Global business
China's booming stock markets wobbled on Dec. 9 after the government announced a tightening of the rules on using corporate debt as collateral for loans. The Shanghai Composite plunged by 5.4 percent over a day, the biggest single fall in the index since 2009. Meanwhile, Chinese imports fell the most in November for eight months while exports grew at their slowest pace for six months. Inflation fell to 1.4 percent, a five-year low.
OPEC cut its estimate for demand for oil next year; its current output is 1 million barrels a day more than it thinks will be needed in 2015. With American oil inventories rising more than had been expected, oil prices fell further. Responding to the bearish oil market, BP became the latest energy company to say it would cut back on its development spending.
Reports suggested that JPMorgan Chase may be left with a shortfall of about $22 billion under the Federal Reserve's latest requirements for America's biggest banks to hold more capital to protect them in a crisis. The bank has until 2019 to increase its capital buffer.
Lending Club, the world's biggest peer-to-peer lender, priced its IPO at $15 a share, which valued the firm at $5.4 billion. So far it has issued $6 billion worth of loans.
A second official estimate showed that Japan's economy shrank by 1.9 percent at an annualized rate in the third quarter, worse than the contraction of 1.6 percent that a first estimate had recorded, adding more pressure on Shinzo Abe's government as it headed into an election. Nonetheless, Abe and his Liberal Democratic Party claimed a landslide victory over the weekend.
The British Treasury published draft proposals of a new tax on diverted profits to "counteract contrived arrangements." Aimed at multinationals, the tax will be set at 25 percent of the profit a company makes from its activities in Britain but which it has diverted overseas to escape tax. Although welcomed by some, the Confederation of British Industry wants the government to adhere to the Organisation for Economic Co-operation and Development [OECD] process on international tax reform, and says going it alone is a "concern."
The OECD assessed the effects of inequality on economic growth, finding that it has a statistically significant negative impact. It reckoned, for example, that income inequality knocked 10 percentage points off cumulative GDP growth in Mexico between 1990 and 2010, 9 points off Britain's growth and up to 7 points off the United States'. Redistributive polices do not hinder growth, it argued, as long as they are targeted effectively, specifically at education.
Merck, a drug company based in New Jersey, agreed to buy cubist, a biotech firm in Massachusetts, in a $9.5 billion acquisition. Cubist specializes in the growing market for creating antibiotics to combat the rise of "superbugs," such as MRSA, that are resistant to older drugs. A study led by Jim O'Neill, the economist who coined the term BRICs (for Brazil, Russia, India and China), forecasts that 10 million people a year will die from drug-resistant infections by 2050.
Political economy
After 13 years in Afghanistan, NATO-led combat missions formally ended with a flag-lowering ceremony in Kabul, the nation's capital. About 13,000 mainly U.S. troops will remain to train Afghan forces and help them with air support and medical evacuation in combat operations against the Taliban.
Brazil's National Truth Commission named 377 people it says are responsible for 434 murders and disappearances during the military regime that ruled from 1964 to 1985. About 100 of the culprits are still alive, but under an amnesty law they cannot be prosecuted. Many fewer people were murdered by Brazil's dictatorship than were killed by other Latin American regimes, such as those of Argentina and Chile.
China's Communist Party expelled Zhou Yongkang, who retired two years ago from its most powerful body, the Politburo Standing Committee. It accused him of bribery, adultery with several women and leaking secrets. Zhou is now all but certain to become the most senior figure to be put on trial in China since the Gang of Four in 1980.
Robert Mugabe, who has been president of Zimbabwe since independence in 1980, sacked his vice president, Joice Mujuru, and seven ministers in a purge that cleared the way for Emmerson Mnangagwa, the hard-line former justice minister, to become his likeliest successor. Mujuru denied accusations of corruption and plotting to kill Mugabe.