China’s Central Bank Cuts Interest Rates: A Sign Of Slowing Economic Growth?

China’s central bank cut interest rates for the second time in less than four months, in a fresh sign that the country’s leadership is becoming more aggressive in trying to stop the slowdown of economic growth, The Wall Street Journal reports.

The rate cut by the People’s Bank of China was announced Saturday, and it came sooner than some analysts and investors had expected.  It reflects growing worries over the world’s second-largest economy as it struggles with certain difficulties: a slumping property market, more money being sent offshore and growing risks of falling prices that, in effect, are pushing up borrowing costs for businesses.

The cut, effective Sunday, lowers by a quarter percentage point the benchmark one-year loan rate, to 5.35%, and the one-year deposit rate, to 2.5%. In a statement accompanying the announcement, the central bank singled out increasing deflationary pressure as a trigger for the move, saying that plunging commodity prices world-wide “provided room” to spur growth by lowering interest rates.

ALTIVIA Acquires Axiall’s Texas Chemical Plant

ALTIVIA today announced that it has signed a definitive agreement for a takeover of the Specialty Phosgene Derivatives business’ assets – including the chemical production facilities – from Axiall Corporation. The production facilities are in La Porte, Texas.

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“As we refine our portfolio, we are pleased to reach an agreement with ALTIVIA, where we believe our phosgene business will be a better strategic fit,” said Atlanta-based Axiall President and CEO Paul Carrico in a statement, according to The Atlanta Business Chronicle.

As part of the acquisition, ALTIVIA will hire the 120 employees who operate the facility.

More:

http://money.cnn.com/news/newsfeeds/articles/prnewswire/DA41783.htm

Greek PM Easily Wins Parliamentary Backing To Take On Brussels Over Bailout

According to sources, Germany and Greece are heading into an emergency meeting with official creditors today, setting the stage for a clash over Greek debt and Greece’s monetary union with the Eurozone.

The repercussions of a Greek exit and Eurozone break-up could be catastrophic for both the European and global economies.

German Finance Minister Wolfgang Schaeuble rejected Greece’s call for a new debt accord, while Greece’s new Prime Minister Alexis Tsipras remained defiant, saying there is “no way back” for his government, and that he can’t condemn his people to more pain.

“We will not get a clean close to this crisis today,” Michael O’Sullivan, chief investment officer for the U.K. and Europe, the Middle East and Africa at Credit Suisse Private Banking in London, said in an interview on Bloomberg Television. “I think this will drag on. The Greeks have digested a record amount of austerity, so they’ll want some relief from that.”

Any agreement would require an easing of Germany’s stance over conditions attached to Greece’s 240 billion-euro ($272 billion) bailout. A non-settlement risks leaving Greece without funding as of the end of this month, when its current bailout expires, and it may put Europe’s most-indebted state’s euro membership in danger.

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Laissez Faire Economics And Corporations

Mike Papantonio talks about laissez faire economics and corporations and the long run of Republican leadership prior to the Great Depression.

During that time, Corporate America and the Republicans had an agreement. Government would not regulate, and business would not be limited by checks and balances.

Papantonio claims corporations were able to generate bigger profits at the expense of workers, consumers, the U.S. Treasury, and the U.S. economy.

Majority Report video.