EUROPE MORNING UPDATE: European Banks Gird for 'The Year of Reckoning'

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THE WALL STREET JOURNAL Europe Morning Update

December 31, 2008 -- 2:45 a.m. EST

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TODAY'S NEWS
(WSJ.COM SUBSCRIPTION REQUIRED TO READ FULL STORIES)

European banks are bracing for a difficult 2009 as a rising tide of corporate bankruptcies adds to their problems with bad mortgage and credit-card loans.

http://online.wsj.com/article/SB123066880901643393.html?mod=djemEMU

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Sterling soon could fall to parity with the euro, a psychological blow to the U.K. The euro has gained 18% on the pound this month.

http://online.wsj.com/article/SB123064663954742375.html?mod=djemEMU

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Herman Van Rompuy, an intellectual with a penchant for writing haiku, was sworn in as Belgium's prime minister, triggering hopes that he could heal some of this country's bitter linguistic divisions.

http://online.wsj.com/article/SB123063952269442227.html?mod=djemEMU

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Medvedev signed a law extending presidential terms to six years from four, a move seen as paving the way for Putin's return to the presidency.

http://online.wsj.com/article/SB123067643289643793.html?mod=djemEMU

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Ukraine and Russia inched closer to resolving the gas dispute that has put Russian gas supplies to Europe in jeopardy.

http://online.wsj.com/article/SB123063595017842175.html?mod=djemEMU

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The U.S. criticized Azerbaijan's decision to ban international radio broadcasts into the country.

http://online.wsj.com/article/SB123067777878643861.html?mod=djemEMU

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Novartis is pulling out all the stops to avoid a potential nosedive in sales after the patent of its blood-pressure pill, Diovan, expires in four years.

http://online.wsj.com/article/SB123068632342044339.html?mod=djemEMU

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Liberty's move to convert some bonds to shares has helped the U.K. property company retire some debt.

http://online.wsj.com/article/SB123066005634642993.html?mod=djemEMU

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Stocks rose, but with a day to go in 2008 the market is set to record its third-worst year on record. The Dow Jones Industrial Average, even after Tuesday's 184.46-point gain, is down 34.65% going into the year's final session.

http://online.wsj.com/article/SB123063852673142225.html?mod=djemEMU

To read any of the articles above, please see: http://www.wsj.com

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FEATURES
(WSJ.COM SUBSCRIPTION REQUIRED TO READ FULL STORIES)

The global economic crisis has taken its toll on real-estate deals in practically every market. Here is a scorecard of how some of them fared this year. - Photos: Real-Estate Fallout

http://online.wsj.com/article/SB123067589466443733.html?mod=djemEMU

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LG Electronics hopes to get a boost from sponsoring London's New Year's Eve fireworks, the city's first sale of sponsorship rights to the event.

http://online.wsj.com/article/SB123058890857640661.html?mod=djemEMU

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European commercial property is in free fall and there ian't any sign of a parachute.

http://online.wsj.com/article/SB123032575243835911.html?mod=djemEMU

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