Eurozone economic confidence unexpectedly increased in July, led by industry and construction, even as price growth remained anaemic and geopolitical tensions threatened to undermine the currency bloc’s recovery.

European stocks rebounded from a two-month low yesterday and Spanish bonds rose after an ECB official signalled that the bank may revive its bond-purchase programme.

Ryanair Holdings has lost a court challenge that may have forced Alitalia’s owners to repay a €300m loan from the Italian government.

New Italian leader Mario Monti has formed a government without a single politician, picking bankers, diplomats and business executives in hope of ensuring escape from looming financial disaster.

EUROZONE finance ministers held crisis talks yesterday in a desperate bid to come up with a solution to the Greek debt problem and avoid the euro debacle escalating to include Italy.

The International Monetary Fund said weak European banks were “caught in a maelstrom” and must beef up their financial buffers, insisting more must be done to shore up the global financial system.

POLAND’s Bank Zachodni has said it has held four meetings with potential buyers of AIB’s controlling interest in the company, but declined to say if the sale process was close to conclusion.

THREE of the bigger international names linked with a potential bid for AIB’s €2 billion stake in its Polish bank have withdrawn their interest, reports suggest.

Fiat said today three financial institutions were supporting the Italian carmaker's plans to create a global powerhouse by merging with Chrysler LCC and General Motor’s Opel and Vauxhall brands.

AIB was among the European banking stocks least favoured by analysts at UBS as it predicted a dreadful year for earnings in 2009.

IRELAND'S infrastructural deficit has weakened its competitiveness and businesses are concerned that the poor exchequer finances will lead to investment cuts.