TH: UK public finances worse than expected; oil edges higher
Despite all the concerns about the Spanish economy following the weekend election and the subsequent uncertainty about the country’s future government, the country’s central bank has raised its growth forecasts for this year and next.
The Bank of Spain said it expected the country’s economy to grow by 0.8% in the fourth quarter, the same level as in the previous three months, and it lifted its growth forecast for 2015 from 3.1% to 3.2%. For 2016 it is now predicting growth of 2.8%, up from its previous estimate of 2.7%.
But it warned about policy concerns in the wake of the inconclusive election, as well as concerns about a worse than expected slowdown in emerging markets. It said:
Tata Steel is in discussions to sell its struggling UK businesses to investment group Greybull Capital which could safeguard thousands of jobs.
The companies have signed a letter of intent and have entered exclusive talks. The deal involves Tata’s Long Products Europe division, including its Scunthorpe steelworks, mills in Teesside and northern France, an engineering workshop in Workington, a design consultancy in York, and associated distribution facilities. It also includes Tata Steel’s Scottish mills in Dalzell and Clydebridge which are currently being mothballed.
In a statement Karl Koehler, chief executive of Tata Steel’s European operations, said: “This is an extremely critical time for the whole industry, and we have been working hard to explore all options that could provide a future for the Long Products Europe business.
“We will now move into detailed negotiations with Greybull Capital. It is too early to give any certainty about the potential outcome of these discussions.
“We will continue to work closely with our trade unions and works councils and will communicate any relevant news to employees on an ongoing basis.”
In all, around 4,700 staff work for the Long Products division.
Greybull last year rescued struggling airline Monarch.
Britain’s steelmakers have been struggling with high costs and increased competition, leading to the collapse of Caparo Industries and the closure of SSI’s Redcar plant.
