Below are headlines that have come across our desks in the past day and are worthy of note.
CFR: “Franco-German Misstep on Eurozone” – The Franco-German accord may be a fine idea, but treaty change would probably take years–and might even prove impossible.
Reuters Breakingviews: “ECB bazooka may be short on credibility ammo” – Whatever form the ECB’s intervention takes, its success will depend on the depth of political commitment to greater integration in the euro zone. The weaker the political cover the ECB receives, the more investors will test it.
CNN: “BP says Halliburton ‘intentionally destroyed evidence’ after Gulf oil spill” – BP is accusing Halliburton of having “intentionally destroyed evidence” related to the explosion aboard an oil rig in the Gulf of Mexico that led to the worst oil spill in U.S. history.
Guardian: “Olympus inquiry blames executives and auditors” – An independent panel has issued a damning report into the £1.1bn accounting scandal at Japan’s Olympus, urging legal action against executives behind the cover-up and the replacement of others who knew about it.
Reuters: “Russian markets unnerved by post-election fallout” – Russian stocks and the rouble extended losses late on Tuesday as investors were unsettled by the political fallout from a drop in the ruling United Russia party’s majority at Sunday’s parliamentary election.
Moscow Times: “Rusnano and EBRD Plan $380M Glass Factory” – Rusnano and the European Bank for Reconstruction and Development joined forces to invest 2.8 billion rubles ($90 million) and 1.4 billion rubles, respectively, into a glass-manufacturing plant to be built in the Moscow region.
Reuters: “Samsung plans flash chip line in China” – Samsung Electronics said on Tuesday it plans to build a flash memory chip plant in China, seen costing some $4 billion, as a boom in smartphones and tablet computers is set to fuel the $22 billion chip industry’s growth next year.
BBC: “HSBC faces £40m bill for mis-selling to elderly in care” – HSBC has been fined £10.5m by the City watchdog for mis-selling investment bonds to elderly people in care. Unsuitable sales of this product were made to 87% of NHFA customers, prompting the largest retail fine to date from the Financial Services Authority (FSA).
Bloomberg: “China Steel Seeking First-Quarter Iron Ore Price Cuts” – China Steel Corp. (2002), Taiwan’s largest steelmaker, is in talks with iron ore suppliers to cut first- quarter prices amid declining demand.
Bloomberg: “Esprit CFO Resigns Amid Rebuilding Efforts” – Esprit Holdings Ltd. (330) Chief Financial Officer Chew Fook Aun quit for personal reasons as the largest Hong Kong-listed apparel company seeks to revive earnings after profit plunged 98 percent last fiscal year.
Reuters: “Retail volte face confirms India as BRIC that disappoints” – Jim O’Neill, the Goldman Sachs banker who coined the term BRICs to capture the fast-growing emerging-markets quartet of Brazil, Russia, India and China, has fingered India as the BRIC that has disappointed the most over the past decade in terms of reforms, FDI and productivity. New Delhi’s latest decision to put on hold a landmark reform of its retail sector will only confirm this view.
BBC: “RIM investigated after sale turns into stampede” – Blackberry maker Research in Motion (RIM) has said it will co-operate with Indonesian authorities after a product launch turned chaotic, injuring dozens.
Bloomberg: “Brazil’s Economy Contracts as Rousseff Cuts Taxes, Rates to Boost Demand” – Brazil’s economy shrank in the third quarter, prompting the government to slash its growth forecast for the year, one week after announcing stimulus measures to contain the spillover from Europe’s debt crisis.
Bloomberg Businessweek: “Mexican Exchange to Consider Joining Mila Stock Combination” – Bolsa Mexicana de Valores SAB, the operator of Mexico’s securities exchange, will consider joining the Chilean, Colombian and Peruvian bourses in Latin America’s first stock market combination.
Middle East & Africa
Reuters India: “Dubai may use sovereign fund to repay debt” – Dubai, which narrowly averted a bond default in 2009, could use money raised by its sovereign wealth fund to help repay $3.8 billion in bonds owed by state-linked firms which mature next year, a source familiar with the matter said on Tuesday.
Reuters Africa: “S.Africa considers issuing Islamic bonds” – South Africa’s National Treasury is considering issuing Islamic bonds to diversify its investor base and could have its first sukuk in the market as early as the next financial year if approved.
Bloomberg: “Visa Develops Rwanda Payment Network” – Visa Inc., the world’s biggest bank- card network, agreed to help develop Rwanda’s payments system and connect the African nation’s 11 million citizens to the global economy as the firm pushes to boost non-U.S. revenue.