Top Chinese banks are involved in Ponzi financing of investment deals, offering interest rates over 7% to depositors, to finance real estate projects gone bust and other projects whose assets are not even disclosed.
Banks label these schemes "Wealth Management Products" (WMPs) but any individuls foolish enough to invest in them are going to lose money, perhaps all of it.
NEW DELHI: Motherson Sumi Systems (MSSL), India's largest auto parts maker, is doing a due diligence on three auto component makers in Europe for possible acquisitions, its chairman Vivek Chand Sehgal said. Move, according to Shegal, is aimed at achieving a threefold increase in revenues in five years. The company has set a revenue target of $18 billion by 2020. It's revenue currentlyis $5.5 billion .
NEW YORK (Reuters) - AT&T Inc will buy Leap Wireless International Inc for $1.19 billion, paying almost double the current value of the prepaid mobile service provider as major U.S. carriers scramble to acquire valuable wireless spectrum.
SHANGHAI: With China's impressive economic growth catapulting their banks into the top global league, India's top private sector lender ICICI Bank's chief Chanda Kochhar has said Indian banks also must aspire to scale up their activities significantly. ICICI Bank, which has opened its first branch in China, would also keep reviewing the India-linked business opportunities in the international markets and expand its presence as new avenues emerge, Kochhar said.
ATHENS (Reuters) - Greece would need an additional 13-15 billion euros to finance a two-year extension to meet its budget targets but is confident of bridging that gap without burdening European taxpayers, Finance Minister Yannis Stournaras told Reuters on Tuesday. He also confirmed that the country's fiscal gap to hit its 2013 and 2014 targets remained at 13.5 billion euros. Athens has been discussing fiscal measures worth that amount with its European Union and International Monetary Fund lenders. ...
EMU officials in Brussels want to see specific details on how Spain will reduce its budget deficit to 3% of GDP in 2013. Given the 2011 deficit was 8.5%, EMU officials do not believe Spain, nor should anyone else. The targets will not be met.
Moreover, some in Brussels accuse Spain of artificially inflating the 2011 deficit so as to better meet its interim target.
Those are contradictory accusations actually. If the deficit is artificially inflated, it should be easier to make the targets.
The EU has accused Spain of overstating its 2011 budget deficit thus making it easier to make progress in 2012. Furthermore the EU is upset about delays in austerity measures ahead of regional elections next month.
The Prudent Investor submits:
Is China getting ready to tighten credit? In a most pragmatic move 3 rather hawkish economists have been added to the monetary policy committee of the People's Bank of China (PBOC), according to a report on chinadaily on Wednesday.