Headlines

A court in the Netherlands on Thursday postponed until Feb. 2 a decision on whether to enforce bankruptcy proceedings against two subsidiaries of phone carrier Oi SA, which is under creditor protection in Brazil, said two sources briefed on the matter who were not authorized to discuss it publicly, Reuters reported. The ruling was expected to be made on Thursday, according to a statement from Oi on Jan. 12. One of the sources said the reasons for the delay were unclear. The second source declined to elaborate.

A sell-off in eurozone government bonds has left German yields at their highest level in a year, challenging investors who have long become accustomed to low inflation and weak economies keeping market interest rates at record low levels, the Financial Times reported. In France, Germany, Italy, Spain and Austria bond yields have broken through 12-month highs as investors focus on the accelerating pace of inflation, grapple with extra supply and question the longevity of the aggressive central bank stimulus that has dominated fixed-income markets.

The Royal Bank of Scotland said on Thursday that it would set aside an additional $3.8 billion in its fourth quarter for investigations and litigation in the United States, even as rivals have reached settlements with the American authorities, the International New York Times DealBook blog reported. The bank, which is 73 percent owned by the British government after a bailout during the financial crisis, is looking to address legacy legal issues as its chief executive, Ross McEwan, aims to turn around the lender’s prospects.

U.K. Green Investment Bank Plc, the state lender put up for sale by the government, will be dramatically restructured if it’s sold to Macquarie Group Ltd., according to two people familiar with the matter, Bloomberg News reported. Australian bank Macquarie, seen as one of the most likely buyers, would divide the Green Investment Bank, or GIB, into at least two units, according to the people, who asked not to be identified because discussions are confidential. One or more would manage existing loans while another would work on deals yet to reach financial close, the people said.

Drowning in debt, metals trader Sinosteel Corp. got an unprecedented lifeline last month from the Chinese government " a multibillion-dollar debt-for-equity rescue that could be the first of many for struggling state-owned companies, The New Zealand Herald reported on an AP story. China's economy is still growing relatively quickly, but a prolonged slowdown is raising fears that companies in many industries have borrowed and invested too much, too fast, posing a serious risk for the world's second-largest economy.

A European Central Bank executive board member has reignited debate over how quickly the bank should end its aggressive monetary stimulus, saying conditions were in place for a further rise in eurozone prices, the Financial Times reported. Sabine Lautenschläger, seen as the most hawkish member of the executive board, said she was “optimistic that we can soon turn to the question of an exit” from the loose monetary policy. “All preconditions for a stable rise in inflation exist,” she said in a speech in Hamburg.

Greece's prime minister on Wednesday marked two years in office, promising "not another euro" of new austerity measures by his left-wing government, as talks with bailout lenders over deeper cuts remain at an impasse, the International New York Times reported. Alexis Tsipras , 42, defeated established political parties in elections on Jan. 25, 2015 on a promise to scrap existing bailout agreements and austerity measures.

UK banks risk losing their privileges to do business in the European Union, unless the British government agrees to abide by financial regulation decided in Brussels even after Britain leaves the union, the head of the group of euro-area finance ministers said, the Irish Times reported. “It is unthinkable that the EU will allow UK-based financial institutions full access to do business in the internal market without a sustainable coupling of future dynamic UK standards to the EU framework,” Eurogroup chairman Jeroen Dijsselbloem said in a speech in Brussels on Tuesday.

Forged seals, fake letters, and counterfeit documents. They’re all part of China’s recent spate of fraud coming to light in the country’s $3 trillion corporate debt market amid a rout that has analysts predicting a record number of defaults in 2017, Bloomberg News reported. As it becomes harder for Chinese companies to issue new notes to repay maturing debt, expect more scandals to come -- and to worsen the bond market’s already-precipitous downturn.

Reducing debt in 2017 may be the best course of action for SAP SE, The Wall Street Journal reported. The German software maker is not under much pressure to repurchase shares and make acquisitions, analysts say. Finance chief Luka Mucic told analysts on a conference call Tuesday that share repurchases are an option in the second half of the year, depending on the company’s cash position. Free cash flow increased 21% year-over-year to €3.63 billion ($3.89 billion). Net liquidity improved by almost €2.5 billion or 44% in 2016, Mr. Mucic said. Mark Moerdler, an analyst at Sanford C.