Headlines

John Murray's electrical engineering firm here has made it through the recession thanks in part to work generated by local government contracts on projects like schools. Yet as the financial crisis winds down, Mr. Murray is "kept awake" by the idea that his prospects may get worse, not better, The Wall Street Journal reported. The reason: Even as Britain recovers from recession, it faces one of the largest budget deficits in the world at more than 12.5% of gross domestic product. That's nearly twice the deficit level it faced during the last major economic crisis of the early 1990s.

Canwest Global Communications Corp. said its Canwest Limited Partnership unit and certain subsidiaries have reached agreement with certain senior secured lenders to support a financial restructuring plan, Dow Jones reported. As reported, the embattled Winnipeg-based broadcasting and newspaper company reached agreement on a recapitalization plan last October, which led certain of its units, including CanWest Media Inc., Canwest Television L.P. and National Post Co., to file for creditor protection at that time.

The new Japanese finance minister toned down his call for a weaker yen after the prime minister rebuked him for comments that roiled currency markets, saying the government should refrain from such remarks. "In general, markets should determine" exchange rates, Naoto Kan told a news conference Friday. The comments marked a turnaround from Thursday, his first day in the post, when Mr. Kan said he wanted the Japanese currency "a bit weaker" and would work with the central bank to bring the rate "to appropriate levels." Mr.

Hopes that Saab will find a buyer rose on Friday after new bidders joined the race just before a deadline expired, despite prospects General Motors will close it down in the absence of a credible offer, Reuters reported. As Dutch luxury carmaker Spyker made an improved bid for the struggling maker of the 9-3 and 9-5 ranges, Formula One motor racing boss Bernie Ecclestone joined forces with Luxembourg-based private investment company Genii Capital to pitch a rival proposal.

Lloyds Banking Group is facing a loss of at least £200 million after Kilmartin, an HBOS-backed property company, went into receivership, the Times Online reported. Directors of Kilmartin Holdings, a Scottish group founded by Iain Wotherspoon, the property entrepreneur, handed over the company to PricewaterhouseCoopers (PwC), the accountant, yesterday, along with Kilmartin Property Group. Annfield Assets, another subsidiary, has gone into administration.

Iceland's efforts to join the European Union could be delayed by a referendum on terms for repaying Britain and the Netherlands following a banking collapse, the Spanish EU presidency said on Friday, Reuters reported. British and Dutch depositors in high-interest "Icesave" bank accounts lost their money when Iceland's entire financial system imploded in late 2008 under a heavy weight of debt. The government plans to hold a referendum on the issue late in February or early in March.

India's Reliance Industries Ltd has sweetened its offer to buy a controlling stake in LyondellBasell Industries that values the bankrupt chemicals firm at $13.5 billion, a source familiar with the situation told Reuters. But Lyondell's board has rejected Reliance's sweetened offer, said The Wall Street Journal, which first reported the raised offer. Reliance now probably has until sometime in February to make another offer, the paper said, citing people familiar with the matter.

London’s investment banks are luring back traders and analysts they lost to brokerage firms during the credit crisis, compensating for lower bonuses by as much as doubling base salaries, Bloomberg reported. “The banks are killing the boutiques,” said Daryl Bowden, co-chief executive officer of ICAP Plc’s equities unit in Europe and Asia. The London-based firm is the world’s largest broker of trades between banks. “They’re doubling salaries and offering above-average compensation.

The seasonally adjusted Live register rose to by 3,300 to 426,700 in December the highest level in almost 15 years, new figures from the Central Statistics Office (CSO) showed today, The Irish Times reported. Unemployment rose to 12.5 per cent in December, a 0.1 per cent rise on the 12.4 per cent recorded in the third quarter of the year by the Quarterly National Household Survey. Labour leader Eamon Gilmore said the increase cast "serious doubts" on Taoiseach Brian Cowen's claims that the recession has bottomed out and accused the Government of indifference.

Korea Development Bank (KDB) Chairman Min Euoo-sung called for dedicated efforts by the Kumho Asiana Group owner’s family to save the group, The Korea Times reported. The head of the state-run bank, which is one of the main creditors of the troubled group, said in an interview with Yonhap News that the owners or major shareholders of Kumho, who are responsible for the troubles facing the group, should make greater efforts for restructuring. “The group owner’s family agreed to provide all their shares, including their stake in Kumho Petrochemical, as collateral,” Min said.