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Ft.com
Greece is ‘more than halfway’ to recovery, says Papademos. However the caretaker PM admitted the country would need more help if it couldn’t return to debt markets by 2015. He also says a silent majority of Greeks are willing to do whatever it takes to stay in the eurozone, despite the protestshttp://www.ft.com/cms/s/0/ebe47b9e-7107-11e1-a7f1-00144feab49a.html

Afghanistan has taken new steps to combat rampant capital flight after the central bank found that the amount of dollars flown out of Kabul doubled to $4.6bn last year. Afghan officials believe many of the brick-sized stacks of $100 bills stuffed into boxes, bags and suitcases by Dubai-bound passengers belong to drug lords or criminal cartels. http://www.ft.com/intl/cms/s/0/a888d1fc-6f12-11e1-afb8-00144feab49a.html#axzz1pXUCWYA7

Five banks have joined forces to create a hedging tool designed to improve the health of their balance sheets and protect them against market sell-offs as international regulations force institutions to increase  the quality of their assets. Barclays Capital, HSBC, Lloyds, Nomura and UBS are to launch a market in derivatives – overseen by the Wholesale Markets Brokers’ Association – aimed at reducing funding costs and boosting profits in the sterling markets. The derivatives, which will be used to offset the risks of holding UK government bonds or short-term loans, will start trading on April 17 and will enable banks to lock in their cost of funding from one week to a year. http://www.ft.com/intl/cms/s/0/e88fabaa-6f61-11e1-9c57-00144feab49a.html#axzz1pXUCWYA7

David Cameron is set to announce a plan that could see Britain’s trunk road and motorway network sold to the private sector on long leases, based on the water industry model. http://www.ft.com/cms/s/0/5e14897a-712b-11e1-a7f1-00144feab49a.html

Goldman Sachs is considering offering so-called “monoline” insurance, as it explores new business areas ahead of incoming financial regulation expected to hit its lucrative trading operations. Goldman would write “financial guarantees”, through one of its insurance subsidiaries, the New York-based investment bank said in a job advert recently posted on its website.Goldman is expected to be among the hardest-hit by new rules preventing banks from trading for their own accounts and demanding they hold more regulatory capital against their assets. It is known to be examining ways to tweak its business model, and has bulked up its insurance business by buying Ariel Holdings, a Bermuda-based reinsurer.http://www.ft.com/intl/cms/s/0/a1684756-6f79-11e1-9c57-00144feab49a.html#axzz1pXUCWYA7

London has retained its position as the leading global financial centre in the face of regulatory upheaval, sluggish economic conditions and turmoil in the eurozone, research has found. The rapid rise of mainland Chinese cities as financial services hubs in recent years has also been checked, according to a survey of 1,700 finance professionals. London, New York and Hong Kong keep their place at the head of the Global Financial Centres Index by think-tank Z/Yen Group, with London slightly ahead of the other two cities.  However, ratings for Shanghai, Beijing and Shenzhen all declined. http://www.ft.com/intl/cms/s/0/c9d9b3f8-70e8-11e1-a7f1-00144feab49a.html#axzz1pXUCWYA7

Wsj.com
Asian shares were mixed Monday as investors paused to reassess the global growth outlook following some downbeat economic data in the U.S., while real-estate developers struggled in Shanghai amid falling property prices. Japan’s Nikkei Stock Average rose 0.3%, Australia’s S&P/ASX 200 was up 0.4% and South Korea’s Kospi Composite gained 0.4%. Hong Kong’s Hang Seng Index added 0.3%, while China’s Shanghai Composite fell 0.3% and India’s Sensex was 0.2% lower. Dow Jones Industrial Average futures were up 40 points in screen tradehttp://online.wsj.com/article/SB10001424052702304636404577290282638706716.html?mod=WSJEUROPE_hpp_LEFTTopWhatNews

Brazilian authorities have barred a group of Transocean Ltd. and Chevron Corp. executives, including Chevron Brazil director George Buck, from leaving the country, a move that suggests formal criminal charges may be coming for the executives’ alleged roles in a deep-water oil spill last year. The travel ban follows the discovery of new oil seepage at the troubled field. http://online.wsj.com/article/SB10001424052702304724404577290132972756636.html?mod=WSJEUROPE_hpp_LEFTTopWhatNews

India’s Railway Minister Dinesh Trivedi resigned from his post Sunday, four days after he presented the railway budget that upset his party’s leader and West Bengal Chief Minister Mamata Banerjee with a proposed hike in train fares. “It was the party’s decision. Since the Trinamool Congress was instrumental in making me the railway minister, like a soldier, I must obey the party’s decision,” Mr. Trivedi told television news channels Sunday. Ms. Banerjee, the leader of Trinamool Congress, one of the biggest allies of the Congress-led coalition government at the center, had been upset with Mr. Trivedi for increasing train fares during last week’s railway budget. She said it would hurt the poor.http://online.wsj.com/article/SB10001424052702304724404577290620041798222.html?mod=WSJASIA_hpp_LEFTTopWhatNews

International Monetary Fund Managing Director Christine Lagarde praised China’s efforts to rebalance its economy, saying Sunday that the “highest levels” of the nation’s leadership appear to support needed efforts to keep the world’s biggest growth engine humming in coming years. But in an interview with The Wall Street Journal she stopped short of saying China’s efforts would change the IMF’s mind about China’s currency, which the IMF has declared undervalued. http://online.wsj.com/article/SB10001424052702304459804577288572845949222.html?mod=WSJEurope_hpp_LEFTTopStories

A group of financial-market players on Monday will determine that holders of $3.2 billion in Greek credit-default swaps will receive around $2.5 billion in compensation for Greece’s debt restructuring—a payout that mirrors the loss that creditors suffered. But the happy outcome owes much to mere chance. It masks flaws in the contracts, say some market participants and legal experts, that have rattled investors and are leading to calls to revamp how the swaps are handled for defaulting sovereign nations. Credit-default swaps, or CDS, are insurance-like contracts designed to pay off when creditors aren’t paid back. http://online.wsj.com/article/SB10001424052702303812904577289713015044778.html?mod=WSJEurope_hpp_LEFTTopStories

In the latest sign of the government’s gradual retreat from financial-crisis-related programs, the Treasury Department is expected to announce Monday that taxpayers reaped a $25 billion profit on mortgage bonds purchased at the height of the meltdown. The profit is the Treasury’s biggest for any program tied to the 2008-09 crisis. The government last week sold the last of the bonds, winding down Treasury’s ownership of debt backed by the federally backed mortgage investors Fannie Mae and Freddie Mac. Treasury spent $225 billion on purchases over 16 months before it began selling the securities last year.http://online.wsj.com/article/SB10001424052702303812904577289343060184930.html?mod=WSJEUROPE_hpp_LEFTTopWhatNews

Apple Inc. shareholders are about to get an answer to one of their most pressing questions: What will the technology giant do with its roughly $100 billion in cash? The Cupertino, Calif., company said late Sunday that it will hold a conference call Monday morning to disclose what it plans to do with the huge cash pile, of which shareholders have been increasingly demanding a piece. At Apple’s annual shareholder meeting in February, Chief Executive Tim Cook said the company had been thinking about its cash “very deeply,” and is actively discussing strategies for managing it with the company’s board. “It’s a lot,” he added. “It’s more than we need to run the company.”http://online.wsj.com/article/SB10001424052702304636404577290044096344220.html?mod=WSJEUROPE_hpp_LEFTTopWhatNews

Total SA’s top executive unveiled new ties with China as the French oil giant shifts its focus toward the fast-growing market, saying it reached pacts on shale-gas and refining operations here and that Chinese authorities now own a 2% stake in the company. Total reached a pact with China Petrochemical Corp., or Sinopec Group, to search for and produce shale gas, Chief Executive Christophe de Margerie said in an interview.  China has ambitions to tap its potentially lucrative yet technically challenging shale-gas deposits, which consist of natural gas trapped in rock formations. Shale gas has transformed the U.S. energy market but hasn’t yet been harnessed by energy-hungry China.http://online.wsj.com/article/SB10001424052702304636404577288961610767188.html?mod=WSJEUROPE_hpp_LEFTTopWhatNews

Marketwatch.com
Germany, the quintessential exporting nation, may have its most glorious trading days behind it. At a time when both China and Japan have flirted with trade deficits in past months, the world’s No 4 economy is still chalking up large surpluses. Last year’s current account surplus of 5% of GDP was one of the biggest in the world outside the oil exporting nations. But multiple economic changes in Asia and Europe indicate that in coming years, the Germans will find worldwide sales of “made in Germany” products a lot tougher. http://www.marketwatch.com/story/germanys-export-feast-is-over-2012-03-19

Spanish Prime Minister Mariano Rajoy has reopened a debate as old as the euro crisis or, indeed, debt crises themselves: Cut spending to reduce public deficits or spend to stimulate growth.  This time, the terms of the discussion are muddied by the fact that a new right-of-center government has reported a yawning deficit to Brussels, more in sorrow than pleasure blaming it on its predecessor’s having cooked the books. Nevertheless it has preferred to cut only to a whopping deficit of 5.8% instead of the 4.4% originally promised, rather than further deflate an economy that already has 23% unemployment. Through roles as an adviser to governments, at the top of international organizations and as a government minister myself, I have witnessed my share of international debt crises and how they are managed. Until 2008 Europe’s recent role had been a lot of advice, much of it unsolicited, about how other people in other parts of the world should manage their debt crises. So Latin Americans, Asians, Africans and then Eastern Europeans were for the most part urged to tighten their belts and pay up. http://www.marketwatch.com/story/euro-crisis-dilemma-2012-03-19

Reuters.com
Brent crude was steady near $126 a barrel on Monday, extending previous session’s gains, as prices were supported by continued concerns over a potential supply disruption from Iran and the prospect of a stronger U.S. economy lifting oil demand. Brent crude edged up 10 cents to $125.91 a barrel by 0501 GMT (1.31 am EDT), after settling up more than $3 in the previous session. U.S. crude rose 32 cents to $107.38, after climbing almost $2 on Friday. On the demand side, a brighter outlook for the U.S. economy and signs of growing stability in the euro zone pushed U.S. stocks to a near four-year high last week. http://www.reuters.com/article/2012/03/19/us-markets-oil-idUSBRE82B04920120319

Gold rose more than half a percent on Monday after firm oil prices prompted safe haven buying from investors and speculators, while technical buying also resurfaced after bullion bounced from its weakest level in two months. Gold added $9.35 to trade at $1,662.84 an ounce by 0323 GMT after posting a 3 percent fall last week in its second-biggest weekly decline this year, on fading expectations of more monetary easing in the United States.http://www.reuters.com/article/2012/03/19/us-markets-precious-idUSTRE82403220120319

Spring is in the air for financial markets. Liquidity is abundant, the desire to invest is rising and green shoots of growth are becoming more apparent across the developed world. The official start of spring in the northern hemisphere falls on March 20, when night and day are equally long, but before investors put a grim winter behind them entirely, they may want to wait for surveys of economic health in China and the euro zone due a couple of days later. Along with this purchasing managers data, the coming week’s releases feature a detailed readout on the health of the U.S. housing market, inflation measures from the UK and Germany, and Japan’s latest trade figures. http://www.reuters.com/article/2012/03/17/us-markets-global-weekahead-idUSBRE82F0UP20120317

Bloomberg.com
China, the world’s top weapons importer for much of the past decade, fell to fourth from second on an annual list from the Stockholm International Peace Research Institute as it produces more arms at home.  China received 5 percent of the volume of international transfers of “major conventional weapons” from 2007 to 2011, Sipri said in a report released today. The total was half that of India, which last year overtook China as the world’s largest recipient of arms, and less than South Korea and Pakistan. http://www.bloomberg.com/news/2012-03-18/china-buys-fewer-weapons-as-local-industry-expands-sipri-says.html

Cnbc.com
Bond fund giant PIMCO’s chief executive said he expected Portugal to be the next euro zone country to falter, according to an interview in German weekly Der Spiegel. Asked whether he expected Portugal to have become the next Greece by the end of this year, Mohamed El-Erian told the magazine: “Yes, unfortunately that will be the case”. http://www.cnbc.com/id/46779388

China cannot delay tough economic reforms, Vice Premier Li Keqiang said on Sunday, underscoring the top leadership’s push for market-based change after the sacking last week of an ambitious provincial leader who wanted a bigger state role in the economy. Li, widely expected to succeed Wen Jiabao as premier in a leadership transition that begins later this year, promised flexible policies to keep growth brisk and prices stable, with a focus on boosting domestic demand and pursuing structural reforms to make growth span more stable and balanced. “China has reached a crucial period in changing its economic model and (change) cannot be delayed. Reforms have entered a tough stage,” Li said, echoing comments made by Wen last week. http://www.cnbc.com/id/46777844

Washingtonpost.com
China’s new lower growth target will still allow one measure of its gross domestic product to exceed the euro area in a few years and match the U.S. economy in a decade, Reserve Bank of Australia Governor Glenn Stevens said. “The slowdown in Chinese growth — from 10 percent to a mere 8 percent! — is a major talking point, and some see it as portending a major crash,” Stevens said in the text of a speech to be delivered in Hong Kong today. “But some slowing was required to reduce inflation and, therefore, put growth on a more sustainable path.” Stevens’s confidence in China was underscored by the RBA’s decision to pause interest-rate cuts in the past two months even as Australia’s economy grew at half the pace forecast by economists in the final three months of 2011 and unemployment rose last month for the first time since August. The currency has strengthened this year, propelled by a A$456 billion ($484 billion) pipeline of resource projects by companies such as BHP Billiton Ltd. to meet Chinese demand.http://washpost.bloomberg.com/story?docId=1376-M147UE1A1I4H01-3VHTB4AEJC700HH3OMSQMUO7JK

BBC.co.uk
Property prices in most Chinese cities have fallen for a fifth consecutive month, underpinning government success in curbing speculation in the market. In February, new home prices in 45 out of 70 cities fell compared to the previous month, the National Bureau of Statistics (NBS) said on Sunday.  In January, 48 cities saw prices fall compared to the previous month. Chinese leaders have said prices remain too high and that property controls will remain in place. “Home prices are still far above a reasonable level,” said Chinese Premier Wen Jiabao last week. http://www.bbc.co.uk/news/business-17425352

The internet contributes to 8.3% of the UK economy, a bigger share than for any of the other G20 major countries, a new study suggests. The “internet economy” was worth £121bn in 2010, more than £2,000 per person, researchers at the Boston Consulting Group (BCG) said. That made it bigger than the healthcare, construction or education sectors. The UK also carries out far more retail online than any other major economy. Some 13.5% of all purchases were done over the internet in 2010, according to BCG, and this is projected to rise to 23% by 2016. http://www.bbc.co.uk/news/business-17405016

Telegraph.co.uk
Treasury sources said that the Government will adopt the General Anti-Abuse Rule (GAAR) outlined in a recent report by Graham Aaronson QC. A consultation is expected to be announced in the Budget with an view to bringing in new legislation next year.  Businesses have traditionally been wary of a GAAR because it complicates tax planning. Under a GAAR, companies have to disclose their tax arrangements in advance and schemes can be shut down. Recently, the Treasury raised concerns by closing a loophole retrospectively, costing Barclays more than £100m. Chris Sanger, global head of tax policy at Ernst & Young, said: “Businesses will be closely watching any details to see whether the proposals have the potential to develop and expand beyond Aaronson’s original intent. This remains a delicate area, where the Government needs to be wary of introducing uncertainty that could undermine the UK’s competitiveness.” http://www.telegraph.co.uk/finance/budget/9151912/Budget-2012-Chancellor-George-Osbornes-tax-avoidance-crackdown-will-target-big-business.html

Smh.com.au
Reserve Bank governor Glenn Stevens says the economy is not doing too badly but further restructuring will be needed to boost productivity, something that is outside the scope of monetary policy. Mr Stevens also cautioned that Europe’s debt problems were still a risk to the global economy, but remained upbeat on the outlook for China and the rest of Asia. Speaking to a conference in Hong Kong, Mr Stevens noted that recent Australian data on gross domestic product (GDP) suggested the economy was running more slowly than expected. But other figures, such as business surveys, pointed to growth around the historical trend of 3.25 per cent to 3.5 per cent. http://www.smh.com.au/business/economy-not-doing-too-badly-rba-20120319-1vfay.html#ixzz1pXb0w4Nq

BHP Billiton and Newcrest will be forced to renegotiate their long-standing mining leases under controversial new divestment laws in Indonesia. A senior official in Indonesia’s Department of Mines and Energy has confirmed that all companies without exception, must implement the new policy under which foreigners cannot own more than 49 per  cent of a mining project in the country. But the details of the divestment for projects operating under existing contracts are subject to negotiation. http://www.smh.com.au/business/indonesia-forces-miners-into-new-deals-20120316-1vaj8.html#ixzz1pXb8MGeV

Theglobeandmail.com
Norway’s sovereign wealth fund lost $15-billion (U.S.) last year as equity markets were hit by euro zone debt fears. The $600-billion fund, which invests the Norwegian state’s tax revenues from oil and gas activities abroad, suffered its third-worst result in percentage terms since its inception in 1998, declining 2.5 per cent. Yngve Slyngstad, chief executive officer of Norges Bank Investment Management, which manages the fund, said the steep losses “reflect substantial declines in share prices in 2011 and increased uncertainty about government debt in the euro area.” The fund’s equity investments, which amount to about $360-billion, or 60 per cent of the fund, lost 8.8 per cent over the year. The worst-performing stocks were French bank Société Générale followed by German car maker Daimler and U.K. bank HSBC. http://www.theglobeandmail.com/report-on-business/international-news/european/norways-sovereign-fund-reports-15-billion-loss/article2372030/

Cs.com.cn
Vice-premier sets out targets and goals for further economic growth.  China has entered a crucial stage in reforming the economy and will continue to strive to achieve breakthroughs in key areas, Vice-Premier Li Keqiang said on Sunday. Reforms will be given added bite in critical sectors, including taxes, finance, prices and income distribution, Li said in a speech at the China Development Forum 2012. “China has entered a crucial stage in shifting its economic model and cannot be delayed. Reforms have entered a key stage,” he said. Li said the overall trend of the economy remains positive with sound economic fundamentals, but it must overcome structural barriers and change the “unbalanced, uncoordinated and unsustainable” growth model.http://www.cs.com.cn/english/ei/201203/t20120319_3285732.html

China`s credit market began to thrive as the companies go into operation after the traditional Spring Festival, some market analysts said the new loans in March would be about 800 billion yuan. As China`s economy tends to slowdown, the lenders worry about rise of non-performing loans and be cautious in lending. The new loans would not reach the previous target of 2.4 trillion yuan in the first quarter, analysts said. China`s lenders used to issue more than 1.5 trillion yuan new loans in the first two months since 2009, it seems to be different in this year as the banks reported less new loans in past two months, said analysts. http://www.cs.com.cn/english/ei/201203/t20120319_3285713.html

New home prices stop growing in most of 70 major Chinese cities in February, the National Bureau of Statistics (NBS) said Sunday. In February, 45 cities out of the statistical pool of 70 major cities saw drops in new home prices from January, while new home prices in 21 cities remained unchanged, the NBS said in a statement on its website. Only four cities saw gains in new home prices over the Jan.-Feb. period, the NBS noted. On a year-on-year basis, 27 cities saw new home price declines in February, up from 15 in January. Prices of resold homes ceased growing in 59 cities in February, compared with 65 cities in January. http://www.cs.com.cn/english/ei/201203/t20120319_3285640.html
Thehindu.com
The stock markets have reacted negatively to the budget. The Sensex and the Nifty dropped 209 points and 63 points, respectively, on the budget day. As always the stock market behaviour is sought to be rationalised. Stock market specialists, who have been quoted in the media, have expressed disappointment over the budget proposals essentially on two counts.  One, a general complaint that the Finance Minister has lost a unique opportunity to reverse the economic slowdown and more immediately perk up the investor sentiment, which has been at a low ebb.http://www.thehindu.com/business/article3009701.ece

Union Home Minister P Chidambaram on Sunday said banks in India should aim at a 20 per cent annual growth rate.  “Banks needed to grow faster. They should grow by 20 per cent and officials should take efforts in that direction,” he said, addressing the 75th year celebrations of Indian Overseas Bank.  He also stressed the need for banks to give more employment opportunities and open more branches in the country.  Recalling the growth of IOB, he said the bank founder was a visionary and had opened a branch abroad at a time when no bank even thought of foreign trade. “He had a vision. He was prudent and had foresight,” he said. Mr. Chidambaram said IOB’s business turnover which was just Rs 50 crore in the 1970s when banks were nationalised had now touched Rs 3 lakh crore http://www.thehindu.com/business/Industry/article3009151.ece

Economictimes.com
Australia is the front runner to cash in on India’s growing demand for coking coal, says a research by Reserve Bank of Australia’s economic panel. India is the world’s fourth largest steel producer but relative to the size of its economy the country’s steel consumption is low, said the research, which was done by Markus Hyvonen and Sean Langcake. “As the (Indian) economy develops further, steel consumption is likely to increase. Indian steel makers have plans to expand capacity substantially in order to meet the anticipated increase in demand. http://economictimes.indiatimes.com/news/economy/foreign-trade/australias-coking-coal-export-to-india-likely-to-rise-report/articleshow/12325965.cms

Yonhapnews.co.kr
South Korea’s financial watchdog said Monday that it will conduct stress tests on the country’s financial holding firms in a bid to shield the country from a potential financial crisis. The Financial Supervisory Service (FSS) has been conducting stress tests on players in each financial sector on a quarterly basis, and pressing banks, insurers and securities firms to beef up their foreign currency liquidity and other financial health. Stress tests are usually conducted to measure how well lenders and other players could withstand the worst-case market scenario. Under the newly set guidelines for financial holding firms that go into effect next month, they are required to map out contingency plans and draw up an early warning system for possible financial turmoil. http://english.yonhapnews.co.kr/business/2012/03/19/60/0503000000AEN20120319002000320F.HTML
Khaleejtimes.com
Sweden was the first European country to introduce bank notes in 1661. Now it’s come farther than most on the path toward getting rid of them.  In most Swedish cities, public buses don’t accept cash; tickets are prepaid or purchased with a cell phone text message. A small but growing number of businesses only take cards, and some bank offices — which make money on electronic transactions — have stopped handling cash altogether. “There are towns where it isn’t at all possible anymore to enter a bank and use cash,” complains Curt Persson, chairman of Sweden’s National Pensioners’ Organization. He says that’s a problem for elderly people in rural areas who don’t have credit cards or don’t know how to use them to withdraw cash. http://www.khaleejtimes.com/biz/inside.asp?xfile=/data/finance/2012/March/finance_March16.xml&section=finance