THE NEWS WRAP: Global markets suffer heavy losses overnight

Global markets suffered heavy losses overnight as investors fretted over rumours that France was to be the next European country to be dragged into the debt crisis.

Stocks in London, Paris and Frankfurt all lost ground, while the Dow Jones fell by 4.6%. The falls were fuelled by speculation, denied by ministers, that France was to lose its AAA credit rating.

Clive Peeters chain scrapped

Electrical goods retail brand Clive Peeters is to be scrapped, with owner Harvey Norman set to take over each of its stores.

Four outlets in Victoria and three in WA, where it trades under the name Rick Hart, will be rebranded as Harvey Norman stores. The move follows a $20 million fraud that hit the company, on top of weak retail conditions.

Groupon losses mount

Daily deals site Groupon has suffered mounting losses following its decision to hire an extra 1,000 staff, the company has revealed.

Groupon’s net loss in the June quarter rose to $102.7 million, up from $36.8 million a year previously. The company recently announced plans to raise $750 million through a share floatation.

Overnight

The Dow Jones was down declined 520.29 points to 10,719.48. The Australian dollar edged down to 101.79 US cents.