Mindful Money’s news round-up: Monday 19th September 2011

19th September 2011

Story of the day:

From the Wall Street Journal, Africa has big potential, but those that wish to invest need a healthy appetite for risk and deep pockets

Spelling Out Growth

And the best of the rest:

More news from the emerging markets, China's securities regulator is asking the government to clamp down on the controversial corporate structure used by companies such as Sina (SINA.O) and Baidu (BIDU.O) to list overseas, and employed in thousands of other investments by foreigners into domestic Chinese companies, four legal sources told Reuters.

China company structure under threat

Also from Reuters, more investigations in the UBS ‘rogue trader', Swiss bank UBS has kicked off an internal investigation into the catastrophic failure of its risk systems after raising the amount it lost on rogue equity trades to $2.3 billion (1.4 billion pounds).

UBS starts probe into $2.3 bln rogue trade loss

The Telegraph is reporting how he slipped through the net, UBS's alleged rogue trader created "fictitious" hedges using opaque market instruments to hide losses, the investment bank confirmed on Sunday.

'Fictitious' hedges see UBS rogue trader losses climb to $2.3bn

Britain would have slipped back into recession had the Bank of England not injected £200bn into the economy through quantitative easing (QE), analysis by the central bank suggests, from the Telegraph.

QE saved Britain from double-dip recession, says Bank of England

But in the Financial Times, ministers are set to be told this autumn that a £12bn black hole has opened in the public finances, in a forecast that threatens to derail the coalition's deficit reduction strategy and prolong austerity well into the next parliament.

£12bn hole in UK public finances

Thousands of major companies will have to justify lavish rewards for senior executives and present easily digestible information about their pay, pensions and bonuses, under moves to be announced today by Vince Cable, from the Independent.

Cable: I'll force fat cats to justify bonuse

More disappointing news from the eurozone:

In the Guardian, stock markets fell sharply on Monday amid growing tensions over the EU's failure to resolve the Greek debt crisis.

Stock markets fall sharply ahead of Greek debt crisis talks

And from the BBC News, oil prices have fallen in early trading as concerns persist about the impact of the debt crisis in the eurozone.

Oil prices decline on eurozone debt concerns

However this is securing gold's safe haven status even more, in the Financial Times, European central banks have become net buyers of gold for the first time in more than two decades, the latest sign of how the turbulence in the currency and debt markets has revolutionised the bullion market.  

Central banks return as gold buyers

President Barack Obama will offer a new plan to reduce the federal deficit by about $3.6 trillion over a decade, almost half of which would come from tax increases, people familiar with the proposal said, reports the Wall Street Journal.

New Obama Deficit Plan

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