China reported a trade deficit of $31.5 billion for February, the largest in at least a decade, as imports grew at twice the rate of exports. Factories were closed during the Chinese new-year celebrations, which may be one factor behind the slacker exports. But with global demand fragile and separate data showing a slowdown in Chinese car sales and industrial production, many observers are now betting that the central bank will do more to boost the economy. Trading barbs America (and others) took a "first step" in bringing a dispute with China over restrictions on exports of rare-earth minerals to the WTO. China says it limits exports because of concerns over the industry's environmental impact, but America argues that the controls create "massive distortions" in the market. China rejected that claim as groundless, and warned America to tread cautiously when handling trade disputes. Airbus suggested that a row between Europe and China about the forced participation of its airlines in the European emissions-trading scheme could lead to "suspensions, cancellations and punitive actions" in retaliation. China is the most vocal opponent of the policy and is withholding final approval on orders for dozens of Airbus aircraft. Meanwhile, 26 American economists, including five Nobel laureates, endorsed Europe's emissions-trading scheme as an "innovative" effort to price carbon. The Federal Reserve released the results of the latest "stress tests" of America's big banks, which have to prove that they can withstand a number of economic shocks, such as the unemployment rate reaching 13%. Fifteen of the 19 banks under review passed the tests, but four did not, including Citigroup. The great muppet caper Goldman Sachs faced more negative publicity after the colourful resignation of an executive. After 12 years at Goldman, Greg Smith decided to quit because he overheard several colleagues describe clients as "muppets." He condemned the firm's recent business practices in an article in the New York Times. The criticism will sting Goldman, which prides itself on its reputation and care for clients. Markets reacted calmly to Greece's debt swap, which was accepted by 86% of holders of Greek bonds. The remainder were forced to sign up when the Greek government enforced a collective-action clause, which in turn led the International Swaps and Derivatives Association to declare this a "credit event," determining that insurance against a default should be paid out. The deal will cut Greece's debt pile by €100 billion ($130 billion). The London Stock Exchange announced that it was acquiring a 60% stake in LCH.Clearnet in a deal that values the London-based clearing house at €813m ($1.1 billion). Clearing is seen as a lucrative area thanks to regulatory reforms. Yahoo! filed a lawsuit against Facebook for alleged infringements on ten patents it owns. Yahoo!, which is seeking to halt its decline under the new leadership of Scott Thompson, claims that the patents have been essential to the market share that the social network now enjoys. Facebook has come under increasing scrutiny since it unveiled a $5 billion IPO in February. India's patent office ordered Bayer, a German drugmaker, to license a cheaper version of Nexavar, an anti-cancer drug. Compulsory licensing is permitted under WTO rules but rarely used; an Indian generic-drugs company will sell its version at a 97% discount to Bayer's and hand over 6% of the revenues as royalties. Bayer is planning to appeal. The decision will heighten drugmakers" concerns about investing in India, which is involved in other patent rows. There was confusion over India's recent ban on cotton exports when officials appeared to reverse the decision, but then said it would apply to new bales of the fibre. Local farmers - and the Chinese - are furious at the ban, which the government thinks will help the country's cotton mills. America's employment situation continued to improve, as 227,000 jobs were added to the payrolls in February and the figures were revised upwards for December and January. The unemployment rate was unchanged at 8.3%. Falling volumes In a move hailed as a triumph by the digerati but deplored by bibliophiles, the publishers of "Encyclopaedia Britannica" decided to discontinue the printed edition of the 32-volume tome in order to focus on the online and digital versions. The encyclopedia contains 40m words, is in its 15th edition and was first published in Edinburgh in 1768 but has been based in America since 1901 (according to Wikipedia).