Moody’s downgrades Portugal banks

Banco Espirito Santo SA was among five banks in Portugal to have credit ratings cut by Moody’s Investors Service, which cited asset risks and a “poor economic outlook” in a nation whose own grade was reduced last month. Espirito Santo, Portugal’s largest publicly traded bank by market value, had its debt rating lowered one level to “Ba3,” Moody’s said Wednesday in a statement. It took the same action for Caixa Geral de Depositos SA and Banco BPI SA. Banco Internacional do Funchal was downgraded

March 29, 2012

S&P: Greece may have to restructure debt again

Greece will probably have to restructure its debt again and this may involve bailout partners such as the International Monetary Fund, said Moritz Kraemer, head of sovereign ratings at Standard & Poor’s.There may be “down the road, I’m not predicting Thursday when, another restructuring of the outstanding debt,” he said at an event in London late Wednesday. “At that time maybe the official creditors need to come into the boat.”Speaking at the same event at the London School of Economics, Poul Th

March 29, 2012

Spain edges toward economic abyss amid Europe woes

Country thrust again into Europe’s debt crisis spotlightMADRID (AP) ― Investors concerned that Spain is fast becoming Europe’s riskiest economic link and could be the next bailout candidate have plenty to worry about this week. On Thursday, much of the country will shut down in a general strike against labor market reforms that make it cheaper for companies to fire and offers incentives for them to hire. The next day, new center-right Prime Minister Mariano Rajoy is expected to unveil about 30 b

March 29, 2012

EPA to cut new power plants’ carbon pollution

WASHINGTON (AP) ― The Obama administration forged ahead on Tuesday with the first-ever limits on heat-trapping pollution from new power plants, ignoring protests from industry and from Republicans who have said the regulation will raise electricity prices and kill off coal, the dominant U.S. energy source.But the proposal also fell short of environmentalists’ hopes because it goes easier than it could have on coal-fired power ― one of the largest sources of the gases blamed for global warming.“R

March 28, 2012

Geithner urges Congress to back IMF

WASHINGTON (AFP) ― U.S. Treasury Secretary Timothy Geithner on Tuesday urged a tight-fisted Congress laden with conservatives opposed to global institutions to keep up financial support for the IMF and World Bank.With the International Monetary Fund prodding members for more funding and Washington seeking support for its new nominee to lead the Bank, Geithner told legislators that contributing to both helps further U.S. economic and security interests.“At a time of domestic resource constraints,

March 28, 2012

Geely to become top car exporter

Geely Automobile Holdings Ltd., whose parent owns Volvo cars, said it targets to become China’s largest auto exporter in two years by focusing on expanding in developing countries, overtaking leader Chery Automobile Co. The Hong Kong-traded carmaker plans to open factories in Belarus and Uruguay this year, Geely Chief Executive Officer Gui Shengyue said. Geely has said it is targeting to have at least half of its sales coming from overseas by 2015. “I am confident we will be able to become the l

March 27, 2012

Ghosn says Nissan may speed up Brazil plans

Nissan Motor Co., Japan’s second-largest carmaker, may accelerate plans to expand in Brazil after Latin America’s biggest automobile market decided to scale back imports from Mexican factories. The deal between Latin America’s two biggest auto markets means “the ramp-up of the Brazilian plant has to be even more faster than what we are envisioning,” Nissan President Carlos Ghosn, who was born in Brazil 58 years ago, said in an interview Monday in Iwaki, northeast of Tokyo. “This limitation of ex

March 27, 2012

Apple plans further investment in China

CEO visits Beijing, had ‘great meetings’ with Chinese officialsApple Inc. said it plans “greater investment” in China as Chief Executive Officer Tim Cook visited the world’s most populous country, where store openings have trailed a forecast the company made two years ago. Cook had “great meetings” with Chinese officials, Carolyn Wu, a Beijing-based spokeswoman, said by phone Monday, without identifying the officials. Cook earlier in the day posed for photos with customers at Apple’s store in th

March 27, 2012

‘Emergency loans not fueling inflation’

Draghi says it has tools to withdraw emergency loans to banks credited with easing debt crisisFRANKFURT (AP) ― European Central Bank chief Mario Draghi said he sees no inflation threat from the bank’s infusion of than 1 trillion euros ($1.3 trillion) in emergency loans, a bold move that has stabilized the continent’s banking system. Draghi addressed head-on some of the worries about the bank’s large credit injection during a speech Monday in Berlin. He declared that any excess money in the finan

March 27, 2012

Asia gets new budget airline

Australian carrier Qantas, China Eastern Airlines will launch a new H.K.-based low-cost airlineSYDNEY (AFP) ― Australian flag carrier Qantas and China Eastern Airlines said Monday they will launch a new Hong Kong-based budget airline next year aimed at cashing in on China’s booming aviation market.The new low-cost Asian carrier, Jetstar Hong Kong, will fly short-haul routes, including in China, Japan, South Korea and Southeast Asia, the partners announced.The move marks a major expansion of Jets

March 26, 2012

China soft landing may be hard for commodity exporters

The good news: China’s government will engineer a soft landing. The bad news: Even a soft landing is painful for industries that have become dependent on the world’s fastest-growing major economy as their main profit engine. Analysts at Deutsche Bank AG, Nomura Holdings Inc. and Daiwa Capital Markets raised forecasts this month for 2012 expansion to as high as 8.6 percent, partly on anticipation of looser monetary policy. The projections, still below last year’s 9.2 percent rate, offer little co

March 26, 2012