Delphi Corp. (DPH: chart) is in discussions with former parent General Motors Corp. (GM: chart) and the United Auto Workers about a comprehensive restructuring of Delphi's unprofitable U.S. operations in order to avoid bankruptcy reorganization. The talks are reported to be very constructive and management hopes to restructure out of court. The auto parts maker added that it has drawn $1.5 billion from a $1.8 billion credit facility related to the restructuring talks.


OTHER NEWS

The People’s Bank of China announced in its second quarter report that it will increase flexibility in its exchange rate at an appropriate time, based on market developments, economic and financial trends. Since the revaluation reform of July 21, the central bank has allowed the yuan to rise only slightly only.

A parliamentary committee approved to privatize Japan’s postal savings system and create the world’s largest bank. The package, which is in the center of a severe political dispute, will go to the upper house full chamber which is expected to vote on the measures on Monday.