Headlines

Prime Minister Justin Trudeau’s government is expanding the number of businesses that can use Covid-19 aid programs as the omicron variant fuels a surge in cases and new restrictions in Canada, Bloomberg News reported. At a press conference with Finance Minister Chrystia Freeland, Trudeau said companies and individuals affected by new capacity limits will be eligible for extended financial help. Firms can receive wage and rent subsidies of 25% to 75% depending on how much revenue they’ve lost, the government said in a statement.

Brazil's central bank has put the brakes on tougher regulations for the burgeoning fintech industry, withdrawing a draft proposal that had been set to be voted on last month by the government's top financial policy-making body, four sources familiar with the matter told Reuters. On Nov. 18, the central bank proposed that the regulations be discussed at an extraordinary meeting of the National Monetary Council (CMN) but the new rules - which look to level the playing field between fintechs and traditional banks - were never voted on, the sources say.

The European Central Bank could raise rates as soon as the end of next year, and calling an end to bond purchases would be a strong signal that the move is coming in the next two quarters, Governing Council member Robert Holzmann said on Wednesday, Reuters reported. The ECB last week took another step in rolling back crisis-era stimulus, saying it would end emergency bond purchases in March but temporarily double the pace of its longer-running Asset Purchase Programme (APP) to ease the transition.

Italy is facing fresh questions about the viability of its debt as the European Central Bank dials back emergency support that has helped the euro zone's most indebted economies survive the coronavirus pandemic, Reuters reported. Fighting the economic and health crisis has been expensive, with governments digging deep to help businesses and households. Italy's public debt has increased from 134.8% of GDP in 2019 to a targeted 153.5% this year.

The Italian Sea Group said on Wednesday that it had bought bankrupt luxury yacht maker Perini Navi for 80 million euros ($91 million) in an auction held by a court in Lucca, Tuscany, Reuters reported. Italian yacht makers Ferretti Group and SanLorenzo (SNL.MI) had also offered to buy the luxury sailing brand Perini Navi, which was declared bankrupt in January.

The German government made billions of euros from debt issuance this year thanks to negative interest rates on its securities, according to a letter, seen by Reuters, from Finance Ministry State Secretary Florian Toncar to a left wing lawmaker, Reuters reported. When issuing federal securities to finance the budget and special funds, "payments amounting to around 5.855 billion euros were collected", according to Toncar's letter in response to a question from Christian Goerke, of the far-left Linke party.

Europe’s energy crunch shows little sign of easing. Natural gas markets, the root of the problem, remain on edge because supplies are tight, and traders doubt whether the continent has enough of the fuel stored to last a cold winter without disruption, the New York Times reported. The buildup of Russian troops on the border of Ukraine, through which Russian gas flows to the West, also has added to concerns about whether gas will run out. Already, low volumes of gas from Russia, Europe’s main source of imports of the fuel, have helped raise prices in recent months.

Britain announced 1 billion pounds ($1.3 billion) in grants and other aid to help the hospitality industry survive the onslaught of the omicron variant of COVID-19, bowing to days of pressure from pubs, restaurants and other businesses that complain public health warnings have torpedoed the vital Christmas season, the Associated Press reported. Businesses in the hospitality and leisure sectors in England will be eligible for one-time grants of up to 6,000 pounds ($7,954) each.

An independent watchdog will oversee the UK insolvency sector, ending decades of self-regulation, as part of a proposed government shake-up of the industry in the wake of a series of scandals, the Financial Times reported. The plans, published on Tuesday, would streamline the regulation of 1,600 licensed insolvency practitioners in England, Scotland and Wales by replacing the four professional bodies to which supervision is currently devolved.

Spain's government proposed on Tuesday to reform its insolvency law to simplify bankruptcy proceedings and meet a major condition agreed with Brussels to obtain European Union recovery funds, Reuters reported. The current insolvency system has been criticised by organisations such as the International Monetary Fund for being slow and convoluted, often driving companies to wind up.