Category: News Desk

China Promises Economic Reforms As Political Transition Begins


China’s ruling party has restated its commitment to economic reforms and development with outgoing President Hu Jintao promising continuity as a new generation of anointed successors prepare for a leadership takeover.

Speaking at a key congress at the Great Hall of the People, Hu emphasised the country’s tremendous growth in the last three decades which has raised China to become the world’s second largest economy and lifted millions of Chinese out of poverty.

Merkel Warns the UK against Turning its Back on the EU


German Chancellor Angela Merkel has urged the UK not to turn its back on the European Union and insisted that she wanted to see a strong Britain remain part of the Union.

Merkel’s comments came amid a growing dispute over the controversial EU budget, with British Prime Minister David Cameron describing plans to expand the EU budget by €100 billion ($128 billion) as “completely ludicrous.”

Greece Passes $17.3 Billion Austerity Bill Amid Violent Protests


In a 14-hour debate marked by internal rifts and violent protests outside its gates, the Greek parliament narrowly voted to approve a sweeping set of austerity measures early Thursday, effectively ensuring that the troubled nation would remain within the eurozone and secure its next round of bailout funds from international lenders.

Nigeria Moves Closer To Investment Grade


International ratings agency Standard & Poor’s has upgraded Nigeria’s credit rating from “B+” to “BB-“, citing improved financial stability and government reforms on fuel subsidies for their improved outlook on sub-Saharan Africa’s second-largest economy.

France Announces €20bn Tax Break for Businesses


Acting on the recommendations of industrialist Louis Gallois, France will grant businesses 20 billion euros ($25.7 billion) in annual tax credits as a way of boosting the country’s economic competitiveness.  

The tax break, however, falls short of the 30 billion euros “competitive shock” recommended by the government-commissioned Gallois report.

Related News: French Economy Urged to Undergo “Shock Therapy”

Infographic: The Fine Print of Mortgage Payments


A mortgage is usually the largest financial commitment one makes in a lifetime. Yet, not many borrowers understand the terms of their loan and even more troubling is the fact that mortgage applications are often poorly explained.

For some people, a mortgage is just another payment they make every month. But understanding where your money goes can help you better understand the status of your mortgage as well as the options you have. This infographic gives homeowners everywhere a clearer picture of mortgage payment breakdowns.

Defiant Spanish PM Confident Of Economic Growth By 2014


Spanish Prime Minister Mariano Rajoy on Tuesday once again ruled out possibility of his government requesting a bailout from the ECB this year at least; and said that his country can return to economic growth by 2014 as long as it stuck to a policy of fiscal austerity.

“This has been a bad year, but we have laid the basis for the recovery,” the Prime Minister said in an interview with radio station Cadena Cope as cited by Xinhua.

EU Budget Audit Finds $6.4 Billion In Misspending


The European Union wasted more than 5 billion euros ($6.4 billion) on errors in payments and ineffective economic programs last year, said its auditors on Tuesday, with about 3.9 percent of 2011’s budget payments directed at projects that didn’t comply with EU or national funding rules.

According to the European Court of Auditors (ECA), EU policymakers had failed to set up fully functioning systems and methods to detect and correct spending errors, while member states were also not distributing its allocated budget efficiently enough.

HSBC Budgeting For $1.5bn Money Laundering Settlement


Europe’s largest bank is bracing itself for a settlement with US regulators which analysts say could top $2 billion and is likely to lead to criminal charges as well.

HSBC on Monday set aside a further $1.15 billion to cover potential US fines for breaches in anti-money laundering controls in its Mexican unit as well as to compensate UK customers for mis-selling payment protection insurance, dragging down profits for the third quarter of the year.

Of the $1.15 billion, $800 million is set aside in relation to the ongoing US investigations.

French Economy Urged to Undergo “Shock Therapy”


A government-commissioned study of the French economy by industrialist Louis Gallois, the former chief of aerospace group EADS, has called for a “competitive shock therapy” for the economy, arguing that the country that is facing a “crisis of confidence”.

The analysis, complied by Gallois, called for a 30 billion euros payroll tax cut, equivalent to 1.5 percent of the French GDP, as the centrepiece of an urgent effort to stem the industrial decline that has eroded the global competitiveness of French companies.