Italy's credit rating cut by Moody's
The ratings agency Moody's cut Italy's credit score by two notches yesterday as it faces a "sharp" rise in funding costs due to contagion risks from Greece and Spain. Italy's 10-year borrowing costs hit 6 per cent at one point, but it still raised €3.5bn (£2.8bn) in three-year debt at 4.65 per cent.
Cove Energy bid heads for auction
The match between Shell and Thailand's PTT for the oil explorer Cove Energy is heading for a penalty shoot-out. The City's referee, the Takeover Panel, said the pair must declare final offers by 5pm on Monday or else enter an auction, where each will be able to revise its bid once a day from Tuesday until a deal is sealed.
Construction still on the slide
An extra day at work failed to help builders in May as construction output sank again. The 6.3 per cent slide in official figures came despite a bank holiday being moved to June for the Diamond Jubilee. The industry, which accounts for 7 per cent of UK output, is expected to weigh on second quarter growth.