Headlines

The European Central Bank intensified its push for a tool that would hand authorities the power to stop deposit withdrawals when a bank is on the verge of failing, Bloomberg News reported. ECB executive board member Sabine Lautenschlaeger said that bank resolution cases this year showed that a so-called moratorium tool, which would temporarily freeze a bank’s liabilities to buy time for crucial decisions, is needed.

Rosneft, the world’s largest listed oil producer, has reported a lower than expected 81 per cent annual rise in net profits in the third quarter and falling free cash flow thanks to a spending spree on acquisitions, the Financial Times reported. The Kremlin-controlled company said net profit rose to Rbs47bn ($792m) in the third quarter, thanks to a rise in global oil prices and an increase in production. But free cash flow fell 83 per cent to just Rbs8bn, because of higher spending and upstream expenses.

Eurozone industrial production growth slowed slightly in September after a bumper annual reading in August, the Financial Times reported. Seasonally adjusted production rose 3.3 per cent from a year earlier, according to official eurozone data agency Eurostat, a notch above analysts’ expectations of 3.2 per cent. That compared to an upwardly-revised annual figure of 3.9 per cent in August, which had trounced expectations of a 2.6 per cent rise that month.

Debt-laden Brazilian telecoms provider Oi SA could benefit from a third-party capital injection, but the company should focus on talks between creditors and shareholders before engaging new strategic investors, its chief executive said. In a Monday interview regarding third-quarter results, CEO Marco Schroeder said he thought it was “extremely important” that a long-delayed creditors meeting be held on Dec. 7 even if creditors and shareholders had not reached an agreement, Reuters reported.

The European Commission talked up Greece’s reform drive, as creditors are beginning to prepare for a discussion on what a post-bailout landscape could look like for the debt-ridden state, Bloomberg News reported. “Greece has undertaken significant reform efforts across all policy areas,” the European Union’s executive arm said in a 187-page report assessing the country’s record of compliance with its bailout terms.

Venezuela, one of the world’s riskiest credits, was declared in default by S&P Global Ratings after missing two interest payments on its debt, Bloomberg News reported. The nation, home to the world’s largest oil reserves, owed investors about $200 million and failed to make those payments by the end of a 30-day grace period that expired over the weekend, S&P said in a statement in which it lowered the country’s rating to SD. Plagued with payment delays and running low on cash, it’s the first time in recent years the government has exceeded the buffer period on its bonds.

Kenya Airways will be almost 90 per cent owned by the Kenyan government and a group of 11 local banks under a restructuring deal to be unveiled on Monday, after the terms of a debt for equity swap for the lossmaking airline were agreed, the Financial Times reported. The Kenyan government will own 48.9 per cent of Kenya Airways and the banks 38.1 per cent after the debt-for-equity swap, agreed in principle in June.

Shares and bonds in Reliance Communications, the struggling telecoms group run by billionaire tycoon Anil Ambani, plummeted to record lows on Monday after the company announced heavy losses over the weekend and confirmed it had missed debt repayments, the Financial Times reported. RCom said on Saturday that it had lost Rs28.2bn ($431m) before tax in the three months to the end of September, having lost Rs1.2bn in the same quarter last year. It also confirmed it had missed two rupee-denominated bond repayments in recent weeks, having entered a formal debt restructuring two weeks ago.

Australian coal rail operator Aurizon Holdings said on Monday it was in talks to buy the Wiggins Island Coal Export Terminal (WICET), which urgently needs to restructure $3 billion in debt, the International New York Times reported on a Reuters story. A purchase would mark a change in strategy under new Chief Executive Andrew Harding for Australia's largest rail freight operator, which runs nearly 2,700 kms (1,680 miles) of rail lines transporting millions of tonnes of coal a year.

Venezuela’s state electricity company was declared in default by the trustee for its bonds after it failed to make a $27.6 million interest payment, Bloomberg News reported. The electric utility, however, said that the cash was sent Nov. 8 and was being held up due to “operational changes.” Traders had long suspected that Elecar’s $650 million in notes coming due next year could be a candidate for the cash-strapped government to stop paying as it struggles to stay current on its debt.