Headlines

Factory production in Germany dropped in July, highlighting the weakening state of the eurozone’s biggest economy as it teeters on the brink of recession, the Financial Times reported. Industrial output in July fell 0.6 per cent from the previous month, improving on a revised decline of 1.1 per cent in June but off the expected 0.3 per cent climb that was forecast in a Reuters poll, the national statistics office said on Friday. Production was down 4.2 per cent from July 2018.

A prolonged shadow-banking crisis and hurdles in bankruptcy rules are set to keep India atop the world’s worst bad-debt pile, even as Italy, which held the title previously, quickens the clean-up of its lenders, Bloomberg News reported. Moody’s Investors Service to Credit Suisse Group AG. warned that more loans may sour in the Asian nation’s banking system. More than 2.4% of total loans in India’s banking system may be under stress on top of the 9.6% bad debt ratio as of June, the highest among major economies, Credit Suisse estimates shows.

The parent company of Philip Green’s Arcadia fashion empire has reported a full-year loss of £170m and cautioned that a restructuring that took place this summer has not guaranteed its survival, the Financial Times reported. Taveta Investments, which is the main investment vehicle of the Green family and is controlled by Sir Philip’s wife, Tina, said in accounts filed with Companies House that increased competition and challenging conditions “have had a significant impact on performance” at its brands, which include Wallis, Topshop and Burton.

Fitch Ratings has lowered its rating on Hong Kong, citing uncertainty about the stability of the business environment following months of protests and looming challenges stemming from the city’s closer integration with mainland China, the Financial Times reported. The rating agency is the first to downgrade Hong Kong's long-term foreign-currency issuer default rating since the start of violent clashes between protesters and police, lowering its ranking of the Asian financial hub from double A plus to double A with a negative outlook, signalling the potential for further falls.

Greece’s new prime minister, Kyriakos Mitsotakis, has announced tax cuts and structural reforms aimed at rebuilding the country’s credibility with investors, after three international bailouts and a grinding eight-year recession, the Financial Times reported. “Greece has turned a page,” the prime minister said in a speech on Saturday evening to businesspeople in the northern city of Thessaloniki.

During his eight years at the helm of the European Central Bank, Mario Draghi has earned a reputation for getting his way, the Financial Times reported. As he lines up a fresh salvo of monetary stimulus next week, investors are betting heavily that the Italian can corral any reluctant colleagues one last time. Government bonds in the eurozone have staged an unprecedented summer rally, with yields sinking to record lows across the currency bloc.

Talks around restructuring Eskom Holdings SOC Ltd.’s bonds must be approached carefully to avoid spooking the market, according to S&P Global Ratings, Bloomberg News reported. Public Enterprises Minister Pravin Gordhan said on Thursday the government will consult with the power utility’s debt holders on any reorganization and that there isn’t any real concern about haircuts.

Eversmart Energy has ceased trading, British energy market regulator Ofgem said on Friday, Reuters reported. The company has around 29,000 domestic customers and a very small number of business customers. The company confirmed it was ceasing trade on its website but did not give a reason. Ofgem said it will choose a new supplier to take on all of Eversmart Energy’s customers. This supplier will contact customers shortly after being appointed.

Switzerland’s UBS plans another shake-up of its investment banking arm to help boost earnings and curb costs after tough market conditions precipitated a performance dip, Reuters reported. The world’s largest investment banks have had their worst start to a year since 2006, the latest data published by industry analyst Coalition on Thursday shows. “What’s been communicated today was a reorganisation, which did not include a specific number of job cuts,” a person familiar with the matter said, adding that the restructuring would be carried out by the end of the year.

An Indian court on Thursday cleared JSW Steel Ltd’s takeover plan for debt-ridden Bhushan Power and Steel, bringing an end to a bankruptcy case that has dragged on over two years, Reuters reported. The move paves the way for JSW Steel, which has the biggest steel capacity in India, to take control of a steel asset in the east of the country where rival Tata Steel Ltd and Steel Authority of India Ltd have long dominated. The National Company Law Tribunal (NCLT) in New Delhi said it approved the debt resolution plan of JSW Steel, according to a copy of the judgment.