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October 30, 2008
Europe Insider Keep up-to-date with the latest news from Europe

NEWS THIS WEEK'S TOP STORIES FROM EUROPE

Emerging Markets: Foreign Currency Debt Troubles

Foreign-denominated debt is squeezing countries from Romania to South Korea as their local currencies falter

Inside: This Week In Europe

For a while, it looked like emerging economies might escape the problems of the credit crunch because their banks weren't exposed to U.S. subprime debt. But now many--especially in Eastern Europe--are facing a new crisis driven by falling local currencies and high levels of foreign debt. Read the details in our top story this week by Carol Matlack and Mark Scott.

We've also got the big Ukrainian IMF bailout, Iberian wind power champions, challenges for BA's OpenSkies airline, a breakthrough artificial heart, and the OPEC production cut. Plus, tough times for Daimler and other European carmakers, U.S. defense contractors in Africa, and a wide range of other economic, tech, and autos coverage. Don't miss the electric Mini and a pair of pieces on Scotch and Rieslings. Enjoy!
Andy Reinhardt, Europe Editor
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MORE EUROPEAN NEWS

ECONOMICS
Ukraine Gets an IMF Bailout
The IMF has agreed to lend Ukraine $16.5 billion, helping the country to avert a run on its banks and its currency, the hryvnia

ENERGY
The Iberian Giants of U.S. Wind Energy
Backed by their parents' capital, Spain's Iberdrola Renovables and Portugal's EDP Renovaveis can exploit the downturn and snap up smaller rivals

AIRLINES
BA's OpenSkies Flies into Headwinds
It's bad timing for British Airways' new business-class-only OpenSkies as the industry suffers from slower demand and tougher competition

EUROPE • From The Independent
Travel Slowdown Hits Air France-KLM
As worldwide air travel looks set to post the first monthly decline in five years, Europe's largest airline says it will be "very difficult" to meet its profit forecast

MEDICINE
EADS Unveils Innovative Artificial Heart
Airbus' parent designs a technologically advanced artificial heart for a spin-off company, Carmat. Within three years, the device could be approved for humans

TECHNOLOGY • From silicon.com
Web Shopping Slows in Britain
Economic woes have taken a bite out of online shopping, with year-on-year growth in September declining dramatically

ENERGY
OPEC Announces Big Production Cuts
Oil prices plunge nearly $5, to $63 a barrel, even while OPEC shows "solidarity" by announcing a 1.5 million-barrel-per-day production cut

EUROPE • From The Independent
BP Scores Huge $10 Billion Quarterly Profit
The 148% increase is due only in part to surging oil prices, which hit $147 a barrel in July, says the CEO. He credits increased production, too

EUROPE • From EUobserver
European Carmakers Slash Output
BWM, Daimler, and Renault are temporarily closing factories in the face of falling demand, while others like Peugeot-Citroen sharply cut production

EUROPE INSIGHT
Economic Blues Hit Daimler Earnings
Revenues fell 7% and operating profits dropped 66% as spreading economic malaise crimped auto sales in the U.S. and Europe

EUROPE • From Spiegel Online
The Ripple Effects of VW's Stock Surge
Shares soared Oct. 27 and 28 as Porsche tightened its control over Volkswagen, forcing shorts to cover their positions and distorting the benchmark DAX index

EUROPE • From EUobserver
Sarkozy Wants $25 Billion EU Crisis Fund
The French President will propose the increase in Brussels next week to member states. Eastern Europe in particular is in financial straits

EASTERN EUROPE • From Transitions Online
Russia: Crisis? What Crisis?
State-controlled TV in Russia is playing down the global financial mess even as its impact starts to spread through the economy

OUTSOURCING
Defense Contractors' Growing African Business
Northrop, Lockheed Martin, and other defense outfits see opportunities as the U.S. government, private industry, and the U.N. spend more in Africa

TECHNOLOGY • From silicon.com
London Olympics to Be Fiber Showcase
The Olympic Park network for the 2012 Games and its links to 94 venues across Britain could become the template for a high-speed national network, officials say

MBA JOURNAL: B-SCHOOL REVIEW
Oxford MBA: Lasting Lessons from Friends
Reflecting on an unforgettable year at Said Business School in Oxford, Larry Kao says fellow students "invaluably widened my lens"

EUROPE INSIGHT
Daimler Tests 'car2go' Car Sharing Plan
The German carmaker is testing a new and different kind of car sharing service that it hopes to export to the U.S.

NEWS & FEATURES • From Gizmag.com
Mini: Small, Cute, and Electric
BMW Group will showcase a lithium ion battery-powered version of the Mini at next month's Los Angeles Auto Show

EUROPE • From Spiegel Online
Tourists Drawn to Bargain Iceland
The country of dreamlike landscapes and wild geysers may face a difficult future, but for travelers, it means a much cheaper vacation

EATING AND DRINKING
Single Malt Whisky: To Age or Not to Age?
Scottish distillers are getting more playful with what they add to their whiskies and how long they leave them in the cask

PARKER ON WINE
Eleven Bargain German Rieslings
Their names may be hard for some Americans to pronounce, but these wines are easy on the wallet and a treat to drink

BW'S PICKS FROM AP NEWS >>

• IMF creates loan program for developing nations

• Belarus to loosen grip on economy for IMF loan

• UN extends diamond sanctions on Ivory Coast

• UK Treasury says fiscal rules must adapt to crisis

• Italian regulator extends ban on short selling

MORE BREAKING NEWS FROM AP >

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IN YOUR FACE: WEB 2.0 AND THE CRUNCH

Reader Chuck Gehman Writes:

"Web 2.0 social networks will benefit from the downturn. Unemployed workers will use them to keep connected. There is a level of escapism that makes participants feel good."

Tell Us: Will a Second Job Take Priority Over Second Life? >

Reader Poll: Special Issue

Trouble at the office? In surveys, blogs, polls, and social media, BusinessWeek collaborated with readers to identify problems at work. Together we found answers.

Viewpoint: Alan Leaman

Managing in the Downturn: 10 Principles

The head of Britain's association for management consultants shares his group's guidance for coping with a recession—and avoiding pitfalls

Investing: Europe

The Economic Outlook for Spain: Bleak

The collapse in housing and construction has combined with the global financial crisis to create one of Spain's worst periods in decades

CNET.co.uk PRODUCT REVIEWS

CNET.co.uk
Product Reviews

CNET.co.uk Editors' picks, value ratings, feature comparisons, and photos

FEATURED SPECIAL REPORT >>

Storm Clouds over European Banking

Date:

From:

Subject:

Emerging Markets: Foreign Currency Debt Troubles

October 30, 2008

Europe Insider

Emerging Markets: Foreign Currency Debt Troubles

Foreign-denominated debt is squeezing countries from Romania to South Korea as their local currencies falter

• IMF creates loan program for developing nations

• Belarus to loosen grip on economy for IMF loan

• UN extends diamond sanctions on Ivory Coast

• UK Treasury says fiscal rules must adapt to crisis

• Italian regulator extends ban on short selling

"Web 2.0 social networks will benefit from the downturn. Unemployed workers will use them to keep connected. There is a level of escapism that makes participants feel good."

The head of Britain's association for management consultants shares his group's guidance for coping with a recession—and avoiding pitfalls

The collapse in housing and construction has combined with the global financial crisis to create one of Spain's worst periods in decades

CNET.co.uk Product Reviews

CNET.co.uk Editors' picks, value ratings, feature comparisons, and photos

Storm Clouds over European Banking

Slide Shows

Which Countries Are at Economic Risk?

Podcast

Who's Got Cash in the Global Economy?

To calm the financial panic, the British government has stepped in to save three major banks. So far the markets like the news

CNET.co.uk
Product Reviews