Morning business round-up: More austerity for Spain

  • Published

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

Spain is due to set out its austerity budget for 2013 later, against a backdrop of a deteriorating economy and 25% unemployment rate.

Madrid is expected to outline 39bn euros ($50bn; £31bn) worth of savings, tax rises, and structural reforms.

It comes amid further protests this week and growing expectations that Spain will seek a bailout from its eurozone partners.

Elsewhere in the troubled eurozone, Greece has launched the sale of almost all of its 34% stake in the state-controlled gaming monopoly Opap.

The government is under pressure from its international creditors to privatise assets as part of the conditions of its bailout.

Opap is one of Europe's largest listed gambling firms. It made a net profit of 126m euros ($162m; £100m) in the first six months of the year.

The UK economy contracted by less than thought in the second quarter, official figures have shown.

The economy shrank by 0.4% in the April-to-June period, the Office for National Statistics (ONS) said in its third estimate of gross domestic product (GDP).

The ONS had initially estimated a contraction of 0.7%, before revising that to 0.5% last month.

Media caption,

Biz Heads

A former senior trader from Credit Suisse, Kareem Serageldin, has been arrested in London and faces extradition to the US on fraud charges.

Two of his former subordinates pleaded guilty in February to charges of wire fraud and falsifying books and records.

They admitted to having manipulated prices of mortgage-backed securities to cover up losses at Mr Serageldin's direction.

Tui Travel, which owns Thomson and First Choice, has said trading over the summer high season was strong and it remains on track to meet its full-year expectations.

Tui said its summer programme was almost fully sold, with load factors ahead of last year.

It said summer holiday sales were up 6% in Northern Europe, up 5% in Central Europe and up 2% in Western Europe.

Baoshan Iron and Steel, the fourth biggest steel producer in the world, has suspended production at a plant in China as demand slows.

Baosteel, as it is known, said it closed the plant in Luojing, Shanghai, to avoid increasing operating losses.

China is the world's biggest producer of steel and prices have fallen this year.

The latest Business Daily podcast from the BBC World Service looks at whether the eurozone crisis makes Catalan independence more likely.

Around the BBC