Headline News: Eurobiz

• EU, Russia optimistic about new energy deal (AP)
  AP - The European Union and Russia said Friday they would discuss all aspects of energy cooperation — including access to energy markets — during negotiations on broader political and economic ties.
  
• Weak dollar is global concern: EU's Barroso (Reuters)
  

  Reuters - The dollar's fall is a source of global concern and the European Union wants a better balance between the U.S. unit and other major currencies, European Commission President Jose Manuel Barroso said on Friday.

  
  
  
• Euro zone rate rise signals ECB serious: policymakers (Reuters)
  

  Reuters - The European Central Bank's interest rate rise sends a signal that it is serious about combating inflation, policymakers said as they staged a public relations offensive to justify Thursday's increase.

  
  
  
• ECB raises key rate to 4.25 percent (AP)
  

  AP - Wary of higher energy and commodity prices, the European Central Bank raised its benchmark interest rate Thursday by a quarter percentage point to 4.25 percent, a move it hopes will help curtail rising inflation in the 15 countries that use the euro.

  
  
  
• Global stocks rise, euro falls after ECB decision (Reuters)
  

  Reuters - The euro fell and shares and government bonds rallied on Thursday as the European Central Bank poured cold water on speculation of further aggressive interest rate hikes after raising them as expected.

  
  
  
• British construction activity falls (AP)
  AP - Construction activity in Britain declined in June at the fastest rate in 11 years, a supply institute said Wednesday, and a major home builder said it had been unable to raise more capital — both signs of worsening conditions in the battered housing industry.
  
• London shares remain low (AFP)
  

  AFP - Blue chips remained at lower levels midafternoon, dragged down by the banking sector amid fears of profit warnings, with Wall Street lower on the back of ongoing concerns over rising oil prices.

  
  
  
• Sleeping Beauty Bulgaria awaits EU's kiss to waken from its slumber (AFP)
  

  AFP - Fast asleep in the forests of the Rhodope mountains, this former miners' town, like a lot of other near-forgotten places in Bulgaria, is hoping for an EU financial kiss to waken from its slumber and start pulling in the tourists.

  
  
  
• Frankfurt stock market index celebrates 20 years in business (AFP)
  

  AFP - Much has changed at the Frankfurt stock exchange in 20 years but as its Dax index celebrates the milestone it remains the barometer for German economic well-being.

  
  
  
• U.S. Slowdown Shows In Drop Of China ETFs (Investor's Business Daily)
  Investor's Business Daily - One of the largest China-focused exchange traded funds is iShares FTSE/Xinhua 25 (NYSEArca:FXI.TO - News). It's down 12.30% over the last month and 22.74% year to date. The ETF has $6.7 billion in assets.
  
• Euro inflation at 4 percent; highest in 16 years (AP)
  AP - Yearly inflation in euro nations hit a record 4 percent in June, the EU statistics agency Eurostat said Monday, adding pressure on the European Central Bank to raise borrowing costs even as the economy slows.
  
• Global stocks slide as oil prices rocket to records (AFP)
  

  AFP - European stocks mostly fell on Friday as oil prices shot to record levels, but losses were less than falls on other global markets hit by soaring crude costs and a weak US economy.

  
  
  
• Eurozone economic confidence slumps to three-year low: survey (AFP)
  

  AFP - Confidence in the combined economy of the 15 nations sharing the euro slumped to a three-year low in June, according to a widely-watched EU survey released on Friday.

  
  
  
• Qatar in talks on LSE, German bourse partnerships: TV (Reuters)
  Reuters - Qatar, which on Tuesday agreed to sell 25 percent of its stock market to NYSE Euronext , is in talks with London and German stock exchanges about new partnerships, the Gulf state's sovereign wealth fund said.
  
• Germany's consumer mood worsening (AP)
  AP - German consumer confidence has dropped to its lowest level in two-and-a-half years amid spiraling energy costs, according to a closely watched survey Tuesday.
  
• Euro Zone's Factory, Service Sectors Stalling In June (Investor's Business Daily)
  Investor's Business Daily - The euro zone economy headed into reverse in June, several key reports suggested Monday, but that may not be enough to prevent the European Central Bank from raising rates next month.
  
• European Union approves new sanctions against Iran (AP)
  

  AP - EU nations approved new sanctions against Iran on Monday, imposing additional financial and travel restrictions on a list of Iranian companies and experts — including the country's largest bank.

  
  
  
• EU to add fresh sanctions against Iran: sources (AFP)
  

  AFP - EU nations were set on Monday or Tuesday to adopt new sanctions against Iran targeting its financial institutions, especially the large Bank Melli, diplomatic sources said.

  
  
  
• Dow closes below 12,000 on bank jitters, oil prices (Reuters)
  

  Reuters - Stocks fell sharply on Friday with the Dow closing below 12,000 for the first time since mid-March as rising oil prices and warnings of more mortgage-related write-downs at banks reignited investor fears of worse to come.

  
  
  
• French plans for EU tax reform on hold after Ireland vote: Lagarde (AFP)
  

  AFP - France has put plans for European Union tax harmonisation on hold after Ireland's voters rejected the bloc's new reform treaty last week, finance minister Christine Lagarde said Thursday.