PRC import price agreed
The European Commission said yesterday it had agreed a deal with Beijing to resolve a dispute over alleged Chinese dumping of solar panels in Europe, agreeing a minimum price for China’s imports. The deal to resolve the biggest trade dispute between China and the European Union will avoid punitive tariffs from August on Chinese solar imports into Europe that were worth 21 billion euros (US$27 billion) last year.
US CENTRAL BANK
End to bond-buying in sight
The US central bank should stop its bond-buying quickly and an end to the program was “in sight,” a senior Federal Reserve official said in an interview with a German magazine on Saturday. Richmond Fed President Jeffrey Lacker, one of the Fed’s most fiscally conservative officials, said he expected ending the process to be successful, according to WirtschaftsWoche.
Lacker pointed to relatively low inflation and said a faster-than-expected fall in the US jobless rate was sufficient to start winding down the purchasing program.
BANK OF ENGLAND
Deputy governor named
The Bank of England says the Treasury veteran and UK diplomat to Europe Jon Cunliffe will succeed Paul Tucker as deputy to new governor Mark Carney. Tucker announced in June he would be stepping down after more than 30 years with the central bank. The Bank of England said that Cunliffe — who held senior roles at the Treasury from 2000 to 2007 — will assume his role in November. Cunlifffe was appointed the UK’s permanent representative to the European Union last January.
No more commodities
JPMorgan Chase & Co said it plans to get out of the business of owning and trading physical commodities ranging from metals to oil, three days after a US Senate panel questioned whether banks are abusing their ownership of raw materials to manipulate markets. The announcement also comes as JPMorgan negotiates a settlement with the Federal Energy Regulatory Commission that may include a US$400 million fine and other penalties, according to a person familiar with the negotiations. JPMorgan could sell or spin off holdings that include warehouses, stakes in power plants and traders in materials such as gas, power and coal. The company estimated the value of its physical commodities at US$14.3 billion as of March 31, a company filing shows.
Vivendi sells major stake
Vivendi SA is selling most of its majority stake in Activision Blizzard Inc for US$8.2 billion, giving the video game company back its independence as the French conglomerate tries to strengthen its balance sheet. Vivendi said that 429 million of its shares will be sold to Activision itself for US$5.83 billion, or US$13.60 per share. Another 172 million shares will be sold for US$2.34 billion to a consortium of investors including Activision CEO Bobby Kotick and Co-chairman Brian Kelly, who are contributing US$100 million each. Activision makes games such as “World of Warcraft” and the wildly popular “Call of Duty” series.