Economy Today News

Lessons from the Rock for Europe’s banks

admin — Sun, 27 May 2012 14:07:49 +0000

LONDON (Reuters) – In November 2010, rumors swirled through financial markets that Spanish bank BBVA was suffering a run on its deposits. The share price fell before excitable traders realized they had made a mistake. In fact the bank was holding a “fun run” in Madrid and customers had lined up outside its branches to get their T-shirts. In a jittery market, talk spread quickly and few things worry bank investors and customers more than talk of a run. Nervous times have returned to the euro zone, and customers are worrying again about whether their savings are safe. …

Goldman may break up sale of Swedish oil group: paper

admin — Sun, 27 May 2012 13:52:12 +0000

LONDON (Reuters) – Goldman Sachs is considering selling off Swedish oil group Svenska Petroleum Exploration in chunks, the Independent on Sunday reported. The UK newspaper said on Sunday that most potential bidders, including the UK's BP and Shell , were not interested in the whole group, which is owned by Saudi billionaire Mohammed Hussein al-Amoud. It cited an industry source as saying that bidders, including private equity firms keen on cashing in on the growing African oil and gas market, had expressed interest in individual countries and regions. …

Maaden signs $1.5 billion aluminum refinery contract

admin — Sun, 27 May 2012 13:45:44 +0000

JEDDAH (Reuters) – Saudi Arabian Mining Company (Maaden) has awarded a $1.5 billion contract to South Korea’s Hyundai Engineering & Construction Co. to build an aluminum refinery in the kingdom, a bourse statement said on Sunday. The refinery, to be constructed in the Eastern Province, will have an annual production capacity of 1.8 million metric tons of smelter-grade alumina and is scheduled to be completed by the end of 2014, the statement to Saudi Arabia’s stock exchange said. …

Spain’s Bankia treats $29B state aid as investment

admin — Sun, 27 May 2012 13:35:45 +0000

The president of troubled Spanish lender Bankia says the €23.5 billion ($29.5 billion) in state aid it will receive in the country's biggest-ever bank bailout will be treated as an investment to make profit for the Spanish government and not as a loan.

China to encourage private capital in banking industry

admin — Sun, 27 May 2012 11:20:17 +0000

BEIJING (Reuters) – China will give private capital the same entry standards to the banking industry as other capital, state media said on Sunday, as the government makes its hardest push in a decade to court private investors by welcoming them into a handful of sectors. Private companies would be allowed to buy into banks through private stock placements, new share subscriptions, equity transfers, and mergers and acquisitions, the official China Daily said, citing the China Banking Regulatory Commission. …

Spain region, Greek exit warnings rattle euro zone

admin — Sun, 27 May 2012 10:55:10 +0000

(Reuters) – Central banks and companies risk making a grave error if they do not brace for a possible Greek exit from the euro zone, Belgium's foreign minister said on Friday, rattling markets already alarmed by Spain's deteriorating finances. Greek elections are scheduled for June 17 and could hasten the country's departure from the currency club should a government intent on ripping up the country's bailout program result. Contrasting findings of opinion polls on Friday showed the outcome is too tight to call. …

China enters new era of services expansion with Singapore CPG buy

admin — Sun, 27 May 2012 10:36:57 +0000

BEIJING (Reuters) – China broadened its overseas investment strategy into the services industry on Sunday, with the country’s top state-owned design and management purchasing a Singapore design firm. China’s “going out” policy has led to a number of overseas acquisitions in the past decade, primarily in the natural resources and equipment sectors, as the nation draws on its stockpile of foreign reserves to obtain much-needed raw materials. Having invested heavily in “hardware,” Beijing is now encouraging the upgrade of the nation’s “software” or technical skills. …

Senator asks airlines to drop seat fee for kids

admin — Sun, 27 May 2012 10:22:44 +0000

Sen. Charles Schumer is urging airlines to allow families with young children to sit together without paying extra.

Ukraine corporate raids stifle foreign investment

admin — Sun, 27 May 2012 10:21:24 +0000

Yuri Leshchinsky spent more than a decade transforming an ailing Soviet-era factory into a leading candy maker. When a board meeting drew him to the plant from his New York home, he was in for a shock: Black-clad security guards armed with rubber batons were there to meet him, blocking his way.

BOE’S Dale says expects euro zone uncertainty set to continue

admin — Sun, 27 May 2012 10:02:40 +0000

LONDON (Reuters) – Uncertainty in the euro zone will continue for the next few years, acting as a drag on the UK economy, Bank of England policy maker Spencer Dale was quoted as saying in a newspaper on Sunday. Britain is not a member of the single currency bloc, but it depends on the economic area for 40 percent of exports. The UK economy slipped back into recession in the first quarter of this year and data continues to show Britons have been shopping much less and factories are getting fewer orders. …