European shares closed higher following some better-than-expected earnings reports, and upbeat manufacturing data from German.» Read More
"The biggest problem we have in Europe and elsewhere at the moment is confidence," Sir Michael Rake, BT Chairman, told CNBC.
Moody's Investors Service said on Wednesday that it downgraded the credit ratings of Societe Generale and Credit Agricole, marking the latest in a series of blows to French banks that have recently punished European stocks.
"The second quarter figures we are expecting from Credit Agricole should not bring any kind of surprise, because it has already made a profit warning in late July. The funding issue is not peculiar to Credit Agricole, but there is a real issue in general with funding for French banks," Christophe Nijdam, banking analyst at Alphavalue, told CNBC's Investing Edge.
CNBC's Simon Hobbs has the latest detail on funding difficulties at French banks and ECB financing.
Shares in French Bank Credit Agricole fell in early Paris trade on Friday after the group announced it took a hit in the second quarter for an expected loss at its Greek Emporiki Bank unit and its participation in an EU-led rescue plan for Greece.
Financials sold-off on Thursday after reports suggested more criminal probes were ahead for Wall Street firms. Should you hold your breath and buy the weakness?
Troubles in the $2.4 trillion bond insurance industry have been the focal point of a widening credit crisis as expected losses in mortgage-backed debt put the insurers' ratings at risk.
Warren Buffett's Berkshire Hathaway is starting a bond insurer that would help state and local governments lower their borrowing costs, posing a direct challenge to established rivals struggling with deteriorating credit markets.
ACA Capital Holdings said Maryland state regulators will now make many significant business decisions for its main bond insurance unit, as the bond insurer tries to stave off a cash crunch.