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Wednesday September 12
Germany has refused to block the European Stability Mechanism fund and the EU fiscal treaty as the top court rejected the pressures for the move, the BBC reported on Wednesday. It is “a good day” Merkel was quoted saying as the Constitutional Court imposed a cap on German contributions.
In the UK, a court was told that UBS’s back office questioned €3.6bn (£2.9bn) of incorrectly booked trades early enough to reveal that the Swiss bank was aware of Kweku Adoboli's trading problems five weeks before he was arrested, The Telegraph reported. The case is still undergoing.
Thursday September 13
The New York Times published a report on India’s recent difficulties to deliver enough power. According to newly published reports, the power sector would be largely responsible for a second year of slow economic growth to approximately 7% this year from 10% in 2010.
Reuters reported on Thursday that U.S. stocks and crude oil prices rose considerably as the general belief is an improvement of economic growth. This has had a knock-on effect on the US dollar as well which weakened significantly, the article reported.
Friday September 14
The FT reported last Friday that the US Fed announced the launch of a new open-ended push to stimulate the economy. The Fed’s third round of quantitative easing will buy "additional agency mortgage-backed securities at a pace of $40bn (£25bn) per month", Bernanke said. Similarly to the QE program in 2010, the central bank will buy assets at a pace of $85bn a month for the rest of the year.
Also in the Financial Times was reported that the International Monetary Fund endorsed Portugal’s financing plans, raising the country’s hopes of returning to government bond markets next year.
Monday September 17
Barclays reduced its forecasts on Chinese GDP growth severely the China Daily reported early this week. The forecast was lowered to 7.5% from 7.9% originally estimated, due to very weak data last August the investment bank stipulated in a newly published research.
In regards to the merger between BAE Systems and Franco-German aerospace group EADS, French finance minister declared that there were “a lot of questions” on the proposed £30bn raising prospect of political opposition which would possibly derail the deal according to The Telegraph.
Tuesday September 18
China has found itself in the middle of the US election debate, the FT reported, as the Obama administration filed a second trade complaint against Beijing. Obama declared that the US had launched a case against its Chinese partner at the World Trade Organisation over exports subsidies on cars as it seemed those affected US manufacturers considerably forcing them to shift production.
The sovereign crisis saga goes on as it seems the Greek economy is expected to shrink 25% further by 2014, The Guardian reported yesterday. The European Union is pressured to loosen the terms on the country’s bailout as analysts are warning of a 1930s-style Depression.
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Tags: banking , Ben Bernanke , central banks , corporate governance , ECB , economic recovery , EU , euro , European Central Bank , financial crisis , fiscal stimulus , France , fund management , international differences , regulation , sovereign debt , stocks and shares , transparency , UK , US , US economy