Morning business round-up: Spain borrowing costs rise


What made the business news in Asia and Europe this morning? Here's our daily business round-up:

Spain's borrowing costs have risen to another euro-era record, with lenders demanding a higher interest rate.

The yield on benchmark 10-year bonds hit 7% on Thursday morning, a level which many analysts believe is unsustainable in the long term.

Italy also saw its borrowing costs rise, selling bonds repayable in three years at a 5.3% yield, up from 3.9%.

She told Germany's parliament that the country's options for rescuing the eurozone were "not unlimited".

Her speech came ahead of a meeting of G20 nations in Mexico this weekend.

Nokia is cutting another 10,000 jobs globally and has warned that second-quarter losses from its mobile phone business will be larger than expected.

The cuts bring total planned job losses at the Finnish group since Stephen Elop took over as chief executive in September 2010 to more than 40,000.

Nokia will also book additional restructuring charges of about 1bn euros (£811m; $1.3bn).

The club, who finished second in this season's English Premier League, was previously planning a $1bn (£635m) share sale at the Singapore Stock Exchange.

If the listing is moved, it would be the latest in a string of cancelled or delayed share sales in Asia.

Media caption,
Biz Heads

Palm oil company Felda Global Ventures is set to raise $3.1bn (£2bn) in a share sale in Kuala Lumpur, reports say, the second-biggest initial public offering globally this year.

The Wall Street Journal and the Reuters news agency, citing unnamed sources, said the company had priced its offering at 4.55 ringgit a share, which is at the top end of expectations.

Felda has attracted strong domestic demand, despite share listings elsewhere being scrapped or delayed.

Shares of Esprit have fallen further after its chairman Hans Joachim Korber became the second senior executive to leave the firm in as many days.

On Wednesday, the firm said its chief executive, Ronald van der Vis, had quit.

Its shares fell as much as 14% to HK$9.03 on the Hong Kong Stock Exchange on Thursday after sliding 22% on Wednesday.

The company, famous for its leather bags, said it made £36m in profits for the year to March.

It is continuing to expand and plans to open a second factory in Somerset in the west of England, doubling production and creating 300 jobs. Internationally, it plans to open another 16 stores.

Later on Thursday, UK Chancellor George Osborne will unveil a White Paper on banking reform, which follows the recommendations made by the Independent Commission on Banking.

Savers will be given greater protection if a bank fails, under the government plans.

The ICB was set up to look at ways to make the UK banking system safer. One of its main proposals is to ring-fence High Street retail banking operations from riskier operations such as investment banking.

And ahead of crucial elections in Greece, the latest Business Daily podcast reports on the cancer-sufferers queuing for life-saving drugs in Athens, as the economic crisis bites deep.

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