IN BRIEF

Europe targets commodities derivatives trade

BRUSSELS: Europe warned yesterday of moves to rein in commodity derivatives trading under a French-led drive to tame price distortions for raw materials ranging from oil to grain. France launched the onslaught, calling on the EU and G20 countries to take urgent steps to draft new common rules after a summer of fears about the fallout from soaring grain prices.

S Africa workers' wage offer to hit budget

JOHANNESBURG: The South African government's latest wage offer to striking public sector workers will lead to increased state borrowing and may put the country's sovereign credit rating under threat. The lessons learned from Europe's debt crisis are still fresh in the minds of South African authorities and they want to press on with plans to slow down borrowing and cut the country's large budget deficit. But the government's improved offer of a 7.5 per cent wage increase and an 800 rand (US$108.5) housing allowance puts a damper on those plans.

Russia grows 4.0% as economy recovers

MOSCOW: Russia's economy grew 4.0 per cent in the first half of the year, continuing its recovery from the global crisis, but this was slightly below official forecasts, data showed yesterday. The figures from the state statistics office were below mid-July estimates for growth of 4.2 per cent in the first half, according to the economic development ministry.

Moody's affirms Bulgaria's credit rating

SOFIA: Moody's Investors Service yesterday maintained its rating on Bulgaria's sovereign debt and said the outlook remained positive in the light of prudent fiscal policy and prospects for renewed growth. Nevertheless, the recovery was being financed primarily by aid and loans from the EU, the World Bank and other institutions, rather than inflows of private capital.

UK July mortgage lending falls

LONDON: Net lending to British households unexpectedly fell to a four-month low last month after a sharp decline in mortgage lending, reinforcing economists' concerns that tight credit conditions may hamper future growth. While there was a small rise in the number of mortgages approved and a survey showed an unexpected rise in consumer confidence, analysts said it was not enough to stop housing market weakness, with effects for consumer spending.

Agencies