Moody's Investor Service's downgrade of Spain's sovereign debt sent the nation's borrowing costs sky high on Thursday. But as costly as this latest downgrade is, the next one could be even more devastating. And downgrade No.
Chancellor George Osborne will launch the government's white paper on banking reform to City of London bankers in his Mansion House speech (Reuters) At what was once a black tie evening of self-congratulatory back-slapping and hand-shaking between policymakers and the City of London , the upcoming Mansion House speeches by Chancellor George Osborne and Bank of England Governor Sir Mervyn King will herald a new age for the financial industry and its relationship with the government. Osborne's speech at the 250-year-old building will launch the government's white paper on banking reform , which has been inspired by recommendations made in the Vickers report, and includes ring-fencing the retail arm from the investment side of the business, to protect consumers from what is labelled "casino banking". But while the Chancellor can score a few points with voters in pledging to cut the City down to size, he can't afford to alienate one of the country's most important industries as Britain fights to extract itself from the first "double-dip" recession in three decades.
Credit Suisse shares plummeted after the Swiss National Bank (SNB) put pressure on it to bolster its capital base by halting dividends and issuing shares in order to safeguard against the risk of an escalation of the Eurozone banking crisis. The Swiss bank's share price tumbled by over 11 percent at one stage in the session to a decade-low 17.03 francs. In the central bank's annual financial stability report, SNB warned that "for Credit Suisse , given the low starting point and the risks in the environment, it is essential that it already substantially expand its loss-absorbing capital base during the current year." The group added that "apart from the planned reduction of risk, these improvements can also be achieved in other ways, such as by suspending dividend payments, or even by raising capital on the market through share issuance." The SNB added that despite Credit Suisse, as well as UBS, both holding more capital than its European counterparts, the banks still fall behind in capital requirements under international Basel III rules, which are coming into force in 2019.
Finland-based cell phone manufacturer Nokia Thursday announced that it plans to cut 10,000 jobs globally as part of its revamping measures. The company announced that it would shut down production and research sites in Finland, Germany and Canada. In addition, it announced changes in its leadership team with executive vice-president and chief marketing officer Jerri DeVard, executive vice-president of mobile phones Mary McDowell and executive vice-president of markets Niklas Savander leaving the company.
Wal-Mart lawyers have identified India , China , South Africa , Brazil and Mexico as the most corrupt countries, according to a letter from two congressmen investigating the bribery charges leveled against the company. The lawyers, retained to review Wal-Mart anti-corruption compliance globally, said these were the regions with the highest risk of corruption
That massive pile of cash Corporate America has been sitting on for years is shrinking, and the reason bodes well for the nation's economy. "For over two years, regulators, public officials and pundits have been denouncing corporations for 'hoarding' cash. Their storyline has been that the economy will turn around if only companies would start spending that cash," said Anthony Carfang, partner at Treasury Strategies, a treasury and liquidity consulting firm.
Kevin Hartz (Eventbrite) One of the fastest growing segments of Kevin Hartz's business is bacon. Hartz isn't a chef or farmer. Rather, he's founder and CEO of Eventbrite, a ticketing website that offers an independent platform for event organizers of all types