China could end its near two-year currency peg on the dollar as soon as next month, according to respected economist Professor Nouriel Roubini.
Prof Roubini - known as "Dr Doom" due to his pessimistic take on the global economic outlook - believes the Chinese central bank could let the yuan appreciate as soon as the second quarter, the Telegraph reports.
Prof Roubini believes the Beijing government will authorise a 2% increase against the dollar initially, followed by a further 1%-2% strengthening over the next 12 months.
"They will move by a token amount. The world is much cloudier in every dimension. They are super cautious," Prof Roubini says.
If Beijing were to allow the yuan to rise against the dollar, it would be the first time since July 2008 the Chinese currency - which rose 21% in the three years prior to the hold being imposed - has been allowed to gain ground. Read more...
EUROPEAN COUNTRIES are blocking Wall Street banks from lucrative deals to sell government debt worth hundreds of billions of euros in retaliation for their role in the credit crunch, the Guardian reports.
For the first time in five years, no big US investment bank appears among the top nine sovereign bond bookrunners in Europe, according to Dealogic data. Only Morgan Stanley ranks at number 10. Read more...
HUNDREDS OF CITY TRADERS are rethinking plans to leave the UK for tax purposes in the wake of last month's landmark court ruling against a British businessman based in the Seychelles, the Times reports.
Terry Smith, chief executive of interdealer broker Tullett Prebon, said the broker would be offering its 950 UK staff the option of relocating to less onerous offshore tax jurisdications, such as Geneva and Zurich. Read more...
