Investments  

Morning papers: Hopes for faster global growth dashed

Disappointing growth figures in the eurozone and Japan driven by weak export numbers have dashed hopes that a global economic recovery would gather pace in the second half of the year, reports the Financial Times.

Growth in the eurozone faltered in the third quarter, expanding 0.1 per cent following growth of 0.3 per cent in the second quarter. The figures came a week after the European Central Bank cut rates in response to fears about deflation.

Buffett takes $3.7bn stake in ExxonMobil

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Warren Buffett’s Berkshire Hathaway has taken a $3.7bn stake in ExxonMobil, handing a vote of confidence from one of the world’s most famous investors to a company that has underperformed relative to its smaller peers in the US oil industry, reports the Financial Times.

The purchase, disclosed in a regulatory filing late on Thursday, was funded in part by the sale of $500m of Berkshire’s shares in Exxon’s rival, ConocoPhillips.

Never again, vows Dublin as it ends bailout funding

Ireland proclaimed a remarkable comeback for its shattered economy with a pledge to break free from its international bailout deal next month without the safety net of a back-up programme, reports The Times.

Dublin’s return to money markets from December 15 will come three years after the humbled Celtic Tiger was forced to agree €67.5bn (£56.4bn) in emergency loans from the EU and International Monetary Fund just to stay afloat.

Moody’s cuts ratings of three big US banks

Moody’s has cut the credit ratings of big US banks including Morgan Stanley, Goldman Sachs and JPMorgan Chase, after deciding that the federal government is less likely to bail the financial institutions out if they get into future difficulties, reports the Financial Times.

Goldman, Morgan Stanley and JPMorgan had the ratings on their long-term senior unsecured debt lowered one notch to Baa1, Baa2 and A3, respectively, Moody’s said on Thursday. The credit ratings on the three banks’ subordinated debt were also cut by one notch.

Eurozone’s rebound feels like recession

The euro-zone economy’s recovery from its long slump lost its momentum in the third quarter, compounding fears that Europe could get mired in a “lost decade” of stagnation, joblessness and political discontent, reports The Wall Street Journal.

Although growth is expected to improve slightly next year, the euro zone is still a long way from regaining the level of output and jobs it had before the financial crisis that began five years ago.

Europe’s insurers finally move towards agreeing new capital rules

Thirteen years of wrangling and lobbying came to head today as Europe’s insurers finally moved within sight of agreeing controversial new capital rules, reports The Guardian.

Policymakers from the European Parliament and European Union said they had reached common group on the Solvency II proposals, which have been drawn up to protect consumers across the region.