Malaysia Airlines to cut 6,000 staff in overhaul. KUALA LUMPUR, Malaysia— Malaysia Airlines will cut 6,000 workers as part of a $1.9 billion overhaul announced Friday to revive its damaged brand after being hit by double passenger jet disasters.» Read More
Deepening concern over the state of the U.S. economy and its impact on Europe will lead to further uncertainty in European stock markets next week, as investors look to interest-rate decisions from major central banks for reassurance.
German manufacturing orders dropped 0.5 percent in February from the previous month due to weaker foreign demand, the government said Friday. The decline comes as the euro hovers near an all-time high against the U.S. dollar.
Euro zone retail sales turned out much weaker than expected in February, contracting on the back of falls in Germany and Spain and reinforcing concerns about the outlook for economic growth.
Euro zone services growth slowed further last month as the credit crunch tightened its grip, while price pressures hit a 9-month high, according to final data from a survey of businesses published on Thursday.
The European Central Bank's first-ever auction of six-month funds on Wednesday saw banks bidding more than four times the 25 billion euros on offer as they sought cash they struggle to raise on financial markets.
British bank First Direct has withdrawn mortgages for new customers to clear a backlog after people flocked to its relatively cheap rates as other lenders raised rates due to the credit crunch.
The $19 billlion writedown at UBS has cheered some investors who think that the worst of the credit crunch is now over. But the European Central Bank still faces the prospect of falling growth and rising prices.
Euro zone manufacturing activity cooled in March, but there was the biggest growth split among leading economies in seven years, while price pressures spiralled higher, a survey showed on Tuesday.
Euro zone inflation jumped to new record highs in March while economic sentiment eased for the 10th month in a row, data showed on Monday, deepening the European Central Bank's interest rate dilemma.
A look at the data and happenings that shaped the first quarter for European businesses and markets.
After a dismal first quarter, investors look forward to what the spring has in store; but apart from a new gold rush and the euro rising further, there seems to be little to anticipate.
Signs that the credit crunch is affecting the real economy in Europe continued to appear in the first quarter of 2008, as the real-estate and retail sectors and mergers and acquisitions all struggled with tighter lending criteria, inflation and dwindling investment.
The central banks of Britain and Switzerland added extra funds to ease pressure on high interbank lending rates on Thursday, while the European Central Bank said it was ready to step in with extra cash.
French President Nicolas Sarkozy and British Prime Minister Gordon Brown called on Thursday for banks to declare the full extent of the damage to their operations caused by the credit crunch.
French President Nicolas Sarkozy will ask British Prime Minister Gordon Brown for help in getting Washington to prop up the ailing dollar, but Britain has usually shunned managing exchange rates.
Top central bankers warned on Wednesday there was no end in sight yet to the global credit crunch as German banking giant Deutsche said the crisis threatened its profit target for this year.
Tighter lending conditions have made the Bank of England more inclined to cut interest rates as the global credit crunch enters a new and difficult phase, Mervyn King, the central bank's governor, said on Wednesday.
The European Commission expressed concern on Wednesday about the euro's rise, saying it added to the strengthening headwinds facing euro zone growth, but stuck to its 1.8 percent forecast for 2008 economic growth.
The European Central Bank is watching currency markets very closely, Vice President Lucas Papademos said in comments released on Tuesday.
British Prime Minister Gordon Brown and French President Nicolas Sarkozy will urge banks this week to make "full and immediate disclosure" of write-offs due to the global credit crisis, British officials said on Monday.
Get the best of CNBC in your inbox