Yam warning over global monetary policy

Yam warning over global monetary policy
15-09-2009

The outgoing chief executive of the Hong Kong Monetary Authority, Joseph Yam, says central banks around the world face a difficult choice over when to tighten monetary policy.

He said doing so too soon had the potential to curb economic recovery, while maintaining the current loose monetary policy might lead to inflated asset prices.

Mr Yam said the dilemma faced by Hong Kong was made more difficult because its monetary policy followed that of the United States.

Obama says new stimulus package unlikely

Obama says new stimulus package unlikely
15-09-2009

One year on from the collapse of the investment bank, Lehman Brothers, President Obama has suggested - in a television interview - that he's unlikely to introduce a second economic stimulus package.

The demise of Lehman Brothers signalled the start of what became a global credit crisis, and led to the US government having to prop up its banking system on an unprecedented scale.

Bank crisis lessons 'not learned'

US President Barack Obama

Bank crisis lessons 'not learned'
15-09-2009

A year after Lehman Brothers collapsed, a British think-tank has warned the lessons of the crisis have not been learned.

The Institute for Public Policy Research (IPPR) says the rapid return to the City of London's bonus culture shows real reform has been "very limited".

The warnings echoed a speech by US President Barack Obama, who warned of complacency in the banking sector.

Also, British Prime Minister Gordon Brown said that there was "unfinished business" with the banking sector.

"Alarm bells should be ringing with the early signs of a 'back to business' attitude in the City and little evidence that policymakers are taking measures to ensure the next economic recovery is better balanced than the last one," said Tony Dolphin, senior economist at the IPPR.

The report warned that unless urgent action is taken, the banking crisis may not be the last of its type.

China accuses US of abusing trade rules

China accuses US of abusing trade rules
15-09-2009

The Ministry of Commerce says a US decision to impose added duty on mainland-made tyres is an abuse of World Trade Organisation safeguard measures.

Speaking at a news conference in Beijing, a spokesman for the Ministry said the duties send the wrong message to the world.

The tyre duty was applied for the first time by Washington to "safeguard" provisions Beijing agreed to before joining the World Trade Organisation in 2001.

The safeguard can be invoked if a surge in imports hurts US manufacturers. China promptly said it would seek consultations with Washington over the duties - a preliminary step toward asking for a WTO ruling on the measures.

The spokesman said that Beijing does not want to see the case negatively impact Sino-US ties, but added that Chinese officials would reiterate their opposition to trade protectionism at the upcoming G20 summit of world leaders in Pittsburgh.

The Ministry said on Sunday it would launch its own investigation into chicken parts and automotive imports from the United States.