On 20th July 2012
Libor scandal: Central banks to consider reforms
Libor scandal: Central banks to consider reforms
Sir Mervyn King has proposed that central bank governors and regulators
should discuss possible reform of Libor at a meeting in September. The Bank of England governor told fellow central bankers in a letter
that it was "very clear that radical reforms of the Libor system are
needed".[http://www.bbc.co.uk/news/business-18898112]
On 06th July 2012
China's central bank cuts interest rates in growth move
The Chinese central bank has cut its benchmark interest rates for the
second time in two months, in a bid to arrest slowing economic growth.Benchmark lending rates will be cut from 6.31% to 6%, while deposit rates will fall from 3.25% to 3%. The rate cuts will come into force on Friday and closely follow on from the last cuts made on 7 June.(http://www.bbc.co.uk/news/business-18723170)
ECB cuts eurozone rates to record low of 0.75%
The European Central Bank (ECB) has reduced its key interest rate from 1% to 0.75%, a record low for the eurozone. The move comes as the eurozone economy continues to be weak. The ECB also cut its deposit rate, from 0.25% to zero.The cuts coincide with action from other major central banks on
Thursday, with the Bank of England adding another £50bn in stimulus
money and the Bank of China cutting its key interest rates.(http://www.bbc.co.uk/news/business-18722911)
On 04th July 2012
Manchester United seeks $100m New York stock sale
Manchester United has applied to list on the US stock market in a share sale aimed at raising $100m (£64m).In documents filed with the Securities and Exchange Commission, the
Premier League giant said it was listing on the New York Stock Exchange.The club had earlier explored the possibility of a $1bn floatation on the Singapore stock market.(http://www.bbc.co.uk/news/business-18699885)
On 22nd June 2012
Moody's downgrades 15 major banks
On 20th June 2012
Federal Reserve cuts forecast for US economic growth
On 22nd June 2012
Moody's downgrades 15 major banks
Credit ratings agency Moody's has downgraded 15 global banks and financial institutions.
The UK banks downgraded were Royal Bank of Scotland, Barclays and HSBC.
Lloyds also had its rating cut by Moody's in a separate announcement.In the US, Bank of America and Citigroup were among those marked down.BBC business editor Robert Peston said banks were concerned the
downgrades may make it harder for them to borrow money, but their shares
rose on Friday.(http://www.bbc.co.uk/news/world-18542691)
Federal Reserve cuts forecast for US economic growth
Bernanke says most members of the central bank's monetary policy
committee have marked down their economic forecasts for the US. The
Federal Reserve has cut its forecast for economic growth in 2012 from
2.9% to 2.4%It has also predicted a central unemployment rate of up to
8.2%, having forecast up to 8% on 25 April. (http://www.bbc.co.uk/news/business-18527347)
UK unemployment falls by 51,000
UK unemployment falls by 51,000
Unemployment in the UK fell by 51,000 to 2.61 million in the three months to April, official figures have shown.The jobless rate fell to 8.2%, the Office for National Statistics (ONS) said.But the claimant count - the number of people claiming Jobseeker's
Allowance - increased by 8,100 in May compared with April, to 1.60
million.(http://www.bbc.co.uk/news/business-18518286)
On 19th June 2012
Brics nations to increase contribution to IMF resources
Fitch downgrades India's outlook to 'negative'
On 15th June 2012
Spain's borrowing costs at fresh high after Moody's cut
Brics nations to increase contribution to IMF resources
The Brics economies have said they will increase their contribution to the International Monetary Fund (IMF).Brics refers to Brazil, Russia, India, China and South Africa, five of the fastest growing emerging economies in the world.The move comes as the IMF has been looking to boost its finances to help prevent any future financial crisis.(http://www.bbc.co.uk/news/business-18501198)
Ratings agency Fitch has cut its outlook for the Indian economy to
negative, saying the country's growth faces "heightened risks".Fitch warned India's growth potential "will gradually deteriorate if further structural reforms are not hastened".(http://www.bbc.co.uk/news/business-18501201)
On 15th June 2012
Spain's borrowing costs at fresh high after Moody's cut
Spain's borrowing costs have risen to another euro-era record, with lenders demanding a higher interest rate.The yield on benchmark 10-year bonds hit 7% in early trade, a level
which many analysts believe is unsustainable in the long term. It later
fell back slightly.(http://www.bbc.co.uk/news/business-18438044)
On 13th June 2012
World Bank: Developing nations face weak growth
On 13th June 2012
World Bank: Developing nations face weak growth
Developing nations should brace themselves for weak growth and "tougher times", the World Bank has warned.It said that there may be "a long period of volatility in the global economy" as the eurozone debt crisis escalates. The bank forecast that developing economies will grow by 5.3% this year, down from 6.1% in 2011.(http://www.bbc.co.uk/news/business-18419643)
On 8th June 2012
Spain downgraded as bailout estimates mount
On 7th June 2012
Bank of England considers interest rates
Ancient Greek solution for debt crisis
Spain downgraded as bailout estimates mount
Spain's credit rating has been downgraded as estimates on the size of the bailout it needs begin to mount up. Fitch cut its rating on Spanish government debt by three notches to
"BBB", a sign it thinks Spain's ability to honour its debts has
weakened.(http://www.bbc.co.uk/news/business-18349439)
On 7th June 2012
Bank of England considers interest rates
Bank of England policymakers will meet on Thursday to decide whether to
change interest rates or to pump in more money through quantitative
easing (QE).The majority of economists do not expect the Bank's Monetary Policy Committee (MPC) to alter policy.(http://www.bbc.co.uk/news/business-18345348)
Ancient Greek solution for debt crisis
What advice would the ancient Greeks provide to help modern Greeks with their current financial worries? (http://www.bbc.co.uk/news/business-18255039)
On 6th June 2012
EU unveils plan to protect taxpayers from failing banks
Proposals designed to stop taxpayers' money being used to bail out
failed banks will be unveiled by the European Commission later. They aim to ensure losses are borne by bank shareholders and creditors and minimize costs for taxpayers.(http://www.bbc.co.uk/news/business-18333240)
On 5th June 2012
The Reserve Bank of Australia has cut interest rates for the second time
in as many months amid concerns of a slowdown in Australia's economy. The bank cut its key rate to 3.5% from 3.75%. There have been concerns that Australia's resources-led boom may be hurt by falling demand due to a slowdown in global growth.(http://www.bbc.co.uk/news/business-18327769)
World growth at risk as US employment stumbles
The world’s economic outlook darkened on Friday as reports showed U.S.
employment growth slowing sharply, Chinese factory output barely growing
and European manufacturing falling deeper into malaise.In a shock that sent global equity markets into a dive, the U.S. economy
added just 69,000 jobs in May, less than half what analysts expected
and well below what is seen as needed to keep the jobless rate moving
lower. Readings for the prior two months were also revised down, while
the unemployment rate rose for the first time in almost a year, to 8.2
percent. WASHINGTON/LONDON (Reuters) (http://www.ft.lk/2012/06/05/world-growth-at-risk-as-us-employment-stumbles/)
George Soros says three months to save the euro
George Soros says three months to save the euro
Billionaire investor George Soros has warned European leaders they have a "three-month window" to save the euro.He said he believed Greece would elect a government willing to abide by
loan conditions imposed by the EU in this month's elections.But he said the German economy would begin to weaken in the autumn,
making it much harder for Chancellor Angela Merkel to provide further
support.(http://www.bbc.co.uk/news/business-18320881)
On 1st June 2012
US economic growth slower than thought in first quarter
The US economy grew at an annualised 1.9% in the first three months of 2012, less than the 2.2% first thought.The slower growth rate - which was in line with forecasts - followed a modest downward revision in consumer spending. A rise in the growth in imports also accounted for the weaker outlook.The department said that after-tax corporate profits fell by 4.1%, the biggest fall since the last three months of 2008.(http://www.bbc.co.uk/news/business-18283901)
Spain denies 'senseless' IMF bailout rumours
Spain denies 'senseless' IMF bailout rumours
Spain's economy minister has dismissed talk of it seeking a bailout from the International Monetary Fund (IMF) as "senseless".And the IMF denied that Spain had asked to discuss rescue loans.There were rumours that Spain had already gone to the IMF, after the
Spanish deputy prime minister went to meet the IMF's managing director
Christine Lagarde.(http://www.bbc.co.uk/news/business-18276691)
On 31st May 2012
Rush for havens as euro fears rise
US benchmark borrowing costs plunged to levels last seen in 1946 and
those for Germany and the UK hit all-time lows as investors took fright
at what they see as a disjointed policy response to the debt crisis in
Spain and Italy.In a striking sign of the flight to haven assets, German two-year bond
yields fell to zero for the first time, below the equivalent rate for
Japan, meaning investors are willing to lend to Berlin for no return.(http://edition.cnn.com/2012/05/30/business/euro-crisis-haven/index.html?hpt=ibu_c2)
On 30th May 2012
Eurozone: ECB says no countries ready to join
The European Central Bank (ECB) has said that none of the eight countries that are supposed to join the euro are ready yet.The verdict comes amid growing fears over the future of the currency itself amid the worst crisis it has faced.It said Bulgaria, the Czech Republic, Latvia, Lithuania, Hungary, Poland, Romania and Sweden are not yet ready to join the 17 nations that use the euro.(http://www.bbc.co.uk/news/business-18268062)
South Korea's current account surplus has almost halved in April after
exports of computer and phone chips and oil products slowed.The surplus was $1.78bn (£1.1bn) in April, down from a revised $2.97bn in March.(http://www.bbc.co.uk/news/business-18260141)
On 29th May 2012
On 29th May 2012
Spanish savings banks agree merger as debt crisis bites
Three Spanish savings banks - Ibercaja, Liberbank and Caja3 - have
approved a merger to strengthen their weakened balance sheets.The merged bank would create the country's seventh biggest lender, with 120bn euros (£96bn; $151bn) in assets.(http://www.bbc.co.uk/news/business-18246886)
China and Japan to start direct yen-yuan trade in June
China will allow direct trading of the yuan and the Japanese yen, in a
move aimed at promoting trade between Asia's two biggest economies.This means the two countries will not be using the US dollar as an intermediary.(http://www.bbc.co.uk/news/business-18245909)
On 28th May 2012
Lloyd's 'has plans for euro collapse'
On 25th May 2012
Thailand exports fall in April as global demand slows
European business activity falls to near three-year low
On 28th May 2012
Lloyd's 'has plans for euro collapse'
The insurance market Lloyd's of London is preparing contingency plans
for the possibility of the euro collapsing, its chief executive has
said.With Greece facing new elections in June and anti-bailout feelings high,
there are fears Athens may be forced to exit the eurozone.(http://www.bbc.co.uk/news/business-18226128)
Thailand exports fall in April as global demand slows
Thailand has reported a surprise fall in its exports for April because
of falling demand from key markets such as Europe and the US.Shipments fell 3.7% from a year earlier. Many analysts had forecast an increase of more than 3%.(http://www.bbc.co.uk/news/business-18203209)
European business activity falls to near three-year low
Activity at European businesses hit a near three-year low in May, according to a survey by Markit.Its index, based on a survey of purchasing managers in the manufacturing
and service sector, fell to 45.9 in May, a 35-month low.(http://www.bbc.co.uk/news/business-18186972)
On 24th May 2012
EU wants Greece to stay in eurozone, says Van Rompuy
Britain’s Aviva may exit Sri Lanka, South Korea: report
British insurer Aviva plc, plans to sell-off its Sri Lankan and South
Korean businesses, as part of a broader retreat from sub-scale Asian
markets, a report said Thursday, valuing the deal at around 150 million
dollars. Aviva, Britain's second-biggest insurer, announced plans last week to
sell underperforming businesses globally, a strategy aimed in part at
raising money to protect against its euro zone exposure, which is bigger
than that of its rivals, Reuters news wire reported.
(http://www.lbo.lk/fullstory.php?nid=1831962078)
On 24th May 2012
EU wants Greece to stay in eurozone, says Van Rompuy
European Council President Herman Van Rompuy: "We want Greece to remain in the euro area". EU leaders want Greece to remain in the eurozone but to "respect its
commitments", European Council President Herman Van Rompuy has said.(http://www.bbc.co.uk/news/world-europe-18185662)
EU summit: Merkel challenged on growth strategy
Hewlett-Packard to cut 27,000 jobs by the end of 2014
EU summit: Merkel challenged on growth strategy
EU leaders are continuing summit talks in Brussels with Germany
resisting pressure to launch eurobonds as a way to ease the eurozone
crisis.Germany's Chancellor Angela Merkel said the bonds, pooling eurozone
debt, would violate EU treaties and would "not contribute to
kick-starting growth".(http://www.bbc.co.uk/news/world-europe-18173054)
Hewlett-Packard to cut 27,000 jobs by the end of 2014
Hewlett-Packard, the world's largest maker of personal computers, is to cut 27,000 jobs by end of 2014.HP said in a statement that the money would be reinvested into the company. The move was part of a "productivity initiative designed to simplify
business processes" and comes as rival products such as the iPad tablet
computer eat into HP's sales.(http://www.bbc.co.uk/news/business-18184930)
On 23rd May 2012
Japan exports rise less-than-forecast in April
On 23rd May 2012
Japan exports rise less-than-forecast in April
Japan's exports rose less-than-forecast in April hurt by a drop in shipments to China and Western Europe.Exports rose by 7.9% from a year earlier. Most analysts had forecast growth of close to 12%.Shipments to China, Japan's biggest trading partner and Western Europe, one of its key markets, fell by more than 7%.(http://www.bbc.co.uk/news/business-18170502)
On 22nd May 2012
IMF tells UK to consider rate cut to boost growthThe International Monetary Fund (IMF) has said the UK's continuing economic weakness means authorities should consider more quantitative easing (QE) and even cutting interest rates.Its annual look at the UK economy endorsed the government's deficit cutting plan, saying it was essential. But it said if growth failed to pick up, the government would have to consider delaying cuts.The body also stressed the risks to the UK of the eurozone crisis.(http://www.bbc.co.uk/news/business-18158226)
Eurozone biggest threat to global outlook, OECD says
IMF tells UK to consider rate cut to boost growthThe International Monetary Fund (IMF) has said the UK's continuing economic weakness means authorities should consider more quantitative easing (QE) and even cutting interest rates.Its annual look at the UK economy endorsed the government's deficit cutting plan, saying it was essential. But it said if growth failed to pick up, the government would have to consider delaying cuts.The body also stressed the risks to the UK of the eurozone crisis.(http://www.bbc.co.uk/news/business-18158226)
Eurozone biggest threat to global outlook, OECD says
The eurozone crisis is the single biggest threat to the global economy, according to the Organisation for Economic Co-operation and Development.The economy of the 17 nations that use the euro will shrink 0.1% this
year, before rebounding to 0.9% growth next year, the OECD predicts.By contrast, the US economy will expand by 2.4% this year and 2.6% in 2013.(http://www.bbc.co.uk/news/business-18157781)
US senate approves bill to tighten Iran sanctions
The US Senate has approved a bill to tighten sanctions against Iran in a bid to force Tehran to abandon its nuclear programme. The new sanctions will target Iran's Revolutionary Guard and investigate its role in the export of oil from the country."Today the US Senate put Iranian leaders on notice that they must halt all uranium enrichment activities or face another round of economic sanctions," Republican senator Mark Kirk, a co-author of the bill, said in a statement. (http://www.bbc.co.uk/news/business-18155819)
On 21st May 2012Facebook shares close 11% below flotation price
Shares in Facebook closed well below the price at which they were floated amid doubts that the newly-listed company can live up to expectations.The shares debuted on the Nasdaq stock exchange at $38 each on Friday, but ended 11% down on Monday.(http://www.bbc.co.uk/news/business-18141990)
Alibaba will buyback half of Yahoo stake
On 18th May 2012
Alibaba will buyback half of Yahoo stake
US internet company Yahoo said it has reached a deal to sell part of its stake in the Chinese e-commerce firm Alibaba Group.Alibaba will buy back half the 40% stake owned by Yahoo, following months of negotiations.The deal will raise about $7.1bn (£4.5bn) for Yahoo, which has been losing ground to rival Google and Facebook in online advertising.The agreement also allows Alibaba to consider an initial public offering.(http://www.bbc.co.uk/news/business-18141064)
On 18th May 2012
Spanish banks have credit ratings cut by Moody's
On 17th May 2012
Facebook sets share price in $100bn flotation
Ratings agency Moody's has cut the credit ratings of 16 Spanish banks, a further blow to a country that is struggling to deal with the bad debts of its banking sector. It also cut the debt rating on Santander UK, a subsidiary of the Spanish banking giant.It comes after shares in struggling lender Bankia fell another 14%. They have almost halved in value this month.(http://www.bbc.co.uk/news/business-18100049)
On 17th May 2012
Facebook sets share price in $100bn flotation
Facebook has priced its shares ahead of one of the most eagerly-anticipated share flotations in recent stock market history.The social network said on Thursday that it valued shares at $38 (£24) each, and that its shares would begin trading in New York on Friday.At this price the eight-year-old firm would be worth $104bn (£66bn).(http://www.bbc.co.uk/news/business-18105608)
Indian rupee hits record low India’s rupee hit a record low against the dollar on Wednesday and stocks fell nearly two percent, as uncertainty over the eurozone debt crisis and weak domestic indicators hit Asia’s third-largest economy.The Indian unit fell to 54.43 rupees to the dollar in early afternoon, breaching its previous intraday lifetime low of 54.30 struck on December 15.(http://www.dailynews.lk/2012/05/17/bus04.asp)
Spain borrowing costs set to rise amid Greece fears
Spain's borrowing costs look set to spike on Thursday when the country's treasury sells up to 2.5bn euros (£2bn; $3.2bn) of three- and four-year sovereign bonds.It could pay buyers about 5% on the longest bond - up from just over 4% at its last auction two weeks ago.(http://www.bbc.co.uk/news/business-18099670)
Bank governor warns of eurozone crisis 'storm'
The Bank of England has cut its growth forecast for this year to 0.8% from 1.2%, saying the eurozone "storm" is still the main threat to UK recovery.The eurozone was "tearing itself apart" and the UK would not be "unscathed", said its governor Sir Mervyn King.(http://www.bbc.co.uk/news/business-18084700)
Facebook boosts number of shares on offer by 25%
Facebook says it will sell 25% more shares than first planned in its flotation in response to strong demand.The move comes one day after the social networking giant said it would raise the price of the shares by 21% to between $34-$38 a share.(http://www.bbc.co.uk/news/business-18086426)
