No jobless relief is in sight for the next year and a half for the 34 nations of the Organization for Economic Cooperation and Development, the organization warned, as those without work for long stretches lose skills. Noting an alarmingly high unemployment outlook for younger workers, OECD Secretary-General Angel Gurria said governments must "use every possible means at their disposal to help job-seekers, especially young people, by removing barriers to job creation and investing in their education and skills"

India's Singh is said to be preparing plan to boost economy

Savings in government expenditures, investment, and the fiscal and current-account deficits are among the areas India's prime minister, Manmohan Singh, is focusing on as he prepares proposals to spur the nation's lagging economy, according to Home Minister P. Chidambaram. "I think the prime minister-cum-finance minister is contemplating a number of measures to tighten revenue collection and to control wasteful expenditure. We have already imposed across-the-board cuts on non-plan expenditure," Chidambaram said. 

Eurozone ministers agree on aid outlines for Spain

The first, 30 billion-euro installment of a 100 billion-euro bailout for Spain will be on its way by the end of the month, as agreed by Europe's finance ministers early Tuesday. And, as expected, Spain was granted an additional year to bring its public deficit into line with the EU limit of 3% of gross domestic product. Meanwhile, Italy may be next to seek aid from the EU, and Germany continues to question the bailout fund's compatibility with the German constitution. 

China trade surplus grows on struggling economies at home, abroad

China's export and import growth both eased last month, with a widening surplus stemming from especially low growth in imports due to faltering domestic demand. Combined, the June figures indicated slowing in China's economy and the global economy at large. "We are still facing a more complicated and severe situation in foreign trade," General Administration of Customs spokesman Zheng Yuesheng said. 

U.S. consumer credit surged in May

In a possibly alarming sign, U.S. consumer credit rose by an unexpectedly large amount in May, suggesting that Americans may be struggling financially. The growth was led by credit card borrowing, which saw its biggest increase in nearly five years, according to the Federal Reserve. The figures are particularly ominous in light of ebbing consumer confidence and slower job creation. 

New York Fed heard about Libor manipulation early on

The Federal Reserve Bank of New York says that over the course of "many months" beginning in 2007, it received "anecdotal" reports of problems with Barclays' Libor submissions. The revelation raises questions about steps taken by regulators to address the problem. 

Opinion: Lack of bank oversight is a global shame

The U.K.'s Libor scandal is seen as just the latest signal that banking regulation is broken, not just in the U.K. but internationally.

Market Activities
INTERNATIONAL MARKETS OVERVIEW

Worries over company results as earnings season develops sent U.S. stocks lower Tuesday, with the S&P 500 ending the day 0.8% lower. In Europe, however, tech stocks and a brighter outlook for Spain lifted shares to end a run of four down days. Here is a continuously updated list of global stock indexes. 

Asian shares may face pressure as companies post earnings

Asian stocks might be in for a bumpy ride despite a rosy outlook at the end of June. The concern as companies across the region prepare to post earnings is that the effects of a deepening global slowdown will become evident as the latest results are reported. 

Economic Trends & Outlook
South Korean interest rates are seen holding steady

High inflation expectations will lead the Bank of Korea to keep its key interest steady for the 13th month, despite signs that easing may be in order in light of the eurozone crisis, according to a poll of analysts by Yonhap Infomax. "Some central banks have been cutting their key rates to support faltering growth, but local economic conditions indicate that it is not yet the timing to change the course of the monetary policy," said Kim Yoon-gee, a senior economist at the Daishin Economic Research Institute. 

China tops Japan with 79 companies among Fortune 500

China is now the second-leading country in the world as measured by the Fortune 500 list, with 79 companies named. The U.S. leads with 132 companies, and Japan is third with 68.

Philippines' May exports reach 17-month high

Philippine exports were up nearly 20% in May from a year earlier, totaling $4.931 billion and marking a 17-month high. However, in the key electronics sector, exports edged down 0.7%, somewhat tempering the outlook for the rest of the year. "We are still hopeful that other sectors will be able to drive total exports while electronics exports are weak," said Sergio R. Ortiz-Luis Jr., president of the Philippine Exporters Confederation. 

3 Chinese banks provide $1.1 billion for Indian power project

In a first, three Chinese banks have agreed to $1.1 billion in financing for a power project in central India by India's Reliance Power. Although China and India are major trading partners, relations are sometimes strained. The loan, which sharply reduces Reliance's previous cost of funding from Indian banks, may indicate an easing of tensions.

Capital Markets & Financial Products

Foreign losses widen in 2011 for South Korean securities firms

The combined deficit for South Korean securities firms' foreign branches widened sharply last year to $93.8 million from $62.6 million in 2010, according to figures compiled by the Financial Supervisory Service. Big losses in Hong Kong and strains from the eurozone crisis contributed to the poor results. 

Tokyo Stock Exchange bids to buy Osaka exchange

The Tokyo Stock Exchange is preparing a bid to purchase Osaka Securities Exchange for 480,000 yen per share. The merger of Japan's two largest stock exchanges would form the world's third-largest exchange. 

Industry & Regulatory Update
Smaller Chinese companies make expensive exit from U.S. stock market

Questions raised last year in connection with Sino-Forest Corp. about accounting and corporate-governance standards at Chinese companies are proving expensive this year. China Development Bank is now providing more than $1 billion to help smaller Chinese companies leave the U.S. stock market after their share prices collapsed following the Sino-Forest allegations by short-selling firm Muddy Waters. 

People & Personalities
Chen Peng joins Dimensional Fund Advisors as Asia chief

Chen Peng is leaving Morningstar in Chicago to join Dimensional Fund Advisors as CEO for Asia, ex-Japan. Chen initially will operate from new offices in Hong Kong and Singapore.

Ethics & Standards
Survey: 1 in 4 financial executives say unethical practices are necessary

About 1 in 4 financial executives on Wall Street and in Britain say in a survey that unethical or illegal conduct is a necessity, and 1 in 6 admit they would break the law if they could avoid being caught. The survey by law firm Labaton Sucharow also found that 39% of respondents think their competitors have engaged in illegal or unethical conduct. 

Hedge fund manager sought in China is on "tour" in U.S.

A hedge fund manager for Shanghai's Purple Stone Investment, which is under investigation by Chinese authorities, is said to be on a months-long "study tour" in the U.S. Zhang Chao is suspected of collusion with another Chinese firm, Huafu Fund Management, in the buying and selling of shares. 

India extends amnesty offer to wealthy tax evaders

Wealthy Indians suspected of dodging taxes by hiding funds at HSBC's Swiss unit have been offered amnesty. The condition is that the more than 100 accused evaders immediately repatriate the funds and pay the back taxes. "It's a pragmatic approach," said R.K. Gupta, managing director at Taurus Asset Management.