Riot in China's Xinjiang kills 16, 'terror gang' blamed

BEIJING Mon Dec 16, 2013 3:46am EST

(Reuters) - Chinese police shot and killed 14 people during a riot near the old Silk Road city of Kashgar in which two policemen were also killed, the local government said on Monday, the latest unrest in a region that has a substantial Muslim population.

China has previously called some of the violence in the far western region of Xinjiang the work of Islamist militants plotting holy war.

Describing the incident which happened late on Sunday, Hua Chunying, a spokeswoman for the Ministry of Foreign Affairs, stopped short of directly blaming Islamist militants but said a "violent terror gang" attacked police with explosives.

Draghi Ally Asmussen to Leave ECB for German Government

By Paul Gordon and Rainer Buergin  Dec 16, 2013 10:49 AM GMT+0200

Joerg Asmussen is to leave the European Central Bank’s Executive Board for a government position, depriving President Mario Draghi of a key German ally.

Asmussen, 47, will become deputy labor minister in German Chancellor Angela Merkel’s government and will shortly resign from his post at the ECB, he said in a statement distributed by the Frankfurt-based institution yesterday. Asmussen has been on the six-person Executive Board, which implements monetary policy for the euro area, since January 2012. His term was scheduled to run until 2019.

How Real Is Greece's Oil And Gas Future?

Forbes

If you’ve been watching Greece’s recent energy push lately, it’s been difficult not to get too excited about the country’s potential. From political commentators to Prime Minister Antonis Samaras himself, the message has been enthusiastic and clear – Greece is home to billions of barrels of oil, trillions of cubic meters of gas and most importantly for a country saddled with the longest recession in modern history, billions in potential revenue.

Greek exit from eurozone remains a possibility

The Guardian

By Niels Pratley

Thinktank points out the Greece's public debt – currently at 170% of GDP – is still unsustainably high

It's been a good year for the eurozone crisis in the sense that flare-ups have been few and minor. But here comes thinktank Capital Economics with the gloomy diagnosis that Greece's public debt (currently at 170% of GDP) is still unsustainably high and "the country's crisis is not yet over". That is despite the clear improvement in the public finances since the second bailout in 2012.

China Auto Sales Gain 16% as Japan Automakers Extend Rebound

By Bloomberg News - Dec 10, 2013

China’s passenger-vehicle sales rose 16 percent in November as Japanese automakers extended their recovery in the world’s largest auto market.

Wholesale deliveries of cars, multipurpose and sport utility vehicles climbed to 1.7 million units last month, the state-backed China Association of Automobile Manufacturers said today. That compares with the median 1.69 million units estimate of four analysts surveyed by Bloomberg News.

Trade can break down China’s Great Firewall

The Washington Post

By Marcus W. Brauchli and Lee C. Bollinger, Published: December 11

Beijing has hinted ominously that it might rescind the right to live in China from as many as two dozen foreign journalists based there for U.S. news organizations.

Such a mass eviction would be a dramatic escalation from its previous practices of denying visas to individual reporters and blocking access to foreign news organizations’ Web sites or suspending the distribution of their publications in China.

EU argues over joint rescue plan for eurozone banks

BBC

11 December 2013 Last updated at 11:31 GMT

The EU is edging towards a common mechanism for rescuing problem banks, in a drive to avoid any repetition of taxpayer-funded bailouts.

EU finance ministers finished marathon talks early on Wednesday - but they will try again next week to reach a deal on the eve of an EU summit.

Bank failures triggered the eurozone financial crises that struck the Republic of Ireland, Spain and Cyprus.

The new rescue blueprint would involve transferring powers to a new EU agency.

There are arguments over the future scope of that agency's powers - and the plan still has to be agreed with the European Parliament.

China bitcoin arbitrage ends as traders work around capital controls

BY GABRIEL WILDAU

SHANGHAI Wed Dec 11, 2013 7:17am EST

(Reuters) - The price gap between bitcoins trading in Chinese yuan and those sold for other currencies has evaporated in recent days, highlighting the porous nature of China's capital controls.

Chinese bitcoin chat rooms buzzed last month as investors noticed that the digital currency as sold on China's biggest exchange was more expensive, in dollar terms, than bitcoins traded abroad using dollars, creating a tempting arbitrage play.

Traders could earn profits by buying bitcoins using dollars on a foreign exchange such as Mt. Gox, reselling them for yuan at the higher price on BTC China, the main local exchange, and finally converting the yuan back to dollars.

EU Week Ahead Dec. 9-13: Pre-Christmas Scramble

December 9, 2013, 4:43 AM

By Tom Fairless

The Wall Street Journal

The pre-Christmas summit bonanza moves into full swing this week, as European Union governments scramble to finalize legislation that they pledged to have in place by year-end. In particular, EU finance ministers hope to reach a deal on a system to centralize control of failing banks, known as the single resolution mechanism: Germany has so far held out against the European Commission’s plan for a central decision-making authority and fund, which it worries could violate EU treaties. Euro-zone finance ministers will also gather to discuss the progress of the bloc’s bailed-out members, with Greece, as ever, high on the agenda.

China Adopts Board-Game Strategy to Blunt U.S. Pivot to Asia

By Bloomberg News  Dec 10, 2013 8:42 AM GMT+0200

The foreign policy strategy emerging from China’s new leadership may include a series of incremental steps calibrated to blunt U.S. influence across Asia and sow doubt about America’s commitment to its allies in the region.

Potential next steps following last month’s imposition of an air defense zone over the East China Sea in the face of U.S. condemnation include more vigorously challenging aircraft that enter the area, imposing a similar zone over disputed territory in the South China Sea and asserting naval control over islands also claimed by other nations.

Greece: Public sector no longer too large

By Associated Press, Published: December 6

ATHENS, Greece — Greece no longer has too many public servants and is close to reaching staff reduction targets demanded by bailout lenders two years before the deadline, the government said Friday.

Administrative Reform Minister Kyriakos Mitsotakis also insisted that his bailed out eurozone member country is on the brink of recovery.

The number of workers on the state payroll has been slashed from 913,000 at the end of 2009 to 681,392 on Nov. 30, with annual spending on wage costs reduced by just over one-third, the government said.

Slower China inflation reduces worries of tighter policy

BY KEVIN YAO

BEIJING Mon Dec 9, 2013 2:58am EST

(Reuters) - China's annual consumer inflation unexpectedly slowed in November, easing market fears of any imminent policy tightening as authorities meet this week to outline their policy and reform priorities for 2014.

Rising money market rates and bond yields indicate the People's Bank of China (PBOC) is tightening liquidity conditions, to reduce debt levels and contain credit growth, but there is little sign of a sharp turnaround in monetary policy.

Annual consumer inflation unexpectedly slowed to 3 percent in November from an eight-month high of 3.2 percent, the National Bureau of Statistics said on Monday. Analysts had expected the inflation rate to hold steady at October's level.

Greece's Reforms Have Only Cracked the Surface

Powerful vested interests thrive on the levies, fees, subsidies and barriers to entry that Greece needs to eliminate.

The Wall Street Journal

By ARISTIDES N. HATZIS

Dec. 5, 2013 3:15 p.m. ET

Last week Ángel Gurría, the secretary-general of the Organization for Economic Co-operation and Development, visited Athens to present the OECD's latest economic survey of Greece. Since 2010, the report said, Greece "has made impressive headway in cutting its fiscal and external imbalances and implementing structural reforms to raise labor market flexibility and improve labor competitiveness."

But the OECD also emphasized that "more needs to be done." The organization's assessment of competition in four key sectors in Greece, also released last week, identified 555 problematic regulations and 329 provisions.

Greek Parliament Approves 2014 Budget

Move Comes As the County and Bailout Creditors Are at Odds Over Budget Cuts for Next Year

The Wall Street Journal

Greece's parliament early Sunday morning approved the government's 2014 budget, ahead of an important meeting of eurozone finance ministers next week and despite not having agreed with bailout creditors over further cutbacks needed for next year.

By Nektaria Stamouli

ATHENS—Greece’s parliament early Sunday morning approved the government’s 2014 budget, ahead of an important meeting of eurozone finance ministers next week and despite not having agreed with its bailout creditors over further cutbacks needed for next year.

Corruption in the Middle East

More than red tape

Dec 8th 2013, 18:52 by S.B. | MANAMA

The Economist

THE latest Corruption Perceptions Index by Transparency International, a lobby, does not make happy reading for those in the Middle East. Five Arab countries come among the bottom ten countries for corruption: Somalia, Sudan, Libya, Iraq and Syria. The highest ranking of the 177 states included in the study is the UAE at 26. Qatar comes two places further down. Israel fares slightly worse in 36th position. The other Gulf countries do best among the remaining Arab states: Bahrain, Oman, Saudi Arabia follow the UAE and Qatar. Egypt. which desperately needs to kick start its economy after almost three years of turmoil, comes in at a lousy 114 (joint with Indonesia).

Nelson Mandela

The long walk is over

Dec 5th 2013, 22:10 by The Economist

Strikes in Greece

The Economist

University staff have been on strike for 13 weeks without an end in sight

Dec 7th 2013 | ATHENS |

WHAT a difference a crisis can make. The same Greek students who used to stage months-long sit-ins to press for a bigger say in running university affairs are now desperate to get back to studying. A strike by administrative staff has shut Athens University and the Athens polytechnic, the country’s best higher-education institutions, for 13 weeks. New undergraduates have been unable to register for courses, let alone attend classes. Striking administrators have locked lecture halls, libraries and laboratories and kept the keys. “We’ve effectively lost the first semester of this academic year…so dozens of my students won’t be able to take their degrees on time,” says a frustrated law professor.

Kazarian Says Greece Needs Clean Numbers for Investors

By Marcus Bensasson - Dec 6, 2013 2:01 AM GMT+0200

Bloomberg 

Paul Kazarian, the U.S. investor buying up Greek government bonds, calls the European Union’s accounting “completely irrational” and wants to help finance an alternative to allow Greece to return to the debt markets.

The founder of Japonica Partners & Co. said in a Dec. 3 interview in Athens that applying International Public Sector Accounting Standards would give bond markets the same kind of audited financial statements that equity investors are accustomed to. Kazarian, who started a tender offer for the Greek securities in June, said the EU method of measuring member states’ public finances overstates the level of indebtedness.

“If you really want to be back in the capital markets and soon, you have to deliver, you have to show some early wins,” Kazarian, 58, said. “Show your debt number, give access to it and verify it, and then have the dialogue: ‘So which number is right?’ Is it a legal definition that has absolutely no economic rationality to it, or is the world-class standard the right debt number?”

Greece Struggles to Outlaw Its Golden Dawn Fascist Party

Conservative Government Mounts Risky Effort to Declare Group a Criminal Organization

The Wall Street Journal

By MARCUS WALKER and MARIANNA KAKAOUNAKI

Updated Dec. 4, 2013 11:37 p.m. ET

PIRAEUS, Greece—At a dark crossroads here in September, Greek police kept a safe distance while black-clad activists from the fascist movement Golden Dawn chased and attacked Pavlos Fyssas, a 34-year-old rapper.

China Bans Financial Companies From Bitcoin Transactions

By Bloomberg News - Dec 5, 2013 12:25 PM GMT+0200

China’s central bank barred financial institutions from handling Bitcoin transactions, moving to regulate the virtual currency after an 89-fold jump in its value sparked a surge of investor interest in the country.

Bitcoin plunged more than 20 percent to below $1,000 on the BitStamp Internet exchange after the People’s Bank of China said it isn’t a currency with “real meaning” and doesn’t have the same legal status. The public is free to participate in Internet transactions provided they take on the risk themselves, it said.

The ban reflects concern about the risk the digital currency may pose to China’s capital controls and financial stability after a surge in trading this year made the country the world’s biggest trader of Bitcoin, according to exchange operator BTC China. Bitcoin’s price jumped more than ninefold in the past two months alone, prompting former Federal Reserve Chairman Alan Greenspan to call it a “bubble.”