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Home > Blogs > QFINANCE Editor > QFINANCE: News Briefing (September 19-25, 2012)

QFINANCE: News Briefing (September 19-25, 2012)

Each week brings you some of the biggest news stories from the past five days in finance and business – essential reading to keep you up to date with the latest topics.

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Wednesday September 19

The central Bank of Japan (BoJ) has broaden its asset purchasing program by 10trillion yen ($126bn; £78bn), the BBC reported on Wednesday. Following the Fed announcement of a new quantitative easing program last Friday, the Japanese are also aiming at boosting the economy by boosting the overall size of the stimulus to 80tn yen.

The Financial Times reported that Saudis have offered extra oil supplies to their major customers including the US and Europe. This has been interpreted as a sign of worry about the rising prices on the global economy, the daily said.

Thursday September 20

Russian group Rosneft is looking for financing solutions to potentially buy a 50% stake in the BP oil venture the FT reported last Thursday. As BP is seeking to exit the TNK-BP venture, the potential deal is estimated at $15bn, the FT said.

In the aftermath of the phone hacking stories, News Corp was sued by its shareholders before a US court for failing to stop the scandal, putting their own interest ahead and treating the company as “a family candy jar", The Independent reported on Thursday.

Friday September 21

After the release of yet another US quantitative easing program last week, Brazil’s finance minister Mantega denounced last Friday the “protectionist” move declaring that it will bring back the currency wars which could have terrible consequences on the rest of the world. Guido Mantega told the FT on Friday that the Federal Reserve’s QE3 program would “only have a marginal benefit [in the US] as there is already no lack of liquidity... and that liquidity is not going into production.”

The Daily Telegraph reported on Friday that Microsoft and Hewlett-Packard technology groups were accused of using offshore units to hide billions of dollars from US taxes and taking advantage of loopholes in the tax code.

Monday September 24

In the UK, Business Secretary Vince Cable announced on Monday a scheme to supply $10bn to businesses shut out of borrowing from the high street banks.  At a Liberal Democrats conference, cable declared: " I am working with the Chancellor to develop a state-backed institution that will combine up to a billion pounds of new government capital with a larger private contribution”, The Week reported.

British Aerospace group BAE Systems has threatened to walk away from the €35bn offered deal with EADS if it affects its relationship with the Pentagon, the FT reported on Monday.  “BAE will not do this deal if its Special Security Arrangement has to change to look more like that of EADS,” a person close to group told the FT.

Tuesday September 25

Following the LIBOR scandal and traders manipulating benchmarks in the past months, the British Banker’s Association declared giving up overseeing the London interbank offered rate. It seems the FSA might consider bringing the oversight of the benchmark under the control of regulators, Bloomberg reported on Tuesday.

The International Monetary Fund (IMF) warned about the risks and limits of the newly announced global reforms. Regulators need to consider destroying big banks if this is what it takes for the global economy to be safer the IMF said, warning that the global systems remains “vulnerable and overly complex”, The Telegraph reported.

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Come back next week for another report on the world of business and finance.

Tags: banking , Ben Bernanke , central banks , China , corporate governance , economic recovery , EU , euro , European Central Bank , European Monetary Union , eurozone , financial crisis , fiscal stimulus , GDP growth , Greece , Greek debt , IMF , Ireland , regulation , sovereign debt , Spain , UK , US , US economy
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