The number of German corporations going insolvent is expected to rise for the first time since the 2009 economic crisis, Bloomberg News reported. In the latest sign that Europe’s biggest economy could be on the verge of recession, German credit rating agency Creditreform says the trend for company closures is hitting a turning point. The rate of corporate insolvencies sank by just 0.4% in the first half of the year -- 9,900 corporations have already become insolvent -- and a total of 20,000 are expected by the end of 2019.

Bosnia’s sole aluminium smelter and one of the country’s biggest exporters was disconnected from the power grid just after midnight on Wednesday over a huge debt it had incurred because of high electricity and alumina prices, Reuters repored. The closure of the smelter, which employs about 900 workers in the southern town of Mostar, puts at risk some 10,000 jobs, including contractors and those at the aluminium processing firms it supplies.

Investors are becoming increasingly skeptical that Christian Sewing can pull off the biggest overhaul in Deutsche Bank AG’s recent history. What many are certain about: it’s still not the time to own its shares. The stock, which already had the lowest price-to-book ratio of any big European bank, has plunged almost 10% this week and 15% from its Monday peak. sInitial optimism surrounding Chief Executive Officer Christian Sewing’s sweeping revamp has quickly given way to doubts over whether the German lender can reach its profit goals in a competitive home market.

A German company that is developing a lunar lander has filed for insolvency, citing a shortfall in funding, but vows to continue development of its spacecraft. Berlin-based PTScientists announced July 8 that it had filed for “preliminary insolvency” under the German Insolvency Code in a local court July 5, Spacenews reported. That court has appointed an insolvency manager, Sascha Feies, to oversee the company.

Deutsche Bank AG credit investors showed their approval of the German lender’s plans to overhaul its business on Monday with risk gauges falling to fresh lows and its euro subordinated bonds initially rising, Bloomberg News reported. The cost of credit protection on the bank’s riskiest debt fell 15 basis points to its lowest level since March, according to ICE Data Services. Deutsche Bank’s riskiest bonds, that stand first in line for losses if the lender runs into trouble, rose as much as 0.5 cents on the euro in early trading to the highest level since April. The bonds later pared gains.

Greece's bailout creditors on Monday bluntly rejected calls from the country's new conservative government to ease draconian budget conditions agreed as part of its rescue program, the International New York Times reported on an Associated Press story. Conservative party leader Kyriakos Mitsotakis was sworn in as Greece's new prime minister Monday, a day after his resounding election victory on campaign pledges to cut taxes and negotiate new terms with international lenders.

Deutsche Bank's capital-boosting Additional Tier I (AT1) debt issues fell on Monday on worries over future challenges Germany's biggest lender may face in a planned overhaul, the International New York Times reported on a Reuters story. Concerns centered on Deutsche Bank's decision to lower minimum capital buffers, a pool of assets designed to absorb losses, after it launched one of the biggest overhauls of its investment bank since the 2008 financial crisis on Sunday. The debt had earlier risen after Deutsche Bank said it will pay coupons on its bank capital debt.

For investors in Italian debt, the round-trip is complete. Government bonds have climbed back to levels previously seen before the election that brought a populist coalition to power last year. Borrowing costs had spiked in May 2018 after the government’s spending plans set it on a collision course with EU leaders. Italy’s 10-year yield rose as high as 3.5 per cent, in a worrying echo of the depths of the sovereign debt crisis. That now feels like a distant memory, the Financial Times reported.

German engine block and cylinder head maker Weber Automotive has filed for insolvency, following a spat between its family owners and French private equity group Ardian about the right restructuring strategy, Reuters reported. Finances have deteriorated despite solid orders, Weber Automotive said in a statement on Monday as it announced the filing, adding that the owners lacked unity about future financing of the maker of drivetrain components.

UK business secretary Greg Clark has travelled to India and China over the past two weeks to meet companies viewed as potential bidders for British Steel, as efforts intensify to rescue the ailing business and save thousands of jobs, the Financial Times reported. In the past few days, the cabinet minister met JSW, one of India’s largest steel manufacturers, according to two people briefed on the matter, and other businesses. This followed a trip last week to China, whose Baowu has been linked with a move for British Steel.