Business

Morning business round-up: Italy's rate hits new record

What made the business news in Asia and Europe this morning? Here's our daily business round-up:

The Italian government's borrowing cost has risen to a new record ahead of a crucial vote for Prime Minister Silvio Berlusconi.

The yield on Italian 10-year bonds rose to 6.73%, the highest since the euro was founded in 1999.

It is feared that Italy, the eurozone's third biggest economy, could become the next victim of the debt crisis.

In related news, Japan confirmed that it bought 10% of the latest bonds issued by the eurozone's rescue fund.

The Ministry of Finance said it purchased 300m euros ($413m; £257m) of bonds issued by the European Financial Stability Facility.

In UK, the Bank of England needs a "radical shake-up" to prevent future crises, according to MPs.

The UK's Treasury select committee issued a series of recommendations, including having the chancellor take direct control of the Bank when needed.

The UK's manufacturing output rose more than expected in September, official figures revealed.

Factory output increased by 2% compared with a year earlier.

France's second-largest lender Societe Generale cut bonuses and cancelled its dividend after recording a profits slump due to a 60% write-off of its lending to Greece.

The bank's net profit for the third quarter was 622m euros, down 31% from last year.

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Meanwhile, in UK company news, Lloyds Banking Group reported a £3.9bn ($6.3bn) loss for the first nine months of 2011.

Marks and Spencer also reported a fall in both profits and sales, blaming the "challenging economic environment".

The retailer made a pre-tax profit of £320.5m in the six months to 1 October.

Japanese carmaker Toyota said second-quarter profits fell 18.5% because of supply problems caused by the recent floods in Thailand.

The company withdrew its profit and vehicle sales forecasts after uncertainty over the flood impact.

The latest edition of Business Daily travels to Ethiopia to investigate the potential for new investors, as well as looking at how new trade agreements in south-east Asia have affected consumers in Indonesia.

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