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European stocks ended the third quarter lower, with banks taking the hit, but Federal Reserve rate cuts should help markets calm down in the fourth quarter and even finish the year on a positive note if no other major bad news emerge.
I am writing this in Munich airport, yet again waiting for another delayed flight. Getting around Europe these days by aircraft is a frustrating business. Planes are full and aircraft movements appear to be overwhelming the ability of both the airlines and the air-traffic controllers to keep schedules. This notwithstanding the 'flexibility' of departure times already built into the timetable.
The credit market squeeze helped to drive growth in euro zone corporate borrowing to a record high in August, figures showed on Thursday, as some firms found that their usual funding channels had dried up.
Credit markets eased Wednesday, not from any big improvement in underlying conditions but because the U.S. Federal Reserve is expected to throw moral hazard concerns to the wind and cut rates again in October.
French-Dutch airline Air France KLM is planning to team up with two Spanish firms to bid for Spain's Iberia against a group led by private equity group TPG, Expansion newspaper said on Wednesday.
The asset manager of Belgian-Dutch financial group Fortis said on Tuesday it would buy a Tokyo-based asset managing firm wholly owned by Germany's Commerzbank to expand its operations in Japan.
European stocks closed mixed under the weight of the impact of the global credit turmoil on the banking sector and with scattered good news from other sectors.
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Troubled British mortgage lender Northern Rock has taken legal advice about whether to pay out a 59 million-pound (US$119 million) dividend to shareholders, the Financial Times said on Monday.
Three leading hedge funds are planning a break-up of beleaguered British bank Northern Rock, according to a newspaper report on Sunday.
Norwegian Petroleum and Energy Minister Odd Roger Enoksen has resigned, the prime minister's office said on Friday without naming his replacement.
The current financial turmoil will translate into banks' profits rising more slowly and fewer buybacks, while disclosure rules need to be tightened, Gordon Scott, managing director of financial institutions at Fitch Ratings, told "Squawk Box Europe."
The European Commission said on Tuesday it was monitoring events at British mortgage bank Northern Rock but it was too early to say whether guarantees pledged by the British government to worried depositors amounted to illegal state aid.
Commerzbank is bracing itself for a higher-than-predicted loss from investments related to risky U.S. mortgages that are set to knock a hole in profits, sources familiar with the matter told Reuters.
The global credit crunch may force banks to take back up to 1.2 trillion euros ($1.66 trillion) in debt on their balance sheets if investors are unable to refinance it, the Dutch Central Bank (DNB) said on Monday.
The euro zone's trade surplus was smaller than expected in July, unadjusted data showed on Monday, but exports continued to grow more quickly than imports.
U.S. Treasury Secretary Henry Paulson said on Monday he expected market turbulence to continue for a while, but said the current turmoil was occurring against the backdrop of global financial strength.
Qatar's state investment fund is close to buying Nasdaq's 31% stake in the London Stock Exchange Group, newspaper reports said on Sunday.
EU finance ministers gave the European Central Bank a thumbs-up on Friday for its efforts to combat a global credit crunch and said they hoped the damage to economic growth from market turmoil would be limited.