National Bank Of Greece (ADR) (NYSE:NBG) The Program I Of Mortgage Covered Bonds

 There was a recent release of Program I by National Bank Of Greece (ADR) (NYSE:NBG) and has been rated as B+.  It has been given an updated outlook of ‘Stable’ from the earlier ‘Negative’ outlook. There has been overall positive news from the earnings side for National Bank Of Greece (ADR) (NYSE:NBG).

Raising money in Greece

For past two or three years to raise money in Greece has become very difficult. By the mid of year 2013, there were only four major banks that were able to raise 10% of their capital needs with the help of private investors. In all this National Bank Of Greece (ADR) (NYSE:NBG) just made their way marginally by touching the minimum private capital sourcing. There is a difference in the situation today as National Bank Of Greece has to come up with 2.2 billion Euros as an additional capital.

The limitations of U.S investors

There are a lot of limitations for the investors in U.S to put their investments in Greece. The major reason is the small number of Greek companies on major U.S exchanges. To get larger investment options, the investor can open an account with greater reach to international trading. There are few platforms that allow trading on the Frankfurt Stock Exchange. This exchange has a few more Greek companies added to it. To get even more options an account with a reach to Athens Stock Exchange can be a major benefit. If the investment needs to be done within U.S then investing in the National Bank Of Greece (ADR) (NYSE:NBG) is a better option. To get more exposure of the Greek stocks across the major industry segments, the Global X FTSE Greece 20 ETF has many of them.

Source: NYSEPOST

   

New York Times: European Finance Ministers Approve New Loans for Greece April 1, 2014

By NIKI KITSANTONISAPRIL 1, 2014

ATHENS — Euro zone finance ministers, meeting in Athens under tight security on Tuesday, approved the release of 8.3 billion euros in rescue loans to Greece, pointing to signs that the country is emerging from its economic crisis.

“It has been an arduous process, but now we have a positive outcome,” Jeroen Dijsselbloem, the Dutch finance minister and head of the Eurogroup of finance ministers, said at a news conference in Athens announcing loans worth $11.5 billion.

In light of recent street demonstrations by Greeks protesting the belt-tightening measures that have been necessary to keep the bailout money flowing, security in Athens was stepped up for the event. The police banned demonstrations in much of the city center, and helicopters circled the site where foreign dignitaries were gathered.

The talks focused on the progress of Greece’s economic overhaul and the enduring problem of unemployment that plagues much of the euro zone. The agenda also included the continued efforts to form a more unified banking system in Europe, a possible package of financial assistance to Ukraine and the political context in France after the ruling Socialists’ big losses in local elections over the weekend.

As for Greece, Mr. Dijsselbloem said a seven-month review by the country’s international lenders — the troika consisting of the European Commission, the European Central Bank and the International Monetary Fund — “can now be closed” after the Greek Parliament’s approval of economic overhauls on Monday.

The provisions included contentious measures lifting barriers to competition and a new framework for the recapitalization of Greek banks. The troika’s review was the longest — and Greek officials said it was the toughest — since Athens signed its first loan agreement with the lenders in the spring of 2010.

Greek officials and representatives of the lenders said efforts to overhaul the economy had yielded the first indications of a return to growth in Greece after six of years of grinding recession that has hammered living standards and pushed unemployment to a record level of nearly 28 percent. Officials in Athens are eager to begin talks on lightening the huge debt burden, considering that Greece is on track to post a budget surplus this year before debt repayments. It forecasts that this primary surplus will come in at €2.4 billion for 2013.

Asia Markets live blog: More trade-deficit disorder for China?

Hong Kong markets seem to have lost their steam after China published disappointing trade data for March, sending the Hang Seng Index off its early gains. The index — which had gained 0.4% in the opening minutes — is now down 0.3%.

Mainland Chinese banks and other financial stocks retreated, with Agricultural Bank of China leading the sector’s retreat with a 2.9% drop. Similarly, China Merchants Bank has declined 2.6%, China Minsheng Banking Corp. is down 2.2%, Bank of Communications has pulled back 1.7%, and both ICBC and China Construction Bank are moving 1.6% lower.

Among the brokers and other financial-service providers, Guotai junan International is down 2.5%, China Galaxy Securities is off 1.6%, and China Everbright is weaker by 1.3%.

Likewise, several leading property developers are also suffering heavy losses, as China Resources Land slides 4.3%, Country Garden Holdings falls 4%, China Overseas Land & Investment skids 2.6%, and Poly Property Group gives up 2.3%.

But tech stocks appear to be keeping up their recent momentum, with Tencent Holdings advancing 1.9%, and online firm China Binary Sale Technology is rising 1.1%.

Over on the mainland exchanges, the Shanghai Composite Index is edging lower by 0.2%, dragged by property stocks.

Source: MarketWatch

New China Central Bank Chief Economist Pushes Liberalization Plan

        The Wall Street Journal reports, "the Chinese central bank's new chief economist is pushing a plan to liberalize the country's financial system within three years, according to economists briefed on the plan, as the country looks for reforms to sustain growth".

Ma Jun, until recently Deutsche Bank AG  's top China economist, presented a proposal for remaking China's monetary policy at a closed-door economic-policy session held by the People's Bank of China and the International Monetary Fund on March 27 in Beijing. Mr. Ma was still at Deutsche Bank then, but his talk was followed closely because he was expected shortly to join the PBOC as its first chief economist.

Mr. Ma said China should liberalize in steps, according to participants at the IMF-PBOC meeting. First it needs to establish a central bank-blessed interest rate that would set a benchmark for lenders. China's interbank rate—the rate that banks lend to one another—could serve that purpose.

During a first stage of reform, Mr. Ma said, according to participants, the PBOC should keep its intentions about the interbank market quiet and target a broader measure of money supply, known as M3. If the interbank lending system stabilized, China could shift fully to a monetary policy based on interest rates within three years, he said, according to those present.

In the end, the PBOC would set the interbank market rate, and banks would be free to charge what they like for deposits and loans.

The IMF has urged the PBOC to act carefully as it liberalizes interest rates and to put in place a bank deposit insurance system and improved regulation, among other measures. In other countries where banks have been freed from government fiat to set bank deposit rates according to competition, some have gone on lending sprees that have ended badly.

Chinese Exports Fall 6.6% in March

   The WSJ reports,"China's exports fell 6.6% in March from a year earlier, data from the General Administration of Customs showed Thursday.

This was an improvement from February's 18.1% decline but still well below the median forecast for 4.2% growth from 16 economists surveyed by Dow Jones.

Imports also fell 11.3% from a year earlier, compared with a 10.1% increase in February, missing the economists' median forecast of a 2.8% increase.

China posted a trade surplus of $7.71 billion in March after reporting a $22.99 billion deficit in February. The economists' median forecast was for a $1.75 billion surplus".

Fed dropped jobless target in secret meeting

Federal Reserve officials had a secret video conference call in early March to discuss overhauling its communication to the market and reached a general consensus that the 6.5% unemployment rate threshold for the first rate hike was outdated, the central bank said Wednesday. A summary of the video conference was included in the minutes of the Fed's March 18-19 meeting released by the Fed. On the conference call, the central bankers were clearly worried that changing the forward guidance would impact markets. They noted that, going into the video conference, the Fed and the markets were on the same page about the outlook for short-term interest rates. The minutes of the March 18-19 meeting also reveal that there was concern that the markets would read too much into the "dot plot" which showed an upward shift in the Fed's expectations for short-term rates. Officials also spelled out headwinds that would keep rates low even after the first rate hike. These headwinds included higher precautionary savings by consumers.

Source: Marketwatch

Chile: State copper producer expects funding to top last year's

State copper producer Codelco should receive more government funds this year than Chile allocated for the world's No. 1 red metal miner in 2013, the country's mining minister told Reuters on Tuesday.

The previous, conservative government handed Codelco $1 billion in 2013. That was followed by a second distribution of $1 billion, but Codelco said that tranche was essentially an accounting change that did not amount to comprehensive funding for the ambitious and costly overhaul of its tired mines.

Williams added that the new center-left government was serious about reaching solutions soon for financing the cash-strapped miner.

Copper was nationalized in 1971 under socialist Chilean president Salvador Allende. Codelco has since become a crucial motor of economic development in Chile, the world's No. 1 copper producer.

The company hands all its profit over to the state, which then decides on an annual basis how much to return to the miner. This erratic financing mechanism exposes Codelco to the whims of the government at a time when Chileans are clamoring for improved social spending. This year will be a crucial test of whether the government of Michelle Bachelet has the political capital and will to reform the system.

Codelco, which produces around 10 percent of the world's copper supply, plans to invest roughly $30 billion to counter dwindling ore grades in its massive Chilean deposits.

Source: Reuters

WSJ : Copper Titans Gather as Glut Overshadows Quakes in Chile

       The Wall Street Journal reports,"the world’s strongest earthquake in a year and hundreds of aftershocks rattled the copper-rich Atacama Desert last week, forcing almost a million people to seek refuge from tsunamis. The copper market barely reacted".

The metal is down 0.7 percent in Londonsince Anglo American Plc to Antofagasta Plc temporarily halted some operations after an 8.2-magnitude temblor struck on the evening of April 1. Investors’ indifference is explained by surging global output at a time of waning Chinese demand growth.

As tremors continue to shake northern mines, it will be the prospect of the biggest global glut since the so-called super-cycle began -- and how miners are reacting by shelving expansions and shoring up balance sheets -- that dominate discussion at the industry’s annual get-together in Santiago this week. Chile, the top producer, is opening three mines in a year, more than it has started in the past decade.

“Demand is not going to grow by the same margin, which is going to generate a significant surplus,” Alvaro Merino, head of research at Chilean mining society Sonami, said in an April 4 interview. “You are really going to see this increase in the second half of this year.”

New mines will help increase global production by 4.7 percent in 2014 and 7.3 percent next year, according to the Lisbon-based International Copper Study Group. That compares with an estimated 3.2 percent demand growth and 3.6 percent in 2015. 

CRU estimates a surplus this year of 140,000 tons, Vanessa Davidson, copper group manager at the London-based metals researcher, said in a March 24 interview. That’s almost four times bigger than previously estimated. The excess will widen to about 250,000 tons in 2015 before exceeding 400,000 tons a year later, Davidson said at the time.

Copper for delivery in three months declined 10 percent this year to $6,612.50 a ton on the London Metal Exchange. Prices reached the lowest level since 2010 last month amid concern about slumping demand in China and a release of metal held as finance collateral.

Copper’s price slump has led to companies shelving projects that might bring the shortages of the past decade back as early as 2017, according to Sonami.

About 40 percent of the $110 billion of projects under consideration in Chile are being revised or have been postponed, Sonami’s Merino said. Also, much of the investment needed is to replace declining output from aging mines. Mining companies spent $54 billion between 2004 and 2012 without raising output, according to Sonami.

Greece to Issue First Long-Term Bond Since Bailout

     The WSJ reports: ''Greek bonds are rallying fast while bankers seek investors for the country's first long-term debt since its international bailout four years ago.

The country will finalize a deal Thursday to sell at least €500 million ($689.9 million) of five-year bonds, according to one of the banks running the deal. People familiar with the matter said the sale could run to a total of €2.5 billion, and that yields will be around 5.25% to 5.5%. Greece has no outstanding five-year debt to use as a yardstick, but the country's outstanding 10-year bond yields sank by a quarter of a percentage point Wednesday to 5.85%''. 

THE GUARDIAN: Russia to meet EU and US for talks over Ukraine crisis

The Ukrainian authorities have said they will end the occupation of administrative buildings by pro-Russian separatists in the east of the country, either by negotiations or force, within 48 hours, as four-way talks between Russia, Ukraine, the US and EU were announced for next week in an attempt to defuse the tense situation.

"A resolution to this crisis will be found within the next 48 hours," said the interior minister, Arsen Avakov, in Kiev, referring to the eastern cities of Luhansk and Donetsk where protesters remained in control of government buildings.

"For those who want dialogue, we propose talks and a political solution. For the minority who want conflict they will get a forceful answer from the Ukrainian authorities," he said.

In Luhansk, the protesters did not appear in the mood to compromise, and on Wednesday were reinforcing the barricades around the security services building they have seized, and preparing petrol bombs.

In Donetsk, protesters remain in control of the local administration building, from where on Monday they proclaimed Donetsk an independent republic and said they would hold a referendum within a month on the region's status and whether it should appeal to join Russia.

In Kharkiv, protesters also seized the local administration building, but were removed by security forces, who arrested 70 people.

Kiev has claimed the protesters are directed by Russian security services, and on Tuesday, the US secretary of state, John Kerry, accused Moscow of stirring up unrest, possibly as a pretext for Crimea-style military intervention.

Many locals in eastern Ukraine have concerns about the new government in Kiev, but support for actually joining Russia, unlike in Crimea, is not widespead.

In Moscow, President Vladimir Putin is due to meet with his cabinet on Wednesday and discuss possible economic responses to Ukraine. The Russian gas monopoly, Gazprom, says Russia has not received any money for March gas deliveries and still has a $2.2bn (£1.3bn) debt outstanding from Ukraine. Kiev has said it will pay the debt but has protested at an 80% rise in gas prices announced last week.

Diplomats will hope that four-way talks next week could help to defuse the situation. 

Japan pension fund move hailed

Market watchers welcomed a decision by Japan's largest pension fund manager to revamp its conservative Japanese stock investing strategy.

While some hailed it as the biggest change in the history of the fund nearly ¥130 trillion ($1.26 trillion), others characterized it as a largely symbolic step toward the more significant step of increasing the fund's stock allocation.Japan's Government Pension Investment Fund said Friday that it picked 14 new active stock investment managers and added three more benchmarks to its buying strategy.
The new benchmarks for the fund include MSCI Japan, Russell Nomura Prime and the Tokyo Stock Exchange's new JPX-Nikkei 400. Previously the GPIF had only used Topix, an index of about 1,700 shares as a benchmark.

Source: WSJ

Japan, No downturn seen after consumption tax hike

Consumption has not shown a sharp downturn so far since the country's consumption tax was raised to 8 percent from 5 percent on Tuesday.

Department stores have expe-rienced a tumble in sales, mainly of high-end items, after a surge in last-minute demand the previous month. Their sales were down by 10 percent to 20 percent from a year earlier in the first six days since the tax increase.However, sales have been growing for some food items that are difficult to stockpile and at some restaurant chains, showing daily consumption remains solid despite the tax increase.
Sales at four major department store operators grew by 20 percent to 30 percent in March, reflecting the high popularity of jewelry and imported brand-name products, before a major drop early this month.
Bic Camera Inc. said that the consumer electronics retailer saw its sales tumble by about 40 percent in 1997, when the consumption tax was raised to 5 percent from 3 percent. "This time, however, the sales drop has fallen short of expectations," an official said.

Source: Japan News

Solar power business becoming money spinner

Eighteen months after the introduction of a system that obliges power companies to buy electricity generated from renewable energy sources at fixed prices, Japan's solar power generation market has been showing aspects of "solar bubbles."

While the cause is a large number of companies entering the business-seeking a windfall from a system that guarantees high sales prices-the ultimate cost of this problematic situation will be shouldered by ordinary people throughout Japan, via their electricity bills.

Introduced by the government in July 2012 to accelerate the adoption of renewable energy, the current system guarantees a set price to companies that use solar power, wind power and other renewable energy resources to generate electric power.

Under the system, existing power companies are obliged to purchase electricity generated from the renewable resources at fixed prices. The purchase prices are decided every year by the Economy, Trade and Industry Ministry.

Source: Japan News

IMF reform plan stalled on skepticism

The Spring gathering of the International Monetary Fund is approaching. China, Russia and other major developing nations are angry about a delay in reforms that give them more voting rights at the IMF. Now the countries are pushing forward with the reforms without waiting for the United States. Skeptism is growing about the new powers within international systems.

Britain is urging the US Congress to approve reforms at the International Monetary Fund that would give more power to emerging economies at the institution.

In a recent public address, British Finance Minister George Osborne said quote: "The failure of the U.S. Congress to ratify the agreed IMF reforms is bad for the institution and bad for the international community. I urge the administration and Congress to act to pass them now."

Most of the IMF’s 188 member nations have approved the reforms, which were originally hammered out in 2010. But opposition from the House and Senate Republicans have blocked efforts by the White House to pass the reform. Experts say it’s crucial for developing nations to have a seat at the table.

"The main rules of the game internationally on how countries are supposed to deal with the currencies, on reserves on some of the big, big questions on international finance are really negotiated out at the IMF. So for these countries, who had not had much of a voice in the international rules of the game, when they were substantially poorer and smaller than they are now. Now that they’ve grown so rapidly and their economies are so large, they want a seat at the table. They want to be able to participate in shaping the rules that they would partially have to live by," said Bruce Jones, senior fellow of Brookings Institution.

If the US Congress gives the reforms the green light, it would make China the IMF’s third-largest member. It would also revamp the IMF board, reducing the dominance of Western European nations. Some analysts say US lawmakers are concerned about relinquishing power to some emerging economies.

"First, Congress is traditionally fairly skeptical about international institutions and that’s been true since the founding of international systems. Second, there’s a lot of skepticism about China’s intentions on issues like currency reform and third, now, unfortunately there’s a lot of concern about Russia. And because this package was negotiated in a context where sort of all the emerging powers see their shares rise, there’s now a new preoccupation about seeing Russia’s shares rise, even though Russia’s shares will rise by a tiny fraction," said Bruce Jones, senior fellow of Brookings Institution.

Source: CCTV

Up to 600 Aussie businesses participate in China Australia Business Week

China is Australia´s top trading partner. This week, hundreds of businesses from down under are heading to China for the China Australia Business Week, eager to scan the horizon for investment opportunities and deals. The delegation is led by Prime Minister Tony Abbott as part of his broader North Asia visit and Minister for Trade and Investment Andrew Robb. 

The phone lines are hot.

One of Australia´s biggest ever trade missions to China is on its way, aiming at drumming up business and investment.

They come for the China Australia Business Week, a push to strengthen Australia´s commercial ties with its biggest trading partner.

At the China Australia Chamber of Commerce, the goal is precisely to attract more businesses.

"It´s a show of force and an opportunity for many Australian CEOs to come here and help the government push for many things that have taken a long time to get through. The two big ones have always been mining and education. But there is a big portfolio of smaller industries, the industry I represent is healthcare and other industries like agribusiness and finance. It is important that everyone gets a show." Brendan Mason, Chairman of Austcham Beijing said.

Events will be held in Beijing, Shanghai, Chengdu and Guangzhou.

"It´s the first visit by Abbott, it´s a show of force, but I think we won´t really start to see a deals flow until in 2 or 3 years time." Tom Luckock, Partner of Norton Rose Fulbright said.

Bilateral trade has ballooned in recent years. Australian exports to China totaled a record 95 billion Australian dollars in 2013, up sharply from 73 billion in 2012.

In November, China and Australia agreed to accelerate their talks over a free trade agreement.

The Australian government is confident to reach conclusion soon.

Abbott set himself a one year deadline to strike a free trade deal with China when he was elected last September. But the deal still looks remote, after nine years of negotiations.

"Whether it will be signed in one year is anyone´s guess. But I actually don´t think it is so important whether it is signed or whether it is not signed, I think what is more important is the symbolism. The fact that there is a big focus on the Australia and China link, and because of that focus I think that we will see more Chinese investments in a broader range of sectors." Tom Luckock said.

The next step now is to go beyond just the import of Chinese consumables and the export of Australian natural resources such as iron ore.

Source: CCTV

Boao Forum for Asia Annual Conference

Its been well over a decade since the Boao Forum raised its curtains once more on Tuesday let's have a quick look back on how this high level dialogue was started.
Boao forum is a non-profit organization that each year hosts leaders from government, business, and academia around the world to discuss current pressing issues.

The forum was proposed in 1998 by Fidel Ramos, former president of the Philippines, Bob Hawke, the former Australian prime minister, and Morihiro Hosokawa, the former Japanese prime minister. The forum was formally founded in 2001.

"Those three leaders felt Asia needed a platform, a forum to make its own voice heard. So they asked the then president of China, Jiang zemin, to see if the forum could be placed somewhere in China. Jiang happily accepted and they decided to place the forum in Boao." Zhou Wenzhong, Secretary General, Boao Forum for Asia said.

Chinese president Xi Jinping attended the forum last year, and this year, Premier Li Keqiang will address the meeting.

"Participants will exchange opinions and discuss on global issues. They agree on disagreements. Because policy makers also take part, some of the opinions could potentially be transformed into policies." Zhou Wenzhong said.

The Boao forum has gone on annually since its first meeting in 2002. This year’s hot topics will include sustainable development issues in Asia, such as the new economic driver of the region.

IMF Research: More than Half of Decline in Interest Rates can be attributed to substantial increase in saving in EM

The substantial increase in saving in emerging market economies, especially China, in the middle of the first decade of the 21st century was responsible for more than half of the decline in real rates . This was only partly offset by the reduction in saving in advanced economies. High-income growth in emerging market economies during this period seems to have been the most important factor driving the increase in savings.

More than half of the reduction in real rates in the first decade of the 21st century can be attributed to an increase in the relative demand for bonds. This shift reflected an increase in the riskiness of equity combined with higher demand for safe assets among emerging market economies to increase official foreign reserves accumulation. In the aftermath of the global crisis, both reasons have continued to contribute to the decline in real rates, albeit more moderately now.

China's pollution permit market must be revamped

New government plans to strengthen China's "pollution permit" market have been applauded as the meaningfulness of existing trials of the system has been called into question.

Since 2007, China has set up more than 20 local pilot trading platforms for the permits. Not to be confused with carbon trading, which targets greenhouse gases led by carbon dioxide, this scheme allow industrial firms to buy and sell rights to emit pollutants like sulphur dioxide and nitrogen oxide, major causes of smog and acid rain.

Under the system, a region first sets a maximum amount of key pollutants the area can absorb during a certain period, before translating the amount to pollution rights and making them available to companies.

In the "primary" market, companies are required to pay for the rights through auction or government-directed quotas. Firms with pollution rights can then trade the permits in the "secondary" market.

However, according to insiders, few of the pilot markets are working properly due to lax implementation, and the absence of a fair pricing mechanism and legally binding regulations forcing firms to use the permits.

SUSPECTED PUBLICITY STUNT

Take the markets in Beijing, Shanghai and Tianjin for example. All three cities set up pollution permit trading platforms in 2008, but the former two have not seen a single trade between them.

Tianjing Climate Exchange (TCX) did function once, on Dec. 23, 2008, when Tianjin Hongpeng Logistics won permits to emit 50 tons of sulphur dioxide by bidding at a price of 3,100 yuan per ton. But there have been no deals since then.

Further detracting from the credibility of the pollution permit trials, mystery surrounds the lone Dec. 23, 2008 deal. According to media reports at the time, there was suspicion that Hongpeng was a front company, fabricated to win an auction organized as a publicity stunt.

Researching this article, Xinhua dialed the phone number found on the website of Hongpeng and asked to learn about the bidding in 2008.

"The company has already been deregistered. I know what happened at that time, but there is nothing I can tell you. I don't want to make trouble," a middle-aged man said before hanging up the phone and never answering again.

TCX general manager Wang Jing reacted strongly when asked about the incident, saying, "There is no need to ask this anymore. It was five years ago."

Tian Yu took part in the bidding on behalf of his company Tianjin Tasly Group, a traditional Chinese medicine maker. He told Xinhua that all participants were persuaded or lobbied by their industrial park base, TCX or the government to help make the publicity stunt work.

Bao Jingling, engineer in chief of the Tianjin Environmental Protection Bureau, said that, for many companies, it was through government "coordination" rather than the trading platforms that they got pollution rights.

Labelling pollution permit bidding "forced marriage" directed by the authorities, the insiders said the Hongpeng case in Tianjin is not the only one of its kind.

NO REASON TO BID

Experts attribute the dysfunction of the pollution permit market to the absence of a mandatory system forcing all polluting firms to use pollution permits.

Wang said, "Since there is no compulsory regulation from the authorities requiring all companies to trade pollution permits, not many firms are willing to buy them.

"If most firms can freely emit pollutants without permits, then why would anyone buy them?" asked Tian.

Both Wang and Tian point to the large number of cases in which companies discharge much more key pollutants than their quotas allow but get no punishment.

Wang Jinnan, vice head of the Chinese Academy for Environmental Planning (CAEP) under the Ministry of Environmental Protection, blamed the lack of a fair distribution and pricing system.

"The government's goal is to control the overall amount of pollutants. The question of which company gets how many permits doesn't seem to be so important," he said.

The government itself decides the prices of the permits, "which do not necessarily have a very convincing basis." Meanwhile, the value of the permits, which is in big part determined by their effective period, varies from regions to region, making cross-regional trading impossible, according to Wang Jinnan.

Even in the same region, the value can change as the government tightens or loosens environmental protection measures, which could mean permits bought in different years have different values.

This would create a "wait and see" attitude among potential buyers and sellers of the permits, Wang Jinnan said.

SOLUTIONS

There is consensus that the authorities should, above all, draw up and implement a nationwide regulation mandating firms to buy permits before emitting pollutants.

"It must be confirmed by the central government that pollution permits are valuable rights that companies must pay to obtain," Wang of the CAEP said.

Wang Jing called for legally binding regulation to force all companies to get their permits through auction and make emission without a permit illegal.

The value and effective period of the permits should also be set and verified nationwide.

Wang Jinnan believes there should be a uniform effective period for the permits of, say, five years, and their issuance should not be tightened or loosened as government policies are adjusted.

For companies that have permits to spare as a result of the application of new technologies, it must be ensured that the extra permits can be sold at a price, said Bao of the Tianjin Environmental Protection Bureau.

Judging by its recent announcements, it seems that the central government has noticed the problems.

On March 24, the finance ministry announced a plan to establish a nationwide system for use and trade of pollution permits within three years.

The ministries of finance and environmental protection also said they had submitted draft guidelines for a market to the State Council, something almost all the insiders and experts Xinhua interviewed deemed essential.

The market would cap emissions of key pollutants from major facilities and force those that exceed their caps to buy permits, thereby providing economic incentives for polluters to invest in cleaner technologies.

Though they called permit trading an important arrangement for the market to play a role in cutting emissions, the ministries did not provide details on how the market would work.

Source: Xinhua

XInhua In-Depth: China's economic growth to rebound after adjustment period

"The Chinese economy was going through a three-year period of adjustment, but growth could return to about 8 percent afterwards, a Chinese economist told a forum held here Monday".

"From now on to the coming two years, the Chinese economy is actually going through a period of an important adjustment, including reforms and dealing with the consequences of the stimulus package of the financial crisis," David Daokui Li, director of the Center for China in the World Economy at Tsinghua University's School of Economics and Management, said.

"And after that, ... the Chinese economy most likely will be able to go back to a relatively faster rate of growth," Li said at the "Big Changes in China: Outlook for the Next Decade" forum, co-organized by Tsinghua University and Credit Lyonnais Securities Asia (CLSA).

"The overall picture of the coming 10 years would be initially low growth like low 7 (percent) from now on to 2016... Then the growth will very much likely pick up to something around 8 percent," said Li, who is also the dean of the University's Schwarzman Scholars Program.

Li said the Chinese economy faced a period of contractionary reforms, including anti-corruption and financial reforms.

These reforms were "necessary," Li said.

He said anti-corruption reform was important for long-term growth and for re-establishing a new model of doing business in China.

From a short-term perspective, Li said the Chinese economy would run through a downward trend at first this year and then pick up by the third quarter, resembling the "mini recovery pattern" seen last year.

Former World Bank president James D. Wolfensohn said a Chinese would be nominated as president of international institutions like the World Bank and International Monetary Fund at some point in the future, due to China's economic strength.

Tsinghua University President Chen Jining told the forum the extremely ambitious and comprehensive reforms China had announced recently would have a major impact on all areas of Chinese people's life.

"The world is watching these reforms with great curiosity," Chen said. "A major focus of the reform is on economic issues, as China has become a major driver of the world's economic growth over the past decade."

China Exclusive: German companies upbeat on China's future growth

 China's growth slowdown is normal as it is going through an economic transformation period, with the transition offering new opportunities for foreign firms, an official from the German Chamber of Commerce has told Xinhua.

"We expect general growth to slow which is a natural economic development when the reference base is increasing. The switch from a rapid to a more sustainable economic progress in China is the right course," said Alexandra Voss, executive chairwoman of the German Chamber of Commerce, North China, on Monday evening during an interview.

China is heading in the right direction by rebalancing its economy and slowly introducing consumption as one of the main economic drivers in addition to exports and large-scale investments in infrastructure development like highways and housing, she added.

There are about 4,500 German companies operating in China. Of these, 60 percent are members of the German chamber. In 2013, 400,000 people in China were employed by German companies.

According to the organization's annual Business Confidence Survey, members of the German chamber are very positive about their business forecast in the coming years. In 2012, 22.4 percent of respondents perceived their business outlook to be improving; in 2013 this rose to 40.5 percent, showing more confidence in the development of the Chinese market.

Chinese President Xi Jinping said during his visit to Germany in late March that China's internal impetus is driving the country's sustainable and stable growth, thus providing a huge market and opportunities for its cooperation partners, including Germany.

China needs "German quality", while Germany's growth requires the Chinese market and "China speed", the president said.

During his stay in Germany, Deutsche Bundesbank and People's Bank of China announced the establishment of a clearing center for transactions with RMB in Frankfurt am Main, the business and financial center of Germany.

"This important step is highly beneficial for many German SMEs doing business with Chinese counterparts by easing financial issues between them and lowering the transition costs of deals," Voss said.

She predicted that certain strategic industries will grow and offer opportunities during China's market-oriented reform, such as sustainable urbanization, green building creation and energy saving consultation.

The strong focus of the Chinese government on environment and energy and its decision to put more emphasis on these areas will bring great business opportunities for German companies, she said.

But Voss pointed out that German companies still see themselves confronted with a number of challenges in China such as Intellectual Property Rights protection. They also expect easier and wider market entry for foreign companies.

"We reckon that a successful execution of the reforms will ignite competition, provide more opportunities, and minimize challenges for foreign companies. Then it is only a matter of time before natural market forces facilitate more sustainable growth", she said.

Source: Xinhua

China Voice: China economy needs no stimulus. High Growth Remain No Panic.

There is no need to panic, not least because China's growth rates remain high compared with the recent sluggish standards of Western nations.

"China's economy is going to steer clear of the familiar path resorting to a stimulus whenever there is a sign of a slowdown.

A "mini stimulus" theory has been widely circulated after the State Council announced a set of policies on Wednesday that included extending tax breaks for small businesses and support measures for poor urban districts.

Anticipation has been building recently for some kind of action following a string of lukewarm economic indicators, including cargo volume and electricity consumption slowing in the first two months of 2014.

It was inevitable that the world's No. 2 economy would move forward under pressure, especially for the early part of 2014.

However, any talk about an incoming stimulus package is misleading and those anticipating the kind of stimulus China unleashed following the 2008 global financial crisis are likely to be disappointed.

The sweeping measures did help China's economy recover rapidly but also led to overcapacity, skyrocketing house prices and a credit boom, all of which the authorities are now trying to rein in.

China's economy needs a little stimulation but not a fully fledged stimulus. The tax breaks and acceleration of railway investment and social house rebuilding will certainly inject new blood into the faltering economy, but they do not forebode any massive spending and borrowing.

China has quit the habit of resorting to the so-called "masterpiece" stimulus, which could be as addictive and damaging for a national economy as doping is for the human body.

The new measures taken by the Cabinet are nothing new and in fact they are follow-up policies from the government work report in March and the reform plan unveiled in November by the top leaders.

There is no need to panic, not least because China's growth rates remain high compared with the recent sluggish standards of Western nations.

It is more appropriate to interpret the measures as "looking into the future while taking the current economic situation into account," rather than a "new round of mini economic stimulus."

The smart ones have got it. There is no sign of a monetary and fiscal policy shift. There is no hint of loosening the housing market either.

What China's economy needs most is steady and deep reforms, which the decision-makers are determined to push even at the price of an economic slowdown, because they believe only through deep and comprehensive reforms can the Chinese economy embark on a new stable and healthy path".

Source: Xinhua

G20 to focus on boosting global growth, not Crimea - official

Global financial leaders will thrash out details of individual country pledges to boost growth and overhaul their economies at this week's meetings in Washington, a senior Australian official said on Tuesday.

"To build momentum on those growth strategies is really a key goal for this meeting," he said. "A big focus of this meeting is going to be building on that growth ambition, discussing the sorts of measures that are needed to meet the Sydney growth goal."

Australia chairs the bloc of advanced and developing economies this year and has asked for firm plans to address gaps in each country's policy settings in the second half of 2014.

According to a document prepared for the G20 by European Union finance ministers, reform drafts so far have fallen short and more ambitious work is needed in areas including investment, employment and competition.

Sterland said there would be a discussion of the "full range" of geopolitical risks, but noted that Ukraine had already been an issue at the last G20 just six weeks earlier, and there was no plan for joint action against Russia.

"That sort of theme would not be on the agenda for this meeting," Sterland said.

Australia's Foreign Minister Julie Bishop has said it depends on G20 member countries whether Russia is invited to the G20 leaders' summit this year.

The G20's February communiqué said that the timing of monetary policy withdrawal should be conditional on the outlook for price stability as well as growth - sounding a note of caution given the euro zone's extremely low inflation.

"Those comments in Sydney seem to remain appropriate. We are taking an approach to keep the communiqués relatively tight," Sterland said.

The ECB has so far resisted calls from the IMF to ease monetary policy further although it said last week it was ready to start asset purchases, also known as quantitative easing, if inflation proved persistently low.

A German government official said Germany planned to tell the IMF and G20 partners it sees no deflation tendencies in Europe, noting instead that low inflation came from lower energy prices and moderate wage hikes.

Source: Reuters

U.S. High Flying Tech Stocks Correction

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Oil Share Sales Surge as Keystone Worry Fades

"Oil and natural gas companies raised $2.73 billion in equity in the first three months of the year, more than six times the same period of 2013, according to data compiled by Bloomberg. The financings were all secondary offerings and represent the most since the $3.37 billion to start 2011.

The outlook for energy brightened after Canadian gas prices rose to a 14-year high in February, during the coldest U.S. temperatures for that month in four years. U.S. President Barack Obama’s deliberations on whether to approve the $5.4 billion Keystone XL pipeline also are becoming less pressing as trains carry more oil, lifting heavy crude prices. A weaker Canadian dollar also promises to translate into fatter profits.

“There’s a general sense in the market that Canada’s not hostage to Keystone XL anymore,” said Mason Granger, a portfolio manager at Sentry Investments Inc. in Toronto, referring to the pipeline that would link oil-sands output from Alberta with U.S. Gulf Coast refineries. “We’re having some pretty good performance out of the stocks so far this year.”

Rising rail shipments of crude are helping Canadian producers skirt transportation bottlenecks amid delays for new pipelines, including TransCanada Corp.’s Keystone XL, and leading to higher prices of the nation’s heavy crude relative to the U.S. benchmark.

TransCanada Chief Executive Officer Russ Girling told analysts in February that by any criteria being used, “Keystone will be determined to be in the national interest of the United States,” according to a transcript of the remarks. TransCanada cannot predict when a decision will be made on Keystone XL, Davis Sheremata, a spokesman, said in an e-mail yesterday.

With oil and gas stocks outperforming U.S. peers and optimism around rail transport and alternative pipeline proposals, such as TransCanada’s Energy East line to Canada’s Atlantic Coast, investors may boost flows into energy funds, Sentry’s Granger said".

Source: Bloomberg

Zinc Rises to One-Month High on IMF Outlook for Economy

Zinc prices advanced to a four-week high on speculation that global economic gains forecast by theInternational Monetary Fund will spur demand for the metal amid declining supplies.

Stronger U.S. growth this year and next will help the world economy withstand weaker recoveries inemerging markets including Brazil and Russia, the IMF said today in a report. Refined supplies will fall short of consumption by 117,000 metric tons this year, the International Lead & Zinc Study Group said on April 3.

“All these reports could do is remind people that the fundamentals are decent and demand isn’t bad,”Bart Melek, the head of commodity strategy at TD Securities in Toronto, said in a telephone interview. “Some people are reversing their short positions,” or bets on price declines, he said.

Zinc for delivery in three months gained 1.2 percent to settle at $2,027 a ton at 5:50 p.m. on the London Metal Exchange. Earlier, the price reached $2,029, the highest since March 11.

Inventories tracked by the LME have dropped 28 percent in the past 12 months.

On the Comex in New York, copper futures for May delivery rose 0.4 percent to $3.051 a pound, the highest settlement since March 7. Trading was 35 percent higher than the 100-day average, according to data compiled by Bloomberg.

Source: Bloomberg