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WorldtradeLifeafterDohaEvenasmallglobaltradedealiswelcome.ButafreshapproachisnowneededEconomistDec14th2013|Fromtheprintedition

Manytimesoverthepast12yearstheeffortstoreachanagreementinthe“Doharound”ofworld-tradenegotiationshaveseemeddoomed.Yetreports,includingsomebythisnewspaper,ofthedeathofDohahaveprovedtobegreatlyexaggerated.InBalionDecember7thadealwasdone.

True,itisamodestone,coveringmostly“tradefacilitation”(simplifyingcustomsprocedures)andnotthebroadliberalisationthatwastheaimofDoha.ButitisthefirstglobaldealsincetheWorldTradeOrganisation(WTO)cameintoexistencein1995.Itincludessomeusefulstuff:byoneestimate,cuttingcustomsredtapecouldraiseannualglobaloutputby$400billion,withmuchofthegainflowingtodevelopingeconomies.AnditisapersonaltriumphforRobertoAzevêdo(pictured),theBrazilianwhobecametheWTO’sdirector-generalinSeptemberandwhoalwaysinsistedadealwaspossible.NowMrAzevêdoneedstomakethemostofhismomentum.ThemainlessonisnottorepeatthesorryhistoryoftheDoharound.Ithastakenyearsofeffortandseveralnear-deathexperiencestoproducethissmallsuccess.TheproblemhasbeentheWTO’sall-or-nothingapproachofseekingajumboaccordwhichhastobeapprovedbyall159members.Intheorythisisthewaytoensurethattradeliberalisationistrulyglobal.Inpractice,witheachcountryabletowieldaveto,itisarecipefordeadlock—andforhandingpowertoobstructionists.Lastweek’sdealwasachievedonlyaftertheWTOlowereditssightsandsettledonalowest-common-denominatorpartoftheDohaagenda,leavingoutmoredifficulttopicssuchasfarmtradeandintellectualproperty.AndeventhenanagreementwasreachedonlywhenotherpartiescavedintodemandsfromIndia,whosepoliticiansstubbornlyinsistedongettinganindefiniteexemptionfromWTOrulesforitsfarmsubsidies(seearticle).BeyondBali

Theactioninthetrade-liberalisationworldthesedaysisnotinsidetheWTObutwithregionalagreements.TherecentagreementinprinciplebetweentheEuropeanUnionandCanadaisapioneeringexample.OtherbigpactsundernegotiationaretheTrans-PacificPartnership(involvingadozencountriesincludingAmericaandJapan,nowsadlysettomisstheirend-2013deadline)andtheTransatlanticTradeandInvestmentPartnershipbetweenAmericaandtheEU.Eventhelong-moribundtalksbetweentheEUandMercosurareshowingsignsoflife(seearticle).Regionaldealsarebetterthannoprogressatall,buttheyarenotideal.Ratherthanleadingtomoretradeoverall,theycandivertitfromcountriesoutsidethepacttothosewithinit.Andastheyproliferate,theyriskcreatingaBalkanisedworldoflargetradeblocksthattrademoreandmoreinternallyandlessandlesswiththeoutsideworld.TheWTOshouldworkagainstBalkanisationnotbyopposingregionalpacts,butbytryingtodrawthemintotheglobalsystem.Afterthebruisingexperienceofrecentyearsthechancesofbrokinganotherbigglobaldeallookvanishinglysmall.Amorepromisingrouteiswhatisknowninthehideousjargonofthetradeworldasplurilateralagreements—dealswherebygroupsofcountriesgettogethertoagreetoliberalisetheirrulesononesortofgoodorservice,withothersfreetojoinasandwhenitsuitsthem.Theyarefarsimplertonegotiatethanmultilateralagreements.Theysettherightincentivesforlaggards:getonboardorgetleftbehind.And,asotherssignup,theycanturnintoglobalones.Suchcoalitionsofthewillinglookparticularlypromisingfortradeinservicesandininformationtechnology.Otherareasthatcouldbenefitfromthisstrategyincludeinvestmentrules(tochipawayatsubsidies)andtradeinenvironmentalgoodsandservices(coveringeverythingfromseptictanksandairfilterstogreenconsulting).Chinaseemstoseethisasapromisingwayforward,despiteresistancefromitsprotectedstate-ownedenterprises.Ideallyeveryregionaldealshouldalsobeopentoothers.SoGhana,say,couldsignuptotheEU-Canadadeal,providingitmettheconditions,or,morecontroversially,ChinacouldjoinTPP.Thatwillirkthosewhoarebuildingregionaltradepactsaspoliticalfortresses.Butthatisthepoint.Nowisnotthetimetogiveupontheprinciplethatfreecommerceisagoodthinginitself.GranddealsmaybebeyondtheWTO’sreachforthemoment,butsmallsuccessesmaygrowintobiggerones.TheVolckerruleMorequestionsthananswersApushtomakeAmerica’sbankssafercreatesnewuncertaintiesEconomist

Dec14th2013|NEWYORK|Fromtheprintedition

THE37wordsinsertedintothe848Dodd-Franklaw①overhaulingtheregulationofAmerica’sfinancialinstitutionsseemedinnocentenough.Lawmakerswantedregulatorstocomeupwithstricturesthatwouldpreventbanksfromgamblingwithdepositsinsuredbythefederalgovernment.Theresultingrule,namedafteraprominentproponent,PaulVolcker,aformerheadoftheFederalReserve,prohibitsbanksfrom“proprietarytrading”②,meaningtransactionsconductedpurelyfortheirowngain,ratherthantoserveclients.OnDecember10thfivedifferentregulatoryagenciesapprovedtheVolckerrule③;itwillcomeintoforce,awkwardlyenough,onApril1st.Duringthethreeyearsbetweenitsconceptionandbirth,therulehasgrownintosomethingmuchbiggerandmorecomplicatedthanitsoriginswouldhavesuggested.Thefinalversionboasts963pages,andcontains2,826footnotesaswellas1,347questions.(Muchofthisisapreambleaddressingpubliccomments,butthatwillnonethelessserveasguidancefortherule’simplementation.)Theimmediateimpactofallthisverbiagewillbesmall.America’sbiggestbankshadalreadyeliminatedthemostobviousformsofproprietarytradinginanticipationoftherule.Theirsharepricesroseslightlyafteritsrelease,perhapsoutofreliefthatitwasnotasburdensomeassomehadexpected.

ByJunelargebanksmustbeginreportingsomedata;fullcompliancewiththeruleisnotrequireduntilJuly21st2015.Theruleaimsnotjusttocurbrisk-takingdirectly,buttoenhancemonitoringofittoo.Bosseswillhavetosignstatementsattestingtotheexistenceofcomplianceschemes,althoughnottocomplianceitself—thekindofcarefullyconstructedarrangementthatunderscoreshowveryconsciousbankexecutivesareofrisk,ifonlyontheirownaccount,asitwere.Thefinalrulecouldhavebeenmoreonerousthanitwas.Anearlierdrafthadproposedprohibitingbanksfrombuyingsecuritiesunlesstheyknewthattheirclientswantedtobuythem.Ineffect,thiswouldhaveprevented“market-making”,wherebybankskeepasupplyofsecuritiesonhand,sothattheycansellthemtoacustomerondemand,orbuythemfromoneevenwhentheydonothaveanotherclientlineduptopassthemonto.

Withouttheliquiditybanksprovideinthisway,pensionfundsandinsurerswouldfinditharder,moretime-consumingandmoreexpensivetobuyandsellbondsandotherfinancialinstruments.Therulealleviatesthisworrysomewhatbyallowingbankstobuysecuritiestomeet“reasonablyexpected”demandfromcustomers.Inpracticebankswillprobablyrespondbymakingmarketsforanarrowrangeofsecuritiesthatalreadytradefrequently,andthusmightreasonablybeexpectedtodosoinfuture.Meanwhile,thesecuritiesthatnowchangehandslessfrequentlyarelikelytobeshunned,makingthemevenhardertotrade.Governmentbondsareexemptedfromtheserules,sobanksmaypileintothem,althoughtheyarecurrentlytradingatunusuallyhighprices,andsoarefarfromrisk-free.

Anotherworryrelatestotherule’streatmentofhedging.Banksoftentrytooffsetsomeoftheriskstheyincurby,forinstance,buyingderivativesthatwouldriseinvalueifdefaultsonloansorbondsweretoincrease.Thenewrulewillforcebankstotieeachhedgetotherisksofspecificpositionstheyhavetaken.Yettherearefewperfecthedgesthatzigexactlyasthecountervailinginvestmentzags.Instead,banksoftenresorttobig“portfoliohedges”,designedtoprotectagainstbroadriskssuchasaneconomicdownturnorariseininterestrates,eventhoughtheymaynotperfectlycorrelatewithitstradingposture.Regulators,however,seesuchhedgesasriskyproprietarytradingindisguise(JPMorganChase,anAmericanbank,lost$6billionononelastyear).TheVolckerrulebansthem.Where,precisely,thelinewillbedrawnbetweenmarket-makingandproprietarytrading,orbetweenlegitimateandspecioushedging,isanyone’sguess.“Aspecifictrade”,explainedDanielTarullo,thegovernoroftheFederalReserveresponsibleforbanksupervision,“maybeeitherpermissibleorimpermissibledependingonthecontextandcircumstanceswithinwhichthetradeismade.”Thissubjectivityhintsattheto-ingandfro-ingtocome,asregulatorsandcourtsgraduallyclarifytherulewithprecedents.

Unpleasantsurprisesmayyetemerge.TheAmericanBankingAssociation,apressuregroup,worriesthattheruleunintentionallybarssmallbanks,whicharelargelyexemptedfromitsstrictures,frominvestinginfinancialinstrumentsthatcurrentlyformabigpartoftheircapital.JebHensarling,chairmanoftherelevantcommitteeoftheHouseofRepresentatives,claimsitwillincreaseelectricityprices,dentpensionsandconstrictcredit.“WeareleftwithonemoreincomprehensibleWashingtonregulation”,hesaid,“thatwilldonothingtohelpournation.”DanielGallagher,adissentingmemberoftheSecuritiesandExchangeCommission(SEC),oneofthefiveagenciesthatapprovedtherulethisweek,complainedthatheandhiscolleagueshadbeengivenonlyfivedaystoreviewthereviseddraftoftherulebeforedecidingonit.“Allwecansayforsureisthatthefinalrulesetjettisonsscoresofflawedassumptionsandincorrectconclusionsinfavourofnew,unprovenassumptionsandconclusions,”henoteddryly,callingitshastyadoption“theheightofregulatoryhubris”.

TheSEC’srushtovote,MrGallagherclaimed,wastheresultof“intensepressuretomeetanutterlyartificial,whollypoliticalend-of-yeardeadline.”TheadministrationofBarackObamahasbeenurgingregulatorstogetamoveon,tofulfilitspromisetoreininrecklessbankers.Whereaspriorversionsoftherulehadbeenreleasedforcomment,thefinalonewasmadepubliconlyafterithadbeenadopted,despitesignificantchanges.TheSECalsodidnotconductacost-benefitanalysisoftherule,asitnormallydoesfornewregulations.Officialssaythelawsfromwhichtherulederivesitsauthoritydonotrequiresuchastudy,buttherewasnothingtostoptheagenciesinvolvedfromrequestingone.Theirfailuretodosodeepenssuspicionsthattherulewillcausemoretroublethanitaverts.“TheWallStreetreformbillwill–forthefirsttime–bringcomprehensiveregulationtotheswapsmarketplace.Swapdealerswillbesubjecttorobustoversight.Standardizedderivativeswillberequiredtotradeonopenplatformsandbesubmittedforclearingtocentralcounterparties.TheCommissionlooksforwardtoimplementingtheDodd-Frankbilltolowerrisk,promotetransparencyandprotecttheAmericanpublic.”CFTCChairmanGaryGenslerPDFProprietarytrading(also"proptrading"orPPT)occurswhenafirmtradesstocks,bonds,currencies,commodities,theirderivatives,orotherfinancialinstruments,withthefirm'sownmoneyasopposedtoitscustomers'money,soastomakeaprofitforitself.Theymayuseavarietyofstrategiessuchasindexarbitrage,statisticalarbitrage,mergerarbitrage,fundamentalanalysisvolatilityarbitrageorglobalmacrotrading,muchlikeahedgefund.Manyreportersandanalystsbelievethatlargebankspurposelyleaveambiguoustheamountofnon-proprietarytradingtheydoversustheamountofproprietarytradingtheydo,becauseitisfeltthatproprietarytradingisriskierandresultsinmorevolatileprofits.TheVolckerRulewasfirstpubliclyendorsedbyPresidentObamaonJanuary21,2010.Theproposalspecificallyprohibitsabankorinstitutionthatownsabankfromengaginginproprietarytradingthatisnotatthebehestofitsclients,andfromowningorinvestinginahedgefundorprivateequityfund,andalsolimitstheliabilitiesthatthelargestbankscanhold.Underdiscussionisthepossibilityofrestrictionsonthewaymarket-makingactivitiesarecompensated;traderswouldbepaidonthebasisofthespreadofthetransactionsratherthananyprofitthatthetradermadefortheclient.OnJanuary21,2010,underthesameinitiative,PresidentObamaannouncedhisintentiontoendthementalityof"Toobigtofail."InaFebruary22,2010lettertoTheWallStreetJournal,fiveformerSecretariesoftheTreasuryendorsedTheVolckerRuleproposals.AsofFebruary23,2010,theUScongressbegantoconsideraweakerbillallowingfederalregulatorstorestrictproprietarytradingandhedgefundownershipbybanks,butnotprohibitingtheseactivitiesaltogether.SenatorsJeffMerkley,DemocratofOregon,andCarlLevin,DemocratofMichigan,introducedthemainpieceoftheVolckerRule–itslimitationsonproprietarytrading–asanamendmenttothebroaderDodd-FrankfinancialreformlegislationthatwaspassedbytheUnitedStatesSenateonMay20,2010.DespitehavingwidesupportintheSenate,theamendmentwasnevergivenavote.WhentheMerkley-LevinAmendmentwasfirstbroughttothefloor,SenatorRichardShelby,RepublicanofAlabama,objectedtoamotiontovoteontheamendment.MerkleyandLevinrespondedbyattachingtheamendmenttoanotheramendmenttothebillputforthbySenatorSamBrownback,RepublicanofKansas.Shortlybeforeitwasduetobevotedupon,Brownbackwithdrewhisownamendment,thuskillingtheMerkley-LevinamendmentandtheVolckerRuleaspartoftheSenatebill.

Despitethisvote,thisproposalmadeitintothefinallegislationwhentheHouse-SenateconferencecommitteepassedastrengthenedversionoftherulethatincludedthelanguagepreparedbySenatorsMerkleyandLevin.TheoriginalMerkley-Levinamendmentandthefinallegislationbothcoveredmoretypesofproprietarytradingthantheoriginalruleproposedbytheadministration.Italsobannedconflictofinteresttrading.SenatorLevincommentedontheimportanceofthataspect:"WearealsopleasedthattheconferencereportincludesstronglanguagetopreventtheobsceneconflictsofinterestrevealedinthePermanentSubcommitteeonInvestigationshearingwithGoldmanSachs.Thisisanimportantvictoryforfairnessforinvestorssuchaspensionfundsandfortheintegrityofthefinancialsystem.AstheGoldmanSachsinvestigationshowed,businessasusualonWallStreethasfortoolongallowedbankstocreateinstrumentswhicharebasedonjunkyassets,thensellthemtoclients,andbetagainsttheirownclientsbybettingontheirfailure.ThemeasureapprovedbytheconfereesendsthattypeofconflictwhichWallStreethasengagedin."However,confereeschangedtheproprietarytradingbantoallowbankstoinvestinhedgefundsandprivateequityfundsattherequestofSenatorScottBrown(R-Mass.),whosevotewasneededintheSenatetopassthebill.ProprietarytradinginTreasurys,bondsissuedbygovernment-backedentitieslikeFannieMaeandFreddieMac,aswellasmunicipalbondsisalsoexempted.SincethepassageoftheFinancialReformBill,manybanksandfinancialfirmshaveindicatedthattheydon'texpectTheVolckerRuletohaveasignificantimpactontheirprofits.PDFTeslatogambleonNevadaelectriccarplantByRichardWatersinSanFrancisco

FinancialTimesSept03,2014TeslaMotorsisexpectedtoannounceonThursdaythatitismovingaheadwithbuildingagiantbatteryplantinNevada,asitplacesamultibillion-dollarbetonbringingelectriccarstothemassmarketby2017.Theproposedfacilityhasbeendubbedthe“Gigafactory”byTeslachiefexecutiveElonMusktoreflecttheaggregatedpowerofallthebatterieshehopestoproducethere,thoughthenamehasalsocometosymboliseMrMusk’sownoutsizedambitions.Hehaspromisedthattheplant’soutputwilltopthetotalworldproductionoflithiumionbatteriesfor2013,whencellswithacombinedcapacityofnearly35mgigawatthourswereproduced.MakingbatteriesinmassivevolumesisakeypartofMrMusk’shopesofdrivingunitcostsdowntothelevelwhereelectriccarscanbecomeaffordabletoamuchlargermarket.Teslahassaidthatitaimstocutthecostsofbatterypacksby30percent,whichwillbeneededtohitthepricetargetof$35,000thatithassetforitsso-calledthird-generationvehiclewhilestillgivingitarangeofatleast200miles.TeslaconfirmedinJunethatPanasonicwouldbeapartnerinthefactoryandmakelithiumioncellsinsidethefacilityforinclusioninTesla’sbatterypacks.Thescaleoftheplant,whichTeslahassaidwillcostsome$5bn,hashighlightedthegiantgamblethecompanyistakingon

beingabletostirenoughdemandfrommainstreamcustomersforelectricvehicles.Inareportlastmonth,LuxResearchpredictedthatTeslawouldbeabletosellonly240,000vehiclesayearby2020,lessthanhalfthe500,000ithasforecast.Thatwouldleaveitwithsubstantialovercapacityinbatteryproductionthatwouldnotbemadeupforinsalestoothercarcompaniesorforotherbatteryapplications,theresearchfirmsaid.Toreducetherisk,Teslahassaidthatitisalsotargetingthemarketforlarge-scaleelectricitystoragesystemsusedbypowercompanies,wherelowunitcostsarealsoakeycompetitivefactor.AnumberofUSstateshavecompetedaggressivelytobechosenasthelocationforthefacility,whichisexpectedtocreate6,500jobs.AdecisiontomoveaheadwithafacilityinNevada,whereTeslabrokegroundonatestsiteinJune,issettobeannouncedbythestate’sgovernoronThursday,accordingtoapersonfamiliarwiththeplan.Nevadasaidthatitsgovernor,BrianSandoval,wouldmakea“majoreconomicannouncement”onThursday,thoughneithersidehasconfirmedthesubject.Toreducetheriskofconstructionhold-ups

delayingtheplant,Teslahaspromiseduntilnowthatitwillbreakgroundinmorethanonestateandonlytakeadecisiononwhichlocationtoproceedwith

atalaterstage.ItwasunclearonWednesdaywhetherthedecisiontomoveaheadinNevadameansitwillnowlimititsdevelopmenttoonlyonesite.Arizona,NewMexicoandTexashavealsobeenonTesla’sshortlistofpossiblelocations.Fedsurveypointstorobustrecovery

ByRobinHardinginWashington

FinancialTimesSept03，2014AlltwelvedistrictsoftheUSFederalReservereportedgrowingeconomicactivitythroughthesummerinthelatestsignofamorerobustrecoveryin2014.

IntheBeigeBooksurveyofbusinesscontacts,sixofthetwelveFeddistrictsdescribedgrowthas“moderate”,fouras“modest”,andtwosaidthatactivitywasstrengthening.Itmarksashiftintonefromearlieryearsoftherecovery,whenstrengthinsomepartsoftheeconomywasalmostalwaysoffsetbyweaknesselsewhere,andcautionpervadedtheFedreport.Thistime,fiveFeddistricts–Philadelphia,Atlanta,Chicago,KansasCityandDallas–allexplicitlysaidthatlocalbusinesses“generallyremainedoptimisticaboutfuturegrowth”.Thereportwasonlytemperedbyawarningthatthissolidgrowthdidnotmeanaccelerationintoanewphaseofrapidexpansion.“Noneofthedistrictspointedtoadistinctshiftintheoverallpaceofgrowth,”saysthereport.TheBeigeBookisacompilationofanecdotalevidencefromthetwelveregionalFedbanksacrossAmerica.Ittakessecondplacetomoretimelyandobjectivedatabutactsasanimportantback-up:thebusinessreportsareonereasontheFeddidnotworrytoomuchwhenoutputfellintheweather-hitfirstquarter.ThelatestreleaseaddstoevidencethattheUSeconomy–whilenotgrowingmassivelyfasterin2014–hasbecomemorerobustasthedragfromtighterfiscalpolicyfadesaway.Non-farmpayrollshavenowrecordedsixconsecutivemonthsofgrowthabove200,000.Thelatestpurchasingmanagers’indexformanufacturingcameinat59,consistentwithastrongunderlyingpaceofgrowth.TheBeigeBookshowedlittlechangeinoneimportantindicatorforFedpolicy–thepaceofwagegrowth–butthereweresignsofspecificskillshortagesbecomingmorewidespreadthaninpreviousreports.“Generally,districtsreportedlittlechangeinwagepressures,whichwerecommonlycharacterisedasslightormodest,”saysthereport.“However,contactsinnearlyalldistrictsreporteddifficultiesfindingcertaintypesofskilledlabour.”TherewereshortagesofinformationtechnologyworkersinBoston,truckdriversinNewYork,andconstructionworkersinAtlanta.TheFediskeepinginterestratesclosetozerobecauseitthinksthereareplentyofpeoplewhowanttoworkmorehours,whilethereislittlesignofupwardpressureonprices.BeigeBook：CommonlyknownastheBeigeBook,thisreportispublishedeighttimesperyear.EachFederalReserveBankgathersanecdotalinformationoncurrenteconomicconditionsinitsDistrictthroughreportsfromBankandBranchdirectorsandinterviewswithkeybusinesscontacts,economists,marketexperts,andothersources.TheBeigeBooksummarizesthisinformationbyDistrictandsector.AnoverallsummaryofthetwelvedistrictreportsispreparedbyadesignatedFederalReserveBankonarotatingbasis.Robustdollarhitsfresh4-yearhighByJamieChisholm,GlobalMarketsCommentatorFinancialTimes,Sept25,2014Thursday1240BST.Thedollarisclimbingtoafreshfour-yearhighascurrenciesbearthebruntofdisjointedglobalgrowthanddivergentmonetarypolicies.Therampantbuckismakingitspresencefeltacrossarangeofassetclasses,hittingpreciousmetalsandemergingmarketproducts.TheJPMorganG7

currencyvolatilityindexisjustshyofasix-monthhigh.IndustrialmetalsareloweronworriesabouthigherChineseinventories,whilelingeringinvestorwarinessishelpingTreasuryprices,nudging10-yearyieldsdown2basispointsto2.55percent.Equitiessofarseemrelaxedaboutthesharp

forex

moves,theFTSEEurofirst300isup0.4percentfollowinga0.1percentgainforitsAsia-PacificpeerandasindexfuturesshowtheS&P500holding1,998.TheWallStreetbenchmarkonWednesdayhaditsbestsessioninamonthasinvestorsnotedsomebettereconomicdatabutexpressedtheirbeliefthattheUSFederalReservewillbegentlewhenitcomestotighteningmonetarypolicy,withtheendofQEexpectedinOctoberandthefirstinterestrateriseforecastformid-2015.Butthatperceivedpolicy

trajectoryisrunningadifferentcoursetothoseofotherlargedevelopedeconomies–notablytheeurozoneandJapan,whereweakgrowthanddeflationarypressuresleavethecentralbankslikelytoboostliquiditystillfurther.Policy-sensitiveshort-termgovernmentbondsillustratethedifference.UStwo-yearyieldsare0.58percent,whileequivalentmaturityGermanpaperisminus0.06percentandJapan’sareapositive0.07percent.TheyieldspreadbetweenGermanandUS10-yearnotesisnearitswidestin15years.Withlessincomeonoffer,theeuroandyenareunderpressure.Thesinglecurrencyisdown0.5percentto$1.2714,itsweakestsinceNovember2012,andtheyenisoff0.2percentagainstthedollartoY109.26,asix-yeartrough.Withsterlingalsoonthebackfoot,thedollarindexisup0.5percentto85.43,itshighestsinceJune2010.Afirmerbucktendstoputdownwardpressureondollar-denominatedcommoditypricesandemergingmarketassets.TheFTSEEMindexishoveringafractionabovethree-monthlows,andgoldisdown$7to$1,210anounce,flirtingwithitsintradayeight-monthlow.Brentcrudehasreversedearlylosses,however,adding19centsto$97.12abarrel.Fearsofincreasedsupplyarealsohurtingindustrialmetals.CopperledthesectorlowerinearlyAsiantradeafterChineseregulatorssaidtheyhadfounddocumentsrelatedto$10bnoffraudulenttrades,manyrelatedtometals-linkedfinancing,accordingtoBloomberg.Thefalloutfromfewermetalfinancedealsmaycauseanincreaseofinventories,analystshavesaid.Copperhasparedlossesbutremainsoff0.3percentat$6,725atonne.AstrongergreenbackandworriesaboutChinaresourcedemandisakryptonitecombinationfortheAustraliandollar,whichisdown0.8percenttoUS$0.8810–aseven-monthlow.TheAussieisalsotrackingaslideinitsantipodeancousintheNewZealanddollar.Thekiwiisslumping1.5percenttoUS$0.7954,itsweakestsinceSeptember2013,afterthecountry’scentralbankchiefsaiditwasonlyamatteroftimebeforetherewouldbe“asignificantfurtherdepreciationoftheexchangerate”duetofallingpricesinkeycommoditiesincludingdairyproducts.Asianequitiesweremixed.Theweakeryenhelpedtheexporter-sensitiveJapanesemarket,pushingtheNikkei225up1.3percenttoitsbestclosesinceNovember2007.InGreaterChina,theShanghaiCompositerose0.1percent,addingtoa1.5percentgainonWednesdaythatpushedtheindextoitshighestclosesinceMarch2013.HongKong’sHangSengfell0.6percentandSydney’sASX/200inchedup0.1percent.AdditionalreportingbyPatrickMcGeeinHongKongChinahotmoneycrackdownr