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    WTO investigates Chinese limit on rare earth exports

    The World Trade Organisation has announced it will be investigating China’s quotas and tariffs on exported tungsten and molybdenum following complaints by the US, the EU and Japan that it might be breaking global trade rules. Over 90 percent of the world’s rare earths are produced in China; they are 17 key metallic elements used in defence, renewable energy and electronics worldwide. China has stated that the curbs are designed to protect their shrinking natural resources and the environment. In July 2010 China reduced domestic output and export quotas by 40 percent, adding pressure to an already strained relationship with the US and Japa...
    On July 24, 2012 / By
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    New rules help South Korea’s housing market

    Policy makers have stepped up plans to stimulate the real estate market and entice more buyers after the country registered tentative demands and want to prevent further wavering domestic growth. The debt-to income ratio, which monitors the type of mortgage loan imposed by banks, is due to be incremented to meet the needs of borrowers, amid aims to boost the local housing market. The moves come after the central bank cut its benchmark interest rate for the first time in more than three years on 12 July, in retaliation to EU monetary concerns, stagnant growth in employment in the US and overall economic slowdown in neighbouring China. Accordin...
    On July 23, 2012 / By
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    World braced for global food shortages

    In the last five months, the US has lost around 100m tonnes of crops, predominately in South America and the US grain belt, an area which has been struggling with over 37.C degree (100F) temperatures. Maize prices have risen by 40 percent and soya bean by 25 percent. These crops are then converted into other food stuffs, like animal feed, which consequently results in higher meat prices. The US is the biggest producers of corn and as costs surged to record highs on Thursday, serious concerns have been sparked among economists and traders that there will be a detrimental effect on developing countries.  The government has had to cut its yearl...
    On July 20, 2012 / By
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    Shakeup at Singapore Stock Exchange

    The change comes after the Hong Kong market watchdog, the Securities and Futures Commission (SFC), threatened to move in on investment banks if they allowed any false information about the companies to float on the exchange. Recent difficulties with companies like KXD Digital Entertainment, which had breached a string of rules including failure to disclose it had ceased business operations, have led the market to tighten up regulations to ensure it remains attractive for large firms to go public in. The new rules take effect on August 10, and companies who wish to trade on the SGX must now have a listing of at least S$150, ($119.2m) and prove...
    On July 19, 2012 / By
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    Bernanke panics

    In his opening statement to a committee in Congress yesterday, Bernanke said the bleak issues must be dealt with “sooner rather than later.” “We are looking very carefully at the economy, trying to judge whether or not the loss of momentum we’ve seen recently is enduring, and whether or not the economy is likely to continue to make progress,” he said to Washington. “The most effective way that Congress could help to support the economy right now would be to work to address the nation’s fiscal challenges in a way that takes into account both the need for long-run sustainability and the fragility of the recovery.” Bernanke said ...
    On July 18, 2012 / By
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    Chinese growth slows to three year low

    The National Bureau of Statistics (NBS) found China’s growth fell to 7.6 percent, down from 8.1 percent in the first quarter. The world’s second-biggest economy has been plagued with a sluggish property market and enervated exports from Europe, its biggest trade partner, as well as a too-heavy reliance on domestic consumption. According to the WSJ, consumption contributed to 57.7 percent of GDP growth so far this year, up from 47.5 percent in the first quarter in 2011. Investments were down by 53.2 percent, in comparison to the same period last year, and export growth figures saw a loss of 7.1 percent. China accounts for roughly one fifth...
    On July 13, 2012 / By
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    China cuts cost of crude

    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 ...
    On July 11, 2012 / By
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    Spanish recession targeted

    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, ...
    On July 10, 2012 / By
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    EU banks set for regulatory shake up

    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...
    On July 9, 2012 / By
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    UK prepared to close its doors to Greece

    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 ...
    On July 4, 2012 / By