China’s Communist Party leadership faces a dilemma over where to set a growth goal for 2014 as President Xi Jinping wrestles with sustaining expansion while limiting debt risks, environmental damage and social unrest. The target, set at 7.5 percent last year, will be announced at this week’s meeting of the National People’s Congress in Beijing. In a Bloomberg News survey, 63 percent of economists predict the same number this year, while 33 percent see either a 7 percent goal or a range, such as

March 3, 2014

WASHINGTON (AFP) ― The International Monetary Fund came out Wednesday in support of the fight against income inequality, with Fund economists saying income redistribution efforts can strengthen economic growth.Plunging into a debate over the gap between rich and poor that is fueling political battles from the United States to Brazil to Thailand, economists from the Fund said there is already general agreement that inequality can fuel economic and political instability.But do policies to redistri

Feb. 27, 2014

The Bitcoin community was thrown into turmoil Tuesday after the disappearance of what had been its biggest exchange, shaking confidence in the fast-growing virtual currency.Critics said the failure of the Tokyo-based Mt. Gox exchange and the apparent loss of some $300 million in Bitcoins highlighted flaws in the cryptocurrency, while others said it was merely a bump in the road.The value of a Bitcoin tumbled more than $100 in early trades but then recovered to fetch $517 at 2200 GMT, according t

Feb. 26, 2014

CHICAGO (AFP) ― General Motors on Tuesday significantly expanded the recall of vehicles found to have an ignition defect that can cause them to suddenly turn off, a problem linked to 13 deaths.The largest U.S. automaker will now recall 1.6 million vehicles in the United States, Canada and Mexico.The original recall, issued about two weeks ago for nearly 780,000 vehicles, was linked to 22 crashes where the front seat airbags did not deploy, and six deaths.The defect stems from a weakness in the i

Feb. 26, 2014

WASHINGTON (AFP) ― Switzerland’s second largest bank, Credit Suisse, used elaborate measures to find wealthy clients and help an estimated 19,000 U.S. customers evade American tax authorities, a scathing report from a Senate inquiry said Tuesday.The report contains the results of a two-year Senate investigation and comes a day before the heavily-anticipated questioning of Credit Suisse chief Brady Dougan and other top bank officials before the panel.Bank figures suggest there were “nearly 19,000

Feb. 26, 2014

Federal Reserve Gov. Daniel Tarullo said central bankers must preserve the option of using interest rates to lean against dangerous financial bubbles even as they strengthen supervisory tools to curtail systemic risk. “Monetary policy action cannot be taken off the table as a response to the build-up of broad and sustained systemic risk,” Tarullo said Tuesday at a conference of the National Association for Business Economics in Arlington, Virginia. An array of other tools, such as rules that wou

Feb. 26, 2014

BARCELONA (AFP) ― Smartphone makers are fighting for space on your wrist and your head; lucrative real estate for a new wave of high-tech devices if only they can persuade you to wear them.Manufacturers unleashed a battery of new wearable devices at the world’s biggest mobile fair in Barcelona, Spain, trying to carve out new revenue sources in developed markets where smartphone sales are slowing.From smart bracelets that track your fitness to watches and glasses that let you take a call or check

Feb. 25, 2014

VATICAN CITY (AFP) ― Pope Francis on Monday created a new finance ministry to oversee the Holy See’s economic affairs in a move the Vatican said was aimed at helping the poor and increasing transparency, following a wave of scandals. The ministry will be headed up by Australian Cardinal George Pell, and will prepare an annual budget for the Vatican as well as imposing international financial standards, the Vatican said in a statement.“The Holy Father today announced a new coordination structure

Feb. 25, 2014

Microsoft Corp., under new Chief Executive Officer Satya Nadella, will accelerate a push into mobile software, joining forces with hardware manufacturers and Qualcomm Inc. to develop cheaper phones for emerging markets. Microsoft said Sunday it’s working with Qualcomm on a low-cost phone design that developers and handset makers can use to build their own devices, and added partners including Lenovo Group Ltd. to make Windows smartphones. Nokia Oyj, whose mobile-phone business will become part o

Feb. 24, 2014

BARCELONA (AFP) ― Rising Chinese smartphone maker Huawei launched Sunday a connected watch to rival Samsung’s Gear 2, both unveiled on the eve of the world’s biggest mobile fair in Barcelona, Spain.Huawei, already a major force in building mobile networks and the world number three smartphone maker in 2013, showed off its TalkBand, to be sold for 99 euros ($136).Connected by Bluetooth to a smartphone, the watch lets you receive calls and messages without removing your mobile from your pocket, as

Feb. 24, 2014

NEW YORK (AP) ― Netflix has reached a deal with Comcast to ensure that its TV shows and movies are streamed smoothly to households, the first deal the online video streaming service has reached with an Internet service provider.The two companies said in a joint statement Sunday that they are establishing a more direct connection to provide a better service to customers that will also allow for future growth in Netflix traffic. The companies say the arrangement is already giving customers a bette

Feb. 24, 2014

European Central Bank President Mario Draghi said policymakers are ready to add to stimulus if the outlook for prices deteriorates, though there are currently no signs of deflation in the euro area. “We don’t have any evidence of people postponing their expenditure plans with a view to buying the same thing at lower prices, in other words we don’t see what is defined to be deflation,” Draghi said after a Group of 20 meeting in Sydney Sunday. “We are aware of the risks. The Governing Council is w

Feb. 24, 2014

China’s Finance Minister Lou Jiwei played down yuan declines and the risks from shadow banking as central bank Governor Zhou Xiaochuan signaled that the nation’s economy can sustain growth of between 7 percent and 8 percent. Expansion prospects are suitable and can boost global economic growth, Zhou said. Possible defaults in some wealth-management products don’t reflect a “big problem” and recent yuan weakness is within a normal range, the finance minister told Bloomberg News. China is stressin

Feb. 24, 2014

WASHINGTON (AP) ― It looks like the U.S. government is more conflicted about cellphones on planes than most American travelers. Even as one federal agency considers allowing the calls, another now wants to make sure that doesn’t happen.Passengers ― particularly those who fly often ― oppose allowing calls in flight, polls show. In line with that sentiment, the Department of Transportation signaled in a 22-page notice posted online Friday that it wants to retain a ban on the calls. But the notice

Feb. 23, 2014