Date: Friday 02 Jul 2010
Fears of an economic relapse across the world have begun to stalk markets again after pending homes sales in the US crashed by a third and a slew of weak data from China and Japan sent bourses tumbling across Asia, the Telegraph reports.The credit system is once again flashing warnings of extreme fragility, with the yield on 10-year US Treasuries plummeting back to crisis-levels of 2.89%. Japan's 10-year bond dropped to 1.06%, the lowest since the country's deflation battle seven years ago. Tokyo's Nikkei stock index tumbled to the lowest level since 2005 as safe-haven flight into the yen surged to levels that leave many Japanese exporters underwater.
China could swoop on $9bn of BP's assets in South America, as the oil giant looks to raise money to pay for its giant Gulf of Mexico oil spill.The British energy major, whose share
KNOC, South Korea’s national oil company, is exploring a £1.5bn takeover offer for the UK-listed oil explorer Dana Petroleum as it seeks foreign acquisitions to bolster its oil production. KNOC has made preliminary contact with Dana’s management with the aim of arranging an agreed purchase, according to people familiar with the situation, the FT reports.
Bankers and analysts expect up to 20 of Europe’s banks to be forced into cash calls as a result of this month’s stress tests, raising up to €30bn ($37.3bn) of fresh equity, the FT reports. One senior European banker said that even in the event of mild stress the capital shortfall would approach that level. “We are urging clients to come early to market,” he said. Another investment bank chief said not only the weakest should seek to recapitalise. “The top three or four banks in Europe should be thinking: ‘How do I make myself bullet-proof?’”
Julia Gillard, the Australian prime minister, reached an agreement early on Friday with mining companies on a new tax, striking a compromise to end a simmering dispute that cost her predecessor his job. In order to secure the deal and reach agreement with mining companies, the government has agreed to slash the mining tax rate and cut the types of resources affected. The new resource tax offers concessions to mining companies by taxing iron ore and coal at a rate of 30%, the Telegraph reports.
Sky's sporting supremacy has come under unprecedented attack after BT ignited a price war in Britain's pay-TV market.The telecoms giant has begun offering Premier League football for as little £6.99 a month in a move that significantly undercuts the satellite giant, the Mail reports.
General Electric, the US conglomerate, last night sought to play down critical comments reportedly made by its own chief executive Jeffrey Immelt about China and the US administration under President Barrack Obama. Immelt was reported to have told Italian businessmen at a gathering in Rome that China was becoming increasingly hostile to foreign multinationals and did not want foreign companies to be successful, the Telegaph reports.Goldman Sachs denied responsibility for the collapse of insurance giant AIG in 2008, saying its demands for billions of dollars in collateral from the company were a prudent response to deteriorating financial conditions. Executives at the two companies traded accusations in front of the Financial Crisis Inquiry Commission yesterday, on the second day of a hearing into the role of derivatives in the credit crunch, the Independent reports.
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