Cypriot banks could take a hit of more than 1 bln euros ($1.4 bln) to shoulder their Greek bailout obligations, forcing them to raise capital and potentially deepening concerns over the island's own sovereign debt. Bank of Cyprus and Marfin Popular Bank have not yet committed to join a voluntary private sector plan to rescue
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Receipts up 17.1% After years in the doldrums, Cyprus has seen a buoyant year for tourism thanks not least to troubles in the surrounding region that have diverted tourists to safe destinations. While tourism arrivals rose by 10.9% compared with the same period of the previous year in January-June, receipts have, for once, risen even
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Seasonally adjusted unemployment fell for a second straight month in July, marking the first time in over three years that it has fallen for two months in a row. The seasonally adjusted number was 28,871, down from 27,935 in June and a peak of 28,162 in May. On an absolute basis, however, the number of
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Japan's Nikkei stock average slid more than 2% on Monday as weak sentiment following Standard & Poor's downgrade of the United States' credit rating was exacerbated by futures selling after Asian markets tumbled. Analysts warned that persistent worries about the global economy could spark further selling in the longer term, while investors will continue reacting
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Groups of youths attacked shops and damaged a police car in north London on Sunday as police sent in reinforcements to prevent more rioting on the scale that laid waste to another area of the British capital 24 hours earlier. Scattered incidents broke out on Sunday evening in Enfield, a few miles north of the
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The largest auction to date of Bruce Lee memorabilia in the birthplace of the kung fu legend shot past estimates to rake in $220,000, with a fur-lined costume jacket made for an unfinished film claiming the highest price. Thirteen items belonging to Lee, who is credited with bringing martial arts into the mainstream and has
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Fear gripped Asian markets on Monday as the fallout from the historic downgrade of the U.S. debt rating drowned out pledges of assistance from Europe's central bank and soothing words from the Group of Seven. Facing the unknown investors ran to gold, which hit a new record atop $1,700 an ounce , while share markets
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Hong Kong and China shares retreated for a second-straight session on Monday, pressured by an acceleration of derisking from equity investments following Standard & Poor's downgrade of the long-term credit rating of the United States late on Friday. Fears of a worsening crisis in Europe exacerbated the prevailing risk-off mood, plunging the Hang Seng Index
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Lower interest on euro zone loans to Greece and private bondholder involvement in the country's restructuring will cut its debt by 22% of GDP by 2020, Economic and Monetary Affairs Commissioner Olli Rehn said. Rehn reiterated that the involvement of the private sector in the second financing package for Greece, agreed by euro zone leaders
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* Deficit likely to hit 9% of GDP in 2011 Last week, I ran an article on the banks and the budget in which I essentially argued that we were not yet in a crisis situation because the banks had plenty of cash to keep lending to the government. While there is still plenty of
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