The week in review

In The News... US unveils banking reform plans The US Government this week announced a major reform of banking regulation to prevent future financial crises. The overhaul will require big banks to put more money aside against future losses to curb excessive risk taking. Consumers will get an agency to protect their interests and regulate mortgages and credit cards. In outlining the reforms, President Barack Obama described them as the biggest shake-up of the US system of financial regulation since the 1930s. The US central bank, the Federal Reserve, will be the authority to monitor major financial institutions. The US President said the lack of oversight among finance firms prompted systemic abuse causing risks for both companies and individuals. Good Week CHINA The World Bank has raised its forecast for growth in China this year from 6.5 per cent to 7.2 per cent amid signs that the economy is doing better than expected. Bank analysts say the government's four trillion yuan stimulus package has helped the economy. But it says the country's exports are still down, as the rest of the world struggles with the global recession. The World Bank believes the global economy, excluding China, will shrink by about three per cent this year. Bad Week INDIA Inflation has turned negative for the first time in more than 30 years, official figures have shown. Wholesale prices fell 1.61 per cent in the year to June 6, compared with a rise of 0.13 per cent the previous year, the Ministry of Commerce and Industry said. Cheaper food prices dragged the index down. Keep up with the latest business news from the region with the daily Emirates Business 24|7 newsletter. To subscribe to the newsletter, please click here .