Economists who focus on Latin America are enthusiastic about the potential for Mexico's financial reform package to significantly boost employment and gross domestic product. Making more credit available to small and medium-sized businesses is central to the effort. Small businesses account for 74% of Mexico's jobs but they received only 15% of the credit.
Finance ministers and central bankers from the Group of Seven nations held an "extensive discussion on banking regulation," said Mario Draghi, president of the European Central Bank. The discussions included how to ensure that troubled financial institutions could be shut down without risking the stability of the financial system.
Group of Seven finance ministers accepted Japan's argument that its stimulus policies aren't an effort to drive down the value of the yen to gain an advantage against the other developed nations. The ministers departed from their usual practice and didn't release a communique at the end of their gathering, although U.K. Chancellor George Osborne made brief, indirect reference to the risk of a currency war.
KraneShares filed a registration statement for three exchange-traded funds focused on narrowly defined segments of the Chinese economy. KraneShares CSI China Consumer ETF is set to track the CSI Overseas China Consumer Index. KraneShares CSI China Internet ETF is expected to be linked to the CSI Overseas China Internet & Communication Index. The KraneShares CSI China Government Bond ETF will draw its investments from the CSI Offshore RMB China Government Bond 10 Index.
India's consumer inflation fell below double digits at 9.39% in April, down from 10.39% in March. It was the second straight month of decline, easing fears over a key troublesome factor. However, India's April trade deficit grew more than 70% from March.