News In Brief (24 - 30 June 2013)

Fed Hints of Ending Asset Purchases

The US Federal Reserve has maintained the rate of its asset purchase programme at $85bn a month, but could start scaling it back soon.It also kept interest rates at a record low range of between zero and 0.25%. Fed chairman Ben Bernanke said on Wednesday that if the central bank’s forecasts were correct, it could begin slowing asset purchases by the end of 2013 and wind them down completely by the middle of 2014. (Agency)



Facebook Reaches 1 mn Advertisers Globally

Facebook Inc said on Tuesday that it now has 1 million active advertisers globally who used the platform in the last 28 days, a milestone for the company that is seeking to revive its revenue growth. A vast majority of those advertisers are small business owners who have flocked to the world’s No 1 social network. (Agency)




Gold Recovers After Market Rout

Gold rose 1.3 percenton Friday, rebounding from nearly a three-year low earlier, but for the week it still dropped the most in nearly two years after the U.S. Federal Reserve’s most explicit indication to end its stimulus sparked a global market rout. Spot gold closed up 1.3 percent at $1,291.60 an ounce after having earlier hit its lowest since September 2010 at $1,268.89 an ounce. (Agency)


UK banks Told to Plug £27bn Hole

UK lenders need to raise billions more in capital to cover their risks, according to their financial regulator. The Prudential Regulation Authority (PRA) says Britain’s top banks and building societies need to fill a £27.1 billion hole in their balance sheets. Royal Bank of Scotland was the regulator’s main cause of concern, accounting for £13.6 bn of the total. Lloyds Banking Group accounted for £8.6bn and Barclays £3bn. Nationwide had a shortfall of £400m. (BBC)



China’s Manufacturing Slows Further

China’s manufacturing activity weakened further in June, falling to a nine-month low as demand fell, according to a preliminary survey by HSBC. The bank’s Purchasing Managers’ Index (PMI) declined to 48.3, from May’s reading of 49.2. A reading below 50 indicates a contraction. The weak data comes amid fresh concerns over the health of Chinese economy, the world’s second-largest. (Agency)