Yingli Green Energy secures RMB 1.16 bln of bank loan

Yingli Green Energy Holding Co LtdYGE, a vertically integrated photovoltaic product manufacturer in China, on Jun. 2 said it has secured a RMB 1.16 billion worth of bank loan from China CITIC Bank Corp6019980998 and Bank of China (BOC)6019883988, the

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Tough new bank rules to stabilise money rates

A further step in China’s banking reforms to manage loan-to-deposit ratios on a daily basis may push banks to balance lending more evenly and help stabilise money market liquidity and rates in the long run.

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Congress Warned That Public Transit Cuts Would Hurt U.S. Economy

Washington, D.C., United States (AHN) – Public transportation advocates said at a Senate Banking Committee Thursday that if transit agencies lose federal funding, the entire nation would suffer.

Sen. Tim Johnson (D-S.D.) chairman of the Banking Committee, said, “It is sometimes forgotten but reliable and accessible public transit is vital in rural areas like South Dakota, just as it is vital in large urban cities.”

Public transportation funding is among budget items members of Congress are considering reducing as they try to cut the $14 trillion federal deficit.

However, fewer bus, subway and passenger rail trips will mean more roadway congestion, transit advocates say.

“Our public transit systems connect workers with employers, keep cars off congested roads, reduce our dependence on foreign oil and get people where they’re going safely and affordably,” Johnson said.

Republicans, such as Sen. Richard Shelby of Alabama, say the federal government should subsidize local transit agencies only if they match the funds and agree to keep their systems in a state of good repair.

The Obama administration seeks to increase operating assistance to transit agencies. Operating assistance refers mostly to salaries for workers, but also recurring expenses like electricity.

“There’s no point in using federal dollars to buy brand spanking new buses for transit systems if they can’t afford to pay the drivers to put those buses into service,” Federal Transit Administration chief Peter M. Rogoff told the Banking Committee.

JayEtta Hecker, transportation advocacy director for the Bipartisan Policy Center, said public transportation will get the funding it needs only if Congress can be assured taxpayers are getting a good deal.

“We are not going to get consensus for the kinds of [revenue] increases that are required in transportation until we rebuild the credibility of the program,” she said. “A clearer set of performance objectives, clearer outcomes, clearer recognition that we’re getting value for our money.”

The Bipartisan Policy Center is a foundation that promotes policies supported by both Republicans and Democrats.

Other warnings about big cuts in public transportation came from a study released this week by the Urban Land Institute, a public policy group.

It concluded that the United States would fall behind other countries economically if transit spending is drastically reduced.

Outside of the United States, “in most of the developed world and in many emerging markets, countries have committed to fulfilling infrastructure agendas as essential for sustaining or enhancing living standards in an increasingly competitive global marketplace,” says the report.

One example mentioned in the report came from the United Kingdom, which is spending $326 billion over the next five years to stimulate its economy by investing in passenger rail, broadband access and energy production.

China is on schedule to complete 10,000 miles of high-speed rail lines by 2020, the report said.

Meanwhile, major U.S. cities like Boston, Chicago, Philadelphia and San Francisco are reducing transit service, raising fares and delaying new projects as they divert transportation funding to other priorities, the Urban Land Institute reported.

Additional budget cuts are likely for defense spending, federal employees’ pensions, student loan subsidies and farm payments, according to members of the Obama administration.

Defense Secretary Robert Gates this week described how the Pentagon is trying to figure out which weapons systems can be reduced without risking national defense.

President Obama announced a 12-year deficit reduction plan earlier this year that seeks to save $400 billion.

The Pentagon’s review of its own budget includes ways to find management efficiencies that might reduce the size of the armed forces, Gates said.

In addition, the Obama administration is doing a “serious examination” of policies that “drive dramatic” increases in health care, retirement and infrastructure, he said.

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China says to double land for low cost housing

Workers walk past a public housing project in Beijing, China, on Wednesday. The Chinese Ministry of Land and Resources plans to provide 774 mililon square meters of land for government-subsidised …

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NBS explaines 111 yuan housing data

/enpproperty–> BEIJING — China’s top statistics agency, the National Bureau of Statistics (NBS), offered an explanation on Thursday for a residential housing figure that confused the …

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Stocks, Commodities Retreat as China Curbs Lending; Cisco Sinks

Stocks fell for a second day and commodities extended declines as investors scaled back bets on economic growth and China restrained bank lending. Technology shares helped lead losses in U.S. equities after Cisco Systems Inc.’s profit forecast trailed analyst estimates.

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China struggling to cool inflation

Beijing, China (AHN) – Tightening measures by Beijing have helped to ease China’s inflation rate but not to contain it and officials warn that inflation now is spreading beyond food prices.

China’s central bank has increased interest rates by a quarter-point every two months. That resulted in slowing down inflation in consumer prices, but it did not contain the increases.

Rising prices for food, fuel and housing were all identified as serious problems causing the economy to overheat and result in double-digit inflation rates.

On the other hand, rising wages have helped to fuel consumer demand for those items.

China’s 11.2 percent annual inflation rate is down from 11.7 percent last month.

For now, observers expect the central bank to continue to raise interest rates and allow the yuan to appreciate in value against the dollar. That would result in lowering prices Chinese consumers pay for imported items such as fuel and food.

However, Chinese government officials have been opposed to allowing the yuan to appreciate because doing so would increase the prices of China’s exports to other countries.

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China Natural Gas Inc (CHNG) Upgraded by Zacks Investment Research to “Neutral”

Equities research analysts at Zacks Investment Research upgraded shares of China Natural Gas Inc (NASDAQ: CHNG) from an “underperform” rating to a “neutral” rating in a research note to investors on Monday. Shares of China Natural Gas Inc traded down 1.41% during mid-day trading on Monday, hitting $5.6099. The stock’s 50-day moving average is $5.58 [...]

This article ( China Natural Gas Inc (CHNG) Upgraded by Zacks Investment Research to “Neutral” ) was originally developed by and is property of American Banking News . Checkout American Banking News for up-to-date banking news and peer to peer lending news.

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International criticism rises over uncontrolled U.S. debt

Washington, D.C., United States (AHN) – Concern and criticism are rising from abroad as difficulties of the U.S. government in controlling its debt threaten international markets.

So far this week, the Russian prime minister accused U.S. economic planners of “hooliganism” and the chief economist for the International Monetary Fund criticized Congress for lacking a “credible” plan for escaping more than $14 trillion in debt.

On Tuesday, China urged the U.S. government to take “responsible” steps to control its debt. China owns more U.S. debt than any other country.

On Monday, the credit rating service Standard & Poors downgraded the U.S. government’s credit from stable to negative.

Meanwhile, Republicans and Democrats are fighting over whether to raise the nation’s debt ceiling.

The debt ceiling refers to the highest amount of debt the U.S. government can assume under the law.

At the current rate, the U.S. government will reach its $14.3 trillion debt ceiling on May 16, according to the U.S. Treasury.

Republican leaders said again Thursday they will agree to raise the debt ceiling only if they get guarantees of drastic spending cuts for the federal budget.

Democrats are reluctant to make cuts to programs such as Medicare and Social Security, which they say are vital to many households.

The unresolved dispute prompted International Monetary Fund Chief Economist Olivier Blanchard to tell the French magazine Le Monde, “There are reasons to be worried.”

“The United States lacks a credible plan, for the medium term, to reduce its budget deficit,” Blanchard said in the magazine interview.

“The ideological gap is huge between Democrats and Republicans on how to deal with the problem,” Blanchard said.

An International Monetary Fund report last week said U.S. debt could reach 100 percent of its gross domestic product by 2015 without drastic budget cutbacks.

Even harsher criticism came from Russian Prime Minister Vladimir Putin, who said during his annual address to parliament that “everything is not so good for our friends in the States.”

The U.S. economy is teetering as a result of a huge trade imbalance between imports and exports and growing annual budget deficits, he said.

Russia does not “have the luxury for such hooliganism,” Putin said.

He also accused the United States of flooding international markets with cash that lacks value because of the high debt.

The Treasury Department is buying back $600 billion in government securities in an effort to pump up the value of the dollar.

Mexican economists say the U.S. government’s inability to control its debt will result in increased cash flow into Mexico, an appreciation in the value of the peso, volatility in its stock market and higher unemployment.

Mexico’s economic trends are closely tied to the U.S. economy.

Gabriel Perez del Peral, an American University economist, said an increased value for the peso would slow Mexico’s exports.

“The change in perspective for U.S. debt will generate a greater appreciation of currencies for emerging markets and will complicate unemployment,” Perez told the Mexican news media.

He urged the Bank of Mexico to adopt cautious policies to protect the value of the country’s currency.

“The peso’s appreciation will generate greater unemployment and the economy will overheat, which will increase commodity prices,” Perez said.

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Obama takes his fiscal agenda live to American voters using Facebook

Washington, D.C., United States (AHN) – Millions of users hooked to the virtual world on Wednesday got a taste of incumbent U.S. President Barack Obama’s upcoming campaign for 2012 presidential elections as he was hosted by Facebook CEO Mark Zuckerberg live on the White House’s Facebook page.

Calling the ongoing economic recovery fragile, President Obama cautioned, “We could slip back into a recession,” in the absence of a serious plan to handle the deficit.

“The Republican budget put forward is fairly radical, but I would not call it courageous,” said Obama.

With Zuckerberg wearing a jacket and tie instead of his customary hoodie, President Obama told his audience at Facebook’s headquarters, “My name is Barack Obama and I’m the first guy to get Mark Zuckerberg to wear a jacket and tie.”

There was a thunderous applause as Obama called for “high-skilled immigrants” to stay, saying, “They are job generators. We don’t want them starting an Intel in China or France. We want them starting companies here.”

“Our education system has to do a better job of math and science education for women, blacks and Hispanics,” he said, adding, “I want people to think of the next big Internet breakthrough as the next moon launch.”

Obama used his oratory skills and tuned his answers for the technology-savvy youngsters asking them not to “get frustrated and cynical about our democracy.”

“If you don’t give the system a push, it’s just not going to change and you’re going to be the ones who suffer the consequences,” Obama warned the young Americans.

Without announcing the events at the Facebook and an earlier one in Virginia, as official campaign calls, Obama stayed focussed on the election subjects of economy and deficit reduction talks. He’s also scheduled to appear Thursday at a town-hall meeting in Reno, Nevada.

Although Democrat Obama and Republican Congress agree on need for significant fiscal reforms, Obama’s deficit reduction plan, is diametrically opposite to proposals floated by congressional Republicans. The former has vowed to keep Medicare and Medicaid alive and healthy while the opposition is striving to dilute these health-care programs.

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China’s Record Bank Lending May Spur Fitch Rating Downgrade

China’s debt rating may be cut for the first time in 12 years after a record jump in lending added to risks that bad loans will overwhelm banks in the world’s fastest-growing major economy.

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Vanke to build govt-subsidized homes

A booth of China Vanke Co Ltd at a property expo in Beijing. The company on Monday signed a deal with the department of housing and urban-rural development of Hebei province to build between 6,000 …

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U.K. PM Cameron faces criticism for tripling education aid to Pakistan

Islamabad, Pakistan (AHN) – British Prime Minister David Cameron, who is on an official visit to Islamabad, has offered $978 million in education aid to Pakistan – a move for which he faced criticism from Conservative MPs at home amid fears that the South Asian nation could waste some of this aid.

Cameron added that Britain would provide an additional $81 billion in aid over the next four years. The aid will help nearly four million Pakistani children to attend school for the first time in their life, while Pakistan becomes the only recipient to receive such generous aid from Britain.

In recent years, Pakistan had spent 15 percent of its annual budget on defense and hardly 2 percent on education. Moreover, Islamabad is already negotiating for six submarines and a fighter aircraft with China at an estimated cost of more than $2 billion.

Talking to reporters after announcing the aid, Cameron said that providing education support to Pakistan was in British interest, as he considered poor schooling and illiteracy the main causes of Islamic terrorism and extremism. However, he admitted that opponents of this aid offer were not wrong to criticize it since Pakistani corruption could prevent some of British aid payments to reach its intended destination.

“The British people want to know every penny we do spend is going to the right places,” Cameron said at a university in Islamabad. “I need to convince them that it is. But my job is made more difficult when people in Britain look at Pakistan, a country that receives millions of pounds of our aid money, and see weakness in terms of government capacity and waste.”

The British leader, hence, urged Pakistani government to tighten its tax rules so that more people pay tax. Although there is no formal extradition treaty between Pakistan and Britain, Cameron, during his one-day visit, assured the South Asian government that London could extradite former President Pervez Musharraf, if Islamabad would pursue his case legally. His comments in the wake of an arrest warrant issued against Musharraf in ex-PM Benazir Bhutto’s assassination case.

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Moody’s affirms “stable” view on China banks

HONG KONG (MarketWatch) — Moody’s Investors Services said Monday it has kept its stable rating on the Chinese banking system, but cited mounting challenges. The credit-rating firm said Chinese banks are under pressure to restrain credit growth such that inflationary pressures are held in check while simultaneously accommodating the government’s 7% to 8% GDP-growth target for each of the four years through 2015. Moody’s said non-performing loans will likely rise, but the cost will be offset by robust earnings, a draw down on loan-loss reserves, and capital raisings. Moody’s said inflationary risks have increased, which could sooner or later could lead to higher interest rates. “Such a development is in turn likely to contribute to a rise in NPLs, reversing the declining trend of the past decade,” Moody’s said in the annually through the four-year period through 2015.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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China: Another Increase For Banks

China has again raised its banks’ reserve asset ratios to try and rein in bank lending, liquidity and inflation.The move, which came Friday, was a surprise as many commentators in Beijing and Hong Kong had thought would be put on hold after the terrible events in Japan last week.The hike, the third this year and the ninth since the beginning of last year, won’t be the last according to t.

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