Concerns that Greece and other struggling European nations may not be able to repay their debts are focusing investor attention on another big worry: Economies across the Continent may have used complex financial transactions—sometimes in secret—to hide the true size of their debts and deficits. Continue reading »
SEOUL, Feb 22 (Reuters) – Seoul shares rose on Monday, poised to snap a two-session losing streak, helped by rises in financials such as KB Financial (105560.KS) and shipbuilders including Daewoo Shipbuilding (042660.KS).
The Korea Composite Stock Price Index (KOSPI) was up 2.16 percent to 1,628.32 points as of 0113 GMT. Continue reading »
WASHINGTON (Reuters) – New documents raised fresh questions about whether Toyota Motor Corp stalled a U.S. regulatory response to red flags about its vehicle safety as the company prepares to defend itself at congressional hearings this week.
Toyota’s President Akio Toyoda testifies before U.S. lawmakers this week in an effort to contain a safety crisis that threatens the reputation and continued success of the automaker in the market that made it a global powerhouse. Continue reading »
LUFTHANSA pilots have begun a four-day strike in a bitter dispute over job guarantees, grounding a predicted two-thirds of its 800 daily flights and causing chaos at German airports.
The German flag carrier, already reeling from years of upheaval in the global airline sector, has estimated that its biggest walkout in nine years will cost it around €65 million ($98.43 million).
Worst hit will be Lufthansa’s Frankfurt hub, Europe’s third biggest airport, and Munich. Also affected was Lufthansa Cargo, one of the world’s biggest freight carriers, and its low-cost subsidiary Germanwings. Continue reading »
BRUSSELS (Reuters) – European leaders struck a deal to provide financial aid to Greece on Thursday, in an unprecedented move to stave off a broader crisis in the 16-nation bloc that shares the euro single currency.
The details of the package were not expected to be finalized until early next week, when EU finance ministers meet, but the bloc’s leaders suggested it could include some form of loans to Greece to help it service its debt and avoid a damaging default.
As they announced the deal, EU leaders also urged Athens to make deep cuts to its budget deficit to restore confidence in its economy, and the broader euro zone, and prevent its fiscal crisis from spilling over to other high-debt states like Portugal and Spain. Continue reading »
LONDON (Reuters) – European shares were higher at midday on Thursday, on track for a fourth day of gains, after European Union President Herman Van Rompuy said a deal had been reached on a rescue package for debt-stricken Greece.
At 1204 GMT(7:04 a.m. EST) the pan-European FTSEurofirst 300 index was up 0.6 percent at 993.08 points. The index is down 5 percent this year after gaining nearly 26 percent in 2009.
The market got support following comments by Rompuy, who said that several key euro zone officials had reached a deal to help Greece in its debt crisis. Continue reading »
Feb. 11 (Bloomberg) — European leaders ordered Greece to get the bloc’s highest budget deficit under control and said they were prepared to take “determined” action to staunch the worst crisis in the euro currency’s 11-year history.
The agreement brokered by German Chancellor Angela Merkel, Greek Prime Minister George Papandreou, and European Central Bank President Jean-Claude Trichet, stopped short of offering concrete measures to help Greece handle a debt load that exceeds its annual economic output. Greek bonds rose and the euro fell after the deal was announced before a European Union summit. Continue reading »
The European Commission (EC) today backed Greece’s plan to reduce its budget deficit but also began proceedings against the country for allegedly reporting faulty statistics.
While the EC has approved Greece’s proposal, it said the country must make further adjustments and its progress by mid March with a timetable for the implementation of its austerity programme. Continue reading »
European and American stock markets plunged yesterday as investors took fright over the difficulties in debt-ridden countries such as Greece and Portugal and fears mounted over the health of the world’s biggest economy.
There were concerns that Greece may not meet its tough budget plans as workers started the first in a wave of strikes, prompting worries that Spain, Portugal and the Irish Republic may also struggle to cut their soaring debts. In a sign of the scale of the problems, a gauge of the perceived credit risk of Western European nations overtook that of the most stable US companies for the first time. Continue reading »
HONG KONG (MarketWatch) — Hong Kong shares opened to a sea of red ink on Friday, with banks and resources stocks suffering sharp losses after a sell-off on Wall Street and amid worries about sovereign debt in Europe. The Hang Seng Index lost 2.8% down at 19,766.28 and the Hang Seng China Enterprises Index shed 3.4% at 11,216.38. Hong Kong Electric Holdings Ltd. /quotes/comstock/22h!e:6 (HK:6 43.05, +0.10, +0.23%) /quotes/comstock/11i!hgkgy (HGKG.Y 5.48, -0.04, -0.72%) was the only Hang Seng Index constituent in the positive, rising 0.4%. Heavyweight HSBC Holdings Plc. /quotes/comstock/22h!e:5 (HK:5 81.00, -2.85, -3.40%) /quotes/comstock/13*!hbc/quotes/nls/hbc (HBC 51.63, -0.16, -0.31%) sank 3.8%, with Aluminum Corp. of China Ltd. /quotes/comstock/22h!e:2600 (HK:2600 7.41, -0.46, -5.84%) /quotes/comstock/13*!ach/quotes/nls/ach (ACH 24.02, -0.01, -0.04%) slumping 6% and China Shenhua Energy Co. Ltd. /quotes/comstock/22h!e:1088 (HK:1088 31.35, -1.55, -4.71%) /quotes/comstock/11i!csua.y (CSUA.Y 41.40, -1.55, -3.61%) dropping 4.7%. China’s Shanghai Composite gave up 2% to 2,934.06. MarketWatch
