Former U.S. Treasury Secretary Henry Paulson identified the ultimate size of China's list of industries barred from foreign investment as the top issue facing negotiators working on a proposed Bilateral Investment Treaty. "It was a very big and positive change when China agreed to publish the negative list. So now the key will be to make this list as small as possible," Paulson said.
A disputed tax rebate strategy was the focus of a raid by German authorities on Deutsche Bank's Frankfurt headquarters. Prosecutors described "wide-ranging investigative measures," but the bank said no employees have been charged with any wrongdoing.
Brazil, Russia, India, China and South Africa should cooperate more actively as the world's leading developing economies, said Zhang Dejiang, chairman of the Standing Committee of the National People's Congress. That cooperation should include economic development but also a greater role in achieving what Zhang described as a more reasonable international order.
The two sides in the Greek debt crisis appeared to be hardening their positions as talks were extended, with the Greek prime minister rallying his party and the creditor side expressing heightened frustration. Greek officials have sounded recent notes of optimism that a deal can be reached, but eurozone finance ministers have dismissed these as unrealistic given the wide gap in differences.
A National Association for Business Economics survey on the U.S. economy reveals a less optimistic outlook, with lowered expectations for jobs and growth this year. Contributing factors include the strength of the U.S. dollar and low oil prices that are hurting domestic investment in that industry.
The rush of global equity funds into South Korea after the 2008-09 financial crisis in the U.S. due to the wider gap in interest rates between the two countries is beginning to reverse. This comes as the spread between Korean and U.S. Treasury bonds narrows to less than 7 points from 20 to 30 basis points.
Disappointing first-quarter results in the Philippines has probably put the upper end of the government's growth target range of 7% to 8% out of reach, but the lower end remains a possibility, said Economic Planning Secretary Arsenio Balisacan. The 5.2% economic growth rate in Q1 was largely due to lower-than-expected government spending, but "it is reasonable to believe that the economy will grow at a faster rate in the next quarters," Balisacan said.
Asian investors accounted for 95% of those taking advantage of Zhongrong International Trust's first U.S. dollar bond. Total orders topped US$575 million for the US$225 million three-year bond issue.
There has been a fundamental shift in the U.S. economy since the recession, in which full-time workers have been replaced by reluctant part-timers, a fact that may hold down wages with major implications for monetary policy, according to a study by the Federal Reserve Bank of San Francisco. The report also suggests the U.S. may be nearer full employment, such as it is, than previously believed.