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    Pakistan flood pain lingers

    The 2010 floods in Pakistan started late in July, following heavier than normal monsoon rains in Balochistan, the Punjab, Sindh, Pakhtunkhwa and the Khyber; in fact the whole Indus River Basin was affected. At one stage nearly 20 percent of Pakistan’s land area was covered with water, a total of some 307,374 square miles (796,095 square kilometres). According to the Pakistani government the floods affected nearly 20 million people, mostly as a result of destroying infrastructure, property and crops. The death toll was nearly 2,000. Initially, Ban-Ki-Moon, Secretary General of the UN, asked for emergency relief amounting to some $460m, notin...
    On December 8, 2011 / By
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    State entities in Dubai show $101.5bn debt

    Moody’s Investors Service on Tuesday said Dubai and its state-owned non-financials have outstanding debt of $101.5bn and could require further financial support to meet their obligations. The credit rating agency’s report showed that it remains concerned about the emirate’s maturing debt in spite of the “significant process” made by the authorities and state-owned companies to deal with it. Figures published by the agency showed that Dubai’s government has about $27.9bn of direct debt, while State-owned corporations have $68.6bn in debt. The FT reported quoting an unnamed senior government official that Dubai may restructure by ne...
    On December 6, 2011 / By
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    Italian cabinet approves radical austerity measures

    Italy’s new Prime Minister Mario Monti announced late on Sunday and ahead of a crucial EU summit on Thursday and Friday, that his cabinet has approved a €30bn package of austerity measures to help “reawaken” the Italian financial system. Europe’s third biggest economy is scheduled to present the plan to parliament today in a bid to help pull Italy back from the verge of insolvency and assist in saving the common currency from collapse. The austerity plan includes budget cuts, a higher pension age and instruments to help fight tax evasion....
    On December 5, 2011 / By
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    India’s growth dips to two-year low 6.9 percent

    India’s economy in the July to September quarter expanded at its slowest pace in over two years to 6.9 percent year-on-year compared to 8.4 percent for the same period last year. Data released Wednesday by the Central Statistics Office showed that manufacturing experienced a sharp decline, growing only 2.7 percent, while mining contracted by 2.9 percent following a 1.8 percent growth in the preceding quarter. The slowdown was attributed to rising interest rates, high inflation and global capital markets, the government said. The Reserve Bank of India has hiked rates 13 times since March 2010 to restrain inflation....
    On November 30, 2011 / By
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    IMF says swift action is needed to steady Europe’s banks

    A quick recapitalisation of European banks is necessary to steady markets and avert the economy from falling into another recession, IMF Europe Director, Antonio Borges, said late on Wednesday. The price tag for such a move was estimated in the range between €100bn and €200bn, he said. According to the IMF report, the eurozone debt crisis and its effects are disseminating across core banks and nations and make it impossible to rule out a further economic recession. The report cautioned that stronger economies should steer clear of compelling radical budget cuts at the expense of growth. The IMF offered its help through the possible implem...
    On November 30, 2011 / By
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    Fitch cuts US credit outlook to negative

    Fitch Ratings late on Monday warned the US it may cut its AAA rating if policymakers failed to agree on a “credible plan” to reduce its swelling budget deficit by 2013. There is a “slightly greater than 50 percent chance of a downgrade over a two year horizon,” said Fitch. The ratings agency downgraded the US outlook from stable to negative after a bipartisan super-committee failed to agree on much needed $1.2trn deficit cutting measures.  “The negative outlook reflects Fitch’s declining confidence that timely fiscal measures necessary to place US public finances on a sustainable path and secure the US AAA sovereign rating will b...
    On November 29, 2011 / By
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    Britain’s FTSE hits worst losing streak in nine years

    Britain’s blue-chip ended lower for the ninth consecutive session on Thursday, marking its worst run since January 2003, after Germany reiterated its opposition to the use of euro bonds or monetary tools to help solve the eurozone’s debt crisis. Following a meeting with the leaders of France and Italy, German chancellor, Angela Merkel, quashed market hopes that Europe’s paymaster would open the door to the launch of joint eurozone bonds or a quantitative easing programme by the European Central Bank. “It was a completely wrong signal; anyone that was in for the short term closed their position,” Lee Curtis, a trader at City Index, s...
    On November 25, 2011 / By
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    Nokia Siemens to cut 17,000 jobs worldwide

    Telecoms equipment giant Nokia Siemens Networks has said it will be shedding 17,000 staff globally in an attempt to bolster profitability in a stagnating network gear market. The company plans to cut a quarter of its workforce by the end of 2013 in a restructuring that will allow it to focus in mobile broadband equipment. Nokia Siemens CEO, Rajeev Suri, said the elimination would help the group cut annual operating costs by around $1.35bn by the end of 2013. “As we look towards the prospect of an independent future, we need to take action now to improve our profitability and cash generation. These planned reductions are regrettable but nece...
    On November 24, 2011 / By
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    Moodys downgrade South African debt rating

    The South African rand dropped sharply against the USD and bonds depreciated as Moody’s Investor Services announced its intention to reduce its outlook on the country’s sovereign debt rating. The rating agency cited growth and deficit concerns as reasons for the decision. Moody’s reduced the outlook from ‘stable’; South African debt is rated as BBB+ by Standard & Poor’s, one level below that of Moody’s. The rand, which had appreciated substantially in recent weeks, immediately dropped 1.5 percent in value and is currently trading at around 8.00 to the USD. This was the biggest drop in a single day since the beginning of Nov...
    On November 23, 2011 / By
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    Moody’s downgrade South African debt rating

    The South African rand dropped sharply against the USD and bonds depreciated as Moody’s Investor Services announced its intention to reduce its outlook on the country’s sovereign debt rating. The rating agency cited growth and deficit concerns as reasons for the decision. Moody’s reduced the outlook from ‘stable’; South African debt is rated as BBB+ by Standard & Poor’s, one level below that of Moody’s. The rand, which had appreciated substantially in recent weeks, immediately dropped 1.5 percent in value and is currently trading at around 8.00 to the USD. This was the biggest drop in a single day since the beginning of Nov...
    On November 23, 2011 / By