Headlines

The economic impact of sodden summer was laid bare on Thursday by dire news from major retailers showing that torrential rain had hurt already weak demand in an economy showing few signs of pulling out of recession, Reuters reported. Shops selling everything from home-improvement items to sportswear and goods for mothers and babies were hit. Official retail data also indicated that celebrations to mark Queen Elizabeth's Diamond Jubilee failed to provide the much hyped and hoped-for boost to spending, raising the question of whether the London Olympics will get the shop tills ringing.

Germany's parliament is expected to give broad backing on Thursday to a European aid package for ailing Spanish banks, but the government left nothing to chance this week and appealed to citizens and lawmakers in Internet video messages and local media to support the bailout, The Wall Street Journal reported.

Spain's housing and banking sectors continue to deteriorate, government data showed Wednesday, providing the latest indication that the country's economy remains caught in a protracted recession, The Wall Street Journal reported. House prices in the second quarter declined at the fastest pace since the start of the crisis, the public-works ministry said, while bank deposits saw a record decline in May from a year earlier, and bad loans increased for a 14th month in a row, the Bank of Spain reported.

Greek political leaders have identified two-thirds of the spending cuts demanded by international creditors as a condition for resuming loan disbursements, but they sounded a warning over rising poverty levels as the country’s five-year recession continues unabated, the Financial Times reported.

MF Global's European administrator KPMG has won the backing of the British High Court to return 54 million pounds ($84 million) of client assets next month in an early victory for creditors seeking over 1 billion pounds of assets, Reuters reported. KPMG, made special administrator when the broker collapsed in October last year, said on Wednesday the High Court had approved its distribution plan, meaning the administrator can start returning the assets on Aug. 1.

Woori Financial Group audited its biggest subsidiary Woori Bank for two months, according to officials Wednesday, The Korea Times reported. The holding company found 30 insolvent loans worth 10 billion won from May 7 to July 6, and plans to punish those who authorized them. It is rare for a holding company to audit its subsidiary for over 40 days. The nation’s largest financial group said the move was due to the increasing number of nonperforming loans from Woori Bank compared to its counterparts and the company was concerned that its share prices would decline.

German mail order company Neckermann said it will file for insolvency, after its private equity owner refused to stump up the cash for a restructuring, adding to woes in the German retail sector, Reuters reported. The insolvency follows that of drugstore chain Schlecker, and comes as retailers from Metro to Praktiker and Puma grapple with lower consumer spending in Europe as a result of the region's debt crisis.

Greece is seeking extra money from its international creditors to cover a coming bond redemption in late August, as a deeper-than-expected recession drives the country's fiscal-consolidation program off course for 2012, The Wall Street Journal reported. With Athens hoping to avoid introducing additional cutbacks for this year, which would further weigh down economic activity, the government is putting together a plan to save €11.5 billion ($14 billion) over the next two years in line with demands from international creditors.

Brendan Howlin, minister for Public Expenditure and Reform, yesterday announced the Government’s plans for an additional €2.25bn investment in job-rich public infrastructure projects in Ireland, Finfacts reported. He said the projects selected a number of sectors and will be spread throughout the country. This will help to maximise the benefits to communities and to meet clearly identified local needs. The 13,000 jobs appear to be a back of an envelope job.

Spain's new central bank chief said the bank failed to act swiftly after the country's housing market crashed half a decade ago, a rare show of self-criticism of national institutions that comes as Spain enters the last stretch of negotiations on the details for a banking bailout, The Wall Street Journal reported. Bank of Spain Gov. Luis Maria Linde's speech in Parliament on Tuesday was his first significant statement since he was appointed by conservative Prime Minister Mariano Rajoy a month ago, replacing Miguel Ángel Fernández Ordóñez , a Socialist appointee.