Yuan Forwards Drop Most in a Week on Euro-Debt Crisis Concern

Sept. 29 (Bloomberg) -- Yuan forwards declined the most in a week on concern European leaders will struggle to contain the region’s debt crisis, dimming the outlook for global growth.

China’s economic growth will slow to 5 percent by 2016, from 9.5 percent last quarter, a Bloomberg poll indicated. The European Commission is resisting a push to impose bigger writedowns on bank holdings of Greek sovereign debt than those previously agreed on, a European official said. China may peg the yuan to the dollar or to a basket of currencies again if there is a global recession, Huang Yiping, Barclays Capital’s chief economist for emerging Asia, said in Beijing today.

European Economic Confidence Declines More Than Forecast

ept. 29 (Bloomberg) -- European confidence in the economic outlook dropped more than economists forecast in September to the lowest in almost two years, reflecting growing concern that the worsening debt crisis could push the euro-area economy into a recession.

An index of executive and consumer sentiment in the 17- nation euro region fell to 95 from a revised 98.4 in August, the European Commission in Brussels said today. That’s the lowest since December 2009 and below the 96 projected by economists, according to the median of 31 estimates in a Bloomberg News survey.