Headlines

Euro area inflation was unchanged in August and unemployment held steady for a second month in July as economic growth in the region slowed amid a persistent sovereign debt crisis, fresh data showed on Wednesday, the International Herald Tribune reported on a Bloomberg story. The inflation rate remained at 2.5 percent after falling to that level in July, the European Union’s statistics office in Luxembourg said. The seasonally adjusted jobless rate remained at 10 percent, a separate report showed. Eurostat revised March, May and June unemployment up to 10 percent from 9.9 percent.

Norwegian oil production equipment contractor Sevan Marine ASA Wednesday announced changes to its senior management as the company continues to struggle with its finances, reporting a $639 million net loss for the second quarter, Dow Jones Daily Bankruptcy Review reported.

Ireland’s unemployment rate nudged upwards for the third consecutive month in August, with the number of people on the seasonally adjusted Live Register increasing by 1,600 as summer jobs failed to materialise with their traditional frequency, the Irish Times reported. This pushed the standardised unemployment rate up by 0.1 per cent to 14.4 per cent last month. Overall, there were 469,713 people signing on the Live Register of jobseekers benefit and allowance claimants in August on an unadjusted basis, a rise of 2,790, or 0.6 per cent, over the year.

The receiver of Blockbuster Canada Co is seeking an order from the Ontario Superior Court to wind down the video rental company's operations and shut its 253 remaining retail stores, Reuters reported. Blockbuster Inc's Canadian unit, which used to operate nearly 400 stores in Canada, had filed for protection from a New York bankruptcy court in May, a month after its U.S. parent was acquired by Dish Network for $320 million.

Fears of a pronounced European slowdown strengthened on Tuesday after a closely-watched survey showed eurozone economic confidence tumbling at the fastest rate since late 2008, the Financial Times reported. The European Commission reported business and consumer confidence had dropped far more than expected in August, adding to evidence that growth across the 17-country bloc has stagnated, and threatening to fuel fears the region could fall into recession. It added to the pressure on the European Central Bank to keep interest rates firmly on hold.

Credit Suisse, the Swiss bank, has warned investors against buying shares in Greek banks. It was a conclusion reached after lengthy analysis of bank reserves, likely profits and relationship to the ailing Greek economy. But it hardly seemed necessary – there can be few investors queueing up to add Greek bank stock to their portfolio, The Guardian reported. That is the case for most European banks. Share prices have dived since last year and despite a few mini rallies, remain depressed. In March Credit Agricole shares topped €12; last week they were just above €6.

As policy makers from the U.S. and Europe gathered in Jackson Hole, Wyo., to discuss ways to revive a fragile global recovery, China's central bank was issuing a secret memo to further rein in lending in the world's second-largest economy, The Wall Street Journal reported.

U.K. entertainment rights company Chorion is on the brink of collapse and owner 3i Group PLC is expected to appoint Deloitte as administrator shortly, a person familiar with the situation told Dow Jones Newswires Tuesday, Dow Jones Daily Bankruptcy Review reported. 3i bought the owner of rights to such popular literary and entertainment brands as Enid Blyton's Noddy and the Agatha Christie crime novels in a GBP136 million ($221.5 million) buyout in May 2006.

German Chancellor Angela Merkel is weighing whether to yield to a demand by some lawmakers for a bigger voice in future debt bailouts as a condition to win her party's approval for a stronger euro-zone rescue fund, as a parliamentary vote on the issue was delayed a week, The Wall Street Journal reported. Granting the German parliament the right to approve or reject future bailouts could trigger similar demands from parliaments across the euro zone, whose lawmakers are closely observing Berlin's actions. That could lead to further delays in the EU's approval for the Greek rescue.

Hart Stores Inc. has obtained an initial order for court protection from creditors under the Companies' Creditors Arrangement Act, CanadianBusiness.com reported on a Canadian Press story. The company, which owns mid-sized department stores throughout Eastern Canada, said that the move will allow its locations to operate while it restructures. Hart Stores received approval from the Quebec Superior Court for protection under CCAA until Sept. 29, though extensions could be granted. RSM Richter Inc. was appointed as the monitor.