Lloyd's, the world's biggest insurance firm, reported a profit of $2.4 billion for the first half of the year. During the same period in 2011 it lost more than $1 billion. Last year was the second-costliest on record for the industry, because of major natural catastrophes such as the earthquake in Japan. By comparison this year has been "benign" -- so far.
The Nasdaq stock market launched its FinQloud cloud-based service that allows companies to store their regulatory documents on servers operated by Amazon. The service is being offered to listed companies to help reduce the burden of new, costly regulations for filing papers. It is Amazon's biggest move yet into financial services.
Regulators in Britain readied a shake-up in the way the LIBOR interbank interest rate is managed. LIBOR determines rates for $300 trillion worth of derivatives contracts and other financial products. More than a dozen investigations continue into banks that allegedly colluded to set the rate in their favor. Barclays was fined a record sum in June, and Bob Diamond resigned as its chief executive, after an inquiry found that its bankers had manipulated LIBOR.
Santander's stock-market flotation of its Mexican division in New York and Mexico City went well. It valued the subsidiary at $16.5 billion and raised around $4 billion for the Spanish bank. It was Mexico's biggest-ever IPO.
China's stock markets had another bad week, falling to their lowest level since early 2009. The slowing economy and tension with Japan are worrying investors. The markets didn't even get a lift from the People's Bank of China's largest-ever one-day injection of cash through reverse repos to boost liquidity.
Toyota, Japan's biggest carmaker, reduced its production of vehicles for the Chinese market in anticipation of falling sales. The company's Chinese business has suffered due to the anti-Japanese violence that has swept the country over islands disputed by China and Japan.
There was more difficulty for Foxconn, which had to close a Chinese factory temporarily when a brawl among employees turned into a full-scale riot. The Taiwanese company assembles many consumer electronics products, including Apple's iPhone, at its huge, campus-like facilities in China, where workers have become increasingly vocal with their grievances.
The tablet wars continued. This time Toys 'R' Us found itself in the cross hairs for its Tabeo computer tablet for children, which it has launched for the Christmas season. Fuhu, which makes the rival Nabi tablet for kids, is suing the company, claiming that it stole trade secrets and copied the Nabi's butterfly-shaped design.
Political economyThe British economy shrank by 0.4 percent in the second quarter, according to a final estimate. That's an improvement on the 0.7-percent fall in GDP recorded in a first estimate.
An anti-austerity rally outside the Spanish parliament building in Madrid turned violent on Saturday. The rally was protesting a budget presented by Prime Minister Mariano Rajoy. Meanwhile Artur Mas, the Catalan president, announced a snap election for Nov. 25, which could turn into an unofficial referendum on Catalonia's independence and cause a whole new set of headaches for Rajoy. After a period of relative calm, Spain's borrowing costs jumped sharply in the markets, and the stock market tumbled.
Prime Minister Antonis Samaras of Greece approved a package of $14.8 billion in budget cuts. The following day a general strike was held, the first in Greece since February. Flights and trains were suspended, ferries stayed in ports and the public sector closed down. Greece has been mired in recession for the last six years.
Uruguay looked set to become the second Latin American country, after Cuba, to allow abortion. The lower house of the country's Congress narrowly approved a bill to that effect, and the Senate is expected to do the same.
A state electoral court in Brazil ordered the arrest of Google's top manager in the country. The company had ignored a ruling to remove a YouTube video that allegedly libeled a mayoral candidate. Police said that they planned to release the manager on bail after arresting him. Google claims that it is not responsible for content posted on its websites.
Venezuela's government signed an agreement with CITIC, a Chinese company, to develop Las Cristinas, a big gold mine. A Canadian company is seeking $3.8 billion in compensation after Venezuela rescinded its contract to develop Las Cristinas.
