Chinese authorities have reduced the fuel price by five percent and said the move was made as a result of internationally low crude oil prices and changes in global and regional economic conditions. The prices at the pumps are now at the lowest levels since December 2010. The National Development and Reform Commission (NRDC) said gasoline retail prices will be reduced by 420 Yuan (£42.50, $65.90) a tonne and diesel prices by 400 Yuan (£42.46, $65.99), as of today. The new prices come as the National Bureau of Statistics announced consumer price inflation in the country had slowed to 2.2 percent last month from three percent in May, and 3.4 ...
The first instalment is part of an emergency €100bn aid initiative agreed in June to inject some much needed funds into the wavering economy and to prevent any further downward spiralling by the banks. EU heavyweights have also decided to give the region an additional year to try and get its budget deficit back in line with a lower GDP target. Last year, Madrid overspent by 8.9 percent, and the 2014 goal is expected to be as low as 2.8 percent. According to a draft reviewed by the WSJ, “tweaking Spain’s budget targets would let the capital run a deficit of as much as 6.3 percent gross domestic product this year, instead of 5.3 percent, ...
One single bank supervisor will report directly to the European Central Bank in order to police the largest and most influential banks in the EU, in the wake of the Libor scandal that rocked UK financial services. There are also plans to outlaw any deliberate manipulation of interest rates, and a review into how Libor indicia have been set in the past. When outlining the initial details of discussion, officials announced talks where ongoing into creating one entity charged with sole supervision of the region’s top 25 largest banks. The eurozone supervisor would be based in Brussels, and national market regulators would also be bought unde...
Addressing his MPs at the House of Commons liaison committee yesterday, Cameron said he’d “do whatever it takes to protect the United Kingdom from a Greek influx,” should the nation leave the eurozone. His comments have surprised a number of Tories backbenchers, as by law, nationals of the 27 countries in the EU usually have the right to work anywhere in the single market without much restriction, but Cameron confirmed ministers have reviewed the legalities of any potential barring to a member state, and he would be ready to enforce such rules. “I would be prepared to do whatever it takes to keep our country safe, to keep our banking ...
The fine comes after the British heavyweight admitted several criminal charges relating to US marketing laws, by promoting two of its drugs for unapproved use and for failing to report significant safety data about one of its diabetes medications to the Food and Drug Administration (FDA). The company has also been found guilty of bribing doctors to promote the drugs, by paying for lavish holidays, speaking tours and even tickets to Madonna concerts. The case involves three of GSK’s well-known drugs. Prosecutors found Paxil had been prescribed to children and adolescents, despite being only approved for adult use in the US. According the NYT...
Shares at Barclays closed down 15.53 percent and other big players in the sector also took a hit, as analysts fear the effects of the interest rates scandal could be very serious for the UK financial markets. RBS closed down 11.45 percent, Lloyds fell 3.9 percent and HSBC closed 2.58 percent lower than on Wednesday. There was huge political uproar in Westminster as UK Prime Minister David Cameron said Barclays management had “serious questions to answer,” and insisted “people have to take responsibility for the actions and show how they’re going to be accountable.” Chancellor Osborne said the behaviour of the bank is “an epitaph t...
Barclays has been told to pay up after it was discovered they had been influencing the Libor and the Euribor as far back as 2005, which may have led to customers being charged too much for credit card and mortgage loans. The bank’s chief executive Bob Diamond has faced calls to resign over the transgressions and will face a grilling from parliament. In response, he said he and his top executives will forgo any multi-million pound bonus “to reflect our collective responsibility as leaders.” Lord Oakeshott, the former Liberal Democrat Treasury spokesman said: “If Bob Diamond had a scintilla of shame, he would resign, and if Barclays had...
Three new developments have put huge pressure on EU governments to come to a unanimous decision at the two-day debt summit on Thursday and Friday. Cyprus became the fifth eurozone country to ask for a bailout to help its banks yesterday, after announcing it has only four days to find €1.8bn to protect its second-largest bank, Cyprus Popular Bank, which is heavily exposed to the Greek financial system. The Cypriot government said it required assistance after “negative effects from Greece had spilled over in to its economy.” While they did not give a specific amount, AFP has reported local media are estimating they will ask for around €...
The plan was announced after the Fed decided it would not use further quantitative easing to counteract slow market growth, but instead make it easier for households and businesses to cut their long-term costs of borrowing. Operation Twist involves the selling of short-term bonds for long-term ones, and is bought in to try and depress bond yields, in order to get a decent rate of return on investment. “This continuation of the maturity extension programme should put downward pressure on longer-term interest rates and help to make broader financial conditions more accommodative,” a Fed statement said. In a news conference, Federal Reserve ...
Italian prime minister Mario Monti suggested using the European Financial Stability Facility’s (EFSF) €440bn rescue subsidy to buy open market peripheral bonds in an attempt to counteract the rising cost of government bond yields in Spain. “The idea is to stabilise borrowing costs, especially for countries who are complying with their reform agendas, and this should be sharply distinguished from the idea of a bailout,” he said. Angela Merkel has been opposed to the bailout rescue fund for quite some time, but she found herself under pressure yesterday to commit to a deal, as analysts maintain that borrowing cost levels will soon becom...