Gold descended through the key psychological level of $1,200 on Thursday and Izzy is curious as to where its fall might end. So, on the basis that gold really is the inflation hedge some people think it is, its value should currently more about the ... $800 mark China's central bank assures financial markets: China will ensure there is enough money in the economy for the smooth functioning of its financial markets, central bank governor Zhou Xiaochuan said in his first public comments since the country was hit by a cash crunch. Mr Zhou did not directly mention the cash crunch, which last week sent interbank rates into double digits and stoked fears that the Chinese financial system was freezing up but said: "We will use all kinds of tools and methods to appropriately adjust liquidity and to maintain the overall stability of markets." Speaking at the same financial forum in Shanghai, Ji Zhihong, head of research at the central bank, said that it was important that Beijing show "tough love" to the country's commercial banks rather than "spoiling" them. Flat Japanese consumer prices aid Kuroda: Government data on Friday showed that core CPI across Japan was unchanged in May from a year earlier, rising from minus 0.4 per cent in April. Investors pull $8.6bn from US bond funds: Bruised by the first widespread losses for bondholders, investors pulled $8.6bn from US bond funds in the last week, contributing to the worst four-week streak since the depths of the financial crisis. European leaders agreed on new steps to fight youth unemployment and promote lending to credit-starved small business on Thursday after deals on banking resolution and the long-term EU budget gave their summit a much needed lift. The 27 leaders resolved to spend 6 billion euros over the next two years to support job creation, training and apprenticeships for young people, and to raid unspent EU budget funds to keep the effort going thereafter. Critics say the money is a drop in the ocean with more than 19 million people unemployed in the EU, and more than half of all young people under 25 without a job in Spain and Greece. Leaders also approved plans for the European Investment Bank to lend hundreds of billions of euros to small and medium-sized enterprises (SMEs) particularly in southern EU states where bank finance has largely dried up due to the euro zone's debt crisis. Chinese wind-turbine maker indicted in US: "A federal grand jury in the Western District of Wisconsin indicted Sinovel Wind Group for trade-secret theft, criminal copyright infringement and wire fraud. The indictment alleges that Sinovel stole source code for software used to control wind turbines from AMSC, a Massachusetts-based engineering firm, and then shipped four turbines equipped with the allegedly pirated code to customers in the U.S. Bank fees rise 9% despite dealmaking dip: Investment banks revived their fortunes during the first half of the year by generating a 9 per cent rise in fees because of a recovery in capital markets - despite another drop in dealmaking. Vatican cleric arrested in bank probe: The cleric, Monsignor Nunzio Scarano, worked as an accountant in the Vatican's financial administration. China poised to name new head for $500bn wealth fund CIC: China's $500bn sovereign wealth fund is finally close to naming a new chief, ending a months-long delay during which several candidates turned down the job for fear it would prove to be a poisoned chalice. CVC attracts pledges of €14bn in six months: The rise of CVC Capital Partners into the top tier of private equity firms globally has been underscored by its latest fundraising which has seen the owner of the Formula One car racing franchise attract pledges of more than €14bn from investors in just six months. Markets: Markets are finishing a volatile quarter on a more confident note as investors perceive positive developments in the world's three biggest economies, the US, China and Japan. The FTSE All-World equity index is up 0.6 per cent after the Asia-Pacific region rose 2 per cent and as US index futures point to a 0.2 per cent advance for Wall Street's S&P 500. n Europe, the FTSE Eurofirst 300 is adding 0.2 per cent as the single currency rises to $1.3051 but the dollar index is flat. US government bonds are relatively quiet, prices moving slightly higher to nudge the 10-year yield down 1 basis point to 2.46 per cent writes the FT's Global Markets spelunker Jamie Chisholm.