Asia-Pacific Business Week
Asia-Pacific Business News - - Week September 14, 2007
By Finfacts Team
Sep 15, 2007, 06:04

Shanghai World Financial Center, built by Japan's Mori Group, is a 101 story mixed-use vertical city strategically located in the heart of Pudong’s Lujiazui district, an area that has emerged as China’s commercial and financial capital. Within the district’s modern urban infrastructure you will find the Shanghai Stock and Futures Exchanges, the offices of first-tier Chinese and multinational companies, and five-star hotels all just minutes away from luxury apartments, numerous shopping centers, and a European style riverside promenade that offers picturesque night-views of the Bund. China Daily says that the Chinese mainland's tallest building is setting an altitude record for pre-completion rents.  Shanghai World Financial Center managers are asking future tenants to pay between $1.70 and $1.96 U.S. dollars per square meter per day for space in the tower.  The high end of the range is 40 percent more than Shanghai's previous record, which was set months ago by Park Place, an upscale development in downtown Jing'an Temple area. Rents there averaged $1.40 dollars per square meter per day. The developer said two big Japanese banks and at least three other companies have agreed to lease space, while it is in negotiation with a number of global investment banks and other companies. Officials had said that the rent for leases are being offered at $3 per square meter per day. Mori said on Thursday that it will sell a 10% stake in the $1 billion project to investment bank Morgan Stanley.

The big news from Asia this week was the sudden resignation of Japan's Prime Minister Shinzo Abe and his subsequent hospitalisation following an apparent nervous breakdown.

Japan's next prime minister is expected to be Yasuo Fukuda, a veteran politician who supports tight fiscal policies and letting central bankers manage monetary policy without political interference.

Two days after Abe abruptly announced his resignation in his twelfth month in office, Japan's ruling Liberal Democratic Party on Friday launched a 10-day campaign period to choose its next leader. Fukuda managed to secure a big lead immediately.

The 71-year-old Fukuda outflanked his opponent, Taro Aso, by winning support from the three major LDP factions. In total, Fukuda appeared to have secured more than 230 party votes by Friday evening from the total of 528 LDP members who will take part in the vote on Sept. 23th, leaving him just 40 votes short of victory.

The electorate comprises 387 Diet members--304 from the House of Representatives and 83 from the House of Councillors--and 141 prefectural chapter representatives--three each from individual chapters.

Fukuda supported the appointment of the Bank of Japan's current governor Toshihiko Fukui who is eager to raise Japan's key benchmark rate from its current level of 0.5% - however, the contraction of Japan's economy in Q2 2007, makes the prospect of an early rise unlikely.

Yasuo Fukuda served as Chief Cabinet Secretary in a cabinet of Junichiro Koizumi who served as Prime Minister of Japan from 2001 to 2006.

In Australia, Prime Minister John Howard re-affirmed his intention to fight the December general election despite the current popularity of the resurgent Labour Party under their new leader, former diplomat Kevin Rudd, and the leaking of news that the majority of Howard's ministers' desire for him to quit. Howard has been PM since 1996.

Columnist Alan Ramsey wrote in The Sydney Morning Herald: 

In the 1979 Monty Python classic Life of Brian, there is the wonderfully zany scene where soldiers of the "Judean People's Front" march over the hill to where Brian of Nazareth is strapped on a cross and commit mass suicide at his feet with the dying declaration: "That showed 'em." Brian can only exclaim: "You silly sods." A political friend emailed on Wednesday: "Is it me or isn't there an exact parallel with the Howard cabinet?"

No, but getting close.

Even better is the scene where a group of Judean citizens, led by John Cleese, stand before Brian on the cross and read a proclamation lauding his "martyrdom" in "the struggle" against the Romans before saluting him and singing a single verse of For He's a Jolly Good Fellow. A shocked Brian, having expected them to rescue him, can only exclaim, repeatedly, as they march off: "You bastards!"  More.

China Daily reports that China's central bank raised interest rates for the fifth time this year on Friday in an apparent bid to rein in rising food prices, excessive bank lending, and prevent bubbles in the heated property and stock markets from growing.

The People's Bank of China, the central bank, raised the one-year benchmark deposit rate by 27 basis points to 3.87 percent and the one-year lending rate by the same amount to 7.29 percent, effective from September 15, said a statement on the bank's website.

It is the second interest rate hike in less than a month taken by China's central bank, as the country is trying to contain soaring inflation that reached 6.5 percent in August, the fastest increase in a decade. The last interest rate hike was on August 21.

"The move was predictable," BNP Paribas Peregrine Securities chief economist Chen Xingdong said. "Over the past months, the central bank has been trying to check the rising prices of consumer products, which now is the biggest concern of the government."

The rising consumer price index is being driven mostly by food staples such as pork, beef, and eggs but the world financial market analysts are watching closely to see whether the rising inflation will spill over into other sectors, such as manufactured goods, in which China has helped slow the rate of price rises in the world market.

As well as raising interest rates, the central bank has lifted seven times this year the amount that banks must hold with it -- the so-called reserve requirement ratio.

Most recently, on September 6, it said that the ratio would be raised by another 50 basic points to 12.5 percent of each commercial banks' deposits.

The supply of money grew 18.09 percent in August, exceeding the central bank's annual target of 16 percent for the seventh consecutive month. And urban fixed-assets investment rose 26.7 percent in the first eight months of the year.

Chinese central bankers and economists are especially worried about the excessive liquidity in the Chinese economy, which is further fed by a rising foreign trade surplus.

Chinese Economy Reports

Also on Friday, China said it may take a case against the US to the World Trade Organisation in relation to the imposing anti-subsidy duties on its paper exports, in only the second dispute it has brought since joining the WTO in 2001.

The US broke a 23-year precedent by imposing so-called “countervailing duties” on exports from what it classifies as a "non-market economy."

The US said tax breaks and low-cost loans from China were unfairly helping exports of coated paper.

It also said China was dumping – selling at a lower price in the US than at home.

There is a fear that imposing countervailing import duties against China could open the floodgates to a new wave of protection and litigation.

China said the US had failed to show how much its government subsidy programme helped exports, a requirement before imposing duties under WTO rules.

The US must now begin a consultation with China and either withdraw the duties or prepare for a case at the WTO’s dispute settlement panel, which has the power to order retaliatory sanctions.

Rising salaries for Indian software professionals is adding cost pressures at technology outsourcing companies in India, according to a survey published this week, which showed that wages rose an average of 18.7 per cent this year.

The average annual salary for a software worker in India has risen to Rs620,000 ($15,500), according to a nationwide survey of employees by IDC India for technology magazine Dataquest. The rise is slightly above the 18.3 per cent salary increases recorded last year.

Adding to cost pressures, the rupee has gained almost 10 percent this year to near 10-year highs against the dollar.

Indian IT groups such as Tata Consultancy, Infosys, Wipro, Satyam and smaller companies are stepping up acquisitions and opening more facilities closer to US and European clients to cut costs -- the reason why work was farmed out to India in the first place.

This week Wipro opened a facility in the Mexican city of Monterrey to service American and European clients and Satyam launched a software centre in MSC Malaysia, a government-designated high-tech zone.

India’s IT industry is however still growing at a rapid pace. In the last fiscal year alone, revenues jumped 30.7 per cent, according to industry group National Association of Software and Services Companies (Nasscom). Revenues are forecast to reach $50bn this fiscal year.

To keep up with demand, companies are hiring tens of thousands of workers. TCS, the largest outsourcing firm, hired 32,500 employees alone last year and expects to recruit similar numbers this year.

IT companies are taking steps to offset the impact of rising salaries and rupee appreciation, such as hiring science graduates over more expensive engineering graduates. IDC says some groups are trying six-day weeks.

The new survey also shows that foreign companies with outsourcing operations in India pay the highest salaries. Cadence, Sun Microsystems and Honeywell Technologies headed the list.

High salaries, however, do not necessarily correlate with employee satisfaction, according to the IDC survey. While TCS ranks fourth in “satisfaction with salary”, it is 13th in average salary. Infosys ranked 12th in salary but 28th in “satisfaction with salary”.

Top IT Companies in India

As a result of rising income and a swelling middle class, India’s per capita income has doubled over the past 20 years. With population growth of about 1.6% per annum and Gross Domestic Product (GDP), growth of 9% per annum, the per capita income is expected to quadruple by the year 2020.

Despite real estate witnessing boom in last couple of years with 90% of home loans borrowers being the first timers, home loans GDP ratio in India continues to be at meager 5% as against 50% in US and UK and therefore suggested that it be more than  doubled in budget proposals for 2008-09.

Above observations are made by the Associated Chambers of Commerce and Industry of India (ASSOCHAM), pointing out that since buying a home requires huge investment, especially for first time buyers, higher home loan GDP ratio is necessary as 90% of borrowers are the first time borrowers.

As such, high interest rates coupled with soaring property prices have only impacted the affordability of buyers, demand, however continues to persist and will become stronger and more intense in near future.

India’s middle class is expected to expand by more than 10 times from its current size of 50 million to 583 million people in next 18 years.

A report on Thursday from CB Richard Ellis on the commercial property market in Asia-Pacific in H1 2007, says that robust demand outstripping tight availability and rental appreciation continued to be the dominant characteristics of Asia’s major office markets during the second quarter of 2007. However, rental rates showed signs of rising at a slower pace in a number of regional commercial hubs as potential tenants have begun to resist the rapid rent escalations of the past few years.

Increasingly, companies are accepting secondary business districts in order to find more economical space alternatives. While huge demand from Multi-National Corporations continued in China’s markets, rental growth in leading Chinese cities remained steady amid supply peaks that will persist over the short-to-medium term. India presents a different picture, with the continued supply drought in major central business districts driving further increases in rentals. 

FINFACTS REPORTS THIS WEEK RELATED TO ASIA-PACIFIC

China raises key interest rate to 7.29%; Spending on factories, equipment and property climbed 26.7% in the first 8 months of 2007
China's State news agency Xinhua reported Friday that investment in fixed assets in China's economy rose 26.7 percent year-on-year in the first eight months, according to data published by the National Bureau of Statistics (NBS).

PC Market Outlook remains strong as the shift to Emerging Regions accelerates
Worldwide PC shipments are projected to rise by 12.6% in 2007 to 257.5 million units, according to US IT research firm IDC's Worldwide Quarterly PC Tracker.

Forest countries seek carbon credits; World's most polluted places named
Eight countries with the largest tropical forests have agreed to push for their protection to be made eligible for carbon credits. In related news, this week the Top Ten list of the world's most severely polluted places, were named.

Wheat price falls from record high as US stocks forecast to plunge to 33-year low
The US Department of Agriculture on Wednesday said strong worldwide demand for wheat will result in US stocks falling to the lowest level in 33 years.

Japan's Prime Minister Shinzo Abe resigns in his twelfth month in office; Nikkei 225 falls after initial jump of 1%
Shinzo Abe announced Wednesday  that he will resign as Japanese Prime Minister, following twelve months of weak leadership and political scandals.

Global Manpower Employment Outlook Survey reveals strong hiring plans ahead for Japan, Germany, India, Sweden and Australia; Optimism among Irish employers fell
According to the Manpower Employment Outlook Survey released today, fourth-quarter hiring expectations are mostly positive, but with varying degrees of optimism across the 27 countries and territories surveyed.

Japan's economy shrank at a 1.2% annual rate in Q2 2007; Asian stocks fall
Japan's economy shrank at a 1.2 percent annual rate in the three months ended June 30th as business capital spending plunged, the Cabinet Office said in Tokyo today.

Economist Pocket World in Figures 2008: Quality of life best in cold Norway and Iceland - Ireland 4th and Japan 7th where domestic car sales have hit 30-year low and high level of anxiety about daily lives is at 40-year high
Ireland's quality of life is ranked fourth best in the world, after Norway, Iceland and Australia. And our standard of living stands at sixth in the world, in the wake of Luxembourg, Bermuda, Norway, Iceland and Switzerland.

ACCESS TO NEW REPORTS FROM OTHER SOURCES

China raises key interest rate to 7.29%; Spending on factories, equipment and property climbed 26.7% in the first 8 months of 2007
China's State news agency Xinhua reported Friday that investment in fixed assets in China's economy rose 26.7 percent year-on-year in the first eight months, according to data published by the National Bureau of Statistics (NBS).

PC Market Outlook remains strong as the shift to Emerging Regions accelerates
Worldwide PC shipments are projected to rise by 12.6% in 2007 to 257.5 million units, according to US IT research firm IDC's Worldwide Quarterly PC Tracker.

Forest countries seek carbon credits; World's most polluted places named
Eight countries with the largest tropical forests have agreed to push for their protection to be made eligible for carbon credits. In related news, this week the Top Ten list of the world's most severely polluted places, were named.

Wheat price falls from record high as US stocks forecast to plunge to 33-year low
The US Department of Agriculture on Wednesday said strong worldwide demand for wheat will result in US stocks falling to the lowest level in 33 years.

Japan's Prime Minister Shinzo Abe resigns in his twelfth month in office; Nikkei 225 falls after initial jump of 1%
Shinzo Abe announced Wednesday  that he will resign as Japanese Prime Minister, following twelve months of weak leadership and political scandals.

Global Manpower Employment Outlook Survey reveals strong hiring plans ahead for Japan, Germany, India, Sweden and Australia; Optimism among Irish employers fell
According to the Manpower Employment Outlook Survey released today, fourth-quarter hiring expectations are mostly positive, but with varying degrees of optimism across the 27 countries and territories surveyed.

Japan's economy shrank at a 1.2% annual rate in Q2 2007; Asian stocks fall
Japan's economy shrank at a 1.2 percent annual rate in the three months ended June 30th as business capital spending plunged, the Cabinet Office said in Tokyo today.

Economist Pocket World in Figures 2008: Quality of life best in cold Norway and Iceland - Ireland 4th and Japan 7th where domestic car sales have hit 30-year low and high level of anxiety about daily lives is at 40-year high
Ireland's quality of life is ranked fourth best in the world, after Norway, Iceland and Australia. And our standard of living stands at sixth in the world, in the wake of Luxembourg, Bermuda, Norway, Iceland and Switzerland.

ACCESS TO NEW REPORTS FROM OTHER SOURCES

Friday

China: The Latest Interest Rate Hike - - The fifth increase this year sends a strong signal to markets that Beijing is willing to take more aggressive action to slow down inflation

India's Cell-Phone Ride Out of Poverty  - - Struggling artisans and tradespeople in rural India are finding that mobile phones are their ticket to better sales and better lives

Sony shows off new Blu-ray disc recorders - - Sony Corp. has announced it will start selling four new Blu-ray disc recorders to augment its lineup of DVD players in Japan, stepping up the battle in next-generation video formats.

Toyota plans ¥100 billion domestic assembly plant - - Toyota Motor Corp. plans to build a new automobile-assembly plant in Japan to keep pace with strong global demand and create surplus output capacity to allow renewal of old production lines at some existing domestic plants, sources said Friday.

Hong Kong's GDP up 6.9% in second quarter - - Hong Kong's Gross Domestic Product (GDP) increased 6.9 percent in real terms for the second quarter year on year, while its Gross National Product (GNP) rose 10.8 in real terms, according to statistics released Friday by the Hong Kong Census and Statistics Department.

Shanghai skyscraper sets record for sky-high rents - - The Chinese mainland's tallest building is setting an altitude record for pre-completion rents.

Baidu starts online video ad service - - Baidu, China's dominant search engine, yesterday launched "Baidu TV," an online video advertising service, expecting it to be a new profit driver to help widen the gap with its rivals, Chinese versions of Google and Yahoo.

China's Central Bank Raises Rates for Fifth Time This Year to Cool Economy  - - China raised interest rates for the fifth time since March to curb the fastest inflation since 1996 and damp speculation in stocks and real estate.

Paulson Warns Congress Approving China Sanctions May Provoke a `Trade War'  - - Treasury Secretary Henry Paulson warned Congress against approving sanctions on Chinese goods, saying a trade war would cripple growth during a vulnerable time for the U.S. economy.

Trichet, Lagarde Urge China, Japan to Allow Their Currencies to Strengthen  - - European Central Bank President Jean-Claude Trichet and French Finance Minister Christine Lagarde urged Asian governments to let their currencies appreciate more to close disparities in global trade.

Dah Chong Hong Initial Offer May Raise HK$4.3 Billion, Citic Pacific Says  - - Dah Chong Hong Holdings Ltd., a Hong Kong-based automobile and food distributor, and parent Citic Pacific Ltd. may raise as much as HK$4.3 billion ($552 million) in net proceeds from an initial public offering of the unit.

China Oriental's Chen Extends Deadline for Buyout Offer for a Second Time  - - Chen Ningning, the Chinese millionaire seeking to buyout steelmaker China Oriental Group Co., extended the deadline of her offer for a second time and raised her bid for shares she doesn't already own.

Chinese stocks close higher for third straight day - - Chinese stocks closed slightly higher for a third straight day on Friday led by steel and cement.

China to raise benchmark interest rate by 27 basis points - - China will raise the one-year deposit and loan interest rates by 27 basis points to 3.87 percent and 7.29 percent respectively from Sep. 15, the central bank announced on Friday.

China lodges WTO complaint over U.S. probes into Chinese coated paper - - China has requested WTO dispute settlement consultations with the United States over its treatment of Chinese coated paper, the Ministry of Commerce (MOC) announced on Friday.

Suzuki Indonesia recalls over 14,000 cars - - PT Indomobil Suzuki International, the Indonesian branch of Japanese car-maker Suzuki, plans to recall 14,452 cars in Indonesia due to mechanical problem in the transmission system, local press said Friday.

Sri Lanka's Cabraal Lowers 2007 Growth Forecast on Asia's Highest Rates  - - Sri Lanka's economy, constrained by the highest interest rates in Asia and renewed violence in the island's civil war, will post slower growth this year, central bank Governor Nivard Cabraal said.

IVRCL Expects Profit to Surge as India Raises Spending on Roads, Tunnels  - - IVRCL Infrastructures & Projects Ltd., bidding to build a tunnel in the Himalayas on the world's second-highest road for cars and trucks, said full-year profit may rise 40 percent as India increases spending on public works.

Citigroup to Raise $1 Billion for India Infrastructure Fund By Next Month  - - Citigroup Inc., partnering Blackstone Group LP in an infrastructure fund in India, expects to raise $1 billion to build roads, ports and utilities by next month, after a delay in setting up the fund.

Power Grid Raises the Maximum 29.8 Billion Rupees Sought in Initial Sale  - - Power Grid Corp., India's biggest power transmission company, raised 29.8 billion rupees ($737 million), the maximum sought in an initial share sale, tapping demand for electricity utilities.

Inflation in India Slows to Two-Year Low, Easing Pressure for Higher Rates  - - India's inflation slowed to a two- year low, adding to optimism the central bank may not immediately increase borrowing costs.

Dollar Little Changed Against the Euro Before U.S. Interest-Rate Meeting  - - The dollar was little changed versus the euro before next week's Federal Reserve meeting as traders prepared for the U.S. central bank to cut benchmark interest rates by at least 0.25 percentage point.

Central Bank May Keep Rate Unchanged After Economy Shrinks, Abe Resigns  - - The Bank of Japan will probably keep interest rates unchanged next week after Prime Minister Shinzo Abe resigned and the economy shrank in the second quarter.

Trichet, Lagarde Urge China, Japan to Allow Their Currencies to Strengthen  - - European Central Bank President Jean-Claude Trichet and French Finance Minister Christine Lagarde urged Asian governments to let their currencies appreciate more to close disparities in global trade.

Shares Climb the Most in Two Weeks; Mizuho, Banks, Canon Lead Advances  - - Japanese stocks rose by the most in two weeks, led by lenders, as concern eased that the U.S. subprime mortgage fallout will create ongoing turmoil in credit markets.

Japanese Bonds Complete Weekly Gain on Concern Economic Growth Will Slow  - - Japan's 10-year bonds completed the biggest weekly gain in a month as speculation global economic growth will slow boosted demand for the relative safety of government debt.

Thursday

Japan's Prime Minister Resigns - - Slumping approval ratings, a gaffe-prone Cabinet, and missing pension data help oust Shinzo Abe, but the impact on business looks benign

Aso, Abe's Likely Heir, Faces Sagging Japanese Economy, Emboldened Foes  - - Taro Aso, the favorite to replace Shinzo Abe as Japan's next prime minister, would inherit a sagging economy, a ruling party losing favor with citizens and an opposition determined to consign him to the same fate as his predecessor.

Nikkei, Topix Advance After Crude Oil Rises to Record High, Yen Weakens  - - Japanese stocks rose, led by commodity-related companies after oil prices climbed to a record. Sumitomo Corp. led gains by trading companies.

Dollar Trades Near Record Low Versus Euro on Slowing U.S. Economic Growth  - - The dollar traded near an all-time low versus the euro on signs the U.S. economic growth is slowing, suggesting the interest-rate advantage over Europe will narrow.

Japan's Five-Year Government Notes Decline as Low Yields Deter Investors  - - Japanese five-year government notes fell as yields near the lowest since March 2006 and gains in stocks deterred investors from buying.

Mandarake, Anime Companies Gain on Leadership Hopes of Comic Fan Taro Aso  - - Mandarake Inc. and other animation- related shares surged in afternoon trading in Tokyo on speculation that comic book fan Taro Aso would succeed Shinzo Abe as Japan's next prime minister.

Stocks fall on Abe's decision to step down - - Stock prices closed lower Wednesday following Prime Minister Shinzo Abe's surprise announcement of his decision to resign.

Consumer sentiment at 32-month low - - Consumer confidence across Japan fell for the fourth straight month in August to a 32-month low, the Cabinet Office said Wednesday.

Corporate failures see rise of 2.9% - - The number of corporate bankruptcies climbed 2.9 percent year on year to 1,203 in August, up for the fifth straight month, a private research agency said Wednesday.

Mobis: Hitched to Hyundai's Wagon  - - The fast-growing Korean auto parts maker is looking to new kit-parts business and maintenance for old Hyundais for future expansion

China to grow at 11.3% in 2007: World Bank - - China's economy will grow 11.3 per cent this year, the World Bank forecast on Wednesday even as it suggested more fiscal and structural policy measures to rebalance it.

WB projects China's GDP growth rate at 11.3% for 2007 - - China's gross domestic product (GDP) is expected to grow by 11.3 percent in 2007, said the World Bank (WB) in its quarterly report on China released on Wednesday.

China Carves Niche in Pharma Outsourcing - - In drug discovery services for global Big Pharma, the mainland has the potential to thrive like India has in software outsourcing

China says toys recalled by Mattel safe, despite some failing U.S. standards - - Chinese product safety authorities said here Wednesday the latest lab tests in China have shown that toys recalled by Mattel Inc. for a third time are up to the Chinese and European standards and are safe for children around the world.

U.S., China agree to improve safety of consumer products - - U.S. and Chinese officials on Tuesday announced an agreement aimed at strengthening cooperation and improving safety of consumer products.

House prices in major Chinese cities up 8.2% in August - - House prices in 70 large and medium-sized Chinese cities were up 8.2 percent in August compared with last year, as the rising trend continues to show no sign of stopping, according to latest statistics released on Wednesday.

Soaring food costs could derail China's growth, fan unrest - - Chinese inflation is at a 10-year high and what do economists expect officials in Beijing to do? Raise interest rates a little.

Guangzhou Hong-Yu May Raise About $1 Billion in IPO, People Familiar Say  - - Guangzhou Hong-Yu Group, developer of the Star River residential projects in Guangzhou and Beijing, may raise at least $1 billion in an initial public offering in Hong Kong next year, three people familiar with the plan said.

Alcoa May Raise Up to $2.08 Billion Selling Chalco Shares, Term Sheet Says  - - Alcoa Inc., the world's second- largest aluminum company, is selling its stake in Aluminum Corp. of China Ltd. for as much as $2.1 billion, after the Hong Kong- traded stock rose almost 15-fold in the past six years.

Mattel's Eckert Blames Contractors for Recalls of Painted Toys From China  - - Mattel Inc. Chairman Robert Eckert blamed the company's contractors for a spate of recalls of Chinese-made products and told a congressional panel the toymaker has taken steps to prevent further incidents.

China to Let Banks, Insurers Buy Corporate Debt, Securities Watchdog Says  - - China will let banks trade corporate bonds of publicly traded companies on both the interbank market and the securities exchange, the regulator said.

China Consumer Products Face Increased Safety Scrutiny From European Union  - - The European Union will take ``any necessary measures'' to protect the region's 490 million people from potentially dangerous consumer products made in China, EU consumer-protection commissioner Meglena Kuneva said.

The New 2008 Cars - - Struggling automakers hope their 2008 offerings will lure buyers back to the showrooms—but only some models will be hits

Poor manufacturing hits industrial growth - - The country's industrial output growth slowed down to 7.1 per cent in July this year from 13.2 per cent in the same month a year ago as higher interest rates forced consumers to cut spending on household items and automobiles, adversely affecting the manufacturing sector.

GDP growth for '07 to be 9%: Rangarajan - - The country's GDP growth rate for the year would be about nine per cent, a top government official said on Wednesday.

India growth story charms Nokia-land - - The sixth happiest nation in the world -- Finland -- is trying to make the most of the India growth story by hard-selling itself as an investor and an investment destination.

India Caps Natural Gas Price, Thwarting Development by Reliance, Explorers  - - India's government is capping natural gas prices as drilling costs soar worldwide, thwarting development of local resources by explorers such as Reliance Industries Ltd. and forcing utilities to seek overseas supplies.

India's Industrial Production Grows at Slowest Pace in Nine Months in July  - - India's industrial production grew at the slowest pace in nine months in July, easing pressure on the central bank to raise interest rates from a five-year high.

State Bank of India Plans $2.5 Billion Share Sale to Meet Credit Demand  - - State Bank of India, the nation's biggest, plans to raise 100 billion rupees ($2.5 billion) in a share sale this year, Chairman Om Prakash Bhatt said.

Wheat Price Rises to Record $9 a Bushel as Stockpiles Approach 26-Year Low  - - Wheat surpassed $9 a bushel for the first time as a drought in Australia and Canada cut production, pushing global stockpiles toward a 26-year low.

India's Sensitive Index Declines, Led by ICICI Bank, on Industry Output  - - India's Sensitive Index fell for the second day, after a government report showed industrial production in July grew at the slowest pace in nine months. ICICI Bank Ltd. led declines.

Fox hunts for $1bn Qantas deal - - TRUCKING magnate Lindsay Fox is likely to demand about $1 billion for his Linfox transport logistics empire from Qantas as the airline scouts around to bolster its new stand-alone freight arm.

Wednesday

Pork prices in China up 77.6% in August from a year ago - - The retail price of pork in China, the country's staple meat, soared 77.6 percent in August from the same month a year ago though it began to decline in the middle of the month, according to the National Development and Reform Commission.

DSM opens sizing plant - - Dutch chemical group DSM NV announced the launch of its first China sizing plant yesterday in Shanghai to meet growing demand in Asia.

China's auto sales up 25% in first eight months - - China's motor vehicle industry continues to grow rapidly, with both production and sales rising by around 25 percent in the first eight months of this year.

Chinese marine sector's gross output up 13.5% in first half - - China's marine sector realized 1.13 trillion yuan (150.6 billion U.S. dollars) in gross output in the first half of this year, a growth of 13.5 percent on the same period of last year, sources with the State Oceanic Administration said on Tuesday.

China's trade surplus rebounds slightly in August - - China's trade surplus in August rose almost 33 percent over the same month last year to 24.98 billion U.S. dollars, the General Administration of Customs said on Tuesday.

Huawei's R&D Pot Rivals Western Firms' - - The company is spending 10% of its $11 billion in sales on research and development, says its chief marketing officer

Indiareit Aims to Raise as Much as $750 Million Overseas for Property Fund  - - Indiareit Fund Advisors, the venture capital firm controlled by the Piramal Group, plans to raise as much as $750 million overseas for what could become India's second-largest real estate fund.

Maruti Leads Fastest Gain in Indian Car Sales in Six Months as Rates Fall  - - India's car sales gained in August at the fastest pace in six months as loan rates declined and companies offered incentives, bolstering demand for Maruti Udyog Ltd.'s SX4 sedan and General Motors Corp.'s Chevrolet Spark.

European Union May Cut Import Duties on Indian Drugmakers as Subsidy Falls  - - The European Union may trim import tariffs on Indian drugmakers including Ranbaxy Laboratories Ltd. because of evidence that subsidies fell, a step that would scale back protection for EU-based units of Novartis AG.

Jindal Expects to Receive Approval for Bolivia Iron-Ore Project This Week  - - Jindal Steel & Power Ltd. expects to receive congressional approval this week to go ahead with its Mutun iron-ore project in Bolivia, the company's biggest-ever investment overseas.

India's Benchmark Sensitive Index Declines, Paced by Software Exporters  - - India's Sensitive Index fell, paced by software exporters such as Tata Consultancy Services Ltd., after the Indian rupee climbed to its strongest in a month, cutting the local value of dollar-denominated earnings.

BT eyes $250 mn revenue from India - - Global networking major BT is expecting 250 million dollar revenue from India by 2009 and would hire 6,000 people by next year as it expands operations in the country.

Good salary, better options calling Indians - - With India becoming a favoured destination of several multi-national companies, thousands of Indian IT professionals in the United States are returning to their homeland with good pay packets, according to a survey.

Japan, India team up on WTO talks - - Japan and India have agreed to strengthen bilateral cooperation to produce a deal in the stalled Doha Round of global trade liberalization talks by the targeted deadline of the end of this year, according to Japanese officials.

DoCoMo may absorb eight regional sales arms - - NTT DoCoMo Inc. is thinking of integrating its eight regional sales units with the parent's corporate body to raise the efficiency of their marketing operations, sources said Tuesday.

Japan's Cybercafés Go Upmarket - - Customers love the amenities, but the cost of providing DVDs, massage chairs, and refreshments hurts profits for mom-and-pop outfits

Current Account Surplus Widens 4.5 Percent on Overseas Investment Returns  - - Japan's current account surplus widened in July as companies and individuals earned more from their overseas investments and exports increased.

Stocks Rise, Led by Honda, as U.S. Growth Concern Eases; Inpex Advances  - - Japanese stocks advanced after U.S. shares rallied on speculation economic growth there will be sustained. Toyota Motor Corp. and trading companies such as Mitsubishi Corp. led gains.

Japan Wholesale Inflation Rate Rises 1.9 Percent on Higher Commodity Costs  - - Japanese companies paid more for energy and raw materials in August, prompting Nissin Food Products Co. and Ricoh Co. to pass on higher costs to customers.

Dollar Trades Near Record Low Against Euro as Fed May Cut Rates Next Week  - - The dollar traded near a record low against the euro as investors bet the U.S. will lose its interest-rate advantage over Europe as the housing market slumps.

Hino Shares Rise Most in One Month as Weakening Yen Boosts Overseas Income  - - Hino Motors Ltd., Japan's biggest maker of heavy-duty trucks, led shares of Japanese automakers higher on the Tokyo Stock Exchange as the yen weakened against the dollar.

Village takeover offer rejected - - SYDNEY Attractions Group's emphatic rejection of a $198 million takeover offer from Village Roadshow could result in the company digging a "deeper hole" for itself, the spurned bidder believes.

Tuesday

Yankee Woes Hit Japan's Real Estate - - A key real estate index is down 30% from its February peak in what one manager called a "knee-jerk reaction" to subprime problems in the U.S.

Siemens, Mochida join in venture - - Siemens AG, Europe's biggest engineering company, will buy a 16 percent stake in a medical equipment venture with drugmaker Mochida Pharmaceutical Co., giving it a majority holding, Mochida announced Monday.

Lending accelerates first time this year - - Growth in bank lending accelerated for the first time in eight months in August as property-related financing expanded, the Bank of Japan said Monday.

Sony 'rolls' out new music player - - Sony Corp.'s new rolling egg-shaped digital music player swivels, flaps its ends and flashes colorful lights in time to music.

Asian Airlines: Sky's the Limit for Luxury - - Carriers such as Cathay Pacific, Singapore Airlines, and Emirates are taking the pampering of first-class passengers to a whole new level

Chinese entrepreneurs to gather in Kobe as relations warm - - Chinese entrepreneurs from some 30 countries will gather in Kobe and Osaka for a three-day business convention starting Saturday in a further sign that once testy relations between the two Asian neighbors have finally started to warm.

Recalls of China Goods in U.S. Almost Triple Since June, Hurt Export Sales  - - Recalls of Chinese goods by U.S. companies almost tripled in the past three months, threatening to cut overseas revenue for the world's biggest consumer- products exporter.

China and U.S. Should Cooperate on Their Energy Supplies, Officials Say  - - China and the U.S., the world's biggest energy consumers, need to cooperate to ensure stable supplies, government officials said.

Hong Kong Plans to Start Islamic Bond Market to Tap Funds From Middle East  - - Hong Kong plans to develop an Islamic bond market to take advantage of Middle East investors who wish to invest in China, Financial Secretary John Tsang said.

Beiqi Foton, Cummins Win Government Approval for China Truck Engine Plant  - - Beiqi Foton Motor Co., China's biggest commercial-vehicle maker, won approval to form an engine venture with Cummins Inc. to tap rising truck sales in the world's second-largest auto market.

Cnooc Parent to Buy Liquefied Gas Spot Cargoes to Supplement Contracts  - - China National Offshore Oil Corp. will buy liquefied natural gas cargoes from the spot market to supplement its long-term and medium-term contracts and meet the nation's surging demand for the fuel.

Chinese-made passenger planes make debut in Indonesia - - Two Xinzhou-60 passenger planes will enter service in Indonesia's state-run air carrier Merpati Nusantara Airlines next week to become the first Chinese-made planes in commercial flights for a local company.

Blackstone to buy 20% stake in China's BlueStar - - Private equity firm the Blackstone Group is to purchase a 20-percent stake in China National BlueStar (Group) Corporation worth 600 million U.S. dollars, BlueStar's parent company ChemChina announced on Monday.

All Eyes on China Drug Safety - - The execution of the former head of China's State Food & Drug Administration signals the government's intent to crack down on illegal activity in pharmaceuticals

Australian business fretting over interest rates - - A survey on business expectations across the Tasman shows there is increased anxiety there over interest rate rises.

India's Industrial Production Probably Grew at Slowest Pace in Nine Months  - - India's industrial output probably grew in July at the slowest pace in nine months, as interest rates at a five-year high forced consumers to trim spending.

Takata Plans to Build New Factory in India by 2009 to Produce Seatbelts  - - Takata Corp., Japan's largest maker of auto safety equipment, plans to build its first factory in India, where economic growth is boosting demand for cars.

Crude Oil Rises to Within 50 Cents of Record as OPEC May Keep Output Quota  - - Crude oil rose to within 50 cents of a record on speculation rising demand and restricted OPEC production may tighten fourth-quarter supplies.

Power Grid Initial Offer to Raise $732 Million Fully Subscribed on Day One  - - Power Grid Corp., India's biggest power transmission company, received applications for all of the shares it offered in a sale to help fund expansion of its network.

Reliance Industries Buys Malaysian Yarn Maker; Boosts Output 25 Percent  - - Reliance Industries Ltd., the world's largest producer of yarn used for making textiles, agreed to buy assets of Malaysia's bankrupt Hualon Corp. to expand capacity by 25 percent.

Japan's July Machine Orders Surge 17 Percent, Three Times Forecast Rebound  - - Japan's machinery orders surged at three times the pace forecast by economists in July, easing concern the economy will contract for a second quarter.

Shares Fall in Tokyo, Led by Banks on Nomura Rating Call; Exporters Drop  - - Japanese stocks dropped after Nomura Holdings Inc. lowered its rating on the nation's banking industry on the view that an earnings recovery is not likely to happen any time soon.

Ten-Year Government Bonds Fall After Report Shows Jump in Machinery Orders  - - Japanese government bonds fell on speculation 10-year yields near the lowest in 18 months deterred investors from buying debt.

Takata Plans to Build New Factory in India by 2009 to Produce Seatbelts  - - Takata Corp., Japan's largest maker of auto safety equipment, plans to build its first factory in India, where economic growth is boosting demand for cars.

Yen Rises; Investors Reduce Carry Trades After Fed Highlights Growth Risks  - - The yen gained after Federal Reserve officials said credit market losses may slow the U.S. economy, prompting investors to sell higher-yielding securities funded by loans made in the currency.

Monday

Toyota: Rattled but Resilient - - The Japanese automaker, still rich in its top ranks, saw its stock hold firm one day after losing North American chief Jim Press to Chrysler

Japan's Economy Contracts More Than Forecast on Company Spending Decline  - - Japan's economy contracted at almost twice the pace forecast by analysts in the second quarter, hardening speculation the central bank will refrain from raising interest rates this year.

Stocks Slump After U.S. Employment Unexpectedly Drops; Sony Leads Decline  - - Japanese stocks tumbled by the most in three weeks after the number of jobs in the U.S. unexpectedly fell for the first time in four years and Japan's economy contracted more than forecast, raising concern weakening growth will curb profits.

Bonds Advance on Economic Contraction; Yields Fall to Lowest in 18 Months  - - Japan's government bonds rose, pushing 10-year yields to the lowest in more than 18 months, after a report showed the world's second-largest economy contracted faster than expected.

Yen Strengthens as Stocks Tumble on First U.S. Job Losses in Four Years  - - The yen rose to a three-week high against the dollar after a drop in the U.S. jobs market caused Asian stocks to drop, prompting investors to sell higher- yielding assets bought with loans in Japan.

Mitsui Fudosan, NTT Urban Lead Real Estate Shares Down as Economy Shrinks  - - The Topix real estate index dropped to its lowest in more than a year after Japan's economy contracted at almost twice the pace forecast by analysts.

Coke plans new brands for India - - Soft drinks major Coca Cola India is mulling an expansion in the country's over Rs 1,500 crore bottled water segment with introduction of global brands including 'Bonaqua', besides developing local flavoured products such as 'pudina' and mango water.

Indian Companies Hit Their Stride  - - Newly confident, they're climbing the Asia BusinessWeek 50 with global ambitions

China Inflation Probably Accelerated to 5.9 Percent, Highest in a Decade  - - China's inflation probably accelerated to a decade high as food costs soared and the nation's second-highest monthly trade surplus pumped cash into the economy.

Lenovo Will Sell Laptop Computers to U.S., France From January, Yang Says  - - Lenovo Group Ltd., the world's third-biggest maker of personal computers, will sell consumer notebooks in the U.S. and France from January to expand outside its biggest market in China.

Bank of Beijing to Raise as Much as $2 Billion in Shanghai Initial Offer  - - Bank of Beijing Co., part owned by ING Groep NV, will raise as much as 15 billion yuan ($2 billion) in a Shanghai initial public offering to boost its finances and compete with larger domestic rivals and foreign banks.

China's August Producer-Price Inflation Accelerates to Fastest in 4 Months  - - China's producer-price inflation accelerated for the first time in four months as the fastest economic growth since 1994 pushed up raw-material costs.

National Australia Bank Buys a 20 Percent Stake in China's Union Trust  - - National Australia Bank Ltd., the nation's largest, bought a 20 percent stake in China's Union Trust & Investment Ltd. for an undisclosed amount.

Land supply in Beijing under strict control - - Beijing imposed strict control over land use this year, with supply of no more than 6,300 hectares, compared with last year's 6,500 hectares, according to a plan released by Beijing Municipal Bureau of State Land and Resources.

Experts: most toys recalls not attributable to Chinese manufacturers - - Most recalls of toys made in China are due to design errors, not manufacturing problems, Canadian business professor Hari Bapuji said Sunday.

Ministry: overseas-funded companies top 610,000 in China - - China had approved the establishment of more than 610,000 overseas-funded companies by the end of July, with actual use of overseas investment totaling 720 billion U.S. dollars, said an official of the Ministry of Commerce on Sunday.

Power Grid Starts Initial Offer to Raise $732 Million for Expansion  - - Power Grid Corp., India's biggest power transmission company, will begin selling shares to help expansion as the Asian nation targets a record increase in generation capacity to meet demand.

Asian Stocks Decline Most in Three Weeks on U.S., Japan Economic Woes  - - Asian stocks lost the most in three weeks after the number of jobs in the U.S. unexpectedly fell for the first time in four years and Japan's economy shrank.

Looming Cotton Rally Lures Barclays as Farmers Plant Wheat, Ignore Demand  - - Cotton, the least profitable crop for U.S. farmers, is poised for its biggest advance in four years on demand for T-shirts and blue jeans from China and India.

South Korean Won Gains on Growth Outlook, Rupiah Rises on Stocks Rebound  - - The South Korean won rose for a third week on signs the economy can withstand a housing recession in the U.S., the nation's second-biggest buyer of its exports.

Bombay Stock Exchange's Sensitive Index Declines, Led by Reliance Energy  - - India's Sensitive Index fell. Reliance Energy Ltd., the nation's second-biggest power producer by market value, declined after some investors judged its recent gains excessive.

 China's wealth gap a growing divide - - Economic powerhouse China may be, but it lags in the equality stakes, writes John Garnaut.

Australia 'can expect more' sub-prime mortgage fall out - - The sub-prime mortgage shakeout was not over, with further losses expected to be revealed at the end of this month, says the head of Australia's biggest bank.

$1bn handout flows to Opel - - ALMOST $1 billion in subsidies will begin flowing to Optus and Elders this week after the Federal Government ratified a rural broadband deal with the companies.