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.

Sarkozy told Obama euro zone to end crisis: source

French President Nicolas Sarkozy assured U.S. President Barack Obama on Wednesday the euro zone intends to resolve the euro crisis and support Greece, a French presidential source said.

The source, speaking on condition of anonymity, added the two leaders, who met in New York on the sidelines of the annual U.N. General Assembly session, also discussed the idea of including the Chinese yuan in the International Monetary Fund's special drawing rights (SDRs).

Europe's crisis is not a euro crisis: Siemens CFO

WASHINGTON (MarketWatch) -- The fiscal troubles sweeping the capitals of the euro zone are unrelated to the 17-member currency, Joe Kaeser, chief financial officer of German industrial company Siemens AG (SI, SIE.XE), said in an interview with Dow Jones Newswires at The Wall Street Journal's CFO Network conference on Tuesday.

"We need to make sure we do not confuse the crisis of economies with a crisis of currency," he said. "The euro is fine. It's not in crisis."