Standard Chartered was accused of “money laundering” of $ 250 billion, the Philippines closed the stock market because of floods, China’s economic slowdown … were the financial highlights of the week.

1. Standard Chartered accused of “laundering” $250 billion

The New York Department of Financial Conduct accused Standard Chartered of making $250 million from conducting transactions on behalf of Iranian financial institutions that are subject to US sanctions. Standard Chartered was threatened with revocation of its license to operate in New York and would have to hire an independent organization to manage its US operations.

24 hours after the allegation, Standard Chartered Plc’s stock price dropped at a record rate of 23% and market value lost 20%.

Up to now Standard Chartered has consistently denied the alleged illegality, asserting that 99.9% of transactions with its Iranian counterparty are in accordance with the law and the total value of these transactions. no more than $14 million – which is below what the US government is allowed to sanction. In addition, Standard Chartered also emphasized that it has stopped developing transactions with Iranian customers over the past 5 years. The process of proving the innocence of Standard Chartered is still ongoing.

2. China’s economy continues to send bad signals

The consumer price index in China in July 2012 increased by 1.8% after increasing by 2.2% in June 2012. This is the lowest level in the past 30 months.

China’s exports also increased by only 1% year-on-year, the lowest increase in 6 months and less than a tenth of the growth in June. Similarly, July imports increased by only 4.7%. compared with the same period last year, while this increase 1 month ago was 6.3%. In general, in July, China had a trade surplus of 25.1 billion USD, lower than in June.

Thus, China – the world’s most important and powerful growth engine is showing a decline in performance in all aspects, from GDP growth, inflation to import and export, trade surplus.

3. Italy’s economy shrank for four consecutive quarters

Newly released Italian government statistics show that the country’s economy is sliding deeper into recession, when the economy grew negative in the second quarter of this year and also the fourth consecutive quarter of decline.

Economic growth in the second quarter decreased by 0.7% compared to the first quarter, and compared with the same period in 2011, the Italian economy decreased by 2.5%. This was the country’s worst economic performance since the fourth quarter of 2009.

Meanwhile, members of the Italian Parliament on August 7 approved for the last time a plan to cut public spending worth 26 billion euros (about 32 billion USD) over three years, and cut 10% of the public workforce. employees in the public sector.

4. World stocks hit 3-month highs after Merkel’s surprise move

Merkel’s spokesman said on August 7 that the German government supported the bond-buying plan announced by the ECB last week. This move was surprised by both investors and analysts because Germany is considered the biggest obstacle to President Mario Draghi’s plan to save Italy and Spain.

Receiving this positive news, global stocks were in green for many consecutive sessions and most of the major indexes achieved their highest points within the last 3 months.

5. Philippines closes stock market because of floods

Downpours from a tropical storm have battered the Philippine capital for days, disrupting traffic in Manila, causing widespread severe flooding, the stock market, government agencies, and schools. in the capital and some neighboring provinces on the main island had to close for work on August 7.

Related Posts