in London, said by phone Oct. 4. With fewer diesel barrels demanded at home, a lot of these Asian countries, including India, have already boosted exports. Winter Peaks The premium paid for diesel barges over the ICE Futures Europe gasoil contract soared during the past two winter seasons, climbing as high as $64 a metric ton more than the benchmark in October 2011 and November last year, according to data compiled by Bloomberg. It was about $26 on Oct. 7, equating to an outright price of $951.75 a ton, the data show. Profits from converting crude into diesel, as approximated by the crack spread between gasoil and Brent crude futures, will stay near current levels this winter, or about 30 percent below the previous seasons peak, five of the refining executives in the Bloomberg survey said. The Sept. 19 poll included plant managers and vice presidents of companies from Italy to Poland . The crack spread averaged $15 a barrel during the past month, compared with $20 one year ago. With Europe now exiting its recession, theres hope for the regions refiners that fuel use will pick up, said Seth Kleinman, head of energy strategy at Citigroup Inc. in New York. The European economy appears to be going through a recovery, which should result in some stronger consumption demand, he said Sept. 19. A jump in European demand may entice local refiners to boost output, limiting imports from the U.S., Vienna-based researcher JBC Energy GmbH said in an Oct.
debt loses some appeal in Hong Kong In June, China struck a similar agreement with the Bank of England worth up to 200 billion yuan. The deal with the ECB comes as political gridlock in the U.S. weakens the U.S. dollar against many other global currencies. A spokesperson for the ECB said the deal had been in the works for the last few months. China’s wine obsession spurs Bordeaux sales The yuan, also called the renminbi, currently trades directly with the U.S. dollar, the Australian dollar and the Japanese yen . In September, the Bank for International Settlements announced the Chinese yuan was the ninth most traded currency in the world. The yuan was involved in 2.2% of foreign exchange trading worldwide in April, the period examined by the report, more than double its share in April 2010. The dollar was involved in 87% of all trades, the euro was part of 33% of trades, and the Japanese yen was involved in 23%.
Factbox: Europe’s slow march to repair its banks
Higher buffers strengthen banks to withstand shocks, such as a slump in property prices or recession. Banks with higher-than-average capital attract deposits. * Earlier this year, the European Commission, the EU executive, sharpened the bloc’s state aid rules to share the costs of bank failures, stipulating that shareholders and junior bondholders will share the burden of saving a stricken bank. * In March, the bailout of Cyprus set a new precedent for saving banks, by also forcing losses on senior bondholders and depositors with more than 100,000 euros ($135,000). EU finance ministers agreed in June to adapt a similar but milder approach in EU law. The framework needs to be finalized with lawmakers in the European Parliament before coming into force. * In September, Europe took a significant step towards a single banking framework for the euro zone, known as banking union. EU lawmakers granted new powers to the European Central Bank to oversee the currency bloc’s 6,000 banks in 17 countries. Supervision by the ECB is expected to start towards the end of 2014. Banking union is conceived as a three-stage process involving a single bank supervisor, a single resolution authority and a single deposit-guarantee scheme. * Now comes the much harder step of establishing a single euro zone authority to wind up bad banks, which is resisted by Germany because as Europe’s largest economy it fears being forced to pay up for other countries’ banking losses. * In the meantime, the European Central Bank will launch a series of health checks on euro zone banks, as part of its supervisory role. But if, as expected, it reveals the extent of bad loans at European banks, the bloc needs ways to repair its banks and recapitalize them.