Turkey’s deputy prime minister Ali Babacan has admitted to giving Iran billions of dollars worth of gold in exchange for energy supplies, reported CNN on Thursday, though the Turkish government insists that there remains no conflict between Ankara and Washington over their actions.
The Organisation for Economic Cooperation and Development has lowered its growth forecasts for 2013, warning that the world economy could easily slip into recession if the US and the eurozone’s fiscal problems are not resolved quickly.
In an unusually alarming report, the Paris-based OECD warned that the world economy is at risk of a “major” global recession if policymakers fail to restore market confidence and singled out the debt crisis in recession-hit eurozone as the largest threat to global markets.
India’s ruling Congress party on Tuesday announced plans to begin transferring cash directly to its poorest citizens starting from January next year, reported the Wall Street Journal, in lieu of current subsidies for food, fuel and fertilisers, which the government believes have failed to reach its intended recipients due to widespread corruption.
The Obama administration has ruled that China is not a currency manipulator, but nevertheless said that the renminbi remains “significantly undervalued”.
In its semi-annual report, the US Treasury said yesterday that China did not meet the definition of a currency manipulator. While the label is largely symbolic, the findings rule out any US trade sanctions against China.
UK financial regulation is currently the responsibility of the Financial Services Authority. However, from April, 2013, the Financial Services Bill will create two industry regulators: the Financial Conduct Authority (FCA) and the Provincial Regulatory Authority (PRA). The FCA will regulate market practice and consumer protection, while the PRA will regulate banks and insurance companies. While financial scandals have necessitated need for increased regulation, the proposed changes may not be effective in preventing future abuse.
Asian financial markets and regulatory bodies need to understand and learn from the mistakes of the West or risk having their own interests trampled upon, said the chief executive of Hong Kong’s Securities and Futures Commission.
One of the world’s richest and most successful investors has reiterated calls for a so-called Buffett-tax, or a minimum tax rate on millionaires, arguing that higher taxes would not stop the wealthy from investing.
In a New York Times Op-ed, Buffett, who has a net worth of $46 billion, advocated that taxable income between $1 million and $10 million should be taxed at a minimum rate of 30 percent, and income above $10 million should be taxed at 35 percent.
US consumer spending is likely to decline by $200 billion in 2013 if automatic tax increases – affiliated with the so-called ‘fiscal cliff’ – come into effect at the beginning of next year, said a report commissioned by the White House on Monday, as pressure mounts on Congress to reach a budget deal compromise by December 31st.
Officials from the White House and Congress will resume negotiations over the so-called fiscal cliff this week and President Barack Obama has said he is confident that a new US budget deal can be secured. Meanwhile, EU officials meet in Brussels on Monday to decide if Greece should be allowed access to some 44 billion euros of financial aid.
Monday, November 26
Eurozone finance ministers meet for the third time in two weeks for talks on unlocking the next slice of aid to debt-crippled Greece, which is in danger of running out of money.
The Philippines is losing as much as 30 billion pesos ($731 million) a year in potential tax revenues as a result of oil smuggling activities, claimed a Shell representative over the weekend, with close to 30-35 percent of oil products sold in the Filipino market believed to have been illegally brought into the country.
