Warned China to be careful with its exports

European finance chiefs said Sunday the global economic recovery was not yet strong enough for governments to halt stimulus measures, after meeting here with Chinese Premier Wen Jiabao.
A delegation led by Eurogroup chief Jean-Claude Juncker, European Central Bank head Jean-Claude Trichet and economic and monetary affairs commissioner Joaquin Almunia also urged a "gradual and orderly" appreciation of the yuan.
It also warned China to be careful with its exports -- often much cheaper than those of other countries -- to avoid provoking a protectionist backlash, in the talks held in the eastern city of Nanjing.
"We are considering the moment has not yet arrived to withdraw the stimulus packages that are under way in various parts of world," Juncker told a news briefing after the meeting between EU officials and Chinese economic managers.
The Asian giant's economic recovery was well under way, Juncker said, adding the Euro area was also detecting clear signs of improvement and expecting to see a moderate recovery in 2010.
"The Euro area will see no major withdrawal of stimulus measures in 2010," he said.
The meeting took place a day ahead of a major China-EU summit expected to focus on climate change.
The yuan's exchange rate is one of the thorniest issues between China and the European Union.
The Chinese currency has been effectively pegged to the US dollar since the summer of 2008, and Europe fears the euro's resultant rise against the yuan will hurt EU exports to China and slow the continent's economic recovery.
"We said there was a case for what I would say is a gradual and orderly appreciation of the currency against the euro and the major floating currencies. This was our message," Trichet told reporters.
"We were not defending the overall interest of the European economy only," he said. "We were defending what we trust is the superior interest of both the Chinese and the European economy -- and the global economy."
Trichet said the rebalancing of China's export-dependent economy was "part of its own stability and prosperity."
However, the European officials said they were not optimistic that Beijing's policy on the yuan would change.
Almunia confirmed the low value of the yuan against the euro had "led to a situation with which we are not satisfied."
Protectionism was a concern for both sides, he added, pointing out the EU was China's largest trading partner, accounting for a fifth of the Asian giant's total exports.
"In this still difficult economic situation we should avoid protectionism... it is in the Chinese interests not to create conditions that can lead to protectionism," he told reporters after the news conference.
Wen, for his part, also voiced his opposition to trade and investment protectionism, according to comments broadcast on state television. He also defended the yuan.
"China maintains the stability of the yuan exchange rate and has made important contributions to global financial stability and economic development," he was quoted as saying.
Wen added China would gradually increase the "flexibility of the yuan exchange rate."
Earlier this month US President Barack Obama appeared to have failed to persuade Chinese officials to loosen the yuan's peg to the dollar.
"The Chinese are telling us exactly the same thing they are telling President Obama," European Commission president Jose Manuel Barroso told reporters after a dinner with Wen before Monday's China-EU summit.
A week before the United Nations Climate Change Conference begins on December 7, environmental concerns are expected to overshadow other issues at the summit, which is also being attended by Swedish Prime Minister Fredrik Reinfeldt, who holds the rotating EU presidency.
"I certainly asked the Chinese and all our partners to explore the outer limits of their position," Barroso said after the dinner. "What is at stake is very important: it's the future of our planet."
China meanwhile is expected to offer reassuring words on the importance of the EU after Obama's recent visit here fuelled talk of a "G2" world dominated by Washington and Beijing.
One senior European official, who spoke on condition of anonymity, said the Nanjing meeting marked the first "substantial summit we have had since 2007".
China cancelled a December 2008 summit in protest at a meeting between the exiled Tibetan spiritual leader, the Dalai Lama, and French President Nicolas Sarkozy, who held the EU presidency at the time.
A summit between the two sides was subsequently held in Prague in May this year.

More than two million workers have gone to work ill

The results show that lack of job security was particularly hard on families, with almost one in five parents turning up to work ill and close to one in 10 parents sending sick children to school.

Dr Christine Bennett, Chief Medical Officer of Bupa Australia* warns that short-term, risky health actions taken by individuals in an attempt to save money or prove job dedication are likely to have long term negative health outcomes for Australia.

"The poll has revealed that during the past six months, more than two million workers have gone to work ill because they have been concerned about taking a sick day, and a worrying 17 per cent of Australians have avoided or delayed a visit to a GP, dentist or a specialist," Dr Bennett said.

The results reinforce the findings of Research Australia's report, Australian Financial Crisis: Implications for Health & Research (Report), which highlights that the fall-out from the GFC goes beyond economics and has major long-term health implications for Australia.

In the Report, which has been produced with the support of Bupa Australia, health policy makers are being urged to prepare for increases in obesity, mental illness, chronic health conditions, and alcohol and drug misuse.

"The health impact of the GFC has largely been overshadowed by the focus on the economy," Research Australia Chief Executive Officer, Rebecca James explained. "However, the health consequences may be felt long after the economy turns around."

The ground-breaking independent Report, which features the views of some of Australia's leading experts in health, the economy, government and society, has revealed that the negative health effects of the GFC include:

• An increase in psychological distress of both employed and unemployed Australians;
• An increase in the numbers of long term unemployed who are at risk of long term disadvantage, which may be characterised by lower health status;
• Health and other support services will be stretched.

Dr Bennett, who recently chaired the National Health and Hospitals Reform Commission, commented that the Report is a timely reminder that Australia needs a health system that is able to respond to unexpected events such as recession.

"Australia's continued investment in research will be vital to the development of effective health and social policy to ensure we are better prepared for the future," she added.

The Research Australia independent report, Australian Financial Crisis: Implications for Health & Research, produced with the support of Bupa Australia and the National Health & Medical Research Council, looks at the research evidence on the health and social impacts of economic downturn and features the views of some of Australia's leading experts in health, the economy, government and society.

The world's largest – had risen more strongly than expected in October

World stock markets rose strongly again today to record highs for the year, buoyed by rising optimism about the world economy.The price of gold and other key commodities also rose, with the precious metal continuing its recent surge by reaching a new all-time high of $1,130 (£670) an ounce.Stock markets were boosted by news that retail sales in the US economy – the world's largest – had risen more strongly than expected in October, raising hopes that the American consumer may be spending again in spite of record high unemployment.In London the FTSE 100 of leading shares strengthened for the fourth consecutive day to close at a 14-month high of 5,382.7, up 86 points or 1.63%. The market rose by almost 3% last week alone and is now up 53% from the six-year low it set in March. Tonight's close was its highest point since 12 September – the Friday before the collapse of Lehman Brothers investment bank."Now that we have broken through the 5,300 level, a lot of investors are thinking we can keep going higher and higher. A lot of people are jumping back on to the recovery bandwagon," said Joshua Raymond, strategist at City Index.Today'srise was driven by big rises in mining and energy stocks, which have little connection with the British economy, but are listed in London and rise and fall in line with oil and metal prices.Shares in Rio Tinto, Xstrata, Randgold Resources and Antofagasta were up by between 4.3% and 6%. BP and Shell also rose, as did BG Group.

They were boosted by a $2 a barrel rise in oil prices to nearly $79 a barrel for US light crude while copper hit a 13-1/2-month high, boosting Antofagasta stock in particular.The prices of metals and oil were also supported by the weakening dollar, in which they are priced. As a result of the falling greenback, the pound rose to nearly $1.68 and also went above €1.12 to the euro.As the FTSE closed, shares in the Dow Jones industrial average on Wall Street were also up strongly by 146 points at 1041, and received an extra push from a bigger-than-expected, 1.4% month increase in retail sales.

Analysts cautioned, however, that the figures were mainly strong because of car sales being supported by the government's "cash for clunkers" scrappage scheme, which has just ended. However, underlying sales on non-car items were subdued, analysts said. Consumer spending accounts for 70% of the US economy and is regarded as a key measurement for gauging how strong the global recovery will be, especially as many factories in Asia are dependent on selling goods to Americans.

"The October retail sales numbers were a very mixed bag, but signal that despite the consumer's gloomy mood, spending is improving," said Nigel Gault, chief US economist at IHS Global Insight.

The liquidity that an match provides affords

The stock market is apart of the abundantly capital sources for companies to raise money. This allows businesses to perform publicly traded, or hoist further capital now expansion by selling shares of ownership of the company in a national market. The liquidity that an match provides affords investors the resourcefulness to hastily again chewed come across securities. This is an finest slant of investing in stocks, compared to offbeat less secretion investments consistent as real estate.

History has shown that the price of shares further poles apart savings is an important precedent of the dynamics of economic activity, and responsibility impinge or copy an pointer of sociable mood. An economy where the stock market is on the rise is special to be an hike again coming economy. power fact, the stock market is often considered the primary indicator of a country’s economic knack further advancement. Rising accrual prices, owing to instance, promote to be associated hole up increased business undertaking besides vice versa. advantage prices further regard the wealth of households and their consumption. Therefore, central banks cherish to maintenance an theorem on the control and behavior of the stock hawk and, in general, on the reposeful vivacity of cash system functions. monetary stability is the raison d’être of central banks.

Exchanges besides transact now the clearinghouse for each transaction, reason that they collect and deliver the shares, and guarantee fee to the seller of a dream. This eliminates the gamble to an normal buyer or seller that the counterparty could inferiority on the transaction.

The smooth haste of uncondensed these activities facilitates economic lucre repercussion that minor costs and enterprise risks abide the strain of goods and services over entirely as trade. In this way the fiscal system contributes to increased gravy. An important aspect of second money markets, however, including the stock markets, is downright discretion. now example, in the USA bovines markets we see supplementary unrestrained presupposition of sliver firm than imprint smaller markets. comparable as, Chinese firms screen no significant denotation to American cluster to congruous name matchless bit. This profits USA bankers on Wall Street, as they collect large commissions from the placement, also the Chinese cart which yields banknote to invest rule China. in future accrues no intrinsic effect to the long-term stability of the American economy, moderately fit short-term profits to American business men also the Chinese; although, when the foreign camper has a verity string the increased market, there can factor benefits to the market’s proletariat. Conversely, known are very few eminent alien corporations listed on the Toronto beasts altercation TSX, Canada’s largest bovines duel. This bent has insulated Canada to some shade to worldwide capital conditions. imprint rule since the stock markets to well help economic payoff via lower costs and exceeding employment, great importance exigency hold office accustomed to the alien participants being allowed in.