Swiss financial giant UBS and the U.S. government are seeking to delay a major U.S. tax trial set to start on July 13 so they can find a negotiated settlement. The case revolves around U.S. authorities trying to force the bank to reveal the identities of 52,000 rich Americans suspected of using secret Swiss bank accounts to dodge taxes. The request to delay the case will be delivered to the Miami court at 9am EST.

Even if a settlement is reached, the assertiveness of American authorities marks a more aggressive global stance taken by the U.S. and other countries against tax evasion and offshore havens such as the Cayman Islands and Liechtenstein. The trial will also put pressure on high-net-worth individuals (and the banks that service them), who could be forced to come clean over where they’re putting their assets.

Source: Reuters, BusinessWeek

CIT Tries to Calm Market Fears

Officials from CIT Group, the struggling financial institution, spent the weekend working out a plan to calm markets and convince customers and investors that it can work its way out of a deepening liquidity crunch. CIT representatives held discussions with members of Congress, government officials and regulators, who are increasingly nervous that small and midsize business customers may rush to withdraw funds or try to draw down credit lines.

Source: Wall Street Journal

Obama Focuses Bailout Money on Small Businesses

U.S. President Barack Obama’s administration wants to take money from the $700 billion rescue program for the banking system and make it available to millions of small businesses — a move officials say is essential to the domestic economic recovery because the firms employ so many people. The plan represents a shift from the original mandate. It would direct billions of dollars toward saving jobs, not at reforming the financial system.

Source: Washington Post

Belgium’s RHJ International Close to Buying GM’s Opel

Belgian company RHJ International said on July 13 it was in advanced talks to buy a majority stake in General Motors’s European unit Opel. The bid represents a rival offer to leading Opel contender Magna International, a Canadian auto parts group which has said it wants to agree a preliminary deal for Opel with its U.S. parent this week.

Source: Reuters

Emerging Markets: Too Expensive for Investors

Global investors are paying too much for shares from emerging giants, such as China, India, and Brazil. The last time stocks in developing countries were this expensive was in October 2007. According to Bloomberg data, the MSCI Emerging Markets Index currently trades at 15.4 times reported earnings, compared with 14 for the Standard & Poor’s 500 Index.

Source: Bloomberg

Japanese PM Calls August Election

Taro Aso, Japan’s long-suffering prime minister, has agreed to call a general election for August 30, according to local media reports. Aso’s decision follows a heavy defeat for his Liberal Democratic party in voting for the Tokyo Municipal Assembly, and is intended to stave off possible challenges to his leadership from party colleagues.

Source: Financial Times

Chinese Central Bank to Control Credit Bubble

China’s central bank has pledged to do more to control loan growth as a record expansion in credit raises concerns over a financial bubble. New loans rose almost fivefold in June as the credit boom revived growth in the world’s third-biggest economy. The jump in credit has helped the Shanghai Composite Index to climb more than 80% from last year’s low.

Source: Bloomberg

Investors Rattled over Exec Allegations in China

Allegations in China surrounding executives from Anglo-Australian miner Rio Tinto are rattling investors. The issue, which may be rooted in a pricing dispute over iron ore, has rocked the global iron ore industry, strained China-Australia relations, and could have a chilling effect on foreign businesses doing deals in China. Companies with operations here have been closely watching the case.

Source: New York Times

Microsoft Fights Google over Online Software

Microsoft will broaden its battle with Google this week as it pushes ahead with online versions of some of its core software. The software company’s latest moves into internet services, due to be revealed at its annual partner conference in New Orleans starting on July 13, is part of Microsoft’s “software plus services” strategy that it has pursued for three years.

Source: Financial Times

Retailers Attack Wal-Mart over Healthcare

The National Retail Federation, the U.S. retail industry’s biggest trade group, is launching an attack against Wal-Mart for supporting congressional proposals requiring employers to help pay for health insurance. The idea has gained political momentum thanks, in part, to the backing of the nation’s largest private employer.

Source: Wall Street Journal

Indians Embrace Wal-Mart Experience

For shoppers to Wal-Mart’s new stores in India, the arrival of the world’s largest retailer in one of the world’s largest marketplaces has brought more praise than protest. To protect the country’s smaller merchants, the Indian government also has ordered Wal-Mart to sell only to wholesalers, as well as business owners and their families and friends. That has eased the tensions among the merchant associations and left-wing political parties.

Source: Washington Post