Monti walks
Italy concern
Just when the Italian economy seemed to be getting back on its feet, its technocrat prime minister Mario Monti announced his intention to resign from his position despite what many see as an almost wholly successful stint in charge. The Italian economy has stabilised under his leadership and borrowing rates have fallen sharply, but this may have more to do with the European Central Bank's bond buying programme. Mr Monti may now seek an elected mandate in forthcoming elections, which are also likely to be contested by Silvio Berlusconi, seeking his fourth stint as prime minister.
See 'Euro recession worsens'
Cliff hope
Stocks boost
Equities continue to exhibit admirable sang-froid over the threat of the US economy careering over the fiscal cliff at the turn of the year. News this week that some hardline Republicans were being sidelined in Washington and the resumption of discussions between President Obama and the Republican speaker of the House of Representatives suggests willingness at the highest level to see a deal get done. This has transmitted confidence into the equities market, which is also being boosted by the traditional end-of-year effect, even though negotiations are likely to drag on right until the last minute.
Delta buys Virgin stake
US boost
US airline Delta has announced plans to acquire the 49 per cent stake in Virgin Atlantic held by Singapore Airlines. Delta is also proposing a joint venture with Virgin on key transatlantic routes which would in turn improve their collective presence at capacity-constrained Heathrow airport where they would have a combined 29 slots. The combination would provide more competition to British Airways, whose boss Willie Walsh this week offered Sir Richard Branson a wager that Virgin Atlantic would not appear in its current form in five years' time – the forfeit being a 'knee in the groin'.
Housing hope
Winter revival?
A bigger than expected fall in house prices in November had the effect of tempting more potential buyers into the market in a rare glimmer of hope for the housing market after months in the doldrums. The latest Royal Institution of Chartered Surveyors report on the housing market suggests a positive balance of potential buyers in the market, suggesting that the gradual decline in house prices coupled with initiatives such as the government's NewBuy scheme, have injected some life into the market. Nonetheless, Halifax still expects house prices to be broadly flat throughout 2013.
£270m rebate
Northern Rock mistake
An administrative error means that thousands of customers of Northern Rock during 2008 could be in line for rebates running into thousands of pounds. A total of £270m will be repaid to 152,000 people who borrowed from Northern Rock during 2008 due to a clerical error which mean borrowers were not provided with certain information about their loans. The average payout will be around £1,776.
China's century
US overtaken
A US government report into global trends has confirmed the suspicion that the US economy will be overtaken by China's by 2030. It also claimed that Europe, Japan and Russia will remain in decline and be overshadowed by the growing strength of the Asian economies. Rather hopefully it also said that Islamic terrorism would have disappeared by 2030. Meanwhile China's new leader, Xi Jinping, has stoked hopes that he will instigate further economic reforms on his first visits outside Beijing.
