In Wednesday's Europe papers

17 September 2008 06:30  [Source: ICIS news]

FINANCIAL TIMES

Front page

US to take control of AIG
The US Federal Reserve announced that it will lend AIG up to $85bn in emergency funds in return for a government stake of 79.9 per cent and effective control of the company - an extraordinary step meant to stave off a collapse of the giant insurer that plays a crucial role in the global financial system.

Day of volatile trading closes with rally
The Federal Reserve’s decision to leave interest rates unchanged at 2 per cent capped a day of huge volatility in financial markets which ended with a rally on Wall Street.

Companies and markets

Barclay’s strikes deal for Lehman spoils
Lehman Brothers has agreed to sell its North American investment banking and capital markets businesses for $1.75bn to UK lender Barclays, which will use the acquisition to boost its US investment banking prowess without having to assume Lehman’s crippling liabilities

London closes at lowest since June 2005
Shockwaves from Lehman’s collapse sent the FTSE 100 index sinking to its lowest close since June 2005 on Tuesday.

INTERNATIONAL HERALD TRIBUNE

Front page

Fed loans AIG $85bn and takes 80% stake in rescue
Without help from the Federal Reserve Board, American International Group was expected to be forced to file for bankruptcy protection.

Perhaps, it’s time for someone to play offense
The US government has acted aggressively, but not on the underlying reasons that the economy got into this mess.

Marketplace

Fed policy makers keep key rate steady
Putting inflation concerns ahead of the financial turmoil, the US Federal Reserve Board left the benchmark lending rate at 2 percent.

Barclays reaches $1.75bn deal for a Lehman unit
The accord could save 8,000 to 10,000 Lehman jobs and allow Robert Diamond Jr., the president of Barclays, to attain his longtime goal of expanding his bank’s reach in the United States.

THE MOSCOW TIMES

Front page

Markets post record single-day losses
The ruble-denominated MICEX Index fell by 17.5% on Tuesday, a single-day record, as the country’s oil-driven stock market was severely battered by the global economic hurricane spreading from the United States.

Duma to vote on limits for inspectors
In a move to cut red tape and bring an end to law enforcement practices that President Dmitry Medvedev has described as "causing nightmares" for businesses, the State Duma will begin considering bills on Wednesday promising a huge reduction in state inspections.

Business

Industrial output misses expectations
Industrial production expanded at a slower pace than economists forecast in August as tighter access to credit and a slumping stock market hurt companies’ expansion plans, the State Statistics Service said on Tuesday.

Market ills may lead to tax cuts
The plunge in Russian asset prices may force the government to decide in favor of tax cuts, despite fierce opposition from fiscal hard-liners, after other measures to prop up stocks have failed, analysts said on Tuesday.

DER SPIEGEL

Front page

What the Lehman bankruptcy means for Germany
The move by US investment bank Lehman Brothers to declare bankruptcy has set off a global earthquake on markets. The crisis is also threatening German financial institutions as well as the country’s federal budget.

A call for concrete EU actions on Georgia
The New European Union policies regarding the Caucasus must strike a balance between Europe’s concerns and the needs of the region’s countries and people. At the same time, the Europe must also distance itself from the confrontational position Washington has adopted towards Russia.

TURKISH DAILY

Front page

Stocks stumble as Lehman crumbles
The collapse of Lehman Brothers in the United States sends ripples across the global financial spectrum, battering stocks everywhere.

One killed, four missing as ferry sinks
A ferry carrying 95 passengers and crew sank near the northwestern port of Bandırma late Sunday, killing one person, the maritime authority said yesterday. Four people are missing.

Business and finance

Partial success in European criteria
Turkey achieved partial success last year in meeting the European Union’s Maastricht Criteria for adopting the euro, according to a report released by the State Planning Organization, or DPT.

R&D spending puts Turkey on the map
Turkey ranks 25th out of the world's 41 highest-spending countries on research and development, a recent report revealed.

WARSAW BUSINESS JOURNAL

Front page

E.ON may be excluded from PGNiG’s latest gas deal
PGNiG’s new natural gas supplier is expected to be chosen on Wednesday

Market fluctuations impact on Petrolinvest's plans
Petrolinvest’s dropping share price could give Kazakh investors a larger-than-intended stake

By: Staff Reporter
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