Headlines

The debate in China over economic reform has just become more interesting. Central Bank Governor Zhou Xiaochuan on Monday called for freer trade and an end to capital controls as essential to restructure the economy, The Wall Street Journal reported. Coming on the eve of the Communist Party Congress, this could be an important moment. Mr. Zhou is right that a convertible currency—the yuan—is key to rebalancing China’s economy from its long-time dependence on high savings and investment.

Sears Canada moved a step nearer to permanent closure after several attempts to find a buyer failed, with the retailer saying it will seek court approval on Friday to shutter its remaining 130 stores, leaving 12,000 employees without jobs, Reuters reported. The retail chain is the latest victim of a widespread shift in consumer behavior demanding more convenience and up-to-date fashions that has seen nimble online operators such as Amazon.com Inc. claw market share from bricks-and-mortar retailers that have clung to their traditional business models.

Brazilian phone carrier Oi SA’s board has approved a plan to cut a 65.4 billion-real ($21 billion) debt burden that includes a capital injection, in an effort to emerge faster from bankruptcy protection and avert a government intervention, a person with knowledge of the matter said on Tuesday. According to the person, who requested anonymity because the matter remains private, Oi’s largest shareholders have agreed with a management proposal to inject 9 billion reais into the carrier, part of it through a debt-for-equity swap, Reuters reported.

The European Commission will present on Wednesday a list of measures it plans to put forward by next spring on reducing bad loans held by European banks, a draft document said, a move that could slow similar moves by the European Central Bank. The ECB banking supervisor proposed last week that euro zone banks should set aside more cash from next year to cover newly classified bad loans and may also present additional measures to tackle the sector’s huge stock of bad debt which amounts to nearly 1 trillion euros, Reuters reported.

French president Emmanuel Macron’s plans to make common cause with Germany to reform the eurozone have suffered an early setback as Berlin pushes proposals for sovereign debt writedowns that Paris fears could shatter investor confidence in the single currency, the Financial Times reported.

National Bank of Greece has sold a €750m covered bond, marking the first time the country’s banking sector has tapped international capital markets since 2014. Covered bonds are issued by banks and backed by pools of loans, providing the investor with additional safety in the event of default, the Financial Times reported. The three-year bond, which is rated single B by Fitch, pays a coupon of 2.75 per cent. The yield on the Greek 2-year sovereign is currently at 3.14 per cent.

Ireland's finance minister sought to raise over 800 million euros (714.89 million pounds) in extra revenue in a budget on Tuesday to give taxpayers a "modest" break and help tackle a housing crisis. He also sought to balance the state's books for the first time in a decade. Ireland started reversing years of savage spending cuts and tax hikes in 2014 - about the time its economy began to rebound sharply from a deep financial crisis, the International New York Times reported on a Reuters story.

Britain’s transport minister said on Monday the costs of bringing home 110,000 customers of airline Monarch, which collapsed last week, were being discussed with credit and debit card companies, Reuters reported. Monarch went bust last week amid intense competition over passengers and a weaker pound following the Brexit vote decimated company profits. It is the largest British airline to collapse and its demise left thousands of customers stranded abroad.

Flights operated by insolvent German carrier Air Berlin will end by Oct. 28 at the latest, it said on Monday, urging staff to seek jobs elsewhere while it works toward a carve-up of its assets. Air Berlin filed for insolvency in August and a government loan is keeping its planes in the air to give it time to negotiate with investors for parts of the business, Reuters reported. Talks with Lufthansa and easyJet are due to run until Thursday and once a deal for parts of its business has been agreed Air Berlin will have to wind down the rest of the operation.

The Brazilian government is seeking 40 billion reais ($12.7 billion) from construction and engineering conglomerate Andrade Gutierrez SA to settle claims related to its participation in a graft scheme, newspaper O Globo reported on Sunday. Citing calculations from members of the Office of the Attorney General and the Office of the Comptroller General, O Globo said the fine is a condition for the signature of a leniency agreement that would allow the firm to continue bidding for government contracts, Reuters reported.