Each week QFINANCE.com brings you some of the biggest news stories from the past five days in finance and business – essential reading to keep you up to date with the latest topics.
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Wednesday September 5
In Europe, business groups from France, Germany, Spain and Italy produced a joint call ahead of the ECB meeting for “urgent and decisive action” to save the euro and limit negative effects on investments. The FT reported that the five organizations urged “the European institutions (…) to speed up and give a greater urgency to decisive actions which can safeguard the euro project by solving the lack of confidence in the monetary union”.
Meanwhile the BBC reported that UK oil giant BP was accused by the US Justice Deportment over the disaster of the Deepwater Horizon of "gross negligence and willful misconduct".
Thursday September 6
The Organisation for Economic Co-operation and Development (OECD) has considerably reduced its forecast of the UK economy predicting a fall of 0.7% (from 0.5%) on an annual rate The Press Association reported on Thursday. The think-tank’s previsions show that the UK will not pull itself out of the double-dip recession in the current quarter.
In China, the government has launched new plans to build 2,018 kilometres (1,254 miles) of roads resulting in the biggest stock- market rally in months. Bloomberg reported that The Shanghai Composite Index closed 3.7% higher, due to construction stocks, on speculation infrastructure spending will help bolster growth.
Friday September 7
The FT reported last Friday that the head of ECB Mario Draghi, announced the European Bank would to purchase eurozone countries’ short-term bonds in the secondary market. Nicknamed “Super Mario”, Draghi’s “secret plan” consists in a bond-buying program exposed at the press conference in Frankfurt.
Meanwhile in Hungary, PM Viktor Orban refused last Friday the International Monetary Fund (IMF) conditions to a new loan of 15bn euros (£12bn; $19bn) considered unacceptable, the BBC reported. The Prime Minister said on his Facebook page that the terms "contain everything that is not in Hungary's interests".
Monday September 10
The biggest divestment of bailed-out insurer AIG has been launched by the US Treasury on Monday, the FT reported. Diminishing the US taxpayer to the status of minority shareholder, the public offering is making up to $20.7 billion of its dwindling stake available for sale. This move could considerably reduce the Treasury’s ownership of 871m common shares to 262m shares only, which would represent less than one-fifth of the company’s common equity.
In China, economic planners announced on Monday an increase of gasoline retail prices by 550 Yuan ($85.75) per ton and diesel by 540 Yuan per ton, the China Daily reported. The statement was published on the National Development and Reform Commission website.
Tuesday September 11
Following the announcement on Monday to reduce gasoline and diesel prices, Bloomberg Businessweek reported on Tuesday a considerable drop in Chinese stocks, dragging the benchmark index down by the most in a week. The markets’ reaction show a clear concern on the country’s economic slowdown Macquarie Group Ltd. (MQG) has reduced its growth estimates.
Meanwhile the International Monetary Fund seemed to be backing the Irish case to relief the 64bn euros debt as it urged European authorities on Tuesday to come up with a new bailout fund which would make direct investments in the country’s lenders, according to the FT. The IMF declared that “material investments in Irish banks by the ESM (European Stability Mechanism) could transform the public debt outlook, cut the bank- sovereign link, and cement a needed win for Europe” the Financial Times reported yesterday.
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