Headlines

Growth in the eurozone economy is slowing down, complicating the European Central Bank’s deliberations on how quickly to remove its stimulus measures and start raising interest rates, The Wall Street Journal reported. The $10 trillion eurozone economy entered 2018 on a high, having chalked up its strongest year in a decade in 2017, with growth outpacing the U.S. But a series of economic releases in recent weeks from across the 19-country currency area have been weaker than expected, suggesting that while growth will continue in 2018, it won’t be as strong.

Euro zone banks that have issued bonds under English law may face capital shortfalls after Britain leaves the EU, regulators in the currency bloc said as they encourage banks to switch to continental law for future contracts, Reuters reported. The corporate bond market is one of several sectors in which a tectonic shift away from English law may occur if Britain and the European Union failed to mutually recognize their financial rules after Brexit.

Debt-laden Reliance Communications Ltd (RCom) said on Thursday India’s Supreme Court had lifted a high court stay on sale of some of its assets and allowed its secured lenders to proceed with the sale process, Reuters reported. The top court also directed the company and its secured lenders to file an appeal before the National Company Law Appellate Tribunal (NCLAT) on a stay granted by an arbitration court on the sale of RCom’s tower and fibre assets.

Retail sales in the euro area remained lacklustre in February, just edging up from January after two months of decline, the Financial Times reported. Month-on-month, retail sales climbed 0.1 per cent, driven by higher sales of vehicle fuel and food. That followed a worse than previously thought performance in January, when sales dropped 0.3 per cent on the month, and a 1 per cent decline in the final month of 2017. Economists had expected more robust data, despite disappointing figures from Germany published earlier this week.

Russia's top state lender Sberbank opposes a plan by billionaire Mikhail Gutseriyev to merge his oil assets into one firm and replace co-owner Glencore because of concerns about his energy companies' heavy debts, sources told Reuters. Gutseriyev, who has built his oil wealth with the help of Glencore over the past 15 years, had to endure a painful debt restructuring that left his energy empire split into two parts, the International New York Times reported on a Reuters story.

Lebanon hopes to secure billions of dollars for infrastructure this week at an international donor conference in Paris, as it grapples with low growth and soaring debt, the International New York Times reported on an Associated Press story. Some 50 countries and international organizations are expected at the CEDRE (Cedar) conference that begins Friday, where Beirut will request up to $22 billion for an eight to 12 year investment program.

Singapore Exchange’s regulatory arm on Thursday asked Noble Group’s senior creditors to assess the beleaguered commodity trader’s restructuring plans to “ensure parity in the treatment of all shareholders,” Reuters reported. The Singapore-listed trader is seeking a $3.4 billion debt restructuring which is critical for its survival. While it has the support of senior creditors holding 55 percent its debt for the restructuring deal, it is still short of the required 75 percent amid opposition from some bondholders and shareholders.

UTAC Holdings Ltd., the Singapore-based chip testing firm backed by Affinity Equity Partners and TPG, is exploring options for a sale of its business after completing a bond restructuring, people with knowledge of the matter said. The company met potential advisers in recent weeks to discuss options that could include an initial public offering or sale, according to the people, Bloomberg News reported. Its owners could seek a valuation of about $1 billion including debt from any exit, the people said, asking not to be identified because the information is private.

Creditors are pushing for liquidation of Alok Industries Ltd. and Jyoti Structures Ltd. -- which together owe about 380 billion rupees ($5.8 billion) -- as they aren’t happy with bids for the debt-laden companies, said people familiar with the matter, Bloomberg News reported. The only binding bid for textile firm Alok is one from Reliance Industries Ltd. and JM Financial ARC, which offers a price that’s too low for the lenders, the people said, asking not to be named as the information is private. They didn’t provide further details. Alok owes 299 billion rupees, according to official data.

Irish drinks company C&C has bought the wholesale business of Conviviality, after the ailing alcoholic drinks retailer and supplier appointed administrators on Wednesday, the Financial Times reported. Following “advanced discussions” with Conviviality, which owns brands such as Wine Rack and Bargain Booze, C&C said it had agreed to buy Conviviality brands Matthew Clark, Bibendum, Catalyst, Peppermint, Elastic and Walker & Wodehouse for a nominal sum. C&C brands include Magners cider and Tennent’s lager.