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Home > Blogs > QFINANCE Editor > QFINANCE: News Briefing (October 10–16, 2012)

QFINANCE: News Briefing (October 10–16, 2012)

Each week QFINANCE.com 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.

If you have any views on how we can improve this service or new areas you would like to see covered, please do not hesitate to contact us at qfinancenews@bloomsbury.com

Wednesday October 10


In South Africa, following major strikes in the mining sector, Finance Minister Gordhan is confident the currency will bounce back quickly enough, Reuters reported. As the most important platinum producer, South Africa’s labor unrest has considerably affected the mining industry already.

The International Monetary Fund sent warnings on Wednesday that the global financial risks have increased. Head of IMF Chrisitne Lagarde insisted on the global effects of the economic crisis starting to hurt emerging countries too, the BBC reported. "We need action to lift the veil of uncertainty", Lagarde said.


Thursday October 11


Spain's delay in requesting a bailout doesn't look like a prudent bet as the country was downgraded from BBB+ to BBB- on Thursday by Standard & Poor’s rating agency. This shows a deepening of the recession according to the BBC and increase of pressures on the country’s finances.

Following doubts and questionings in the past weeks, EADS and BAE have failed to reach an agreement as the deal collapsed on Thursday. Three major reasons failed the attempt to build a European giant to rival US Boeing according to The FT:  French concerns about influences on industrial choices, UK’s desire that France and Germany lose state control and German worries over defense role and plant closures.


Friday October 12


India’s finance minister said last Friday that the country’s inflation would remain “sticky” in the near future. This is partly due to commodity and energy prices globally which represent a major risk to India’s growth, NASDAQ reported.  Minister P. Chidambaram declared that "while inflation rate has moderated, it still remains beyond the comfort zone of the Reserve Bank of India”.

In the UK, the Financial Services Authority head said that cuts could hit economic growth for years. Lord Turner also suggested it may be time for more unconventional policies to stimulate the country, the BBC reported.


Monday October 15


The 2012 Nobel Prize of economics was awarded to Americans Alvin Roth and Lloyd Shapley on Monday. The Royal Swedish Academy of Sciences was particularly appreciative of the pair’s "theory of stable allocations and practice of market design" which was described by the BBC as a form of economic engineering.

In the US, Federal Reserve Chairman Bernanke is defending the bank’s monetary easing strategy following attacks from leaders and policy makers around the world. In response to strong criticism Bernanke encouraged other countries to develop political economies to let their currencies appreciate, the Wall Street Journal reported.


Tuesday October 16


Recent reports revealed that coffee group Starbucks paid nothing in corporation tax in the UK over the last three years. With 1.2 billion pounds of sales since 2009, Starbucks has been reporting high profits to its investor while telling the authorities it was making losses, and thereby not liable for tax, Reuters reported yesterday.

Also in the UK, newly published statistics showed that inflation has fell to its lowest in the past three years, The Guardian reported. Consumer price inflation dropped to 2.2% last month, the lowest since November 2009, according to The Office for National Statistics.

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

Tags: banking , Ben Bernanke , central banks , economic recovery , EU , euro , European Central Bank , financial crisis , IMF , regulation , Spain , transparency , UK
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