Headlines

The Dubai developer helping build the $8.6 billion CityCenter complex on the Las Vegas Strip said Monday it is suing struggling partner MGM Mirage amid concerns about the project's viability, the Associated Press reported. Dubai World said its Infinity World subsidiary filed the lawsuit in Delaware Chancery Court "to protect its rights and the best interests of the CityCenter project." Infinity contends that recent statements by MGM Mirage about its ailing financial state constitute a breach of its joint-venture agreement and put the project at risk.
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The German economy will shrink 6% to 7% this year, Commerzbank forecast on Monday, result that would put the country in the deepest recession of any major European economy this year. The German government currently forecasts that 2009 gross domestic product will fall only 2.25%. But the deluge of gloomy data from German industry is prompting more analysts to cut expectations, adding fuel to the debate over whether the country should adopt a more aggressive fiscal-stimulus policy.
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Albidon has warned it could go into voluntary administration if it doesn't finalise funding talks with China's Jinchuan Group, The Australian reported. The Perth-based nickel miner went into a trading halt today, saying negotiations with Jinchuan were well advanced, but are yet to be finalised with senior lenders and unsecured creditors. Lenders had previously granted Albidon an extension to midnight, March 23. If Albidon doesn’t agree on funding arrangements “on a timely basis,” the company will be placed into administration, it said in a statement.
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The South Korean government Tuesday launched a new program to support the country's middle-income workers, stressing that a strong middle class is the key to economic recovery and future growth, Yonhap reported. The program, named the Human New Deal, calls for efforts to prevent those in the economic class from falling out of their bracket, as well as support for those moving up the stratum, according to the Presidential Council on Future and Vision.
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The U.K. inflation rate unexpectedly rose in February after higher food costs and the weakness of the pound sustained price pressures even as Britain’s recession deepened, Bloomberg reported. Consumer prices climbed 3.2 percent from a year earlier, the Office for National Statistics said today in London. The median forecast of 28 economists was for 2.6 percent. Bank of England Governor Mervyn King wrote in a letter to the Treasury explaining the increase from the 3 percent limit that a “sharp decline” in the inflation rate is likely to resume.
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A tiny default by a Russian aircraft-leasing company is sending ripples through the much larger market for the country's debt, The Wall Street Journal reported. The default by Finance Leasing Co. on $250 million of bonds is the first by a Russian state-owned company on foreign debt since the country's 1998 financial meltdown. That is rattling foreign investors, who worry that Russia could allow many more companies to renege on billions of dollars of debt while it grapples with an economic and financial crisis.
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Beleaguered AbitibiBowater Inc. is facing down an imminent bankruptcy filing as early as this week after the newsprint giant blew past a deadline given by a contingent of secured U.S. lenders to come up with a suitable plan to restructure a multibillion-dollar debt load, the Financial Post reported. The Montreal-based company had until midnight Friday to reach an accord with lenders which included Bank of America, Citicorp and Wachovia Corp. that would allow Abitibi to proceed with a plan to restructure US$1.8-billion in debt at American subsidiary Bowater Inc.
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A company formerly linked to failed finance company Bridgecorp has been placed in receivership, BusinessDay reported. Compass Capital, once an offshoot of Bridgecorp, has had Grant Graham and Brendon Gibson of KordaMentha appointed as receivers. Investors are currently being notified of the move. Compass stopped seeking money from investors soon after Bridgecorp was placed in receivership in July 2007 and has been working to repay monies owed since. The receivership is seen at this stage as a logical next step in recovering monies and winding the business down.
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The president of the European Central Bank said Europe doesn't need to boost spending more to combat the global financial crisis, throwing the bank's weight behind Europe's governments in their battle with the U.S. over how to overcome the worst recession in a generation. In an interview with The Wall Street Journal, Jean-Claude Trichet said that instead of pushing new measures, governments around the world should move faster on what they've already announced--referring in part to delays and difficulties in the U.S. government's rescue of its troubled banks. Europe and the U.S.
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