Russia and Germany pledge closer economic ties

Russia and Germany have pledged to strengthen economic ties as Russian President Dmitry Medvedev called Europe’s largest economy Moscow’s “key partner” for the future. German Chancellor Angela Merkel said relations between the two states had taken a stride forward as she led a delegation of business leaders on a tour of Russia, China and Kazakhstan. […]

Ukraine bows to IMF demands, raises gas prices

Ukraine, bowing to pressure from the IMF ahead of a new loan deal, will take the painful step of raising gas prices for households from August, the government has announced. Prime Minister Mykola Azarov said the 50 percent price hike, an unpopular move aimed at cutting the budget deficit, was necessary to secure a new […]

Japan signals tax reform, seeks to avoid deadlock

Japan’s government has announced it will press on with tax reforms to cut a huge public debt despite a stunning election setback, and was looking to two opposition parties to help drive policy change. Prime Minister Naoto Kan’s ruling coalition lost its upper house majority in a weekend election, putting his policies to deal with […]

Santander to buy SEB’s German retail banking unit

Spain’s largest bank Santander moved one step closer to its goal to be a full service retail bank in Germany with the acquisition of Sweden’s SEB retail banking division, the bank has announced. The Ä555m ($699.1m) deal comes as Santander attempts to increase its footprint in both Europe, particularly Germany and Britain, as well as […]

ECB’s Trichet: budget cuts won’t lead to new slump

ECB President Jean-Claude Trichet dismissed warnings that drastic and simultaneous spending cuts planned by eurozone governments could send the 16-country bloc back into recession. US policymakers have called for continued stimulus to keep momentum in the global recovery, while many economists and academics have raised fears that austerity measures on the cards in Athens and […]

Japan machinery orders slide on economy doubts

Japanese machinery orders tumbled by the most in almost two years in May as companies grew more cautious about the business outlook due to a rising yen and signs of a global economic slowdown. Bank lending in June also fell, matching the biggest annual decline in almost five years, as demand from companies for funds […]

Germany drafts Ä9bn defence savings plan

German defence ministry experts have drawn up a list of potential savings in weapons and equipment worth Ä9.3bn in the long-term, according to newspaper reports. German daily Bild reported the number of A400M military transport aircraft would be reduced and 15 Transall transport planes taken out of service immediately. Under the proposal, Germany would buy […]

ECI Telecom gets $800m deal with BT

Spyker avoids more debt in final Saab payment

Dutch carmaker Spyker Cars used internal funding rather than external debt to pay General Motors the final $24m purchase price for Sweden’s Saab, ending concern over how it would foot the bill. Niche carmaker Spyker, which has never made a profit, took over the larger Saab from GM earlier this year and is now working […]

Japan business mood best in two years

Japanese business confidence was at its best in two years in the three months to June and big firms revised up capital spending plans, a Bank of Japan survey showed, in a sign the export-driven economic recovery is taking hold. The tankan survey showed Europe’s sovereign debt woes and the sharp appreciation in the yen […]

StanChart stumps up $500m for AgBank IPO

Asia-focused bank Standard Chartered Plc said it will invest $500m as a cornerstone investor in Agricultural Bank of China’s IPO in Hong Kong. AgBank is seeking to raise more than $20bn in a Hong Kong and Shanghai IPO, and sources had previously told reporters that Standard Chartered would invest $500m. The listing is expected to […]

Cuts expected to reduce police numbers

The government said on Tuesday it was cutting police red tape by scrapping two targets introduced by the ousted Labour administration ahead of budget cuts expected to see a reduction in officers. Police minister Nick Herbert said sweeping away bureaucracy would allow officers to “do more with less” but accepted that “substantial” funding cuts were […]

Stocks fall as bank funding worries intensify

World stocks hit a 2-1/2 week low on Tuesday while oil and the euro also slipped as investors grew nervous over the funding situation of banks about to repay 442 billion euros ($545.5 billion) to the European Central Bank. Banks must repay the money borrowed a year ago at rock bottom rates on Thursday, leaving […]

India fuel hike threatens strikes

India’s opposition parties are gearing up for a national strike to protest the government’s move to hike fuel prices, putting pressure on Prime Minister Manmohan Singh’s coalition before the next parliament’s session.  Last Friday’s hikes in petrol, diesel and kerosene were seen as a bold reform with which to attack India’s fiscal deficit and that […]

Shanghai stocks slip, AgBank IPO pricing eyed; HK firm

 China’s key stock index was down 0.6 percent by midday Monday, with volume slipping further as tight liquidity conditions worsened by Agricultural Bank of China’s looming stock offering starved the market of momentum for near-term gains.  The Shanghai Composite Index (SSEC) ended the morning at 2,537.2 points, slipping for a fourth day in a row […]