Europe

It was announced as almost a footnote. But a change to the way the Bank of England’s bond portfolio is managed has freed up as much as £10 billion ($12.7 billion) for UK Chancellor Rachel Reeves in coming years, helping to keep a lid on borrowing, Bloomberg News reported. Reeves wrote to BOE Governor Andrew Bailey on Tuesday to agree that the cash buffer held to protect the central bank against unexpected losses on its holdings should be “slightly recalibrated and reduced.” It means the Treasury will transfer less money to the BOE as the reserve is allowed to run down.

Planet Fitness lost its bid in bankruptcy court to acquire budget fitness chain Blink Holdings, according to court filings viewed by CNBC. Planet Fitness placed its competing eleventh hour bids early this month during a 48-hour challenge window. The two higher bids came after it lost out in a bankruptcy auction to U.K.-based, privately held fitness chain PureGym. Late Tuesday, Delaware’s bankruptcy court formally accepted PureGym’s $121 million offer, which initially won at auction in late October. Bankruptcy Judge J.

Eurozone industrial output fell in September, underlining the fragility of the currency area’s economic recovery as exporters brace themselves for the possibility of higher U.S. tariffs, the Wall Street Journal reported. Total output decreased 2% across the 20 nations that share the euro, a sharper decline than was expected by economists, European Union data showed Thursday.

Southern Water Ltd. was downgraded to junk status by Moody’s Ratings and warned it could be cut further in light of the woes facing UK water and sewage providers as well as the company’s own weak track record, Bloomberg News reported. The firm’s “history of material operational and financial underperformance” could continue over the coming five years and impact the potential raising of £4 billion ($5.1 billion) in new debt and at least £650 million of new equity, Moody’s said in a statement Wednesday.

Chancellor of the Exchequer Rachel Reeves believes the UK’s crackdown on banks in the wake of the global financial crisis has gone too far and vowed to give the country’s watchdogs new marching orders to ensure they’re focused on growing the economy, Bloomberg News reported. Regulators have spent much of the last decade trying to eliminate risk taking, which has hindered growth across the country, Reeves said in prepared remarks for her inaugural Mansion House speech to the City of London on Thursday. “The UK has been regulating for risk, but not regulating for growth,” Reeves said.

Sweden’s Riksbank cautioned that loosening requirements on mortgage amortization could lead to increased stability risks, pushing back against a proposal intended to make it easier for first-time buyers to enter the housing market, Bloomberg News reported. The warning from the central bank comes after a government-appointed inquiry advised that households be allowed to pay down less on mortgages exceeding 70% of the value of the home. The so-called macroprudential rules were introduced in the wake of the global financial crisis amid concern over rising house prices and ballooning debt.

Thames Water won crucial support from creditors to move forward with its plan to raise £3 billion ($3.8 billion) in emergency funding, Bloomberg News reported. Holders of more than three-quarters of the beleaguered utility’s senior, Class A debt agreed to the proposal, according to a statement from the company on Wednesday. The fresh money, starting with an initial tranche of £1.5 billion, comes with an annual interest rate of 9.75%.

The Polish construction industry is facing its third crisis since the country joined the EU in 2004, with over 700 companies declaring bankruptcy in 2024, a 40% increase from the previous year, the Warsaw Business Journal reported. Small firms, especially in installation, renovation, and general construction, are struggling the most. Key factors include delays in disbursing funds from the National Reconstruction Plan (KPO), stagnation in railway investments, and slow progress in energy transformation discussions.

The leaders of Germany’s major parties have agreed to hold a federal election on Sunday, Feb. 23, 2025, following the collapse of Chancellor Olaf Scholz’s troubled three-party coalition last week, Politico reported. Scholz is now expected to hold a vote of confidence on Dec. 16 paving the way for the February election. For days, there has been speculation and debate on the timing of the vote.