BRUSSELS - Europe has swung towards recession, with the eurozone economy shrinking for the first time since its formation and inflation hovering at a record high as the sharp global downturn takes hold.
BERLIN - Germany’s economy contracted for the first time for nearly four years in the second quarter of 2008, as demand for its exports fell and inflation hit consumer confidence.
PARIS - The French economy suddenly recoiled under global pressures in the second quarter, contracting by 0.3 per cent, raising a strong prospect of recession.
MOSCOW - A court in the Russian capital on Thursday barred the chief executive officer of oil company BP’s troubled Russian joint venture, TNK-BP, from office for two years, TNK-BP said.
WASHINGTON - The United States Federal Reserve said banks borrowed slightly more over the past week from its emergency lending program while Wall Street firms did not draw any loans for a second straight week.
NEW YORK - US banks JPMorgan Chase and Morgan Stanley joined other large banks in agreeing to buy back billions of dollars of stressed securities from investors, New York officials said.
LONDON - American Airlines, British Airways and Iberia of Spain said Thursday they had signed a commercial agreement to co-operate over flights between North America and Europe to help overcome soaring fuel costs.
CONCORD - New Hampshire securities regulators on Thursday accused Swiss banking giant UBS of defrauding the state’s leading issuer of student loans.
SEATTLE - Yahoo Inc said Thursday it will add the former chief executives of Viacom and Nextel Partners to its board of directors as part of the company’s deal to ward off a proxy fight with billionaire investor Carl Icahn.
WELLINGTON - Invercargill-based co-operative the Alliance Group said with sheep numbers declining around the world, Alliance was looking at supplying North American and European markets with South American lamb to meet demand.
WELLINGTON - Grocery co-operative Foodstuffs is understood to be one of several parties interested in buying liquor retailer Liquorland.
LOCAL NEWS
SYDNEY - Qantas said the steering of a Boeing 767 was affected as it landed at Sydney airport on Wednesday. A trail of hydraulic fluid was left along the runway, forcing closure for 40 minutes.
MELBOURNE - The review of Australia’s car industry by former Victorian premier Steve Bracks will be released in Melbourne today. The Federal report is expected to recommend a soft approach toward reducing tariff protection.
STOCKS TO WATCH ON THE AUSTRALIAN STOCK EXCHANGE TODAY:
LEI - LEIGHTON HOLDINGS LTD - in trading halt at $42.36
Leighton Holdings forecast that net profit would grow by at least 15 per cent this year, as Australia’s biggest construction firm continues to benefit from spending on infrastructure and resource development.
DJS - DAVID JONES LTD - up 39 cents to $4.04
David Jones upgraded its full-year profit guidance after increasing annual sales by 5.8 per cent.
SGP - STOCKLAND GROUP LTD - down 31 cents to $4.68
Property developer Stockland Group reported a fall in bottom-line annual profit and said it faces a tough market in the year ahead.
ORI - ORICA LTD - up 25 cents to $23.85
Orica, the world’s largest explosives maker, acquired a partner’s interest in the Samex joint venture in Peru for $US58.2 million ($A66.61 million).
FCL - FUTURIS CORPORATION LTD - up five cents to $1.30
Futuris Corp reported a 65.4 per cent fall in full-year profit and maintained its earnings guidance for the new year, saying agricultural markets remain strong.
ASX - ASX LTD - up 86 cents to $35.66
ASX Ltd, the owner of the Australian Securities Exchange, said it remains cautiously optimistic for the medium term after delivering a 16.9 per cent increase in annual profit.
PMP - PMP LTD - up 10.5 cents to $1.25
Printer PMP Ltd said it expects challenges in the current year after booking a 70.2 per cent lift in annual profit.
CDI - CHALLENGER DIVERSIFIED PROPERTY GROUP - untraded at 56 cents
Challenger Diversified Property reported full-year net profit down 41 per cent as the group’s portfolio value declined.
TBG - TUTT BRYANT GROUP LTD - down 9.5 cents to $1.40
Tutt Bryant Group said first-quarter net profit rose 17 per cent, in-line with expectations, and said it expects to achieve a strong full-year result.
UGL - UNITED GROUP LTD - up 12 cents to $13.24
Infrastructure services company United Group secured a 27-year, $100 million contract to provide facilities maintenance and operation management for the new Institute of Technical Education College West in Singapore.
PSA - PETSEC ENERGY LTD - up four cents to 50 cents
Gas producer Petsec Energy downgraded its full-year production forecast, with pipeline issues preventing output from its Main Pass 270 operation in the United States for longer than expected.
