China Growth, Not Paulson, May Force Government to Accept Yuan Revaluation

(Bloomberg) -- China faces growing pressure to
increase the value of the yuan, and Henry Paulson has nothing to
do with it.

The world's fastest-growing economy is so hot that the
government is considering a currency revaluation prompted by
uncontrollable money supply growth, inflation, a runaway stock
market and ballooning foreign exchange reserves.


Read more at Bloomberg Currencies News

Kuwait Ends Currency Peg to Dollar, Moves to Basket of Currencies

(Bloomberg) -- The Central Bank of Kuwait ended its
currency peg to the dollar, moving to a basket of currencies, the
Kuwaiti state-owned news agency said, citing the central bank. The
dinar appreciated by 0.37 percent against the dollar.

The central bank will adopt an exchange rate ``based on a
basket of major world currencies,'' the KUNA news agency said.


Read more at Bloomberg Currencies News

UPDATE 1-Kuwait drops dollar peg, adopts currency basket

(Reuters) - KUWAIT, May 20 - Kuwait switched the dinar's
exchange rate mechanism to a basket of currencies on Sunday,
dropping a peg to the tumbling U.S. dollar that was adopted in
2003 and throwing into disarray plans for a single currency in
the Gulf Arab region.




Kuwait was still committed to the monetary union, the
central bank governor said in a statement, but the dollar's
slide over the past two years had forced it to break ranks with
fellow Gulf oil producers to contain inflation.


Read more at Reuters.com Economic News

Asia the top investment choice for expats: survey

(Reuters) - Thirty-seven percent of investors have exposure to continental Europe, while 29 percent are exposed to the United States and 26 percent have investments in Britain.




A year ago, continental Europe was the most popular region, followed by the United States, Asia and the UK in the survey by Internaxx, a joint venture between Fortis Banque Luxembourg and brokerage company TD Waterhouse.


Read more at Reuters.com Business News

Treasuries Fall Most Since January as Optimism for Rate Cut Starts to Fade

(Bloomberg) -- Treasuries fell the most since
January as signs of U.S. economic strength reduced bets on a cut
in borrowing costs by the Federal Reserve this year.

The yield on the benchmark 10-year note advanced this week
to a three-month high as reports showed higher-than-expected
hiring and consumer confidence. Policy makers last week held
their benchmark rate steady, saying inflation remains the
``predominant'' concern.


Read more at Bloomberg Bonds News

Germany struggles to keep G8 heat on hedge funds

(Reuters) - Germany strove to keep its proposals for tighter hedge fund supervision alive at a two-day meeting of G8 finance ministers near Berlin.

U.S. Treasury Secretary Henry Paulson stayed away and the new French government sent no minister to the talks at a lakeside resort -- two no-shows that further limited the potential for substantive decisions at the meeting.


Read more at Reuters Africa

US has tough task to heal rift over Wolfowitz

(Reuters) - A day after Paul Wolfowitz resigned as World Bank president under an ethics cloud, the United States faced the tough task of healing rifts with Europeans and satisfying calls that his successor be picked on merit, not just nationality.

Wolfowitz's resignation on Thursday followed pressure by European opponents who said his handling of a high-paying promotion for his companion damaged the institution's credibility. Bank staff complained the crisis had undermined their mission of fighting poverty in developing countries.


Read more at Reuters Africa