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Home > Blogs > QFINANCE Editor > QFINANCE: News Briefing (November 29- December 4, 2012)

QFINANCE: News Briefing (November 29- December 4, 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.

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

Thursday November 29

The global economy seems to be in its best shape in 18 months according to the latest Bloomberg Global Poll of investors. Two-thirds of the surveyed described the world economy as stable or improving as the US is likely to evade the fiscal cliff and China’s forecasts are improving.

Related Viewpoint: James Anderson talks about Goldman Sachs describing it as the symbol and essence of what went wrong with western capitalism.

There is very little hope for a quick recovery in Spain the OECD club of industrialized nations declared on Thursday, according to The Economic Times. With a long recession ahead, Spain banks should focus on preventing the "substantial risk" of being cut off from external financing, the body warned in a report.

Friday November 30

China Construction Bank is the first Chinese lender to issue Renminbi-denominated bond in London, as the country’s second largest lender launched 1billion Yuan bond on Friday.  This is the first time that the "dim sum" bonds are being sold outside the People's Republic in a move welcomed by Chancellor George Osborne as a landmark moment according to The BBC.

Related Viewpoint: Gabriel Stein and Charles Dumas discuss the limits and struggles of China’s fragile ‘new prosperity’

In the UK, banks will have to raise £20-£50 billion of new capital or have radical reorganizations after the Bank of England made it clear it did not trust the way they value their books, according to The Huffington Post.

Monday December 3

The European single currency club should take ‘control’ and London should be deposed as the euro’s main financial center, France’s central bank governor Christian Noyer declared on Monday. The Telegraph reported Noyer’s statement declaring that London should no longer be Europe’s main financial hub to allow the eurozone to “control” transactions within the 17-nation bloc.

Related Viewpoint: Sovereign debt: Patricia Gabaldon on the advantages and difficulties of cuts and spending

In Australia, the central bank has cut the benchmark interest rate to 3%, by 25 basis points, following slowdown speculations of the country’s mining sector. The BBC reported that the rate cut will also serve to weaken the stubbornly strong Australian dollar.

Tuesday December 4

The newly published OECD green growth report warned that the world is 'on collision course with nature' according to The Guardian. The report declared that not curbing greenhouse gases will have disastrous impact on quality of life, especially in poor countries.

Related Viewpoint: John Vail looks at the lessons for Europe and the US that can be taken from Japan’s past stagnation

Following the launch of the Japanese election campaign, hedge funds have raised their bets that the yen will tumble in value to levels not seen since before, The Financial Times reported on Tuesday.

Wednesday December 5

Services and manufacturing sectors shrank considerably in the euro-area, Bloomberg reported on Wednesday. For the 10th consecutive month the drop suggests that the economy may struggle to pull out of a recession as governments toughen spending cuts to fight the sovereign-debt crisis.

Singapore shares rose considerably despite the drop in leading Olam International Ltd group’s shares of more than 5%, Reuters reported on Wednesday. This raises concerns about the commodities firm's financial position despite a rights issue backed by state investor Temasek Holdings.

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

Tags: banking , Ben Bernanke , central banks , China , corporate governance , credit rating agencies , EU , European Central Bank , European Monetary Union , financial crisis , Greece , IMF , regulation , sovereign debt , Spain , stocks and shares , transparency , UK , US
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