Global business

Peabody Energy, based in St. Louis and the world's biggest private sector coal company, launched a new offer for Australia's Macarthur Coal. Peabody was rebuffed by Macarthur's board in a first takeover approach last year. This time, it has teamed up with ArcelorMittal in a joint bid worth $5 billion for the business. The steelmaker already owns a 16 percent stake in Macarthur.

Saudi Arabia increased oil production by 700,000 barrels a day last month, to 9.7 million barrels a day, according to the International Energy Agency. The Saudis upped their output, which is now at a five-year high, after the Organization of Petroleum Exporting Countries as a whole declined to raise quotas.

Carrefour's proposed merger of its Brazilian business with that of Pao de Acucar, a Brazilian supermarket chain, collapsed when Brazil's state development bank withdrew its support. The French retailer's bid already had provoked controversy when a big shareholder in Pao de Acucar had accused Carrefour of conducting illegal takeover talks. The importance of Brazil to Carrefour was highlighted by its quarterly results, which showed strong revenue growth there and in other emerging markets, offsetting weak sales in Western Europe.

Nestle continued its acquisition spree in China, saying it planned to take a 60 percent stake in Hsu Fu Chi. In April, the Swiss group bought a similar-sized holding in Yinlu Foods. Hsu Fu Chi makes chocolate, candy and cookies, some with flavors that cater to local tastes. China's confectionery market is only half the size of America's (despite having four times as many people), but it is expected to grow rapidly.

Amazon stepped up its battle against California's levy of a sales tax on online purchases, proposing to put a referendum to voters to overturn the measure. Most American states do not collect sales taxes on goods bought over the Internet, but California wants the money to help plug its budget deficit. Its levy is supported by many bricks-and-mortar retailers, including Wal-Mart and Target, which argue that exemption from the tax gives online rivals an unfair advantage.

Political economyChina's economy grew by 9.5 percent in the first six months of 2011. This was a slightly lower rate than for the first quarter, but the markets took that as a positive sign that China's use of monetary tools to stop the economy from overheating may be working. More tightening is expected as China's central bank continues its fight against inflation.

With Christine Lagarde installed as its managing director, the International Monetary Fund made other senior appointments. Zhu Min, one of four deputy managing directors, is the first person from China to serve in such a high position at the fund.

The sovereign debt crisis in the eurozone stepped up a gear. Concerns about Italy led to a rapid rise in the country's government bond yields and a fall in its stock market. Last week's anxiety was caused in part by a quarrel between Silvio Berlusconi, the prime minister, and Giulio Tremonti, the finance minister, and by uncertainty over the passage of an austerity budget.

European leaders, meanwhile, were said to be preparing to meet in Brussels to discuss a deal for a second Greek bailout. This could involve private bondholders agreeing to roll Greece's debts over and governments helping Greece buy back its bonds. Meanwhile, Ireland became the third country in the eurozone to have its credit rating downgraded to junk status. Moody's made the cut on the basis that Ireland also will eventually need another bailout.

Indian cities were put on high alert after three bombs exploded in Mumbai during the rush hour, killing at least 17 people and injuring scores more. It was the worst terrorist incident in India's financial capital since a coordinated attack by gunmen in 2008.

America announced that it would suspend $800 million from the security funding it gives to Pakistan, which includes money to root out the Taliban along the border with Afghanistan. Relations between America and Pakistan have become ever more strained since the U.S. raid that killed Osama bin Laden in May. Pakistan has kicked out some American military advisers -- and says it may now withdraw its own forces from the borderlands.

Australia's government unveiled plans for a carbon tax to take effect in July 2012, which would charge $25 per metric ton of carbon dioxide emitted by each of the country's heaviest polluters. The previous government collapsed because of its failure to pass a climate change bill. Resistance to the new tax is widespread in the business community.