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Last Updated: Dec 19th, 2007 - 13:17:15 |
The big news from Asia-Pacific this week is the defeat of the Australian governing coalition despite an impressive economic record.
Prime Minister John Howard formally conceded defeat to Kevin Rudd on Saturday, in the federal election and paid tribute to the Australian people.
Addressing a gathering of Liberal party supporters at Sydney's Wentworth Hotel, Howard admitted it was "very likely" that he could lose his own seat of Bennelong to Labor challenger Maxine McKew.
But he said it had been an immense privilege to have been the prime minister, and thanked the Australian people.
"My fellow Australians, I telephoned Mr Kevin Rudd and I congratulated him and the Australian Labor Party on a very emphatic victory," he said.
"This is a great democracy and I want to wish Mr Rudd well.
"There is no prouder job in the world that anyone can occupy than being prime minister of this country."
Howard acknowledged that the speech was being delivered "at the end of my political career".
"I take full responsibility for this campaign and I therefore accept full responsibility for the defeat in this election," he added.
BusinessWeek Asia says that the Australian economy is in the midst of an unprecedented boom, fueled largely by increasing demand from China and India for Australian exports of minerals. Australia is in its 16th consecutive year of strong economic expansion, with gross domestic product growth for the year ended in June, 2007, of 4.3%. The unemployment rate is just 4.3%.
In a report from Tokyo, the Wall Street Journal says that with the US private-equity boom stalled by lenders' new stinginess, Japan, where banks are eager to lend and many businesses are ripe for restructuring, would seem fertile new ground for the buyout firms. Yet consider the experience of Carlyle Group.
Six years ago, the Washington, D.C.-based private-equity firm set out to acquire a small Japanese mobile-phone company that was languishing. The target's revenue was falling, its technology was seen as outdated, and a conglomerate that owned it was showing scant interest in the business. Now here was Carlyle, willing to pay more than a billion dollars for the enterprise.
Yet it took Carlyle two years to persuade the parent company to sell. Carlyle clinched a deal only when it brought in a Japanese corporate partner and agreed not to do layoffs at the target company. Then, to gain the trust of the company's skeptical employees, a Carlyle executive took a desk among its salespeople and even occasionally called on prospective clients himself.
The Journal says that Japan has a surfeit of candidates for restructuring. While Carlyle's long effort is now bearing fruit, the firm's experience shows why the second-largest economy remains such a tricky place for private-equity investors, who often buy public companies and restructure them, hoping to resell them later for big profits.
The buyout opportunities result from Japanese conglomerates' rush to expand over recent decades. In doing so, they accumulated sprawling portfolios of businesses, sometimes with little evident regard to whether these fit their core strategies. Japanese companies trail overseas competitors on a host of benchmarks, including return on equity, a measure of how effective a company is at generating profits from its assets. Japanese companies have an average ROE of just under 9%; the global average is more than 15.6%.
BusinessWeek Asia asks - How's this for strange? Toyota Motor, the company that has the rest of the auto industry running scared, is worried.
As new hires pour in and top executives approach retirement, the company fears it might lose the culture of frugality, discipline, and constant improvement that has been vital to its success. So management has launched a slew of education initiatives, and even uses a business school in Tokyo to teach Toyota to be, well, more like Toyota. "We are making every effort not to lose our DNA," says Shigeru Hayakawa, president of Toyota Motor North America.
Peek under the hood at Toyota and you start to understand why management is worried. Rapid growth has forced this most Japanese of companies to rely more and more on gaijin (foreigners) overseas. Top brass—the ones who transformed a lean upstart into a global powerhouse—are nearing retirement, to be replaced by a generation that has never had a bad day at the office. And in the past three years, Toyota has hired 40,000 workers new to the company's culture. "It isn't an immediate problem; it's like a metabolic disease you don't know you have before it's too late," says Tatsuo Yoshida, an analyst at UBS in Tokyo.
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| The new Prime Minister of Australia Kevin Rudd at the celebration of the Labor Party's comprehensive victory - - Photo: ABC |
The Financial Times reports that in the south of Mumbai, on a site that used to house an explosives factory, Prashant Kothari is now producing biofuel from jatropha, a robust bush whose cultivation is expanding rapidly across Asia.
Growing jatropha has allowed Mr Kothari to make use of the vast but arid plot of land surrounding the factory and switch out of explosives production following a ban on an active ingredient, nitroglycerin.
India alone is hoping to plant 33.5m acres of jatropha by 2012. From the Philippines to Burma , several Asian governments are setting equally ambitious targets for a crop whose fuel efficiency remains largely untested.
Jatropha’s development is a potential challenge to some countries that are much more advanced in planting other biofuel crops, notably Malaysia, which accounts for 57 per cent of the world trade in palm oil.
While palm oil is the most energy-efficient crop, it is also more taxing on the soil, leading Greenpeace to warn this month of “a climate bomb” in Indonesia, where forests and swamps are being stripped to make way for palm plantations. Industry members, analysts and non-governmental organisations are meeting this week in Kuala Lumpur to thrash out the certification criteria for sustainable palm oil.
The FT also reports that Proton, the Malaysian carmaker, said on Tuesday that it had ended partnership talks with Volkswagen and General Motors, raising doubts about the long-term survival of the troubled state-owned venture.
Foreign investors saw the proposed sale of a large stake in Proton as a significant test of the government’s ability to restructure Malaysia’s sizeable state-owned industrial sector.
However, there is strong support for the independence of Proton within the ruling United Malays National Organisation, and the decision could be linked to general elections that are expected to be called soon.
Analysts say Proton needs a foreign partner to improve its technology and its network of car parts suppliers, which have been blamed for the carmaker’s poor quality record.
The Malaysian government said Proton could continue to operate without a foreign partner “for the time being”, citing a recent improvement in sales. Proton reported its first annual loss, of RM$591m ($176m), in at least 17 years in 2006.
Xinhua, China's Sttae news agency reported that Standard & Poor's has upgraded its ratings on four state-owned Chinese banks on their enhanced credit profiles, the rating agency said on Friday.
Standard & Poor's Ratings Services said it has raised its local and foreign currency long-term counterparty credit ratings on Bank of China to A- from BBB+, with a stable outlook.
The China Construction Bank and the Industrial & Commercial Bank of China also got upgraded ratings on the long-term counterparty credit rating of foreign currency to A- from BBB+, the rating firm said. CCB's outlook is stable while ICBC's outlook is positive.
Shanghai-based Bank of Communications, the fifth biggest bank in China, got an outlook rating from stable to positive.
"These ratings actions reflect the Standard & Poor's assessment that the banks' efforts to build up their financial positions, corporate risk cultures, risk management capabilities, and business profiles are starting to pay off, albeit to slightly different degrees," said Liao Qiang, a Standard & Poor's credit analyst.
The four banks, among the country's top five, experienced a reform path of attracting strategic overseas investors, restructuring and going public.
The four banks are now listed both in Hong Kong and Shanghai.
Liao said the banks' financial profiles have benefited from a favorable operating environment, including a protected interest rate spread, good liquidity, a booming retail banking market and China's strong economic growth.
China' retail banking sector grows as Chinese seek more financial products when their pockets go deeper amid a rising economy.
Premier Wen Jiabao said earlier this week that China's economy will grow 11.5 percent this year. Economists had said that the growth next year would still be double-digit.
Standard & Poor's regards the four banks as commercial government-related entities and systemically important.
FINFACTS REPORTS THIS WEEK RELATED TO ASIA-PACIFIC
Emerging East Asian Bond Markets resilient but risks loom says Asian Development Bank report
Strong economic growth and improved financial systems along with limited exposure to U.S. subprime mortgages have helped curb spillover effects of global credit woes on emerging East Asian economies, but risks loom, says a new report issued by Asian Development Bank (ADB).
Diminishing trade flows between ASEAN nations signal the need for further integration, says new Economist Intelligence Unit report
ASEAN’s ambitions to create a unified single market in South-east Asia are not being fulfilled, according to Trading up: A new export landscape for ASEAN and Asia, a new report published today by The Economist intelligence Unit and sponsored by DHL Asia-Pacific. Instead, trade between ASEAN countries is decreasing as China becomes an increasingly powerful force in regional and global trade.
OECD releases new GDP and household consumption comparisons based on purchasing power parities; Irish GDP per capita flattered by huge multinational presence
New benchmark comparisons based on purchasing power parities (PPPs) show the level of gross domestic product per head has risen closer to the OECD average in a number of countries including Turkey, Mexico, the Slovak Republic, Hungary, Poland and the Czech Republic.
ACCESS TO NEW REPORTS FROM OTHER SOURCES
Friday
Yuan Rises Beyond 7.4 Per Dollar For First Time Since Link Was Scrapped - - China's yuan strengthened beyond 7.4 to the dollar for the first time since a fixed exchange rate was scrapped in 2005, as the central bank allowed faster gains before a visit by European officials next week.
FAW Group Plans to Become First Chinese Automaker to Build Cars in Mexico - - China FAW Group Corp. will become the country's first automaker to operate a plant in Mexico as increasing domestic competition causes Chinese carmakers to seek sales in Latin America, Eastern Europe and Asia.
Hong Kong's Tsang Urges Mainland Initial Share Sales, Eyes Media Companies - - Hong Kong Chief Executive Donald Tsang urged mainland Chinese officials to let more domestic firms, including media companies and insurers, sell shares on the city's exchange.
Value Partners May Sell China Investment Products With Ping An Insurance - - Value Partners Group Ltd., the first asset manager to sell stock in Hong Kong, may offer investment products together with shareholder Ping An Insurance (Group) Co. to tap China's $2.3 trillion of household savings.
China's Key Stock Index Falls to Three-Month Low; Citic, Vanke Lead Drop - - China's stocks fell, dragging the CSI 300 Index to a three-month low. Citic Securities Co. paced a retreat by brokerages as trading volumes slumped yesterday to a third of this year's daily average.
Chinese share prices slump heavily - - Chinese share prices on Thursday slumped heavily as the benchmark Shanghai Composite Index, which covers both A and B shares, plunged 230 points, or 4.41 percent, to 4,984.16 points at the close.
EU: China makes considerable progress in product safety - - China has made considerable progress in taking actions to ensure safety of toys and other products exported to Europe, the European Union (EU) consumer chief said on Thursday.
China's yuan breaks 7.4 mark against U.S. dollar - - China's currency, the yuan, Friday hit a new high against the U.S. dollar for the second consecutive day, smashing the 7.4-yuan mark, according to the Chinese Foreign Exchange Trading System.
India is Confident of Controlling Overseas Capital Flows, Chidambaram Says - - India's Finance Minister Palaniappan Chidambaram said the South Asian nation is confident of gaining control over record inflows of capital that have fueled advances in the rupee and the benchmark stock index.
Inflation Eases to Near Five Year Low; Subsidy Buffers Record Oil Prices - - India's inflation held near a five- year low as the government subsidized fuel to protect consumers from record crude oil prices ahead of elections.
Sensex Rises, Snapping Longest Losing Streak in Month; Larsen Leads Gains - - Indian stocks rose, with the benchmark Sensitive Index rising from a one-month low, after investors judged six straight days of losses as excessive. Larsen & Toubro Ltd. and Reliance Energy Ltd. led gains.
Indian Sugar Mills Face Losses as Biggest Producing State Sets Cane Price - - Indian sugar makers, battered by falling prices of the sweetener, face more losses after the nation's biggest producing state forced them to buy cane at above market prices.
Rupee Falls for Sixth Day, Longest Losing Run in 15 Months on Stock Sales - - India's rupee fell for a sixth day, its longest losing streak in 15 months, after overseas investors increased sales of local equities.
Dollar Falls Below 108 Yen as Credit Market Losses May Spur Fed Rate Cut - - The dollar dropped below 108 yen for the first time since 2005 and fell to a record low against the euro on speculation U.S. credit-market losses will prompt the Federal Reserve to lower interest rates.
Asian Stocks Gain for First Time in Seven Days; ICBC Leads Hong Kong Gains - - Asian stocks rose for the first time in seven days, trimming a regional index's worst weekly loss in three months.
Oil Trades Near $97, After Failing to Reach $100, on Slowing U.S. Economy - - Crude oil traded near $97 a barrel, after failing to reach $100 this week, because increased shipments and slowing demand in the U.S. may bolster stockpiles.
China's Yuan Rises Past 7.4 a Dollar to Strongest Since Link was Scrapped - - China's yuan strengthened beyond 7.4 to the dollar for the first time since a fixed exchange rate was scrapped in 2005, as the central bank allowed faster gains before a visit by European officials next week.
Japan Airlines Chooses 5 Bidders for Stake in Credit Card Unit, Kyodo Says - - Japan Airlines Co. chose Mitsubishi UFJ Financial Group Inc., Credit Saison Co. and three other financial firms as preferred bidders for a stake in its credit card unit, Kyodo News reported.
Fujitsu sees operating profit dive - - Fujitsu Ltd. said Thursday its April-September operating profit fell 13.2 percent from a year earlier to ¥43.93 billion, reflecting a sharp fall in prices of hard-disk drives and an increase in administrative and marketing costs.
Thursday
CSI 300 Stock Index Falls by the Most in Two Weeks in China; Banks Decline - - China's stocks fell, sending the CSI 300 Index to its biggest decline in two weeks. China Merchants Bank Co. and Shanghai Pudong Development Bank Co. led the nation's banks lower on concern the U.S. housing loans crisis could slow China's economy.
BHP Tells China's Steelmakers Rio Purchase Won't Impact Iron Ore Pricing - - BHP Billiton Ltd. told Chinese steelmakers, the biggest buyers of iron ore, it will refrain from using a potential $125 billion takeover of Rio Tinto Group to control prices, according to a Chinese executive.
Zinc Futures Tumble in Shanghai After Widening of Limits on Price Movement - - Zinc for January delivery on the Shanghai Futures Exchange fell 10.1 percent to 16,370 yuan a ton as trading resumed today after the exchange more than doubled price movement limits for some contracts.
Hong Kong Inflation May Have Climbed to Nine-Year High of 2.7% in October - - Hong Kong's inflation rate may have climbed to a nine-year high of 2.7 percent in October as rents rose because the government resumed charging a property tax.
Asian Government Bond Market Grows Faster Than Local Currency Company Debt - - Asia's government bond market grew faster than the value of corporate debt issued in the Chinese yuan, Malaysian ringgit and other local currencies for the first time in 18 months, according to the Asian Development Bank.
Why Warren Buffett's Keen on Korea - - "Attractively priced" stocks, healthy debt ratios, plus solid manufacturing prowess position Korea to profit from growth in China and the Mideast
BOC reports 40% net profit from overseas operations - - Bank of China (BOC), the nation's second largest lender, derives nearly 40 percent of its net profits from overseas operations, a senior executive said Wednesday.
BOC opens new UK outlet amid Chinese banks' "gold rush" overseas - - The Bank of China on Wednesday held an opening ceremony for its new outlet in London which provides retail services to local individuals and companies.
China, Indonesia, ROK win trade ruling about paper - - The U.S. International Trade Commission (ITC) on Tuesday ruled out anti-dumping or countervailing duties against coated free sheet paper from China, Indonesia and South Korea.
Indonesian vice president says Temasek must abide by laws - - Indonesian Vice President Jusuf Kalla said on Wednesday that the Singaporean company Temasek holding must obey the Indonesian laws.
Asian Stocks Fall on Global Economy, Dollar Concerns; Banks, Toyota Drop - - Asian stocks fell to a two-month low, extending a global rout triggered by concern widening credit- market losses will slow global growth.
Asia Government Bond Market Grows Faster Than Corporate Debt In First Half - - Asia's government bond market grew faster than the value of corporate debt issued in the Chinese yuan, Malaysian ringgit and other local currencies for the first time in 18 months, according to the Asian Development Bank.
Indonesia, Thailand, India, Malaysia, Philippines: Asia Local Bond Preview - - The following events and economic reports may influence trading in Asian local-currency bonds today. Yields are from the previous session.
Crude Oil Trades Near $97 After Falling From Record on U.S. Stockpile Gain - - Oil traded near $97 a barrel in New York after falling from a record yesterday amid signs of slowing demand growth in the U.S., the world's largest energy consumer.
European Union, Asean Plan to Strengthen Trade, Promote Energy Security - - The European Union and the Association of Southeast Asian Nations said they plan to ``expeditiously'' negotiate talks for a free-trade agreement to boost economic ties between the two blocs.
Aussies Vote, Boom Continues - - John Howard's conservatives may lose to Labor Nov. 24, but it won't be due to the economy, which is riding high on commodities and China trade
Stocks Decline in Tokyo as Subprime Woes Continue, Yen Gains; Honda Falls - - Japanese stocks fell for a second day after a report showed home prices dropped in a third of U.S. cities, heightening concern the housing slump will slow global growth as consumers in the world's biggest economy curb spending.
Japan Tobacco to Buy Katokichi for $1 Billion, Sell Stake to Nissin Food - - Japan Tobacco Inc., the nation's biggest cigarette company, agreed to buy frozen-food maker Katokichi Co. for 109 billion yen ($1 billion) to double food sales as the number of smokers dwindle in its home market.
Yen Falls on Speculation Japan's Importers Selling After Five-Month Rally - - The yen retreated from the highest in more than two years against the dollar on speculation Japanese importers are selling the currency to take advantage of a five-month rally.
Bank of Japan's Nakamura Says `Downside Risks' for U.S. Economy Are Rising - - Bank of Japan board member Seiji Nakamura said ``downside risks'' to U.S. economic growth are rising as the housing recession worsens.
Toyota's All-Out Drive To Stay Toyota - - Rapid growth and a generational shift have the company fighting to hold on to its DNA
Major Japanese banks' 1st-half profit sharply lower - - Japan's top six banking groups logged a combined group net profit of around 950 billion yen (8.72 billion U.S. dollars) in April-September period, down 45.4 percent from a year before, Kyodo News said Wednesday.
Wii-hunters told to shop now before winter demand heats up - - Each holiday season, a couple hard-to-find toys send parents hunting from store to store. And, each season, they're soon forgotten: Has your Elmo gotten any tickles lately?
Wednesday
China Wins Afghanistan's Largest Copper Mine With Offer of $2.87 Billion - - China Metallurgical Group Corp., the state-owned diversified metal producer, led a group that beat four rivals for the right to develop Afghanistan's largest copper mine with a $2.87 billion offer, a company consultant said.
Asian Leaders Drop India, Australia, New Zealand From Regional Trade Bloc - - China, Japan and South Korea agreed to work with the 10-member Association of Southeast Asian Nations to open up regional trade, dropping a plan to include India, Australia and New Zealand.
Soybean, Palm Oil Prices to Get Boost From China After Farmers Plant Less - - China, the world's biggest vegetable oil consumer, will import more soybeans and palm oil to meet growing demand after local farmers reduced oilseed plantings, bolstering prices that have risen by half this year.
China May End Oil, Gas Disputes, Seek Closer Ties With Southern Neighbors - - China promised to resolve all disputes over claims for oil and gas in the South China Sea with its Southeast Asian neighbors and to strengthen military ties as part of an effort to accelerate the formation of an economic East Asian Community.
Facebook in China? Not So Fast - - There's much speculation that the social networking site will follow MySpace to the mainland, most likely through an acquisition, but Facebook denies the latest rumors
Slurping Up Profits at Ajisen - - The ramen restaurant chain is winning devoted fans—and earning millions—by opening up noodle shops across mainland China
Taewoong Gets a Heavy Metal Boost - - Thanks to growth in China and sky-high oil prices, the Korean parts maker is winning big contracts and expecting more
Raffles' Designs for Asian Education - - An aggressive acquisition strategy and a generous dividend policy have helped the company become a darling of the Singapore bourse
China's oldest Peking duck chain listed on Shenzhen bourse - - China's oldest Peking duck restaurant chain, Quanjude (Group) Co., Ltd, became listed on Tuesday on the Shenzhen Stock Exchange, company sources said.
India gold imports seen at record levels - - India's gold imports in the current year are likely to be higher than in 2006 and could even rise to a record 800 tonnes as high sales in the first half and good demand for retail bullion may make up for poor sales during Diwali, a research house and a trade body said late on Monday.
India seeks OK for $8.5 bn extra spending - - India sought on Tuesday approval to spend an extra 332.91 billion rupees ($8.5 billion) in the year to March 2008, but said 214.21 billion rupees of that would come from savings by various ministries.
India Expects to Sign Trade Accord With Asean in May, Minister Nath Says - - India, Asia's third-largest economy, expects to sign a free-trade accord with the Association of Southeast Asian Nations in May, Commerce Minister Kamal Nath said, a day after Indonesia declared the deal was on hold.
Benchmark Indian Sensitive Index Declines; Infosys, Reliance Lead Fall - - India's Sensitive Index fell the most in more than two weeks, paced by Infosys Technologies Ltd., on renewed concern that losses tied to U.S. mortgages may pull the world's largest economy into recession.
Government Doesn't Plan Additional Curbs on Inflows of Overseas Capital - - India doesn't plan to impose more curbs on the inflows of overseas capital, which have driven the currency to the highest in almost a decade and the benchmark stock index to a record.
South Africa's Aspen to Buy Part of Strides Arcolab's Latin American Unit - - Aspen Pharmacare Holdings Ltd., the southern hemisphere's largest generic-drug maker, agreed to pay $152.5 million for half of Strides Arcolab Ltd.'s Latin America unit as governments push to get more medicines to poor nations.
Rupee Falls for Third Day as Stock Index Extends Loss; Inflows May Slow - - India's rupee fell for the third day on concern a decline in the nation's key stock index will prompt global investors to reduce investments in local assets.
Tuesday
China Demand to Boost Soybean, Palm Oil Prices After Farmers Planted Less - - China, the world's biggest vegetable oil consumer, will need to import more soybeans, palm oil and other oilseed products to meet growing demand after local farmers reduced plantings, a state-owned grain trader said.
Yuan Revaluation Would Kill China's Growth, Central Bank Adviser Fan Says - - A big Chinese currency revaluation would invite speculation and damage growth, said Fan Gang, a monetary policy adviser to the People's Bank of China.
China Shipping Container May Raise $2.4 Billion Selling Shares in Shanghai - - China Shipping Container Lines Co., Asia's second-largest cargo-box carrier, may raise as much as $2.4 billion selling shares in Shanghai to buy ships as the country's surging exports fuel sea-cargo traffic.
China's Loss Is Alcoa, Norsk's Gain as Aluminum Curbs May Boost Producers - - Aluminum producers, the laggards of the mining boom, may rise as China reduces sales onto the world market and buys more of the metal from overseas.
Focus Media Profit Rises 73% as GM, Apple Increase Spending on China Ads - - Focus Media Holding Ltd., China's largest publicly traded advertising company, said third-quarter profit rose 73 percent as General Motors Corp., Apple Inc. and other clients spent more to market their products in the nation.
China to conduct 2nd national economic census in 2008 - - China will conduct its second national economic census in 2008 to gather accurate data for scientific policy formation, the State Council said in a notice on Monday.
China property index hits new high in October - - An official reading of China's real estate sector rose for a seventh consecutive month in October to set yet another record, reflecting the country's continued investment in property.
Asean Steps Up China Free-Trade Talks as Deal With India Stalls on Tariffs - - The Association of Southeast Asian Nations is stepping up talks on free trade agreements with China after a similar accord with India was put on hold because of disagreements on tariff cuts.
Asian Stocks Fall for a Fourth Day on Concern U.S. Spending Will Decline - - Asian stocks fell for a fourth day. Mizuho Financial Group Inc. led banks lower after Goldman, Sachs & Co. told investors to sell shares of Citigroup Inc., renewing concern that losses tied to U.S. mortgages will increase.
Sri Lanka's Central Bank Keeps Key Rate Unchanged at Highest Level in Asia - - Sri Lanka's central bank kept its benchmark interest rate unchanged at the highest level in Asia after inflation accelerated to a nine-month high.
Ranbaxy May Sell 60% Stake in Drug Research Unit, Economic Times Reports - - Ranbaxy Laboratories Ltd. may sell as much as a 60 percent stake in its proposed research unit, the Economic Times reported citing Himadri Sen, the unit's president.
Rupee Falls for Second Day as India's Benchmark Stock Index Extends Loss - - India's rupee fell for the second day after the nation's benchmark stock index extended losses, stoking concern global funds will reduce investments in local assets.
Indian employees are highest tax payers - - Employees in India are the biggest contributors to the governments' coffers among their Asian peers on the basis of percentage of gross salary paid towards taxes and other payments such as social security contributions, according to a new study.
India's Communists and the Nuclear Deal - - The US-India civilian nuclear deal seems to be on again, thanks to a temporary reprieve from India’s Communist Party’s usual obstreperous stalling. The Communists are preoccupied with the events in Bengal, the state they rule with a majority, and with impunity. But their dual policy of obstructing American investments for India while encouraging them in Bengal, has caught them out at home.
Pumping Up the Profits in India - - Making pumps is an unfashionable business, but it has paid off for Kirloskar Brothers, No. 18 in BusinessWeek's ranking of Asia's Hot Growth Companies
Stocks Drop in Tokyo on U.S. Spending Outlook; Topix Set for Two-Year Low - - Japanese stocks fell for a third day, with the Topix set for its lowest close in two years.
Yen Trades Near 1 1/2 Year High Against the Dollar on Credit-Market Losses - - The yen traded near a 1 1/2-year high against the dollar as credit-market losses caused investors to sell higher-yielding assets funded by loans in Japan.
Boeing, Toray in Talks to Expand $6 Billion Dreamliner Carbon-Fiber Deal - - Boeing Co. is in talks with Japan's Toray Industries Inc. to expand a $6 billion contract to supply carbon-fiber sheets for the 787 Dreamliner, the U.S. planemaker's fastest-selling passenger jet.
Aozora, Former Cerberus Unit, Is in Talks for Alliance With Sumitomo Trust - - Aozora Bank Ltd., the Japanese bank bought and restored to health by U.S. buyout firm Cerberus Partners LP, and Sumitomo Trust & Banking Co. are in talks on a business alliance, both companies said.
Shinsei Bank Agrees to Offer Led by Investor J.C. Flowers to Buy 33% Stake - - A group led by buyout firm J.C. Flowers & Co. LLC is offering 202 billion yen ($1.8 billion) to take its stake in Shinsei Bank Ltd. to as much as 32.6 percent, after the lender lost about half of its market value this year.
Japan's trade levels with ASEAN on the decline, Economist reports - - Japan's importance as a trading partner with the Association of Southeast Asian Nations has declined significantly over the past seven years, reflecting a potentially worrisome trend away from competitiveness in the region, according to a report published last week.
Sony halves software fees to spur PS3 game designers - - Sony halved the fees it charges for a software development kit for the PlayStation 3 video game machine Monday to encourage outside designers to make more games for the struggling console.
Finance panel urges more belt-tightening - - An advisory panel to the finance minister urged the government Monday to stick to its belt-tightening policy to restore the government's debt-ridden finances as it compiles the budget for fiscal 2008.
Monday
Sinotrans Shipping Raises $1.5 Billion in Hong Kong, Bankers Familiar Say - - Sinotrans Shipping Ltd. priced the largest Chinese shipping initial public offering since at least 1999 at the top of a pricing range, raising HK$11.45 billion ($1.5 billion), said two bankers familiar with the sale.
Bank of China May Take $1 Billion Charge on Subprime Loans, Analyst Says - - Bank of China Ltd., the nation's third largest bank, may have to set aside 7.7 billion yuan ($1 billion) in provisions for U.S. subprime investments in the fourth quarter, according to Core Pacific-Yamaichi International Ltd.
China's Biggest Banks Seek Standard Chartered Stake, Financial Times Says - - China's three largest banks approached Temasek Holdings Pte about buying its 17 percent stake in Standard Chartered Plc, the Financial Times reported, citing unidentified people familiar with the matter.
Regulator `Guides' China Banks to Cool Loans Growth, Curb Overheating Risk - - China's banking regulator said it's giving ``guidance'' to banks to cool lending that's already topped its goal of 15 percent growth this year and threatens to overheat the world's fastest-growing major economy.
China Resources Profit Rises on Higher Sales From Retailing, `Snow' Beer - - China Resources Enterprises Ltd., the state-controlled retailer and brewer, said profit climbed 21 percent on higher sales from supermarkets, food processing and its ``Snow'' beer brand.
Baer Capital Plans $500 Million Fund for India Infrastructure, Real Estate - - Baer Capital Partners, a Dubai-based funds management company, plans to raise $500 million to invest in real estate and infrastructure in India, the world's fastest growing major economy after China.
Mitsui Is Hesitant to Invest in India Because of Inadequate Infrastructure - - Mitsui & Co. has been discouraged from investing in India because of the country's poor roads, ports and other infrastructure, said Gempachiro Aihara, the head of Asian operations at Japan's second-largest trading firm.
India May Have to Increase Petrol Prices, Policy Adviser Ahluwalia Says - - India may be forced to raise petrol prices if crude oil costs remain at current record levels, said Montek Singh Ahluwalia, a key economic policy adviser to Prime Minister Manmohan Singh.
State Bank of India Says Government in Final Stage of Approving Share Sale - - State Bank of India, the largest by assets, is close to getting approval from the government to raise funds from shareholders to expand lending.
Sri Lanka Central Bank May Leave Rates Unchanged at Highest Level in Asia - - Sri Lanka's central bank will probably keep its key interest rate unchanged at the highest level in Asia after inflation accelerated to a nine-month high.
Shares Drop on Concern Slower Chinese Lending Will Curb Demand for Exports - - Japanese stocks slipped, reversing earlier gains. Shares of machinery makers such as Komatsu Ltd. and trading houses slumped after China's regulators urged banks to cool lending until the end of the year.
Yen Rises as U.S. Housing Slump, Falling Stocks Cut Appeal of Carry Trades - - The yen rose against 15 of the 16 most-active currencies as a deepening U.S. housing slump prompted investors to cut purchases of higher-yielding assets funded by loans in Japan.
Government Notes Decline as Yields Near 20-Month Low Keep Investors Away - - Japan's government notes fell, halting two days of gains, as five-year yields near the lowest since March 2006 tempered demand for the relative safety of debt.
Central Japan Rail Shares Rise Most in Two Years After UBS Boosts Rating - - Central Japan Railway Co. rose by the most in almost two years in Tokyo trading after UBS AG raised its rating on the country's biggest operator of high-speed trains to ``buy'' from ``neutral.''
Meiji Dairies Shares Drop Most in 16 Months After Daiwa Cuts Stock Rating - - Meiji Dairies Corp., a Japanese maker of milk, ice cream and yogurt, fell the most in 16 months after Daiwa Institute cut its rating on the stock to ``underperform.''
Wii regains top U.S. video game slot - - Nintendo Co.'s Wii game console clinched the top slot from Microsoft Corp.'s Xbox 360 in October in terms of sales volume on the U.S. game console market, U.S. market research agency NPD said Thursday.
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