Headlines

A U.K. minister in the ruling Conservative Party resigned after accusing Boris Johnson’s government of failing to properly root out fraud in a loan program introduced to help businesses though the pandemic, Bloomberg News reported.

Germany on Monday extended its current pandemic measures as the experts panel appointed by the government has warned the fast spreading Omicron coronavirus variant could bring critical infrastructure in Europe's biggest economy to a breaking point, Reuters reported. Chancellor Olaf Scholz said that he had agreed with the heads of the federal states to extend restrictions such as limiting private gatherings to 10 ten people and requiring proof of booster vaccination or a negative test at restaurants. "Now it's time to stay on course," said Scholz after a meeting on Monday.

Germany's flagship carrier Lufthansa is in talks to buy a 40% stake in state-owned Alitalia's successor ITA Airways, two people familiar with the negotiations said on Sunday, following a newspaper report that a deal could be unveiled next week, Reuters reported. The talks about a tie-up between Germany's partly state-owned Lufthansa and ITA Airways are still ongoing with all outcomes possible, one of the sources said on condition of anonymity, adding the stake price was still under negotiation.

Canadian Prime Minister Justin Trudeau on Monday accused conservative politicians of stoking fear that COVID-19 vaccine mandates for cross-border truck drivers are exacerbating supply chain disruptions and fueling inflation, Reuters reported. The United States imposed a mandate, meant to aid the fight against the fast spreading Omicron variant of the coronavirus, on Jan. 22, while Canada's started on Jan. 15. The trucking industry has warned the measure will take thousands of drivers off the roads during what is already a dire labor shortage in the industry.

NATO allies are bolstering the alliance’s eastern flank in response to Russia’s military buildup around Ukraine, as the European Union set out plans for loans and grants for Kyiv worth more than $1.3 billion, the Wall Street Journal reported. The moves are part of sharpening efforts by the U.S. and its allies to gird for what they believe could be an imminent military invasion of Ukraine, which Russia denies it is planning.

The International Monetary Fund approved a $455 million loan for Republic of Congo to support the country’s economic recovery from the Covid-19 pandemic and a tumble in oil prices, Bloomberg News reported. The IMF executive board approved the package under a new three-year Extended Credit Facility arrangement, the lender said in a statement Friday. The decision will enable an immediate disbursement equivalent to about $90 million. “Reducing debt vulnerabilities while implementing fiscal policy that supports a strong and equitable economic recovery will be key,” the fund said.

Brazilian power company Companhia Energetica de Sao Paulo (CESP) on Monday said its board of directors has approved terms of a deal with conglomerate Votorantim SA and Canada Pension Plan Investments Board (CPPIB) to merge the trio's energy assets in Brazil, Reuters reported. CESP is expected to become a full subsidiary of Votorantim and CPPI's joint venture VTRM Energia once the deal is closed. The terms of the transaction, which valued CESP at about 9.1 billion reais ($1.67 billion), were disclosed this month. The company has also scheduled a shareholder meeting for Feb.

Future Retail Ltd. isn’t in a position to make a payment on 35 billion rupees ($471 million) of past-due debt before the grace period expires and will also miss an upcoming $14 million bond coupon deadline, Bloomberg News reported. Its dollar bond fell following the news, suffering its biggest decline in about three weeks on Friday. Embroiled in a legal dispute with Amazon.com Inc. that has damaged its ability to raise funds, the Mumbai-based retailer is coming up against two key milestones that will test creditors’ faith after its onshore debt was restructured during the pandemic.

The provincial government leading China Evergrande Group's restructuring wants to separate the company's offshore assets and sell them to pay off foreign debt, a media report said on Friday, in a boost to foreign lenders' hopes of recouping funds, Reuters reported. Financial intelligence provider REDD said on Friday that the provincial government in Guangdong, where Evergrande is based, aimed to release a framework debt restructuring plan by March that could also wipe out the 60% stake of the group's chairman.

China Aoyuan Group Ltd. was downgraded to restricted default by Fitch Ratings two days after the Chinese developer flagged its intention to renege on debt obligations, Bloomberg News reported. Aoyuan hasn’t provided further information to the rating agency beyond its announcement that it won’t make payments on four dollar bonds, which would trigger defaults on all other offshore debt, Fitch said in a statement Friday. Earlier in the day, Moody’s also withdrew its ratings on the builder citing insufficient information.