Headlines

Greece and its creditors start a fresh round of talks this week on reforming its labour market, a tricky task for a leftist government sliding in opinion polls but needed if the recession-hit state can ever win debt relief, Reuters reported. Prime Minister Alexis Tsipras was re-elected a year ago promising to fight to revive collective bargaining and resist reforms that may lower the minimum wage.

Portugal’s “anti-austerity” government has unveiled a draft budget for 2017 that seeks to raise pensions, reduce income tax and increase support for the poor without running foul of EU deficit rules, the Financial Times reported. António Costa, the prime minister whose minority Socialist government depends on the hard left for its survival, hopes the plan will lay to rest investor fears that Portugal could be at risk of needing a second bailout, an idea he dismisses as “nonsense”.

China is in the midst of a dizzying housing bubble. Shanghai’s average housing price is up nearly one-third from a year ago, with prices in major cities like Beijing and Guangzhou not far behind. Chinese consumers are rushing to buy homes before the government steps in with restrictions, the International New York Times reported. When rumors swept through Shanghai that the government would require homeowners to pay more in taxes and down payments to buy additional properties, many couples filed for divorce so that one partner could still be treated as an independent buyer.

Debt-ridden Hanjin Shipping Co. will reach out to major European shipping companies as early as this week to tap interest for at least five of its vessels as it tries to raise funds to unload stranded cargo, pay off creditors and re-emerge as an Asia regional carrier, people involved in the matter said, The Wall Street Journal reported. “The sale sign is up,” one of those people said. “They will reach out to Maersk Line, Mediterranean Shipping Co.

Marco Polo Marine’s noteholders have voted to approve a restructuring S50m ($36m) of the Singapore-listed company’s debt, which will give the offshore supply vessel operator breathing space. As a result of the vote, the ordinary maturity date of the notes will be extended by three years. Additional interest will be paid on the notes at a rate of 1.5% per annum, which is payable in two installments.

Sino-Europe are going to complete AC Milan’s takeover by the 15th of November and new CEO Marco Fassone will be flying to China where he will meet owners and new potential sponsors for the new club’s course. According to Sole 24 Ore, however, new owners are not going to intervene in the club’s € 220 million debt, but American investment banking will do it instead. Goldman Sachs will reportedly manage the shareholding reorganization of Milan.

A surge in overseas lending has left Chinese policy banks highly exposed to countries at risk of default, forcing a rethink that could reshape its engagement with developing economies. A Financial Times analysis shows that six of the 10 biggest recipients of Chinese development finance between 2013 and 2015 are considered to be most at risk of default using an Organisation for Economic Co-operation and Development measure. By contrast only two of the top 10 recipients of World Bank development loans between 2011 and 2015 were in the same risk category.

A typical big company is chock-full of bosses, from the basement mail room all the way up to the executive suite. Even at the top, those in charge sometimes have to answer to big investors pushing for change, the International New York Times reported. China has said it wants to make its bloated state-owned companies more like that: Hungry, results-oriented and responsive to shareholders. But this week, China’s top leader made clear to the chiefs of the country’s biggest companies that there is only one boss who matters.

A hard Brexit would put 1,400 more UK companies into insolvency than a soft Brexit, according to new forecasts, the Financial Times reported. Compared with this year, by the end of 2019 the number of failing companies could jump almost a third to more than 26,000 if the UK leaves the EU with no new trade agreement in place, says Euler Hermes, which insures companies against the risk that creditors will not be able to pay their debts. A hard Brexit — a complete break with no access to the single market — would increase the risk of more bankruptcies, it says.

A centuries-old tapestry factory in Spain has come back from the brink of bankruptcy after an injection of public money, a debt restructuring plan and its biggest order in 200 years - a German commission for dozens of tapestries. The turnaround of the 296-year-old Royal Tapestry Factory in Madrid is a rare bright spot for Spanish companies facing insolvency. Nearly 50,000 businesses have entered administration since the start of the country's economic downturn in 2008.