CALLS FOR BANS ON 'VOODOO FINANCE' - France and Germany have written to EU commission president José Manuel Barroso demanding an immediate investigation of the role and effect of speculative trading in credit default swaps on countries' bonds.
They have also urged the EU to consider banning the speculative trade and setting up a compulsory register of derivatives trading.
Justin Urquhart-Stewart of Seven Investment Management in London explained that credit default swaps are a form of insurance against default, but the French and Germans are concerned that trading in these has turned into a form of betting on other people's assets - particularly Greek assets.
The analyst said people had been trading on insurance in Greek bonds, sparking worries that this was about speculation rather than investment. He said the French and Germans saw this as 'voodoo finance'.
Asked about the Forbes rich list - topped by Mexican Carlos Slim - Mr Urquhart-Stewart said the rich were getting richer, but the rich were also moving east, and that was where the wealth was being created.
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NEWS IN BRIEF - Chinese consumer price inflation jumped to a 16-month high in February, while a raft of economic data displayed broad strength.
The pace of credit growth halved in February, as expected, but some economists said the country's central bank would probably not wait long before increasing banks' required reserves for a third time this year and perhaps even raising interest rates.
Food and agri-business group Origin Enterprises has reported pre-tax profits of €11.3m for the six months to the end of January, down from €17.1m a year earlier. Revenue fell by 16% to €596.8m. Profits in the food division were down 12% to just over €8m.
CEO Tom O'Mahony said conditions in the food business were 'extremely competitive', but Origin expected its full-year results to be in line with market expectations.
