Framework is in place with a Timeline, where scheduled discussion on reforms in December will give confidence to markets, a multiple approach to problem solving for each member states

BRUSSELS | Thu Oct 18, 2012 5:17pm EDT

(Reuters) – European Union leaders struck a compromise on a roadmap to establish a single bank supervisor for the euro zone after Germany and France papered over differences on priorities for overcoming the bloc’s debt crisis.
Diplomats reading from the text of draft conclusions of an EU summit in Brussels on Thursday said the leaders agreed on “the objective of completing the legal framework by the end of the year” with implementation “in the course of 2013”.
The point when the European Central Bank will effectively become the bloc’s banking supervisor is important because it would open the way for the euro zone’s bailout fund to recapitalize troubled banks directly, without adding to governments’ debts.
EU Economic and Monetary Affairs Commissioner Olli Rehn said this was vital “to break the vicious circle between sovereigns and banks”.
The deal, which leaves uncertainty over the scope of a European banking union, came after the leaders of Germany and France, Europe’s two central powers, clashed over greater EU control of national budgets as well as bank supervision.
German Chancellor Angela Merkel demanded stronger authority for the executive European Commission to veto national budgets that breach EU rules, but French President Francois Hollande said the issue was not on the summit agenda and the priority was to get moving on a European banking union.
The two leaders met privately just before the start of the 22nd EU summit since the euro zone’s debt crisis erupted nearly three years ago.
For once, the meeting was not under the intense pressure of financial markets, which have calmed since the ECB pledged last month to intervene decisively if needed to buy bonds of troubled euro zone states to preserve the euro.
Addressing parliament in Berlin earlier in the day, Merkel said quality was more important than speed in creating a new banking supervisor.
Germany is loath to see its politically sensitive savings and cooperative banks come under outside supervision and says European oversight should cover big cross-border banks only. It rejects any joint deposit guarantee under which richer countries might have to underwrite banks in poorer states.
Asked why he thought Merkel was dragging her feet, Hollande told reporters it could be related to Germany’s electoral calendar, with a general election due in September 2013, adding that the two dominant EU powers had a duty to solve the crisis.
In her speech to parliament, Merkel skirted the issue of a possible credit line for Spain, which euro zone officials expect Madrid to request within weeks, but reiterated her desire to keep Greece in the currency area despite chronic debt problems.
In Athens, police clashed with protesters hurling stones and petrol bombs during a general strike that brought much of the near-bankrupt country to a standstill.
“We have made good progress on strengthening fiscal discipline with the fiscal pact but we are of the opinion, and I speak for the whole German government on this, that we could go a step further by giving Europe real rights of intervention in national budgets,” Merkel told the Bundestag lower house.
A proposal by German Finance Minister Wolfgang Schaeuble to create a super-empowered European currency commissioner was a possible way forward, she said, and more European control called for a stronger European Parliament. Such moves would require EU treaty changes, which Hollande is keen to avoid.
Merkel also advocated the creation of a European fund to invest in specific projects in member states which she said could be fuelled by a financial transaction tax which 11 euro zone countries have said they will adopt.
Her call echoed a proposal for the 17-member euro zone to have its own budget — known in EU jargon as a “fiscal capacity” — on top of the 27-nation union’s common budget, which mostly funds agriculture and aid to poorer regions.
A note circulated by European Council President Herman Van Rompuy said the proposed new pot of money could provide euro zone countries with insurance against economic shocks and support those that committed themselves contractually to structural reforms.
“Every member state, regardless of their income levels, would over time contribute,” Van Rompuy wrote to EU leaders in the note seen by Reuters. “Therefore, this would not lead to permanent transfers across countries.”
Several states, including the Netherlands, Finland and Austria, were uneasy at the idea but none rejected it outright.
Decisions on institutional reforms are not expected until a December summit.
Since the ECB said last month it was ready to buy the bonds of struggling euro zone states in unlimited amounts, state borrowing costs have fallen sharply and some of the pressure to move rapidly to resolve the crisis has dissipated.
Spain’s 10-year bond yields sank to their lowest since February at an auction on Thursday, helped by Moody’s decision this week to leave its credit rating at investment grade.
But rather than signaling that Madrid does not need help, Moody’s verdict was predicated on Spain soon applying for a euro zone assistance program to trigger ECB intervention.
The leaders agreed at their last summit in June to create a single banking supervisor under the ECB, but tricky legal issues remain and it may not be fully up and running until 2014, up to a year later than first expected.
Joerg Asmussen, the German member of the ECB’s executive board, said on Wednesday the central bank would not be ready to start overseeing banks from early next year, and said it was more important to do it properly than to do it quickly.
The deeper the discussion on banking union goes, the more complex and problematic it gets.
Countries outside the euro zone — particularly Britain, which has Europe’s biggest banking sector — are concerned their banks could be disadvantaged if a balance is not maintained between the ECB and its oversight of euro zone banks and the powers of other authorities to oversee non-euro zone banks.
And if non-euro zone countries such as Poland join the banking union, as policymakers are hoping, it is unclear what representation they would have within the ECB, since the central bank is currently answerable only to euro zone member states.
(Additional reporting by Stephen Brown and Madeline Chambers in Berlin, Jan Strupczewski and Luke Baker in Brussels, Harry Papachristou and Lefteris Papadimas in Athens and Gilbert Krijger in Amsterdam. Writing by Paul Taylor, editing by Mike Peacock)

How to transform McDonald’s Share price to Google’s Share price?

MacDonald’s Share Price
Google’s Share Price

Does anybody knows the trick?
Acqusition Target Most Lucrative Brands Global Domination
The most lucrative CASH business income

McDonald’s Brand
Dunking Donut’s Buyout
McCafe Project Spinoff

1)Reverse takeover of F & N’s beverage brands without Tiger Beer
F & N Diaries
Heaven & Earth
100 Plus
Ice Mountain
Fruit Tree

Price is too expensive now, but there exist a potential, if there is new markets or new products to conquest.


4)Hotel 81/Fragrance Hotel for overseas expansion in Asia
No point buying an expensive Hotel brand where the upside has almost been breeched.

Moving in on the right opportunity
How to create the right opportunity?
Merger and Takeover by merger of brands and products and nibbling %
Move into North Korea markets when the time is ready

World Domination of the most lucrative brands
When I completed all my goals MacDonald’s share=Google’s share price

Since my family is so capable to spy on everything I do, ask them to produce results.
I am going to run circles round everybody who tries to be funny.
– Contributed by Oogle.

Why US cannot lead anymore in the UN

A founder of one of China’s leading companies has branded Barack Obama and US regulators as “petty scoundrels” in the latest exchange over restrictions on Chinese companies’ access to the US market.
Xiang Wenbo, one of China’s richest men and a founding member of the Sany Group, lashed out at US regulators on Thursday in an unusual outburst that highlights the rising commercial tensions between the world’s two largest economies.
“They are petty scoundrels who can’t be reasoned with,” said Mr Xiang, referring to the Committee on Foreign Investment in the US and to President Obama, who last month blocked a Sany-affiliated wind farm in Oregon on national security grounds. The case has added to a growing sense among Chinese companies that they face discrimination in their efforts to expand into the US, a situation exacerbated by the US presidential election, they say.
“The US treats China like a hostile country,” said Mr Xiang, who is a board member of Sany Heavy, the world’s ninth’s-largest construction machinery maker by sales. “Whatever we do is deemed as endangering American national security.” Earlier this year, Cfius – the government agency which reviews overseas investment into the US – retroactively blocked the purchase of the Oregon wind farm by Ralls, a Sany affiliate, on national security grounds because of its proximity to a military restricted fly zone.
Mr Xiang’s comments come at a time when Chinese companies are increasingly concerned about barriers they face in the US market. Last week, a US congressional committee said two Chinese telecoms equipment companies, Huawei and ZTE, were threats to national security – an announcement that threatens their US expansion plans. Meanwhile, Chinese oil group Cnooc is awaiting a decision by Cfius on its proposed acquisition of Nexen, a Canadian oil company with some assets in the US.
As Mr Obama and his US presidential rival Mitt Romney spar over who might be tougher on China, their comments have been met with quiet alarm by Chinese companies seeking to expand in the US.
After Tuesday’s presidential debate, China’s foreign ministry urged the US to keep the China-US relationship in perspective. “We hope that during this campaign people will fully understand . . . that the essence of the China-US relationship is mutually beneficial and win-win,” said foreign ministry spokesman Hong Lei in Beijing on Wednesday.
Sany has been expanding rapidly overseas, setting up manufacturing facilities in Peachtree, Georgia, last year, and then spending €525m in April to acquire Putzmeister, the German maker of concrete pumps. But the company has been thwarted by opposition to a small wind farm near the Columbia River Gorge in northern Oregon.
Earlier this year Cfius, the government agency which reviews overseas investment into the US, retroactively rejected the purchase of the wind farm site by Sany’s affiliate company, Ralls, which planned to install Sany turbines on the site. When Ralls sued Cfius, Mr Obama stepped in with an executive order that cited national security concerns and called for construction to be halted at the site, parts of which are inside a military restricted flight zone.
Ralls has added Mr Obama’s name to the earlier court case, making it the first Chinese company to ever sue a US president.
Mr Xiang said that the action of Cfius and of Mr Obama violated the spirit of the US constitution and its protections for private property. Ralls’ legal challenge is “important for safeguarding the dignity of Chinese enterprises and of Sany”, he added. “What we do will be a significant reference [point for] Chinese enterprises in the future.”
“The presidential election has very little to do with us, so why is everyone always trying to get China involved? It seems like whoever has a negative view of China will win more votes. This severely damages the friendly feelings of the Chinese people towards America.”
Additional reporting by Gwen Chen in Beijing
Every single technology that is invented by the US is to take advantage of others, there is no fair play, where there are hundreds of new technological break thru that is also hidden from public’s eyes, the world will have no progress in such a situation, but I have broken all records to claim victory, re-writing every single technology to create my own technologies and present it to the UN, setting UN independence to be self ruled without anybody’s contributions, every single industry I have claimed victory, and the entire world can be set free again.
– Contributed by Oogle.  

There must first be reforms, imperfections must be resolved before a EU Banking Union can take place where bailout funds used will not cause another crisis

Last updated: October 17, 2012 8:00 pm

EU leaders have expressed alarm that the eurozone’s push towards a banking union has stalled, setting up a confrontation with a more reluctant Germany at a European summit in Brussels.
The group includes the French, Spanish and British leaders as well as José Manuel Barroso, president of the European Commission, and Herman Van Rompuy, president of the European Council, who chairs the two-day summit beginning on Thursday. They are increasingly concerned that recent market calm has sucked the urgency out of the plan.
“Let’s not wobble,” said Mariano Rajoy, Spanish prime minister, at a meeting of centre-right leaders in Bucharest. President François Hollande of France took a dig at Berlin for focusing on longer-term political union while stalling on shorter-term measures.
Without concrete action by year’s end, some officials fear hard-fought credibility gained with investors over the past four months could be lost, and said they will press a German-led group of recalcitrant northern countries to move more quickly.
“The eurozone can only get together and act when the market puts pressure on it,” lamented an EU diplomat from a country allied with Paris. “The things people are being asked to do are very difficult and they don’t want to do them.”
Concern has focused on the inability to agree a way forward on a deal reached in June in which Berlin agreed to allow the eurozone’s €500bn rescue fund to take on debts of failing banks once a new centralised bank supervisor for the single currency is established.
German, Dutch and Finnish finance ministers called the deal into question last month when they insisted that “legacy assets” – such as banks in trouble before the supervisor was established – would be excluded in the rescue scheme, a position that caused howls of protest in Ireland and Spain which both have spent billions bailing out banks.
Direct recapitalisations from the rescue fund, the European Stability Mechanism, would relieve national exchequers of the responsibility for most bank bailouts, wiping significant chunks of those debts off sovereign books.
“If we say we are going to do something we should implement it,” said a senior French official. “That has been one of our problems. It is an issue of credibility. We need to break the vicious circle of sovereign risk and banking risk. Why should we wait?”
A senior German official said the June decision was “unambiguous” that using the ESM for bank recapitalisations would not occur until the supervisor had been proved “effective and established”.
German reluctance has led diplomats involved in detailed talks to become doubtful that a deal is possible before year’s end. One noted Berlin was still sending mid-level officials to talks on the single supervisor; others suggested talks could run for a year or more.
Although Berlin strongly denies dragging its feet, senior officials and diplomats pressing for a fast deal are convinced Germany is raising new objections to draw out the process. Wolfgang Schäuble has questioned whether the ECB can take on the role of supervisor, the legal base for the proposal, and has floated the idea of splitting the European parliament to improve accountability for the new supervisor.
Some officials were particularly alarmed at Mr Schäuble’s pre-summit remarks suggesting more ambitious, long-term plans for EU control over national budgets, saying they could prove a distraction.
“The Germans, on the things that have immediate impact, get cold feet,” said a senior official involved in talks with Berlin.
In an interview with the French daily Le Monde published on Wednesday, Mr Hollande appeared to make a similar point, though he insisted he was not “targeting anyone in particular”.
“It has not escaped my notice that those who are most eager to talk about political union are sometimes those who are most reticent about taking urgent decisions that would make it inevitable,” Mr Hollande said.
A draft of the summit communiqué seen by the FT currently only asserts that eurozone finance ministers will deal with the banks issue “in full respect” of the June deal. Some governments – including Italy and Spain – are urging stronger language, but are reluctant to force the issue with Angela Merkel, German chancellor.
“Merkel has given a very clear signal that if you pick a fight you will lose,” said one EU diplomat.
Additional reporting by Alex Barker in Brussels and Quentin Peel in Berlin
My Vision for EU is that it will be the largest market after US and Asia which members must complement each other to produce goods and services to supplement it’s needs where free trade with others will provide income for growth which will be greatly enhanced after the EU banking Union. The markets is big enough for everybody if you can fill in the gaps to form a tightly intergrated infrastructure that will be recession proofed once stability returns to the global markets, therefore planning for such a goal is important where many players come together to merge resources and share knowledge and incomes, forging closer ties which will benefit each other in future, isn’t this the original goal of what the EU block is made up of?
– Contributed by Oogle. 

China will lead the global recovery

China’s stocks rose, driving the benchmark index to the highest level in a week, after Premier Wen Jiabao said the economy has started to stabilize.
SAIC Motor Corp. led industrial companies higher as data showed the economy grew 7.4 percent in the third quarter, matching analyst estimates, and factory output accelerated in September. Shanghai Hanbell Precise Machinery Co. advanced 3.1 percent after the China Securities Journal said the government may issue guidelines on the use of geothermal energy. China Life Insurance Co. (601628), the nation’s biggest insurer, fell to the lowest level in six weeks after estimating declining profit.
The Shanghai Composite Index (SHCOMP) climbed 0.5 percent to 2,115.25 at 10:13 a.m. local time. The CSI 300 Index (SHSZ300) rose 0.5 percent to 2,312.55. The Hang Seng China Enterprises Index (HSCEI) of Chinese companies traded in Hong Kong gained 0.3 percent. The Bloomberg China-US 55 Index (CH55BN) added 0.4 percent in New York.
“The data shows initial signs that the economy has stabilized, which is good,” said Wang Zheng, Shanghai-based chief investment officer at Jingxi Investment Management Co., which manages about $120 million. “It still remains to be seen if the improvement in the economy can be translated into good corporate earnings.”
The Shanghai Composite has rebounded 5.1 percent since reaching a three-year low on Sept. 26 on expectations regulators will introduce measures to stabilize the market ahead of a once- in-a-decade power transition of the Communist Party in November. The gauge is valued at 9.8 times estimated earnings, compared with the 17.9 average since Bloomberg began compiling the weekly data in 2006.

Economic Data

China’s economic situation is “relatively good,” Wen said yesterday, Xinhua News Agency reported. Wen said the government is confident of achieving annual targets and the economy will continue to show “positive changes,” Xinhua reported, citing his comments in meetings he held with industry leaders, company executives and some local government officials on Oct. 12-15.
The third-quarter growth figure compares with a previously reported 7.6 percent expansion in the second quarter.
Industrial production rose 9.2 percent in September, the report showed. That compared with the 9 percent median forecast of 37 analysts and an 8.9 percent gain in August.
SAIC, China’s largest carmaker, added 1.8 percent to 13.24 yuan. Anhui Conch Cement Co., China’s biggest cement maker, gained 1.1 percent to 16.31 yuan. Reports also showed retail sales and fixed-asset investment accelerated in September.

U.S. Housing

China’s September new home prices rose in fewer than half the cities monitored by the government from a month earlier, indicating property curbs are stabilizing the market.
Prices climbed in 31 cities of the 70 the government tracks from the previous month, compared with 35 cities in August, according to data released by the statistics bureau today. Prices fell in 22 cities, the data showed.
China Vanke Co., the biggest developer, rose 1.1 percent and Poly Real Estate Group Co., the second largest, added 1.5 percent to 10.76 yuan.
“It certainly looks like Chinese stocks have stabilized, which is heartening,” Timothy Ghriskey, chief investment officer at New York-based Solaris Group LLC, which manages about $2 billion in assets, said by phone yesterday. “China’s growth rate is still well above the rest of the world, and it remains a great opportunity.”
In the U.S., housing starts surged 15 percent in September to the highest level in four years, adding to signs of a revival in the industry at the heart of the financial crisis. The jump in U.S. housing starts is the latest sign that the world’s largest economy is gaining strength after growth slowed to a 1.3 percent annual pace in the third quarter.
The U.S. is China’s second-largest export market, making up about 17 percent of the nation’s overseas sales, according to Shenyin & Wanguo Securities Co.

China Life

Shanghai Hanbell rose 3.1 percent to 14.12 yuan. Dalian Refrigeration Co. climbed 2 percent to 7.83 yuan.
China may “soon” announce guidelines for geothermal energy exploration and use, the China Securities Journal reported, without saying where it got the information. The government will likely take more concrete measures on geothermal energy generation and subsidies in the future, it said.
China Life slid 1.9 percent to 17.35 yuan after saying profit for the first nine months of this year may fall about 55 percent because of lower investment yields and bigger impairment losses. The company’s American depositary receipts, each representing 15 underlying shares, lost 5.7 percent to $43.01 yesterday. The ADRs traded 3.4 percent below its Hong Kong stock, the biggest discount since March 6.
China’s publicly traded non-financial companies’ profits for the first nine months probably dropped 17 percent from the year-earlier period, almost unchanged from the first half, Li Peng, Huang Xindong and Chen Jianxiang, analysts at Shenyin & Wanguo Securities Co., wrote in a report yesterday.
Thirty-day volatility in the Shanghai Composite was at 19.6 yesterday, compared with this year’s average of 17.2. About 5.9 billion shares changed hands in the gauge, 23 percent lower than the daily average in 2012.
The iShares FTSE China 25 Index Fund, the biggest Chinese exchange-traded fund in the U.S., rose yesterday for a seventh day, adding 1.4 percent to a five-month high.
To contact Bloomberg News staff for this story: Zhang Shidong in Shanghai at
To contact the editor responsible for this story: Darren Boey at