Headlines

Five years after its controversial creation, the Hilltops Council in southern NSW has backed a motion to implement tough budget cuts in a bid to balance the books, ABC.net reported. The council was formed in 2016 by the amalgamation of the Boorowa, Harden, and Young Shires. Since then, it has struggled financially and the motion passed at this week's meeting is designed to balance the books through a number of cost-cutting measures. It came after general manager Anthony O'Reilly warned: "continued annual deficits are unsustainable".

Europe would do more harm than good if it turns off its state-aid taps too soon in the wake of the coronavirus pandemic, the region’s top subsidy enforcer warned, Bloomberg News reported. Olivier Guersent, the head of the European Commission’s competition service, said that even firms that have weathered the storm without needing state handouts could still be dragged down if the rules are tightened before the crisis has abated.

Higher inflation and supply chain bottlenecks will last longer than expected in Europe, the head of the eurozone’s central bank said on Thursday, the New York Times reported. But Christine Lagarde, the president of the European Central Bank, insisted that the price rises would be temporary, and she said suggested that financial markets were wrong to expect an increase in interest rates next year. “While inflation will take longer to decline than previously expected, we expect these factors to ease in the course of next year,” Ms. Lagarde told reporters.

Britain’s top finance official laid out a vision for the country’s post-pandemic economy on Wednesday as he announced plans to spend on education, the National Health Service and job skills. But his plans risk being overshadowed by the recent rise in inflation and supply chain disruptions that are weighing on the pandemic recovery, the New York Times reported. “Today’s budget does not draw a line under Covid; we have challenging months ahead,” Rishi Sunak, the chancellor of the Exchequer, told lawmakers in Parliament on Wednesday.

German consumers face a rise in prices for goods across the board as more and more companies in Europe's largest economy pass on higher production costs, driven by widespread supply shortages and a spike in energy prices, Reuters reported. While the development is helping firms to improve corporate margins after the coronavirus shock, consumers are feeling the pinch of higher prices, which could hurt household spending and ultimately domestic demand if wage growth is not keeping up.

Fashion brands and airlines are creeping back into investors' good graces in Asia as lockdowns ease and vaccination rises, boosting travel and leisure activities, taking some shine off pandemic stalwarts such as supermarkets and gadget makers, Reuters reported. Earnings report cards show that people are spending less time watching TV or shopping online for groceries as they resume dining out or plan vacations after emerging from coronavirus curbs. Luxury purchases from China's big spenders, still unable to travel abroad, are also rebounding.

Cryptocurrency firms could be forced to take greater steps to combat money laundering under new guidelines released on Thursday by the Financial Action Task Force, an international body that coordinates government policy on illicit finance, the Wall Street Journal reported. The task force called on governments to broaden regulatory oversight of crypto firms and force more of them to take measures such as checking the identities of their customers and reporting suspicious transactions to regulators.

Avianca Holdings SA asked a judge for permission to exit bankruptcy under a plan that the airline says will eliminate about $3 billion in debt and preserve over 10,000 jobs, Bloomberg News reported. Latin America’s second-largest airline before the pandemic presented its restructuring plan at a hearing in New York Tuesday. If approved, the 102-year-old company is eyeing an exit from bankruptcy this year. U.S. Bankruptcy Judge Martin Glenn appeared to side with the company when a handful of objectors claimed the proposal wrongly favored some creditors over others.

Offshore driller Seadrill Ltd on Tuesday obtained court approval for its reorganization plan, clearing the way for it to emerge from bankruptcy, Reuters reported. Offshore driller Seadrill Ltd yesterday obtained court approval for its reorganization plan, clearing the way for it to emerge from bankruptcy. U.S. Bankruptcy Judge David Jones in Houston signed off on the plan during a virtual hearing. Under the plan, creditors will exchange $4.9 billion in debt for equity in the company. Seadrill will also raise $350 million in new financing.

U.K. Chancellor of the Exchequer Rishi Sunak unleashed 75 billion pounds ($103 billion) of giveaways in a budget that defied predictions for fiscal restraint, pinning the path of future spending to predictions for a rapid economic growth, Bloomberg News reported. Sunak slashed taxes for pubs and restaurants, cut duties on alcohol and handed more income to some of the nation’s poorest families in a statement to Parliament on Wednesday. He also earmarked billions of pounds more for infrastructure, education and worker skills, boosting the budget for every government department.