2012年10月4日 星期四

Latest News Clips 2012.10.04



1.      Top China Leader Faces Trial
Once-Powerful Bo Xilai Faces Broad Criminal Accusations; Expelled From Party
The Wall Street Journal             September 28, 2012
         
The Chinese Communist Party expelled former high-flying official Bo Xilai, according to state-run media on Friday. Jeremy Page has details on The News Hub. Photo: Bloomberg.

BEIJING—China's leadership expelled former highflying official Bo Xilai from the Communist Party and launched criminal proceedings against him, citing a litany of wrongdoing over 30 years, including taking huge bribes, abusing his power during a murder investigation against his wife and engaging in improper sexual relations with several women.

The moves suggest China's leadership is trying to send a strong message to the public that it will tackle the issues at the heart of the Bo scandal—corruption, abuse of power, and the decadent lives led by some members of the party elite. That represents an acknowledgment that growing public anger over those issues constitutes a grave threat to the party's future grip on power.

Machine, Not Man, in Chinese Politics
The decision by the party's Politburo, announced by the state-run Xinhua news agency, came as the world's second largest economy wrestles with a host of knotty problems—an economic slowdown, a sovereignty fight with Japan over some islands, and a pending once-a-decade leadership shuffle that the Bo scandal had thrown into turmoil.

There is also the issue of lingering support among the public for Mr. Bo and the populist style of government he pursued as party leader in Chongqing. There, he presided over a Maoist revival movement and heavy state spending on infrastructure and social programs. By accusing Mr. Bo of extensive wrongdoing, over his entire career, the party appears to be determined to crush that support.

2.      ‘Investment is a key priority for Russian economic growth’
                              
 2 October, 2012

Focusing on investment rather than on borrowing or boosting oil revenues would be key in securing economic growth during the global crisis, according to Russia’s President and the country’s top economist.

“In case of significant environmental changes in 2013 we already provide anti-crisis measures,” Russian President Vladimir Putin said during his speech during the VTB capital Investment Forum “Russia Calling!” 

“However, we believe that encouraging economic growth, business activity, trade and investments is a pledge to further stability,” Putin said, stressing that Russia’s accession to the World Trading Organization would help it to attract investment. “We suppose that this step would positively affect investor sentiment and clear the way to prospective projects”.

Russian authorities have pledged to attract foreign investors, and boost the Russian Direct Investment Fund, which was created last year. Putin said the government should provide about 62 billion roubles ($2 billion) to the Fund this year. "Last year we invested 62 billion, this year we will again, and we will study this possibility for next year, » Putin said. He acknowledged that this money is not in the 2013 budget yet, but it "absolutely has to be done."

The diversification of economy is another top priority for Russian government in fighting the global crisis. “Dependency on the oil prices should decrease,” Putin pledged. “Our target is to cut non oil budget deficit from 8.5 % in 2012 to 5.5% in 2015%”. 

However, Russian politicians haven’t ruled out raising capital for the budget and for companies through borrowing on the international markets. Anton Siluanov, Russian Finance Minister, says that in the wake of the global turmoil, reliability and safety comes as a priority in Russia’s financial strategy.

“Currently we are investing into highly reliable but low return assets. We borrow at 4-5% in international markets and place at 1-2%,” where the difference comes as a risk premium, Siluanov said. “Logics here is that we hedge risks this way. If a crisis strikes, if the oil prices falls sharply, the cost of lending will go up to 7-8%. So it’s better to borrow now,” he explained.

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