Headlines

The recent highly-publicised suicides at France Telecom may or may not be statistically unusual. But they have certainly caught attention and lifted the lid on the high levels of depression among French workers, the BBC reported. A crisis meeting between French Labour Minister, Xavier Darcos, and France Telecom's chief executive, Didier Lombard illustrated that both sides have begun to regard the industrial suicide problem very seriously.

Italy's biggest carmaker, Fiat SpA, expects the restructuring of U.S. carmaker Chrysler Group LLC to initially progress slowly, although it forecasts a significant improvement next year, Chief Executive Sergio Marchionne said Wednesday, Dow Jones reported. Chrysler will start reporting as a normal company from the end of 2009, Fiat's chief executive told reporters at the Frankfurt motor show. Fiat is scheduled to present the plan for Chrysler by the end of November, he added. Marchionne also confirmed Fiat's 2009 targets.

José Manuel Barroso on Wednesday won a parliamentary vote endorsing his second term as European Commission president, confounding his critics by securing a larger-than-expected majority, The New York Times reported. The European Parliament voted 382 to 219 to approve Mr. Barroso, who was the only candidate for the post and already had the unanimous support of the head of all 27 member states. There were 117 abstentions.

The U.K. and Belgium on Monday demanded the European Commission scrutinize the sale of General Motors Co.'s European operations to a consortium led by car-parts maker Magna International Inc. to ensure that rules on government aid aren't breached, The Wall Street Journal reported. The governments of both nations fear that GM factories in their countries will bear the burden of job losses that the deal will bring. Magna confirmed Monday it plans to cut 10,500 jobs from GM Europe's work force of about 50,000.

Austrian air bag technology company iSi Automotive GmbH has reached a deal to acquire a significant portion of bankrupt auto parts maker Delphi Corp.'s European air bag assets, the company revealed Monday, Bankruptcy Law360 reported. Read more. (Subscription required.)

After simmering over the summer, the issue of pension reform is heating up again in Ottawa, the Financial Post reported. This week, several groups have made the trek to Parliament Hill to urge improvements to Canada's pension system, including changes to the bankruptcy act and the creation of a new supplemental pension fund. With a possible election looming this fall, various special interest groups are hoping to shape the debate.

Nortel Networks, which has been operating under bankruptcy protection since January, has selected Avaya as the successful bidder for its segment that makes communications systems for businesses, The Associated Press reported. Basking Ridge, N.J.-based Avaya Inc. will pay $900 million in cash for Nortel Enterprise Solutions and contribute $15 million to an employee retention program. Avaya had previously made a "stalking horse" bid of $475 million for the unit in a court-supervised bankruptcy auction. Canada-based Nortel Networks Corp. expects the deal to close in the fourth quarter.

Serbia will have to lay off about a fifth of its public sector -- 14,000 employees -- to meet conditions set by the International Monetary Fund to receive more financial aid, an official said Monday. Serbia's Finance Minister Diana Dragutinovic said it is planning cost cuts before the government resumes its talks with the IMF on Oct. 20, The Wall Street Journal reported.

Even as France and Germany begin to show signs of economic recovery, weaker members of the European common-currency union remain mired in recession, The Wall Street Journal reported. The euro is at its strongest level against the dollar this year, and interest rates suggest investor fears over a debt default by a euro-zone member have eased since earlier in the year. Despite this, the euro zone's toughest times could lie ahead. To understand why, it is worth taking a look at Spain.

Bankrupt petrochemicals maker LyondellBasell is planning a stock offering to raise funds so it can exit bankruptcy protection, according to documents filed with the bankruptcy court last week, Reuters reported. Lyondell, which was forced to seek bankruptcy in January amid a sudden cash crunch, filed its Chapter 11 reorganization plans with the New York bankruptcy court on Friday.