4th August 2011
From Reuters, with financial markets in turmoil and economic growth slowing, policymakers around the world may once again be forced to cooperate to try to head off a crisis, as they did successfully in 2008-2009. But this time, they have fewer good options.
The New York Times is discussing luxury goods, even with the economy in a funk and many Americans pulling back on spending, the rich are again buying designer clothing, luxury cars and about anything that catches their fancy.
In the Telegraph, Lloyds Banking Group, the part-taxpayer owner bank, has fallen to a £3.25bn first-half loss after setting aside billions to compensation customers who were mis-sold payment protection insurance (PPI).
Japan has followed in Switzerland's footsteps and intervened to stem the strength of its currency, which has been boosted by investors seeking safe-haven investments, reports the Guardian.
And the Financial Times is reporting success for the Bank of Japan, the yen has fallen after Tokyo intervened to weaken the currency in the latest move by a central bank to combat the impact of recent market turmoil.
More woes for the eurozone from the BBC News, debt-laden Italy is likely to default, but Spain might just avoid it, according to the British think tank, the Centre for Economics and Business Research.
Also from the BBC News, mining giant Rio Tinto has reported a big jump in profits due to strong demand in Asia and charging higher prices for its products.
Interest rates will almost certainly be held at 0.5 per cent once again today as the Bank watched London markets tumble by a nine-month record 134 points following the U.S. economy's travails, reports This is Money.
Reuters is discussing a possible merger, Hitachi Ltd (6501.T) and Mitsubishi Heavy Industries Ltd (7011.T) have begun talks to merge, three sources with knowledge of the matter told Reuters, a move that would bring much needed consolidation to corporate Japan.