Headlines

The European debt crisis is hitting home in the oil-rich Gulf as companies struggle more than ever to hammer out large-scale restructuring deals with international banks, prompting concerns over a wall of refinancing required this year, the Financial Times reported. With the prospect of about $25bn in bonds and sukuk maturing in the region this year, bankers are becoming increasingly concerned that casualties will emerge.

British retailer Past Times said it had appointed administrators, as the seller of nostalgia-themed gifts joined fashion shop Peacocks in becoming the latest victims of difficult trading conditions on the high street. Administrators KPMG said on Monday, Past Times, which trades from 51 remaining stores after the recent closure of 46 shops, would be wound down if a sale could not be concluded. The group had been granted a stay-of-execution for last-minute talks with a potential rescuer, a source told Reuters on Tuesday.

Portugal's black economy expanded to a quarter of GDP in 2010, denying the debt-ridden country much-needed tax revenues, and probably grew further last year after tax rises, according to a new study, the Irish Times reported. The estimated 2.5 per cent increase in the shadow economy in 2010, although modest, is bad news for the centre-right government which has been implementing painful austerity measures under a €78 billion EU-IMF bailout to cut the budget deficit and rein in rising debt.

France and eight other euro-zone countries suffered ratings downgrades on their sovereign debt Friday, sparking renewed global worries over Europe's ability to bail itself out of financial crisis, The Wall Street Journal reported. Standard & Poor's Ratings Services stripped triple-A ratings from France and Austria and downgraded seven others, including Spain, Italy and Portugal. It retained the triple-A rating on Europe's No. 1 economy, Germany.

Greece will resume talks with its private-sector creditors next week on a massive debt restructuring plan, with an aim to reach the outlines of a deal in time for a Feb. 23 meeting of euro-zone finance ministers, The Wall Street Journal reported. In remarks to fellow socialist party members, Finance Minister Evangelos Venizelos insisted the talks will resume in the coming days despite breaking down Friday amid disagreements over the future interest rate Greece will pay.

Walk softly. Global growth looks to be smoothly downshifting as China slows, the U.S. economy firms, and troubled Europe, at least for now, avoids a messy crash, Reuters reported. Ratings downgrades on nine euro zone countries by Standard & Poor's late Friday - including France, Italy and Spain - sent a shiver through financial markets. But the move was long telegraphed, likely limiting any spillover. A global economy slowing only gently would be an immense relief after a fraught end to 2011, but it is far from guaranteed.

Argentine supermarket chain Eki is in talks to sell about 25 of its large format stores to China's Yonghui Superstores Co., according to a person familiar with the matter, Dow Jones DBR Small Cap reported. "They already export wine and other [Argentine] products to China and are interested in expanding outside of China," said an Eki executive, who asked not to be named because of the confidential nature of the talks.

Britain will encourage greater worker ownership in companies to counter the "crony capitalism" that contributed to the 2007/8 financial crisis and tipped the country into recession, Deputy Prime Minister Nick Clegg said on Monday, Reuters reported. An "unrestrained economic elite" driven by short-termism and recklessness had brought the economy to the edge and had to be restrained by a more responsible capitalism, Clegg said in extracts of a speech released in advance by his office.

Distressed debt investors are circling General Healthcare Group, in expectation that the UK’s largest private hospital operator by revenue will be forced to restructure its heavily indebted financial set-up, the Financial Times reported. GHG operates 70 hospitals and treatment centres across the country and employs 15,000 people. But the company was straddled with £1.9bn of gross debt in the 2006 acquisition by Netcare, the South African healthcare group; Apax Partners, the private equity investor; and two property investors.

The European Central Bank said on Thursday there were “tentative” signs of economic stabilisation in the eurozone as successful Spanish and Italian government bond auctions also pointed to at least a temporary easing of the region’s debt crisis, the Financial Times reported. Although Mario Draghi, ECB president, tempered his cautiously optimistic tone by saying that financial market tensions continued to hit eurozone economic activity, markets reacted positively to his comments and the bond auctions. The euro gained almost 1 per cent against the US dollar.