Forex / World news

SINGAPORE (XFN-ASIA) - The international community faces a real risk of "economic chaos" arising from major imbalances in the global financial system, the World Economic Forum on East Asia was told Sunday.Complacency has set in after years of uninterrupted global growth and there is no evidence to suggest a self-correcting mechanism is in place to avert a major shock to the global financial system, delegates to the two-day forum were told...

BRUSSELS (Thomson Financial) - Belgium, Luxembourg, Spain, Greece, Austria, Malta, Hungary, Slovenia and Lithuania have "grave objections" to a published draft treaty for the 27 member state bloc, a source said.The source added that the group of nine all have similar concerns and that one of the key objections was on the stated 'legal personality' of the EU, which was not "strong enough"...

BRUSSELS (Thomson Financial) - Britain has succeeded in securing an opt out clause on the EU charter of fundamental rights, according to a draft version of the treaty to reform the 27 member state bloc.The charter was one of key four "red line" areas on which Britain vowed not to cede national control -- along with foreign policy, social security, justice and police rules...

BRUSSELS (Thomson Financial) - German Chancellor Angela Merkel has proposed to her EU partners to open an intergovernmental conference on a new reform treaty without Polish participation if necessary, her spokesman Ulrich Wilhelm told Agence France-Presse...

BRUSSELS (Thomson Financial) - European Commission president Jose Manuel Barroso said EU leaders have made progress towards striking a deal on a proposed treaty to reform the 27-member-state bloc's institutions, and are working towards an accord.Barroso told reporters: "We are working towards a solution...

BRUSSELS (Thomson Financial) - Poland has dismissed a French proposal aimed at overcoming its objections to a new EU voting system, which are blocking agreement on a new reform treaty for the 27-member bloc.A Polish diplomat dismissed as just a "slogan" the proposal presented by French president Nicolas Sarkozy that would enable a small group of EU member states to block certain decisions adopted under the new system...

ZAGREB (Thomson Financial) - Russian President Vladimir Putin will attend an energy summit in Zagreb on Sunday organised by Croatian President Stipe Mesic, for the Balkan countries to discuss their current problems with energy supplies, the organisers said...

BRUSSELS (Thomson Financial) - German chancellor Angela Merkel is battling to end the impasse over reforms to the EU's outmoded institutions as leaders resumed their second day of wrangling over a treaty to replace the ill-fated European constitution...

HONG KONG (XFN-ASIA) - The European Union said it supports a swift transition to full democracy in Hong Kong, while it expressed concerns about the territory's copyright policy.In an annual report on the city, the EU said it saw democracy as "the best means of creating legitimate, stable, accountable and transparent government, protecting rights and freedoms, and upholding the rule of law...

TOKYO (XFN-ASIA) - Japan's parliament has set key elections for July 29, a week later than initially planned as beleaguered Prime Minister Shinzo Abe pushes through legislation.The ruling coalition voted to extend the parliamentary session by 12 days to pass a series of controversial bills, as a result pushing back the election by a week from July 22...

BRUSSELS (Thomson Financial) - EU leaders are battling to reach an agreement on a treaty that reforms Europe's outmoded institutions, with Poland and the UK threatening to block a deal.European Commission president Jose Manuel Barroso expressed cautious optimism that EU leaders will reach agreement at their two-day summit here...

BRUSSELS (Thomson Financial) - Danish Prime Minister Anders Fogh Rasmussen criticised as "absurd" Poland's linkage of EU voting rights to the country's fatalities in World War 2.Speaking at a news conference of European liberal party leaders ahead of the EU summit starting here later today, Rasmussen said the compromise on voting rights presented by the German presidency is "acceptable"...

MEISE, Belgium (Thomson Financial) - German chancellor Angela Merkel, whose country holds the EU presidency, urged her fellow European leaders to work together for a "fair agreement" on a treaty to reform the bloc's institutions.Ahead of an EU summit opening later in the day, Merkel said everyone "can contribute their ideas" but an agreement is necessary...

LONDON (Thomson Financial) - The global economy may be fast changing but for a worrying number of Western directors an appalling ignorance still reigns, going by the results of a British Telecom survey released today.More than five out of 10 directors could not name the currency of India, the rupee; nine did not know that the real is the Brazilian monetary unit and 14 pct believed vodka, rather than oil, is Russia's main product...

WASHINGTON (Thomson Financial) - US Treasury Secretary Henry Paulson has signalled opposition for legislation aimed at China's currency stance, stating his preference for a more diplomatic course.In a briefing with reporters, Paulson said the US is working aggressively with China bilaterally in the Strategic Economic Dialogue, and in a wider perspective through the IMF, which this week set out new guidelines for handling undervalued currencies...

WASHINGTON (Thomson Financial) - The US housing market correction is "at or near the bottom" but the fallout from problems in the subprime mortgage market will likely continue, Treasury Secretary Henry Paulson said.Paulson said losses related to foreclosures in the subprime market were to be expected in light of the "major" housing correction the US has gone through...

LONDON (Thomson Financial) - The UK Treasury today said it plans to structurally reform the tax system on foreign profits of UK companies.The reforms are aimed at modernising and creating a more straightforward regime in order to achieve a balanced, broadly revenue-neutral package that meets the needs of both business and the government...

BRUSSELS (Thomson Financial) - EU leaders will struggle, at their summit starting here tonight, to reach agreement on a new European treaty in the face of vehement opposition from Poland to a proposed new voting system for the bloc, sources said.The three other countries with reservations about the replacement for the EU's ill-fated constitution -- the UK, the Netherlands and the Czech Republic --are expected to drop their objections to various aspects of the treaty...

LONDON (Thomson Financial) - Prime minister in waiting Gordon Brown today took a business friendly approach and stressed the importance of education as he approached the end of his long career as the holder of the nation's purse strings.Praising the the City of London for its success, he told businessmen he will keep his ears open to what businesses have to say...

BRUSSELS (Thomson Financial) - Poland is sticking to its opposition to a planned new EU voting system under proposals for a new European treaty aimed at streamlining the enlarged bloc's decision-making, sources for the EU's German presidency said."I didn't really notice that much accommodation or movement on their part," one source said...