Greek euro exit would be ‘a disaster’

VIENNA (AFP) ― A Greek exit from the eurozone would be “a disaster” for the Greek people, European Commission head Jose Manuel Barroso told Tuesday’s edition of Austria’s Die Presse newspaper.“For the Greek people, it would be a disaster. We know what happened to the people of Latin America when they went bust,” he said.It would also have dire consequences for other eurozone members, “it would provoke a domino effect,” he added. “And it would then be likely we’d have to increase aid given to oth

March 6, 2012

Cotton soars on India export ban

Cotton prices soared Monday after India banned exports of the fiber, which may send more buyers to the United States for supplies.Cotton for May delivery rose 4 cents to finish at 92.23 cents per pound. It still is less than half what it was a year ago when shrinking global inventories and stronger demand sent prices over $2 per pound.India, the world’s second-largest exporter of cotton, said that it has halted new export sales of cotton and any cotton that has been sold but not shipped also wil

March 6, 2012

Key investors sign up for Greek bond swap

12 of biggest investors in Greek debt will participate in crucial bond swap dealBRUSSELS (AP) ― A dozen banks, insurers and investment funds holding Greece’s bonds will participate in a massive debt relief plan for the country, the group representing the private creditors said Monday as the deadline for the deal draws near. The statement from the Institute of International Finance comes amid concern that not enough investors will voluntarily swap their Greek government bonds for new ones with a

March 6, 2012

Yahoo! to cut thousands of jobs: report

NEW YORK (AFP) ― Yahoo! is preparing to lay off thousands of workers in a sweeping restructuring being launched less than three months after CEO Scott Thompson took control, according to a report Monday.The Dow Jones website All Things Digital said the shakeup of the struggling Internet giant could come as early as the end of March and could target Yahoo’s public relations and marketing division, research, and region-focused and other marginal businesses.The layoffs “are likely to number in the

March 6, 2012

Banks’ deposits at ECB top another new record

FRANKFURT (AFP) ― Banks’ deposits with the European Central Bank have hit yet another new record, data showed Monday, just days after the ECB pumped more than half a trillion euros into banks to unclog seized credit markets.Banks put 820.8 billion euros ($1.08 trillion) on deposit for 24 hours at the ECB overnight Friday, beating the previous record set the day before of 776.9 billion euros.Rising levels of deposits at the central bank are seen by some as a possible sign of market tensions since

March 6, 2012

Screws tighten on European automakers

Carmakers forced to face overcapacity issues as austerity and crisis hit salesMILAN (AP) ― As automakers prepare to roll out new models this week at the Geneva Auto Show ― one of the major events in the automotive calendar ― they are being forced to fight for a slice of an ever-shrinking European market stricken with austerity and recession.On top of this, carmakers are also having to confront the uncomfortable fact that a large number of their production lines are lying idle and eating up valua

March 5, 2012

Third rescue plan for Greece likely in 2015: Spiegel

BERLIN (AFP) -- Greece might need a third international rescue package worth 50 billion euros ($66 billion) in 2015, the German weekly magazine Spiegel said on Sunday.The troika of creditors -- the European Union, the European Central Bank, and the International Monetary Fund -- is said to have expressed strong doubt in a preliminary report that Greece would be able to return to the international money markets to borrow in 2015.By then Athens is likely to require 50 billion euros to repay intern

March 5, 2012

China billionaire: Private sector needs bigger role

Zong Qinghou, China’s second-richest man, called on the government to increase the role of private business in the economy and said the nation’s prospective next president agrees. The 66-year-old self-made billionaire who is chairman of Hangzhou Wahaha Group Co. and a member of China’s legislature, said the nation should cut taxes and allow private investment in more industries. When Vice President Xi Jinping “comes to power,” he will encourage the development of private enterprise, Zong said in

March 5, 2012

Asia fills aviation funding gap amid Europe’s woes

SINGAPORE (AFP) ― Capital-starved airlines worldwide are turning to Asian lenders to fund their ambitious fleet upgrades as the industry’s traditional streams of financing in the West dry up, experts say.In another sign of the world’s shifting economic fortunes, Asian banks, capital markets and leasing firms are stepping in to help airlines cope with rapid growth in travel, according to industry executives and analysts.“In this part of the world there is a lot of financing,” Jim Albaugh, chief e

March 5, 2012

Telecoms tycoon Slim beats Gates in first daily billionaire ranking

Carlos Slim, the telecommunications tycoon who controls Mexico’s America Movil SAB, is the richest person on Earth, according to the Bloomberg Billionaires Index, a daily ranking of the world’s 20 wealthiest individuals. The 72-year-old’s net worth fell $478.4 million in a day to $68.5 billion as of the close of markets on March 2, as U.S. moguls Bill Gates and Warren Buffett placed second and third on the list compiled by Bloomberg News. Brazil’s Eike Batista, who ranks 10th, still covets the t

March 5, 2012

S&P cuts Nokia, outlook negative

HELSINKI (AFP) ― Standard and Poor’s downgraded mobile phone giant Nokia’s rating by a notch, blaming especially the Finnish company’s difficulties in defending its smartphone market share.S&P cut Nokia’s long-term corporate credit rating to “BBB-” from “BBB,” with a negative outlook “reflecting the possibility of a further downgrade in the next two years,” if the companies margins remain too weak and its cash holdings decrease too much, the ratings agency said in a statement.“The rating action

March 4, 2012

Volt production halted; 1,300 workers out of work

DALLAS (AP) ― General Motors Co. is suspending production of its Chevrolet Volt electric car for five weeks amid disappointing sales. A GM spokesman said Friday that the company will shut down production of the Volt from March 19 until April 23, idling 1,300 workers at the Detroit-Hamtramck assembly plant. The Volt was rolled out with great fanfare in late 2010 but has since hit bumps in the road. Sales have fallen short of expectations, and its reputation was bruised by an investigation into a

March 4, 2012

European countries sign new fiscal treaty

BRUSSELS (AP) ― The leaders of 25 European countries on Friday signed a new treaty designed to prevent the 17 members of the eurozone from living beyond their means and avoid a repeat of the region’s crippling debt crisis.The leaders hope the rules for budget discipline set out in the accord, known as the fiscal compact, will also lead to closer political and economic integration in the eurozone.“It will bring us, as it were, the economic and monetary union that is finally walking on two legs,”

March 4, 2012

EU clears final hurdles to new Greek bailout

BRUSSELS (AFP) ― EU leaders cleared all but the final hurdles to an unprecedented new Greek bailout Thursday as they began debating ways to turn the page on the debt crisis and inject fresh life into strained economies.With recession returning to the eurozone after two years of austerity, EU president Herman Van Rompuy signaled the need for a new agenda arising out of a two-day European Union summit.“I’m not saying we are out of the rut but we have reached a turning-point in the crisis,” Van Rom

March 2, 2012