Business

Morning business round-up: Spanish borrowing costs rise

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

Market Data

Last Updated at 06:58 GMT

Market index Current value Trend Variation % variation
Dow Jones 23328.63 Up 165.59 0.71%
Nasdaq 6629.05 Up 23.99 0.36%
FTSE 100 7523.23 Up 0.19 0.00%
Dax 12991.28 Up 1.18 0.01%
Cac 40 5372.38 Up 4.09 0.08%
BBC Global 30 10243.65 Down -8.16 -0.08%

Spanish markets, along with other European markets, have suffered after an election dominated by the eurozone crisis led to the bloc's third change of government in three weeks.

Stocks in Madrid fell in line with other European markets while the government's implied cost of borrowing rose again.

Spain's 10-year cost of borrowing is hovering not far below 7% - the level at which other eurozone countries have had to seek bailouts.

Besides the eurozone's debt problems, markets were also fretting at the likely imminent failure of the Congressional super-committee to reach any agreement on tax rises and cuts to entitlement programmes.

In the UK, at the CBI conference, Prime Minister David Cameron has said that the eurozone crisis is having a "chilling effect" on the UK's economy.

"I am absolutely clear about the right answer for the UK economy. It can be summed up in one sentence. We need to deal with our debts and go for growth," he said.

Meanwhile, the CBI said that the government should reorientate the UK economy towards exports, which could add £20bn to the UK economy by 2020.

Lloyds Banking Group announced contingency plans in case chief executive Antonio Horta-Osorio needs to extend his stress-related sick leave.

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And the UK utility Centrica signed a 10-year deal worth £13bn to buy natural gas from Norway's Statoil.

Centrica has also agreed a £1bn deal to buy production and development rights to oil and gas sites in the Norwegian part of the North Sea.

In Australia, airline Qantas failed to reach a deal with pilots and ground staff in an ongoing industrial dispute, meaning it will now go to forced arbitration.

In Asia, Japan's exports fell for the first time in three months, reinforcing worries that the strong yen and global debt crisis are affecting the economy.

And Thailand's economy grew by 3.5% in the three months to September, less than the 4.5% rate economists were expecting even after taking account of the recent severe flooding.

Toyota said it had restored vehicle output in Japan to "near-normal levels" after severe flooding in Thailand disrupted supply chains.

The latest edition of Business Daily asks how to stop America's national debt from growing out of control and speaks to the chief executive of Western Union to understand why the pattern of remittances has changed across the world.

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