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AP Business NewsBrief at 8:35 a.m. EDT(Associated Press Via Acquire Media NewsEdge) Ailing Portugal reels from credit downgradeLISBON, Portugal (AP) _ Portugal's financial plight deepened Wednesday, with borrowing rates jumping higher and stocks slumping after its bonds were downgraded to junk status. Spain and Italy were dragged into the downturn, adding new momentum to Europe's sovereign debt crisis. Portugal's hopes of slowly emerging from its debt crisis were knocked by ratings agency Moody's, which downgraded Portugal's debt four notches Tuesday and said the country will likely follow Greece in needing a second rescue package. UK's Cameron demands new phone hacking inquiryLONDON (AP) _ British lawmakers staged an emergency debate Wednesday to vent their outrage over a widening phone hacking scandal in which a tabloid allegedly targeted missing schoolgirls and the families of London terror victims in addition to celebrities and royals. Prime Minister David Cameron called for inquiries into the News of the World's behavior as well as into the failure of the original police inquiry to uncover the latest allegations now emerging. China raises interest rates amid inflation fightBEIJING (AP) _ China raised a key interest rate Wednesday for a third time this year as it tries to cool surging inflation. The benchmark rate for one-year loans will be raised 0.25 percentage points to 6.56 percent, effective Thursday, the central bank announced. The rate paid on deposits will rise by a similar margin to 3.5 percent. US stock futures drop as European shares fallNEW YORK (AP) _ U.S. stock futures are falling following a broad sell-off in Europe. Moody's downgraded Portugal's debt to junk status late Tuesday. That raised fresh concerns about the strength of the European financial system. European banks meeting on second Greek bailoutPARIS (AP) _ The biggest banks in the eurozone are discussing ways to contribute to any new financial rescue package for Greece, which could emerge as soon as September. Senior executives from top European lenders are meeting in Paris Wednesday at the headquarters of French banking giant BNP Paribas, according to a person familiar with the talks. The person was not authorized to be publicly named because the talks, under the auspices of the Institute of International Finance, are private. Lagarde takes helm of IMF amid major challengesWASHINGTON (AP) _ Christine Lagarde can count on at least one thing Wednesday during her first news conference as chief of the International Monetary Fund: few softball questions. The former French finance minister is under pressure on many fronts. Lagarde must convince the developing world that her IMF will be a more open place for non-Western nations. At the same time, she'll have to persuade her fellow Europeans to take painful steps to avoid a default by Greece. Obama cites progress in deficit reduction talksWASHINGTON (AP) _ President Barack Obama says back-channel talks with congressional leaders last weekend have produced new progress in advance of a White House session Thursday on deficit reduction. The president is siding with House Speaker John Boehner in insisting that negotiators resist the temptation to "kick the can down the road" and settle for a makeshift, short-term solution to stave off a first-ever U.S. default next month. GOP pushes back on effort to limit kids' food adsWASHINGTON (AP) _ House Republicans are siding with food companies resisting the Obama administration's efforts to pressure them to stop advertising junk food for children. Some food companies say the government is going too far with guidelines proposed earlier this year by several government agencies. The voluntary guidelines would attempt to shield children from ads for sugary and fatty foods _ think colorful characters on cereal boxes _ on television, in stores and on the Internet. Companies would be urged to market foods to children ages 2 through 17 only if they contain specific healthy ingredients and are low in fats, sugars and sodium. Nokia abandons Japan marketTOKYO (AP) _ Nokia Corp., battered by the popularity of smartphones, is abandoning the Japanese market, after a brief foray with luxury cell phones costing as much as 20 million yen ($250,000). The Finnish handset maker is closing by the end of July its last store selling high-end Vertu cell phones in Ginza. Previously, it had four such stores in Japan, according to Tomoko Morinari of Sunny Side Up, a Tokyo public relations company that has Nokia as its client. Oil below $97 amid strong emerging market demandSINGAPORE (AP) _ Oil prices hovered below $97 a barrel Wednesday in Asia amid investor optimism that strong crude demand from developing countries will offset weaker consumption growth in rich nations. Benchmark oil for August delivery was down 13 cents to $96.76 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. Crude gained $1.95 to settle at $96.89 on Tuesday. (c) 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. |