Finance chiefs back government stimulus programs

China bars Glaxo finance chief from leaving

Photo: Kirill Kudryavtsev, AFP/Getty Images Russian Finance Minister Anton Siluanov takes his seat for the… Page 1 of 1 Moscow — The top financial officials of the world’s largest economies issued a joint statement Saturday endorsing continued government spending to prime the global economy for a full recovery. “Growth and creating jobs remains our priority,” the statement from the finance ministers and central bank governors of the Group of 20 countries said. It added that the governments in the organization, which collectively represent about 90 percent of the world’s economic activity, “are fully committed to taking decisive actions to return to a robust, job-rich growth path.” Previous communiques issued after such meetings had also indicated support among some members for balancing budgets, not just spending to get out of recession. In this light, Saturday’s statement suggested the weight of policy consensus in large governments was shifting toward continued stimulus.

A Xinhua report on July 12 that quoted him saying he expected growth to come in at 7 percent caused brief market confusion, but Xinhua later changed the report to quote him as saying 7.5 percent. “We see domestic power generation and electricity consumption increased by 4 percent, and the service industry’s usage of electricity increased 8 percent,” Lou said, arguing that the increases showed efforts to shift China’s economy towards services from manufacturing were bearing fruit. “None of my fellow delegates think China is going to have a hard landing.” The interview was published late on Saturday, a day after Beijing announced it would remove the floor under bank lending rates in a move to free up interest rates, which planners hope will put China’s economy on a more sustainable growth path. Lou said China would continue tax reforms to promote growth, in particular by converting sales taxes to value-added taxes (VAT), while cutting down on paperwork and application requirements for Chinese businesses.

Chinese economy set to turn around, no hard landing: finance minister

Investigators have not made clear how much of that money was paid as bribes. The official Xinhua News Agency said the scheme appeared to be aimed at evading GSK’s internal controls meant to prevent bribery. GSK has said it opposes bribery and was cooperating with the investigation. On Wednesday, the Chinese drug regulator launched a crackdown on misconduct in its pharmaceutical market, though it gave no indication it was linked to the GlaxoSmithKline probe.

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