Italy will plow as much as 20 billion euros into the country’s banks after Banca Monte dei Paschi di Siena SpA failed to secure its future by raising funds from investors. More lenders may seek lifelines soon.
Category: World News
Paschi Drops Private Fundraising, Paving Way for State Aid
Banca Monte dei Paschi di Siena SpA, the world’s oldest lender, abandoned plans to raise 5 billion euros from the market, making a state rescue likely. Monte Paschi failed to lure sufficient demand from investors in a share sale that ended Thursday, the Siena-based bank said in a statement after the market closed.
Delta Air Lines, Inc. and Aeromexico Join Forces
This will enable them to coordinate their efforts in the transborder market. Delta and Aeromexico are going ahead with the joint venture even though U.S. regulators are forcing them to divest up to 28 airport slot pairs in New York and Mexico City.
Tesla Raises U.K. Prices After Brexit Vote
One of the world’s most devoted gearhead clubs is about to get a little pricier in the U.K. as a result of the country’s vote to leave the European Union. Tesla Motors will increase prices in the U.K. by 5% in 2017, a move attributed to the falling pound and described as “due to currency fluctuations,” a company spokeswoman said.
No Room For The Inn as Japanese Informal Accommodation Booms
All is not well in the world of Japanese hospitality. There appears to be a structural shift under way in the market that investors should not ignore.
Sweetgreen Is Going Fully Cashless In 2017
What’s in your wallet? In 2017, Sweetgreen will go fully cashless in all 64 of its stores after successfully testing the concept for about a year, cofounders Jonathan Neman and Nicolas Jammet tell Fast Company . Next year, the fast-casual restaurant chain plans on opening another 30 storefronts in the eight markets where it currently does business.
U.A.E. Expects Oil Prices to Rise More on Global Production Cuts
Oil prices may rise even more once investors see that OPEC and other major producers are fulfilling an agreement to cut production to curb the global glut, United Arab Emirates Oil Minister Suhail Al Mazrouei said. OPEC is committed to the decision to reduce output and it’s too early to talk about any additional steps it may take, Al Mazrouei told reporters in Abu Dhabi.
Oil Seen at $100 by End 2018 in Lottery Ticket Options Trade
Call it a pre-Christmas lottery ticket, but someone in the oil market has been busy making a bold bet, buying contracts that will be profitable if oil surges again to $100 a barrel. The $100 December 2018 call option — a contract that gives the right to buy Dec. 2018 futures at $100 per barrel — was the most traded contract on Tuesday across the whole ICE Brent market, the latest sign of resurgent optimism in oil.
Paschi Falls as Buyers Said to Balk, Making State Aid Likely
Banca Monte dei Paschi di Siena SpA will probably fail to lure sufficient demand for a 5 billion-euro capital raise, said people with knowledge of the matter, making a state rescue likely. No anchor investor has shown interest in the recapitalization so far, the Siena-based company said in a statement late Wednesday after a board meeting.
Spanish Banks Slide After ECJ Ruling Leaves Them Facing Hefty Payout
Bank stocks in Spain dropped Wednesday, as lenders faced the prospect of repaying billions of euros to borrowers after losing a European court case. The European Court of Justice decided that borrowers should be eligible for full reimbursements of excess interest payments on variable-rate mortgages.
Oil Seen at $100 by End 2018 in Lottery Ticket Options Trade
Call it a pre-Christmas lottery ticket, but someone in the oil market has been busy making a bold bet, buying contracts that will be profitable if oil surges again to $100 a barrel. The $100 December 2018 call option — a contract that gives the right to buy Dec. 2018 futures at $100 per barrel — was the most traded contract on Tuesday across the whole ICE Brent market, the latest sign of resurgent optimism in oil.
Paschi Falls as Buyers Said to Balk, Making State Aid Probable
Banca Monte dei Paschi di Siena SpA will probably fail to lure sufficient demand for a 5 billion-euro capital raise, said people with knowledge of the matter, making a state rescue likely. Liquidity has been drying up, the bank said in a filing Wednesday amid mounting concern about the lender’s viability.
Apple Tax Fight Looks More Difficult After EU Court Ruling
Apple Inc. and Anheuser-Busch InBev SA may face a tough battle in disputes over European Union demands for back taxes after the bloc’s top court partly backed regulators’ attempt to force Spanish firms to repay millions of euros in tax breaks. In a ruling that could ultimately add impetus to the region’s clampdown on special tax treatment for selected companies, judges at the EU Court of Justice in Luxembourg said a lower tribunal should re-examine a Spanish system that gave tax breaks to companies, including Banco Santander SA, for the acquisition of stakes in foreign firms.
Merkel Said to Close Off Banks-for-Cars Brexit Deal Before Talks
Chancellor Angela Merkel is seeking to stiffen German resolve on Brexit, singling out the car industry as vulnerable to any British attempt to strike market-access deals ahead of the U.K.’s exit from the European Union. In a closed-door meeting with German lawmakers, Merkel said some industries might press for such accords with the U.K. government and that political leaders should oppose them, according to two people who attended.
Spanish Banks Lose EU Case Over Mortgage Interest Repayments
Spanish banks, including Banco Popular Espanol SA and Banco Bilbao Vizcaya Argentaria SA, may have to give back billions of euros to mortgage customers after a final ruling by the European Union’s top court. Bank shares tumbled by as much as 10 percent.
Oil Extends Gains as Industry Report Shows U.S. Stockpile Drop
February futures rose as much as 0.9 percent in New York after climbing 0.5 percent on Tuesday. Crude inventories dropped by 4.15 million barrels, the American Petroleum Institute was said to report.
Flybe Names Ex-CityJet Head as New Chief to Lead Heathrow Push
Flybe Group Plc, Europe’s biggest regional airline, appointed Christine Ourmieres-Widener as its chief executive officer, succeeding Saad Hammad, who stood down in October after struggling to lift earnings. Ourmieres-Widener, an executive at Air France before she ran fellow regional operator CityJet Ltd. between 2010 and 2015, takes over Jan. 16, Flybe said in a statement Tuesday.
Oil Extends Gain as Industry Report Said to Show Supply Drop
Oil extended a gain in New York as an industry report was said to show U.S. crude stockpiles fell last week. February-delivery futures rose 30 cents after the American Petroleum Institute said late Tuesday that nationwide crude inventories sank 4.15 million barrels last week, according to a person familiar with the data.
Alibaba Lawsuit Throws Spotlight on – Brushers’ Gaming Rankings
A lawsuit filed by Alibaba Group Holding Ltd. is shining a light on the fake reviews and purchases on its websites. China’s biggest e-commerce operator sued Shatui.com, which allegedly links merchants with people willing to falsify purchases and write positive comments that can drive sellers up Alibaba’s rankings.
Walgreens, Rite Aid shed 865 stores to close $9.4B deal
Walgreens and Rite Aid will sell 865 stores to rival retailer Fred’s for $950 million, possibly removing the final roadblock preventing the tie up between the nation’s largest and third-largest drugstore chains. Wall Street certainly saw it that way, sending shares of Rite Aid up nearly 6 percent before the opening bell Tuesday.
Italy Paves Way for a $21 Billion Aid Plan for Ailing Banks
The Italian government moved closer to a potential rescue of lenders including Banca Monte dei Paschi di Siena SpA by seeking permission from parliament to increase the nation’s public debt by as much as 20 billion euros . The plan is aimed at providing a backstop to the banking system “through public guarantees in order to restore their short- and medium-term lending ability,” Finance Minister Pier Carlo Padoan said following a cabinet meeting Monday night.
Oil Settles Near $52 as Investors Eye Libyan Crude Output Return
Oil settled near $52 a barrel as investors eyed the potential return of crude supply from Libya and awaited signs of output cuts in January after the deal among OPEC and non-OPEC nations to reduce a global glut. Futures rose 0.4 percent in New York after fluctuating between gains and losses during the session amid light volume.
OPEC Deal Makes Oil Investors Most Bullish Since Slump Began
Money managers boosted bets on rising West Texas Intermediate crude prices to the highest level since July 2014 after the Organization of Petroleum Exporting Countries and producers outside the group agreed to coordinate crude production cuts. Prices advanced to a 17-month high on Dec. 12 on speculation that the curbs will reduce the global inventory glut next year.
Italy Paves Way for a $21 Billion Rescue Plan for Ailing Banks
The Italian government cleared the way for the potential rescue of lenders, including Banca Monte dei Paschi di Siena SpA, by seeking permission from parliament to increase the nation’s public debt by as much as 20 billion euros . Monte dei Paschi Chief Executive Officer Marco Morelli is scampering to find investors to back a private 5 billion-euro capital increase, which also includes a share sale and a debt-for-equity swap.
OPEC Deal Makes Oil Investors Most Bullish Since Slump Began
Money managers boosted bets on rising West Texas Intermediate crude prices to the highest level since July 2014 after the Organization of Petroleum Exporting Countries and producers outside the group agreed to coordinate crude production cuts. Prices advanced to a 17-month high on Dec. 12 on speculation that the curbs will reduce the global inventory glut next year.
Oil Prices Rise on More Balanced Market
Oil prices rose on Monday as a weaker dollar and the delay of new Libyan oil exports boosted benchmarks, amid expectations of tighter crude supply going into 2017. Analysts said the increases, which built on gains of around 2 percent on Friday, were driven by a delay in crude oil supplies from Libya.
Oil Extends Advance Above $52 as Libyan Output Comeback Stalls
Oil extended its gains above $52 a barrel as a planned production boost from Libya stalled amid continuing tension in the OPEC member exempt from agreed output cuts. Futures climbed as much as 1.2 percent in New York after rising 2 percent on Friday.
Libya’s – Elephant,’ Sharara Oil Fields Restart Said Halted
Libyan oil-facility guards prevented two of the country’s biggest fields from resuming production, days after the National Oil Corp. reached an agreement to restart operations there to boost output in the politically divided OPEC state. The El Feel, or Elephant, and Sharara fields still aren’t operational after they were shut more than a year and a half ago, an NOC official said Sunday by phone, asking not to be identified for lack of authorization to speak to news media.
Watsa’s Fairfax Agrees to Buy Allied World for $4.9 Billion
Fairfax Financial Holdings Ltd. agreed to buy insurer Allied World Assurance Co. for $4.9 billion in cash and stock in Chief Executive Officer Prem Watsa’s largest purchase.
Gone in 60 Seconds: Chinese Snap Up Dollars as Yuan Tanks
Chinese savers, eager to convert their yuan before the currency keeps depreciating, are snapping up U.S. dollar investment products that offer options for keeping money at home instead of sending it overseas. The latest wealth management products from China Merchants Bank Co.
OPEC Deal Leaves Oil Investors Most Optimistic Since Slump Began
Money managers boosted bets on rising West Texas Intermediate crude prices to the highest level since July 2014 after the Organization of Petroleum Exporting Countries and producers outside the group agreed to coordinate crude production cuts. Prices advanced to a 17-month high on Dec. 12 on speculation that the curbs will reduce the global inventory glut next year.
Africa’s poetic ‘energy exchange’
Africa Business Report reports from the Lagos International Poetry festival in Nigeria, and caught up with some of the continent’s most inspiring poets.
Libya’s – Elephant,’ Sharara Oil Fields Said Not Operational Yet
Libyan oil-facility guards prevented two of the country’s biggest fields from resuming production, days after the National Oil Corp. reached an agreement to restart operations there to boost output in the politically divided OPEC state. The El Feel, or Elephant, and Sharara fields still aren’t operational after they were shut more than a year and a half ago, an NOC official said Sunday by phone, asking not to be identified for lack of authorization to speak to news media.
Gone in 60 Seconds: Chinese Snap Up Dollar Funds as Yuan Tanks
Chinese savers, eager to convert their yuan before the currency keeps depreciating, are snapping up U.S. dollar investment products that offer options for keeping money at home instead of sending it overseas. The latest wealth management products from China Merchants Bank Co.
Japan’s Rust Belt Counting on Robonomics to Run Assembly Lines
A withering factory town in Japan’s Rust Belt is looking for revival through a dose of Prime Minister Shinzo Abe’s “robot revolution.” Kadoma’s population has declined 13 percent as the nation ages, prompting mergers among elementary schools and emergency services departments.
Monte Paschi to Start Share Sale in Effort to Avert State Rescue
Banca Monte dei Paschi di Siena SpA will begin taking orders for shares Monday as it aims to complete raising 5 billion euros by the end of the year to avoid a rescue by the Italian government. Monte Paschi will sell stock to institutional investors through Thursday, while the offer for retail investors will end on Wednesday, the Siena, Italy-based bank said in a statement Sunday.
BP Gains Abu Dhabi Oil Field Stake for $2.2 Billion in Stock
BP Plc cemented its 77-year relationship with Abu Dhabi by swapping about $2.2 billion of its own shares for a stake in one of the emirate’s largest onshore oil concessions. The U.K.’s second-biggest oil group will issue new ordinary shares to pay for 10 percent of the Abu Dhabi Company for Onshore Petroleum Operations Ltd., giving the emirate a 2 percent holding in BP, the London-based company said Saturday in a statement.
Chinese city cancels flights in 2nd day of smog alert
A security guard wears a mask during duty in Beijing, China, Saturday, Dec. 17, 2016. China’s capital and other northern cities have banned half of all vehicles from city streets and ordered factories, schools and construction sites closed in … A woman adjusts her mask before walking outdoors in Beijing, China, Saturday, Dec. 17, 2016.
BP Gains Abu Dhabi Oil Field Stake for $2.2 Billion in Stock
BP Plc cemented its 77-year relationship with Abu Dhabi by swapping about $2.2 billion of its own shares for a stake in one of the emirate’s largest onshore oil concessions. The U.K.’s second-biggest oil group will issue new ordinary shares to pay for 10 percent of the Abu Dhabi Company for Onshore Petroleum Operations Ltd., giving the emirate a 2 percent holding in BP, the London-based company said Saturday in a statement. Abu Dhabi investor Mubadala Development Co.
Wanxiang Gets China Electric Vehicle Permit to Make Karma Cars
Wangxiang Group, the owner of Karma Automotive, became the second auto-parts maker to receive permission from the nation’s top economic planner to produce electric cars under a special scheme to encourage companies outside auto manufacturing to develop new-energy vehicles. Founded by Chinese billionaire Lu Guanqiu, Wanxiang Group got approval from the National Development and Reform Commission to invest in facilities to manufacture extended-range electric vehicles with annual capacity of 50,000 units, according to a notice on the agency’s website on Friday.