China signs yuan accords with France, Luxembourg

SHANGHAI (AFP) ― China’s central bank said it has signed agreements for yuan clearing arrangements with France and Luxembourg, with the aim of promoting greater use of its currency overseas.The People’s Bank of China said it would designate Chinese banks as the yuan clearing institutions in the two European countries later, according to statements issued on Sunday.China earlier this month named the Bank of China as the clearing bank for yuan dealings in Frankfurt, Germany, and the China Construc

June 30, 2014

Corporate tax schemes hurt developing countries: IMF

WASHINGTON (AFP) ― Developing economies are increasingly hurt by the way global corporations exploit taxation differences and move profits to low-tax locations, according to an International Monetary Fund report Wednesday.But few countries can protect themselves in a competition for direct investment that increasingly appears like a “race to the bottom” in setting corporate tax rates, the IMF said.Moreover, companies are increasingly able to shift and relocate more intangible assets ― like intel

June 26, 2014

U.S. consumer confidence rises

WASHINGTON (AFP) ― U.S. consumer confidence increased for the second straight month in June to its highest level since January 2008, when the U.S. economy was sinking into recession, The Conference Board reported Tuesday.The consumer confidence index rose to 85.2, up from 82.2 the previous month, with consumers more positive about the outlook for the labor market and holding greater expectations overall for the next six months.“Expectations regarding the short-term outlook for the economy and jo

June 25, 2014

With Putin in Vienna, Gazprom signs Austria pipeline deal

VIENNA (AFP) ― Coinciding with a visit to Vienna by Russian President Vladimir Putin, Russian energy giant Gazprom on Tuesday signed a deal with Austria’s OMV approving the EU country’s section of the controversial South Stream pipeline.The crisis in Ukraine has made the planned pipeline bringing Siberian gas to the European Union ― bypassing Ukraine ― a new focus of tensions between Moscow, Brussels and Washington.EU member Bulgaria earlier this month said it was suspending work on building its

June 25, 2014

Oracle to buy out Micros for $5.3b to boost cloud effort

NEW YORK (AFP) ― Business software giant Oracle said Monday it was buying rival Micros Systems for $5.3 billion in a deal to expand its big data efforts in key retail sectors.The acquisition is the biggest for Oracle since buying Sun Microsystems in a deal announced in 2009 and closed in 2010.The all-cash takeover comes from Oracle’s $39 billion cash stockpile and comes after the software giant founded by Larry Ellison produced disappointing results over the past quarter.“Oracle has successfully

June 24, 2014

Yahoo aims for Android smartphone home screen

SAN FRANCISCO (AFP) ― Yahoo on Monday ramped up its move to mobile, grabbing for Android smartphone home screens with an Aviate application tuned to where people are.Yahoo bought Aviate early this year in a deal reported to be valued at about $80 million dollars. The software was subsequently honed with a test group.An English language version of Aviate for handsets powered by Google-backed Android software made its global debut on Monday, in a move to give new prominence to Yahoo on the smartph

June 24, 2014

Brazil economists cut growth forecasts

Brazil economists cut both their 2014 and 2015 economic growth forecasts for the fourth straight week, as above-target inflation continues to sap purchasing power and confidence. Brazil’s economy will expand 1.16 percent this year and 1.60 percent next year, compared with the previous week’s forecast of 1.24 percent and 1.73 percent, respectively, according to the June 20 central bank survey of about 100 analysts published today. President Dilma Rousseff, who is up for re-election in October, ha

June 24, 2014

France clinches deal to take controlling stake in Alstom

PARIS (AFP) ― France on Sunday clinched a deal to take a stake in Alstom, a move aimed at preserving the country’s strategic interests in the face of a bidding war for the French engineering giant.The transaction would make the state the main shareholder, give it voting rights in Alstom and pave the way for U.S. giant General Electric to buy the French group’s energy business.“We have a deal that was concluded this afternoon which allows the state to become the main shareholder of Alstom with a

June 23, 2014

Cameron to press Juncker appointment

LONDON (AFP) ― British Prime Minister David Cameron will meet with EU Council President Herman van Rompuy in London on Monday to press his case against the appointment of Jean-Claude Juncker as head the European Commission.The British leader is ready to force fellow EU leaders to vote on who should head the Commission, the EU’s executive arm, in a last ditch attempt to block Juncker, Downing Street sources said Sunday.Cameron views the former long-serving Luxembourg prime minister as a federalis

June 23, 2014

Low rates, rising confidence light takeover fires

PARIS (AFP) ― Low interest rates are stoking the fires of takeovers, with about a quarter of big groups now on the lookout for targets in the next 12 months, a study found this week.The signs are clear “that plans for transformational acquisitions are accelerating,” the survey by consultancy EY concluded.The pharmaceutical sector has led the way so far this year with deals worth $150 billion, according to consultancy Dealogic, and that does not include a failed bid worth $117 billion by U.S. fir

June 22, 2014

IMF considers ending exemption that enabled 2010 Greek loan

The International Monetary Fund is considering creating a new way for indebted countries to get large loans and dropping a exception to its lending rules that enabled Greece to obtain a loan in 2010 without having to first restructure its debt. The exemption was established at the start of the European debt crisis to prevent contagion by allowing some nations to receive financing even though the fund could not say with “high probability” that their debt was sustainable. In a report released toda

June 22, 2014

Fed holds course on cut to U.S. growth forecast

WASHINGTON (AFP) ― The Federal Reserve slashed its 2014 growth forecast for the U.S. economy after the rough winter but kept policy on hold on Wednesday, showing faith in a modest rebound.Fed Chair Janet Yellen said the economy had picked up after the first quarter‘s contraction, but she also downplayed a pickup of inflation as any sign of a need to tighten monetary policy.As expected the Federal Open Market Committee cuts its stimulus program back by another $10 billion, to $35 billion a month,

June 19, 2014