of the single currency’s rescue fund. The German Chancellor told a packed Bundestag they must fulfil their “historic duty” by approving her negotiating role at the Brussels emergency summit, which is considering ways to boost the firepower [...]
BRICs consider options for aid and investment October 26, 2011 EMERGING giants India, Russia and Brazil ruled out contributing to the Eurozone bailouts – though Chinese leaders were yesterday said to be considering offering help. China has bought Spanish bonds in the past, and was last month courted by Italy as a potential investor. Last night the country’s leaders were said to be mulling over [...]
THE EURO CRISIS TALKS AT A GLANCE October 26, 2011 ● BAILOUT FUND Leaders have thrashed out a rough agreement to leverage the fund to increase its size from €440bn to around €1 trillion. This deal will satisfy German leader Angela Merkel, who lobbied for leveraging, but is smaller than hoped for by many in the markets. ● GREEK DEBT HAIRCUTS While no firm agreement [...]
City jobs will hit 1998 low October 26, 2011 CITY employers will shed more than 26,000 jobs this year, slashing employment back to 1998 levels, as they prepare for a renewed downturn rather than recovery, a leading think-tank warns today. Headcount at banks and finance firms is expected to drop 8.5 per cent this year to 288,225 in the biggest fall since the 2008 [...]
Cut in bad debt spurs profit at National Australia Bank October 26, 2011 THE PARENT company of Yorkshire and Clydesdale banks has increased second-half cash profit by 17 per cent as bad-debt charges fell and mortgages grew at more than three times the rate of the industry. National Australia Bank said this morning that profit was a record A$2.79bn (£1.82bn), despite doubts over the immediate health of the [...]
ST PAUL’S HOPES TO RE-OPEN TOMORROW October 26, 2011 THE DEAN of St Paul’s, the Right Rev Graeme Knowles, said he is “optimistic” the cathedral will re-open tomorrow in time for the 12.30pm Eucharist following a re-shuffle of protesters’ tents. The cathedral refused to comment on reports that Rev Canon Dr Giles Fraser, the Chancellor, had threatened to resign if the church attempts an eviction. [...]
