European  

Morning papers: Don’t rely on Europe, says Carney

Mark Carney yesterday said the eurozone is moving “sideways” and warned that serious risks remain in the single currency bloc, reports the Daily Mail.

The new Bank of England governor welcomed “important progress” in the region over the past year but said more must be done to secure the future of the euro and “enhance the potential of the European economy”.

He added: “We should not get ahead of ourselves in terms of expectations – there remain risks. Senior authorities are aware of these risks, in our forecasts we don’t include the most extreme risks that could emanate from the eurozone.”

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Royal Mail privatisation: shares can be sold by stockbrokers

The government has invited stockbrokers to apply to help sell shares in the Royal Mail to members of the public as part of a planned stock market listing, reports the Guardian.

The 497-year-old institution is to be floated by the end of March 2014 – the UK’s biggest privatisation in decades – to help fund the modernisation of its delivery networks using private cash.

US set to move into profit on Freddie Mac

Freddie Mac, the mortgage finance giant bailed out by the US taxpayer in 2008, is on track to pay more money to the Treasury by the end of this year than the $72.3bn (£46.6bn) it received in government aid, reports the Financial Times.

Europe heads towards recovery, but slowly

Europe’s longest recession since the second world war appears to be on the verge of ending, driven by a surge in German growth that is helping to blunt the severe economic pain faced by many in the region, but is too modest to lift the global outlook, reports the Wall Street Journal.

A string of recent economic data, including a robust German industrial production report on Wednesday, has boosted hopes that the 17-member eurozone has returned to weak growth after six quarters of contraction.

European junk debt sales soar in US

European companies with fragile balance sheets have been turning to the US debt capital markets in record numbers, taking advantage of a combination of cheaper borrowing costs, ample liquidity and a diversified investor base to raise funds, reports the Financial Times.

Weak real dents Vale profits

Profits at Vale, the world’s largest producer of iron ore, plunged more than 80 per cent in the second quarter after currency losses and lower sales led to one of the company’s worst results in a decade, reports the Financial Times.

The Rio de Janeiro-based company, a key holding for many emerging markets funds, said late on Wednesday that net income for the three months ended June 30 fell 84 per cent to $424m, compared with a profit of $2.6bn a year earlier.