Chinese Premier Li Keqiang’s plan to introduce deposit insurance is meant to comfort the nation’s savers as bad loans mount. In the bond market, it’s fueling speculation he’s preparing to let some banks collapse.
California’s credit rating, ranked second-lowest in the U.S. by Standard & Poor’s, is poised to benefit if Governor Jerry Brown is able to persuade a special legislative session to alter plans for a budget reserve.
Brazil’s real dropped the most among major currencies as the government’s plan to cut its budget deficit failed to shore up investor confidence in the country following last month’s credit rating downgrade.
The Ibovespa fell the most among major stock gauges in the Americas as exporters including iron- ore producer Vale SA tumbled after data showed a decline in a measure of new credit in China, Brazil’s top trading partner.
Tanzania will ease controls on foreign ownership of its stocks and bonds by next year as the country seeks to attract investment to finance infrastructure projects that will cost billions of dollars, President Jakaya Kikwete said.