Headlines

Germany’s new finance minister, the veteran conservative politician Wolfgang Schäuble, moved swiftly Sunday to assert his power and tell his compatriots and the world that the finances of the largest European economy were dire and would take years to mend, The New York Times reported. Using the pulpit of the conservative newspaper Welt am Sonntag, Mr. Schäuble warned that there was no chance to balance the budget in the next four years of the new center-right coalition government headed by Chancellor Angela Merkel.

A note from Goldman Sachs said it all. The U.K.'s latest gross-domestic-product data showing the economy shrunk by 0.4% in the third quarter and by 5.2% over the past year was "Unbelievable. Literally." This result wasn't just at odds with the Bank of England's 0.2% growth forecast but was out of line with recent survey data showing economic pickup, The Wall Street Journal reported. If the official statistics are right, then the U.K. is in more trouble than the market thought. A sixth consecutive quarter of economic contraction would confirm this as the worst U.K.

Liabilities at Japan Airlines Corp would exceed its assets by as much as $8.8 billion if Asia's largest airline by revenues were liquidated, a source with direct knowledge of the matter said on Friday, Reuters reported. The estimate of JAL's negative net worth, calculated by a government-led task force in charge of its restructuring, underscores the depth of the problems facing the airline as it seeks aid from banks and the state to avoid bankruptcy.

Initial data on British third-quarter growth showed the economy there remained mired in recession, while releases from the euro area Friday presented a picture of steadily improving activity, The New York Times reported. The large debt burden on British consumers is the main reason for the divergent performance, analysts said. A preliminary release from the Office of National Statistics in London showed gross domestic product contracted by 0.4 percent between July and September from the previous three months and shrank by 5.2 percent compared with a year earlier.

After a burst of deficit spending, Chancellor Angela Merkel has been determined to reduce Germany’s indebtedness, the Financial Times reported in a commentary. This year she had the constitution amended to limit federal government structural deficits to 0.35 per cent of gross domestic product. While the ceiling does not come into force until 2016, deficits must start coming down as soon as 2011 – inconveniently for Ms Merkel’s CDU and her soon-to-be coalition partner the FDP, who together won the September elections on promises of tax cuts.

For bankers, traders and deal makers at the world's major banks, there may be nowhere to hide from new restrictions on how much they can earn, The Wall Street Journal reported. One criticism of the pay restrictions is that they will push the most talented executives to take positions at foreign-owned banks overseas, but most of the countries that host major financial hubs are considering tougher restrictions.

Jaguar Financial Corp. is opposing a proposed $192-million takeover of base metals company Canadian Royalties Inc. by Jien Canada Mining Ltd., saying it's unfair to debtholders, The Canadian Press reported. Canadian Royalties, a Quebec-based company that's developing the Nunavik nickel project, announced last week it has a friendly deal to be acquired by Jien. Jien is offering 80 cents per share for 102 million common shares of Canadian Royalties and $800 per $1,000 principal amount of debentures issued by the Val-d'Or-headquartered company.

European Union governments face a possible increase in their debts of €814.23 billion ($1.221 trillion) as a result of their efforts to support their banking systems in 2008, the EU's official statistics agency said Thursday, The Wall Street Journal reported. In its twice-yearly review of government finances, Eurostat said the increase in debt for the EU's 27 members could amount to €814.23 billion in 2008, if all the commitments made to support banks were called upon.

The Securities Commission Malaysia has obtained a court order for the appointment of BDO Binder Malaysia as a receiver over the affairs, assets and properties of RBTR Asset Management, Bernama.com reported. The order also includes the assets and properties held RBTR on behalf of its clients. The SC in a statement Friday, said the court order from the Kuala Lumpur High Court, was obtained on Oct 20. The appointment of a receiver was sought by the SC following an audit exercise on RBTR which raised concerns on the protection of clients' assets.

Postal and logistics company Deutsche Post AG said Thursday that its DHL express unit is expected to lose 400 jobs in Germany after the closure of mail-order business Quelle, part of bankrupt retailer Arcandor AG, Forbes reported on an Associated Press story. The Bonn-based Post said it planned to close three German logistics locations in Bochum, Nuremberg and Lehrte that worked as the sole logistics provider for Quelle. It was still unclear when the DHL employees would lose their positions, Deutsche Post said.