European companies are seeking to refinance loans at the fastest rate in almost two years, amid concerns that banks’ ability to lend will be squeezed by tighter regulations and higher funding costs. Companies including PSA Peugeot Citroen and Iberdrola SA borrowed $168.3 billion from banks since April, according to data compiled by Bloomberg, the biggest quarterly volume since the collapse of Lehman Brothers in September 2008. Three quarters of the deals were used to refinance debt, Bloomberg data show. European banks are forecast to halve loan growth over the next two years from 7.5 percent since 2001, Bank of America (NYSE:BAC) Merrill Lynch analysts wrote June 9. Stricter capital rules, informally known as Basel III, would cut earnings at 13 of the largest banks by $20 billion, JP Morgan Chase (NYSE:JPM) estimates. The proposed regulation may “reduce the availability of loans and increase the cost to borrowers,” according to the London- based Loan Market Association. –Bloomberg
Merck (NYSE:MRK), the world’s second largest drugmaker, said Thursday it plans to close eight manufacturing plants and eight research facilities around the world in its bid to save $3.5 billion a year. The Whitehouse Station, N.J.-based company is also reducing its workforce by 15%, or some 16,000 jobs, it said. The actions are part of a restructuring the company has undertaken following its $41 billion acquisition of rival Schering-Plough in November. In addition to the plant closings, Merck said it will consolidate some offices worldwide, as part of the restructuring begun last December. –Daily Finance
Boeing (NYSE:BA) said Thursday it delivered 114 commercial airplanes in the second quarter, up from 108 planes in the first quarter. The Chicago-based company delivered 95 next-generation 737s but did not deliver any 747 jumbo jets during the period. It also maintained its 2010 delivery outlook at between 460 to 465 aircraft. -MarketWatch
Crude-oil futures rose following an improvement in U.S. unemployment data and an industry report showing a bigger-than-expected drop in inventories. Light, sweet crude for August delivery recently traded $1.23, or 1.7%, higher at $75.30 a barrel on the New York Mercantile Exchange, after rising as much as $75.43 a barrel, the highest price for a front-month contract since June. Brent crude on the ICE futures exchange traded $1.19 higher at $74.70 a barrel. –The Wall Street Journal
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