Yen resumes fall after G20, U.S. holiday thins trade

LONDON (Reuters) - The yen resumed falling on Monday after Japan signaled it would push ahead with expansionist monetary policies having escaped criticism from the world's 20 biggest economies at the weekend.


Industrial metals also dipped and European shares were soft on lingering worries about the economic outlook, especially for the euro zone. While the risk of an inconclusive outcome in Italy's forthcoming election added to investor concerns.


However, activity was curtailed by the closure of markets in the United States for the Presidents' Day holiday.


The yen, which has dropped 20 percent against the dollar since mid-November, fell further after financial leaders from the G20 promised not to devalue their currencies to boost exports and avoided singling out Japan for any direct criticism.


The dollar rose 0.5 percent to 93.95 yen, near a 33-month peak of 94.47 yen set a week ago. The euro added 0.3 percent to 125.40 yen, to be midway between Friday's two-week low of 122.90 and a 34-month high of 127.71 yen hit earlier this month.


Strategists said the yen was likely to stay weak, though its decline could lose momentum until it becomes clear who will be taking the helm at the Bank of Japan when the current governor steps down on March 19.


"The yen probably will weaken a little further in anticipation of more aggressive easing under a new leadership team at the Bank of Japan," said Julian Jessop, chief global economist at Capital Economics.


Japan's Prime Minister Shinzo Abe is poised to nominate the new governor in the next few days. Sources have told Reuters that former financial bureaucrat Toshiro Muto, considered likely to be less radical than other candidates, was leading the field.


Meanwhile the euro dipped slightly against the dollar when European Central Bank president Mario Draghi said the currency's recent gains made any rise in inflation less likely and added that he had yet to see any improvement in the euro zone economy.


Speaking before the European Parliament, Draghi said the euro's exchange rate was not a policy target but was important for growth and stability, adding that appreciation of the euro "is a risk".


The comments left the euro down 0.2 percent at $1.3334.


Elsewhere in the currency market, sterling hit a seven-month low against the dollar, after a key policymaker made comments about the need for further weakness and recent poor data which has kept alive worries of another British recession.


Sterling fell 0.25 percent to $1.5476 having earlier touched $1.5438, its lowest since July 13.


DATA LOOMS


A big week for data on the outlook for the world's economy weighed on other riskier asset markets following the recent dire fourth-quarter growth numbers for the euro zone and Japan, along with Friday's soft U.S. manufacturing figures.


In European markets, attention is focused on the euro area Purchasing Managers' Indexes for February and German sentiment indices due later in the week which could affect hopes for a recovery this year.


Analysts expect Thursday's euro area flash PMI indices, which offer pointers to economic activity around six months out, to show growth stabilizing across the recession-hit region, leaving intact hopes for a recovery in the second half of 2013.


Concerns over an inconclusive outcome in the Italian election on Sunday and Monday have added to the weaker sentiment as a fragmented parliament could hamper a future government's efforts to reform the struggling economy.


The worries about the outlook for Italy were encouraging investors back into safe-haven German government bonds on Monday, with 10-year Bund yields easing 3.5 basis points to be around 1.63 percent.


"Political uncertainty will keep Bunds well bid this week," ING rate strategist Alessandro Giansanti said, adding that only better than expected economic data could create selling pressure on German debt in the near term.


Italian 10-year yields were 4 basis points higher on the day at 4.41 percent.


EARNINGS HIT


European equity markets were taking their lead from corporate earnings reports which have been reflecting the sluggish economic conditions across the region.


Danish brewer Carlsberg , which generates just over 60 percent of its sales in western Europe, became the latest to report a weaker-than-expected quarterly profit, sending its shares to their lowest level in almost a month.


The 5.8-percent drop for shares in the world's fourth biggest brewery helped send the FTSEurofirst 300 index <.fteu3> of top European shares down 0.2 percent. Germany's DAX <.gdaxi>, France's CAC-40 <.fchi> and Britain's FTSE-100 <.ftse> ranged between 0.4 percent up and 0.15 percent lower.


Earlier, the G20 statement and subsequent comment from Prime Minster Abe indicating a renewed drive to stimulate the Japanese economy lifted the Nikkei stock index <.n225> by 2.1 percent, near to its highest level since September 2008.


MSCI's world equity index <.miwd00000pus> was flat as markets extended a two-week period of consolidation that has followed the big run-up in January, when demand was buoyed by the efforts of central banks to stimulate the world economy.


Data from EPFR Global, a U.S.-based firm that tracks the flows and allocations of funds globally, shows investors pulled $3.62 billion from U.S. stock funds in the latest week, the most in 10 weeks after taking a neutral stance the prior week.


But demand for emerging market equities remained strong, with investors putting $1.81 billion in new cash into stock funds, the fund-tracking firm said.


CHINA RETURN


In the commodity markets, traders played catch-up after a week-long holiday last week in China, the world's second biggest consumer of many raw materials, which had kept activity subdued, with worries about the economic outlook weighing on sentiment.


Copper, for which China is the world's largest consumer, dipped to a near three-week low at $8,125.25 a metric ton (1.1023 tons) on the London futures market. Benchmark tin and nickel also touched three-week lows.


Gold managed to edge away from six-month lows as jewelers in China returned to the physical market after the Lunar New Year holiday but a lack of demand from U.S. markets saw the precious metal slip back to be down 0.1 percent to $1,607.06 an ounce.


Crude oil markets were mostly steady after the weak U.S. industrial production data on Friday [ID:nL1N0BF44A] was seen dampening demand, while tensions in the Middle East lent some support.


"We continue to see a mixed picture out of the United States. Industry output was lower than expected but that shouldn't affect the general upward direction," Olivier Jakob, analyst at Geneva-based Petromatrix, said.


Brent crude was down 20 cents at $117.46 a barrel after posting its first weekly loss since the first half of January. U.S. crude slipped 24 cents to $95.62.


(Additional reporting by Marius Zaharia and Ron Bousso; Editing by Philippa Fletcher and Alastair Macdonald)



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Mikhail Pakhomov’s Body Is Found Near Moscow in Cement-Filled Barrel





MOSCOW — The body of a missing city legislator and construction tycoon has been found in a private basement garage on the city’s outskirts, inside a rusted metal barrel filled with cement, the police said Monday.




Russian television showed investigators removing the body of the man, Mikhail Pakhomov, 36, on Sunday evening from the garage, 20 miles east of Moscow, where the police said he had been tortured and killed over an outstanding $80 million loan.


The killing recalled the brutal violence that routinely emerged from business disputes in the 1990s. Mr. Pakhomov, who was reported missing last Tuesday, was a promising young star in United Russia, the ruling party founded by President Vladimir V. Putin, and had served as head of a construction company that was reported to have won large contracts to develop utilities and infrastructure in several cities.


Sergei B. Ivanov, Mr. Putin’s chief of staff, last year called housing and utilities services one of Russia’s most corrupt sectors. Many lucrative contracts are doled out on the municipal level, and large sums of money are at stake.


Politicians who have tried to battle graft in the system have met with violence. In 2011, Yevgeny Dushko, the mayor of Sergiyev Posad, was gunned down in his driveway in a contract killing that investigators said was most likely linked to his disputes with the city’s utility contractors.


The police have identified the likely mastermind of Mr. Pakhomov’s killing as Yevgeny Kharitonov, a former deputy minister for housing and utilities services in the Moscow region. . They said Mr. Kharitonov had Mr. Pakhomov followed since last November and was pressing the legislator to repay a debt of $80 million. Mr. Kharitonov has been arrested, but so far, he has been charged only with kidnapping. Seven other people were also arrested.


Mr. Pakhomov was reported missing on Feb. 12 from Lipetsk, an industrial city 270 miles southeast of Moscow, where he served as a regional lawmaker. Witnesses said three men had dragged him from his car, and the police said they found traces of blood at the scene.


The search continued for almost a week, until people questioned by the police led investigators to the body.


“A similar event has never happened with a V.I.P. in our city,” read an editorial published in Gorod48, a news Web site based in Lipetsk. “Even in the ‘evil ’90s’ nobody disappeared: businessmen were killed right where they lived or worked, and bandits from competing groups shot or blew each other up wherever they happened to be.”


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Play puts Russian justice system in dock over lawyer’s death






MOSCOW (Reuters) – In a poorly lit basement theatre in central Moscow, actors play out a symbolic trial of Russia‘s justice system over its failure to protect an anti-corruption lawyer who died in custody.


Without costumes or a set, the actors in “One Hour and Eighteen Minutes” take on the roles of judges, an investigator, doctor and medical assistants, reciting lines cobbled together from legal documents, media and public pronouncements on the case of Sergei Magnitsky.






His death in 2009, while awaiting trial on charges of tax evasion and fraud, has outraged human rights campaigners who see it as an example of arbitrary justice in Russia, and contributed to a rift in U.S.-Russian relations.


A nervous giggle runs through the audience, perched on wooden chairs and benches, when an actor playing a judge says that the justice system is the only thing that is still working in Russia.


The audience is visibly taken aback when a second judge, who prolonged Magnitsky‘s detention four days before his death, dismisses accusations of acting inhumanly when she says the judge’s role is not to act like a human being but as an executor of the state’s authority.


“The most horrifying moment for me was this judge saying she is not a human because she is a judge. This is very frankly put and how things really are,” said Lyudmila Alexeyeva, a veteran Russian human rights campaigner.


“Nowadays, theatre based on documents, on real life here, is more telling and, unfortunately, more scary than thrillers.”


No one has been convicted over the death of Magnitsky, who was arrested after accusing Russian police of stealing $ 230 million from the state in 2007 through fraudulent tax refunds.


But Russia is now pressing ahead with plans to stage a posthumous trial of the lawyer, putting a dead man in the dock.


This prompted Mikhail Ugarov, the director of Teatr.doc, to revive a play first staged in 2010 because it seemed to him that true justice was now more distant than ever.


“In the very heart of Russia a man is killed, and not by thieves and bandits, but by doctors and prison workers, people who are in general obliged to safeguard the lives of those arrested,” Ugarov told Reuters.


“We used to think there would at least be some justice done, but it turned out completely the other way, it went horribly wrong. So our logic was that if they were not able to give justice to Magnitsky, we will instead.”


SEEKING JUSTICE


Rights campaigners and critics of President Vladimir Putin say the Russian judiciary is weak and open to abuse by politicians, and suggest that the Kremlin uses it to intimidate or persecute adversaries.


The Kremlin has repeatedly denied those accusations, saying the judiciary is completely independent and that the government does not intervene in legal cases.


“Judges are independent and subject only to the Constitution of the Russian Federation and the federal law,” the Russian Justice Ministry said in response to a request to comment on the play.


The Kremlin also denies that there has been a crackdown on dissenters since Putin returned to the presidency last May, facing the largest protests since he first rose to power 13 years ago.


Magnitsky’s prison death has, however, damaged Russia’s image and, for critics of the Kremlin, come to symbolize what they see as the impunity of the Russian authorities and the dangers faced by those who challenge them.


It has also resulted in a political spat with Washington. The United States, in response to Magnitsky’s treatment, passed legislation late last year that is designed to punish officials linked to his case as well as other Russians deemed rights violators.


Russia hit back with a law to punish Americans it suspects of similar abuses.


The play’s title, “One Hour and Eighteen Minutes”, alludes to the time just before Magnitsky died when he was left without medical help in his cell despite repeated complaints about his health deteriorating while in custody.


Putin said in December that Magnitsky died of a heart attack, but the head of the Kremlin’s own human rights council had earlier said he was probably beaten to death.


Putin called the death a tragedy but said the late lawyer, who had two sons, was not tortured.


All the defendants in the symbolic court in the play deny any responsibility, saying it was not their job to help Magnitsky, that they were busy with other cases, or were paid too poorly to care. Some suggest he was asking for trouble.


In the play, the first judge at a pre-trial hearing denies a glass of water to Magnitsky, saying such requests are not his concern.


Later on, an investigator involved in the case laughs with contempt at the lawyer’s repeated complaints about the conditions of Magnitsky’s detention and lack of medical care, saying a prison is not meant to be comfortable.


One actor exclaims ironically: “A dead man is good for being tried, and should be, just like someone who is alive – or is even better for being tried.”


(Reporting by Gabriela Baczynska, editing by Paul Casciato)


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Downton Abbey-Inspired Cocktail Is Perfect Way to Toast the Crawleys






Celebrity Diners Club










02/17/2013 at 05:00 PM EST







The Crawley Classic


Courtesy Nick Van Tiel; Inset: Matthew Lloyd


Here's to Downton!

Season 3 of Downton Abbey is coming to a close on Sunday – and in case you need something to soothe your soul while you watch the final episode alone in the dark next to a box of tissues, we've got the perfect drink.

Then again, this fruity and bubbly concoction packs a punch, making it a delicious refreshment to serve at a festive viewing party. Just designate a guest your head butler, hand him the recipe and call out, "Carson, bring me another Crawley Classic!"

The gin cocktail – created by Nick Van Tiel, U.S. brand ambassador for Plymouth and Beefeater in honor of the PBS's award-winning drama – is something Lady Mary might sip upon whilst picking out the perfect pair of gloves for dinner. It's also fit for Thomas to enjoy on his day off or while he seethes behind close doors, plotting against O'Brien.

However you wish to enjoy the drink, do so in good company whether upstairs or down.

The Crawley Classic:

1 part gin
½ part sloe gin
½ part fresh grapefruit juice
½ part fresh lemon juice
½ part Turbinado simple syrup
Drizzle of black raspberry liqueur (float on top)
Splash soda/seltzer water

Shake and strain the first 5 ingredients into a long sling glass over fresh ice. Top with a little cracked ice, add a splash of soda and a drizzle of raspberry liqueur.

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UN warns risk of hepatitis E in S. Sudan grows


GENEVA (AP) — The United Nations says an outbreak of hepatitis E has killed 111 refugees in camps in South Sudan since July, and has become endemic in the region.


U.N. refugee agency spokesman Adrian Edwards says the influx of people to the camps from neighboring Sudan is believed to be one of the factors in the rapid spread of the contagious, life-threatening inflammatory viral disease of the liver.


Edwards said Friday that the camps have been hit by 6,017 cases of hepatitis E, which is spread through contaminated food and water.


He says the largest number of cases and suspected cases is in the Yusuf Batil camp in Upper Nile state, which houses 37,229 refugees fleeing fighting between rebels and the Sudanese government.


Read More..

G20 steps back from currency brink, heat off Japan


MOSCOW (Reuters) - The Group of 20 nations declared on Saturday there would be no currency war and deferred plans to set new debt-cutting targets, underlining broad concern about the fragile state of the world economy.


Japan's expansive policies, which have driven down the yen, escaped direct criticism in a statement thrashed out in Moscow by policymakers from the G20, which spans developed and emerging markets and accounts for 90 percent of the world economy.


Analysts said the yen, which has dropped 20 percent as a result of aggressive monetary and fiscal policies to reflate the Japanese economy, may now continue to fall.


"The market will take the G20 statement as an approval for what it has been doing -- selling of the yen," said Neil Mellor, currency strategist at Bank of New York Mellon in London. "No censure of Japan means they will be off to the money printing presses."


After late-night talks, finance ministers and central bankers agreed on wording closer than expected to a joint statement issued last Tuesday by the Group of Seven rich nations backing market-determined exchange rates.


A draft communiqué on Friday had steered clear of the G7's call for economic policy not to be targeted at exchange rates. But the final version included a G20 commitment to refrain from competitive devaluations and stated monetary policy would be directed only at price stability and growth.


"The mood quite clearly early on was that we needed desperately to avoid protectionist measures ... that mood permeated quite quickly," Canadian Finance Minister Jim Flaherty told reporters, adding that the wording of the G20 statement had been hardened up by the ministers.


As a result, it reflected a substantial, but not complete, endorsement of Tuesday's proclamation by the G7 nations - the United States, Japan, Britain, Canada, France, Germany and Italy.


As with the G7 intervention, Tokyo said it gave it a green light to pursue its policies unchecked.


"I have explained that (Prime Minister Shinzo) Abe's administration is doing its utmost to escape from deflation and we have gained a certain understanding," Finance Minister Taro Aso told reporters.


"We're confident that if Japan revives its own economy that would certainly affect the world economy as well. We gained understanding on this point."


Flaherty admitted it would be difficult to gauge if domestic policies were aimed at weakening currencies or not.


NO FISCAL TARGETS


The G20 also made a commitment to a credible medium-term fiscal strategy, but stopped short of setting specific goals as most delegations felt any economic recovery was too fragile.


The communiqué said risks to the world economy had receded but growth remained too weak and unemployment too high.


"A sustained effort is required to continue building a stronger economic and monetary union in the euro area and to resolve uncertainties related to the fiscal situation in the United States and Japan, as well as to boost domestic sources of growth in surplus economies," it said.


A debt-cutting pact struck in Toronto in 2010 will expire this year if leaders fail to agree to extend it at a G20 summit of leaders in St Petersburg in September.


The United States says it is on track to meet its Toronto pledge but argues that the pace of future fiscal consolidation must not snuff out demand. Germany and others are pressing for another round of binding debt targets.


"We had a broad consensus in the G20 that we will stick to the commitment to fulfill the Toronto goals," German Finance Minister Wolfgang Schaeuble said. "We do not have any interest in U.S.-bashing ... In St. Petersburg follow-up-goals will be decided."


The G20 put together a huge financial backstop to halt a market meltdown in 2009 but has failed to reach those heights since. At successive meetings, Germany has pressed the United States and others to do more to tackle their debts. Washington in turn has urged Berlin to do more to increase demand.


Backing in the communiqué for the use of domestic monetary policy to support economic recovery reflected the U.S. Federal Reserve's commitment to monetary stimulus through quantitative easing, or QE, to promote recovery and jobs.


QE entails large-scale bond buying -- $85 billion a month in the Fed's case -- that helps economic growth but has also unleashed destabilising capital flows into emerging markets.


A commitment to minimize such "negative spillovers" was an offsetting point in the text that China, fearful of asset bubbles and lost export competitiveness, highlighted.


"Major developed nations (should) pay attention to their monetary policy spillover," Vice Finance Minister Zhu Guangyao was quoted by state news agency Xinhua as saying in Moscow.


Russia, this year's chair of the G20, admitted the group had failed to reach agreement on medium-term budget deficit levels and expressed concern about ultra-loose policies that it and other emerging economies say could store up trouble for later.


On currencies, the G20 text reiterated its commitment last November, "to move more rapidly toward mores market-determined exchange rate systems and exchange rate flexibility to reflect underlying fundamentals, and avoid persistent exchange rate misalignments".


It said disorderly exchange rate movements and excess volatility in financial flows could harm economic and financial stability.


(Additional reporting by Gernot Heller, Lesley Wroughton, Maya Dyakina, Tetsushi Kajimoto, Jan Strupczewski, Lidia Kelly, Katya Golubkova, Jason Bush, Anirban Nag and Michael Martina. Writing by Douglas Busvine. Editing by Timothy Heritage/Mike Peacock)



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IHT Rendezvous: Taming the Runaway U.S. Budget

WASHINGTON — If Democrats and Republicans can’t agree on a deficit reduction plan, in two weeks automatic budget cuts will kick in that could severely weaken the U.S. economy and the American military.

As I write in my latest Letter From Washington, there are sensible ways to avoid this, though it is far from certain dysfunctional Washington can achieve them.

One reason is that so much of spending is now hard-wired into the system.

Representative John Dingell of Michigan is the only current member of Congress who served in 1962. Yet he would hard-pressed to recall the federal budget of a half century ago.
In those days, more than two-thirds, 67.5 percent, of spending was discretionary, meaning it had had to be appropriated annually. Almost half the budget went to defense and about 18 percent went to discretionary domestic programs.
Mandatory spending, or entitlements, was only a little more than a quarter of the budget, and more than half of that went for Social Security.
That picture is turned upside down in the current fiscal year. Almost 60 percent of the budget is mandatory spending with one $1 of every $5 going to Social Security and $1 in $7 to Medicare and Medicaid. Defense is almost 19 percent, a fraction of what it was in 1962, and domestic discretionary programs, at a little more than 16 percent, takes a smaller proportional bite out of the federal budget than they did a half century ago despite the creation of so many new initiatives.
This isn’t going to change. “Regardless of who is president, what will be spent in any given year will be determined by laws that are already set, some decades earlier,” says Stan Collender, an expert on the federal budget.
Despite the large budget deficits in recent years, interest on the debt payments, at 6.5 percent this year, is almost precisely what it was a half century ago. These payments, however, are expected to climb steadily over the next 50 years. Under current projections, Mr. Collender says, they are on track to become the fastest-growing area of the federal budget.

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Oscar Pistorius's Shocking Fall from Grace in 5 Clicks





After an inspiring ascension to stardom, the Olympic athlete faces murder charges in a baffling turn of events








Credit: Eddie Mulholland/REX USA



Updated: Friday Feb 15, 2013 | 10:00 AM EST
By: Kiran Hefa




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UN warns risk of hepatitis E in S. Sudan grows


GENEVA (AP) — The United Nations says an outbreak of hepatitis E has killed 111 refugees in camps in South Sudan since July, and has become endemic in the region.


U.N. refugee agency spokesman Adrian Edwards says the influx of people to the camps from neighboring Sudan is believed to be one of the factors in the rapid spread of the contagious, life-threatening inflammatory viral disease of the liver.


Edwards said Friday that the camps have been hit by 6,017 cases of hepatitis E, which is spread through contaminated food and water.


He says the largest number of cases and suspected cases is in the Yusuf Batil camp in Upper Nile state, which houses 37,229 refugees fleeing fighting between rebels and the Sudanese government.


Read More..

G20 steps back from currency brink, heat off Japan


MOSCOW (Reuters) - The Group of 20 nations declared on Saturday there would be no currency war and deferred plans to set new debt-cutting targets, underlining broad concern about the fragile state of the world economy.


Japan's expansive policies, which have driven down the yen, escaped direct criticism in a statement thrashed out in Moscow by policymakers from the G20, which spans developed and emerging markets and accounts for 90 percent of the world economy.


Analysts said the yen, which has dropped 20 percent as a result of aggressive monetary and fiscal policies to reflate the Japanese economy, may now continue to fall.


"The market will take the G20 statement as an approval for what it has been doing -- selling of the yen," said Neil Mellor, currency strategist at Bank of New York Mellon in London. "No censure of Japan means they will be off to the money printing presses."


After late-night talks, finance ministers and central bankers agreed on wording closer than expected to a joint statement issued last Tuesday by the Group of Seven rich nations backing market-determined exchange rates.


A draft communiqué on Friday had steered clear of the G7's call for economic policy not to be targeted at exchange rates. But the final version included a G20 commitment to refrain from competitive devaluations and stated monetary policy would be directed only at price stability and growth.


"The mood quite clearly early on was that we needed desperately to avoid protectionist measures ... that mood permeated quite quickly," Canadian Finance Minister Jim Flaherty told reporters, adding that the wording of the G20 statement had been hardened up by the ministers.


As a result, it reflected a substantial, but not complete, endorsement of Tuesday's proclamation by the G7 nations - the United States, Japan, Britain, Canada, France, Germany and Italy.


As with the G7 intervention, Tokyo said it gave it a green light to pursue its policies unchecked.


"I have explained that (Prime Minister Shinzo) Abe's administration is doing its utmost to escape from deflation and we have gained a certain understanding," Finance Minister Taro Aso told reporters.


"We're confident that if Japan revives its own economy that would certainly affect the world economy as well. We gained understanding on this point."


Flaherty admitted it would be difficult to gauge if domestic policies were aimed at weakening currencies or not.


NO FISCAL TARGETS


The G20 also made a commitment to a credible medium-term fiscal strategy, but stopped short of setting specific goals as most delegations felt any economic recovery was too fragile.


The communiqué said risks to the world economy had receded but growth remained too weak and unemployment too high.


"A sustained effort is required to continue building a stronger economic and monetary union in the euro area and to resolve uncertainties related to the fiscal situation in the United States and Japan, as well as to boost domestic sources of growth in surplus economies," it said.


A debt-cutting pact struck in Toronto in 2010 will expire this year if leaders fail to agree to extend it at a G20 summit of leaders in St Petersburg in September.


The United States says it is on track to meet its Toronto pledge but argues that the pace of future fiscal consolidation must not snuff out demand. Germany and others are pressing for another round of binding debt targets.


"We had a broad consensus in the G20 that we will stick to the commitment to fulfill the Toronto goals," German Finance Minister Wolfgang Schaeuble said. "We do not have any interest in U.S.-bashing ... In St. Petersburg follow-up-goals will be decided."


The G20 put together a huge financial backstop to halt a market meltdown in 2009 but has failed to reach those heights since. At successive meetings, Germany has pressed the United States and others to do more to tackle their debts. Washington in turn has urged Berlin to do more to increase demand.


Backing in the communiqué for the use of domestic monetary policy to support economic recovery reflected the U.S. Federal Reserve's commitment to monetary stimulus through quantitative easing, or QE, to promote recovery and jobs.


QE entails large-scale bond buying -- $85 billion a month in the Fed's case -- that helps economic growth but has also unleashed destabilising capital flows into emerging markets.


A commitment to minimize such "negative spillovers" was an offsetting point in the text that China, fearful of asset bubbles and lost export competitiveness, highlighted.


"Major developed nations (should) pay attention to their monetary policy spillover," Vice Finance Minister Zhu Guangyao was quoted by state news agency Xinhua as saying in Moscow.


Russia, this year's chair of the G20, admitted the group had failed to reach agreement on medium-term budget deficit levels and expressed concern about ultra-loose policies that it and other emerging economies say could store up trouble for later.


On currencies, the G20 text reiterated its commitment last November, "to move more rapidly toward mores market-determined exchange rate systems and exchange rate flexibility to reflect underlying fundamentals, and avoid persistent exchange rate misalignments".


It said disorderly exchange rate movements and excess volatility in financial flows could harm economic and financial stability.


(Additional reporting by Gernot Heller, Lesley Wroughton, Maya Dyakina, Tetsushi Kajimoto, Jan Strupczewski, Lidia Kelly, Katya Golubkova, Jason Bush, Anirban Nag and Michael Martina. Writing by Douglas Busvine. Editing by Timothy Heritage/Mike Peacock)



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