The FTSE fell 0.35% as oil and gold prices recovered after China's interest rate hike. The surprise rate increase in China had limited impact on its growth but affected commodity prices elsewhere. European leaders should consider an economic strategy focused on growth and employment rather than austerity alone. This could involve modifying the EU budget, expanding investment funds, and penalizing banks that pay bonuses with public money. As the largest economic area, the EU could pioneer a new financial system.

1. Bauwens Marieke

2.  FTSE falls
 Oil and gold recover after China’s rate rise
 A new economics for the EU
 Conclusion

3.  FTSE = “The Footsie”
 lost 20.1 points, or 0.35%, to 5,727
 Increase their equity buffer
 The aim ?
 African Barrick Gold
 Vodafone Group

4.  Brevan Howard = one of Europe's biggest and
most respected hedge funds
 Hedge funds?

5.  China’s surprise decision to raise interest rate
 Oil price 80 $ a barrel
 Chinese growth?
 The actual impact of this rate
hike might be limited on the
overall growth story in China.

6.  Gold
 a recovering decrease of 2,5%
 Gold climbed to $ 1,341 an ounce
 after hitting two-week low of $ 1,334.45
Far below the all-time high of $1,387.10
Analysts conclude : it’s an excuse for profit-trading

7.  EU leaders = Should consider an economic/
investment strategy
 NOT austerity
 But Growth and employment
Two seemingly rival agendas
 Limit the increase of the union’s budget.
 Envisages a treaty change to impose tougher
sanctions on over-spending members of the
euro zone. = to prevent debt crisis

8. 1. EU leaders = Modify the composition of the
€140billion union budget
2. The 27 member-states = Expand the remit
and funds of ‘the European Investment
Bank’
3. The EU = starting with tough penalties for
banks that use public money for bonuses
As the world's single biggest economic space, the EU
could pioneer a new economic and financial settlement.

9.  Economy, money, finance,…
 Price in China increase ( )
Result = Price in Europe
 The stock exchange
= an impact on the
whole world

10. Bauwens Marieke
2FV2
J. Casteleyn
English Finance & Insurance 1