Costs spike at Spanish debt sale June 19, 2012 SPAIN’S short-term borrowing costs rose to their highest level since 1997 in a debt sale yesterday as investors worried the country will soon be forced to ask for international aid. The country sold €2.4bn (£1.9bn) of the 12-month T-bill at an average yield of 5.074 per cent yesterday, compared with 2.985 per cent at the [...]
Spain ministry denies that it is delaying key audit into banks June 19, 2012 SPANISH officials yesterday scrambled to downplay reports that claimed the government is delaying an audit into the country’s crisis-struck banking sector. Two audits have been expected for publication at the end of next month, yet reports yesterday suggested that the government had sought to postpone the publications until September, with the supposed purpose of requiring [...]
Construction down across Europe June 19, 2012 Construction in the Eurozone sank by 2.7 per cent in April compared to March and plummeted 6.6 per cent in the wider European Union area. The falls reversed climbs of 11.4 per cent and 10.8 per cent respectively the previous month. Despite the notable increases in March, figures from Eurostat – the official statistics office in Brussels [...]
Minister: Cyprus not doomed yet June 19, 2012 Cyprus still has options open to find urgently-needed funds to recapitalise its banks, either through the EU rescue fund or through a bilateral loan, its finance minister said yesterday. “We are optimistic we will get the financing we need to recapitalise the banks, whether that will be through a bilateral agreement, or through the mechanism, [...]
German court slams government over ESM June 19, 2012 OPPOSITION MPs in Germany won a victory over Angela Merkel’s coalition yesterday as the country’s top court ruled that the government did not sufficiently consult parliament over plans for the Eurozone’s permanent bailout scheme. Chancellor Merkel’s government hit back, however, insisting that the decision will not prevent the ratification of new laws surrounding the European [...]
FSB calls on banks to raise capital buffers June 19, 2012 BANKS should rapidly build up capital buffers to create a solid foundation for economic growth and relieve pressures on indebted sovereigns, the international Financial Stability Board (FSB) claimed in a new report last night, arguing that short-term costs of cutting lending are rapidly repaid. The FSB also told the G20 nations that more cross-border action [...]
IMF bolsters its crisis-fighting fund to $456bn June 19, 2012 THE INTERNATIONAL Monetary Fund (IMF) has bulked up its war chest to $456bn (£290bn) after 12 new countries contributed cash. Emerging powerhouse China added $43bn to the crisis-fighting reserves, while India, Russia and Mexico provided $10bn each. The UK will put in $15bn. “These resources are being made available for crisis prevention and resolution and [...]
Business morale flops in France and Germany June 19, 2012 GERMAN economic confidence suffered its sharpest shock since 1998, according to the ZEW index released yesterday, while the INSEE measure of the French business climate was also shown to have slumped. ZEW measured the expectations that 350 financial analysts had for the future, just before the Greek election, when 34.1 per cent expected the German [...]
Whitbread sees sales stirred up by Costa Coffee June 19, 2012 WHITBREAD yesterday reported a robust rise in sales on the back of a strong performance at its coffee shop chain Costa Coffee and hotel group Premier Inn, sending shares up 6.3 per cent. Underlying sales rose 4.5 per cent in the 13 weeks to 31 May, boosted by a 8.4 per cent rise in like-for-like [...]
WHY ARE COFFEE CHAINS STILL THRIVING? June 19, 2012 KAREN RAYMENT SUMITOMO It’s a mystery to me – I don’t see the point in buying coffee when I can have it in the office. When you think about it for the price of a coffee at £2.50 then you could buy a sandwich instead. ALICE FROST INSURANCE TIMES I meet my clients in coffee [...]
