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News : Asia-Pacific Business Week

Last Updated: Jan 14th, 2008 - 06:52:38

Asia-Pacific Business News - - Week January 11, 2008: Asia battles with high food prices
By Finfacts Team
Jan 13, 2008, 03:36

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The World's Cheapest Car was launched this week in India.

Tata Motors, India's largest automobile company, with revenues of $ 7.2 billion in 2006-2007, on Thursday unveiled what it terms "The People's Car."

The world's cheapest car is a four-door and has a 624cc engine and a mileage of 23 km per litre.

Priced at Rs.100,000, or USD $2,500, it is the cheapest car in the world.

It is also seen as the realisation of a dream for Tata chairman, Ratan Tata, who has been instrumental in coming up with a car for the masses.

Speaking at the unveiling ceremony at the 9th Auto Expo in New Delhi, Ratan Tata said, “I observed families riding on two-wheelers – the father driving the scooter, his young kid standing in front of him, his wife seated behind him holding a little baby. It led me to wonder whether one could conceive of a safe, affordable, all-weather form of transport for such a family. Tata Motors’ engineers and designers gave their all for about four years to realise this goal.

Today, we indeed have a People’s Car, which is affordable and yet built to meet safety requirements and emission norms, to be fuel efficient and low on emissions. We are happy to present the People’s Car to India and we hope it brings the joy, pride and utility of owning a car to many families who need personal mobility.”

The Sydney Morning Herald reports that Goldman Sachs Group says there is a 50 per cent chance Japan will slip into recession and has cut its 2008 growth estimate for the world's second-largest economy.

"We estimate the probability of a recession in Japan has risen to the 'danger level'," Tetsufumi Yamakawa, Goldman's chief Japan economist, said in a report to clients on Thursday. "We project weaker-than-expected growth in Japan, especially in the first half of 2008, owing to an inevitable, moderate slowdown among emerging economies."

The deputy governor of the Bank of Japan, Toshiro Muto, said he expected the economy to keep slowing "for the time being".

Goldman said on Wednesday that the US economy was falling into recession.

Mr Yamakawa cut his 2008 growth estimate to 1 per cent from 1.2 per cent, and said the central bank might have to forgo raising rates this year.

Japan’s biggest chain of cheesecake restaurants has collapsed with huge debts as East Asian dairies try to cope with the soaring cost of milk.

The collapse of the Tokyo-based Cheese Cake Factory (CCF) chain makes it the first big victim of a predicament that analysts believe will get worse through 2008.

Buckling under 1.3 billion yen (£6 million) in debts, CCF was forced to close its doors because the price that it pays for cheese has almost doubled in a year.

Fearing similar hardships for its dairy companies, the Chinese Government yesterday ordered the country’s banks to extend credit terms for any milk producers that risk bankruptcy amid soaring prices of animal feed.

The Financial Times reports that China’s battle with inflation, which has soared to 11-year highs on the back of surging pork prices, has drawn the most attention until now. But what is being seen in Mumbai is being repeated across Asia as higher food prices and oil at $100 a barrel combine to present a crucial test of the ability of politicians and central bankers to manage inflation.

Asian consumers are confronting the fact that “food inflation has moved from being cyclical to being driven by structural factors”, says Glenn Maguire, Asia economist at Société Générale.

Among those factors, Mr Maguire says, is the shift in what used to be freak weather events to regular occurrences affecting crops, the westernisation of Asian eating habits, and stronger biofuel demand that has more than doubled the price of palm oil, a key cooking ingredient, in the past 18 months.

Others highlight flaws in the Asian agricultural sector that risk reducing productivity and fuelling inflation. Chetan Ahya, economist at Morgan Stanley, says the average growth in India’s agricultural output over the past five years has lagged behind population growth.

Finfacts Report: Global Food Price Inflation to continue in 2008 as US wheat stocks projected to fall to 60-year low; Asia high food demand growth to continue

Bloomberg News reports that Taiwan's opposition Kuomintang won a landslide victory in Saturday's parliamentary election, boosting its candidate Ma Ying-jeou's chances of winning the presidency in March.

The KMT, which favors closer links with China, won 81 of 113 seats in the new legislature, according to Taiwan's Central Election Commission, compared with 27 for the independence- leaning Democratic Progressive Party.

Ma, 57, leads his DPP rival Frank Hsieh, 61, in opinion polls for the March 22 election. The DPP's popularity has fallen amid President Chen Shui-bian's focus on the island's sovereignty and allegations of corruption against his family. The US and China, which considers Taiwan part of its territory, have also rebuked Chen for his pro-independence rhetoric.

The Worldwatch Institute says China’s surprise crackdown on plastic bags, announced on Tuesday, will prohibit the production and distribution of ultra-thin bags beginning June 1.

The ruling bans the manufacture, sale, and use of plastic bags under 0.025 millimeters thick and prohibits supermarkets and shops nationwide from handing out the sacks for free. With the move, China joins a growing list of regions, from San Francisco to South Africa, that are using taxes, bans, and other regulations to try to decrease the prevalence of the ubiquitous bags.

Some 4 to 5 trillion plastic bags—including large trash bags, thick shopping bags, and thin grocery bags—were produced globally in 2002, according to the Worldwatch Institute’s State of the World 2004 report. Roughly 80 percent of those bags were used in North America and Western Europe. Every year, Americans reportedly throw away 100 billion plastic grocery bags, which can clog drains, crowd landfills, and leave an unsightly blot on the landscape.

Australia's The Age newspaper says that the bad smell emanating from the Australian listed property trust sector in 2007 is likely to waft into 2008.

A year of atrocious results, including the spectacular fall of one of the market's favourites, retail property manager Centro, has shaken investors' faith in the sector entrusted with much of our superannuation money.

The property trust index has lost about a quarter of its value since November last year, and 13% overall for 2007. But Property Investment Research senior analyst Mark Wist says that it is not a time to panic about the viability of the industry.

"Yields are better now than they have been for quite some time and the index is trading around our fair value," Mr Wist said. "We are predicting a moderate, single-digit total return this year."

Economists and industry representatives contacted by Business Day were unanimous that Australian economic fundamentals were still sound and that tangible properties assets would continue to provide good returns.

The Wall Street Journal reports that Toyota Motor Corp. said 2007 sales that threaten to dethrone General Motors Corp. as the world's No. 1 auto maker for the year. But to stay there this year, it must take the fight to developing nations like China, India and Russia, where it trails rivals.

Toyota announced a 6% rise in global sales last year to 9.37 million vehicles, a bit more than GM's sales estimate of 9.3 million vehicles for 2007. GM has yet to release its actual sales figures for the year. But unless they come in higher than its estimate, Toyota will become the world's biggest auto maker for the year, dislodging GM from a title it has held for 76 years.

The Wall Street Journal also reports that Indian technology titan Infosys Technologies Ltd. is flush with cash and on the acquisition trail. But nailing down friendly deals is proving to be a tough task, according to its chief executive and managing director, S. Gopalakrishnan.

"[It's] hard to get everything aligned and satisfied," Mr. Gopalakrishnan said in an interview. "There are companies out there -- the only thing is they may not want to be acquired, or the valuation may be too high."

Mr. Gopalakrishnan's comments came as Infosys reported a better-than-expected 25% year-on-year increase in its fiscal-third-quarter net profit and increased its earnings forecast for the year ending March 31.

Infosys's performance and forecast could help moderate fears that a likely slowdown in the U.S. economy could hurt the company's revenue and profit -- and that of other big Indian tech outfits. Tech-industry analysts worry that a weaker global economy will increase pricing pressure on tech concerns, as U.S. companies cut their technology budgets. The rupee, which has appreciated 12% against the dollar since January 2007, also erodes the value of Infosys export revenue, which is mainly in dollars.

As India's second-largest tech and outsourcing company by revenue after Tata Consultancy Services Ltd., Infosys' earnings help set the tone for India's tech sector. Infosys's Bombay Stock Exchange-listed shares closed at 1,580.10 rupees ($40.32) Friday, down 1.4%.

FINFACTS REPORTS THIS WEEK RELATED TO ASIA-PACIFIC

European Commission analysis looks at the role of India in world agriculture
India is one of the fastest growing economies in the world today and among the world's leading agricultural producers and yet its trade flows are relatively small compared with other main players.

Bord Bia says Irish food and drink exports rose over 5% in 2007
Bord Bia, the Irish State food industry promotion agency, said today that Irish food and drink exports put in another excellent performance in 2007, rising by a further estimated €414 million to reach €8.62 billion. Exports to Asia account for 5% of total.

China's trade surplus surged 47.7% to reach a record $262.2 billion in 2007
China's trade surplus surged 47.7% over a year earlier to reach a record $262.2 billion in 2007, the General Administration of Customs said on Friday.

Global Economy to slow in 2008 but rebound likely as year unfolds; US likely to avoid recession
A difficult environment featuring continual credit market tensions and highly elevated oil prices should contribute to a slowdown in the global economy this year. However, a recession in the United States is likely to be avoided, while emerging market growth is seen as remaining strong, according to 2008 global economic and capital market forecasts published on Thursday by the Institute of International Finance, the industry body for the world's leading financial firms.

World Economic Forum report highlights Food Security as key emerging global risk of 21st century
The World Economic Forum on Wednesday released Global Risks 2008, which highlights the need for new thinking and concerted action on a number of problems.

Global Economic Prospects 2008: World Bank says Developing Countries to cushion Rich-Country slowdown in 2008
Resilience in developing economies is cushioning the current slowdown in the United States, with real GDP growth for developing countries expected to ease to 7.1 percent in 2008, while high-income countries are predicted to grow by a modest 2.2 percent, says the World Bank, in a report published today.

Internet-based technologies spark growth and improvement in Emerging Countries according to Economist Intelligence Unit report
Internet-based technologies are serving as a catalyst for economic growth and social advancement in the world’s developing economies, according to a paper released Monday, by the Economist Intelligence Unit.

ACCESS TO NEWS REPORTS FROM OTHER SOURCES

Friday

China Reports Slowing Expansion in Exports, Money Supply as Economy Cools - - China's trade surplus narrowed in December and money-supply growth dwindled, signaling that the fastest economic expansion in 13 years may have peaked.

Morgan Stanley Approached by TPG, J.C. Flowers for CICC Stake, People Say - - Morgan Stanley has been approached by TPG Inc., CV Starr & Co. and J.C. Flowers & Co. about potential bids for its 34.3 percent holding in China International Capital Corp., two people familiar with the matter said.

China's Securities Regulator to Encourage More Share Sales, Expand Markets - - China's securities regulator will encourage more companies to sell shares on domestic stock markets and increase the proportion of free float for traded companies after the benchmark index surged 162 percent last year.

Air China, China Eastern Airlines May Swap Shares in Alliance, People Say - - Air China Ltd. and China Eastern Airlines Corp. may swap shares in an alliance plan being prepared after Singapore Airlines Ltd. failed to buy a stake in China Eastern, said three people familiar with the negotiations.

Government to Allow Banks to Invest in Insurance Companies, Regulator Says - - China will allow domestic banks to invest in insurance companies, Yuan Li, assistant to the chairman of the insurance regulator, said.

Citigroup May Turn to Prince Alwaleed, China for Capital to Offset Losses - - Citigroup Inc., the U.S. bank facing an estimated $4.21 billion fourth-quarter loss, may get cash infusions from Saudi Prince Alwaleed bin Talal and the Chinese government to shore up capital.

Verizon Wins Permission to Operate Cable System Connecting U.S. to China - - Verizon Communications Inc., the second-biggest U.S. phone company, won permission to operate an underwater cable system that will connect the U.S. and mainland China.

China Stocks Gain for Fourth Straight Week; Minsheng Banking, Vanke Rise - - China's CSI 300 Index climbed for a third day, completing its fourth straight weekly gain. China Minsheng Banking Corp. and China Vanke Co. led financial shares higher on expectation a stronger yuan will spur demand for yuan- priced assets.

Mozilla Takes on Microsoft in China - - Internet Explorer has held a virtual monopoly on the mainland, home to 160 million Internet users. Now, Firefox is pushing for more market share

New Singapore Air Terminal Takes Off - - After months of systems testing and anticipation, Changi Airport's third air passenger terminal officially began operations Wednesday

Consultant: China's digital camera sales surge 30% in 2007 - - China's digital camera sales in 2007 surged 29.9 percent to hit 8.3 million sets in 2007, according to the estimates of the CCID Consulting, a leading market consultant.

China imports record 163 mln tons of crude oil in 2007 - - China's crude oil imports rose 12.4 percent in 2007 over the previous year to a new record of 163.17 million tonnes, according to customs figure.

ICICI Leads Syndication for Delhi Airport - - The bank is chosen for the first offshore long-term financing deal from India's airport sector. Delhi International seeks to raise $200 million

Infosys Says U.S. Banks Drive Profit Growth as Subprime Effect Unclear - - Infosys Technologies Ltd., India's second-largest computer services provider, said orders from banks, brokerages and insurance companies drove profit growth as the U.S. subprime collapse hasn't yet curbed earnings.

India Industrial Production Grew at Slowest Pace in 13 Months in November - - India's industrial production grew in November at the slowest pace in 13 months, making it more likely the central bank may soon end more than three years of interest rate increases.

India's Sugar Exports May Beat Forecast as Global Prices Rally, Group Says - - India may export more sugar than previously expected as mills in the world's second-biggest producer of the sweetener seek to benefit from a rally in prices to a one-year high.

Asian Stocks Drop to Three-Month Low This Week on Global Growth Concerns - - Asian stocks fell to the lowest in more than three months, led by Toyota Motor Corp. and Samsung Electronics Co., on concern the effects of a U.S. housing slump will spread and slow growth globally.

Hindustan Petroluem to Buy Fuels From Essar, Mangalore, Reducing Imports - - Hindustan Petroleum Corp. plans to buy fuels from Indian rivals Essar Oil Ltd. and Mangalore Refinery & Petrochemicals Ltd. to curb imports.

India's Inflation Rate Unchanged at 3.5 Percent in Week Ended December 29 - - India's inflation remained unchanged in the last week of December, holding below the central bank's 5 percent target for a seventh straight month and making further interest-rate increases less likely.

Reliance Communications Gets Additional Airwaves to Expand GSM Services - - India's telecommunications ministry allotted additional airwaves to Reliance Communications Ltd., the nation's second-largest wireless carrier, to expand a network based on global system for mobile communications, or GSM, technology, the company said.

Calyon Predicts 4 Percent Decline in Rupee by March as Export Growth Slows - - India's rupee may weaken more than 4 percent from near a decade high by March as slowing economic growth in the U.S. and Europe hurts exports, according to Calyon.

Yen Climbs as Traders Pare Carry Trades on Widening Credit-Market Losses - - The yen rose against 14 of the 16 most-active currencies as signs credit-market losses are worsening prompted investors to pare carry trades, in which they use funds from Japan to buy higher-yielding assets.

Japanese-Foreign Stock Exchange Joint Ventures May Be Allowed, Nikkei Says - - Japanese stock exchanges would be allowed to set up joint ventures with foreign bourses under an amendment to the financial product transaction law, proposed by Japan's Financial Services Agency, Nikkei English News reported.

Video Game Sales in Japan to Reach Record This Year, Square's Wada Says - - Japan's sales of video-game hardware and titles will rise to a record for the third year in 2008 on demand for software, said Yoichi Wada, president of Square Enix Co., the country's second-largest game publisher.

Underwhelming News for Nissan Investors - - Reports that the Japanese automaker and Chrysler are making a deal to build cars for each other helped to push Nissan's stock price even lower.

Nikon tops Canon in SLR market - - Nikon took the title of market leader in digital single-lens reflex cameras away from Canon for the first time ever in 2007, a private research agency said Thursday.

Toyota gives GM run for its money, selling 9.37 million cars - - Toyota Motor Corp. said Thursday that its global group sales rose 6 percent last year to 9.37 million vehicles, making for a tight race against General Motors, the world's biggest automaker.

Thursday

Cheung Kong Investors Seek $604 Million in Share Sale at 3.8% Discount - - Cheung Kong (Holdings) Ltd. shareholders are seeking HK$4.71 billion ($604 million) from selling stock in Hong Kong's second-biggest developer after the shares jumped 31 percent in the past six months.

Haitong Securities Profit Jumps Eightfold on Surging Trading Fees in China - - Haitong Securities Co., China's second-largest publicly traded brokerage, had an eightfold increase in profit last year as it traded more stocks and mutual fund units for clients.

Yunnan Aluminium Plans to Raise $138 Million in Share Sale to Fund Plants - - Yunnan Aluminium Co., China's fourth- largest producer of the light metal, said it plans to raise about 1 billion yuan ($138 million) selling shares to build two plants.

General Motors 2007 China Sales Rise 19% as Rising Affluence Spurs Demand - - General Motors Corp. said vehicle sales in China, the world's second largest auto market, jumped 19 percent last year as rising affluence spurred demand.

Copper Futures Fall in Shanghai on Speculation Gains Overdone; Zinc Lower - - Copper prices fell in Shanghai as some investors deemed yesterday's gains excessive after London Metal Exchange prices fell on renewed concerns that a slowdown in the global economy may crimp metals demand.

Credit Suisse Aims to Take 33.3% Stake of Founder China Securities Venture - - Credit Suisse Group, Switzerland's second-biggest bank, plans to take a 33.3 percent stake in a China securities venture, gaining access to a market that saw $65 billion of stock sales last year.

Yanzhou Coal Parent Wins Government Approval for Coal-to-Liquids Project - - Yankuang Group, China's fourth- biggest coal producer, won initial approval from the government to build a 10.1 billion yuan ($1.3 billion) coal-to-liquid fuels project in northwestern China.

ReneSola, Chinese Solar Company, Plans to Raise Up to $200 Million in IPO - - ReneSola Ltd., the world's largest recycler of scrap wafers used in solar panels, plans to raise as much as $200 million selling American depositary receipts for a listing on the New York Stock Exchange.

China vows to stabilize prices, prevent price hikes - - The Chinese government decided on Wednesday to take further measures to stabilize market prices and increase the severity of punishments for those guilty of driving up prices through hoarding or cheating.

New Fears for China's YouTube Wannabes - - Starting Jan. 31, any company showing online videos in China will need a license, and only state-owned or state-controlled outfits qualify

Swiss Re Buys Stake in Vietnamese Firm - - The global reinsurance company is acquiring a 25% stake in VinaRe, Vietnam's only reinsurance firm

Softbank Teams Up with China's Tsinghua University - - A new investment fund created by the two partners has been approved by Chinese regulators

Competition for Chinese IPOs Heats Up - - Hong Kong will maintain its competitiveness as a fund-raising platform for global capital in the next five years despite challenges from Shanghai and Shenzhen

Asian Banks Look to Smart Cards for Microfinance Boost - - The success of players such as Grameen Bank has spurred others in the region to expand their microfinance operations

Can China's Economy Withstand a U.S. Slowdown? - - Assuming economic troubles hit the U.S. alone, Beijing could be insulated by its increasingly diversified demand base, which includes Europe and Asia

Motorola Buys Singapore Music Company - - The handheld manufacturer will acquire digital music distributor Soundbuzz and will offer its service in India, Southeast Asia, Australia, and New Zealand

New Rivals for India's Top Auto Spot - - A new Japanese management team at Maruti Suzuki plans to keep its No. 1 place against rival Tata and other newcomers

Reliance Power Listing to Charge Up Indian IPOs - - The spin-off from Reliance Energy is expected to attract strong demand even though it has no plants in operation

Ford Revs Up in India - - The carmaker, looking to further exploit the fast-growing Asia market, has announced it will spend $500 million to boost production in Chennai

Indian Production Probably Slowed in November as Interest Rate Increased - - India's industrial production growth probably slowed in November as decade-high interest rates cut demand for factory-made goods.

Asian Stocks Fall for First Time in Three Days; Developers, Banks Decline - - Asian stocks fell for the first time in three days led by developers and banks on concern U.S. credit- market losses will spread.

ICICI Bank, Mahindra & Mahindra, Lupin, YES Bank: India's Stock Preview - - The following stocks may rise or fall in Mumbai today. Prices refer to yesterday's close. The preview includes news that broke after the markets shut. Stock symbols are in brackets after company names.

Asian Local-Currency Bond Trades Account for Half of Total, Greenwich Says - - Trading of bonds denominated in Asia's currencies rose last year to about a half of all debt transactions in the region, according to a report published by U.S. consultants Greenwich Associates.

Gold Rises for Third Day as Euro Climbs Against Dollar; Silver Advances - - Gold rose in Asia for a third day as the dollar's decline against the euro boosted the appeal of bullion as an alternative investment. Silver also gained.

Rupee May Fall on Speculation Reserve Bank of India Will Stem Advance - - India's rupee may decline for a second day on speculation the central bank will stem its advance to protect exporters after it climbed to the highest close in almost a decade this week.

China, India, Philippines, South Korea, Sri Lanka: 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 $96 After Falling on Gain in U.S. Fuel Stockpiles - - Crude oil traded near $96 a barrel in New York after falling yesterday on a bigger-than forecast jump in U.S. fuel supplies and speculation the nation's slowing economy will reduce demand.

Big Hopes for Korean Bank's New PC Credit Card - - A new credit card that supports both USB and wireless should be a hit with Asian consumers, who favor devices that can plug into PCs

Shares Fall After Credit Suisse Forecasts Selloff in Real-Estate Holdings - - Japanese stocks fell, led by real- estate companies, after Credit Suisse Group said U.S. subprime- mortgage losses may prompt overseas investors to sell their property holdings in Japan.

Yen Advances as Decline in Stocks Spurs Investors to Reduce Carry Trades - - The yen rose against 15 of the 16 most-actively traded currencies on speculation a decline in the nation's stocks spurred investors to cut holdings of higher- yielding assets funded with loans in Japan.

Government Bonds Advance as Slowdown in Europe, U.S. Clouds Export Outlook - - Japanese 10-year bonds advanced, sending yields to near the lowest in a month, on speculation cooling economic growth in Europe and the U.S. will undermine the nation's export-led expansion.

Goldman Cuts Japan Growth Estimate, Says Recession Risk at `Danger Level' - - Goldman Sachs Group said there's a 50 percent chance Japan will slip into recession and cut its 2008 growth estimate for the world's second-largest economy.

Matsushita Electric Will Change Name to Panasonic, Broadcaster NHK Says - - Matsushita Electric Industrial Co., the world's largest consumer electronics maker, will change its name to Panasonic, broadcaster NHK reported today, without saying where it got the information.

Takara Bio Shares Gain on Gene Research Plan With U.S. Cancer Institute - - Takara Bio Inc. rose the most in more than two months on the Tokyo Stock Exchange after the Japanese biopharmaceutical company said it will start gene therapy research with the U.S. National Cancer Institute.

Mitsubishi Rayon Drops for 6th Day as Mizuho Cuts Rating on Material Costs - - Mitsubishi Rayon Co., a Japanese synthetic-fiber maker, fell for a sixth day after Mizuho Securities Co. cut its rating on the company to ``reduce'' because of higher oil prices and raw material costs.

Tokyo Electron Leads Gains of Precision-Equipment Makers on Panel Demand - - Tokyo Electron Ltd. led gains in shares of precision-equipment makers after the company said orders beat its target, fueled by demand from flat-panel display manufacturers.

Sony's Blu-Ray Breakthrough - - Warner Bros.' decision to back the format makes buying a PS3 less of a gamble for gamers—and promises licensing fees in the future

Wednesday

China Eastern Slumps in Shanghai After Singapore Airlines Bid Is Rejected - - China Eastern Airlines Corp. fell to the lowest in almost two weeks in Shanghai after shareholders vetoed the sale of a stake to Singapore Airlines Ltd. and the carrier said it would oppose a combination with Air China Ltd.

Stock Index Gains in China; Metals, Zhongjin Gold Rise on Commodity Prices - - China's stocks gained, led by metal producers including Zhongjin Gold Corp., after commodities rose to records.

Yuan Is Near Highest Against Dollar Since Peg Scrapped Before Trade Report - - China's yuan held near the highest since a dollar peg was scrapped in 2005 before a report that economists say will show the nation's trade surplus rose to a record last year as exports surged. Bonds gained.

Gold Futures Jump in Shanghai Trading Debut, Corn Soars to 11-Year Record - - Gold and platinum jumped to a record, and corn rose to an 11-year peak as a weak dollar and rising energy costs increased investor demand for commodities as a hedge against inflation.

China Will Cap Prices of Energy, Daily Goods to Cool Inflation, Wen Says - - China will freeze price increases of oil products, natural gas and electricity in the near term to ease inflation, Premier Wen Jiabao said after a State Council meeting.

China's Trade Surplus Probably Rose as Exports Maintained Pace of Growth - - China's trade surplus probably swelled in December, surging to a record for the year, as the nation's export growth maintained momentum in the face of concern that some products are unsafe.

Ford's 2007 China Sales Rise 30 Percent on Demand for Focus Compact Cars - - Ford Motor Co., losing customers in its home market, boosted vehicle sales in China 30 percent last year, helped by demand for Focus compact cars.

Lenovo Falls Most in Six Years After Rising Costs Prompted CLSA Rating Cut - - Lenovo Group Ltd. fell the most in 14 months in Hong Kong after CLSA Ltd. slashed its price target on the stock and downgraded the rating to ``sell,'' citing rising costs and slowing sales growth.

China's gold futures jump to daily limit upon debut - - China gold futures trading made a strong debut in Shanghai on Wednesday, raising the city's prospects of becoming another key player in the world gold market.

Chrysler recalls Jeep models in China over brake flaws - - U.S. auto maker Chrysler is recalling 1,371 Jeep brand vehicles sold in China due to brake problems, the nation's product quality watchdog said.

China Eastern not to ally with Air China - - China Eastern Chairman Li Fenghua reiterated that the company will not merge or restructure with Air China under any circumstances, after a sales proposal to sell stakes to Singapore Airlines was rejected by 77.6 percent shareholders on Tuesday.

Indiabulls, Backed by Mittal, Targets Top 5 Slot in Indian Funds Industry - - Indiabulls Financial Services Ltd., backed by billionaire Lakshmi Mittal, predicts a planned fund management unit will rank among India's top five by 2010, seeking to replicate successes from broking to real estate.

GM Aims to Boost India Sales 50% This Year, May Build Local Engine Factory - - General Motors Corp., aiming to win 10 percent of India's vehicle market by 2010, expects sales in the country to gain 50 percent this year as economic growth lifts demand for automobiles in the country.

Sensex Rises; Infosys Technologies Leads Gains in Software Developers - - India's Sensitive Index rose for a fourth day. Infosys Technologies Ltd. led software developers higher on speculation earnings will beat analyst expectations.

Suzuki Unveils A-Star, Splash Cars in India, Planned for Export to Europe - - Suzuki Motor Corp., Japan's second- largest minicar maker, unveiled two new cars in India as part of its plan to use the country as an export hub for small cars.

Lockheed Starts India Unit to Win Fighter Jet Orders, Names Hartwick Chief - - Lockheed Martin Corp., the world's largest defense company, started a unit today in India, ahead of the government's plan to purchase $11 billion of fighter jets.

Volkswagen Targets Indian Sales of 110,000 Vehicles a Year as of Next Year - - Volkswagen AG, Europe's largest automaker, aims to boost car sales in India as it builds a factory and introduces new models.

Government Bonds Gain as Increased Cash at India's Banks May Boost Demand - - Indian bonds gained for a third day on speculation increased cash in the banking system will encourage investors to buy more debt.

Rupee May Decline on Speculation Central Bank Will Sell Local Currency - - India's rupee may decline, ending a four-day advance, on speculation the central bank will sell the currency to prevent gains from eroding exporters' earnings.

DoCoMo pulls plug on PHS service - - NTT DoCoMo Inc. ended its mobile phone service using the personal handy-phone system at midnight Monday due to a dearth of subscribers.

Yen Declines Most in Two Weeks as Japanese Investors Seek Higher Returns - - The yen fell the most against the dollar and euro in two weeks as Japanese investors increased purchases of higher-yielding currencies.

Shares Advance in Tokyo as Investors Judge Them Attractive After Losses - - Japanese stocks rose, reversing earlier declines, amid speculation a recent sell-off has made many shares attractive.

Five-Year Notes Advance as Slump in U.S. Stocks Sustains Demand for Debt - - Japan's five-year government bonds advanced on speculation a drop in U.S. stocks encouraged investors to seek the relative safety of fixed-income securities.

Matsushita Plans to Announce Increase in Production of Camera Chips `Soon' - - Matsushita Electric Industrial Co., the world's largest consumer electronics maker, said the company will ``soon'' announce an investment plan to increase its production capacity of chips used in digital cameras.

Tokyo Electron Third-Quarter Orders Exceed Its Target on Flat-Panel Demand - - Tokyo Electron Ltd., the world's second-largest supplier of semiconductor equipment, said third- quarter orders beat its target by 16 percent because of increased demand for flat-panel displays.

Suzuki Unveils A-Star, Splash Cars in India Planned for Export to Europe - - Suzuki Motor Corp., Japan's second- largest minicar maker, unveiled two new cars in India as part of its plan to use the country as an export hub for small cars.

NTT Will Cut Fiber-Optic Leasing Charges April 1 Amid Government Pressure - - Nippon Telegraph & Telephone Corp., Japan's former telephone monopoly, will cut leasing fees for its fiber-optic network for the first time in eight years amid government pressure aimed at spurring competition.

Platinum Climbs to a Record in Asia as Investors Seek Dollar Alternatives - - Platinum advanced to a record in Asia as investors bought the metal as an alternative to the dollar on speculation slowing U.S. economic growth will prompt the Fed to cut interest rates, weakening the appeal of the currency.

Sony BMG to sell music downloads without copy protection - - Sony BMG will start selling music downloads free of copy-protection safeguards later this month in North America, as the last holdout among the major record labels succumbed to the growing trend.

Sharp to bring forward expansion of LCD plant - - Sharp Corp. will increase in July the liquid crystal display production capacity of its Kameyama No. 2 plant in Mie Prefecture to 90,000 sheets a month from the current 60,000 to cope with growing demand, President Mikio Katayama said Tuesday.

Toshiba, Mitsubishi, Hitachi vying to build world's fastest lifts - - The race is on among Japanese manufacturers to develop the world's fastest elevators.

Monday/Tuesday

China Eastern Suspends Trading Before Vote on Stake Sale to Singapore Air - - China Eastern Airlines Corp., bidding to sell a stake to Singapore Airlines Ltd., halted trading in its stock before shareholders vote on the deal, which has been challenged by a potential offer from the parent of Air China Ltd.

Mongolian Government Reviewing Agreement for $3 Billion Mine, Ivanhoe Says - - Ivanhoe Mines Ltd. said the Mongolian government is reviewing a June agreement to develop a $3 billion copper and gold project with partner Rio Tinto Group, delaying final approval with construction due to start next year.

China's Textile Industry Turns Less Competitive on Labor, Material Costs - - China, the world's biggest textile producer, may become less of a force in the global garments trade as rising labor and raw material costs are eroding its dominant position, an industry executive said.

Billionaire Ho's SJM Will Sell 25% Stake in Hong Kong IPO, Document Says - - SJM Holdings Ltd., a Macau casino operator part-owned by billionaire Stanley Ho, plans to sell a 25 percent stake in a Hong Kong initial public offering, said a document sent to investors.

Chery Auto Approved to Make 150,000 Cars a Year in China With Israel Corp - - Chery Automobile Co., a Chinese maker of $5,000 compact cars, plans to build 150,000 sedans a year through a venture with a unit of Israel Corp. as it aims to boost margins by making larger and more profitable vehicles.

Yangtze Power's 2007 Profit Rises 47% to $732 Million on Higher Generation - - China Yangtze Power Co., operator of the world's largest hydropower project, said profit rose 47 percent last year on increased generation and investment income.

Yuan Weakens on Speculation China Is Seeking to Deter Currency Speculators - - China's yuan fell, slipping from the strongest since it scrapped a peg to the dollar in 2005, on speculation the central bank is seeking to deter investors betting on further gains.

Hong Kong Stocks Advance; China Merchants Leads Banks Higher on Earnings - - Hong Kong stocks gained, with China Merchants Bank Co. leading an advance among Chinese banks after saying its profit last year more than doubled.

China's toy exports grow rapidly in 1st 10 months of 2007 - - China exported 7.07 billion U.S. dollars worth of toys in the first 10 months of 2007, representing a growth of 20.1 percent over the same period of the previous year.

Tata Motors Bond-Default Risk Rises to Record on Jaguar, Land Rover Bid - - The risk of Tata Motors Ltd. defaulting on its bonds rose to a record on concern it would take on more debt to buy Ford Motor Co.'s Jaguar and Land Rover units.

India, Predicting $150 Oil, Woos Chevron, Exxon to Explore for Crude, Gas - - India, Asia's third-biggest oil consumer, wants deepwater experts Exxon Mobil Corp. and Chevron Corp. to explore for oil and gas in the nation, on concern prices may soar to $150 barrel, curbing record economic growth.

India's Benchmark Sensex to Reach 25,050 by Year-End, Citigroup Predicts - - India's key stock index may climb as high as 25,050 this year, a 23 percent advance, as earnings climb and a near-record pace of economic growth is maintained, Citigroup Inc. said.

Key Sensex 30 Index Crosses 21,000 Mark, Led by Reliance, Larsen & Toubro - - India's benchmark stock index, the Mumbai Stock Exchange Sensitive Index, rose 1.05 percent at 10:00 a.m.

Ford to Spend $500 Million in India to Make Small Cars, Take on GM, Suzuki - - Ford Motor Co., having lost its 76- year ranking as the second-largest carmaker in the U.S., will spend $500 million in India as it seeks growth in emerging markets.

Infosys, Tata Consultancy, Raised by Lehman on `Robust Orders,' Declines - - Tata Consultancy Services Ltd. and Infosys Technologies Ltd., India's two largest computer-services providers, were among companies upgraded by Lehman Brothers Inc. due to ``robust demand'' from the U.S. and Europe.

Indian Rupee Gains For Fourth Day as Stocks at Record Attract Global Funds - - India's rupee advanced for a fourth day as a rally in the benchmark stock index to a record raised expectations global funds will increase their local equity holdings.

Japan's domestic new vehicle sales slide to 35-year low - - Japan's domestic sales of new vehicles slid for the fourth year in a row to 3,433,829 units in 2007, marking a year on year decrease of 7.6 percent and reaching a new record low since 1972, the Japan Automobile Dealers Association said Monday.

Sony sold 1.2 million PS3s over North America holiday - - Sony said Monday it sold 1.2 million PlayStation 3 game machines in North America over the holidays, boosting the strength of its console's Blu-ray next-generation video format.

07 vehicle sales lowest in 35 years - - Vehicle sales in Japan fell in 2007 to their lowest level in 35 years as declining wages, high fuel costs and a shrinking population cut demand for automobiles, an industry association said Monday.

Yen Is Little Changed on Speculation BOJ's Fukui Will Signal Rates on Hold - - The yen declined against 15 of the 16 most-active currencies on speculation Bank of Japan Governor Toshihiko Fukui will today signal plans to delay raising interest rates, the lowest among major economies.

Shares Climb in Tokyo for First Time This Year; NTT DoCoMo, Mizuho Rise - - Japanese shares rallied from early losses to close higher for the first time this year as investors bet on companies that will be insulated from a global economic slowdown.

Buy Japan's 10-Year Bonds on BOJ Rate Cut Outlook, Sumitomo Mitsui Says - - Investors should buy Japan's 10-year government bonds as the Bank of Japan will probably cut interest rates, pushing yields to the lowest in four years, according to Sumitomo Mitsui Banking Corp.

JPMorgan Pushes Back Timing of Expected BOJ Rate Raise to Fourth Quarter - - The Bank of Japan will refrain from raising interest rates until the fourth quarter as economic growth slows, according to Masaaki Kanno, chief economist at JPMorgan Securities Japan Co.

Matsushita Electric to Sell YouTube Internet TVs in U.S. From This Spring - - Matsushita Electric Industrial Co. will sell televisions in the U.S. that can access Google Inc.'s YouTube, riding on the popularity of a site where more than 100 million videos are viewed daily.

TDK Predicts Profitability Will Rise to Highest Since 1985 on Acquisitions - - TDK Corp., the world's biggest maker of magnetic heads that read data in disk drives, plans to raise profitability to the highest in more than two decades after acquisitions bolstered its array of electronic components.

Best Denki Gains on Report Rival Electronic Retailer Edion May Raise Stake - - Best Denki Co. rose the most in seven weeks in Tokyo trading after a report rival Edion Corp., operator of Japan's second-largest electronics chain, may increase its stake in the retailer.

Paramount Pictures Denies Report It Will Abandon Toshiba's HD DVD Format - - Viacom Inc.'s Paramount Pictures denied a newspaper report that the studio is poised to follow Time Warner Inc. in abandoning Toshiba Corp.'s HD DVD technology.