Category: News Desk

Japan Retains Status as World’s Top Creditor Nation


Japan has retained its position as the world’s top creditor nation in 2011, a title it has held on to for the past 21 years. According to data released by the Ministry of Finance, Japan held a net 253 trillion yen ($3.19 trilion) in foreign assets at the end of 2011, a 2 trillion yen increase from the previous year.

The data may help ease worries in Japan that China might soon surpass it as the world’s largest creditor nation, further eclipsing Tokyo’s presence in the global economy.

Eurozone Poses Greatest Risk to Global Economy: OECD


The global economy is slowing gaining momentum, but the Organisation for Economic Cooperation and Development warns that recovery is extremely uneven across different regions and could be derailed by the crisis in the euro area.

In its twice-yearly economic outlook, the Paris-based Organisation for Economic Cooperation and Development forecast that global growth would ease to 3.4 percent this year from 3.6 percent in 2011, before accelerating to 4.2 percent in 2013, in line with its last estimates from late November.

EU May Order France To Overturn Monsanto Ban


The European Union’s food safety body, the European Food Safety Authority (EFSA), said on Monday that it would consider forcing France to lift its ban on a Monsanto strain of genetically modified maize, after ruling that there was no “specific scientific evidence” to the strain’s impact on health or the environment.

In 2008, France banned the MON 810 strain of maize following public protests against the crop; though this decision was eventually overturned by a French court in 2011.

Students & Teachers Unite Against Education Cuts In Spain


Spain’s education system came to a grinding halt on Tuesday after teachers and students across the entire education sector – from kindergarten to university – went on strike to protest the 3 billion euros ($4 billion) in education spending cuts that were approved by the government last week.

The protest was the first ever strike that had been jointly coordinated by Spain’s five main teachers’ unions; and saw all but three of Spain’s 17 regions participating in the stoppage.

Hollande Pushes For Eurobonds Despite Obstinate German Opposition


Despite tough opposition from Germany, French president Francois Hollande is expected to revisit the idea of Eurobonds at the EU Summit later this week. Hollande is pushing Eurobonds as a way to propel economic growth, but a German official has insisted that the proposal is “the wrong prescription at the wrong time”.

French Socialist Francois Hollande has made it clear that he wants to re-introduce Eurobonds as a way for mutualising European debt.

US Allows China to Purchase Govt Debt Directly From Treasury


The United States has allowed China to purchase government debt directly from the Treasury Department, bypassing primary dealers in Wall Street. According to Reuters, the agreement is the Treasury’s first-ever direct relationship with a foreign government.

Under the arrangement, the People’s Bank of China, the single largest buyer of US debt, will be able to purchase bonds via a direct computer link to the Treasury’s auction system. However, if China wants to sell the bonds it still has to go through the market.

Infographic: What You Need To Know About The Keystone XL Pipeline


The proposed Keystone XL pipeline has been the subject of debate among the major players in the North American Energy Industry. While the oil sands in Canada are believed to hold nearly 2 trillion barrels of oil (with 99 percent of the exports expected to end up in the American Midwest), concerns have grown over the construction of the pipeline, which may expose the U.S. to environmental and ecological risks.

South Korea To “Drastically” Increase Missile Capabilities


South Korea’s defence ministry plans to spend up to 2.5 trillion won ($2.1 billion) over the next five years in order to purchase 500-600 new cruise and ballistic missiles that will supplement the nation’s defence against the neighbouring North Korean military, said a report by the Yonhap News Agency on Tuesday.

China Promises to Make Growth a Bigger Priority


Chinese Premier Wen Jiabao has called for stimulus policies that would boost the nation’s slowing economic prospects, raising expectations that the government will undertake new expansionary measures to prevent a hard landing for the world’s second largest economy.

Speaking to reporters during a visit to the city of Wuhan, Premier Wen gave no details of the possible new measures, but added that it was necessary to keep inflation in check, while keeping growth a top priority.

Key Economic News to Watch This Week: May 21


Last week, investors witnessed a modern-day bank run in Greece when reports indicated Greek depositors pulled nearly $1 billion from local banks, while borrowing costs for Italy and Spain rose sharply fuelled by fears of the potential for a Greek euro exit and the deteriorating health of the respective banking systems. As EU inspectors head to Portugal on Monday and ahead of the EU Council meeting this Friday, the crisis in the eurozone is expected to hog headlines once again.