Morning in brief: Brazil files against oil companies, foreign investment in China drops

The euro hovers above 11-month lows ahead of a Spanish bond auction later today, while in China, foreign direct investment drops for the first time in 28 months.

International

The eurozone is facing a winter recession in 2012 while unemployment is expected to remain above 10% until at least 2015, according to a report by audit firm Ernst & Young, seen by the BBC.

China has experienced the first year-on-year drop in foreign direct investment in over two years, according to Reuters.

Markets

The euro is approaching an 11-month low ahead of a Spanish bond auction today. The sovereign debt crisis is expected to drive borrowing costs for the Spanish government up even further, reports Bloomberg.

Companies

Olympus Corp has signalled the possibility of re-hiring ex-CEO and whistleblower Michael Woodford, reports Reuters.

Chevron and Transocean are both facing legal challenges from Brazilian federal prosecutors in response to an oil spill off the coast of Rio de Janeiro last month, reports the FT.