Global uncertainties, including populism and economic slowdown, have cast a shadow over the World Economic Forum (WEF)'s 2019 annual meeting, which officially opened in Davos, Switzerland, on Monday.

As leaders gathered for the annual meeting,&nbsp;WION spoke to the former governor of Reserve Bank of India, Raghuram Rajan&nbsp;who is also attending the event. Speaking to&nbsp;WION's correspondent, Sumit Chaturvedi, Rajan&nbsp;said that there is underlying strength in&nbsp;the global economy.

Commenting on the recent forecast by International Monetary Fund(IMF) on global economic growth, Rajan said he agrees with IMF and said that there are clouds hanging over the world economy as China is underperforming in comparison to its&nbsp;past record&nbsp;and the US is also suffering due to the government shutdown.

"Well, I have no reason to differ from the IMF, there is broadly strength in the underlying economy, there are some clouds, certainly, China is underperforming relative&nbsp;to the past...in the US there are issues like a government shutdown, so we have to wait and see," Rajan&nbsp;said.

Commenting on the World Economic Forum, Rajan said, "It's just started so not much has happened so far..will see what people say, what people think..it's a process of discussion and debate."

Experts have said that the absence of western leaders at the Davos meeting has added to the challenges brought by populism to the globalisation process.

Meanwhile, fears of a global slowdown have jolted markets and forced the US Federal Reserve Bank to signal a pause in its interest rate hike cycle, as investors fret about increasing weak signs in China and the fallout from Sino-US trade frictions.

Data released on Monday showed China's economy cooled in the fourth quarter on faltering domestic demand and bruising US&nbsp;tariffs, dragging 2018 growth to the lowest in nearly three decades.

Topics such as global economic landscape, climate change, artificial intelligence and digitalisation are also on top of the agenda at the WEF.

Global uncertainties, including populism and economic slowdown, have cast a shadow over the World Economic Forum (WEF)'s 2019 annual meeting, which officially opened in Davos, Switzerland, on Monday.

Global uncertainties, including populism and economic slowdown, have cast a shadow over the World Economic Forum (WEF)'s 2019 annual meeting, which officially opened in Davos, Switzerland, on Monday. As leaders gathered for the annual meeting, WION spoke to the former governor of Reserve Bank of India, Raghuram Rajan who is also attending the event. Speaking to WION's correspondent, Sumit Chaturvedi, Rajan said that there is underlying strength in the global economy. Commenting on the recent forecast by International Monetary Fund(IMF) on global economic growth, Rajan said he agrees with IMF and said that there are clouds hanging over the world economy as China is underperforming in comparison to its past record and the US is also suffering due to the government shutdown. "Well, I have no reason to differ from the IMF, there is broadly strength in the underlying economy, there are some clouds, certainly, China is underperforming relative to the past...in the US there are issues like a government shutdown, so we have to wait and see," Rajan said. Commenting on the World Economic Forum, Rajan said, "It's just started so not much has happened so far..will see what people say, what people think..it's a process of discussion and debate." Experts have said that the absence of western leaders at the Davos meeting has added to the challenges brought by populism to the globalisation process. Meanwhile, fears of a global slowdown have jolted markets and forced the US Federal Reserve Bank to signal a pause in its interest rate hike cycle, as investors fret about increasing weak signs in China and the fallout from Sino-US trade frictions. Data released on Monday showed China's economy cooled in the fourth quarter on faltering domestic demand and bruising US tariffs, dragging 2018 growth to the lowest in nearly three decades. Topics such as global economic landscape, climate change, artificial intelligence and digitalisation are also on top of the agenda at the WEF.

Watch: China underperforming relative to past, says Ex RBI chief Raghuram Rajan in Davos

China underperforming relative to past: Ex RBI chief Raghuram Rajan

Britain's economy cooled in the three months to November, expanding at its weakest pace in six months as factories suffered from tough global trade conditions ahead of Brexit, official data showed on Friday.

Gross domestic product in the three months to November was 0.3 per cent higher than in the previous three-month period, down from growth of 0.4 per cent in the three months to October and matching the consensus of a Reuters poll of economists.

Manufacturers suffered their longest period of monthly falls in output since the financial crisis, hurt by weaker overseas demand, the Office for National Statistics said.

Worries about the global economy have been mounting due to concerns about a trade war between the United States and China. Figures from Germany and France earlier this week similarly showed falling industrial output.

Britain's economic growth in the three months to November was driven mostly by the dominant services sector, as well as the construction industry.

The figures fit with business and consumer surveys that suggest the economy is slowing sharply after robust growth of 0.6 percent in the third quarter of the year, reflecting growing uncertainty ahead of Britain's planned departure from the European Union, as well as global jitters.

Britain is due to leave the European Union on March 29 and whether businesses will still be able to trade without disruption to cross-border supply chains remains unclear.

The future of the deal which Prime Minister Theresa May has agreed in principle with the EU hangs in the balance ahead of a parliamentary vote which will take place on Tuesday.

May is widely expected to lose and this would leave open the prospect of Britain leaving the EU without any transitional arrangements to smooth the economic shock.

Calls for a second referendum - which May has rejected - are growing.

Friday's figures showed that compared with a year earlier, the economy stood 1.4 per cent larger. In November alone, it expanded 0.2 per cent, compared with forecasts for a rise of 0.1 per cent.

The data are broadly in line with the Bank of England's view that the economy is likely to have grown around 0.2 per cent over the fourth quarter of 2018.

Britain's economy slowed after the June 2016 Brexit vote, its growth rate slipping from top spot among the Group of Seven group of rich nations to mid-table or lower.

Consumers in particular were squeezed by the jump in inflation which followed the pound's tumble after the referendum, especially as wages have failed to keep up.

That said, an unusually warm summer in mid-2018 encouraged many to splash out on drinks and pub and restaurant visits.

But retail sales data suggests consumers reined in spending over Christmas.

Earlier this week closely watched purchasing managers' surveys pointed to fourth-quarter growth of around 0.1 per cent in Britain, according to data firm IHS Markit which compiles the surveys.

Friday's data showed that Britain's services sector grew by 0.3 percent over the three months to November, while industrial output dropped by 0.8 per cent, the biggest decline since May 2017.

Looking at November alone, industrial output dropped 1.5 per cent on the year - the biggest fall since August 2013.

Separate figures showed Britain's goods trade deficit widened unexpectedly in November to 12.0 billion pounds from 11.9 billion pounds, worsened by the highest oil imports since September 2014.

Britain's economy cooled in the three months to November, expanding at its weakest pace in six months as factories suffered from tough global trade conditions ahead of Brexit, official data showed on Friday.

Britain's economy cooled in the three months to November, expanding at its weakest pace in six months as factories suffered from tough global trade conditions ahead of Brexit, official data showed on Friday. Gross domestic product in the three months to November was 0.3 per cent higher than in the previous three-month period, down from growth of 0.4 per cent in the three months to October and matching the consensus of a Reuters poll of economists. Manufacturers suffered their longest period of monthly falls in output since the financial crisis, hurt by weaker overseas demand, the Office for National Statistics said. Worries about the global economy have been mounting due to concerns about a trade war between the United States and China. Figures from Germany and France earlier this week similarly showed falling industrial output. Britain's economic growth in the three months to November was driven mostly by the dominant services sector, as well as the construction industry. The figures fit with business and consumer surveys that suggest the economy is slowing sharply after robust growth of 0.6 percent in the third quarter of the year, reflecting growing uncertainty ahead of Britain's planned departure from the European Union, as well as global jitters. Britain is due to leave the European Union on March 29 and whether businesses will still be able to trade without disruption to cross-border supply chains remains unclear. The future of the deal which Prime Minister Theresa May has agreed in principle with the EU hangs in the balance ahead of a parliamentary vote which will take place on Tuesday. May is widely expected to lose and this would leave open the prospect of Britain leaving the EU without any transitional arrangements to smooth the economic shock. Calls for a second referendum - which May has rejected - are growing. Friday's figures showed that compared with a year earlier, the economy stood 1.4 per cent larger. In November alone, it expanded 0.2 per cent, compared with forecasts for a rise of 0.1 per cent. The data are broadly in line with the Bank of England's view that the economy is likely to have grown around 0.2 per cent over the fourth quarter of 2018. Britain's economy slowed after the June 2016 Brexit vote, its growth rate slipping from top spot among the Group of Seven group of rich nations to mid-table or lower. Consumers in particular were squeezed by the jump in inflation which followed the pound's tumble after the referendum, especially as wages have failed to keep up. That said, an unusually warm summer in mid-2018 encouraged many to splash out on drinks and pub and restaurant visits. But retail sales data suggests consumers reined in spending over Christmas. Earlier this week closely watched purchasing managers' surveys pointed to fourth-quarter growth of around 0.1 per cent in Britain, according to data firm IHS Markit which compiles the surveys. Friday's data showed that Britain's services sector grew by 0.3 percent over the three months to November, while industrial output dropped by 0.8 per cent, the biggest decline since May 2017. Looking at November alone, industrial output dropped 1.5 per cent on the year - the biggest fall since August 2013. Separate figures showed Britain's goods trade deficit widened unexpectedly in November to 12.0 billion pounds from 11.9 billion pounds, worsened by the highest oil imports since September 2014.

UK economic growth hits six-month low, manufacturing slides

Amid threats of imminent tariffs on metals and auto imports, escalating trade tensions between Europe and the United States were casting a shadow over a meeting of finance ministers from the world's top economies.

Long a bastion of multilateralism, the Group of Seven ministerial in a Canadian mountain resort will serve as the latest battleground for the discord now at the heart of the global economy.

As the US engages in a multi-front trade battle, with allies and adversaries alike, US Commerce Secretary Wilbur Ross&nbsp;on Wednesday&nbsp;rejected calls to extend exemptions on punishing import tariffs on steel and aluminum and warned that duties for massive US imports of automobiles were on the horizon.

This means the metals tariffs would take effect&nbsp;on Friday, the second&nbsp;day of the G7 meeting as frustration mounts in Europe, the single-largest source of US steel imports.

The Wall Street Journal reported&nbsp;on Wednesday&nbsp;that Washington would allow the EU exemption to expire, after weeks of talks failed to yield a compromise, such as a quota arrangement.

The harsh duties imposed in March to combat global overcapacity of the metals and boost domestic production, were only one part of a dizzying pace of developments, coinciding with a political crisis in Italy, which this week has roiled markets fearful for the future of the euro and bringing turmoil to the European Union, the G7's largest economic bloc.

US Treasury Secretary Steven Mnuchin is due to hold meetings with his European counterparts to discuss President Donald Trump's confrontational trade agenda, officials said.

But Jacob Kirkegaard, senior fellow at the Peterson Institute for International Economics, told AFP that the agenda Canada, the current G7 chair, set for the meeting -- which included uncontroversial themes such as inclusive development and innovation in finance -- would be swept aside amid raw relations between America and its traditional allies.

"Hopefully they can agree to keep talking about these issues, although that is unlikely," he said, adding that Trump's recent actions proved to US allies that Washington would not de-escalate the dispute.

"I think the only thing you can hope for is no further harm."

In recent weeks, Trump has repeatedly switched course on key foreign policy and trade issues, first imposing then easing sanctions on Chinese telecoms equipment firm ZTE, and declaring a "hold" on a looming trade war with Beijing but then announcing he would press ahead with $50 billion in tariffs on China's tech sector.

Last week, the administration also launched a national security-based investigation that could result in stinging tariffs on the hundreds of billions of autos the US imports annually, just as it has for the smaller aluminum and steel industries.

And Ross also vetoed a traditional joint statement at an annual economic meeting in Paris this week which denounced protectionism, further angering US allies.

Relations among G7 nations represent particularly high stakes as they account for more than 60 percent of global GDP.

And the sectors where Trump has chosen to wage his battles are key to trade in the economic bloc.

More than 60 percent of US auto imports -- an industry that closely binds US and Canadian manufacturing -- come from G7 countries, as well as more than 50 percent of aluminum imports and nearly 36 percent of steel.

Stephanie Segal, deputy director of the Simon Chair in political economy at the Center for Strategic and International Studies, said Washington's many about-faces meant consensus in the near-term was an increasingly dim prospect.

"It doesn't feel particularly constructive to me and I have to believe that the end game is not to create market instability, which is precisely what something like this does," she told AFP.

The Italian crisis, she said, demonstrated that there already were pressing matters facing the G7 even without the man-made ones now dominating the trans-Atlantic conversation.

"It's an opportunity to focus the mind on the fact that there are plenty of real crises out there, that creating a crises with a trade war on-off and antagonizing allies is probably not where we should be spending our energy."

Long a bastion of multilateralism, the Group of Seven ministerial in a Canadian mountain resort will serve as the latest battleground for the discord now at the heart of the global economy

Amid threats of imminent tariffs on metals and auto imports, escalating trade tensions between Europe and the United States were casting a shadow over a meeting of finance ministers from the world's top economies. Long a bastion of multilateralism, the Group of Seven ministerial in a Canadian mountain resort will serve as the latest battleground for the discord now at the heart of the global economy. As the US engages in a multi-front trade battle, with allies and adversaries alike, US Commerce Secretary Wilbur Ross on Wednesday rejected calls to extend exemptions on punishing import tariffs on steel and aluminum and warned that duties for massive US imports of automobiles were on the horizon. This means the metals tariffs would take effect on Friday, the second day of the G7 meeting as frustration mounts in Europe, the single-largest source of US steel imports. The Wall Street Journal reported on Wednesday that Washington would allow the EU exemption to expire, after weeks of talks failed to yield a compromise, such as a quota arrangement. The harsh duties imposed in March to combat global overcapacity of the metals and boost domestic production, were only one part of a dizzying pace of developments, coinciding with a political crisis in Italy, which this week has roiled markets fearful for the future of the euro and bringing turmoil to the European Union, the G7's largest economic bloc. US Treasury Secretary Steven Mnuchin is due to hold meetings with his European counterparts to discuss President Donald Trump's confrontational trade agenda, officials said. But Jacob Kirkegaard, senior fellow at the Peterson Institute for International Economics, told AFP that the agenda Canada, the current G7 chair, set for the meeting -- which included uncontroversial themes such as inclusive development and innovation in finance -- would be swept aside amid raw relations between America and its traditional allies. "Hopefully they can agree to keep talking about these issues, although that is unlikely," he said, adding that Trump's recent actions proved to US allies that Washington would not de-escalate the dispute. "I think the only thing you can hope for is no further harm." In recent weeks, Trump has repeatedly switched course on key foreign policy and trade issues, first imposing then easing sanctions on Chinese telecoms equipment firm ZTE, and declaring a "hold" on a looming trade war with Beijing but then announcing he would press ahead with $50 billion in tariffs on China's tech sector. Last week, the administration also launched a national security-based investigation that could result in stinging tariffs on the hundreds of billions of autos the US imports annually, just as it has for the smaller aluminum and steel industries. And Ross also vetoed a traditional joint statement at an annual economic meeting in Paris this week which denounced protectionism, further angering US allies. Relations among G7 nations represent particularly high stakes as they account for more than 60 percent of global GDP. And the sectors where Trump has chosen to wage his battles are key to trade in the economic bloc. More than 60 percent of US auto imports -- an industry that closely binds US and Canadian manufacturing -- come from G7 countries, as well as more than 50 percent of aluminum imports and nearly 36 percent of steel. Stephanie Segal, deputy director of the Simon Chair in political economy at the Center for Strategic and International Studies, said Washington's many about-faces meant consensus in the near-term was an increasingly dim prospect. "It doesn't feel particularly constructive to me and I have to believe that the end game is not to create market instability, which is precisely what something like this does," she told AFP. The Italian crisis, she said, demonstrated that there already were pressing matters facing the G7 even without the man-made ones now dominating the trans-Atlantic conversation. "It's an opportunity to focus the mind on the fact that there are plenty of real crises out there, that creating a crises with a trade war on-off and antagonizing allies is probably not where we should be spending our energy."

Escalating trade battle embroils G7 finance meet

Japan's economy is expected to have contracted for the first time in two years in the first quarter due to weak private consumption and softer export demand, a Reuters poll showed on Friday.

A negative reading, while slight, would snap Japan's longest period of economic expansion - eight straight quarters of growth - since its 1980s bubble economy.

But analysts said the expected January-March weakness may be only a temporary soft patch, arguing that higher prices for fresh vegetables and bad winter weather likely weighed on consumer spending in the quarter.

The global economy also has remained firm, suggesting Japan will regain traction in the second quarter, they added.

Gross domestic product (GDP) probably shrank at an annualised rate of 0.2 per cent in the first quarter after a 1.6 of expansion in the final quarter of 2017, the poll of 18 analysts showed.

That would mark the first contraction in the world's third-largest economy since late 2015.

The annualised contraction would translate into a flat reading from the previous quarter.

"The economy had steadily recovered but it appeared to have come to a temporary standstill," said Yoshiki Shinke, chief economist at Dai-ichi Life Research Institute.

"Economic indicators such as factory output and firms' business sentiment have shown a softening momentum of the economy. The GDP data will likely reflect those moves."

Analysts believe there was no growth in private consumption in the quarter, after a 0.5 per cent gain in the final quarter last year. Private consumption accounts for 60 per cent of GDP.

External demand - or exports minus imports - also provided no contribution to GDP, the poll found. Japan's exports rose less than expected in March and a business survey showed export order growth slowed sharply in April due to a stronger yen.

Capital spending was forecast to rise 0.4 per cent in the quarter, slowing from a 1.0 per cent increase in the previous period but still up for a sixth straight quarter.

"The economy is expected to return to the pace of around annualised 1.0 per cent growth from April-June but we need to pay attention to impacts from the United States' trade protectionism including the currency movements," said Yusuke Ichikawa, senior economist at Mizuho Research Institute.

The Cabinet Office will publish the GDP data on May 16 at 8:50am (2350 GMT, May 15).

MACHINERY ORDERS, CORE CPI

The poll also predicted machinery orders fell 3.0 per cent in March from the previous month, when they grew 2.1 per cent. The highly volatile data series is regarded as an indicator of capital spending in six to nine months.

It would be the first decline in three months after a 2.1 per cent growth in February and a 8.2 per cent jump in January.

Still, machinery orders likely rose for the third straight quarter in Jan-March versus the previous quarter, analysts say.

"Capital spending is staying solid despite the bearish tone of domestic and overseas economies and it will likely retain its positive movement," said an analyst at SMBC Nikko Securities in the survey.

The machinery order data will be released at 8:50am on May 17.

The poll also found the core consumer price index (CPI), which includes oil products but excludes volatile fresh food prices, rose 0.8 percent in April from a year earlier, a touch less than the 0.9 per cent gain seen in March.

Core CPI is due out at 8:30am on May 18.

The Bank of Japan's corporate goods price index (CGPI), which measures the prices companies charge each other for goods and services, likely grew 2.0 per cent in April.

The annualised contraction would translate into a flat reading from the previous quarter.

Japan's economy is expected to have contracted for the first time in two years in the first quarter due to weak private consumption and softer export demand, a Reuters poll showed on Friday. A negative reading, while slight, would snap Japan's longest period of economic expansion - eight straight quarters of growth - since its 1980s bubble economy. But analysts said the expected January-March weakness may be only a temporary soft patch, arguing that higher prices for fresh vegetables and bad winter weather likely weighed on consumer spending in the quarter. The global economy also has remained firm, suggesting Japan will regain traction in the second quarter, they added. Gross domestic product (GDP) probably shrank at an annualised rate of 0.2 per cent in the first quarter after a 1.6 of expansion in the final quarter of 2017, the poll of 18 analysts showed. That would mark the first contraction in the world's third-largest economy since late 2015. The annualised contraction would translate into a flat reading from the previous quarter. "The economy had steadily recovered but it appeared to have come to a temporary standstill," said Yoshiki Shinke, chief economist at Dai-ichi Life Research Institute. "Economic indicators such as factory output and firms' business sentiment have shown a softening momentum of the economy. The GDP data will likely reflect those moves." Analysts believe there was no growth in private consumption in the quarter, after a 0.5 per cent gain in the final quarter last year. Private consumption accounts for 60 per cent of GDP. External demand - or exports minus imports - also provided no contribution to GDP, the poll found. Japan's exports rose less than expected in March and a business survey showed export order growth slowed sharply in April due to a stronger yen. Capital spending was forecast to rise 0.4 per cent in the quarter, slowing from a 1.0 per cent increase in the previous period but still up for a sixth straight quarter. "The economy is expected to return to the pace of around annualised 1.0 per cent growth from April-June but we need to pay attention to impacts from the United States' trade protectionism including the currency movements," said Yusuke Ichikawa, senior economist at Mizuho Research Institute. The Cabinet Office will publish the GDP data on May 16 at 8:50am (2350 GMT, May 15). MACHINERY ORDERS, CORE CPI The poll also predicted machinery orders fell 3.0 per cent in March from the previous month, when they grew 2.1 per cent. The highly volatile data series is regarded as an indicator of capital spending in six to nine months. It would be the first decline in three months after a 2.1 per cent growth in February and a 8.2 per cent jump in January. Still, machinery orders likely rose for the third straight quarter in Jan-March versus the previous quarter, analysts say. "Capital spending is staying solid despite the bearish tone of domestic and overseas economies and it will likely retain its positive movement," said an analyst at SMBC Nikko Securities in the survey. The machinery order data will be released at 8:50am on May 17. The poll also found the core consumer price index (CPI), which includes oil products but excludes volatile fresh food prices, rose 0.8 percent in April from a year earlier, a touch less than the 0.9 per cent gain seen in March. Core CPI is due out at 8:30am on May 18. The Bank of Japan's corporate goods price index (CGPI), which measures the prices companies charge each other for goods and services, likely grew 2.0 per cent in April.

Japan economy seen shrinking for first time in two years in first quarter

US trade sanctions will hit the world economy, Beijing warned Wednesday, after President Donald Trump threatened to impose fresh tariffs on imports from China. &nbsp;

Trump said he was &quot;considering all options,&quot; including tariffs and quotas, after he accused China of decimating the American steel and aluminium industries.

Washington has already imposed a range of tariffs on Chinese-made goods, sparking fears of a tit-for-tat trade war between the world&#39;s top two economies as China also threatens to take action.&nbsp;

Foreign ministry spokesman Geng Shuang told reporters that &quot;any sign of unilateralism or protectionism will ... worsen global trade issues and will hurt the recovering momentum of the world economy&quot;.

He added that with the sheer volume of trade and integration between the US and Chinese economies, some friction was natural.

However, &quot;China always regards the US as an important cooperation partner in trade and economy, and we hope we will continue to open our respective markets wider&quot;, Geng said.&nbsp;

The Trump administration has two months to decide whether to take action on Chinese aluminium, steel and intellectual property practices.

China produces around half of the world&#39;s steel but stands accused of &quot;dumping&quot; cheap steel on global markets to gain market share.

The two countries have already begun trading sanctions in what China&#39;s commerce ministry warned could become a &quot;vicious circle&quot;.

On Monday Beijing announced it had taken aim at imports from the US of styrene, a key chemical in the manufacture of styrofoam.&nbsp;

Last week it launched an anti-dumping investigation into sorghum imports from the US, worth almost $1 billion last year.

The measures come a month after the Trump administration slapped new tariffs on Chinese-made solar panels and washing machines, the most recent in a series of trade cases that have rattled Beijing.

The two countries have already begun trading sanctions in what China's commerce ministry warned could become a 'vicious circle'

US trade sanctions will hit the world economy, Beijing warned Wednesday, after President Donald Trump threatened to impose fresh tariffs on imports from China. Trump said he was "considering all options," including tariffs and quotas, after he accused China of decimating the American steel and aluminium industries. Washington has already imposed a range of tariffs on Chinese-made goods, sparking fears of a tit-for-tat trade war between the world's top two economies as China also threatens to take action. Foreign ministry spokesman Geng Shuang told reporters that "any sign of unilateralism or protectionism will ... worsen global trade issues and will hurt the recovering momentum of the world economy". He added that with the sheer volume of trade and integration between the US and Chinese economies, some friction was natural. However, "China always regards the US as an important cooperation partner in trade and economy, and we hope we will continue to open our respective markets wider", Geng said. The Trump administration has two months to decide whether to take action on Chinese aluminium, steel and intellectual property practices. China produces around half of the world's steel but stands accused of "dumping" cheap steel on global markets to gain market share. The two countries have already begun trading sanctions in what China's commerce ministry warned could become a "vicious circle". On Monday Beijing announced it had taken aim at imports from the US of styrene, a key chemical in the manufacture of styrofoam. Last week it launched an anti-dumping investigation into sorghum imports from the US, worth almost $1 billion last year. The measures come a month after the Trump administration slapped new tariffs on Chinese-made solar panels and washing machines, the most recent in a series of trade cases that have rattled Beijing.

China warns Trump trade sanctions threaten global economy

<a href="http://www.wionews.com/world/bubble-or-brave-new-world-bitcoin-breaks-usd-10000-barrier-25407" target="_blank">Bitcoin made headlines</a> again as it went up to a record high, soaring beyond $11,000 on Wednesday, nearly for a week. While the cryptocurrency -- that was founded in the year 2009 -- has seen a massive boost with people across the world using it as an investment tool, financial experts across the globe now raise concerns over its possibilities to promote mass-scale financial frauds.

Simply put, <a href="http://www.wionews.com/photos/a-little-bit-of-coins-bitcoins-explained-via-a-comic-strip-45" target="_blank">Bitcoin is a cryptocurrency</a> or currency in digital form which is not tangible and floats in and through digital wallets, what can be perceived as something similar to Paytm or BHIM. A cryptocurrency is not issued by any bank, financial institution or a central authority, the very reason why governments can&#39;t have any control over its regulation or usage.&nbsp;

One of the key features of Bitcoin is the anonymity associated with the identity of a person who owns it, invests in it or make transactions using it, not only this, there is absolutely no way to trace a transaction back to the parties involved -- the very reason why it is seen a tool that could actively promote financial frauds and illicit activities like tax evasion and money laundering.&nbsp;

&nbsp;Also read: <a href="http://www.wionews.com/photos/a-little-bit-of-coins-bitcoins-explained-via-a-comic-strip-45#photo-6142">A little Bit of Coins: Bitcoins explained via a comic strip</a>

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While the cryptocurrencies are on the rise in the world, there has been no regulations regarding them in India. The bitcoin mining facilities are on the rise here but is India ready for cryptocurrencies (WION)
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According to a Reuters report, &quot;more than 980,000 bitcoins have been stolen from exchanges, either by hackers or insiders. That&#39;s a total of more than $10 billion at current exchange rates. Few have been recovered,&quot;

&quot;Bitcoin has performed better than every central-bank-issued currency in every year since 2011 except for 2014 when it performed worse than any traditional currency. So far in 2017, it is up around 1000 percent. If you had bought $1,000 of bitcoin at the start of 2013 and had never sold any of it, you would now be sitting on $80 million,&quot; reports Reuters.&nbsp;

Newer cryptocurrencies like Zcash and Monero are designed to conceal the information that various regulatory authorities and others could use to follow the money flow, this could further enable savvy criminals to easily migrate to these untraceable systems.&nbsp;

Also read: <a href="http://www.wionews.com/world/bubble-or-brave-new-world-bitcoin-breaks-usd-10000-barrier-25407">Bubble or brave new world? Bitcoin breaks US $10,000 barrier</a>

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With fin-tech on the rise around the world there is an increasing focus on cryptocurrencies, such as Bitcoin. But how do these currencies operate and how are they managed? (WION)
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Also read:<a href="http://www.wionews.com/videos/dawood-ibrahim-is-trading-in-bitcoins-to-fly-under-radar-7064"> Dawood Ibrahim is trading in Bitcoins to fly under radar</a>

Should you invest in Bitcoin?

Another Reuters report talked about countries like China and South Korea banning digital coin sales this year. Regulators in the United States, Malaysia, Dubai, United Kingdom and Germany have already warned investors of expected risks of theft, fraud or hacking.&nbsp;

National regulatory bodies and watchdogs have little control over regulating digital coin sales, it is rather a challenge, to begin with.

&quot;The United Kingdom&#39;s Financial Conduct Authority and Securities Commission Malaysia reiterated their stance that digital coin sales are high-risk, speculative investments and that retail investors should be aware of that. The Dubai regulator pointed out that seeking out friendly jurisdictions was not unusual, but regulators still needed to warn about the inherent risks in digital coin sales,&quot; reports Reuters.&nbsp;

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With crypto-currencies on the rise around the world, there are concerns being raised about the technology being used by terrorists and criminals to evade digital tracking. WION&#39;s Archit Sinha brings you this report. (WION)
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As of now, <a href="http://www.wionews.com/videos/dawood-ibrahim-is-trading-in-bitcoins-to-fly-under-radar-7064" target="_blank">Bitcoin</a> remains an unchartered territory, a haven for some, also exposing many to the unforeseen perils associated with it. Different jurisdictions have varying approaches concerning its regulation or manipulation, reaching a global consensus, therefore, looks like a distant and difficult task to achieve.&nbsp;

(With inputs from Reuters) 
&nbsp;

Bitcoin made headlines again as it went up to a record high, soaring beyond $11,000 nearly for a week on Wednesday.

Bitcoin made headlines again as it went up to a record high, soaring beyond $11,000 on Wednesday, nearly for a week. While the cryptocurrency -- that was founded in the year 2009 -- has seen a massive boost with people across the world using it as an investment tool, financial experts across the globe now raise concerns over its possibilities to promote mass-scale financial frauds. Simply put, Bitcoin is a cryptocurrency or currency in digital form which is not tangible and floats in and through digital wallets, what can be perceived as something similar to Paytm or BHIM. A cryptocurrency is not issued by any bank, financial institution or a central authority, the very reason why governments can't have any control over its regulation or usage. One of the key features of Bitcoin is the anonymity associated with the identity of a person who owns it, invests in it or make transactions using it, not only this, there is absolutely no way to trace a transaction back to the parties involved -- the very reason why it is seen a tool that could actively promote financial frauds and illicit activities like tax evasion and money laundering. Also read: A little Bit of Coins: Bitcoins explained via a comic strip While the cryptocurrencies are on the rise in the world, there has been no regulations regarding them in India. The bitcoin mining facilities are on the rise here but is India ready for cryptocurrencies (WION) × According to a Reuters report, "more than 980,000 bitcoins have been stolen from exchanges, either by hackers or insiders. That's a total of more than $10 billion at current exchange rates. Few have been recovered," "Bitcoin has performed better than every central-bank-issued currency in every year since 2011 except for 2014 when it performed worse than any traditional currency. So far in 2017, it is up around 1000 percent. If you had bought $1,000 of bitcoin at the start of 2013 and had never sold any of it, you would now be sitting on $80 million," reports Reuters. Newer cryptocurrencies like Zcash and Monero are designed to conceal the information that various regulatory authorities and others could use to follow the money flow, this could further enable savvy criminals to easily migrate to these untraceable systems. Also read: Bubble or brave new world? Bitcoin breaks US $10,000 barrier With fin-tech on the rise around the world there is an increasing focus on cryptocurrencies, such as Bitcoin. But how do these currencies operate and how are they managed? (WION) × Also read: Dawood Ibrahim is trading in Bitcoins to fly under radar Should you invest in Bitcoin? Another Reuters report talked about countries like China and South Korea banning digital coin sales this year. Regulators in the United States, Malaysia, Dubai, United Kingdom and Germany have already warned investors of expected risks of theft, fraud or hacking. National regulatory bodies and watchdogs have little control over regulating digital coin sales, it is rather a challenge, to begin with. "The United Kingdom's Financial Conduct Authority and Securities Commission Malaysia reiterated their stance that digital coin sales are high-risk, speculative investments and that retail investors should be aware of that. The Dubai regulator pointed out that seeking out friendly jurisdictions was not unusual, but regulators still needed to warn about the inherent risks in digital coin sales," reports Reuters. With crypto-currencies on the rise around the world, there are concerns being raised about the technology being used by terrorists and criminals to evade digital tracking. WION's Archit Sinha brings you this report. (WION) × As of now, Bitcoin remains an unchartered territory, a haven for some, also exposing many to the unforeseen perils associated with it. Different jurisdictions have varying approaches concerning its regulation or manipulation, reaching a global consensus, therefore, looks like a distant and difficult task to achieve. (With inputs from Reuters)

Should you invest in Bitcoin? UK, US warn investors of fraud, theft

Central bankers, in charge of the vast bulk of the world&#39;s economy,&nbsp;delved deep into the weeds of money markets and interest rates over a three-day conference here, and emerged with a common plea to their colleagues in the rest of government: please help. 
 
Mired in a world of low growth, low inflation and low-interest rates, officials from the Federal Reserve, Bank of Japan and the European Central Bank said their efforts to bolster the economy through monetary policy may falter unless elected leaders stepped forward with bold measures. 
 
These would range from immigration reform in Japan to structural changes to boost productivity and growth in the US and Europe. 
 
Without that, they said, it would be hard to convince markets and households that things will get better, and encourage the shift in mood many economists feel are needed to improve economic performance worldwide. 
 
During a Saturday session at the symposium, such a slump in expectations about inflation and about other aspects of the economy was cited as a central problem complicating central banks&#39; efforts to reach inflation targets and dimming prospects in Japan and Europe.&nbsp; 
 
ECB executive board member Benoit Coeure said the bank was working hard to prevent public expectations about inflation from becoming entrenched &quot;on either side&quot; - neither too high nor too low. But the slow pace of economic reform among European governments, he said, was damaging the effort. 
 
&quot;What we have seen since 2007 is half-baked and half-hearted structural reforms. That does not help supporting inflation expectations. That has helped entertain disinflationary expectations,&rdquo; Coeure said. 
 
Bank of Japan governor Haruhiko Kuroda said he is in regular talks with Japanese Prime Minister Shinzo Abe about opening Japan to more immigration and other politically sensitive changes needed to improve potential growth, currently estimated at only around one percent annually.&nbsp; 
 
Fed Chair Janet Yellen devoted the final page of her keynote talk on possible monetary policy reforms to a list of fiscal and structural policies she feels would help the economy. 
 
Fiscal policy was not on the formal agenda for the conference, but it was a steady part of the dialogue as policymakers thought through policies for a post-crisis world. One of the central worries is that households and businesses have become so cautious and set in their outlooks - expecting little growth and little inflation - that they do not respond in expected ways to the efforts central banks have made. 
 
That has included flooding the financial system with cash, and voicing a steady commitment to their inflation targets in an effort to make people believe they will be met. 
 
Kuroda acknowledged that household expectations have not moved, and said the BOJ was prepared to continue its battle to figure out how to shift them. In modern monetary theory, households and business expectations are felt to play a defining role in spending and investment decisions, and thus in shaping inflation and growth. 
 
&quot;Japanese inflation dynamics remain vulnerable,&quot; Kuroda said. &quot;It could be that long-term inflation expectations are yet to be anchored in Japan&quot; at the bank&#39;s 2 per cent target. 
 
The concern about expectations is a paradox. The Fed, for example, fought a difficult battle with inflation in the 1970s, hiking interest rates to recession-provoking levels and eventually winning a war of credibility over its ability to rein in price increases. 
 
Some central bankers remain fearful of clipping that cord. 
 
But they also are hunting for ways to jolt the economy out of its doldrums, and a fiscal push is a possible tool. 
 
In a lunch address by Princeton University economist Christopher Sims, policymakers were told that it may take a massive program, large enough even to shock taxpayers into a different, inflationary view of the future. 
 
&quot;Fiscal expansion can replace ineffective monetary policy at the zero lower bound,&quot; Sims said. &quot;It requires deficits aimed at, and conditioned on, generating inflation. The deficits must be seen as financed by future inflation, not future taxes or spending cuts.&quot; 
 
It was not clear whether such ideas will catch on. But there was a broad sense here that the other side of government may need to up its game. 
 
(Reuters)

Mired in world of low growth and inflation, officials said their efforts to boost economy may falter unless elected leaders stepped forward

Central bankers, in charge of the vast bulk of the world's economy, delved deep into the weeds of money markets and interest rates over a three-day conference here, and emerged with a common plea to their colleagues in the rest of government: please help. Mired in a world of low growth, low inflation and low-interest rates, officials from the Federal Reserve, Bank of Japan and the European Central Bank said their efforts to bolster the economy through monetary policy may falter unless elected leaders stepped forward with bold measures. These would range from immigration reform in Japan to structural changes to boost productivity and growth in the US and Europe. Without that, they said, it would be hard to convince markets and households that things will get better, and encourage the shift in mood many economists feel are needed to improve economic performance worldwide. During a Saturday session at the symposium, such a slump in expectations about inflation and about other aspects of the economy was cited as a central problem complicating central banks' efforts to reach inflation targets and dimming prospects in Japan and Europe. ECB executive board member Benoit Coeure said the bank was working hard to prevent public expectations about inflation from becoming entrenched "on either side" - neither too high nor too low. But the slow pace of economic reform among European governments, he said, was damaging the effort. "What we have seen since 2007 is half-baked and half-hearted structural reforms. That does not help supporting inflation expectations. That has helped entertain disinflationary expectations,” Coeure said. Bank of Japan governor Haruhiko Kuroda said he is in regular talks with Japanese Prime Minister Shinzo Abe about opening Japan to more immigration and other politically sensitive changes needed to improve potential growth, currently estimated at only around one percent annually. Fed Chair Janet Yellen devoted the final page of her keynote talk on possible monetary policy reforms to a list of fiscal and structural policies she feels would help the economy. Fiscal policy was not on the formal agenda for the conference, but it was a steady part of the dialogue as policymakers thought through policies for a post-crisis world. One of the central worries is that households and businesses have become so cautious and set in their outlooks - expecting little growth and little inflation - that they do not respond in expected ways to the efforts central banks have made. That has included flooding the financial system with cash, and voicing a steady commitment to their inflation targets in an effort to make people believe they will be met. Kuroda acknowledged that household expectations have not moved, and said the BOJ was prepared to continue its battle to figure out how to shift them. In modern monetary theory, households and business expectations are felt to play a defining role in spending and investment decisions, and thus in shaping inflation and growth. "Japanese inflation dynamics remain vulnerable," Kuroda said. "It could be that long-term inflation expectations are yet to be anchored in Japan" at the bank's 2 per cent target. The concern about expectations is a paradox. The Fed, for example, fought a difficult battle with inflation in the 1970s, hiking interest rates to recession-provoking levels and eventually winning a war of credibility over its ability to rein in price increases. Some central bankers remain fearful of clipping that cord. But they also are hunting for ways to jolt the economy out of its doldrums, and a fiscal push is a possible tool. In a lunch address by Princeton University economist Christopher Sims, policymakers were told that it may take a massive program, large enough even to shock taxpayers into a different, inflationary view of the future. "Fiscal expansion can replace ineffective monetary policy at the zero lower bound," Sims said. "It requires deficits aimed at, and conditioned on, generating inflation. The deficits must be seen as financed by future inflation, not future taxes or spending cuts." It was not clear whether such ideas will catch on. But there was a broad sense here that the other side of government may need to up its game. (Reuters)

Global central bankers send plea for help to governments

Britain&#39;s new finance minister Philip Hammond, under pressure from his peers from around the world, said today there could be more clarity later this year on how the country will exit the European Union. 
 
Several nations called on Britain during weekend talks on the world economy to explain how the politically fraught Brexit process will unfold in order to avoid adding a new drag on the long and slow recovery from the financial crisis. 
 
&quot;It&#39;s right at the top of the agenda here at the G20,&quot; Hammond said at the end of the two-day meeting of the Group of 20 leading economies in the Chinese city of Chengdu. &quot;It&#39;s a new factor affecting the global economic outlook and it has increased the uncertainty which the world economy faces.&quot; 
 
Britain was plunged into its biggest political crisis in decades by the June 23 Brexit vote and so far it has resisted calls from some other EU countries to trigger quickly the two-year process for negotiating its exit from the bloc. 
 
Prime Minister Theresa May, who has been in her job for less than two weeks, traveled to Germany and France last week to explain why she needed time to come up with an exit strategy. 
 
The EU&#39;s top economic official, Pierre Moscovici, said the bloc understood that Britain should not be rushed but &quot;at the same time let&#39;s not waste time, let&#39;s not have too much uncertainty, let&#39;s act and choose as swiftly as possible.&quot; 
 
Hammond told reporters today the two-year negotiating period, once launched, represented &quot;quite a tight timescale&quot; and Britain needed to go into it with clear objectives. &quot;We have to do that before the start of the process because when we serve that notice, we need to hit the ground running,&quot; he said. 
 
But Hammond also showed he was aware of the need for some clarity on Brexit: &quot;What will start to reduce uncertainty is when we are able to set out more clearly the kind of arrangement we envisage going forward with the European Union.&quot; 
 
&quot;If our European Union partners respond to such a vision positively - obviously it will be subject to negotiation - so that there is a sense perhaps later this year that we are all on the same page in terms of where we expect to be going, I think that will send a reassuring signal to the business community and to markets,&quot; Hammond said. 
 
May has said she does not plan to launch the formal negotiation period this year. It remains to be seen if other EU countries would enter informal talks with Britain before the formal negotiations, something they have previously ruled out. 
 
Govt, Bank of England have to be ready 
 
Financial markets have stabilised after the initial shock of the referendum result which saw the value of the pound plunge by more than 10 per cent and trillions of dollars wiped off stock markets worldwide. But economists are expecting Britain to fall into a recession, according to a Reuters poll. 
 
Hammond said he did not think that a survey of British businesses published on Friday, which showed the sharpest fall on record in a purchasing managers index, was a sign that the economy was in already in a recession. 
 
&quot;What it does is underscore the hit to confidence,&quot; he said. 
 
Hammond warned that Brexit-related volatility in markets would be a risk throughout the two-year negotiation period. 
 
&quot;We have to be ready as government, the Bank of England has to be ready as monetary authority, throughout that period to respond to any instability created by that uncertainty and to ensure that the economy continues to operate smoothly,&quot; he said. 
 
The BoE is expected to cut interest rates and possibly announce more stimulus measures on August 4. Hammond has said he could ease fiscal policy in the autumn if more help is needed. 
 
Asked about a comment he made on Friday, that he might &quot;reset&quot; fiscal policy to cope with the Brexit fallout, Hammond said Britain&#39;s still high levels of debt meant it needed a new framework on its public finances to give clarity to markets. 
 
&quot;What that framework will look like will depend on the decisions we make about whether or not any fiscal stimulus is required on the basis of the data we will by then have available,&quot; he said. 
 
(Reuters)

Britain's finance minister accepted the need for some clarity on Brexit, said it's at the top of agenda at the G20

Britain's new finance minister Philip Hammond, under pressure from his peers from around the world, said today there could be more clarity later this year on how the country will exit the European Union. Several nations called on Britain during weekend talks on the world economy to explain how the politically fraught Brexit process will unfold in order to avoid adding a new drag on the long and slow recovery from the financial crisis. "It's right at the top of the agenda here at the G20," Hammond said at the end of the two-day meeting of the Group of 20 leading economies in the Chinese city of Chengdu. "It's a new factor affecting the global economic outlook and it has increased the uncertainty which the world economy faces." Britain was plunged into its biggest political crisis in decades by the June 23 Brexit vote and so far it has resisted calls from some other EU countries to trigger quickly the two-year process for negotiating its exit from the bloc. Prime Minister Theresa May, who has been in her job for less than two weeks, traveled to Germany and France last week to explain why she needed time to come up with an exit strategy. The EU's top economic official, Pierre Moscovici, said the bloc understood that Britain should not be rushed but "at the same time let's not waste time, let's not have too much uncertainty, let's act and choose as swiftly as possible." Hammond told reporters today the two-year negotiating period, once launched, represented "quite a tight timescale" and Britain needed to go into it with clear objectives. "We have to do that before the start of the process because when we serve that notice, we need to hit the ground running," he said. But Hammond also showed he was aware of the need for some clarity on Brexit: "What will start to reduce uncertainty is when we are able to set out more clearly the kind of arrangement we envisage going forward with the European Union." "If our European Union partners respond to such a vision positively - obviously it will be subject to negotiation - so that there is a sense perhaps later this year that we are all on the same page in terms of where we expect to be going, I think that will send a reassuring signal to the business community and to markets," Hammond said. May has said she does not plan to launch the formal negotiation period this year. It remains to be seen if other EU countries would enter informal talks with Britain before the formal negotiations, something they have previously ruled out. Govt, Bank of England have to be ready Financial markets have stabilised after the initial shock of the referendum result which saw the value of the pound plunge by more than 10 per cent and trillions of dollars wiped off stock markets worldwide. But economists are expecting Britain to fall into a recession, according to a Reuters poll. Hammond said he did not think that a survey of British businesses published on Friday, which showed the sharpest fall on record in a purchasing managers index, was a sign that the economy was in already in a recession. "What it does is underscore the hit to confidence," he said. Hammond warned that Brexit-related volatility in markets would be a risk throughout the two-year negotiation period. "We have to be ready as government, the Bank of England has to be ready as monetary authority, throughout that period to respond to any instability created by that uncertainty and to ensure that the economy continues to operate smoothly," he said. The BoE is expected to cut interest rates and possibly announce more stimulus measures on August 4. Hammond has said he could ease fiscal policy in the autumn if more help is needed. Asked about a comment he made on Friday, that he might "reset" fiscal policy to cope with the Brexit fallout, Hammond said Britain's still high levels of debt meant it needed a new framework on its public finances to give clarity to markets. "What that framework will look like will depend on the decisions we make about whether or not any fiscal stimulus is required on the basis of the data we will by then have available," he said. (Reuters)

UK seeks to assuage global worries over path to Brexit

Increasingly frequent terrorist attacks are becoming a growing threat to the global economy, finance chiefs from the world&#39;s leading economies said today. 
 
Earlier this month, 84 people were killed in Nice when a Tunisian truck driver - suspected to be inspired by the Islamic State jihadist group - ploughed a 19-tonne vehicle through a holiday crowd. That followed Paris attacks last year which left 130 dead. 
 
Kabul mourned today after its deadliest attack for 15 years killed 80 people and left hundreds maimed the previous day, reigniting concern that Islamic State was seeking to expand its foothold in Afghanistan. 
 
Last week a German-Iranian gunman - believed not to be connected to the Islamic State group but&nbsp;&quot;obsessed&quot; with mass killers - shot dead nine people in the German city of Munich before killing himself. 
 
&quot;We condemn, in the strongest possible terms, the recent terrorist attacks,&quot; G20 finance chiefs said in a communique after meeting in the Chinese city of Chengdu, adding that terrorism was one of the issues that &quot;complicate&quot; the economic environment. 
 
France&#39;s finance minister Michel Sapin said the concept of terrorism as an economic risk itself was new, but its inclusion in economic analyses was now &quot;normal&quot;. 
 
&quot;The world has already experienced terrorist attacks, the world experiences regional destabilisations,&quot; he told AFP. 
 
&quot;But today the frequency of attacks creates a new situation of uncertainty, which is at least as damaging as regional destabilisations or a regional conflict.&nbsp;That can have economic consequences that are just as important,&quot; he said. 
 
The G20 has long promoted efforts to combat financing of terrorist activities, particularly the work of the Financial Action Task Force. US treasury secretary Jacob Lew told reporters the meeting &quot;reaffirmed our solidarity and resolve to fight terrorism in all its forms and wherever it occurs, and strengthening our efforts to prevent financing of terrorism&quot;. 
 
Sapin pointed out that funding for what he called &quot;low-cost terrorism&quot;, carried out domestically using methods that cost attackers relatively little, must also be addressed. 
 
In a report ahead of the G20 meeting, IMF staff cited terrorism as an &quot;ongoing concern&quot;, among others including geopolitical tensions, climate-related factors and diseases. 
 
(AFP)

The frequency of attacks has created a situation of uncertainty which is as damaging as regional conflicts, France's finance minister said

Increasingly frequent terrorist attacks are becoming a growing threat to the global economy, finance chiefs from the world's leading economies said today. Earlier this month, 84 people were killed in Nice when a Tunisian truck driver - suspected to be inspired by the Islamic State jihadist group - ploughed a 19-tonne vehicle through a holiday crowd. That followed Paris attacks last year which left 130 dead. Kabul mourned today after its deadliest attack for 15 years killed 80 people and left hundreds maimed the previous day, reigniting concern that Islamic State was seeking to expand its foothold in Afghanistan. Last week a German-Iranian gunman - believed not to be connected to the Islamic State group but "obsessed" with mass killers - shot dead nine people in the German city of Munich before killing himself. "We condemn, in the strongest possible terms, the recent terrorist attacks," G20 finance chiefs said in a communique after meeting in the Chinese city of Chengdu, adding that terrorism was one of the issues that "complicate" the economic environment. France's finance minister Michel Sapin said the concept of terrorism as an economic risk itself was new, but its inclusion in economic analyses was now "normal". "The world has already experienced terrorist attacks, the world experiences regional destabilisations," he told AFP. "But today the frequency of attacks creates a new situation of uncertainty, which is at least as damaging as regional destabilisations or a regional conflict. That can have economic consequences that are just as important," he said. The G20 has long promoted efforts to combat financing of terrorist activities, particularly the work of the Financial Action Task Force. US treasury secretary Jacob Lew told reporters the meeting "reaffirmed our solidarity and resolve to fight terrorism in all its forms and wherever it occurs, and strengthening our efforts to prevent financing of terrorism". Sapin pointed out that funding for what he called "low-cost terrorism", carried out domestically using methods that cost attackers relatively little, must also be addressed. In a report ahead of the G20 meeting, IMF staff cited terrorism as an "ongoing concern", among others including geopolitical tensions, climate-related factors and diseases. (AFP)

Frequent terror attacks growing threat to global economy, say G20 ministers

The International Monetary Fund (IMF) has warned risks to the global economy are growing, as it called on some G20 nations to boost government spending.

Central bank chiefs and finance ministers from the world&#39;s top 20 economies gathered in the southwestern Chinese city of Chengdu on Saturday to tackle a slowing global economy facing new uncertainties with Britain voting to leave the European Union (EU).

&quot;Global growth remains weak, and downside risks have become more salient,&quot; the IMF said in a report released ahead of the G20 meeting.

&quot;Growth could be even lower if the current increases in economic and political uncertainty in the wake of the &#39;Brexit&#39; vote continue.&quot;

In an update to its April forecast, the IMF lowered its forecasts for global growth this year and next by 0.1 per cent, to 3.1 per cent and 3.5 per cent respectively.

Britain&#39;s new finance minister Philip Hammond is among those attending to deliver a message that his country is still &quot;open for business&quot;, according to a statement from the British treasury.

The IMF wants advanced economies like Germany and the United States to channel more public spending into infrastructure investment to help boost global growth, an issue that has sparked divisions among G20 members.

&quot;Reforms that facilitate the scaling up of infrastructure investment would help raise productive capacity, boost short-term demand directly, and catalyse private investment,&quot; it said.
Terrorism, Turkey, Trump 
 
But other challenges loom besides Brexit, including what one official attending referred to as the &quot;Three Ts&quot; -&nbsp;terrorism, Turkey and Trump.

The recent attack in the French city of Nice which killed 84 people, the third major incident in the European country over the past 18 months, has rattled financial markets, and a gunman in the German city of Munich killed nine people on Friday.

A failed coup in Turkey which had aimed at unseating President Recep Tayyip Erdogan, and his huge subsequent crackdown on opponents, has alarmed Ankara&#39;s Western allies.

Speaking at a G20-linked tax seminar on Saturday, Turkey&#39;s deputy prime minister Mehmet Simsek sought to reassure other countries.

&quot;Despite what has happened a week ago in Turkey,&nbsp;we will continue to strongly adhere to democratic principles and apply rule of law, and not much really has changed,&quot; he said.

Tycoon Donald Trump sealing the Republican party nomination in the US presidential race, where he will face Democrat Hillary Clinton, could add uncertainty if the contest is close.

At an earlier G20 meeting in February, finance ministers vowed to use &quot;all policy tools&quot; -- monetary, fiscal and structural -- to support economic growth.

&quot;The G20 process has given us greater ability to focus globally on how to use the different tools at our disposal to promote growth,&quot; US treasury secretary Jacob Lew told the tax seminar.

But with the use of monetary policy reaching its limits in some countries, analysts see more room for using fiscal measures.

&quot;As to stimulus, we actually do not expect much monetary stimulus ahead in the major advanced economies other than in Japan,&quot; Louis Kuijs, head of Asia economics at Oxford Economics in Hong Kong, said ahead of the G20 meeting.

&quot;But I do think that the likelihood of fiscal policy easing is rising globally.&quot; 
 
(AFP)

The International Monetary Fund has warned of risks to global growth in the wake of Britain leaving the European Union

The International Monetary Fund (IMF) has warned risks to the global economy are growing, as it called on some G20 nations to boost government spending. Central bank chiefs and finance ministers from the world's top 20 economies gathered in the southwestern Chinese city of Chengdu on Saturday to tackle a slowing global economy facing new uncertainties with Britain voting to leave the European Union (EU). "Global growth remains weak, and downside risks have become more salient," the IMF said in a report released ahead of the G20 meeting. "Growth could be even lower if the current increases in economic and political uncertainty in the wake of the 'Brexit' vote continue." In an update to its April forecast, the IMF lowered its forecasts for global growth this year and next by 0.1 per cent, to 3.1 per cent and 3.5 per cent respectively. Britain's new finance minister Philip Hammond is among those attending to deliver a message that his country is still "open for business", according to a statement from the British treasury. The IMF wants advanced economies like Germany and the United States to channel more public spending into infrastructure investment to help boost global growth, an issue that has sparked divisions among G20 members. "Reforms that facilitate the scaling up of infrastructure investment would help raise productive capacity, boost short-term demand directly, and catalyse private investment," it said. Terrorism, Turkey, Trump But other challenges loom besides Brexit, including what one official attending referred to as the "Three Ts" - terrorism, Turkey and Trump. The recent attack in the French city of Nice which killed 84 people, the third major incident in the European country over the past 18 months, has rattled financial markets, and a gunman in the German city of Munich killed nine people on Friday. A failed coup in Turkey which had aimed at unseating President Recep Tayyip Erdogan, and his huge subsequent crackdown on opponents, has alarmed Ankara's Western allies. Speaking at a G20-linked tax seminar on Saturday, Turkey's deputy prime minister Mehmet Simsek sought to reassure other countries. "Despite what has happened a week ago in Turkey, we will continue to strongly adhere to democratic principles and apply rule of law, and not much really has changed," he said. Tycoon Donald Trump sealing the Republican party nomination in the US presidential race, where he will face Democrat Hillary Clinton, could add uncertainty if the contest is close. At an earlier G20 meeting in February, finance ministers vowed to use "all policy tools" -- monetary, fiscal and structural -- to support economic growth. "The G20 process has given us greater ability to focus globally on how to use the different tools at our disposal to promote growth," US treasury secretary Jacob Lew told the tax seminar. But with the use of monetary policy reaching its limits in some countries, analysts see more room for using fiscal measures. "As to stimulus, we actually do not expect much monetary stimulus ahead in the major advanced economies other than in Japan," Louis Kuijs, head of Asia economics at Oxford Economics in Hong Kong, said ahead of the G20 meeting. "But I do think that the likelihood of fiscal policy easing is rising globally." (AFP)

G20 finance leaders meet in China, discuss growing risks to global economy

The world cannot depend on China alone to save it from a Brexit-induced downturn, the country&#39;s premier said today. 
 
Li Keqiang made the remarks after meeting the heads of six global economic organisations, days after the International Monetary Fund&nbsp;(IMF)&nbsp;predicted that uncertainty created by Britain&#39;s vote to leave the European Union would slow the world economy into next year. 
 
&quot;Given the financial fluctuations as a result of Brexit, China will advance market-based reform of its exchange rate,&quot; Li said, adding, &quot;we will not engage in a trade war or currency war.&nbsp;But it is impossible to carry all of the burden of the whole world on our shoulders,&quot; he said. 
 
Improving global economic growth would require the world to step up macroeconomic coordination and increase the transparency of macro policies, Li added. 
 
In an update to its April forecast, the IMF said global economic growth was likely to be 3.1 per cent this year and 3.4 per cent in 2017, a downward revision of 0.1 per cent for both years. At the same time it upgraded its growth forecast for China by 0.1 per cent to 6.6. 
 
The Asian giant&#39;s economy expanded at 6.7 per cent in the April-June period, the same as the first three months of the year, and slowing from a growth of 6.9 for the full year 2015, its weakest annual rate in a quarter of a century.&nbsp;But the second-quarter reading was stronger than expected and fuelled hopes that growth in the world&#39;s second-largest economy may be stabilising. 
 
Li said the IMF hike put &quot;pressure&quot; on China to &quot;maintain growth and stability&quot;, adding that the organisation should &quot;encourage all countries to move in the same direction&quot;. 
 
Following Li&#39;s comments, World Bank president Jim Yong Kim praised China for its commitment to international economic cooperation at a &quot;time when in the West there is a very loud rejection of globalisation and multilateralism&quot;. 
 
The remarks come as Beijing finds itself in a dispute with the EU over whether or not it deserves to be granted market economy status, a designation that would make it much harder for major economies to fight Beijing over alleged unfair trading practices. 
 
Li&#39;s meeting came ahead of a G-20 finance ministers summit in the Chinese city of Chengdu, where representatives from the biggest industrialised and emerging economies are expected to discuss the impact of Brexit. 
 
(AFP)

In the West there is a very loud rejection of globalisation and multilateralism: World Bank president, Jim Yong Kim

The world cannot depend on China alone to save it from a Brexit-induced downturn, the country's premier said today. Li Keqiang made the remarks after meeting the heads of six global economic organisations, days after the International Monetary Fund (IMF) predicted that uncertainty created by Britain's vote to leave the European Union would slow the world economy into next year. "Given the financial fluctuations as a result of Brexit, China will advance market-based reform of its exchange rate," Li said, adding, "we will not engage in a trade war or currency war. But it is impossible to carry all of the burden of the whole world on our shoulders," he said. Improving global economic growth would require the world to step up macroeconomic coordination and increase the transparency of macro policies, Li added. In an update to its April forecast, the IMF said global economic growth was likely to be 3.1 per cent this year and 3.4 per cent in 2017, a downward revision of 0.1 per cent for both years. At the same time it upgraded its growth forecast for China by 0.1 per cent to 6.6. The Asian giant's economy expanded at 6.7 per cent in the April-June period, the same as the first three months of the year, and slowing from a growth of 6.9 for the full year 2015, its weakest annual rate in a quarter of a century. But the second-quarter reading was stronger than expected and fuelled hopes that growth in the world's second-largest economy may be stabilising. Li said the IMF hike put "pressure" on China to "maintain growth and stability", adding that the organisation should "encourage all countries to move in the same direction". Following Li's comments, World Bank president Jim Yong Kim praised China for its commitment to international economic cooperation at a "time when in the West there is a very loud rejection of globalisation and multilateralism". The remarks come as Beijing finds itself in a dispute with the EU over whether or not it deserves to be granted market economy status, a designation that would make it much harder for major economies to fight Beijing over alleged unfair trading practices. Li's meeting came ahead of a G-20 finance ministers summit in the Chinese city of Chengdu, where representatives from the biggest industrialised and emerging economies are expected to discuss the impact of Brexit. (AFP)

Chinese premier: We alone cannot save world from Brexit downturn

The world`s top 20 economies will work to boost sluggish global trade despite growing protectionism, overcapacity concerns, and uncertainty over Brexit, G20 trade ministers said today at a meeting in Shanghai. 
 
&quot;The global recovery continues, but it remains uneven and falls short of our ambition for strong, sustainable and balanced growth. Downside risks and vulnerabilities persist,&quot; the trade ministers said in a joint statement, adding that trade should remain &quot;an important engine&quot; to spur global growth. 
 
Protectionism has been rising, G20 nations acknowledge&nbsp; 
 
The G20 nations, which account for 85 per cent of global trade, admitted that protectionism has been rising since the financial crisis, and said that new trade restrictions in the group had reached the highest monthly average registered since the&nbsp;World Trade Organisation (WTO) began monitoring in 2009. 
 
&quot;We note with concern that despite the G20&#39;s repeated pledge, the stock of restrictive measure affecting trade in goods and services has continued to rise,&quot; they said in the statement. 
 
Ahead of the meeting, WTO chief economist Robert Koopman warned that restrictive measures could affect industries including air freight cargo, sea based cargo, automobile sales and production, electronics trade, and agricultural raw materials. 
 
The world&#39;s leading economies over the weekend pledged to oppose trade protectionism and reiterated a promise not to add new protective measures until 2018. 
 
Global trade governance to be improve to combat slowdown 
 
Pertinent to mention that global trade is expected to grow at a tepid 2.8 per cent in 2016, the WTO had said in April. 
 
And this year is expected to be the fifth in a row where trade grew at less than three per cent, its weakest sustained level in 30 years, WTO Director-General Roberto Azevedo said on Friday ahead of the talks. 
 
To combat the global slowdown, the ministers said they agreed to improve global trade governance and to work towards easing and liberalising trade.Concerns over China&#39;s production overcapacity in steel have led to trade disputes with the EU and US, and China`s vice commerce minister Wang Shouwen said today that the G20 economies &quot;have realised the necessity to take global cooperation to handle the challenge caused by production overcapacity&quot;. 
 
But despite claims that China is dumping steel in foreign markets, he said &quot;China&#39;s effort in (handling) over capacity has been highly recognised&quot; by the group. 
 
&quot;While some other countries are talking about how to cut down production, Chinese government has already taken measures which have been effective.&quot; 
 
Meanwhile Britain&#39;s referendum vote to leave the European Union (EU) has added new concerns for the recovery of global economic and trade growth. 
 
&quot;Britain leaving the European Union will definitely have some impact on global trade, especially short-term investment,&quot; China&#39;s Wang commented today. 
 
Britain&#39;s trade minister Mark Price told the Financial Times in Beijing ahead of the weekend talk that tariffs would jump to an average level of at least three per cent after its exit from the EU. 
 
He said it&#39;s time to &quot;start exploring options&quot; on trade agreements and &quot;China is making very positive noises at the moment&quot;, the report said. 
 
(AFP)

Britain's referendum vote to leave the European Union has added new concerns for the recovery of global economic and trade growth

The world`s top 20 economies will work to boost sluggish global trade despite growing protectionism, overcapacity concerns, and uncertainty over Brexit, G20 trade ministers said today at a meeting in Shanghai. "The global recovery continues, but it remains uneven and falls short of our ambition for strong, sustainable and balanced growth. Downside risks and vulnerabilities persist," the trade ministers said in a joint statement, adding that trade should remain "an important engine" to spur global growth. Protectionism has been rising, G20 nations acknowledge The G20 nations, which account for 85 per cent of global trade, admitted that protectionism has been rising since the financial crisis, and said that new trade restrictions in the group had reached the highest monthly average registered since the World Trade Organisation (WTO) began monitoring in 2009. "We note with concern that despite the G20's repeated pledge, the stock of restrictive measure affecting trade in goods and services has continued to rise," they said in the statement. Ahead of the meeting, WTO chief economist Robert Koopman warned that restrictive measures could affect industries including air freight cargo, sea based cargo, automobile sales and production, electronics trade, and agricultural raw materials. The world's leading economies over the weekend pledged to oppose trade protectionism and reiterated a promise not to add new protective measures until 2018. Global trade governance to be improve to combat slowdown Pertinent to mention that global trade is expected to grow at a tepid 2.8 per cent in 2016, the WTO had said in April. And this year is expected to be the fifth in a row where trade grew at less than three per cent, its weakest sustained level in 30 years, WTO Director-General Roberto Azevedo said on Friday ahead of the talks. To combat the global slowdown, the ministers said they agreed to improve global trade governance and to work towards easing and liberalising trade.Concerns over China's production overcapacity in steel have led to trade disputes with the EU and US, and China`s vice commerce minister Wang Shouwen said today that the G20 economies "have realised the necessity to take global cooperation to handle the challenge caused by production overcapacity". But despite claims that China is dumping steel in foreign markets, he said "China's effort in (handling) over capacity has been highly recognised" by the group. "While some other countries are talking about how to cut down production, Chinese government has already taken measures which have been effective." Meanwhile Britain's referendum vote to leave the European Union (EU) has added new concerns for the recovery of global economic and trade growth. "Britain leaving the European Union will definitely have some impact on global trade, especially short-term investment," China's Wang commented today. Britain's trade minister Mark Price told the Financial Times in Beijing ahead of the weekend talk that tariffs would jump to an average level of at least three per cent after its exit from the EU. He said it's time to "start exploring options" on trade agreements and "China is making very positive noises at the moment", the report said. (AFP)

G20 nations pledge to boost sluggish global trade

Top US diplomat John Kerry will fly to Brussels and London on Monday for talks with Washington&#39;s key allies in the aftermath of Britain&#39;s vote to leave the European Union. 
 
US officials travelling to Rome with the secretary of state told reporters on the flight that two stops had been added to his European itinerary at the last moment. 
 
&quot;Tomorrow we&#39;ll go to Brussels and then on to London,&quot; one official said. 
 
Washington was dismayed last week when British voters chose to leave the European Union, a decision that triggered global economic uncertainty and fears other EU members will follow suit. 
 
President Barack Obama had made clear his concern about the Brexit referendum, and now US officials are scrambling to try to stop the political crisis harming Western unity. 
 
Kerry arrived in Rome today on a planned visit to have lunch with Foreign Minister Paolo Gentiloni and a working dinner with Israeli Prime Minister Benjamin Netanyahu. 
 
But officials on his flight said that on Monday he would fly on to the EU headquarters in Brussels for crisis talks with EU foreign policy chief Federica Mogherini. 
 
Mogherini had been expected to meet Kerry in Rome today, but she was busy dealing with the fallout of the dramatic vote, which stunned European and world leaders. 
 
From Brussels Kerry will continue to London to see Foreign Secretary Philip Hammond and other officials from outgoing British Prime Minister David Cameron`s government. 
 
The two senior diplomats are expected to hold a joint news conference before Kerry leaves to return to Washington. 
 
Obama and Kerry have been at pains to insist the vaunted &quot;special relationship&quot; between Washington and London will survive what US officials view as the Brexit debacle.But Washington foreign policy experts are all but unanimous in assessing that the White House will increasingly turn to core EU allies to defend its interests on the continent. 
 
Obama himself, on a visit to London last month, warned British voters that their nation would go &quot;to the back of the queue&quot; for a US trade deal if they voted &quot;out.&quot; 
 
US officials are also keen to help London`s divorce from Brussels go through smoothly without further inflicting further damage on skittish world financial markets. 
 
But they, like many EU capitals, are also concerned not to allow Brexit to serve as an inspiration for eurosceptic forces in other members such as Italy or The Netherlands. 
 
The London visit will be the first by a senior US official since Thursday`s dramatic referendum, when voters demanded Britain leave the world`s richest trading bloc.&nbsp; 
 
Kerry&#39;s trip had originally been planned as an opportunity to meet Netanyahu and discuss regional security and the stalled Israel-Palestinian peace process. 
 
But US officials played down the chance of any concrete progress, insisting that the pair meet regularly and that no new initiative would be on the table.&nbsp; 
 
(AFP)

London visit will be the first by John Kerry after the referendum when voters demanded Britain leave the world's richest trading bloc

Top US diplomat John Kerry will fly to Brussels and London on Monday for talks with Washington's key allies in the aftermath of Britain's vote to leave the European Union. US officials travelling to Rome with the secretary of state told reporters on the flight that two stops had been added to his European itinerary at the last moment. "Tomorrow we'll go to Brussels and then on to London," one official said. Washington was dismayed last week when British voters chose to leave the European Union, a decision that triggered global economic uncertainty and fears other EU members will follow suit. President Barack Obama had made clear his concern about the Brexit referendum, and now US officials are scrambling to try to stop the political crisis harming Western unity. Kerry arrived in Rome today on a planned visit to have lunch with Foreign Minister Paolo Gentiloni and a working dinner with Israeli Prime Minister Benjamin Netanyahu. But officials on his flight said that on Monday he would fly on to the EU headquarters in Brussels for crisis talks with EU foreign policy chief Federica Mogherini. Mogherini had been expected to meet Kerry in Rome today, but she was busy dealing with the fallout of the dramatic vote, which stunned European and world leaders. From Brussels Kerry will continue to London to see Foreign Secretary Philip Hammond and other officials from outgoing British Prime Minister David Cameron`s government. The two senior diplomats are expected to hold a joint news conference before Kerry leaves to return to Washington. Obama and Kerry have been at pains to insist the vaunted "special relationship" between Washington and London will survive what US officials view as the Brexit debacle.But Washington foreign policy experts are all but unanimous in assessing that the White House will increasingly turn to core EU allies to defend its interests on the continent. Obama himself, on a visit to London last month, warned British voters that their nation would go "to the back of the queue" for a US trade deal if they voted "out." US officials are also keen to help London`s divorce from Brussels go through smoothly without further inflicting further damage on skittish world financial markets. But they, like many EU capitals, are also concerned not to allow Brexit to serve as an inspiration for eurosceptic forces in other members such as Italy or The Netherlands. The London visit will be the first by a senior US official since Thursday`s dramatic referendum, when voters demanded Britain leave the world`s richest trading bloc. Kerry's trip had originally been planned as an opportunity to meet Netanyahu and discuss regional security and the stalled Israel-Palestinian peace process. But US officials played down the chance of any concrete progress, insisting that the pair meet regularly and that no new initiative would be on the table. (AFP)

Top US envoy Kerry heads to Britain amid Brexit crisis

Turmoil unleashed by Britain&#39;s vote to leave the EU engulfed the opposition Labour Party, while policymakers as far away as China, Japan and South Korea fretted today over the threat to global financial stability, hours before markets reopen. 
 
In the oldest parliamentary democracy, three million Britons have signed a petition calling for a re-run of Thursday&#39;s referendum that split the nation, and one opinion poll showed a strong majority of Scots now want to break with the United Kingdom rather than with the European Union. 
 
Labour&#39;s left-wing leader Jeremy Corbyn sacked his foreign policy chief as the party plunged into open conflict. 
 
His health chief responded by resigning, calling for a new leader and reflecting accusations among pro-EU lawmakers that Corbyn&#39;s failure to win over traditional Labour voters had played a major role in the referendum result. 
 
Sacked foreign affairs spokesman Hilary Benn also called for Corbyn, who was elected last year largely by Left-wing party members and supporters, to go. &quot;He is a good and decent man but he is not a leader,&quot; Benn told BBC television. 
 
The 52-48 per cent referendum vote marked the biggest blow since World War II to the European project of forging greater unity across the continent. 
 
Sterling fell as much as 10 per cent against the Dollar on Friday to levels last seen in 1985, while world stocks saw more than $2 trillion wiped off their value. The weekend gave some respite from the turmoil, but with markets opening shortly in Asia, anxiety is growing. 
 
Prime Minister David Cameron resigned on Friday after Britons ignored his passionate appeals to stay in the EU, but left formally notifying Brussels of Britain&#39;s exit to his successor, who is unlikely to be in office for about three months. That signals a long period of limbo. 
 
Chinese Finance Minister Lou Jiwei said the vote &quot;will cast a shadow over the global economy&quot;. 
 
&quot;It&#39;s difficult to predict now,&quot; he said at the first annual meeting of the Asian Infrastructure Investment Bank in Beijing. &quot;The knee-jerk reaction from the market is probably a bit excessive and needs to calm down and take an objective view.&quot; 
 
Japan likewise fretted over the effect on the global currency market and contemplated official action. &quot;Speculative, violent moves have extremely negative effects,&quot; said Tomomi Inada, policy chief of the ruling LDP party. &quot;If necessary, the government should not hesitate to respond, including currency intervention,&quot; Nikkei daily quoted him as saying. 
 
Prime Minister Shinzo Abe has tried to engineer a weaker Yen to encourage exports to help revive the Japanese economy. But after initial success, investors have sought safety in the Yen this year due to stock market turmoil and now the Brexit vote, pushing the currency back up. 
 
No respite 
 
South Korea&#39;s finance minister also said he feared international markets will remain volatile throughout negotiations on the British exit. 
 
The United States, which during campaigning made clear it wanted Britain to stay in the EU, also showed signs of unease. 
 
Secretary of state John Kerry will meet EU foreign policy chief Frederica Mogherini in Brussels and British Foreign Minister Philip Hammond in London on Monday. 
 
The visit is largely meant to offer symbolic reassurance at a critical juncture for Europe, but a senior US official said Kerry would also stress the importance of other members not following Britain&#39;s lead and further weakening the EU. 
 
Despite the international expressions of concern, respite from the uncertainty is unlikely for months, at the very least. 
 
Cameron has offered to stay on as a caretaker, but he has refused to invoke Article 50 of the EU&#39;s Lisbon Treaty, which allows for two years of exit negotiations. Instead he left that job to his successor, who is due to be elected by his Conservative Party sometime before its annual conference in October. 
 
Only after the new leader has invoked can work on thrashing out Britain&#39;s new relationship with the bloc begin. The man widely tipped as the next prime minister is former London mayor Boris Johnson, the most prominent member of the campaign to leave the EU. 
 
No lying down 
 
Signs are growing that not all the 16 million Britons who voted to stay in the EU are willing to take the result lying down. Many flocked to back an online petition demanding a second vote, with signatures exceeding three million today morning, more than double the figure the previous afternoon. 
 
The petition, posted on Parliament&#39;s website before the referendum, said there should be another vote if the outcome was close on a turnout of less than 75 per cent - three points above Thursday&#39;s figure. 
 
It will have to be considered for debate by lawmakers, but has no legal force and its backers compare with the 17.4 million who voted &quot;leave&quot;. 
 
The referendum has also re-energised support for Scotland, which voted overwhelmingly to remain in the EU, to break away from the United Kingdom instead. 
 
An opinion poll in The Sunday Post said 59 per cent of respondents backed independence, rocketing from 45 per cent of votes cast in a referendum in 2014. 
 
Scottish first minister Nicola Sturgeon has said a fresh independence referendum is possible 
 
&quot;My challenge now as first minister is to work out how I best protect Scotland&#39;s interests, how I try to prevent us being taken out of the EU against our will with all of the deeply damaging and painful consequences that that will entail,&quot; she told the BBC&#39;s Andrew Marr show.&nbsp; 
 
(Reuters)

The 52-48% referendum vote marked the biggest blow since World War II to the European project forging unity across the continent

Turmoil unleashed by Britain's vote to leave the EU engulfed the opposition Labour Party, while policymakers as far away as China, Japan and South Korea fretted today over the threat to global financial stability, hours before markets reopen. In the oldest parliamentary democracy, three million Britons have signed a petition calling for a re-run of Thursday's referendum that split the nation, and one opinion poll showed a strong majority of Scots now want to break with the United Kingdom rather than with the European Union. Labour's left-wing leader Jeremy Corbyn sacked his foreign policy chief as the party plunged into open conflict. His health chief responded by resigning, calling for a new leader and reflecting accusations among pro-EU lawmakers that Corbyn's failure to win over traditional Labour voters had played a major role in the referendum result. Sacked foreign affairs spokesman Hilary Benn also called for Corbyn, who was elected last year largely by Left-wing party members and supporters, to go. "He is a good and decent man but he is not a leader," Benn told BBC television. The 52-48 per cent referendum vote marked the biggest blow since World War II to the European project of forging greater unity across the continent. Sterling fell as much as 10 per cent against the Dollar on Friday to levels last seen in 1985, while world stocks saw more than $2 trillion wiped off their value. The weekend gave some respite from the turmoil, but with markets opening shortly in Asia, anxiety is growing. Prime Minister David Cameron resigned on Friday after Britons ignored his passionate appeals to stay in the EU, but left formally notifying Brussels of Britain's exit to his successor, who is unlikely to be in office for about three months. That signals a long period of limbo. Chinese Finance Minister Lou Jiwei said the vote "will cast a shadow over the global economy". "It's difficult to predict now," he said at the first annual meeting of the Asian Infrastructure Investment Bank in Beijing. "The knee-jerk reaction from the market is probably a bit excessive and needs to calm down and take an objective view." Japan likewise fretted over the effect on the global currency market and contemplated official action. "Speculative, violent moves have extremely negative effects," said Tomomi Inada, policy chief of the ruling LDP party. "If necessary, the government should not hesitate to respond, including currency intervention," Nikkei daily quoted him as saying. Prime Minister Shinzo Abe has tried to engineer a weaker Yen to encourage exports to help revive the Japanese economy. But after initial success, investors have sought safety in the Yen this year due to stock market turmoil and now the Brexit vote, pushing the currency back up. No respite South Korea's finance minister also said he feared international markets will remain volatile throughout negotiations on the British exit. The United States, which during campaigning made clear it wanted Britain to stay in the EU, also showed signs of unease. Secretary of state John Kerry will meet EU foreign policy chief Frederica Mogherini in Brussels and British Foreign Minister Philip Hammond in London on Monday. The visit is largely meant to offer symbolic reassurance at a critical juncture for Europe, but a senior US official said Kerry would also stress the importance of other members not following Britain's lead and further weakening the EU. Despite the international expressions of concern, respite from the uncertainty is unlikely for months, at the very least. Cameron has offered to stay on as a caretaker, but he has refused to invoke Article 50 of the EU's Lisbon Treaty, which allows for two years of exit negotiations. Instead he left that job to his successor, who is due to be elected by his Conservative Party sometime before its annual conference in October. Only after the new leader has invoked can work on thrashing out Britain's new relationship with the bloc begin. The man widely tipped as the next prime minister is former London mayor Boris Johnson, the most prominent member of the campaign to leave the EU. No lying down Signs are growing that not all the 16 million Britons who voted to stay in the EU are willing to take the result lying down. Many flocked to back an online petition demanding a second vote, with signatures exceeding three million today morning, more than double the figure the previous afternoon. The petition, posted on Parliament's website before the referendum, said there should be another vote if the outcome was close on a turnout of less than 75 per cent - three points above Thursday's figure. It will have to be considered for debate by lawmakers, but has no legal force and its backers compare with the 17.4 million who voted "leave". The referendum has also re-energised support for Scotland, which voted overwhelmingly to remain in the EU, to break away from the United Kingdom instead. An opinion poll in The Sunday Post said 59 per cent of respondents backed independence, rocketing from 45 per cent of votes cast in a referendum in 2014. Scottish first minister Nicola Sturgeon has said a fresh independence referendum is possible "My challenge now as first minister is to work out how I best protect Scotland's interests, how I try to prevent us being taken out of the EU against our will with all of the deeply damaging and painful consequences that that will entail," she told the BBC's Andrew Marr show. (Reuters)

British EU exit turmoil alarms Asia, rocks Labour opposition

The European Union&#39;s banking watchdog will move from London to another European capital if Britain decides to quit the bloc in a referendum this week, its chairman said in an interview published on Sunday. 
 
Britain votes on June 23 on whether to stay in the 28-member bloc, a choice with far-reaching consequences for politics, the economy, defence and diplomacy on the continent. 
 
The London-based European Banking Authority (EBA), founded in 2011 as a reaction to the global financial crisis, operates as a pan-EU regulator, writing and coordinating banking rules across the bloc. 
 
&quot;If the British should decide to leave the EU, we actually would have to move to another European capital,&quot; Andrea Enria, head of the EBA, told the German newspaper Welt am Sonntag. 
 
While betting odds have consistently indicated a vote to remain in the EU, opinion pollsters have so far painted contradictory pictures of how Britons will vote. 
 
The EBA is currently working on an EU single rulebook aimed at ensuring a level playing field for all banks across the 28-country bloc&#39;s capital market. 
 
&quot;This work needs to be completed irrespective of the result of the referendum,&quot; said Enria, an Italian national. &quot;We must ensure that there are no different rules between the countries that have the euro and those that do not have it.&quot; 
 
Enria said the European banking sector was more stable now than five years ago, but there was still need for consolidation. 
 
&quot;If you look at the balance sheets of banks, you could actually ask yourself whether such low profitability and such low return on investment are sustainable in the long term,&quot; he said. 
 
Banks should speed up their efforts to deal with non-performing loans and change their internal business culture in order to avoid future scandals and fines, Enria said. 
 
That banks have hardly made any progress in these two areas is the reason why the European Central Bank (ECB) is struggling to boost lending and generate more growth despite its bond-purchase programme, he added. 
(Reuters)

European Banking Authority is making arrangements to shift head office in case Britain opts out of the European union, says EBA's chairman

The European Union's banking watchdog will move from London to another European capital if Britain decides to quit the bloc in a referendum this week, its chairman said in an interview published on Sunday. Britain votes on June 23 on whether to stay in the 28-member bloc, a choice with far-reaching consequences for politics, the economy, defence and diplomacy on the continent. The London-based European Banking Authority (EBA), founded in 2011 as a reaction to the global financial crisis, operates as a pan-EU regulator, writing and coordinating banking rules across the bloc. "If the British should decide to leave the EU, we actually would have to move to another European capital," Andrea Enria, head of the EBA, told the German newspaper Welt am Sonntag. While betting odds have consistently indicated a vote to remain in the EU, opinion pollsters have so far painted contradictory pictures of how Britons will vote. The EBA is currently working on an EU single rulebook aimed at ensuring a level playing field for all banks across the 28-country bloc's capital market. "This work needs to be completed irrespective of the result of the referendum," said Enria, an Italian national. "We must ensure that there are no different rules between the countries that have the euro and those that do not have it." Enria said the European banking sector was more stable now than five years ago, but there was still need for consolidation. "If you look at the balance sheets of banks, you could actually ask yourself whether such low profitability and such low return on investment are sustainable in the long term," he said. Banks should speed up their efforts to deal with non-performing loans and change their internal business culture in order to avoid future scandals and fines, Enria said. That banks have hardly made any progress in these two areas is the reason why the European Central Bank (ECB) is struggling to boost lending and generate more growth despite its bond-purchase programme, he added. (Reuters)

EU banking watchdog to leave London in case of Brexit

<div style="text-align: justify;">Fears that&nbsp;Britain is on the verge of voting to leave the European Union next week, spread through global financial markets today, sending Asian and European shares sharply lower and the pound to an eight-week low. 
 
With the world economy looking shaky, and surprisingly weak, jobs figures last month suggesting even the United States is not ready for higher interest rates, concerns over the economic fallout of a Brexit have lurked in the background for weeks. 
 
They were at the heart on Monday of the biggest falls for Asian stock markets in four months, and a one&nbsp;per cent drop in European share prices, after a new poll late on Friday gave the &quot;Leave&quot; camp a 10 point lead. 
 
Money markets have now abandoned expectations, high just weeks ago, that the US&nbsp;Federal Reserve could raise official borrowing costs on Wednesday. Instead, the worry is that it could use language that quells expectations of a move this year at all. 
 
&quot;We&#39;re in uncharted territory in front of the Brexit vote, and then there&#39;s also the Fed this week. So the wall of worry is quite high at the moment,&quot; said Zeg Choudhry, managing director at LONTRAD.&nbsp;&quot;All the banks are a little bit lower, and they&#39;re the ones which are likely to get hit. For the next two weeks, you&#39;ve got to be slightly mad if you&#39;ve not got your money in defensive stocks.&quot; 
 
The news out of China, global investors&#39; other big concern this year, was also poor, with data showing investment growth cooling. Stock markets in Tokyo, Hong Kong and Shanghai all fell by around three&nbsp;per cent. 
 
By comparison, the moves in Europe, where investors have been preparing for the British vote for months, were more subdued. Britain&#39;s FTSE 100 fell one&nbsp;per cent, Germany&#39;s DAX 0.9 per cent, and France&#39;s CAC 40 by 0.8 per cent. 
 
On currency markets, sterling fell another half a per cent against the Dollar after sinking by as much as 3 full cents in value on Friday. The biggest beneficiary of the global moves, however, was the Yen, traditionally investors&#39; first choice in times of financial and economic stress. 
 
Further gains for the Japanese currency, which broke past long-term resistance around 106.50 Yen per Dollar and is up 14 per cent this year, puts more pressure on the Bank of Japan to act against the currency&#39;s strength this week. 
 
&quot;While the pound is the worst-performing G10 currency versus the Dollar this year, the Yen is by far the best,&quot; said Derek Halpenny, European Head of Global Markets Research at Bank of Tokyo-Mitsubishi in London. 
 
&quot;The continued surge of the Yen will lift expectations that the BOJ may surprise the markets and announce some additional monetary easing.&quot; 
 
The grim mood was visible on commodities markets, where crude oil futures added to Friday&#39;s three&nbsp;per cent drop after data showed the US&nbsp;oil drilling rig count rose for the second week in row. 
 
Gold, another perceived safe haven, hit four-week highs above $1,280 an ounce. (Reuters)</div>

Asian stock markets experience biggest drop in 4 months and European share prices fall by one per cent due to Britain's unassertive decision

Fears that Britain is on the verge of voting to leave the European Union next week, spread through global financial markets today, sending Asian and European shares sharply lower and the pound to an eight-week low. With the world economy looking shaky, and surprisingly weak, jobs figures last month suggesting even the United States is not ready for higher interest rates, concerns over the economic fallout of a Brexit have lurked in the background for weeks. They were at the heart on Monday of the biggest falls for Asian stock markets in four months, and a one per cent drop in European share prices, after a new poll late on Friday gave the "Leave" camp a 10 point lead. Money markets have now abandoned expectations, high just weeks ago, that the US Federal Reserve could raise official borrowing costs on Wednesday. Instead, the worry is that it could use language that quells expectations of a move this year at all. "We're in uncharted territory in front of the Brexit vote, and then there's also the Fed this week. So the wall of worry is quite high at the moment," said Zeg Choudhry, managing director at LONTRAD. "All the banks are a little bit lower, and they're the ones which are likely to get hit. For the next two weeks, you've got to be slightly mad if you've not got your money in defensive stocks." The news out of China, global investors' other big concern this year, was also poor, with data showing investment growth cooling. Stock markets in Tokyo, Hong Kong and Shanghai all fell by around three per cent. By comparison, the moves in Europe, where investors have been preparing for the British vote for months, were more subdued. Britain's FTSE 100 fell one per cent, Germany's DAX 0.9 per cent, and France's CAC 40 by 0.8 per cent. On currency markets, sterling fell another half a per cent against the Dollar after sinking by as much as 3 full cents in value on Friday. The biggest beneficiary of the global moves, however, was the Yen, traditionally investors' first choice in times of financial and economic stress. Further gains for the Japanese currency, which broke past long-term resistance around 106.50 Yen per Dollar and is up 14 per cent this year, puts more pressure on the Bank of Japan to act against the currency's strength this week. "While the pound is the worst-performing G10 currency versus the Dollar this year, the Yen is by far the best," said Derek Halpenny, European Head of Global Markets Research at Bank of Tokyo-Mitsubishi in London. "The continued surge of the Yen will lift expectations that the BOJ may surprise the markets and announce some additional monetary easing." The grim mood was visible on commodities markets, where crude oil futures added to Friday's three per cent drop after data showed the US oil drilling rig count rose for the second week in row. Gold, another perceived safe haven, hit four-week highs above $1,280 an ounce. (Reuters)

Brexit fear factor sends global stocks spinning

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