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August 19
VW reintroduces Phaeton to U.S. market. Business Week
Volkswagen AG plans to bring back the $85,000 Phaeton to the U.S., where the sedan flopped and was withdrawn in 2006, as part of the German carmaker’s aim of tripling its share of the world’s second-largest market by 2018. The U.S. is a most lucrative market for high-end sedans and VW has to tackle that potential if it wants to credibly expand its U.S. presence,” said Willi Diez, head of the Nuertingen.
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August 18
LED: the future of lighting. Forbes.com
As energy efficiency becomes increasingly important for controlling costs, improving energy independence and reducing environmental impacts, LED lighting will become the world's leading source of manufactured light. Right now, 20% of the world's electricity is used for lighting; that can be reduced to 4% with LED lighting.
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Argentina may cut wheat export tax. Business Week
Argentine opposition leaders say they have support for a bill to eliminate export taxes on wheat and corn as a way to lure farmers away from soybeans, the country’s biggest crop, and plant more cereals. Economy Minister Amado Boudou said lower taxes on agricultural shipments, which generate about 9% of government revenue, would mean fewer cash handouts for the poor and less spending on roads, schools and hospitals in South America’s second-biggest economy.
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GM to develop small engines with China partner. New York Times
Deepening cooperation with one of its major partners in China, General Motors plans to jointly develop small, fuel-efficient engines and advanced transmissions here with S.A.I.C. Motor Corp. The agreement is part of the American automaker’s plan to create more environmentally friendly technologies and expand its range of offerings in China’s fast-growing auto market.
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Colombia, Venezuela relations renewed. Venezulaanalysis.com
The Colombian Senate President, Armando Benedetti, met with Venezuelan President Hugo Chavez and other top officials. The meeting was the latest step forward in the renewal of bilateral relations following a three-week dispute that stoked fear of military aggression. The officials did not sign any accords, but they discussed the possibility of creating binational zones along their 1,375 mile border, passing a binational organic law, improving security cooperation, launching joint energy and infrastructure projects, and signing a free trade agreement.
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It’s recommended to buy Brazil credit. Bloomberg.com
The cheapest Brazil inflation-linked bonds in 14 months are prompting Bank of America Corp. and SulAmerica Investimentos to recommend the debt on concern President Luiz Inacio Lula da Silva’s successor will fail to keep consumer prices in check. While slowing growth in Latin America’s biggest economy is pushing down investors’ inflation expectations, the next administration may step up spending and reignite consumer price increases.
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August 17
Taiwan approves landmark China trade deal. Forexyard.com
Taiwan's parliament passed a trade deal with Beijing, the most significant agreement between the political foes of 60 years and one that binds Taiwan's economy to China while opening doors to other countries. The government has said the deal would create some 260,000 jobs, while one private forecast has put the net effect of ECFA for Taiwan at a 5.3% improvement in GDP by 2020.
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Reynolds Group buys Pactiv. Forbes.com
Reynolds Group will pay about $4.4 billion for Pactiv, the maker of the Hefty brand trash bags. t's the latest and biggest in a string of deals that has built Reynolds parent company Rank Group Ltd. into a worldwide packaging empire under owner Graeme Hart.
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Marketing Snoop Dogg. Forbes.com
Snoop's manager Ted Chung, a 1999 Wharton alumnus, are helping him build a diversified business that hedges against the public's fickle musical tastes. Partnerships, such as with Katy Perry, helped land the rapper the seventh spot on Forbes' 2010 Hip-Hop Cash Kings list. Making Snoop palatable to marketers was a long, calculated journey.
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Highest bid for Potash? Business week
BHP Billiton Ltd. Chief Executive Officer Marius Kloppers flew to Chicago to deliver the letter containing his $40 billion offer to Potash Corp. of Saskatchewan Inc. CEO Bill Doyle. The acquisition would be BHP’s biggest since buying WMC Resources Ltd. in 2005 and follows the scrapping of its $66 billion offer for Rio. Kloppers, who today said the purchase would diversify sales, is seeking to benefit from surging demand for fertilizer as food needs grow. The global population is set to reach 9.1 billion in 2050, according to the United Nations.
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Russia to waive visa restrictions if wins World Cup bid. BBC News
A Fifa delegation is touring Russia, one of nine countries bidding to stage the competition in 2018 or 2022, as part of a two-month fact-finding tour. Russia has pledged to waive visa restrictions for visitors if it wins the right to host the 2018 World Cup.
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Blackberry dispute in India. New York Times
Indian officials and Research In Motion, the maker of popular BlackBerry devices, appear to be making progress toward resolving a battle over the government’s ability to monitor encrypted e-mail and instant messages. India wants to be able to monitor encrypted corporate e-mail and messages sent over BlackBerry Messenger, a service that allows users to chat with one another.
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August 16
President Susilo Bambang Yudhoyono targets 7.7% economic growth. Business Week
Indonesia's president says he wants Southeast Asia's biggest economy to grow 7.7% before he finishes his second term in 2014. He wants to create 10.7 million new jobs and to slash poverty by up to 10%.
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Shrimp industry affected by oil spill. Forbes.com
The spill has put a crimp in the fishing industry in a state that ranks first in the nation in producing shrimp, blue crab, crawfish and oysters, a $318-million-a year business in Louisiana. The biggest fear is that some fisherman might try to sell oil-contaminated shrimp and scare consumers away again after prices crashed once already this summer.
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Barclays pay for violating U.S. Trade Law. New York Times
Barclays has agreed to pay $298 million to settle accusations that the bank facilitated illegal transfers of dollars for countries that were sanctioned by the United States including Iran, Cuba, Libya, Sudan and Myanmar. For more than a decade, Barclays would strip information from wire transfers funneled through the United States that identified the money as coming from sanctioned countries and entities.
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57 parties running for Kyrgyz election. UPI.com
There are 57 political parties registered with Kyrgyz authorities for parliamentary elections scheduled for October, the election office said in Bishkek. Kyrgyz election officials said there were 100 parties eyeing seats in Parliament, though that number dwindled to 57 after Otunbayeva signed the new law.
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Hulu planning an IPO. Business Week
Hulu LLC, the video website owned by three of the biggest U.S. broadcast networks, is preparing an initial public offering that may value the company at more than $2 billion. Hulu Plus is currently accepting new customers by invitation only and will become widely available in time for the start of the new broadcast TV season in September. Hulu’s subscription offering puts it in more direct competition with Netflix Inc.
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Babangida to run for Nigerian presidency. AFP
Nigerian ex-military ruler Ibrahim Babangida will run for president in upcoming elections, nearly two decades after he controversially overturned a ballot viewed as fair. Babangida becomes the second Muslim from the country's north to seek the ruling party's nomination for the election. "Given my wealth of experience and decades of leadership study, plus the urgent need to confront the challenges of our national lives, I believe the time is ripe for me to serve our people as a civilian president," he said.
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China may be #2 economy worldwide. CNNMoney.com
China is on track to overtake Japan as the world's second-largest economy after the United States. China's economy has been driven by its exports its trade surplus hit an 18-month high of $28.7 billion in July and supported by its massive population. Japan has struggled with a strong currency, which has hurt exports. The yen touched a 15-month high against the dollar earlier this month. It also is coping with an aging and shrinking population.
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Eco-friendly ideas must wait on the economy. New York Times
Hotels eager to satisfy the growing desire of business travelers for eco-friendly lodging are finding that their environmental ambitions have run headlong into the harsh realities of the recession. With reduced operating budgets, hotel owners are putting off the kind of sweeping projects that were common during the bull market and instead focusing on smaller environmental initiatives that don’t cost as much and may even save money at the same time.
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August 15
Nokia seeks U.S. market. New York Times
As Nokia seeks to turn around its smartphone lineup to try to compete with the BlackBerry and with Apple’s iPhone, the company is also trying to shore up its bulk cellphone business, which accounts for 84% of the 432 million devices Nokia sold last year. Nokia holds only an 8% share of the U.S. market.
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Internet usage from satellites. New York Times
WildBlue and HughesNet plan to launch satellites in the next couple of years that will dwarf their predecessors in space. To provide Internet service at speeds many times faster than they now offer, as fast, in some cases, as fiber connections. Satellites can provide service more easily and cheaply per subscriber than their earthbound cable and phone company competitors, particularly to the 14 million to 24 million Americans who live in areas without broadband service.
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August 14
Age of Innovation. New York Times
A search of the database of the professional networking site LinkedIn found that more than 700 people listed their current job title as “chief innovation officer” and that nearly 25,000 had the word “innovation” in their job title. Many others may not have the word in their titles, but their job is to pursue opportunities that result in new products, services and more efficient ways of doing things.
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August 13
Spanish growth accelerated. Business Week
Spain’s economic growth accelerated in the second quarter amid a recovery that may be undermined by government budget cuts and the euro region’s highest unemployment rate. Gross domestic product rose 0.2% from the previous quarter, when it increased 0.1% in the first expansion since early 2008.
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China builds state run search engine. Forbes.com
China plans to create its own government-controlled search engine. The new venture would be fresh competition for Baidu.com, a private company that runs China’s dominant search engine. Baidu has seen its market share grow since Google retreated from the mainland earlier this year.
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Scandinavia’s hydro concerns. Business Week
Scandinavia’s ability to undercut German power prices may evaporate amid the biggest shortfall since 2006 of water needed to generate electricity. A rainy spring raised Scandinavian reservoirs and cut the hydro deficit earlier this year. Now the trend is forecast to change again, with lower than average rainfall forecast for the region from September through December.
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Iceland: the next electric car capital. Forbes.com
Iceland is the ideal test bed for electric vehicles."Iceland's geological evolution makes it especially well suited to harvesting geothermal energy.” Some 75% of Iceland's population lives within 37 miles of Reykjavik, Iceland's capital, and the rural areas (connected by an 840-mile ring road) could probably be wired with just 15 fast-charging stations.
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Sushi students seek jobs abroad. New York Times
Students at the privately owned academy plan to join the growing ranks of professional Japanese chefs eager to serve a growing overseas appetite for sushi. Their plan to seek jobs abroad comes as revenue is declining within the Japanese sushi sector amid a cutthroat price war within the restaurant industry overall, which means consumers expect to pay less and receive more.
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August 12
Blackberry may lose Indian market. New York Times
The Indian government will block encrypted BlackBerry corporate e-mail and messenger services if wireless companies did not enable law enforcement authorities to monitor those messages by the end of the month. Losing access to the wireless market in India would be far more significant for R.I.M. than losing the ability to provide service in the United Arab Emirates. India is one of the world’s fastest-growing wireless markets, and it already has an estimated one million BlackBerry users.
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Apple’s newest market: the elderly. Business Week
The elderly population, looking for easier ways to browse the Web and send e-mail, represents a potentially lucrative market for Apple's iPad. The iPad's intuitive interface makes it appealing to senior citizens around the world, says Takahiro Miura, a researcher at the University of Tokyo: "The iPad is a good tool for the elderly because it's very forgiving of mistakes." Miura's team uses computers to help train senior citizens to rejoin the workforce. "Unlike the PC, it doesn't require prior knowledge," he says.
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Emerging countries’ art market. Business Week
The art market always follows the money. These days that means courting new collectors from emerging economic superpowers. The value of pieces from Brazil, Russia, India, and China, the so-called BRIC countries, has skyrocketed in recent years, mirroring each country's economic growth.
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Peru to see 6% growth. Business Week
Peru's government says its economy is expanding more quickly than initially expected and it now predicts growth of 6% or more this year. Finance Minister Mercedes Araoz credited rapidly growing private sector investment, and said that next year Peru is likely to see growth of about 5 percent.
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Trade gap points to slower economic growth. Associated Press
The United States is selling fewer products around the world and spending more on cheap imported goods, an imbalance that hurts the job market at home and means the economy is even weaker than previously thought. While U.S. manufacturers have reported increased demand from Asia, exports to Europe are falling behind as that region of the world struggles with fallout from its debt crisis. The deficit with the European Union alone increased 26%.
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Williams-Sonoma new online strategy. Business Week
Williams-Sonoma is betting on a more aggressive online strategy and expansion of its moderately priced West Elm chain to revive growth. Williams-Sonoma says online sales of home furnishings will grow by $2.5 billion in the U.S. over the next five years, and CEO Alber wants a big chunk of that growth. The company dominates home furnishings online, with $943 million in Web sales last year, more than triple that of its nearest rival, Crate & Barrel.
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Baltic states show rapid economic growth. Bloomberg
The economies of Estonia, Latvia and Lithuania are recovering from the European Union’s deepest recessions faster than previously estimated as manufacturing picks up and the financial industry improves. The Baltic economies returned to growth in the second quarter from the previous three months, beating economists’ estimates. Exports and industrial output expanded as global trade improved and wage cuts helped increase competitiveness.
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The Chinese TV market. Business Week
In China, price can make or break a TV sale. That's forcing Sony and Panasonic, the world's two largest makers of consumer electronics, to slash some TV prices by a third in China after being outsold 6 to 1 by Shenzhen-based Skyworth. China is poised to become the world's biggest TV market, but foreign brands have difficulty competing there on price.
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Vedanta may buy stake in Cairn India. Business Week
Vedanta Resources Plc is in talks with Cairn Energy Plc on buying a stake in its India unit, the operator of the country’s largest onshore oilfield, as the copper producer seeks to expand outside metals. The move would be a strategic shift by Vedanta, a producer of metals including copper and zinc controlled by Indian billionaire Anil Agarwal.
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August 11
Advertisers seeking to tap into Muslim market. New York Times
For decades, many Western companies have failed to appreciate the unique needs of Muslim consumers. Some companies have offended potential customers by not understanding religious sensitivities. As the Islamic population has grown in size and affluence, there are now 1.57 billion Muslims worldwide and more multinationals are seeking to tap into the market.
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Google increases pace of acquisitions. Business Week
Google Inc. Chief Executive Officer Eric Schmidt has doubled the anticipated pace of acquisitions this year and expects to maintain that rate after some internal projects have failed to spur growth. The company is snapping up startups in social networking, mobile technology and graphical advertising, such as areas where its homegrown efforts needed outside help.
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August 10
Netflix to add films to On-Demand service. New York Times
At a cost of nearly $1 billion, Netflix will add films from Paramount Pictures, Lions Gate and MGM to its online subscription service. Netflix knows it needs to lock up the digital rights to films as customers stop receiving DVDs by mail and start receiving streams via the Internet.
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Kenya delays bond sale with fragile global economy. Bloomberg
Kenya is holding back on plans to sell at least $500 million of sovereign bond because recovery in the global economy is still too tentative. “As long as the environment is still uncertain we will wait,” Economic Secretary in the Finance Ministry Mwau said, citing “fragilities” in Greece, Spain and the U.S. “Risks are still out there. We are continuously monitoring.”
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Brazil coffee demand increases. Bloomberg
Coffee demand in Brazil, the world’s largest producer, may rise more than expected this year as the economy grows at the fastest in 15 years, helping keep prices stay near a 12-year high. Brazilians are increasing their coffee intake, adding take- out cappuccinos and espressos to the filtered coffee taken at home as the beverage industry invests more in advertising and new products, Herszkowicz said.
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New Zealand apple ban in Australia illegal says WTO. National Business Review
Australia’s near 90-year ban on New Zealand apple imports has finally been ruled illegal by a World Trade Organization panel and the onus is on that country to conform to the finding. Australia banned imports of New Zealand apples in the 1921, claiming there was a risk of spreading the fireblight apple tree disease to that country. Australia also raised concerns about European fruit canker or apple leaf-curling midge. The Australian government lifted the outright ban in 2006 but imposed conditions so strict that New Zealand said it made its exports uneconomic.
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Israel loosens import restrictions. Business Week
Israel’s loosening of import restrictions since June has led to an almost two-thirds increase in consumer products such as chocolate, jam and shaving cream entering the coastal enclave. The boost in imports comes as Defense Minister Ehud Barak testified today before a government commission investigating the May 31 commando raid on a flotilla carrying aid to Gaza in which nine Turkish activists were killed.
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Google maps for bicyclists. New York Times
The beta version for bicyclists is just a few months old, but it is already reshaping how bike enthusiasts travel. “For Google Maps not to have bike directions is like the Gap not selling underpants,” said Eben Weiss, the author of the BikeSnobNYC blog. “Even though it’s not 100 percent reliable, it’s still better to have it than in no form at all.”
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International Power and GDF Suez merge. BBC News
International Power has agreed a tie-up with French utility GDF Suez, bringing to an end months of negotiations between the two parties. "This is a strong combination of two world-class businesses that have a highly complementary geographic footprint," said Sir Neville Simms, International Power's chairman. The deal would also enhance growth prospects in Latin America, Asia and the Middle East.
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Argentine warrants beat bonds with increasing growth. Business Week
Argentine securities linked to gross domestic product are outperforming the country’s bonds by the most in five months as surging commodity exports propel the fastest economic expansion in Latin America. South America’s second-biggest economy is “scorching” and may grow 9.7% this year, the most since 1992, as grain output jumps and car exports to Brazil soar.
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Respol to sell shares in Brazilian unit to fund fields. Business Week
Repsol YPF SA, Spain’s largest oil company, filed to sell voting shares in its Brazilian unit to fund exploration and production at offshore fields. Repsol is seeking to raise about $4 billion from the stock sale, valuing the Brazilian unit at about $10 billion. The company is planning to conduct the IPO by the end of the year and won’t wait for Petroleo Brasileiro SA’s planned $25 billion offering, Repsol Chief Operating Officer Miguel Martinez said July 29.
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August 9
Sara Lee Corp CEO steps down. Forbes.com
Sara Lee Corp. Chairman and CEO Brenda Barnes will step down permanently to focus on improving her health following a stroke in May. She led the company, known for its namesake breads and brands including Jimmy Jean and Hillshire Farm, through a restructuring, which shed unprofitable plants, jobs and units to focus on its core food business.
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News Corp sells Chinese units. New York Times
The News Corporation is selling a controlling stake in three Chinese television stations and a movie library to a private equity fund that was formed with the backing of the Chinese government. The sale of the units is the latest indication that the News Corporation is pulling back from China after years of frustration over government restrictions that prevent foreign media organizations from freely operating in a market dominated by state-run companies.
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Indonesia, Turkey vs the BRICs. Business Week
Indonesia and Turkey are beating the world’s biggest emerging markets by almost any financial measure, even while they may be too small to join the BRICs. While China’s gross domestic product is about 4.2 times Turkey and Indonesia’s combined, they lead the “Next 11” smaller emerging nations with the most potential to affect world growth.
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Saudi Arabia, RIM reach Blackberry use agreement. Business Week
Saudi Arabia’s government and Research In Motion Ltd. have reportedly reached an agreement on the use of the company’s BlackBerry instant messaging service in the kingdom. The Saudi situation is one of a growing number of countries in which Canada’s RIM faces scrutiny over BlackBerry e-mail and messaging. The United Arab Emirates, India and Indonesia have also expressed concern that such mobile communications could be used to violate laws or national mores.
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Skype offers $100 million IPO. New York Times
Skype, the popular Internet telephone service, hopes to raise $100 million in an initial public offering of stock. The IPO could help revive the market for technology offerings. Analysts have speculated that Skype’s sale, planned for the Nasdaq market, could be the biggest initial offering in the technology sector since Google went public in 2004 and raised $1.67 billion.
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India’s port closure affects business. Business Week
The closure of the two ports, which together handle about 40% of Indian exports, will disrupt shipments of goods including petroleum products, grains and automobiles, according to R. Venkatesh, vice president of the Western India Shippers Association. Jawaharlal Nehru and the neighboring Mumbai Port were closed yesterday as salvagers worked to recover about 250 containers, which were shed by Mediterranean Shipping Co.’s MSC Chitra after a collision on Aug. 7.
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Internet regulation plan under discussion. New York Times
Google and Verizon introduced a proposal for how Internet service should be regulated and were immediately criticized by groups that favor keeping the network as open as possible. Internet service providers would not be able to block producers of online content or offer them a paid “fast lane.” It says the Federal Communications Commission should have the authority to stop or fine any rule-breakers. It also has exceptions for Internet access over cellphone networks, and for potential new services that broadband providers could offer.
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August 8
South Korea’s new president. BBC News
South Korea's President, Lee Myung-bak, has replaced the prime minister and seven ministers in the biggest cabinet reshuffle since he took office in 2008. Lee has long been mentioned as a rising star and is credited with leading several successful development projects along South Gyeongsang's coast.
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President Medvedev visits Abkhazia unannounced. BBC News
Russian President Dmitry Medvedev has made an unscheduled visit to Abkhazia, his first to the breakaway Georgian region since the brief war between Russia and Georgia two years ago. Last year Russian Prime Minister Vladimir Putin visited Abkhazia for the first anniversary of the conflict and announced Moscow would pay for part of the region's defense infrastructure. Russia has used the anniversary of the conflict to emphasize the strength of its ties with the two breakaway states.
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GDF, International Power to combine assets. Business Week
DF Suez SA and International Power Plc are near an agreement that would have France’s second- largest utility take control of the British company with interests in more than 45 power stations. The transaction would join International Power with Paris-based GDF’s units outside Europe with assets in the U.K. and Turkey.
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August 7
Hungary declines foreign assistance to boost economy. AFP
Hungary wants to take control of its economic decisions and boost growth without relying on loans from foreign institutions as it did in 2008 to avoid bankruptcy. "We would like the people to be able to understand that economic growth is due to the decisions of its government, and not because of all sorts of foreign credit," Varga, head of Prime Minister Viktor Orban's office, said.
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China joining the GPA. China.org.cn
The country is committed to joining the government procurement agreement (GPA) of the World Trade Organization (WTO) "as soon as possible", but still hopes GPA member nations including the US are not "too demanding" on its revised GPA offer, said Sun Zhenyu, China's ambassador to the global trade arbitrator. The GPA is a set of standards that grant foreign companies nondiscriminatory access to government purchases. If the country joins the agreement, it will also allow Chinese enterprises to enter the government procurement markets in 41 WTO member nations that have joined the GPA.
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Fidel Castro in public for first time since 2006. BBC News
Fidel Castro, the former Cuban leader, has delivered his first speech to the national assembly since resigning over ill health four years ago. The speech was a solid, polished performance, Mr Castro's voice stronger than at any point since he re-emerged into public life, the BBC's Michael Voss reports from Havana.
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August 6
HP CEO resigns. New York Times
Mark V. Hurd, who turned Hewlett-Packard into the world’s largest technology company on the back of fierce fiscal discipline, has been ousted from his post for misusing company expenses. Hurd had a “close personal relationship” with a contractor who helped with the company’s marketing and documents were found that had inaccurate expense reports that covered payments made to the woman.
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Komorowski is Poland’s new president. BBC News
Mr. Komorowski is the fourth democratically elected president of Poland and is seen by correspondents as someone who will lead the country into a period of political stability. His first foreign visits would be to Brussels, Paris and Berlin in order to "show Poland's European roots", the new, strongly pro-EU leader said.
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August 5
The new “Silk Road.” Business Week
The new Silk Road spans the globe, connecting companies and consumers in Latin America, the Mideast, Asia, and Africa, and generating some $2.8 trillion in trade, according to the World Trade Organization. King says emerging markets will grow about three times faster than rich nations this year and next. "There are now massive trade connections within the emerging markets," he says. "It means in one sense the emerging world is protected from the worst ravages of the developed world."
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Russia imposes temporary ban on grains. BBC News
Russia is to ban the export of grain from 15 August to 31 December after drought and fires devastated crops. Russia, one of the biggest producers of wheat, barley and rye, exported a quarter of its 2009 grain output. "The aim in this case is not to make more money, but to aid those farmers that need help today," the prime minister said at a government meeting.
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Norway, shielded from economic downturn. Business Week
With Western Europe's lowest jobless rate of 3.7%, vs. 10% in the 16-nation euro zone, Norway doesn't have a lot of people looking for work. When the economic downturn began, the government was able to create jobs by flooding the economy with cash to fix highways and railroads and for programs such as elder care, which shielded Norway from the worst of the credit crisis and kept consumer spending alive.
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Indonesia: economic golden child. New York Times
After years of being known for inefficiency, corruption and instability, Indonesia is emerging from the global financial crisis with a surprising new reputation. “Indonesia is one of the most interesting, most attractive destinations in the world,” said Lanang Trihardian, an analyst at Syailendra Capital, a fund management firm based in Jakarta. “Foreign investors have been flowing to Indonesia from maybe around mid-2009. We are seeing a lot of liquidity coming into Indonesia, and it is mostly going to capital markets, to bonds, to stocks.”
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Catering to the Brazilian consumers. Business Week
Brazilians are helping support sales as Americans cut spending, says Chris Adams, chief executive officer of Sherry-Lehmann. "New York buyers are still the foundation of our business. However to see, in a down economy, a three- to fourfold increase from a market is just fantastic." Brazil's economy is experiencing its fastest growth in 15 years, and the currency has doubled against the dollar since 2003. Armed with high disposable income, Brazilians have descended on New York.
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Curbing the Swiss Franc. Business Week
The Swiss central bank may have saved its economy by embracing Chinese-style currency policy. Faced with a surge in the Swiss franc that threatened to derail growth, the Swiss National Bank has bought euros aggressively, quadrupling its foreign-exchange holdings since March 2009 to slow the currency's advance and protect exporters.
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August 4
Focusing on China’s game market. CCN Go
More foreigners, specifically foreign gaming companies, are hoping to partner with Chinese companies to either import their games to China or export China’s games abroad. There is a trend that many say will only grow in coming years as foreign game developers and publishers want a piece of China’s lucrative gaming market, which was worth more than US$3 billion in 2009.
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New constitution for Kenya? BBC News
A count is under way in Kenya after its referendum on a new constitution, a key measure for political reform. The vote was part of a deal to end violence after the 2007 election, when more than 1,000 people died. If approved, the new document would limit presidential powers and set up a commission to settle land disputes.
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Google to sell brand names as key words in Europe. New York Times
Google that it would change its search policy for most of Europe to allow advertisers to buy and use as keywords terms that have been trademarked by others. Google’s move stems from a decision by the European Court of Justice in March. The court broadly ruled that Google had respected trademark law by allowing advertisers to bid for keywords corresponding to third-party trademarks. The decision will be effective Sept. 14 and extends to the rest of Europe changes that were made in Britain and Ireland in 2008. In the United States and Canada, Google has been using the policy since 2004.
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Outsourcing to India draws Western lawyers. New York Times
India’s legal outsourcing industry has grown in recent years from an experimental endeavor to a small but mainstream part of the global business of law. To win new clients and take on more sophisticated work, legal outsourcing firms in India are actively recruiting experienced lawyers from the West. American and British lawyers, who might once have snubbed at the idea of moving to India, or harbored an outright hostility to outsourcing legal work in principle, are re-evaluating the sector.
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Russia to decrease grain exports with drought. Business Week
Russian officials are discussing curbing grain exports as the worst drought in at least half a century threatens domestic shortages. Russia cut its 2010 harvest forecast yesterday by as much as 18 percent and the Union said exports may slump by almost half. Russia should suspend exports until it can assess whether there will be enough supply to meet domestic demand after crop losses, said Nikolai Demyanov, deputy chief executive officer of Glencore International AG’s unit International Grain Co.
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August 3
BP sells Colombian assets to pay off debt. Forbes.com
BP says it has agreed to sell its oil and gas exploration business in Colombia for $1.9 billion to a consortium of Ecopetrol, Colombia's national oil company, and Talisman of Canada. The company last month agreed to sell assets in the U.S., Canada and Egypt to Apache Corp. for $7 billion. It also plans to sell assets in Pakistan and Vietnam.
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China increases gold market imports and trading. Business Week
China will let more banks import and export gold and open trading further to foreign companies as near-record prices and falling stock markets spur demand in the world’s second-largest buyer of the metal. Gold prices gained. China may “increase foreign members on the Shanghai Gold Exchange and will also study ways to allow foreign qualified bullion suppliers to deliver to the exchange,” the People’s Bank of China said.
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Energy imports may decrease in China. Business Week
China, the world’s largest energy consumer, may reduce monthly coal imports to the lowest level in more than a year in the second half as the economy cools. “Demand growth from industries, including power, steel, construction material and fertilizer, has seen a noticeable decrease since April, and we expect the gain to ease further during the rest of the year,” said Shi Yu, an analyst with China Merchants Securities Ltd. in Hong Kong.
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FCC discusses internet neutrality. Business Week
Google Inc., AT&T Inc., and Verizon Communications Inc. executives are meeting behind closed doors with U.S. officials in talks that critics say reduce the public’s voice in keeping the Internet open. The companies sought a compromise, in a rare Saturday session last weekend at the Federal Communications Commission, on rules proposed by Chairman Julius Genachowski to regulate how phone and cable companies handle Web traffic such as Google’s YouTube videos.
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August 2
Foxconn reopens factory. BBC News
The iPhone manufacturer Foxconn has reopened a factory in India which was shut down temporarily when 250 workers fell sick, sending its shares up 9%.The plant in Madras (Chennai), which makes mobile phone parts, was closed last Monday after workers complained of nausea and giddiness.
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Newsweek sold to Sidney Harman. Forbes.com
Washington Post Co. has opted to sell Newsweek to Sidney Harman, an electronics tycoon with a history of philanthropy, in the hope of reassuring some as to the future of the news magazine. In announcing the sale, the Washington Post Co. said Harman pledged to keep most of the magazine's 300-plus staffers.
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U.S. troops to leave Iraq. BBC News
US President Barack Obama has confirmed the end of all combat operations in Iraq by 31 August. Some 50,000 of 65,000 US troops currently in Iraq are set to remain until the end of 2011 to advise Iraqi forces and protect US interests.The remaining 50,000 troops will stay in the country in order to train Iraqi security forces, conduct counterterrorism operations and provide civilians with ongoing security, said Mr Obama.
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AT&T Inc., Verizon Wireless plan to displace credit card companies. Business Week
AT&T Inc. and Verizon Wireless, the biggest U.S. mobile carriers, are planning a venture to displace credit and debit cards with smartphones, posing a new threat to Visa Inc. and MasterCard Inc. The partnership, which also includes Deutsche Telekom AG unit T-Mobile USA, may work with Discover Financial Services and Barclays Plc to test a system at stores in Atlanta and three other U.S. cities that would let a consumer pay with the contactless wave of a smartphone.
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August 1
Cuba will ease government role in economy. Reuters.com
The Cuban government plans to reduce its role in small businesses, but continue to direct a centralized economy that eschews markets and private property. Cuba has been in the grips of an economic crisis the past two years that has forced it to cut imports, freeze the Cuban bank accounts of foreign businesses on the island and hold off on paying its bills. Murillo said the Cuban government is looking at ways to modernize the island's economy, but that "one cannot speak of reform."
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State owned bidders fuel China’s land boom. New York Times
The Anhui Salt Industry Corporation is a state-owned company that has 11,000 employees, access to government salt mines and a Communist Party boss. The company is developing a complex of luxury high-rises here called Platinum Bay on a parcel it acquired last year by outbidding two other developers to win a local government land auction.
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July 31
Mozambican MP wants more African woman inclusion in economy. Angola Press
Mozambican MP, Luisa Diogo, said in Luanda that African woman inclusion in the economic life of their respective countries will lead to exclusion reduction and less possibility of conflicts. Women have proved to be more responsible in dealing with financial and economic aspects of life acknowledging that despite the progress in politics a lot must be done in the economic point of view.
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Beijing’s Asia Power Play. The Japan Times
China's economic and military may have grown in recent years along with its overseas trade and investment. China is becoming an oceanic power with growing clout in the Asia-Pacific region. Recently the Yellow Sea between Korea and China was added to the areas where Beijing is warning the United States and its allies not to intrude. "We resolutely oppose any foreign military vessel and planes conducting activities in the Yellow Sea and China's coastal waters that undermine China's security interests," a Chinese foreign ministry spokesperson declared.
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South Korea exports continue to rise. Business Week
South Korea’s exports increased for a ninth month in July as weakness in the won and the global economic recovery boosted demand for the nation’s cars, electronic goods and semiconductors. The economy’s resilience has spurred demand for the nation’s assets, with the won heading for a gain of about 3% in July, the biggest monthly advance since September 2009.
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BP to sell Vietnam, Pakistan assets. Business Week
BP Plc, seeking cash to help pay for the worst-ever U.S. oil spill, informed the governments of Vietnam and Pakistan that it put its production assets in the countries up for sale. The sales “will primarily come from our portfolio of upstream assets around the world, which will be of more value to others,” David Nicholas, a London-based spokesman at BP said.
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July 30
Russia lures investors for privatization. Allvoices
Russia is counting on foreign investors to help privatize an estimated $29 billion in assets to reduce the state's "excessive" presence in the economy. This is the largest privatization since the nineties and foreign investors said they were encouraged by the focus on restructuring the economy and raising funds, rather than just unloading property.
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Colombia FARC rebels speak with President-elect. BBC News
The Farc leader known as Alfonso Cano said the Marxist rebel group is willing to talk to the new Colombian government of President-elect Juan Manuel Santos and to search for a political solution to the 46-year-old conflict. "The success of Juan Manuel Santos this past 20 June guarantees political and strategic continuity for the Colombian oligarchy," he said referring to Mr. Santos's long-standing political connections.
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Disney sells Miramax. Forbes.com
The Walt Disney Co. agreed to sell its Miramax Films to an investor group for about $660 million, ending a 17-year association with the studio and a six-month bidding process. Disney had been looking to sell Miramax amid a studio overhaul because it no longer resonated with its other family centric studio units such as Pixar and Marvel.
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Facebook to hold IPO until 2012. Business Week
Facebook Inc. will probably put off its initial public offering until 2012, giving Chief Executive Officer Mark Zuckerberg more time to gain users and boost sales. Facebook would benefit from another year of growth absent the added scrutiny that comes with a public listing, instead of holding an IPO in 2011 as investors speculated.
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Desalination plant opens in Indian. BBC News
A desalination plant which begins operating in Madras will provide some of the cheapest drinking water in India. "We are using the advanced reverse osmosis technology. We are purifying the water by filtering it under high pressure. Unlike other desalination plants we are not boiling the water and as a result we are saving a lot of energy," Natarajan Ganesan, Joint General Manager of the Chennai Water Desalination company told the BBC. The plant will supply 1,000 litres of drinking water for just over $1 and could well be a "template" for other coastal Indian cities.
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July 29
Barnes and Noble pushes Nook sales. New York Times
In September, the chain will begin an aggressive promotion of its Nook e-readers by building 1,000-square-foot boutiques in all of its stores, with sample Nooks, demonstration tables, video screens and employees who will give customers advice and operating instructions. By devoting more floor space to promoting the Nook, Barnes & Noble is playing up what it calls a crucial advantage over Amazon in the e-reader war: its 720 bricks-and-mortar stores, where customers can test out the device before they commit to buying it.
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World’s largest wind project. RenewableEnergyworld.com
After nearly a decade of delays, ground was officially broken on the world's largest wind project, a 1,550 megawatt (MW) farm located in Tehachapi Pass, California. The project, which is being developed near the first large-scale wind farms installed in the U.S. in the 1970s and 1980s, is a powerful illustration of the growing size and scope of modern wind projects. The Alta development is expected to create more than 3,000 domestic manufacturing, construction and maintenance jobs and contribute more than a billion dollars to the local economy.
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Shadow economies increase worldwide. Business Week
It turns out that countries have two economies: the official one and a shadow version. The official economy is the one that governments and banking institutions measure with gross domestic product, tax receipts, social security contributions, employment identification numbers, and the like. The shadow economy is all the money and jobs generated outside the official economy, whether legally or illegally.
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Bidding war for Dollar Thrifty Automotive Group. Forbes.com
The Avis Budget Group entered a bid to acquire the Dollar Thrifty Automotive Group, effectively starting a bidding war with Hertz Global Holdings. Dollar Thrifty currently operates its two brands, Dollar Rent A Car and Thrifty Car Rentals, across 80 countries in a combined 1,500 locations.
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Surging economic growth in Germany. New York Times
Germany continued to show surprising strength Thursday as a drop in unemployment, coupled with better-than-expected profit at two of the country’s biggest manufacturers, underscored how the largest European economy was benefiting from a weaker euro and surging exports to emerging markets. Sustained growth in Germany would help Europe recover more quickly from the recent recession and cushion the effects of the Continent’s sovereign debt crisis.
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Venezuela affects toothpaste, makeup sales. CNNMoney.com
The world's largest toothpaste maker reported disappointing sales Thursday, and blames Venezuela. Colgate partially blamed Venezuela's hyperinflation and currency devaluation for the shortcoming, and even said it expects sales in that country alone to reduce yearly earnings by 10 to 15 cents per share.
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Galapagos Island removed from Unesco’s danger list. BBC News
A UN panel has voted to remove the Galapagos Islands from its list of precious sites endangered by environmental threats or overuse. Unesco's World Heritage Committee backed a Brazilian recommendation to withdraw the islands from the list, saying the Ecuadorian government had made significant progress addressing threats to its island. However the move was criticized by the International Union for the Conservation of Nature (IUCN), which said there was "still work to be done".
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Natural gas helps Exxon, Shell increase profits. New York Times
Exxon Mobil’s quarterly profit increased 85% on surging oil prices and a big rise in refining margins, while Royal Dutch Shell’s earnings rose 34%. After strong showings in the first quarter for both, the results raised hopes that both companies could start to offer investors meaningful growth again. Although, a global gas glut because of the economic crisis and a big increase in shale gas production means the outlook for gas prices is uncertain, which could put pressure on future earnings.
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July 28
Telefonica wins Vivo bid. New York Times
Telefónica, the Spanish telecommunications company, has won full control of Vivo, the mobile phone venture it had with Portugal Telecom in Brazil, after raising its bid for a third time, to 7.5 billion euros, thereby overcoming opposition from the Portuguese government. The agreement is expected to end a lengthy tussle between two European telecommunications operators that have come to rely increasingly on earnings from Brazil’s fast-growing mobile market to offset sluggish performances at home.
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Mexican tortilla show government can keep stable lending rate. Business Week
Corn tortillas in northwest Mexico City cost 9 pesos a kilogram (32 cents a pound) last month. Angeles Garcia recorded the same price a week ago. Tortillas are the biggest food component in Mexico’s inflation index. Government bonds are rallying as the readings cement economists’ expectations that central bank policy makers can keep interest rates at a record low to stimulate economic growth without fanning inflation.
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Trader’s owner passes. Business Week
Theo Albrecht, the billionaire whose expansion of no-frills Aldi Group grocery stores made him Germany’s third-richest man, has died at 88. The expansion of Aldi from Germany’s industrial Ruhr Valley into a global retailer that generated 53 billion euros ($68.9 billion) in revenue last year made Theo and his brother, 90- year-old Karl, two of the richest people in the world. The brothers’ key to success was their low-cost business model: a limited assortment of goods that pared down supply expenses and a minimal level of advertising.
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British PM Cameron begins trade drive in India. BBC News
The British government regards India as a vital regional and economic partner in the drive to boost exports and investment. Beginning his tour in Bangalore, Mr. Cameron will say he wants to make the UK the "partner of choice" for India. Business Secretary Cable believes British businesses "potentially could do a large amount of business in India" as a result of the move, which will also allow British expertise to be shared.
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July 27
China Central Bank says economy is slowing down. ABC News
The People's Bank of China (PBOC) said it was "prudently optimistic" about the economic outlook and ruled out any big policy changes in coming months, adding that inflationary pressure had eased. "The possibility of an economic slowdown and stabilization is relatively big, but the possibility of a double-dip is small," the central bank said.
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British reluctant to pay for online content. Business Week
UK consumers are less willing to pay for online content than web users in other countries, according to new research. It spells bad news for publishers looking to boost revenues from the internet. Globally, 43% of consumers are willing to pay to access frequently used content. In the Asia-Pacific region that figure increases to 59%.
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Wind power increase need for batteries. New York Times
On the cutting edge of a potential solution is Hawaii, where state officials want 70 percent of energy needs to be met by renewable sources like the wind, sun or biomass by 2030. A major problem is that it is impossible for generators on the islands to export surpluses to neighboring companies or to import power when the wind towers are becalmed. In New York and California, companies are exploring electrical storage that is big enough to allow for “arbitrage,” or buying power at a low price, such as in the middle of the night, and selling it hours later at a higher price. Renewable goals can be met, many in the industry insist. But if the energy source is intermittent, “you can’t do that without batteries of some sort,” said Peter Rosegg, a spokesman for the Hawaiian Electric Company.
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Britain PM speaks of India’s importance while visiting. The Hindu
I'm here with a very clear purpose: to renew the relationship between India and Britain; to re-launch a relationship that is stronger, wider and deeper. So if these are the foundations of a stronger relationship, how can that relationship benefit our countries and the wider world? I believe there are three global challenges we must take on together.
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Nike compensates Honduran workers. Time.com
Under pressure from fair-labor groups, Nike announced an agreement with one of Honduras' largest trade unions to create a $1.54 million "workers relief fund" for the factory employees laid off in 2009. Under the deal, Nike says it will work with its suppliers in Honduras to get still unemployed workers vocational training and hiring priorities as jobs open up.
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Disney buys Playdom. New York Times
The Walt Disney Company became Hollywood’s leader in the booming social game business by acquiring Playdom in a deal worth as much as $763.2 million. The purchase continues Disney’s effort to strengthen and diversify its digital media portfolio by betting on casual Internet games, in contrast to more complex games for platforms like Xbox and PlayStation.
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BP CEO is replaced. CNNNews.com
Tony Hayward will step down as chief executive of BP and will be replaced by American Robert Dudley. Like Hayward, Dudley is a long-time BP employee with more than 30 years in the oil business. Dudley's focus will likely remain on determining what went wrong and improving safety efforts.
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Thai Union Frozen Products Pcl buys MW Brands. Business Week
Thai Union Frozen Products Pcl agreed to buy MW Brands, a European tuna canner, for about 680 million euros ($882 million) from Trilantic Capital Partners. Thai Union outbid canned tuna maker Bolton Group and private equity funds such as Blackstone Group LP and Permira Advisers LLP in an auction, which was run for two months by UBS AG.
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Burma’s Than Shwe welcomed in Indian. BBC News
Reclusive Burmese junta leader General Than Shwe has received a red carpet welcome in the Indian capital on a state visit condemned by rights groups. He met Indian PM Manmohan Singh in Delhi on a rare five-day trip that aims to deepen the economic and strategic ties between the two nations.
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Yahoo Japan to use Google search. BBC News
Yahoo Japan has said that it will adopt Google's search engine technology, rather than Microsoft's which is used by its strategic partner Yahoo Inc. Yahoo Japan is the most popular search engine website in Japan. Yahoo Japan is 35%-owned by Yahoo Inc, but its majority shareholder is mobile phone and internet service provider Softbank, which has a 40% stake.
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New global rules for banks. New York Times
Central bankers and regulators have reached an almost unanimous preliminary agreement on new standards to reinforce the stability of the global financial system, adding to investors’ confidence in the outlook for many banks. Under the new requirements, banks would have to hold more in capital reserves and more cash on their balance sheets to cushion against unexpected shocks, though regulators have not specified a minimum amount.
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Israel offers incentives to draw foreign banks’ R and D centers. Business Week
Israel is trying to lure international banks to set up research and development centers in the country by offering to pay part of the employees’ salaries. “We want to attract large financial services companies, particularly big banks,” said Shani, who was previously the chief executive officer of the Israeli maker of digital- recording products, Nice Systems Ltd. “It will make part of their competitive advantage in the years to come.”
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July 25
India’s mining sector to slow down. Times of India
India's mining sector is likely to see a slowdown in growth to 8% this fiscal, even as the overall economy is poised for higher growth, the Prime Minister's Economic Advisory Council (PMEAC) has said. The government's Mining Bill, which stipulates license allocation on a first-come-first-serve basis and provides for giving a stake in projects to tribals, will adversely impact investments in the sector.
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Colombia seeks to reduce economic impact of row with Venezuela. News.xinhuanet.com
President Alvaro Uribe called on his countrymen to help northeast border areas reduce the economic impact caused by the country's diplomatic row with neighboring Venezuela. Cucuta is the capital of the North Santander province that borders Venezuela and whose economy is dependent on tourism and exports to Venezuela."Once the new president takes office, we'll ask him to declare economic and social emergency for this border area and take relevant measures," said Cristo, a senator from North Santander.
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Don’t internationalize China South Sea issue. Business Week
China’s Foreign Minister Yang Jiechi said the U.S. shouldn’t “internationalize” the issue of the South China Sea where Chinese territorial claims conflict with other nations. Yang was responding to U.S. Secretary of State Hillary Clinton who said resolving territorial disputes off China’s southern coast is “a leading diplomatic priority,” signaling her intention to intercede in the region.
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Shanghai should develop Yuan products. Business Week
Shanghai should become the pricing center for yuan-denominated financial products, Zhang Jianhua, director of the research department at the People’s Bank of China said. China is seeking to allow the yuan to rise to appease foreign criticism, while protecting exports and preventing a further slowdown in economic growth.
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Australia opposition vows to cut immigration is elected. Business Week
Australia’s opposition Liberal- National coalition plans to cut annual immigration by more than 40 percent by the end of its first term if it wins next month’s general election. “The coalition believes Australia needs a population that our services can satisfy, our infrastructure can support, our environment can sustain, our society can embrace and our economy can employ,” the parties said.
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July 24
Trader’s cocoa binge controls chocolate market. New York Times
A hedge fund manager here named Anthony Ward has all but cornered the market in cocoa. By one estimate, he has bought enough to make more than five billion chocolate bars. Mr. Ward, 50, is not some rabid chocoholic, former employees say. He simply has a head for cocoa. And, through his private investment firm, Armajaro, he now controls a cache equal to 7 percent of annual cocoa production worldwide, a big enough chunk to sway prices.
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Zyna, the Google of games? New York Times
The Zynga Game Network, as the company is officially called, is the hottest start-up to emerge from Silicon Valley since Twitter and, before that, Facebook. Unlike Twitter, which has meager revenue, Zynga is on a path to pocket as much as $500 million in revenue this year, according to the Inside Network, which tracks Facebook apps. It is the fast-growing maker of Facebook games like FarmVille and Mafia Wars, can be a heady affair given the company’s outsize ambitions
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Afghan transit trade. Thenews.com
Pakistan and Afghanistan are renegotiating their transit trade agreement which was signed in 1965. The revision is not only with regard to Afghan goods' transit to the Arabian Sea but also for the definition of the terms for Pakistan to secure routes to the Central Asian republics through Afghanistan. The majority of imported products booked for Afghanistan are ultimately smuggled back into Pakistan, and this hurts government revenues and causes incalculable damage to the local industries.
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Global economy reliant on African economy growth. BBC News
Gordon Brown has used his first major speech since leaving office to say the future growth of the world economy is reliant upon the development of Africa. "Future growth in the world economy, and future jobs in the developing world, will depend on harnessing both the productive potential and the pent-up consumer demand of this continent," he said.
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BP to drill off coast of Libya. BBC News
The deepwater drilling will take place in the Gulf of Sirte following a deal signed in 2007 with Libya on oil and gas development. Chief executive Tony Hayward at the time hailed it as "BP's single biggest exploration commitment" and "a welcome return to the country for BP after more than 30 years".
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Australia promotes Green emissions, vehicles. Business Week
Australia’s Labor government plans to spend A$394 million ($353 million) over the next four years to replace old vehicles with energy-efficient models. The government also plans to introduce mandatory emission standards for cars from 2015.
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July 23
Singapore may require further calibration. Bloomberg.com
Singapore’s inflation is likely to accelerate and policy makers should stay vigilant on the outlook for growth and prices, which may require the “further calibration” of monetary policy, the International Monetary Fund said. Singapore expanded at a record pace in the first six months of 2010, putting the economy in contention for the world’s fastest-growing this year. The central bank uses the Singapore dollar instead of interest rates to manage inflation, and on April 14 allowed a revaluation and shifted to a stance of gradual appreciation.
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German business confidence improves. BBC News
German business confidence jumped in July by the largest amount for 20 years. "This increase is the largest since German reunification. The German economy is in a party mood," said Hans-Werner Sinn, the Ifo's president. "These great numbers underscore the fact that the German economy is really running strong, especially compared to the rest of Europe."
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Singapore dollar strengthens. AFP
The Singapore dollar is expected to strengthen as the island's economy rapidly expands, the IMF said. n a report after annual consultations with the Singapore authorities, the International Monetary Fund (IMF) said the Singapore dollar "would likely strengthen in real effective terms over time as reforms promote faster productivity growth and the domestic economy continues to expand."
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July 22
Hungary IMF deal expiration. Business Week
The IMF and the EU abruptly called off talks with Hungary over their review of Budapest's €20 billion bail-out, originally agreed in 2008. The two parties complained at the resistance on the part of Mr Orban's new administration to reducing the country's deficit to GDP ratio to below three percent in 2011. Hungarian Prime Minister Viktor Orban said that the country should walk away from dealing with the international lender and negotiate only with the EU.
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California film industry hit by tax breaks elsewhere. Forbes.com
According to the report, the number of movies shot in California has shrunk from 272 in 2000 to 160 in 2008. The percentage of film jobs in the U.S. that are located in California has shrunk from 40% in 1997 to 37.4% in 2008. Those jobs have gone to states and countries with lucrative tax breaks for filmmakers.
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Copper demand stronger than thought, economy signaled. Bloomberg.com
Copper demand is “stronger” than U.S. economic signals suggest, said Freeport-McMoRan Copper & Gold Inc., the world’s biggest publicly traded producer of the metal. Rising demand in China, the world’s biggest buyer, and supply constraints will combine to support copper prices. Copper futures have more than more than quadrupled since 2002 as mining companies struggled to keep up with rising demand.
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New Peru forest law passed. IHB
According to the Minister of Environment, the draft legislation for Forestry and Wildlife is expected to be passed in August. The new law is required to fulfill the commitment made under the Free Trade Agreement with the USA. The commitment includes terms related to Land Use, Land-Use Change and Forestry.
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Infomercial business increases. Business Week
Traditional advertisers "can't ignore infomercials anymore. Before they saw it as carnival-y," says Allstar CEO Scott Boilen. "You can't ignore the Ped Egg, and the Topsy Turvy [Tomato Planter]," which grows tomatoes upside down and has been snapped up by some 10 million customers. ad rates for short infomercials are cheap, as little as $40 for a two-minute spot on a small cable station. Infomercial marketers got a boost during the recession as traditional TV advertisers pulled back, leaving some broadcasters with unsold air time.
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Oracle doubles acquisition budget. Forbes.com
Oracle will spend $70 billion in acquisitions over the next five years, Oracle President Charles Phillips said at the Brainstorm Fortune Tech conference in Aspen. "It's early in the game, and there's plenty left to do," he said. Acquisitions have been massive undertakings for the database company.
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July 20
Presidents Medvedev and Halonen meet to discuss relations. Rianovosti
Russian President Dmitry Medvedev arrived on a two-day visit to Finland in the city of Turku to hold talks with Finnish President Tarja Halonen. The talks will focus on Russian-Finnish relations including trade and economic cooperation, as well as partnership in the energy and lumber industries, European security and the simplification of a visa regime between Russia and the EU.
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BP sells assets to Apache Corp. to pay debt. Forbes.com
BP PLC is selling several major assets to Apache Corp. for $7 billion to help pay the costs from the Gulf of Mexico oil spill. BP Chairman Carl-Henric Svanberg said the deal with Apache is the first transaction meant to help pay for the spill. "The board believes that there are opportunities to divest assets which are strategically more valuable to other parties than they are to BP," he said.
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Honda introduces electric vehicle. CNNMoney
Honda announced it will begin selling two new plug-in electric vehicles in the United States in 2012. Before mass-marketing these vehicles, Honda will roll them out in a test program in California beginning this year. Participants in the test program will include Google, Stanford University and the City of Torrance, Calif.
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American Airlines and British Airways alliance approved. New York TimesAmerican Airlines and British Airways won final approval to expand a trans-Atlantic alliance on flights between the United States and Europe. The two carriers were cleared to jointly set prices, sell tickets and schedule international flights through their Oneworld alliance, exempt from antitrust rules, the United States Transportation Department said.
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Indian consumers go to London for luxury goods. Business Week
Luxury spending in India, the world’s second-most populous nation, was less than a tenth of that in China last year, according to Bernstein Research. “Indian consumers are buying a lot of luxury, but they aren’t buying it here,” said Mohan Murjani, a retailer who gave up selling the Gucci and Jimmy Choo labels two years after opening his first store in Mumbai, India’s financial center, in 2007. “I don’t see luxury taking off for at least another decade.”
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July 19
NokiaSiemens to buy Motorola unit. Forbes.com
Motorola Inc. is selling most of its wireless network division to NokiaSiemens Networks as part of a planned breakup of the company. Nokia Siemens Networks - a joint venture between Finland's Nokia Corp. and Siemens AG of Germany, has seen dwindling profits in recent years, worsened by the global economic downturn. The deal, expected to be completed by the end of the year, would improve profitability and "have significant upside potential," Nokia Siemens said.
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Redbox to challenge Netflix. Business Week
Redbox, which became the fastest- growing U.S. video retailer with DVD kiosks and a $1-a-day rental price stores couldn’t match, is developing an online strategy to stay competitive with larger rival Netflix Inc. The company, the biggest division of Coinstar Inc., may use a Web service to expand its library beyond the 200 or so titles crammed into each of its 24,000 or so DVD dispensers, President Mitch Lowe said
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Armenia, EU launch association agreement. azatutyun.am
Armenia began the first round of negotiations with the European Union over an “association agreement” that would significantly upgrade its political and economic ties with the bloc. The agreement stemming from the EU’s Eastern Partnership program for six former Soviet republics, including neighboring Azerbaijan and Georgia, would entitle the country to a permanent free trade regime with the EU and facilitate visa procedures for its citizens traveling to Europe.
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Emirates to become a world leading carrier. Business Week
Emirates announced an order for 30 Boeing Co. 777-300ER aircraft valued at $9.1 billion, as the largest Arab airline expands its fleet of long-range jets. The order “affirms Emirates’ strategy to become a world leading carrier and to further establish Dubai as a central gateway to worldwide air travel,” Emirates Chairman Ahmed bin Saeed al-Maktoum said.
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July 18
Ford and Jiangling partnership. BBC News
Ford has announced an expansion of its partnership with Jiangling Motors in China with a new $300m (£196m) plant. The plant will begin production in 2012 and will produce 300,000 vehicles a year.
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Chavez’s version of socialism in Venezuela. Associated Press
"Basically he (Hugo Chavez) recognizes that in this day and age in a global economy ... complete state control would just doom the country," said Michael Shifter, an analyst at the Washington-based Inter-American Dialogue. So his strategy has been to selectively nationalize companies, set up state-run supermarkets and promote worker-managed businesses, while trying to convince Venezuelans to accept his vaguely defined brand of "21st Century Socialism."
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ID and breath test to buy wine? NPR
Buying wine in Pennsylvania may get a little easier over the next few months. The Pennsylvania Liquor Control Board is testing two automated wine kiosk machines in an effort to bring wine into the state's grocery stores for the first time. But the new convenience comes at a cost: two rounds of identity verification and a breath test.
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Pakistan-Afghan agreement is signed. CNN.com
Pakistan and Afghanistan signed a landmark trade agreement, with U.S. Secretary of State Hillary Clinton witnessing the deal as part of American efforts to bring the two countries closer together. Washington is hailing the deal as the most significant bilateral treaty yet between the estranged neighbors, both of which are U.S. allies in the battle against al Qaeda and the Taliban.
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Burka ban is “un-British.” BBC News
Tory MP Philip Hollobone introduced a private members' bill which would make it illegal for people to cover their faces in public. Damian Green said trying to pass such a law would be at odds with the UK's "tolerant and mutually respectful society". The bill, which was overwhelmingly approved by France's lower house of parliament, must now be ratified by the Senate in September to become law. If it is passed, it will be illegal to wear garments such as the niqab or burka, which incorporate a full-face veil, anywhere in public.
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July 17
Australia PM election: will it bring about change in the country? BBC News
PM Gillard and Kevin Rudd will be running in a general election August 21. "This election is about the choice as to whether we move Australia forward or go back," Ms Gillard said. "Moving forward means moving forward with budget surpluses and a stronger economy."
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The affect of China’s slowing economy. The Hindu
China's moves to bring back in control its rapidly over-heating economy appear to have paid dividends, with the economy showing signs of slowing in the second quarter of this year. “A slowdown in the growth rate will benefit the economy because it will prevent it from growing too fast and being overheated,” said Sheng Laiyun, a spokesman for the NBS.
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July 16
The affect of the Open Championship. Herald Scotland
The 150th Anniversary Open Championship, which got under way yesterday at St Andrews, is expected to deliver £80 million in economic benefits to Scotland. The marketing effect of the tournament, which features top players including Tiger Woods and Phil Mickelson, is generated from more than 3000 hours of TV coverage being broadcast across the world.
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Laborers move to Bangladesh, out of China. New York Times
Bangladesh is the place where foreign manufacturers may increasingly turn, if the rising wage demands of factory workers in China prompt companies to seek new pools of cheap labor elsewhere. As costs have risen in China, long the world’s shop floor, it is slowly losing work to countries like Bangladesh, Vietnam and Cambodia — at least for cheaper, labor-intensive goods like casual clothes, toys and simple electronics that do not necessarily require literate workers and can tolerate unreliable transportation systems and electrical grids.
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Britain delays universal broadband goal. Business Week
The previous Labor government's ambition to bring broadband to every household in Britain by 2012 was dashed yesterday when the coalition pushed back the date by three years, blaming a lack of funds. The Culture Secretary, Jeremy Hunt, pledged to bring in the "best superfast broadband network in Europe" by 2015 but said universal broadband of at least 2 Mbps would not be a reality in the next two years, although it would be in place "within the lifetime of this Parliament."
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Burberry to profit with Chinese acquisition. Business Week
Burberry Group Plc, the U.K.’s largest luxury retailer, will take control of its franchised stores in China for 70 million pounds ($108 million) in a transaction that may boost earnings by almost 10%. “This is a very attractive deal from a strategic and financial perspective, giving us control in a key growth luxury market,” Chief Executive Officer Angela Ahrendts said. “We can see clear opportunities to further increase sales and profits.”
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Yoga soars as Americans seek refuge from economy. ABCNews/Money
Yoga has seen a sharp jump in the past three years, and now has about 14 million practitioners, compared with just 11 million followers three years ago. Many of the new students are men who are trying to reduce the stress with the downturn in the economy.
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Toyota builds an electric car with Tesla. Forbes.com
Toyota and Tesla have signed an agreement to start developing an electric version of Toyota's SUV to go on sale in 2012. Toyota is still going ahead with plans for a small urban electric car for 2012, likely powered by lithium batteries made by Panasonic, its joint venture partner in Japan.
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July 15
Coca-Cola World Cup song is marketing winner. Business Week
Music industry executives have been making an unusual pilgrimage to Coca-Cola's Atlanta headquarters, a telling measure of the company's successful World Cup soccer marketing blitz. They want to learn how Coke turned a song called Wavin' Flag by a little-known Somali-Canadian hip-hop artist into a World Cup anthem and No. 1 iTunes hit in 17 countries in less than a year.
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Siemens, Russia sign train, wind turbine deals. Straits Times
Siemens signed deals worth several billion Euros envisaging the supply of regional trains and wind turbines to Russia. Under the agreements, Siemens is to modernize 22 Russian railway switching yards by 2026 and supply Russian Railways (RZD) with 240 regional trains over the next ten years.
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Volvo calls for emission openness. BBC News
Volvo has called for greater openness about all harmful emissions from cars. Volvo's UK's managing director Peter Rask said buyers should also be told about the level of nitrogen oxide (Nox) and hydrocarbons vehicles churn out. "We would like to see a new environmental label that would highlight this in a simple way."
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July 14
Hong Kong may enact a minimum wage. CNN.com
Hong Kong lawmakers resumed debate on a bill that may result in the region's first statutory minimum wage. The Minimum Wage Bill is a controversial piece of legislation that lawmakers hope will protect the most vulnerable workers in Hong Kong, one of the few places in the world without any sort of minimum wage law.
Full article
Yum! Brands expanding worldwide. Business Week
For Yum! the task is to forge onward in this virgin territory, but also to shore up its gains against the hungry McDonald's and other fast-food giants, all the while trying to keep the home fires burning back in the US, where sales are challenging because consumers are watching their wallets and their waistlines. The 23 years since Yum! opened its first KFC in China near Beijing's Tiananmen Square provide a masterclass in overseas expansion.
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Spanish PM predicts economic improvement. AFP
Prime Minister Jose Luis Rodriguez Zapatero predicted that the Spanish economy will likely grow during the second quarter after it edged out of recession in the first. He based his prediction on indicators pointing to a rise in exports and industrial production, as well as an increase in the number of people who have signed up to the social security system, a sign that hiring by firms is up.
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Irish economy has stabilized but risk elevated. Reuters.com
The International Monetary Fund said Ireland's fiscal and banking measures helped stabilize the economy but cautioned that economic vulnerabilities remain elevated. In its annual review of Ireland's economy, the IMF said Irish gross domestic product will likely fall by around 0.5%, maintaining its forecast from June when an IMF mission visited Dublin.
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Brazil Bovespa declined with slow down in U.S., China. Business Week
The Bovespa stock index fell after reports signaled economic growth may be slowing in the U.S. and China, the biggest buyers of Brazilian exports. Iron-ore producer Vale SA declined as metals prices dropped. Steelmaker Usinas Siderurgicas de Minas Gerais SA slid for a third day after Banco Santander SA said it scrapped a plan to raise steel prices.
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Europe clears Trans-Atlantic Air Alliance. New York Times
British Airways, American Airlines and Iberia won European Union antitrust clearance to deepen their Oneworld alliance on trans-Atlantic routes and better compete with rival groups. The alliance members want to broaden their pact to take advantage of the “Open Skies” agreement between the United States and the European Union, which liberalizes trans-Atlantic aviation.
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Credit Suisse offices raided in Germany. CNN News
Credit Suisse Group AG’s offices in Germany were searched today in a probe into allegations that its employees may have helped clients evade taxes. Germany has been rattled by probes that showed people hid assets in accounts in Switzerland and Liechtenstein to avoid paying taxes.
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July 13
China improves food regulations. CNN News
Chinese government officials pledged to improve regulations on food, particularly dairy products, following last week's seizure of 64 tons of milk powder containing 500 times the acceptable level of toxic melamine. "China attaches great importance to food safety, particularly dairy quality and safety," Deputy Secretary for Health Supervision Chen Rui said.
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Tupperware parties reshape India’s kitchens. Business WeekAs consumer-products companies compete to profit from booming growth in Asia's emerging markets, they could learn from an unlikely teacher, Tupperware Brands. The company came to life in the U.S. in the 1940s selling plastic food storage containers and gained fame for its unusual distribution strategy: Hundreds of thousands of homemakers held so-called Tupperware Parties to introduce neighbors to the new products and earn income by selling the colorful, vacuum-sealed kitchenware.
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Paul the octopus retires. CNN News
Paul the octopus, who correctly predicted the outcome of eight World Cup matches in a row, is officially retiring from the prediction business. "A host of offers from around the globe will be carefully vetted in the coming days to see if there are opportunities to spread Paul's fame even further, without involving the canny cephalod directly," Sea Life aquariums said.
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Moody’s cuts Portugal’s credit rating. CNN News
Moody’s rating agency cut Portugal's long-term credit rating to A1 from Aa2 on concerns over its debt to gross domestic product and debt to revenue ratios, which have risen rapidly over the past two years. This means Portugal will remain highly indebted while its economy struggles to recover.
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EU bank stress tests. Business Week
European finance ministers have defended stress tests currently being carried out on 91 of the region's banks, amid EU calls for governments to be ready with aid when the results are published on 23 July. With some analysts predicting that between 10-20 banks could require millions of euros in recapitalizations, EU economy commissioner Olli Rehn said that national capitals must "prepare for any possible pockets of vulnerability" by getting their "backstops" in place.
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Tyco Electronics to buy ADC Telecommunications. New York Times
Tyco Electronics has agreed to buy ADC Telecommunications, a broadband equipment maker, for about $1.25 billion in cash. The deal, which will begin as a tender offer, is expected to close by the fourth quarter this year. Tyco said it expected the deal to add to its earnings by 14 cents a share, excluding acquisition costs.
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Advanced economies get clever on oil. AFP
The world is raising its overall game in the use of oil, with advanced economies reducing dependence through changes in consumption, and opening a window of price stability, the IEA said. Increased economic activity in advanced economies is no longer matched by a commensurate rise in oil consumption the International Energy Agency said, pointing to an 18-month window of probable stability on the oil market.
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July 12
Aon to buy Hewitt to create a new unit. Forbes.com
Aon Corp. agreed to buy human resources company Hewitt Associates for $4.9 billion in cash and stock to expand its consulting operations. Aon plans to integrate Hewitt with its existing consulting and outsourcing operations and create a new unit, Aon Hewitt, after the deal closes. Russ Fradin, chairman and chief executive of Hewitt, will become chairman and CEO of Aon Hewitt.
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Spain hopes World Cup win helps economy. AFP
Spain, struggling with an unemployment rate of around 20%, hopes winning the World Cup for the first time will give its economy a much-needed boost. "It generates confidence in our country, here and abroad, and that will also be good for GDP," Finance and Economy Minister Elena Salgado said.
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E.U. adopts new executive pay standards. Forbes.com
The European Parliament on July 6 adopted the new Capital Requirements and Bonuses Package (CRBP), which could further transform the bonus culture at European banks. The package is part of the broader E.U. Capital Requirements Directive, and mandates that banks and investment firms adopt remuneration policies that are consistent with effective risk management.
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Hefner and Penthouse in bidding war for Playboy. CNNMoney.com
Founder Hugh Hefner proposed to take Playboy private Monday morning. Later in the day, the owner of Penthouse magazine said it will put up a bid for its longtime competitor. Hefner offered to buy the remaining shares of the company that he didn't already own at $5.50 each
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World Cup rebrands South Africa. BBC News
The slogan Ke Nako, or "it is time", has been the catchy theme phrase of the recent World Cup, promoting the idea of a South Africa ready and able to host huge global events. "There has also been a reputational boost for South Africa that can help bring inward investment and visitors,” says Lee-Anne Bac, director at Grant Thornton Strategic Solutions in Johannesburg. However, is South Africa now ready for the post-World Cup economic challenges that face the nation, and can it carry forward the momentum created by hosting the event?
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Singapore’s economy grows 20%. Business Week
Singapore’s economy grew more than 20% for a second quarter as rising exports boosted manufacturing output and the opening of two casinos spurred tourist arrivals. Singapore’s strengthening economy has added to an Asian rebound that prompted central banks to raise interest rates in recent weeks, even amid concern that Europe’s debt crisis will slow the global recovery.
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Televisa provides airport communications deal. Reuters.com
Mexico's top broadcaster Televisa is interested in providing telecommunication services at an airport the government plans to build south of the popular Caribbean resort of Cancun. Televisa has diversified from its core broadcast business in recent years, adding pay television and fixed-line phone to its services.
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July 11
Switzerland looking to ASEAN countries. Business Mirror
Switzerland is eyeing closer trade relations with the Association of Southeast Asian Nations (Asean), citing the region’s objective of establishing a single-market economy by 2015 and the fact it continues to attract potential investments for its member-economies. Dr. Doris Leuthard, president of the Swiss Confederation, led a recent business delegation to the Asean secretariat in Jakarta, Indonesia, to discuss its increasing trade, as well as political and security engagements in the region.
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How can Wikipedia grow? New York Times
After years of spectacular growth, frequent derision and bitter controversy, Wikipedia may have found its ultimate challenge: success and public acceptance. Since search engines are useful only when there is an abundance of researched and reliable material, the company has paid translators and offered Google translation kits to foster content in many languages that are underrepresented on the Internet, including Arabic and many in South Asia.
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Solar eclipse on Easter Island. BBC News
A total solar eclipse has crossed the South Pacific, with thousands of tourists and scientists gathered on Chile's Easter Island to witness it. The eclipse started at 1815 GMT about 700km (440 miles) south-east of Tonga, and reached Easter Island by 2011 GMT. The population of the island , an Unesco World Heritage site, doubled to about 8,000 for the event.
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Dubai World renegotiates debt terms. Business Week
Dubai World, the state-owned company seeking to renegotiate terms on $23.5 billion of debt. Dubai World and a group of its seven biggest lenders agreed to the broad terms of the restructuring and they will make a presentation on the plan to the remaining nearly 70 banks on July 22. The global credit crunch has battered Dubai’s real-estate market and left the emirate’s companies unable to raise loans to repay debt. Property prices have fallen more than 50 percent in the city as banks reduced mortgage lending and speculators fled.
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July 10
Soybean imports from Argentina to China increase. Business Week
Soybean imports by China, the biggest buyer, jumped to a record in June after a halt to Argentine soy oil shipments and increasing feed consumption boosted demand from crushers. China halted soybean oil shipments from Argentina, the world’s biggest supplier, in April as part of a disagreement over antidumping measures. Soybean imports may increase as hot weather and rain damages crops in China, supporting prices that have fallen about 9% this year on expectations of record global oilseed harvests.
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Apple opens Shanghai store to increase sales. Business Week
Apple Inc. opened its second China store today as the maker of iPhones and iMacs seeks to catch rivals including Nokia Oyj and Lenovo Group Ltd. in the fastest-growing major economy. Apple is expanding its network to reach more customers in China, where its sales trail Nokia and Lenovo, and said this week it plans “many” more Apple stores for China. The company’s first China store opened in Beijing in July 2008.
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Australia turns to desalination for water. New York Times
In one of the country’s biggest infrastructure projects in its history, Australia’s five largest cities are spending $13.2 billion on desalination plants capable of sucking millions of gallons of seawater from the surrounding oceans every day, removing the salt and yielding potable water. The country is still recovering from its worst drought ever, a decade-long parching that the government says was deepened by climate change. With water shortages looming, other countries, including the United States and China, are also looking to the sea.
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July 9
Vuvuzelas of the World Cup may improve South Africa economy. CNN.com
The sound of vuvuzelas has been a feature of every match at this year's World Cup, but one Cape Town business is using them to create a different kind of buzz. Adam Carnegie is the creator of eco-friendly, custom-crafted horns made from dried kelp plant. As well as using sustainable materials, he hopes to create sustainable employment in the community.
Full article
Google license renewed by China. BBC news
Chinese users will be sent to a "landing page", which will send them to the Hong Kong site, instead of revoking the license after Google began redirecting Chinese users to its unfiltered search site in Hong Kong. "We are very pleased that the government has renewed our ICP (internet content provider) licence and we look forward to continuing to provide web search and local products to our users in China," Google's lawyer David Drummond said.
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China, France strengthen relationship. Xinhuanet.com
Wu Bangguo, China's top legislator, met with French President Nicolas Sarkozy to deepen the strategic cooperative relationship between their countries. Since China and France initiated diplomatic ties 46 years ago, their bilateral relationship has played a leading role in relations between Western countries and China because of its pioneering nature and strategic significance.
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Peugeot, Changan build cars together. BBC news
Peugeot Citroen has become the latest major carmaker to partner with Changan Automotive after finalizing a deal to build cars in China. The deal is designed to give the French carmaker a bigger share of the rapidly-growing Chinese car market, which is already the biggest in the world. China is seen as an increasingly important market for global carmakers who suffered massive declines in demand in Europe and the US during the global downturn.
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The North Sea oil rush. Business Week
A report by the consultancy Deloitte shows that exploration activity in British waters and other parts of the North Sea is booming. "The North Sea is not by any means the easiest place for exploration firms to operate," said Graham Sadler, the managing director for petroleum services at Deloitte and author of the report. "But the market has stabilized in recent months and strong demand from places like China and the other BRIC countries has continued.
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Wal-Mart benefits by controlling its suppliers. Forbes.com
Wal-Mart is by far the largest retailer in the world with more than $400 billion in store revenues as of 2009, far ahead of competitors like Costco, Target and Best Buy. Retail and consumer goods manufacturers realize significant sales through Wal-Mart's retail channel. This gives Wal-Mart leverage to influence and push suppliers to sell at cheaper prices. Wal-Mart, with its power over suppliers and strong credit quality, can thus efficiently manage its working capital.
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Telefonica amends offer to Vivo to appease Portugal. Business Week
Telefonica wants to merge Vivo with Telecomunicacoes de Sao Paulo SA, or Telesp, the Spanish company’s fixed-line unit in Brazil. Adjusting the offer to ensure Portugal Telecom has a stake in the combined group would appease the Portuguese government, said Banco BPI analyst Pedro Pinto Oliveira.
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China export growth to decrease. CNNMoney.com
Growth in China is slowing down. After the country posted 11.9% growth in the GDP for the first quarter of this year compared to last, there's really no other option. For one, the sovereign debt scare in Europe, which has eroded the purchasing power of China's largest export market, will be a hit to the economy. However, investors are realizing that China's growth remains attractive because Beijing is turning to a new group of consumers: their own citizens.
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World’s largest vanilla industry struggling. CNN.com
The world's largest vanilla industry, Madagascar, renowned for its high quality vanilla and is the world's leading exporter of the spice, is feared to be on the verge of collapse as farmers struggle to earn a living. Abysmal wages, sharp competition from markets in Asia, and the growing popularity of synthetically produced alternatives means Madagascan farmers are abandoning their crops.
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World Cup champion country to benefit from economic improvement. Business Week
The real winner after this weekend’s World Cup final may be the economy of the champion, as either Spain or the Netherlands will get a boost from victory in the world’s most-watched soccer match, economists say. Triumph in the final at Johannesburg’s Soccer City on July 11 could add as much as 0.25 percentage point to annual economic growth for the winning team’s country from increased consumer spending, according to ABN Amro Bank NV economist Hein Schotsman in Amsterdam.
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India exports 1 million tons of sugar. Business Week
India, the largest sugar user, may have enough supplies to ship at least 1 million metric tons as the nation enters the export market for the first time in two years. “Physical demand for white sugar is quite strong all over the world,” Narendra Murkumbi, managing director of Shree Renuka Sugars Ltd, said. “The Asian market is very tight as there is a lot of pent-up demand. Thailand, which is traditional exporter, is buying sugar.”
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July 8
Apple: success in China? New York Times
Although Apple is widely admired in China, most fans of its products here have been buying their iPhones, iPods and Mac computers from smugglers who operate through underground electronics markets. Apple is opening a flagship showroom in Shanghai, one of its largest stores in Asia, to make a new push to tap into the world’s biggest mobile phone market and grab a bigger share of China’s fast-growing consumer electronics business.
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Singapore may surpass China in economic growth. Business Week
Singapore may overtake China as Asia’s fastest-growing economy this year, increasing the attractiveness of the city state’s stocks and putting pressure on policy makers to check inflation with a stronger currency. “Singapore has unique growth characteristics of its own as a function of having some new areas of growth,” said Manraj Sekhon, the London-based head of international equities at Henderson Global Investors Ltd., whose firm oversees about $94 billion in assets, including shares in Singapore companies.
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Vietnamese hoard U.S. currency to hedge against inflation. New York Times
“Vietnamese people always want to have dollars,” Mr. Phan, an engineer, explained. Developing countries, and these days even developed ones like Greece and Spain, constantly strive to retain the confidence of fickle foreign investors. Vietnam has a slightly different problem. Its government is struggling to restore faith among domestic investors like Mr. Phan. The Vietnamese are suspicion that the governing Communist Party will do anything to hit its economic growth target before a party congress early next year, even if that means letting inflation get out of control. To hedge against that possibility, Vietnamese have been vacuuming up gold and United States currency.
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Brazil’s strategic planning for pre-salt. Fobes.com
Brazil’s National Congress is working its way through a slew of legislation designed to prepare the South American giant for its coming entry into the global league of major energy producers. Although Brazil’s economic prospects are looking bright, it must first overcome the immense challenge of actually getting the oil from beneath the ocean floor.
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Amazon to sell groceries in U.K. Business Week
Amazon.co.uk announced that it was to take on Tesco, Sainsbury's, and Asda with the launch of an online grocery store offering "free delivery on thousands of great value household, niche, ethnic and international products." Natalie Berg, research analyst at Planet Retail, said: "This is big news in the online market. When the world's largest online retailer makes a play it is bound to shake a few things up." She added: "We have seen supermarkets move into selling DVDs and books. This is the first time it has happened the other way around."
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German imports, exports rise sharply. BBC news
Imports rose by 14.8% in May compared with the previous month, while exports grew by 9.2%. Both figures were much higher than analysts had expected. The reason, they said, was strong demand for German goods in Asia. A weakening euro, which makes the goods cheaper overseas, had also helped.
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Thailand’s economy improving despite tourism decrease. Business Week
While Thailand's famous tourist industry is flat on its back, the economy is headed for 6% growth this year, according to analysts at Forecast in Singapore. Its stock market is up 11%, an achievement when most of the world's bourses are sharply down. Also the baht, Thailand's currency, has crept up almost 3% since the start of the year.
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July 7
Bajaj seeks 70% sales from abroad, challenging Honda. Business Week
Bajaj Auto Ltd., India’s second- largest motorcycle maker, plans to win 70% of its sales from overseas markets, challenging Honda Motor Co. in Latin America, Asia and Africa. It will be easy for Bajaj to compete with Chinese products in overseas markets,” said Umesh Karne, a Mumbai-based analyst at Brics Securities Ltd., who has an ‘outperform’ rating on the stock. “The challenge will be to compete with Honda, which has a bigger brand and wider distribution networks around the world.”
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Xstrata to invest in copper mine in Peru. BBC.com
Anglo-Swiss mining group Xstrata has announced a huge expansion of a copper mine in southern Peru. The company says it will boost copper output by 60% and extend the life of the mine by about 20 years. The investment is part of Xstrata's strategy to boost the group's overall volumes by 50% by 2014.
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EU, Vietnam partnership agreement. Vietnam News
Viet Nam and the European Union are close to concluding a Partnership and Co-operation Agreement (PCA). Regarding the EU's recognition of Viet Nam's market-economy status, Moran said the EU understood Viet Nam's aspiration, but the issue was probably in the context of a free trade agreement negotiation.
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Sunny Mexico: an energy opportunity. Greentech Solar
Mexico’s solar resources are among the best in the world, far superior to those of Germany and Spain, the countries currently recognized as the world leaders in installed photovoltaic systems. Just 0.06% of the Mexican national territory would be sufficient to generate the overall electricity consumption of Mexico in 2005 according the GTZ report "Nichos de mercado para sistemas fotovoltáicos en conexión a la red eléctrica de México" (June 2009).
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India needs a “contingency plan” to contain inflation. Business Week
India needs a “contingency plan” by September to control inflation as prices are showing few signs of easing, former central bank Governor Bimal Jalan said. Consumer prices in India are rising at least twice as fast compared with inflation rates in Brazil, Russia and China, the other three nations that make up the BRIC economies.
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Obama announces increase in U.S. exports. CNN.com
A series of steps aimed at bolstering U.S. exports has so far brought a 17% increase in the first four months of 2010 over the same period last year. Obama's National Export Initiative, introduced during his State of the Union address in February, seeks to double exports over the next five years.
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July 6
Russia’s growing influence in Belarus and Kazakhstan. Forbes.com
The common Customs Code stage of the customs union between Russia, Belarus and Kazakhstan came into effect July 6. The Customs Code, the
second stage of the customs union that was launched by the three countries on Jan. 1, sets rules for customs control and clearance and brings Russia, Belarus and Kazakhstan under a unified regulatory system.
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Queen Elizabeth II makes first U.N. speech since 1957. CNN.com
Britain's Queen Elizabeth II addressed the United Nations for the first time in more than 50 years, saying she has "witnessed great change, much of it for the better" since her previous speech there in 1957. She spoke of the importance of leadership and how critical the role of the United Nations continues to be in upholding human rights in the 21st century.
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China Bank $22.1 billion IPO. CNN.com
Agricultural Bank of China is set to raise up to $22.1bn in the world's biggest initial public offering, underscoring the strength of investor faith in the growth of the Chinese economy. AgBank, the last of China's big state-owned banks to go public, has managed to complete its offering during a period in which global markets have tumbled and dozens of IPOs have been scrapped.
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Toyota invests in India engine plant. Business Week
Toyota Kirloskar Motor Ltd., the Indian unit of the world’s biggest carmaker, will invest 5 billion rupees ($107 million) on a facility to build engines and transmissions for its Etios model. Domestic production of engines will enable the company “to provide the best quality product at a competitive price,” Nakagawa said. Automakers are betting on China and India that have bucked a slump in worldwide vehicle demand.
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July 5
Libya may take BP stake. CNN.com
Libya's top oil official said that his country's sovereign wealth fund should invest in BP to take advantage of the troubled company's falling share price. The Arab Gulf is home to some of the world's biggest sovereign wealth funds, which have previously stepped in to inject capital into western banks, including Citigroup and Barclays.
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U.S. companies eye British takeovers. Business Week
American companies are preparing to launch daring takeover bids for a host of Britain's biggest corporate names, including possibly BAE Systems and AstraZeneca thanks to the weakness of the pound against the dollar. Sterling has lost about a quarter of its value against the dollar in the last two-and-a-half years, and combined with the feeble recovery in the UK economy, British firms have become much cheaper for American suitors looking for a good deal.
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Tesla CEO talks to company future optimistically. Forbes.com
On June 29 Tesla became the first car company since 1956 to go public in the U.S. Since its Nasdaq debut at $17 a share, the stock climbed as high as $30 before settling back down just below $20 a share at the end of the week. Tesla founder and Chief Executive Elon Musk boasts, "I think the fact that some of the smartest investors in the world have participated in this IPO is a good indication of our future."
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Finger vein scan ATM in Poland. CNN.com
Poland's cooperative BPS bank says it's the first in Europe to install a biometric ATM, allowing customers to withdraw cash simply with the touch of a fingertip running on the latest in "finger vein" technology. Unlike fingerprints, which leave a trace and can be potentially reproduced, finger veins are impossible to replicate, according to Jones, because they are beneath the surface of the skin.
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Serbia plans to attract 2.5 to 3 million annually. Glassbije.org
Serbia’s goal is to attract from 2.5 to 3 billion dollars of direct foreign investments annually, Vesna Arsic, the state secretary in the Economy Ministry, said. From 2001 to 2009, 14.1 billion dollars have arrived in Serbia, which ranks it at the fourth place in terms of regional investments, after Bulgaria, Romania and Croatia, Arsic said at the first session of the Assembly of the Diaspora and Serbs in the region, dedicated to Serbia’s economic development.
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Creating top universities in Taiwan. Focus Taiwan
President Ma Ying-jeou said the government would continue its commitment to provide additional funding to upgrade the quality of local universities and enable them to join the world's top 10, top 100 or top 200, or top 200."Despite our financial straits, the government will definitely implement a second five-year program to upgrade local universities to world standards and help them win international prestige, " Ma said.
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The EU "Quality Tourism" label. Business Week
The EU executive proposed on June 30 the creation of a prestigious EU "Quality Tourism" label to reward the best tourist businesses, activities and destinations, from the most secluded and exclusive Greek beachside bars to the scariest Transylvanian vampire tour. The quality mark is to go considerably further than the bloc's existing but largely unknown Eden, or European Destinations of Excellence scheme, established in 2006 to promote destinations that ensure social, cultural and environmental sustainability.
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July 4
Google looks to emerging market to push Android growth. New York Times
To attract programmers to its Android operating system, Google may offer tools that help them sell subscriptions, virtual goods and other items from within applications on mobile phones, Andy Rubin, vice president for engineering at Google said. Google plans to push its Android mobile software in India and China and is exploring ways for developers to make more money from applications, stepping up competition with Apple and Nokia.
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Iraq diversifies for economic development. Newsystocks.com
Iraq announced its five- year National Development Plan (NDP) targeting annual economic growth of 9.4 percent with attempts to cut unemployment. T he plan will include more than 2,700 projects worth about 186 billion U.S. dollars and is aiming at diversifying the Iraqi economy away from oil, as the crude exports represented some 90 percent of the country's revenue.
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Philippines receives its 15th president.mb.com.ph
President Benigno Aquino III was inaugurated as the 15th President of the Republic of the Philippines at the Quirino Grandstand, where he was the seventh Chief Executive to be sworn in at the historic stage. There were no soaring oratories usually associated with inaugurals, no grand vision described, but a lot of tactical, down to earth and do-able recommendations.
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July 3
UAE, Ireland sign double taxation avoidance on income agreement. Zawya.com
An agreement of double taxation avoidance on income has been signed between United Arab Emirates and Republic of Ireland. HE Al Khoori noted that this agreement is one of the most important pillars that contribute to developing and strengthening cooperation and partnership between the two countries including all areas of common interest. The agreement seeks to create the suitable investment environment attracting governmental investment and sovereign funds, in addition to encouraging private sector investment in both countries
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July 2
BP ex CEO asked to join UK government. Business Week
Lord Browne, the former head of BP who was once reputed to be Tony Blair's favorite businessman, has been brought back into the heart of Government to help find the £6.2bn in public spending cuts promised in the Budget. He was one of Britain's most-admired business leaders, with a gift for getting on well with politicians. He was nicknamed the "Sun King," and was so close to the former prime minister, Tony Blair, that it was suggested that an appropriate name for the company he headed would be "Blair's Petroleum."
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Cocoa, Coffee prices decline with lack of demand. Business Week
Cocoa prices fell, capping the biggest weekly drop since mid-May, on concerns that commodity demand will slacken amid a fragile economic recovery in the U.S. Coffee also slumped. “With the economic news lately, people aren’t buying commodities,” said Jack Scoville, a vice president at Price Futures Group Inc., a broker in Chicago.
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Argentina import restrictions may delay Mercosur trade talks. Mercopress
The EU has decided to increase the tone of its complaints following on the restrictions implemented by Argentina’s Domestic Commerce Secretary, Guillermo Moreno, on food imports. Statements to that effect were first aired in Brussels and Luxembourg, but now the issue was put directly on the negotiation table in Buenos Aires where a new round of talks begun this week after six years involving trade talks with Mercosur.
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July 1
Fiji determined to improve itself. Worldpress.org
While the world remains skeptical about Commodore Bainimarama's commitment to the 2014 election, Fiji is bustling with tourists, and the performance of the interim government ministers has far exceeded expectation of the locals. Some of the achievements of the government include free school bussing for students of poor parents, free textbooks, better roads and infrastructure.
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Poland ready for Euro 2012. CNN.com
Despite the Polish national team's absence from the World Cup in South Africa, the country's sports fields are packed with children and amateur footballers getting into the mood. When Poland and Ukraine host Euro 2012, they will be the first Eastern European countries to do so. Adam Giersz, Polish Sports Minister, said: "We want to show the world that Poland is a modern country in the European Union with modern infrastructure and the capability to organize an event like Euro 2012, which is one of the biggest events of its kind in the world."
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Pak-Iran gas pipeline agreement. AP of Pakistan
Foreign Minister Makhdoom Shah Mehmood Qureshi said that Pak-Iran gas pipeline agreement will ensure massive gas supply to help meet country’s energy requirements including electricity. The agreement has been finalized despite many problems and pressures and the main purpose of the project is to generate electricity and to provide energy to the industrial sector, the F M added. Pakistan also finalized an agreement with China for installation of two nuclear power plants.
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Pirelli plans to sell broadband unit, expand tire market. Business Week
Pirelli & C. SpA, Europe’s third- largest tiremaker, will sell its broadband communications unit as part of a reorganization that includes a spinoff of real- estate assets, Chairman Marco Tronchetti Provera said. Milan-based Pirelli is spending 300 million euros ($367 million) on its tire business this year and plans to double capacity in China, Egypt and Romania to take on rivals Continental AG and Michelin & Cie. Tronchetti Provera said he’s looking to acquire tire factories in Asia, though ruled out a merger with a competitor.
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June 30
“Facebook for farmers” in rural China. CNN.com
Fu and her husband turned to Wokai, a U.S. microfinance firm whose name in Chinese means "I start." Wokai provides microloans to more than 350 impoverished farmers in China, with the funds coming from donors around the world. Nicknamed "Facebook for Farmers," a contributor to Wokai.org can choose exactly where the funds go. Farmers' profiles and photos are posted online and donors choose to whom and how much they give.
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EAC declares common market. Business Week
The five-nation East African Community will declare a common market tomorrow, leading to the creation of a free trade zone over the next few years and ultimately enabling them to forge a political federation. The common market protocol, signed on Nov. 20 by all EAC heads of state, will expand the bloc’s five-year-old customs union to enable the free movement of people, capital and services and abolish import duties. The EAC encompasses 126.6 million people with a combined gross domestic product of $73 billion and aims to adopt a shared currency by 2012.
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BMW to invest in Mexican auto parts. Business Week
Bayerische Motoren Werke AG, the world’s largest maker of luxury cars, said it plans to spend about 2 billion euros ($2.4 billion) on auto parts from Mexico beginning in 2012.BMW is purchasing more supplies outside Germany as part of a goal to lower costs by more than 4 billion euros by 2012 and reduce the effect of foreign currency swings on earnings. For Mexico, the BMW initiative would help President Felipe Calderon’s plan to increase foreign investment at a time when the country’s share of North American auto production may rise at a quicker pace as U.S. automakers seek lower labor costs.
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Comac: competitor to Airbus and Boeing. Business Week
China is fast learning the ABCs of aircraft manufacturing: A as in Airbus, B as in Boeing, and C as in the Commercial Aircraft Corp. of China, or Comac. Approved in February 2007 by the State Council, China's cabinet, Comac's mission is to produce homegrown jumbo jets and by 2020 to become the third major player in the worldwide commercial aircraft industry.
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EU: countries who flout economic rules will be fined. AP
The European Commission proposed new economic rules that would include fines and loss of EU funding for countries that keep running up deficits and debts. Olli Rehn, the European commissioner for economic and monetary affairs, said the recession and the near-bankruptcy of Greece exposed the interdependence of national economies and the vulnerability of individual governments.
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June 29
Dollar replaced as international currency. CNN.com
The use of the dollar for international trade came under increasing scrutiny when the U.S. economy fell into recession. "The dollar has proved not to be a stable store of value, which is a requisite for a stable reserve currency," the United Nations Department of Economic and Social Affairs report said. Many countries, in Asia in particular, have been building up massive dollar reserves. As a result, those countries' currencies have become undervalued, decreasing their ability to import goods from abroad.
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Google and the E-book market. New York Times
Google plans to introduce its long-awaited push into electronic books, called Google Editions. It is on the verge of completing a deal with the American Booksellers Association, the trade group for independent bookstores, to make Google Editions the primary source of e-books on the Web sites of hundreds of independent booksellers around the country, according to representatives of Google and the association. The Google deal could give them a foothold in this fast-growing market and help them keep devoted customers from migrating elsewhere.
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Google makes changes to China access. Forbes.com
Google Inc. will stop automatically routing users in China to its Hong Kong site after Beijing threatened the company with the loss of its Internet license in their latest skirmish over censorship. Under the new measure, instead of being automatically switched to Hong Kong, visitors to Google.cn see a tab that says, "We have moved to google.com.hk." Clicking on that takes users to the Chinese-language site in Hong Kong, which is Chinese territory but has Western-style civil liberties with no Internet filtering.
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China, Taiwan sign historic trade deal. CNN.com
Mainland China and Taiwan signed a historic free-trade agreement that is expected to strengthen ties and reduce the potential for cross-strait tensions. Under the Economic Co-operation Framework Agreement, or ECFA, China will cut tariffs on 539 items from Taiwan valued at $13.8 billion, or about 16% of the island's 2009 exports to the mainland.
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Corporate tax rate declines again in Europe. Business Week
European governments cut corporate taxes in 2010, continuing years of decline in taxation on capital and a shift towards taxes on consumption, and, to a lesser extent, labor. Across the board, EU states charged an average of 37.5% in income tax last year, up slightly from the 37.1% they charged in 2009, according to the annual survey of tax rates by Eurostat, the EU's statistical office.
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Merkel: Germany an economic model for the world. Business Week
Germany's chancellor said Tuesday that the basic principles of the country's social market economy should be followed around the world. The lack of regulation that led to the financial crisis with its disastrous consequences has shown the need for strong guiding principles, Angela Merkel said.
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June 28
Africa: a thriving economy. Business Week
Almost unnoticed, signs of economic life have begun to stir in that most unlikely of places, Africa. Despite its riches in natural resources and geographic proximity to Europe, Africa has been a perennial laggard on the global economic scene. Mention the phrase "emerging economies," and most people rightly think of Asia and Latin America. Few look to Africa as an economy of the future.
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G-20 agrees to cut debt, but divided on how. Wall Street Journal
The wealthiest of the Group of 20 countries said they would halve their government deficits by the year 2013 and "stabilize" their debt loads by 2016, a signal to international markets and domestic political audiences they are taking seriously the need to wean themselves from stimulus spending. The meeting's concluding statement, a compromise between two competing visions of the international economy, masked divisions between the U.S. and Europe evident in the run-up to the summit. The U.S. has warned that moving too fast to cut deficits and reduce stimulus spending could risk another global recession. European nations, especially Germany, have cautioned that moving too slowly could produce unsustainable debt loads, higher interest rates and even defaults.
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Saudi GDP expected to grow 4% in 2010. iMarketnews.com
The recovery in Saudi Arabia's economic activity is gathering pace, with renewed strength in corporate finance flows. Inflation is expected to remain manageable, and the fiscal and balance of payments' outlooks are comfortable, the Samba Financial Group said. In a separate report, the National Bank of Kuwait, its largest financial institution, warns that weaknesses in finance, property and construction sectors of the United Arab Emirates will persist, causing economic growth to be "sub-par" for the next two years.
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Kenya to record economic boom this year. The East African
Kenya is on the verge of registering a new economic boom, after major shocks caused by the post-poll violence and the global financial crisis in 2008 and 2009 respectively. Now economists say the country could lead the continent following the resurgence of its economy late last year, as a result of mild recovery in trade catalyzed by a sharp fall in oil prices.
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UK to cut number of skilled workers from outside EU. BBC News
The number of skilled workers allowed into the UK from outside the EU is to be cut by 1,300, Home Secretary Theresa May has said. Immigration had been a "key issue" during the election campaign and it was important to "deliver on promises made," she added.
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EU delays action on Carbon Tax. Business Week
European commissioners are in a holding pattern over whether to introduce a tax on carbon across the EU, a proposal that if backed by the EU executive could prove to be one of the most controversial and bitterly fought over pieces of legislation Brussels has mooted in years. Under initial proposals by taxation commissioner Algirdas Semeta, from 2013, sources of greenhouse gases that are not currently covered by the EU's flagship environmental endeavour, the Emissions Trading Scheme (ETS), sectors such as agriculture, as well as transport and households, would see a flat, minimum fee of between €4 and €30 per ton.
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June 27
Spain, Portugal battle over Brazilian joint venture. New York Times
Telefónica of Spain and Portugal Telecom are battling for control of their Brazilian wireless joint venture in a tussle that could determine which of the flagship companies realizes its global ambitions. The result will have particularly important consequences for Portugal Telecom, whose push overseas has hinged on Brazil, a booming emerging market and a former Portuguese colony.
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Guinea holds first free election since 1958. CNN.com
Voters in Guinea cast ballots Sunday in the first free election since the west African nation gained independence in 1958. With successful elections, a democracy will be born, and all Guineans together will have together taken a giant step forward," the U.S. ambassador to the country, Patricia Newton Moller said. The country has been ruled by a series of authoritarian and military dictators since it gained independence from France, its former colonial master.
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PM Gillard speaks of slow Australian population growth. Business Week
ulia Gillard, who last week replaced Kevin Rudd as Australian prime minister, may move to slow Australia’s population growth amid concerns about failing infrastructure and the nation’s environment. “Any reduction to our nation’s rate of population growth puts at risk the very things that have made Australia what it is today,” Taskforce Chief Executive Officer Aaron Gadiel said in e-mailed comments today. “As our population ages, without a strong immigration program we can expect significant labor shortages in key parts of our economy, including major capital cities.”
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Israel’s MA Industries buys buys U.S. herbicide company, Albaugh Inc. New York Times
Makhteshim Agan Industries, an agrochemical company based in Israel, will buy Albaugh Inc., a maker of herbicide based in Iowa, for about $1 billion. “This is a transformational acquisition,” Erez Vigodman, president and chief executive of MA, said in a statement. “It extends our industry leadership to North and South America, giving us the opportunity to participate in fast-growing markets and significantly improving the global balance and diversity of our revenue sources.”
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BP’s Hayward meets Putin Deputy in Moscow. Business Week
BP Plc Chief Executive Officer Tony Hayward will meet with Russian Deputy Prime Minister Igor Sechin to discuss the British company’s operations in the country as it struggles to contain the largest oil spill in U.S. history. “BP has a fabulous portfolio here,” Renaissance Capital Chief Executive Officer Stephen Jennings said. “They have paid their dues and built up credibility and experience,” Jennings said. The commitment to Russia “will hold them in good stead at a time when they have challenges in the U.S.”
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Hong Kong reforms election process. The China Post
Yesterday marked a historic day in Hong Kong politics and one that will have substantial impact on China's difficult relationship with democracy. Lawmakers of Hong Kong's Legislative Council Thursday and yesterday passed two parts of the government's controversial plan to reform the 2012 elections of the chief executive and lawmakers. It provides two possible ways of choosing the chief: by election, or through consultations held locally and appointed by the Beijing government. Currently the chief executives are selected by the latter.
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June 26
Burundi’s high stakes election. Time.com
When Burundi goes to the polls on June 28, it will be the first of four countries in the East African Community (EAC) to hold presidential elections over the next eight months. Neighboring leaders and international observers were hoping the war-torn country would set a positive precedent for the others in the EAC, an intergovernmental organization intended to create political and economic link between countries that include Rwanda, Uganda, Kenya, and Tanzania, and complete its transition to democracy in the process.
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EU agrees on illegal timber prohibition. TTJ
Informal negotiations between the European Parliament and European Council have secured the prohibition of illegal timber in the European market within draft regulations, a European Parliament spokesperson has confirmed. Until now the Council had not supported prohibition – the criminalising of illegal timber imports into the EU. “This is fantastic news and represents a first in that the government, NGO community and trade in the UK have all lobbied for the same position for the inclusion of a prohibition,” said Rachel Butler, Timber Trade Federation head of sustainability
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June 25
Russia, U.S. pledge stronger economic ties. CNN.com
President Barack Obama and visiting Russian President Dmitry Medvedev pledged cooperation on stronger economic ties Thursday, announcing a deal for Russia to again accept U.S. poultry exports and touting U.S. support for Russia's bid to join the World Trade Organization. Faced with the continuing struggle to recover from the global economic recession, nuclear ambitions of Iran and North Korea, terrorism threats and other major issues, Obama and Medvedev said the world needed a strong U.S.-Russian relationship in the 21st century.
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Argentina’s economy expands rapidly. Reuters.com
Latin America's No. 3 economy has rebounded from a sharp slowdown last year, driven by increased consumer spending and demand for Argentine-made cars in neighboring Brazil. "Argentina's economic activity has returned to levels before the outbreak of the economic crisis," the consultancy group Economia y Regiones said in a report.
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China lets currency hit a high against Dollar. New York Times
As global leaders assembled for a meeting in Canada over the weekend, China allowed its currency to close Friday at the strongest level against the dollar since currency policies were overhauled in 2005. Small as that may seem, the rate changes have been highly significant. Beijing has faced mounting pressure from abroad to let the renminbi strengthen against the dollar, and its decision to begin at least a small rise could take some of the sting out of the contentious currency issue as leaders of the Group of 20 meet in Toronto.
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The future: Natural Gas. Forbes.com
Natural gas is probably the more important to the future economy of United States and maybe the world. There is plenty of it in the U.S., it's cleaner than the two biggest energy sources, coal (for electricity) and oil (for transportation), and it has the potential to at least partially displace both of them. Its importance is parsed in great detail in a report released today by MIT called "The Future of Natural Gas." The report's findings won't be a surprise to the likes of ExxonMobil, which agreed to buy the natural gas company XTO Energy, becoming the world's largest natural gas player.
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Banks likely to offset impact of new laws. New York Times
Banks are expected to find ways to offset the impact of the new financial regulations on their earnings, though they face a potentially complex process of adapting to the new requirements. “The terms of this regulation appear to be extremely onerous on the large banks,” said William Fitzpatrick, an equities analyst. “It is indeed a tough bill and you are going to see several measures that are going to weigh on the profitability of the large banks.”
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June 24
Bluefin Tuna: another possible BP casualty. Business Week
Bluefin is a mainstay of any sushi restaurant in Tokyo, and the giant fish, sometimes weighing more than 500 pounds, is the king of Tsukiji. BP's spill is billowing near one of two spawning grounds for the Atlantic variety of bluefin (the other is in the Mediterranean). For now, fishmongers in Tsukiji say they're not worried about the effect the BP disaster will have on the bluefin population.
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Toyota replaces Europe and North America managers. Business Week
Toyota Motor Corp. is moving aside Japanese managers in Europe and North America in favor of local managers. “The aim is to put in place management structures capable of more rapidly and accurately grasping local conditions and identifying local needs,” a statement released Thursday said. “Taking both a medium- and long-term view, (Toyota) has long fostered local personnel in overseas markets.”
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EFTA signs in Ukraine as member. Kyiv Post
Ukraine's Foreign Minister Kostiantyn Hryschenko has signed an agreement on free trade with the European Free Trade Association (EFTA), which unites Iceland, Liechtenstein, Norway and Switzerland. "We believe that this agreement is one of the greatest achievements of Ukraine's membership in the WTO. The signing of this document is particularly important, given the Euro-Atlantic aspirations of our country. I am convinced that the efficient implementation of the agreement will promote Ukraine's integration into the European economic and political space," Hryschenko said.
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Somaliland prepares for second presidential election. VOAnews.com
Over one million eligible voters go to the polls on Saturday in the break-away enclave of Somalia, Somaliland. It’s the second presidential election since the area unilaterally declared its independence nearly 20 years ago. All of the parties are committed to boosting trade and private enterprise, though Walls says the government is limited in what it can do.
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Vancouver’s real estate market bubble. Business Week
The Olympics are over, and the Village is for sale. The complex in Vancouver, British Columbia, that housed the athletes during the 2010 Winter Olympics has been converted into 1,100 luxury condos. "Real estate is like a sport here," says Tracie McTavish, president of Rennie Marketing Systems, which is overseeing the sale of Millenium Water. In the last 12 months alone, the average home price has risen 14%, to around C$1 million.
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June 23
Clash of the World Cup corporate logos. Business Week
The 2010 World Cup is as much a clash of logos, as it is the world’s best soccer players. Adidas and Nike are in a battle for consumer attention, and money. Nike’s approach has always been to use celebrity to sell. It has a corporate history of sponsoring the biggest names in sports, however the World Cup is different. Rival Adidas is already the official sponsor, so how will Nike capitalize?
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New Zealand economic growth fastest in 2 years. Business Week
New Zealand's economy has chalked up four successive quarters of growth, taking the annual rate to 1.9%, it's fastest in two years, official figures show. Gross domestic product grew by 0.6% through March, with primary sector industries growing 1.7% and manufacturing activity up 1.6% in the latest quarter.
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Export duty halts signing of agreement with EU. Kuwait Times
Export duty is one pending issue that needs to be resolved before an EU-GCC free trade agreement is signed, disclosed Tomas Dupla del Moral, Middle East and south Mediterranean External Commissioner with the European Commission. According to Dupla del Moral, the comprehensive Free Trade Agreement will benefit both the Gulf region and the EU as it aims to create a preferential relationship between the EU and the GCC in line with WTO principles and disciplines.
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June 22
California global warming law placed on ballot. AP
An initiative that seeks to suspend California's landmark global warming law until unemployment drops qualified Tuesday for the November election ballot. Oil companies funded the drive to put the initiative on the ballot. It is backed by some business groups who say the law could cost jobs and lead to higher energy prices, though other businesses oppose the initiative.
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Afghan parliamentary list announced. News.xinhuanet.com
Fazal Ahmad Manawi, the Chief of Afghan Independent Election Commission (IEC), announced the finalized list of Afghanistan's second parliamentary election since the fall of Taliban regime in late 2001. "Based on the law electoral timeline for upcoming legislative election, today I officially announce the finalized list of Wolesi Jirga or Lower House of parliament contesters which include 2,577 candidates with 405 of them women," Manawi said.
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June 21
Peru, U.S. trade could grow 250% by 2015. Peruvian Times
Bilateral trade between Peru and the United States could grow by 250% by 2015 thanks to a free trade agreement between the countries, according to the U.S. Undersecretary of Commerce for International Trade, Francisco Sánchez. “It is still early to measure the achievements from the trade agreement but with all of the FTA’s the United States has signed, the commercial exchange has grown considerably between both countries,” reported Sánchez as saying.
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Russia cuts gas deliveries to Belarus. New York Times
Russia cut deliveries of natural gas deliveries to Belarus over $200 million in unpaid debts on Monday, warning that supplies would be reduced by as much as 85% over the coming days, but taking pains to assure Europe that its customers would not be affected. “We will pay, not today perhaps, but possibly within two weeks,” said the first deputy prime minister, Vladimir Semashko, at a news conference in the capital, Minsk. “We will find a way. Maybe we will have to borrow, but we will pay.”
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India sees double digit growth by 2013. AFP
The Indian economy, Asia's largest after Japan and China, is accelerating and could reach double-digit growth by 2013, Indian Trade Minister Anand Sharma said during a visit to Spain. "We need to do that because we are a country of paradoxes. We have the largest middle class perhaps in the world, equal to the population of all of Europe put together, and at the same time we are also home to a large number of poor people."
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Israel eases restrictions for supplies on Gaza Strip. Business Week
Israel agreed to ease its three- year-old blockade of the Gaza Strip and allow all food items and a wider range of building supplies into the Hamas-ruled territory while banning materials that have military use. The decision to ease restrictions follows international criticism of the blockade after Israel’s May 31 commando raid on a flotilla of ships trying to breach the embargo in which nine pro-Palestinian activists from Turkey were shot dead.
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June 19
Poland prepares for presidential election. The Straits Times
Poland prepared Saturday for a snap election forced by the air-crash death of president Lech Kaczynski, with his identical twin bidding to replace him but trailing the ruling liberals' candidate. Ex-prime minister Jaroslaw Kaczynski, eurosceptic leader of the twins' Law and Justice party, is scrambling to maintain a conservative presidency and keep the brakes on the policies of the governing, pro-EU Civic Platform party.
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Russia, France vow to promote role of G20. Business Week
French President Nicolas Sarkozy says he will work with Russia to give developing nations a larger role in the debate over how to regulate the global economy. Russian President Dmitry Medvedev says he agrees with Sarkozy and that the G20, a grouping of 20 prominent wealthy and developing nations, is the most promising and effective institution created in the 21st century.
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China allows its currency to float. CNN.com
President Barack Obama welcomed Saturday's news that China's central bank will allow its national currency to float ahead of the G-20 summit in Toronto, Canada, next week. "China's decision to increase the flexibility ... is a constructive step that can help safeguard the recovery and contribute to a more balanced global economy," the president said in the statement.
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June 18
Danone merges Russian Dairy Business with Unimilk. Business Week
Groupe Danone SA, the world’s largest yogurt maker, will combine its Russian dairy-product unit with OAO Unimilk to become the biggest dairy company in that market. Russia will become Danone’s second-biggest market after the deal, Chief Financial Officer Pierre-Andre Terisse said on a conference call. Food companies are expanding in Russia to tap demand as an economic rebound leads consumers to switch to higher-end branded products. Nestle SA, the world’s largest food company, said this week it will build a factory in Russia for Maggi-brand items.
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Russia to scrap profit tax for foreign investors. Forbes.com
Russia will scrap the capital gains tax on long-term foreign investment next year in order to create a much-needed "investment boom," President Dmitry Medvedev told a gathering of foreign businesses. Medvedev also vowed to loosen the state's stranglehold on the economy by introducing more competition and - in a sharp reversal to the policies of his predecessor Prime Minister Vladimir Putin - reducing the number of state-controlled enterprises fivefold.
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South Africa’s booming art market. CNN.com
In recent years, African artists have seen their work increase in value as they attract global investors. Prices for major South African art are estimated to have increased by over 500 percent in the past five to 10 years, according to the auction house.
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Russia to help spur economic news. Business Week
Russia will help lead efforts to recast the global economic hierarchy as the world emerges from the financial crisis, President Dmitry Medvedev said. Russia will use tax incentives and other free-market economic policies to turn the country into a destination for innovators from around the world. Medvedev is promoting modernization to transform Russia from an oil-and-gas economy into a magnet for high technology.
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IMF says Spain taking right steps toward stability. BBCnews.com
Dominique Strauss-Kahn said he was "confident" Spain's economy would recover and called on all Spaniards to back the government's austerity work. "I am really confident in the medium and long-term prospects for the Spanish economy, providing the efforts that have to be made will be made," he added.
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Panama relaxes environmental, labor laws. Reuters.com
Some major Panamanian construction projects could begin without knowledge on how they might harm the environment and employers would gain an advantage in the event of a strike under legislation enacted this week. President Ricardo Martinelli's political allies in Congress passed the reforms in a move that could spur public works and please employers but increase opposition to the government's infrastructure plans.
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Codelco may sell debt to finance investment. Business Week
Codelco, the world’s biggest copper producer, said it will probably tap bond markets this year to finance investments after Chile’s government opted not to reinvest the state-owned company’s profit. The company, which supplies about 10% of the world’s mined copper, needs to fund a $15 billion investment program over the next five years. The Chilean government is seeking to raise $8.4 billion to help pay for the reconstruction of infrastructure damaged in February’s 8.8-magnitude earthquake.
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Iceland to join EU. Business Week
European leaders have finally given the green light for Iceland to begin EU accession negotiations, but the Dutch Prime Minister has indicated it will be hard for the country to join if it does not pay for losses incurred in the Icelandic banking collapse. The European Council "notes that Iceland meets the political criteria set by the Copenhagen European Council in 1993 and decides that accession negotiations should be opened," says the text.
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June 17
Estonia joined the EU. New York Times
Estonia joined the Euro zone regardless of the debt crisis that appears to be spreading from Greece to Spain. “Joining the euro is a status issue for countries seeking to cement their position at Europe’s top table,” said Simon Tilford, the chief economist for the Center for European Reform, a research organization based in London. “But you also could call it sheer bloody-mindedness of Estonia to join now with the outlook for the currency so uncertain.”
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Vietnam ready for investors. Business Week
Explosive wage growth and labor strife in China and India, favored destinations for foreign investment in Asia, have multinationals taking a serious look at Vietnam as a low-cost alternative for new factories and call centers. Vietnam's $96 billion economy is far less centrally controlled than last decade, and the country, which boasts one of the youngest workforces in the world, managed to gain membership in the World Trade Organization in 2007.
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Brazil suspends retaliation in U.S. cotton. Reuters.com
Brazil on Thursday suspended retaliatory measures against U.S. goods over a cotton subsidy dispute, freezing until 2012 a long-running row that has demonstrated the South American nation's trade clout. The government said a deal agreed between the two countries in April to head off up to $829 million in World Trade Organization-sanctioned retaliation against U.S. goods would stay in place until a new U.S. farm bill is passed. Under the deal, the United States pledged to make some short-term tweaks to its export credit guarantees and give Brazil about $147 million a year in damages for a "technical assistance" fund for cotton growers.
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AOL sells social media website, Bebo. New York Times
AOL sold Bebo, the struggling social networking site, to Criterion Capital Partners, a private equity fund based in Los Angeles, for a fraction of what AOL paid for the site two years ago. AOL once had high hopes that Bebo would help it to regain momentum, especially with younger audiences and advertisers, and to catch other fast-growing Internet franchises. At the time, it was popular in Britain.
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U.S. pushes for transparency in China trade practices. Detnews.com
Sen. Debbie Stabenow, D-Lansing, is expected to announce her China Fair Trade Act this afternoon. The legislation would halt U.S. government spending on Chinese goods and services until the Asian nation meets certain criteria laid out in the act. A document outlining the bill's objectives obtained by The Detroit News shows the legislation seeks to curb China's access to the $1.7 trillion spent each year on procurement by the U.S. government. Specifically, the bill would ban taxpayer dollars from being spent on Chinese goods and services until China signs on to the World Trade Organization's Agreement on Government Procurement.
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New Arbitration laws for Australia. Newlawyer
Attorney-General, Robert McClelland, has welcomed the passage of Amendments to the International Arbitration Act, which he said will help make Australia “a significant player in the booming international commercial dispute resolution market”. By creating a more uniform framework for regulating commercial arbitration, the reforms to the International Arbitration Act and the domestic Commercial Arbitration Acts will be an important driver in establishing Australia as key centre for international arbitration, the A-G said.
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ProMexico hires lawyer to get advice on business between China, Mexico. EarthTimes
ProMexico, the government institution responsible for strengthening Mexico's participation in the global economy, recently entered into an exclusive agreement with Diaz, Reus & Targ, LLP to serve as legal advisors to the Mexican delegation during the World Expo in Shanghai, China. The firm will offer advice to Mexican investors looking to do business in China, and vice versa.
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Poland preparing for early election this year. Voanews.com
Poland is preparing to elect a new president, with a center-right and far-right candidates in the lead. The election is being held earlier than originally scheduled, following the death of Polish President Lech Kaczynski in a plane crash. To win the election, one of the candidates must secure at least 50% of the vote.
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June 16
BP to pay $20 billion to the U.S. for damages. Business Week
BP Plc tentatively agreed to put about $20 billion over time into a fund to pay damages resulting from the Gulf of Mexico oil spill, with claims administered by the lawyer who oversaw executive compensation under the government’s financial bailout. In a nationally televised address last night, President Obama vowed he would make BP set aside however much is needed to “compensate the workers and business owners who have been harmed as a result of his company’s recklessness.”
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Nokia, competition, and its profit. New York Times
The cellphone maker Nokia warned that its earnings this year would be hit by tough competition from rivals in the smartphone market. While it is still a global leader in smartphones, it is struggling to compete in the expensive segment with rivals like Apple, maker of the iPhone, and Research in Motion, which makes BlackBerry handsets.
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Australia’s proposals on taxpayer elections. Tax-news.com
With a view to simplifying the income tax law and cutting red tape, Australia’s Assistant Treasurer, Nick Sherry, has released a wide-ranging consultation paper in relation to individuals and businesses making 'elections' in their tax affairs. In the 2009-10 budget, the government announced its intention to simplify the law by reviewing the design of election provisions with a view to increasing consistency and reducing uncertainty in relation to these provisions for both individuals and the business community.
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Biofuels add $2 billion to Canadian economy annually. Biodiesel Magazine
The Canadian Renewable Fuels Association released in May the first-ever comprehensive third-party economic impact assessment of renewable fuels investments in Canada. The assessment conducted by econometric firm Doyletech Corp. concluded that, “The grand total of the annual positive economic impact of renewable fuels is $2.013 billion.” The economic impact of the construction phase of renewable fuels plant was assessed to include the creation of 14,177 direct and indirect jobs, while the economic impact of operating the 28 Canadian renewable fuels plants was assessed to include the creation of a net 1,038 direct and indirect jobs annually.
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Bahrain, U.S. agreement to boost bilateral ties. Zawya
Bahrain has signed deals in Atlanta, Oklahoma City and Houston that will boost already strong commercial and economic ties between the Kingdom and United States. Shaikh Mohammed said: "These strategic agreements represent an opportunity to build on Bahrain's longstanding and close diplomatic relationship with the US and our strong economic and trade connections, including the success of our Free Trade Agreement.
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Asia imposes curbs to slow expanding property bubbles. Business Week
From Shanghai to Singapore, policy makers are struggling in their efforts to curb property bubbles that threaten to derail the world’s fastest-growing region. “Governments allow the property bubble to get so big and then try to use administrative measures to keep out speculators,” said Andy Xie, former Morgan Stanley chief economist for Asia-Pacific and now a private economist based in Shanghai. “It creates the risk of a very hard landing. The right thing to do is raise interest rates.”
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Spain and France take action to decrease budget. New York Times
Under pressure from anxious lenders, the French government took steps to help reassure markets about its creditworthiness, announcing that it would raise the retirement age and increase income taxes on the rich to help rein in its budget deficit. The Spanish government, also facing concerned investors, proposed loosening labor rules on Wednesday in a bid to restart its stalled economy.
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Indonesia to manage capital, curb rupiah swings. Business Week
Indonesia’s central bank will reorganize its bill sales to encourage investors to keep their money in Southeast Asia’s largest economy for longer, joining regional policy makers in seeking to reduce currency volatility. The rupiah has risen 12% against the dollar in the past year, the biggest gainer in Asia, as investors poured money into an economy where the benchmark interest rate is 6.5%, compared with Japan’s 0.1%.
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June 15
China property bubble to burst quickly. Business Week
The “bubble” in China’s property market is going to burst very quickly, with prices set to fall as much as 20% in the next 12 to 18 months, according to Nomura Holdings Inc. “If you look at housing prices to disposable income in Beijing and Shanghai, they are 13, 14 times,” said Sun, whose team was ranked third in Institutional Investor’s 2010 Asian poll for China research. “There’s no way you can say there’s no bubble.”
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Marfrig buys Keystone to expand and diversify. Business Week
Marfrig Alimentos SA, Latin America’s second-largest beef producer, agreed to buy meat processor Keystone Foods LLC for $1.26 billion to become a supplier to restaurant chains such as McDonald’s Corp. “The acquisition is part of a broader protein and geographical diversification project being implemented by Marfrig,” Fabio Monteiro and Thiago Duarte, two Banco BTG Pactual SA based in Sao Paulo said.
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Taiwan expects ECFA to restructure cross strait economy. CRIEnglish.com
Taiwan experts and local officials expect a cross-Strait economic pact likely to be reached soon to redistribute resources and restructure the economy across the Taiwan Strait. The Economic Cooperation Framework Agreement, or ECFA, will send the signal that economic relations across the Strait will steadily develop. The ECFA is intended to normalize mainland-Taiwan economic ties and bring the two economies closer.
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Chile may increase rates to improve economy. Business Week
Chile’s central bank will probably raise its benchmark interest rate from a record low as the economy’s fastest expansion in more than a decade pushes inflation back up toward policy makers’ target. “Monetary policy is extremely expansive at 0.5 percent and we need to correct that,” Manuel Agosin, dean of the economics and business department at the University of Chile in Santiago, said. “The probability of there being an increase in the rate is almost 100 percent.”
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Brazil economy to expand 7.7% in 2010. Business Week
RBC Capital Markets increased Brazil’s economic growth outlook for 2010 to 7.7% from 6% after a “solid start” this year. Brazil’s statistic agency said that Latin America’s largest economy grew 9% in the first quarter from a year earlier, the fastest annual rate since 1995.
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Polish presidential election after death in April. BBC News
Polish citizens will cast their ballots this Sunday in a particularly emotional presidential election. The election was called after the death of president Lech Kaczynski in a plane crash in Russia on 10 April. Among the candidates to replace him is his twin brother Jaroslaw Kaczynski, from the Law and Justice party.
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Nestle take IP legal action against Sara Lee. Business Week
Nestle SA, the world’s biggest foodmaker, began legal action against Sara Lee Corp. in France for alleged patent violations on its Nespresso coffee- making system. Sara Lee started selling L’OR Espresso capsules that are compatible with Nespresso single-serving coffee machines in French stores in April. Nestle “will always take appropriate steps to defend our intellectual property rights when these have been infringed,” the Vevey, Switzerland-based company said.
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Canada, Panama Free Trade Agreement. Blakes.com
Canada and Panama signed the Canada-Panama Free Trade Agreement (CPFTA), which is intended to significantly increase access for Canadian businesses to bids on Panamanian government procurement relating to infrastructure. In particular, the CPFTA is intended to provide increased market access to a number of contracts awarded by Panama’s central government, such as access to contracts of goods, services and construction services, including contracts awarded by the Panama Canal Authority (ACP) relating to the US$5.4-billion Panama Canal expansion project that is currently underway.
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News Corp bids for BSkyB, plans to charge for news content. New York Times
News Corp., which Mr. Murdoch heads as chief executive, offered £7.8 billion, or $11.5 billion, to buy the 61% of BSkyB that it did not already own. The offer was rejected, but BSkyB said it would be willing to accept a slightly higher bid, and analysts said they expected the two companies to reach an agreement. Rupert Murdoch underlined his commitment to the idea that consumers should pay for news and entertainment, as his media empire moved to take full control of the pay-television company British Sky Broadcasting.
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June 14
To increase business, Starbucks offers free Wi-Fi. New York Times
The company said on Monday that as of July 1, its stores in the United States would offer free Wi-Fi, via AT&T, that anyone can reach with a single click. Starbucks has been squeezed lately by competition from both independent specialty coffee shops, which have long offered free Wi-Fi, and big chains like McDonald’s, which added it this year.
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ACTA restricts developing countries, India tells WTO. Out-Law.com
The Anti-Counterfeiting Trade Agreement (ACTA) is a secret IP treaty being negotiated by the US, Japan, the European Commission and others outside of the normal international trade bodies the World Trade Organization (WTO) and the World Intellectual Property Organization (WIPO). A secret trade agreement designed to harmonize some countries' intellectual property laws could destabilize existing international agreements and harm the economic prospects of developing countries, India has said. In a document submitted to the WTO last week, though, India argued that in going further than TRIPS, ACTA undermined not only the WTO and its agreements, but the very basis of some elements in developing nations' economies.
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Iran to begin work on enrichment plant in 2011. Global Security Newswire
Iran plans to start work by next March on a second uranium enrichment facility. The Middle Eastern state has maintained that its nuclear program is strictly peaceful, but the United States and other Western powers have expressed concern that Tehran could tap its enrichment capability to produce highly enriched uranium for nuclear weapons. The nation's leaders have endorsed plans for 10 enrichment facilities in addition to its existing site at Natanz.
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Spirit strike continues to cancel flights. NPR
The discount carrier said on its website Sunday that all Spirit Airlines flights have been cancelled through June 15. Spirit pilots walked off the job Saturday amid an ongoing contract dispute with the airline that has lasted for more than three years. Spirit pilots have said their pay lags behind competitors such as AirTran Airways and JetBlue.
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June 13
U.S. identifies history changing mineral deposits in Afghanistan. New York Times
United States has discovered nearly $1 trillion in untapped mineral deposits in Afghanistan, far beyond any previously known reserves and enough to fundamentally alter the Afghan economy and perhaps the Afghan war itself. The previously unknown deposits, including huge veins of iron, copper, cobalt, gold and critical industrial metals like lithium, are so big and include so many minerals that are essential to modern industry that Afghanistan could eventually be transformed into one of the most important mining centers in the world, the United States officials believe.
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BP offers to appease Americans for oil spill. The London Times
BP is considering putting several billion dollars into a ring-fenced clean-up fund to appease American concerns over the soaring cost of the Gulf of Mexico oil spill. BP’s directors are discussing a reduction in dividend payments as part of a peace offering to Obama, who has made stinging attacks on the group and its management. Company sources said directors were not likely to axe the payout completely and were trying to find a middle way. “They know it can’t be business as usual.”
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Trans Pacific Partnership talks reinitiated. SFGate
The importance of Asian trade will be brought home to San Francisco in the coming week as the Obama administration reopens talks here with seven nations - Australia, Brunei, Chile, New Zealand, Peru, Singapore and Vietnam - to continue negotiations on what Bush officials had called the Trans Pacific Partnership. Deputy U.S. Trade Representative Demetrios Marantis noted that the Asia-Pacific region was "home to over 40 percent of the world's population ... accounts for more than half of global economic output and almost half of world trade."
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With hiring occurring, China’s Honda strike ends. New York Times
A strike at a Honda auto parts factory here in southeastern China collapsed on Monday morning, as Honda’s hiring of hundreds of replacement workers on Sunday prompted most of the strikers to return to work. Replacement workers and returning employees here are receiving 11% higher pay and a 33% rise in allowance for food and housing. The combined increase in wages and benefits was less than the near doubling of wages alone that the strikers had sought.
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Right-center opposition ahead in Slovakia Parliament elections. Taiwan News
The center-right opposition came out ahead in parliamentary elections in Slovakia, dealing a blow to a ruling party that had promised to maintain the country's welfare state as other European countries hack their budgets. The country's debt, at 41% of gross domestic product, is still well below the EU's prescribed 60% and analysts have warned that a new government may not be able to meet the 2010 budget deficit target of 5.5% of GDP.
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China, Taiwan hold trade talks, improve historic relations. Business Week
China and Taiwan held a third round of talks to strengthen economic and trade ties, reaching a basic agreement on goods, services and industries chosen for initial tariff cuts. “Signing the ECFA is a route that Taiwan must take and it is a milestone,” Liu Bih-rong, a professor of political science at Soochow University in Taipei, said by phone. “It signifies how the relationship between the two sides has recovered and more importantly, it will pave the way for more free-trade agreements and benefits.”
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Socialist, Flemish lead in Belgium elections. Business Week
The Socialist Party was leading in the French-speaking Belgian region of Wallonia in today’s national elections while a party that foresees the end of the country was leading in the Dutch-speaking northern region of Flanders, exit polls and projections said. The results may make Wallonian Socialist leader Elio Di Rupo the candidate for the post of prime minister after what are expected to be weeks or months of negotiations.
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South Korea tightens currency derivative rules, cuts risk. Business Week
South Korea aims to prevent a financial crisis by tightening rules on currency derivatives to reduce volatility in capital flows and trading of the won. South Korea joins developing nations including Taiwan, Brazil, Colombia and Russia that are tightening rules on capital flows to limit swings in their currencies. The new rules are to reduce systemic risks, which should serve as a safety net to avert a crisis, the government and central bank said.
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June 12
Nigeria, USA sign renewable energy agreement. ThisDay Online
Nigeria and the United States signed an agreement on renewable energy as parts of US commitment to assist Nigeria in tackling the problem of power supply. As part of the agreement signed at the Department of State, Washington DC at the end of high-level talks on Energy and Investment between the two countries, US Trade and Development Agency is providing a grant to the Nigerian Electricity Regulatory Commission to fund technical assistance on a proposed Renewable Energy Independent Power Producer Framework.
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China, Kazakhstan agree to deepen partnership, cooperation. news.xinhuanet.com
China and Kazakhstan pledged concerted efforts to further deepen strategic partnership, expand comprehensive cooperation and strengthen coordination on regional and international affairs. Establishing a strategic China-Kazakhstan partnership based on equality and mutual trust was a long-sighted decision of historic significance, which would remarkably contribute to deepening comprehensive cooperation, enhancing friendship between the two peoples and safeguarding regional security, the two leaders said.
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Belgium votes for leader to heal regional rift, improve economy. Business Week
Belgians vote in national elections today, seeking a compromise leader to heal a regional rift and chip away at a government debt threatening economic recovery. Pulling together a coalition may take months as Belgium, home to the European Union headquarters, has no national parties and is divided along linguistic lines.
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Yahoo looking to buy FourSquare. Telegraph.co.uk
Yahoo!, one of the undisputed kings of acquisitions, including the photo-sharing site Flickr, is exploring partnerships, rather than shelling out the staggering $360m The Huffington Post could sell for, based on its current $125m valuation. Carol Bartz, Yahoo!'s chief executive and a Silicon Valley veteran, still has the old-school mindset that a company can sometimes buy its way back to relevancy (as she told me in an interview last month) and is believed to be looking at buying FourSquare, the location-based social network, for around £53m.
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Kiviniemi: Finland’s 2nd female PM voted in. Business Week
Kiviniemi, who will become Finland’s second female prime minister, garnered 57% of the vote by Center Party representatives at the annual meeting in Lahti, Finland today. “The focus must be on the economy,” PM Vanhanen said in an interview in Lahti today before his successor was elected. “The new leader must seek sources of new growth and ways to improve productivity.”
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June 11
Reliance Industries to buy Infotel Broadband Services. New York Times
Mukesh Ambani’s company, Reliance Industries, said that it would pay 48 billion rupees ($1.02 billion) to buy Infotel Broadband Services, a privately held Indian broadband and wireless company. The move was an abrupt shift for Reliance, which has petroleum-related and retail businesses, and represented a significant investment in the intensely competitive world of Indian telecommunications.
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Controversy caused by revenue oil bill. New York Times
Brazil’s Senate has approved a bill that would divide billions of dollars in oil royalties equally among the country’s states, threatening the country’s largest oil producing state, Rio de Janeiro, with the loss of up to $4 billion in revenue. A version of the bill, which passed Brazil’s lower house in March, would have divided the revenues designated for producer states equally among all states. The revised Senate bill requires Brazil’s central government to make up the shortfall to producer states, but officials in those states said they feared a host of bureaucratic headaches.
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Japan’s new PM warns debt could bring Greek like crisis. New York Times
Japan’s newly installed prime minister startled the nation by warning that it could face a financial crisis of Greek proportions if it does not tackle its colossal debt. “It is difficult to sustain a policy that relies too heavily on issuing debt,” Mr. Kan told the Japanese Parliament in his first policy speech. “As we have seen with the financial confusion in the European Community stemming from Greece, our finances could collapse if trust in national bonds is lost and growing national debt is left alone.”
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China inflation increases to a 19 month high. New York Times
New data from China cemented the view that the country’s giant economy powered ahead in May though a marked rise in inflation also raised the pressure on Beijing to slow the booming pace of growth. Consumer prices rose at their fastest rate in 19 months, at a pace of 3.1% from a year earlier. Also inflation could accelerate if more Chinese workers are successful in their efforts to get higher wages.
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FTC reviews Apple’s business practices. CNNMoney.com
The Federal Trade Commission is preparing to review allegations that Apple has shut other companies out of the important new computing platform. The report cited ongoing tensions between Apple and software maker Adobe Systems, which stem from Apple's decision to ban Adobe's Flash video technology from its mobile devices. Apple has also been criticized recently by Google rules that could block the search engine from selling ads on popular devices such as the iPhone and iPad.
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Santander expects similar profit in 2010. Business Week
Banco Santander SA Chairman Emilio Botin told shareholders he expects 2010 profit to be “similar” to last year in a rejoinder to investors that ditched Spanish bank stocks on concern the country may fail to fix its finances. “During this period of crisis, Banco Santander has been the international financial group with the best quality and consistency of profits,” said Botin. “I am very optimistic about the outlook for the group.”
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EU and USA sign bank data transfer deal. Business Week
The European Commission is close to finalizing a new bank data transfer deal with the US for anti-terrorism purposes, taking on board account "most" of the European Parliament's privacy concerns raised when it struck down the initial agreement. The deal would allow data on EU bank transfers to be sent to US investigators looking for leads on terrorism financing.
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June 10
Australia pulls out of 2018 World Cup bid. CNN.com
Australia has pulled out of the race to stage the World Cup in 2018 and will instead focus their attention on securing the 2022 tournament, FIFA have confirmed. The game's governing body said Football Federation Australia (FFA) had taken the decision after they realized there was "growing movement" to hold the 2018 competition in Europe.
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Chinese exports climb but may be short term only. The London Times
Chinese exports soared by almost 50% last month, as consumers in Europe, the United States and the world’s largest emerging economies rediscovered their appetite for cheap clothes and steel. The surge comes amid fractious disputes between Chinese workers and factory owners in what some observers believe could be a reshaping of the country’s role as “workshop of the world”.
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New Zealand dollar gained, Australian employment rose. Business Week
New Zealand’s dollar rose the most in two weeks after the central bank increased interest rates from a record low. Australia’s currency gained on better-than- forecast employment data. The kiwi climbed for the first time in four days against the Australian dollar on speculation Reserve Bank of New Zealand Governor Alan Bollard will boost borrowing costs at a faster pace than Australian policy makers. The South Pacific currencies also advanced as reports showed China’s trade surged, boosting demand for higher-yielding assets.
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June 9
Dutch PM resigns after poll project loss. CNN.com
Dutch Prime Minister Jan Peter Balkenende resigned Wednesday as leader of the Christian Democratic Alliance after exit polls from the country's national elections projected that his party would lose 20 of its 41 parliamentary seats. Opinion polls earlier had predicted the Liberal Party, led by Mark Rutte, would come out on top. Rutte had promised to lower taxes and dramatically slash government spending to bring the country's budget quickly back to surplus.
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Tesco’s new face of international focus. The London Times
Tesco, Britain’s biggest retailer, which yesterday announced the departure of Sir Terry Leahy as chief executive, will completely revamp its executive structure to give more prominence to its international businesses. The supermarket group created several divisional chief executive roles as analysts said that Tesco would have a fight on its hands to retain executives who had been passed over.
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Euro crisis could affect Asia, IMF warns. The London Times
Asian stock markets fell today and the euro and sterling hovered near the lows they reached yesterday as concerns persisted over Europe’s debt worries. Naoyuki Shinohara, the IMF deputy managing director, warned that although Asia’s bright growth prospects were currently attracting capital, “further increases in global risk aversion could see capital flows change direction quickly.”
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British government honors a £20 million grant to Nissan. The London Times
The Treasury is to honor a £20 million grant to Nissan paid out by Lord Mandelson this year to persuade the carmaker to make the world’s first mass-produced electric car in Britain. Nissan has been awarded the grant as part of a deal that will see its Leaf hatchback car manufactured at Nissan’s plant in Sunderland. The Leaf is expected to go on sale in Britain at the end of this year.
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Santander buys Bank of America’s Mexican arm. The New York Times
Banco Santander, the largest Spanish lender, said Wednesday that it would buy Bank of America’s 24.9% stake in Santander’s Mexican arm for $2.5 billion, giving it almost total ownership of the unit. Business abroad has been one of the strengths of Santander’s balance sheet, and the bank said that the acquisition would boost Mexico’s part of group profit by two percentage points, to 7%. “This acquisition reinforces Santander’s commitment to Mexico, a country with a very positive outlook for growth, and furthers the geographic diversification of our group,” Emilio Botín, Santander’s chairman said.
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Peru to be fuel exporter for Repsol YPF SA. Business Week
Peru, a net fuel importer for the past four decades, is set to become an exporter as Repsol YPF SA and Petroleo Brasileiro SA lead $9 billion of investments in oil and natural gas projects. “This project makes Peru an important player in the regional energy industry,” Ferreyros, who’s also the general manager of Lima-based Maple Energy Plc., said in a June 7 telephone interview. “Peru is seeing increased investment in oil and gas fields, pipelines and refineries.”
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East Africa, EU trade agreements stalled. Business Daily
East Africa’s long running negotiations with Europe over the signing of a new trading agreement appeared headed for the rocks after the parties returned to Dar es Salaam with the old arguments that have stalled the talks for nearly two years. East Africa is currently trading with Europe on preferential terms but without legal backing after the World Trade Organization rejected the non-reciprocal trade terms that Europe had offered its former colonies in Africa and the Caribbean since the early 1960s.
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Greek economy shrinks even more. Business Week
Greek manufacturing contracted for the 24th month in April and economic growth declined more than originally forecast in the first quarter as the government cut spending and raised taxes to trim the European Union’s second- biggest budget gap. Greece faces a second year of recession as the government attempts to tame a budget shortfall of 13.6% of GDP, the highest in the 27-nation EU after Ireland.
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Ways to increase world trade. The OTC Investor
Over the years, countries across the globe have looked to one and other in search of valuable resources. World trade is becoming more prevalent, providing businesses with overseas opportunities. Investors might find positive returns on future global expansion. Global trade can provide nations with higher standards of living, enabling increased GDP measurements. CYBRA can offer a product that will provide suppliers with the ability to monitor shipments. BHP can offer resources to trading countries, and DRYS can assist in the shipment of those resources. Therefore, necessary factors are readily available, enabling world nations to reach a higher GDP.
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June 8
Japan’s new Prime Minister retains most of cabinet. CNN.com
Japan's new Prime Minister Naoto Kan announced his cabinet Tuesday, retaining 11 of 17 ministers in his predecessor's administration. Key ministers that Kan retained from Hatomayo's administration include Foreign Minister Katsuya Okada and Defense Minister Toshimi Kitazawa. With promises of a cleaner government, Hatoyama worked to shift the political dynamics in Japan by taking away power from the bureaucrats and granting more power to politicians and local governments.
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Increasing sheep trade in Argentina. Meat Trade News Daily
There are two major differences between Argentine sheep production and the rest of the world.Firstly sheep numbers are not declining and secondly they value the importance of wool in their enterprises. "During this time Argentine wool growers have benefited from improvement in world wool prices and from a massive devaluation of its currency at the end of 2001, which gave a considerable boost to its export industries, including wool," Mr Villagara said.
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Asia expected to drive economic growth. SFGate
The global economy will increasingly be driven by Asian nations, especially China, which must deliver more goods and services to its own middle classes, a trend with inflationary implications for the rest of the world, financial leaders suggested at a conference in San Francisco. Shanmugaratnam said that while the Chinese and other Asian economies are now export focused, the global slowdown will force Asian nations to look inward, as Western consumers curb spending and boost savings in response to the great recession. At present, Roach said Chinese consumers account for just 35 percent of the nation's gross domestic product, whereas in the United States, consumers buy roughly 70 percent of all goods and services.
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Why beer can shortage forces Brazil to increase rate. Business Week
Brazil is running out of beer cans and farmers are leaving crops in the field as surging demand and Chinese-like growth leads to shortages in Latin America’s biggest economy. The shortages are one result of economic growth forecast to quicken to 6.6% this year, the fastest pace in two decades. That expansion, in excess of the economy’s potential of 4.5%, is forcing central bank President Henrique Meirelles to raise interest rates to control inflation above the government’s target since January, said Elson Teles, chief economist at Maxima Asset Management SA in Rio de Janeiro. The economy grew 9% in the first quarter from a year earlier, the fastest annual rate since 1995.
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Vietnam needs effective monetary tools. Business Week
Vietnam should focus on finding more effective monetary policy tools rather than change its benchmark interest rate, Standard Chartered Plc said. “In terms of interest rates, we don’t expect them to make any significant moves,” Nicholas Kwan, the Hong Kong-based regional head of research at Standard Chartered, said at a World Economic Forum conference in Ho Chi Minh City. “The more immediate task for the central bank is to find true monetary tools, rather than to move the rate level.”
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Burundi’s presidential election has one candidate. AFP
Burundi's President Pierre Nkurunziza will be the only candidate in a June 28 election, after his rivals pulled out, the independent electoral commission announced. Six opposition candidates who had been set to challenge Nkurunziza at the polls quit the race after local government elections at the end of May, which were largely won by the ruling party amid cries of foul play.
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June 7
What’s driving Africa’s economic growth? Forbes.com
Many of Africa's 50-plus individual economies face serious challenges, including poverty, disease and high infant mortality. Yet Africa's collective GDP, at $1.6 trillion in 2008, is now roughly equal to Brazil's or Russia's, and the continent is among the world's most rapidly growing economic regions. This acceleration is a sign of hard-earned progress and promise.
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Vietnam: nearly a fully open economy. Bernama.com
Vietnam is continuing to open up its economy. According to VNA Lamy said that in 2009, Vietnam responded to the global financial crisis and economic downturn much better than other countries in the region as it maintained a better than average growth rate. Vietnam and Asean members want the Doha round of trade talks in East Asia currently happening to conclude soon with a balanced and practical outcome that takes into consideration under-developed and developing countries.
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Peru’s rapidly growing economy. Business Week
Peru’s “scorching” economic recovery has “more room to run in the coming months,” Morgan Stanley said. Peru will grow 7% this year instead of 4.9%, as South America’s sixth largest economy. Prices for copper and commodities, which account for two- third of Peru’s exports, remain “consistent with strong growth.”
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As member of ILO, India must recognize unions. Business Standard
The wildcat strike by the Air India Employees last month, ostensibly over a gag order imposed by the management, followed by derecognition of the two staff unions, was reminiscent of the ’70s and ’80s, when militant trade unions wiped out industries from Bengal and Maharashtra. Massive legal battles were waged between unions and management, but in recent years, these have lost media prominence to matters like IPL wars. From the legal perspective, on being faced with queries on legality of recognition of trade unions, I delved into the Trade Unions Act, 1926 to find no statutory provisions to that effect. Fortunately, having more than a nodding acquaintance with certain state laws proved to be productive, and recent cases provided interesting insights on the different positions taken by the Courts.
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N. Korea has a new premier. CNN.com
North Korea named Choe Yong Rim as its new premier Monday, replacing Kim Yong Il at a session of the Supreme People's Assembly. A North Korean premier oversees economic policy and appoints ministers who are then confirmed by parliament.
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The Next Silicon Valley: New York? CNN.com
For years, California's Bay Area has been home to tech powerhouses such as Apple and Google and the most successful internet startups: YouTube, Wikipedia, Facebook, and Twitter. However now, New York is turning up the heat on its West Coast competition with some successful startups of its own: think Tumblr, the blogging platform; Foursquare, the mobile social-networking game; and Gilt Groupe, an online store for discounted designer clothes.
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Increasing cost of doing business in China. The New York Times
The cost of doing business in China is going up. Coastal factories are increasing hourly payments to workers. Local governments are raising minimum wage standards. And if China allows its currency, the renminbi, to appreciate against the United States dollar later this year, as many economists are predicting, the relative cost of manufacturing in China will almost certainly rise.
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The World’s busiest ports. Forbes.com
The global shipping industry is beginning to show signs of returning to profitability after suffering through one of its worst years ever in 2009. Since container shipping accounts for 52% of the total value of the world's seaborne trade, according to Lloyd's Maritime Intelligence Unit, Forbes used it to rank the world's busiest ports. Asia's exporting prowess is so dominant that Dubai and Rotterdam are the only two ports from outside the region to even make the list of busy ports.
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Grifols buys Talecris for expansion. New York Times
Grifols, the Spanish health care group that produces treatments based on blood plasma agreed to acquire Talecris, a U.S. company, for $4 billion including debt. Victor Grifols, chief executive of the Barcelona company, praised Talecris’s “strong clinical research capability and new research into recombinant therapies,” adding that the deal would expand Grifols’s product line, geographic reach and manufacturing scale.
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June 6
Dubai International Capital may face closure. The London Times
Dubai’s ambitious attempts to build an overseas investment empire to rival Europe’s biggest private equity firms could soon come to an end. Dubai International Capital was set up in 2005 to compete for deals with Europe’s biggest buyout houses. It snapped up a string of companies in its attempt to build a portfolio that would rival established private equity firms. DIC is unlikely to be bailed out by the Dubai government, which is facing its own debt crisis.
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China rethinks Asia’s role in enhanced economy. news.xinhuanet.com
Vice Chairwoman of the National Committee of the Chinese People's Political Consultative Conference Wang Zhizhen called on Asian countries to rethink its enhanced role in the world economy. Wang told the World Economic Forum on East Asia, opened under the theme "Rethinking Asia's Leadership Agenda," that Asia is one of world's most dynamic region and a driving force in world economic revival. "The international financial crisis has brought big changes to the world political and economic landscape," said Wang. It is of positive influence to explore new development strategy in the post- crisis period and rethink Asia's role, she added.
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Gulf Arab shares decline on oil. Business Week
Gulf shares dropped, led by declines in Dubai and Abu Dhabi, as crude oil tumbled and lower-than- estimated U.S. jobs growth and a spreading debt crisis in Europe fueled concern the global economic recovery will slow. “The global selloff, and the drop in the euro and oil prices are not helping investor sentiment,” said Saud Masud, a Dubai-based analyst at UBS AG.
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Afghan officials resign over peace conference attack. CNN.com
Afghanistan's interior minister and director of national security have resigned in the wake of an attack on a high-level peace conference last week. President Karzai demanded an explanation of the security breach from Interior Minister Hanif Atmar and NDS chief Amrullah Saleh, and when they could not provide one, he accepted their resignations.
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BP faces ban on future American operations. The London Times
American legislators are examining plans to “debar” BP from government contracts and oil exploration deals as punishment for the Gulf of Mexico oil spill. The administration is understood to be weighing the legality of a process called debarment. It would stop BP from being awarded new fuel supply contracts by government clients and ban it from being granted new oil drilling leases.
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Russian sister cities grow with economic improvement. Bellingham Herald
Bellingham continues to build an economic relationship with one of its oldest sister cities, Nakhodka. They share many similarities and it's a great opportunity to continue to exchange ideas. The city was impacted by the economic challenges of other nearby Asian countries like Japan in the 1990s. It is a port city of about 150,000 at the terminus of the Trans Siberian railroad. Sands, a business management instructor at Western Washington University, is planning to have his students in upcoming business management classes interact with the students of Nakhodka's entrepreneurship center. As more small businesses get established, Woods, a counselor for the Bellingham chapter of SCORE, plans to assist them by providing details on growing a company.
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June 5
Push for Colombia trade agreement is made. Thehill.com
A bipartisan group of House members is urging President Barack Obama to support approval of the U.S.-Colombia free trade agreement. In a letter to the president this week, the group of 39 representatives said the pact would open a new market for American goods and help the administration accomplish its goal of doubling U.S. exports over the next five years. The letter pushed for the agreement, which was signed more than three years ago, to be approved before August, when Colombian President Alvaro Uribe leaves office.
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Asia Pacific administers free trade talks in Japan. ChannelNewsAsia.com
Asia Pacific ministers kicked off a two-day meeting in northern Japan to discuss speeding up trade liberalization in a region that generates half of the world's economic output. At their last summit in Singapore, APEC leaders including the US and Chinese presidents instructed their officials to start exploratory work on a giant free-trade area covering the entire Asia-Pacific region of 2.6 billion people.
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EU, Pakistan to improve trade together. AFP
The new plan, agreed by EU president Herman Van Rompuy and Pakistani Prime Minister Yousuf Raza Gilani still lacks detail but is aimed at boosting cooperation in the areas of regional security, trade, development and the fight against terrorism. The EU is already Pakistan's largest trading partner and a major aid donor but Lahore argues that Europe should further open its markets, particularly to its key textile sector.
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Euro to worsen after Hungary voices its economic state. The London Times
The euro slumped to a four-year low against the dollar yesterday amid concerns that Europe’s debt crisis will worsen still further after Hungary said that its economy was in a “very grave situation”. The new Hungarian centre-right Government, sworn in less than a week ago, said that it would soon reveal plans to tackle the economy’s problems. It has said it wants to boost growth through tax cuts and economic stimulus measures.
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Florida tourism affected by BP oil spill. Business Week
Florida officials and tourism industry executives are juggling two missions, working to protect the shore from oil spreading from the April 20 spill in the Gulf of Mexico while assuring tourists that the state’s 825 miles (1,327 kilometers) of beaches remained safe so far. Hotels relaxed cancellation policies for wary guests while updating photos on websites to show beaches that remained pristine. Florida draws about 80 million visitors a year, bringing in $60 billion and making tourism the state’s No. 1 industry, according to Kathy Torian, spokeswoman for Florida’s tourism office in Tallahassee. Tourism accounts for almost one-quarter of the state’s sales-tax revenue.
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June 4
Zuma, India PM agree on improved trade ties. AFP
South African President Jacob Zuma, on his first state visit to Asia, said it was time to take trade ties with India to a "higher level" after talks Friday with Prime Minister Manmohan Singh. As well as boosting trade, the talks covered reform of the UN Security Council, closer cooperation on climate change and the global economy. Together with Brazil, India and South Africa have formed an informal grouping of emerging market nations, pushing for a stronger voice in international institutions such as the IMF and the United Nations.
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Taiwan seeks trade agreements through WTO. Focus Taiwan
A United States diplomat supported Taiwan's right to sign trade agreements with other WTO members, but said that an existing trade and investment framework agreement would be a better vehicle through which to improve U.S.-Taiwan ties. Taiwan is trying to sign an economic cooperation framework agreement (ECFA) with China, in part to pave the way for signing free trade agreements (FTAs) with other countries, including the U.S.
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Graphite invests in development to boost economy. The London Times
Graphite Capital, the private equity house, has invested £100 million in a new residential developer that will take on major homebuilders in London with plans to build 600 new homes a year in the capital. Mike Innes, a partner in Graphite, told The Times: “This is a cyclical opportunity. We have been looking at a number of possible moves into property for the last 18 months. In the past recession, some of our partners did very well out of investing in the sector. We decided that the best option was to start with a clean sheet and with a new management team.”
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G20 tackles economy in S. Korea. The London Times
When the finance ministers and central bankers of the G20 arrive in the South Korean port town of Busan today, they may get ideas: this is the Asian capital of cosmetic surgery tourism, a place that specializes in the surface quick-fix. The recovery is fragile, the global economy still needs invasive surgery and the group gathering today should at least be prepared to make a first incision, say economists. Asian members of the G20 may be keen to settle questions surrounding the euro. The US, Britain and the larger emerging markets may be eager to challenge China on the yuan.
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How the World Cup with affect UK retail. Business Week
The retail sector could certainly do with a lift, with consumer spending at its lowest ebb since the depths of the recession. Over the next few weeks, England football fans will splash out with wild abandon, buying everything from replica shirts to World Cup-themed pizzas and cases of beer as they follow their team's progress in South Africa. The tournament is traditionally seen as providing a massive boost to UK Plc.
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GM forms technology venture firm. New York Times
The subsidiary, known as General Motors Ventures, plans to invest in start-up companies working in a variety of fields, including renewable fuels, information and entertainment systems and advanced materials. “We are constantly looking for ways to deliver the best technology for our customers,” Stephen J. Girsky, a G.M. vice chairman said. “Our goal is to nurture these innovative technologies to help bring them to market, and to ensure our customers have access to the best technology available.”
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Estonia: the fastest recovering Baltic nation. Business Week
It sometimes makes sense to lump together Estonia, Latvia, and Lithuania into a grouping called the Baltic states, when talking about their common 20th century experience of foreign domination, for instance, or, more recently, entry into NATO and the EU. However, in the most fundamental ways, such as histories, languages, and, now, economies, they are different. "Estonia is recovering first because the economy was stronger in the beginning," said Heikki Maki, vice president of Elcoteq.
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June 3
Colombia bonds to extend advance. Business Week
Colombia’s peso bonds will extend a three-month rally as higher oil prices and tax revenues ease the need to increase debt issuance after the government postponed its sale of Isagen SA, according to ING Pensiones y Cesantias. “There’s no reason for TES yields not to fall much more, even to levels that would surprise us,” Felipe Gaviria, chief investment officer at ING Pensiones, the country’s fifth-biggest pension fund.
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Online advertising surges in Middle East. Business Week
Spending on online advertising in the Arab world may surge to about $400 million within four years from about $90 million in 2009, said Samih Toukan, chief executive of Jabbar Internet Group, which owns online businesses such as e-commerce website Souq.com. A growing number of Arab businesses are "looking at the return on their [ad] investment and the best way to track that is online," said Husni Khuffash, Google's regional manager for the United Arab Emirates, Lower Gulf, and Levant.
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Carrefour strategizes to strengthen home market. New York Times
The chief executive of Carrefour is staking the future of the giant French retailer on a simple strategy: strengthen at home, then either dominate or withdraw abroad. “Carrefour had lost track of being client and consumer focused and lost a certain track of price competitiveness,” Mr. Olofsson said.
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China, Taiwan to sign Economic Cooperation Framework Agreement. Asiaone Business
China and Taiwan are expected to sign a trade agreement, which the latter believes will make it competitive in the globalized world, as well as pave the way for similar agreements to be signed with other countries. This year, the Taiwanese government hopes to welcome up to one million tourists from China even as it negotiates a trade pact, known as the Economic Cooperation Framework Agreement (Ecfa), with China.
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Japan’s new PM: Kan. Wall Street Journal
The ruling Democratic Party of Japan picked Naoto Kan as its new leader Friday, making it all but certain that the lawmaker, who has underscored the importance of the U.S.-Japan relationship and increased fiscal discipline, will become the nation's prime minister by the end of the day. Kan succeeds Yukio Hatoyama, who resigned as prime minister on Wednesday after a turbulent eight-month reign. Mr. Kan is set to become Japan's fifth prime minister in less than four years.
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Phillip Morris, R.J. Reynolds sue NYC for First Amendment rights. Business Week
U.S. cigarette makers Philip Morris USA and R.J. Reynolds Tobacco Co. sued New York City, alleging its mandated anti-smoking advertisements violate their First Amendment rights and are preempted by federally mandated warnings. The cigarette makers and Lorillard Tobacco Co. allege in a complaint filed today in U.S. District Court in Manhattan that the city’s graphic health-warning signs force them to carry messages they wouldn’t carry at the point of sale
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GGP emerges from bankruptcy, turns over properties. Business Week
General Growth Properties Inc., the second-largest mall owner in the U.S., said it’s identified 13 “underperforming” retail properties that may be turned over to lenders after the company emerges from bankruptcy. General Growth filed the biggest U.S. real estate bankruptcy in April 2009 after amassing $27 billion in debt by making acquisitions.
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Copper market seems at risk from China. Business Week
Freeport-McMoran Copper & Gold Inc. and Codelco, the world’s two largest copper producers, said China’s plans to curb its economy threaten to reduce demand for the metal after prices slumped 15 percent in two months. “China is the biggest user, so any concerns about demand there will continue to be a drag on copper,” Donald Selkin, the chief market strategist at National Securities Corp. in New York said.
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Brazil, N. Korea become trading partners. Asia Times
Recent indications are that Pyongyang has sought willing trade partners outside of Asia and its new closest commercial ally appears to be Brazil. Relations between the two countries have warmed considerably since leftist Luiz Inacio Lula da Silva became president in January 2003. Since Brazil is not on any international sanctions list, it is easier for it to obtain dual-use materials. It remains to be proven, however, that Brazil has served as a conduit for such goods ultimately destined for North Korea.
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June 2
World Bank urges Africa to improve trade. AllAfrica.com
World Bank chief economist for Africa, Devarajan, is in SA to consult with policy makers and civil society movements on a new World Bank strategy for Africa. Africa must invest up to 93bn a year to build a world-class infrastructure that would stimulate internal growth and trade with other countries and more measures should be put in place through policy reforms to improve productivity levels in Africa's economies.
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Hawaii governor takes 4th trade, tourism trip to China, Japan. CanadianBusiness
Gov. Linda Lingle will work on opening Chinese markets to Hawaii-produced goods and promote Hawaii tourism to Japanese travelers during a two-week trip to Asia scheduled to begin Friday. While in China, two state agricultural officials will finalize a memorandum of understanding that will ease the way for Hawaii-produced agricultural products to be exported to China, she said.
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Greece to sell assets to pay down deficit. New York Times
Greece announced its plans for a big sale of state-owned assets, as the struggling government moved to shrink its huge budget deficit and fulfill the terms of an international rescue package. The government will sell 49% of the state railroad, list ports and airports on the stock market, and privatize the country’s casinos.
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Japan’s Hatoyama resigns as PM. Business Week
Yukio Hatoyama quit as Japan’s prime minister less than nine months after ending a rival party’s 50- year lock on power as money scandals and a broken promise to move U.S. troops cost him the support of four in five voters. The end of the Hatoyama administration highlights the difficulties of achieving political change in Japan, which has suffered four recessions and persistent deflation since 1990.
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Boeing, Petrochina sign biofuels “green” agreement. Dailytech.com
Aerospace and defense giant Boeing and Chinese oil company PetroChina along with the global aviation industry and representatives of the Chinese energy sector have signed an agreement to assess the idea of establishing a sustainable aviation biofuels industry in China. The assessment will look at socioeconomic and environmental benefits of developing alternative fuels as opposed to fossil-based fuels.
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Taiwan protests China’s bid to block trade pacts. Sifynews
Taiwan President Ma Ying-jeou objected to China's bid to block the island from signing free-trade pacts with other countries, saying it is Taipei's right to do so. Beijing opposes such trade deals because it regards Taiwan as a Chinese territory rather than a sovereign nation since the two sides split at the end of a civil war in 1949.
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Nissan bids for Ssangyong. Cars Singapore
It was revealed recently that Nissan has placed a bid to acquire Korean auto maker Ssangyong which entered bankruptcy protection in February 2009. Nissan is leading Renault, the company that holds the biggest share in the Japanese brand into the potential acquisition. Apparently up to seven parties have expressed interest in Ssangyong and one would need to fork out 700 billion won or US$572 million to purchase a controlling stake in the company.
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June 1
Eurotunnel buys GBrf. Forbes.com
Channel tunnel operator Eurotunnel has bought Britain's third-largest rail freight company in a 31 million pounds ($45 million) deal. The British company, GB Railfreight Ltd., would be integrated with Eurotunnel's French subsidiary, Europorte France.
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7-Eleven acquires Mobil service stations. International Business Times
7-Eleven Australia has agreed to acquire the retail fuels business of Mobil Oil Australia, comprising 295 company-owned or leased service stations. The addition of the outlets will substantially strengthen 7-Eleven's presence, particularly in metropolitan areas of eastern Australia, bringing the total number of outlets to more than 650 and increasing customer transactions to an estimated 160 million per year and projected sales of over $2.84 billion.
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Chinese Honda strike reflects economic changes. New York Times
The strike by Chinese workers to protest pay and working conditions has cost Honda, Japan’s second-largest carmaker after Toyota, thousands of units in lost production in the world’s biggest auto market. In Tokyo, the strike has driven home a salient point: as Chinese incomes and expectations rise in line with the country’s rapid growth, while Japan’s own economy falters, the two countries face a realignment that could permanently alter the way their economies interact.
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Canada raises key interest rates with eye on global economy. New York Times
In a tentative and qualified move, the Bank of Canada increased its benchmark lending rate on Tuesday for the first time since July 2007. The increase reflected growing concerns about inflation related to Canada’s booming real estate market and strong economic growth. The evolution of Europe’s economy will determine whether the Bank of Canada follows up with further rate increases, Senior Economist Guatieri added.
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U.S. President Obama investigates BP oil spill. Business Week
President Barack Obama called the BP Plc oil spill in the Gulf of Mexico “the greatest environmental disaster of its kind in our history” and vowed to pursue a criminal investigation if any laws were broken. BP’s latest effort to plug the damaged oil well, resulting in the largest oil spill in U.S. history, was deemed a failure over the weekend.
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China Central Bank to promote Yuan settlement in Xinjiang trade. Xinhuanet.com
China's central bank will push forward Yuan settlement in cross-border trade and investment in the western Xinjiang Uygur Autonomous Region, Zhou Xiaochuan, governor of the People's Bank of China (PBOC) said. Zhou said it was one of PBOC's important moves amid the central government's efforts to achieve leapfrog development and lasting stability in Xinjiang.
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Russia approves legal aid agreement with Vietnam. VOVNews
The agreement was signed by both countries in Moscow in 1998 to complete legal mechanisms for ongoing Russia-Vietnam relations. It stipulates the criteria for Russia and Vietnam when they assist each other legally and settle issues related to laws as well providing legal aid for both countries’ citizens, including individual stipulations, labor rights, and immunities.
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Spain’s labor reform. Reuters
Talks between the Spanish government, unions and businesses aimed at reaching agreement on wide-ranging labor reforms are in the final stages, Labor Minister Celestino Corbacho said. Spanish unemployment has more than doubled since the beginning of the economic crisis as struggling construction and service industries hemorrhaged jobs and economists say reform is vital to avoid job market stagnation.
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