Post date: Oct 04, 2010 7:31:24 PM
Greece unveils it's new budget, UK Finance Minister outlines spending cuts, Sanofi-Aventis makes hostile bid for Genzyme and new regulations may be on the cards for Swiss banks.
EUROPE - Greece has unveiled its 2011 draft budget.
It's laid out plans to cut its debt to 7 percent of GDP from 7.8 percent
The country's finance minister George Papaconstantinou said he aimed to reduce the country's debt from eighteen and half billion euros this year to 16.3 billion next year.
PAPACONSTANTINOU SAYING:
"With this draft budget we make one more big step to clean up the state finances of our country, so as to place foundations for stable growth that will create investment and new jobs."
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Britain's Finance Minister George Osborne has outlined sweeping welfare reforms.
He told delegates at the Conservative Party conference that the coalition government wants to transform the welfare payments system - so people in work are better off than those on benefit.
Osborne played down fears that deep spending cuts could send Britain into a double dip recession.
SOUNDBITE: George Osborne, British Finance Minister, saying (English):
"Delay now means pay more later. Everyone knows that it is the most basic rule of debt."
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Sanofi-Aventis has launched a hostile bid for Genzyme despite its first offer being rejected.
The French drugmaker is offering shareholders in the US biotech firm $69 dollars a share - valuing it at 18 and a half billion dollars.
Last month Genzyme rejected a friendly offer from Sanofi for the same price but its now taking the deal direct to shareholders after reports they were frustrated with its management's decision.
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Switzerland may tighten the reins on its global banks even further.
UBS will be expected to hold capital well in excess of new international standards as will Credit Suisse.
The Basel III rules require banks to hold at least 7 percent of risk-weighted assets in the form of common equity.
But a Swiss government commission is recommending a figure of 10 percent.
It's also wants the two banks to hold a further 9 percent of total capital in bonds just in case.
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UBS shares fell after the report - down half percent - as did Sanofi.
In the rest of the markets European shares fell for a sixth straight session as investors worried about pending U.S. homes sales figures.
The FTSEurofirst 300 ended that day at its lowest level for five weeks.
Mining stocks were amongst the biggest fallers and heavyweight oil majors also gave back some of their recent gains.
In the currencies the euro was down 0.8 percent against the U.S. dollar after renewed concerns about the financial stability of Ireland, Portugal and Spain.