QFINANCE brings to you its top 5 financial news stories of the week, along with relevant QFINANCE articles and definitions to fill you in on background details. Stories this week include the OECD and Eurozone investors, the Chile miners' miracle rescue, and China's reserves hitting a record high.
Eurozone bond investors behaving irrationally according to OECD
The OECD (Organisation for Economic Co-operation and Development) has said that investors’ judgement has been affected by ‘animal spirits’, which could result unnecessary budget cutting among weaker countries.
- We need a stronger EFSF to stop the PIIGS from slip-sliding away, by Ian Fraser
- Dictionary definition: OECD
Founder of easyJet signs £4m a year deal
EasyJet founder Sir Stelios Haji-Ioannou will give up his place in the boardroom and allow the company more freedom with the easyJet brand, in return for a minimum £4 million per year.
The last of the Chilean miners are rescued
During what was deemed ‘a magical night’ by Chilean president Sebastián Piñera, the 33rd miner was successfully pulled from the Mina San Jose pit after spending 69 days nearly half a mile underground.
- Sector profiles: Mining
- Can Chile follow the miracle rescue of 33 miners with a Chilean economic miracle?, by Anthony Harrington
China’s reserves hit record high
China’s foreign exchange reserves reached $2.65 trillion at the end of September, rising by $194 billion in the third quarter, intensifying pressure for a yuan revaluation.
- Morality, the 2010 Nobel Peace Prize, and the Chinese economy - what does history teach?, blog post by Anthony Harrington
- Checklist: The Foreign Exchange Market: Its Structure and Function
US trade deficit surged in August
The global economic imbalance was once again in the spotlight after reports of the US trade deficit jumping sharply in August due to increased imports, mainly from China. The report has furthered criticism of China’s currency management.
- As flies to wanton boys are we to the central bankers, blog post by Ian Fraser
- Viewpoint: Linda Yueh: China and the Global Financial Crisis
- Dictionary definition: Trade Deficit
Tags: Asia , Chile , China , currency , currency exchange , currency war , EU , eurozone , foreign exchange reserves , OECD , shareholders , sovereign debt , trade deficit