Morning papers: Berlin and Paris agree summit plan
The morning papers brought to you by Investment Adviser: Tuesday August 28 2012.
Germany and France have agreed to work together in drafting initiatives to combat the eurozone crisis, a move set to allay fears that the governments of chancellor Angela Merkel and president François Hollande were set on a collision course over remedies, reports The Financial Times.
Two months after a tense EU Summit in which Mr Hollande championed growth as an alternative to Ms Merkel’s mantra of austerity, the countries’ finance ministers on Monday announced a working group that would seek to forge joint positions ahead of meetings of EU finance ministers and summits of European leaders.
Spanish data weighs on recovery prospects
Spain’s economy was weaker than thought last year, the country’s national statistics bureau said on Monday, putting the government further behind in its task of engendering a jobs recovery, even as it seeks to cut its 2012 budget deficit sharply, reports The Wall Street Journal.
ECB official seeks to ease bond fears
A senior European Central Bank official has revealed further aspects of the bank’s planned intervention in eurozone sovereign debt markets, attempting to counter the concerns of Germany’s Bundesbank about the policy, reports The Financial Times.
With the ECB ready to resume purchases of sovereign bonds, Jörg Asmussen said the central bank would decide “in full independence” how and when it would buy debt on secondary markets. His comments appeared to play down the idea that the ECB would buy bonds on a quasi-automatic basis when yields of troubled countries hit certain levels.
Aviva activists press for directors to go
An activist group of Aviva policyholders and private shareholders is hoping to reignite the row that prompted the insurer’s chief executive to stand aside, calling on another four directors to leave, reports The Financial Times.
Almost four months after Andrew Moss stood aside following a shareholder revolt over pay and performance, the group that led criticism of his tenure has turned its sights on other board members.
Oil prices stabilise despite US shutdown ahead of Tropical Storm Isaac
Oil prices remained stable today as the threat to production in the Gulf of Mexico from Tropical Storm Isaac appeared to ease. Forecasts for Isaac have been toned down, lowering concerns that the storm could damage key oil and gas operations along the US Gulf Coast, reports The Telegraph.
Swiss bank will not curb property boom
The Swiss National Bank does not expect to use new rules to force banks to build up counter-cyclical capital buffers until 2013 at the earliest, as it believes the country’s red hot property market may be starting to cool, reports The Financial Times.
Apple win sends waves through techs
Apple’s courtroom victory over Samsung sent shockwaves through technology stocks on Monday, wiping more than $12bn (£7.6bn) from the Korean giant’s market valuation, knocking Google’s shares and providing a boost to struggling Nokia, reports The Financial Times.