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.

Car industry urges bold action over euro debt crisis

Car industry executives from around the globe urged Europe's politicians to take bolder steps to solve the bloc's two-year-old debt crisis, warning its single currency could be derailed without more decisive action.

The euro was under pressure again on Tuesday with debt markets increasingly pricing in a Greek sovereign debt default and the U.S. government voicing its alarm at Europe's inability to get a grip on the crisis.

Greek Crisis Now Worse, Not Better: Analyst

On July 21, EU leaders agreed to a second bailout for Greece, one that was supposed to draw a line under the euro zone debt crisis and give the new government in Athens a chance come to grips with the huge debts it inherited when it was elected.

One month later, and the situation appears to be getting worse rather than better, according to Simon Derrick, the head of currency research at Bank of New York Mellon.