Eurozone in deep slump with plunging consumer confidence September 20, 2012 THE EUROZONE recession showed signs of deepening further in September as manufacturing and services activity slumped, and consumer confidence fell again, according to surveys out yesterday. Markit’s purchasing managers’ index (PMI) for the currency area fell to a 39-month low of 45.9 and down from 46.3 in August, showing the economy contracted at an accelerating [...]
Spain’s banks safer than feared September 20, 2012 SPAIN is set to decide how much it needs to borrow from the Eurozone to recapitalise its troubled banking sector, with BBVA boss Francisco Gonzalez yesterday predicting it will come in well below the maximum offered by the currency union. The chairman of Spain’s second largest lender said he expects the independent stress test by [...]
Greek talks over spending cuts thwarted by internal bickering September 20, 2012 GREEK politicians were at loggerheads yesterday over government spending cuts required to appease the struggling Eurozone country’s international bailout providers. Amid the squabbling, Prime Minister Antonis Samaras’s government is attempting to find agreement on €12bn worth of cuts – both internally, and with the troika of the European Union, European Central Bank (ECB) and International [...]
ECB policymaker opposed to QE September 20, 2012 ■ The Eurozone’s economic problems do not call for the same sort of quantitative easing programmes that central banks in the US or Japan have adopted, senior European Central Bank (ECB) official Benoit Coeure said yesterday. “There are currently no clear signs of deflation fears that would justify QE,” Coeure said. “The notion that central banks [...]
Italy slashes its growth forecast September 20, 2012 ■ Italy’s recession this year will be far steeper than previously expected, Mario Monti’s government said yesterday, sharply hiking its budget deficit and debt forecasts despite the relatively strong austerity measures adopted. The government forecast that GDP would shrink this year by 2.4 per cent, twice as much as the previous projection of a 1.2 [...]
ECB headquarters to cost €1.2bn September 20, 2012 ■ The European Central Bank (ECB) admitted yesterday that the cost of building its new headquarters will come in at €200m more than expected. The central bank’s new skyscraper, which will soar 185 metres into the Frankfurt sky, was estimated to cost €850m in 2005. But yesterday the ECB admitted to another €200m in costs, [...]
Lonmin miners return to work as woman dies September 20, 2012 LONMIN miners returned to work at troubled Marikana yesterday, as it was confirmed that a woman died after allegedly being shot in the knee with a rubber bullet last weekend. It is understood that the woman, who died on Wednesday, was shot by police last weekend at Marikana. It brings the total death toll at [...]
German insurer Talanx revives its on-off flotation proposals September 20, 2012 GERMAN insurer Talanx has revived plans for a stock market flotation, returning with less ambitious expectations just a week after renouncing a move to list when potential investors baulked at the price it wanted for its shares. The flotation of up to 29m new shares in a price range of between €17.30 (£13.83) and €20.30, [...]
Salamander welcomes drill rig September 20, 2012 ■ South East Asia-focused Salamander Energy yesterday announced the Atwood Mako rig had arrived and started drilling on the firm’s B8/38 licence in the Gulf of Thailand. The rig will first be used to complete a development drilling programme, after which FTSE 250-listed Salamander will use it to explore two new prospects in the Greater [...]
Xcite Energy shares plummet September 20, 2012 ■ Xcite Energy yesterday closed 18.39 per cent down at 106.5p despite the AIM-listed firm announcing the successful completion of a flow test on its Bentley field in the North Sea. Pre-production well test results exceeded expectations, and the well produced around 147,000 barrels of oil. Mike van Dulken, head of research at Accendo Markets, [...]
