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Chinese Premier Wen Jiabao on Wednesday, November 28th, rejected calls by EU leaders for faster revaluation of China's currency, saying its value was not a major factor in his country's growing trade surplus with Europe. Wen did, however, strike a more conciliatory tone with EU finance experts during the 10th China-EU business summit this week. He said that China would reform its currency policy in a "gradual, proactive and manageable manner."
But Wen added that the exchange rate between the euro and the Chinese yuan was determined by the euro's rate against the dollar.
"The plunge of the US dollar is the main cause of the appreciation of the euro," he said.
European officials have called for China to speed up its reforms as the 27-member bloc's trade deficit with China reached a record €131 billion ($194 billion) last year and is expected to grow to €170 billion in 2007, according to EU statistics.
The International Herald Tribune reports that US pharmaceutical company Pfizer Inc. is looking to outsource as much as 30 percent of its manufacturing, much of it to Asia, Martin MacKay, head of Pfizer's global research and development, said Friday. Pfizer, based in New York City, currently outsources about 15 percent of its manufacturing. The company aims to double that figure as part of cost-cutting measures, MacKay said at an investor presentation in Hong Kong. The development follows Pfizer's announcement at the beginning of the year that it would shut down manufacturing sites in Brooklyn, New York and Omaha, Nebraska, and sell a third manufacturing site in Feucht, Germany. These cuts, along with the closings of several research sites, were part of the companywide plan to cut its worldwide work force by 10 percent, or 10,000 jobs, and save US$2 billion. The Wall Street Journal Asia reports that Japan's industrial production rose in October, but it is unclear whether output in the world's second-largest economy can remain a major driver of growth. Industrial production climbed 1.6% from September, underpinned by healthy output of automobiles and electric parts for exports, the Ministry of Economy, Trade and Industry said. The October gain fell short of the 1.7% increase expected by many economists. Output dropped 1.4% in September after a 3.5% jump in August. The Financial Times reports that the director-general of the UK intelligence service MI5 has warned banks and financial services companies that commercially sensitive information is at risk of being compromised by Chinese computer hacking. According to private sector security specialists, Jonathan Evans, who took over as chief of MI5, the Security Service, in April, delivered the warning in an unusual letter to the companies, saying the threat came from Chinese state enterprises. The FT reports that in the name of fighting global warning, 12,000 representatives from 185 countries and more than 1,000 business, public sector and media organisations are this weekend descending on Bali for a United Nations summit on climate change. Environmentalists hope a fortnight of talks will forge a new global consensus on tackling climate change and lay the groundwork for a successor to the UN Kyoto protocol for reducing greenhouse gas emissions, which expires in 2012. Emil Salim, the head of the host Indonesian delegation, said: “We hope this meeting will be like an engagement, where everyone agrees to get together, next year’s conference in Poland will be the marriage, and in Copenhagen the child will be born.” FINFACTS REPORTS THIS WEEK RELATED TO ASIA-PACIFIC Taxes or Carbon Emissions Trading in Post-Kyoto Regimes? Chinese car market continues to grow at an unprecedented rate; Volkswagen is top-selling brand Dr. Peter Morici: Avoiding a US Recession ACCESS TO NEWS REPORTS FROM OTHER SOURCES Friday China Stocks Fall, Poised for Their Steepest Monthly Drop in 12 Years - - Chinese stocks fell, sending a key index to its steepest monthly slump in at least 12 years, after the government deflated a bubble that had caused prices to quadruple in a year. Ping An Set for Biggest 2-Day Gain in Two Months After Investing in Fortis - - Ping An Insurance (Group) Co. was set for its biggest two-day gain in more than two months in Hong Kong trading after the company said it bought a stake in Fortis, Belgium's biggest financial company. China Insurers Will Probably Use QDII Quota to Invest in Hong Kong Stocks - - Chinese insurers will use their quota to invest abroad mostly to buy shares in the Hong Kong market, the country's insurance regulator said today. China Railway Raises $2.5 Billion in Hong Kong Sale, People Familiar Say - - China Railway Group, the world's third-largest construction company, raised more than HK$19.22 billion ($2.5 billion) pricing a Hong Kong share sale at the top end, three people familiar with the transaction said. Dell Will Hire in China and India, Expand in Asia to Tap Consumer Spending - - Dell Inc., the world's second-largest maker of personal computers, will hire sales and customer-service workers in China and India amid an expansion in Asia as expanding economies spur consumer spending. Chinese stocks plummet 2.63%, led by bluechips - - Chinese share prices were sharply lower on Friday as the benchmark Shanghai Composite Index plunged 2.63 percent following Thursday's strong gains. India's Economic Growth Eased to 8.9% Last Quarter, Slowest Pace This Year - - India's economy grew at the slowest pace since the final quarter of 2006, signaling the central bank may soon end three years of interest-rate increases. State Bank of India to Raise $4.2 Billion in First Share Sale in a Decade - - State Bank of India, the nation's biggest, won approval for its first share sale in a decade, tapping government funds to help prepare for the easing of curbs on international lenders in 2009. Stocks in India Rise; State Bank Climbs on Share Sale Approval; DLF Gains - - India's Sensitive Index rose after Federal Reserve Chairman Ben S. Bernanke reinforced speculation that U.S. policy makers will cut borrowing costs to bolster growth. Infosys Technologies Ltd. led software exporters higher. Tata Steel Plans to Seek More Coal, Iron Ore Acquisitions, New Parterships - - Tata Steel Ltd., India's oldest steelmaker, will study more coal and iron ore acquisitions as well as new partnerships to secure raw material supplies globally after buying Corus Group Plc for $12.9 billion in January. India Seeks Early Signing of Comprehensive Trade Pact With European Union - - India looks forward to the early signing of a comprehensive trade agreement with the European Union, Prime Minister Manmohan Singh said in New Delhi today, at the conclusion of a summit meeting between the two sides. Economy Shows First Inflation Signs This Year After Gasoline Prices Surge - - Japan's economy showed its first signs of inflation this year after gasoline prices surged. Stocks Climb After Bernanke Fuels U.S. Rate Cut Speculation; JFE Advances - - Japanese stocks rose after Federal Reserve Chairman Ben S. Bernanke reinforced speculation that U.S. policymakers will cut borrowing costs, bolstering growth and making more funds available for investment. Nomura Securities Withdraws as Primary Dealer of Treasuries After 22 Years - - Nomura Securities International Inc., a unit of Japan's largest securities firm, has withdrawn from the list of U.S. primary dealers, which trade with the Federal Reserve and are obligated to bid at Treasury auctions. Daiichi Sankyo to Sell Two Chemical Subsidiaries, Focus on Pharmaceuticals - - Daiichi Sankyo Co., Japan's third- largest drugmaker, agreed to sell two subsidiaries to Nippon Shokubai Co. to focus on its main pharmaceutical business. Yen, Swiss Franc Fall the Most in Three Years on Demand for Higher Yields - - The yen and Swiss franc posted their biggest weekly drops in almost three years versus the dollar as global stocks rallied and investors bought higher-yielding assets with funds borrowed in Japan and Switzerland. Vietnamese leaders make investment pitch - - Vietnamese President Nguyen Minh Triet and a senior delegation of Vietnamese government and business officials called on Japanese business and government leaders Thursday to invest in huge transportation and technology infrastructure projects in their country. Dubai fund body with big Sony stake hires Idei - - Nobuyuki Idei, former chairman and chief executive officer of Sony Corp., has been hired by a Dubai investment firm that bought a significant stake in the electronics giant earlier this week, his consultancy firm said Thursday. PS3 outsells Wii first time in Japan - - Sony Corp.'s PlayStation 3 game console outsold rival Nintendo Co.'s Wii for the first time in Japan since its release in November 2006, a video-game researcher said. October oil imports up 8% on year - - Crude oil imports increased 8.3 percent in October from a year earlier to 128.88 million barrels for the first growth in two months, the Natural Resources and Energy Agency said Friday. Housing starts fall 35% on Aneha-inspired building reforms - - Housing starts tumbled 35.0 percent year on year in October to 76,920 units, a decline for the fourth consecutive month, as tougher building regulations continued to cause procedural delays in construction activity, according to government data released Friday. Japan to fund green measures to reduce Indonesia emissions - - Japan has reached a broad agreement with Indonesia to provide financial aid for implementing measures on global warming, the first such deal to be struck under a new mechanism Tokyo unveiled in May to support developing nations, government sources said. Thursday/Wednesday Ping An Insurance Acquires 4.2 Percent Stake in Fortis for $2.7 Billion - - Ping An Insurance (Group) Co. bought a 4.2 percent stake in Fortis, Belgium's biggest financial company, for 1.81 billion euros ($2.7 billion) in the largest overseas acquisition by a Chinese insurer. Chinese Stocks Face Worst Month Since 1995 as Government Deflates Bubble - - Chinese stocks are poised for their steepest monthly decline since at least 1995 as the government deflates a bubble that caused prices to quadruple in a year. People's Bank of China's Zhou Urges Domestic Banks to Be More Competitive - - China's central bank governor, Zhou Xiaochuan, urged domestic banks to become more internationally competitive and guard against economic downturns. China Currency Reserves Rise to $1.46 Trillion in October, Official Says - - China's foreign-exchange reserves rose to a record $1.46 trillion at the end of October, a government official said. China Suspends LNG Cargo Purchases From Spot Market Because of High Prices - - China has halted liquefied natural gas purchases from the spot market for individual cargoes because of rising prices as the Northern Hemisphere winter approaches, an official at the country's only importer said. Sterlite Plans to Sell $2 Billion Stake in Indian Energy Unit, People Say - - Sterlite Industries (India) Ltd., the nation's biggest copper producer, plans to sell a stake worth as much as $2 billion in its energy unit to build power plants, three people familiar with the matter said. Economic Growth Likely Slowed in India as Rate Increases Curb Production - - India's economy probably grew last quarter at the slowest pace this year after the central bank raised interest rates to a five-year high to curb inflation. Benchmark Stock Index Falls; Commodities Lead Declines as Oil, Metals Drop - - India's Sensitive Index fell after metal and oil prices dropped on concern a slowdown in the U.S. economy will erode demand for raw materials. Hindalco Industries Ltd. and Oil & Natural Gas Corp. declined. India's Rupee Falls for a Ninth Day on Speculation Importers Sold Currency - - India's rupee fell for a ninth day, its longest losing streak since June 2004, on speculation importers bought dollars for month-end payments. Eros International First-Half Net Jumps 71 Percent on Indian Movie Demand - - Eros International Plc, the U.K.'s biggest distributor of Indian movies, said profit surged 71 percent in the first half on ``strong'' demand for productions in India. Japan's Industrial Production Rises to Record on Demand from China, Europe - - Japan's industrial production rose to a record in October as demand from China and Europe encouraged companies to make more cars and electronics. Shares Gain on U.S. Rate Cut Prospect, Weaker Yen; Nintendo, Mizuho Rise - - Japanese stocks climbed after U.S. Federal Reserve Vice Chairman Donald Kohn raised expectations the central bank will cut interest rates, easing concern growth will stall in Japan's biggest overseas market. Morgan Stanley Gets $2 Billion Loans for Japan Hotels Purchase, People Say - - Morgan Stanley is getting 225 billion yen ($2 billion) in loans from Citigroup Inc., Shinsei Bank Ltd. and the Government of Singapore Investment Corp. for its purchase of hotels in Japan's largest real estate deal, three people familiar with the transaction said. Five-Year Government Bonds Fall as Global Stock Rally Saps Demand for Debt - - Japan's bonds fell after a rally in global stocks and a rebound in industrial production damped demand for the relative safety of government debt. Yen Trades Near Lowest in a Week Versus Dollar as Stocks Spur Carry Trades - - The yen traded near the lowest in a week versus the dollar as rallying stocks spurred investors to borrow the Japanese currency to buy high-yielding assets. Toxic Tech: Greenpeace Speaks - - Its environmental ranking of Sony, Nintendo and other electronics makers raises consumer awareness—but does it factor into buying decisions? Sanyo sees first profit in three years - - Sanyo Electric Co. said Tuesday it posted a group net profit in the April-September period for the first time in three years, backed by cost-cutting efforts as well as strong sales of batteries and digital cameras. Subprime losses to reach ¥626 billion - - Japanese financial institutions are likely to book losses totaling ¥626 billion in business 2007 as a result of the U.S. subprime loan crisis, according to their reports released by Tuesday. Nintendo game consoles top attractive goods list for '07 - - Nintendo Co.'s DS portable and Wii gaming consoles occupy the top two slots in a list of Japan's most "attractive" products or topics for 2007, Dentsu Inc. said Wednesday. Tuesday Trichet, Juncker to Warn China of Trade War as Yuan Retreats Against Euro - - Europe's finance chiefs arrived in Beijing today with the warning that China must let its currency strengthen against the euro or risk sparking a trade war. Yuan Advances For Third Straight Day as Trichet, European Officials Visit - - The yuan rose to the strongest since a link to the dollar ended in July 2005 as European finance officials warned of the increased risk of trade barriers unless China allows the currency to appreciate at a faster pace. China's Key Stock Index Declines; Citic Securities Leads Drop in Shares - - China's CSI 300 Index fell, with Citic Securities Co. pacing a retreat by the nation's brokerages on speculation a slump in trading volume will erode earnings. Suzuki May Build Its Second Motorcycle Factory in China to Increase Sales - - Suzuki Motor Corp., Japan's second- largest minicar maker, may build a motorcycle factory in China, to increase sales in the world's most populous country. Three Gorges Dam Hydroelectric Project Spending Climbs to $15.6 Billion - - China Three Gorges Project Corp. had invested 115.3 billion yuan ($15.6 billion) in the world's biggest hydroelectric venture by September, a government official said today. Indian Billionaire Adani May Add $4 Billion to Family's Fortune After IPO - - Indian property magnate Gautam Adani may be about to add $4 billion to his personal fortune. Asian Bond Risk Increases as Subprime Concerns Help Fuel Slump in Stocks - - The risk of companies and governments in the Asia-Pacific region defaulting on their debt rose after stocks fell on concern that U.S. subprime mortgage losses will continue to spread. Oil Falls a Second Day on Signs OPEC Will Boost Output to Counter Slowdown - - Crude oil fell for a second day in New York on heightened speculation OPEC will increase output as record prices threaten to stifle economic growth. Asian Stocks Drop on Concern Over Subprime Losses; Mizuho, Macquarie Fall - - Asian stocks fell for the first time in three days, led by Mizuho Financial Group Inc., on concern banks will report more losses related to a slump in the U.S. mortgage market. Business declines for life insurers - - Reeling from an industrywide scandal involving the systematic nonpayment of insurance benefits, major life insurance companies saw new contracts fall in the six months to September, according to earnings reports released Monday. New DoCoMo phones can work in 154 nations - - NTT DoCoMo Inc. debuted a new 905i line of mobile phone handsets Monday, most of which are based on the world's most popular GSM standard and can be used in about 154 countries. Sony's new PSP tops 1 million sold - - Sony Computer Entertainment Inc. said Monday it sold more than 1 million of its new slim and light PlayStation Portable handheld game players in Japan in the first two months after it was released. Shares Rebound After Report of Investment in Citigroup, Dollar's Rally - - Japanese stocks rose, rebounding from earlier losses, after Citigroup Inc., the largest U.S. bank, said it agreed to sell $7.5 billion of equity units to the Abu Dhabi Investment Authority. Yen Falls as Citigroup Says to Sell Equity Units, Mutual Fund Outflows - - The yen declined against all of the world's 16 most-active currencies after Abu Dhabi Investment Authority agreed to invest in Citigroup Inc., prompting investors to buy higher-yielding assets with loans from Japan. Japanese 10-Year Government Bonds Erase Earlier Gains as Nikkei 225 Rises - - Japanese 10-year bonds fell, reversing earlier gains, as stocks rebounded. Sumitomo Mitsui Aims to Raise Retail Income by $931 Million in Three Years - - Sumitomo Mitsui Financial Group Inc., Japan's second-biggest bank by market value, plans to increase income from individuals by 100 billion yen ($931 million) within three years by selling a wider array of financial products. Seiko Epson May Shut Factories to Reorganize Unprofitable Display Business - - Seiko Epson Corp., the world's third-biggest maker of inkjet printers, may shut mobile-phone display factories or sell the unprofitable unit to revive earnings. Monday Sarkozy Urges China to Allow Yuan Appreciation to Prevent Trade Imbalances - - French President Nicolas Sarkozy said China must let the yuan appreciate against the euro and other currencies to smooth lopsided trade flows that might hinder global economic growth. China Calls for Warning System to Ensure Oil Supplies, Cope With Shortages - - China urged local governments to set up an early warning system to ensure sufficient oil supplies at filling stations, which face shortages across the nation, the state-run Xinhua News Agency reported. China State Fund May Bid Against BHP for Rio Tinto, Business Journal Says - - China Investment Corp., which manages the nation's $200 billion sovereign wealth fund, plans to bid against BHP Billiton Ltd. for Rio Tinto Group, the China Business Journal reported, citing unidentified people. China's Foreign-Exchange Reform Moving Ahead, Central Banker Su Ning Says - - China is progressing with foreign- exchange reform and the mechanism plays an important role in ``adjusting'' the nation's trade balance, central bank Deputy Governor Su Ning said. Bank of Communications Seeks Overseas Cooperation With HSBC, Chairman Says - - Bank of Communications Ltd., part- owned by HSBC Holdings Plc, plans to cooperate overseas with the U.K. bank, the Chinese lender's Chairman Jiang Chaoliang said. French President Sarkozy kicks off China visit, stressing close ties - - French President Nicolas Sarkozy arrived in Beijing Sunday afternoon for his first state visit to China since taking office in May, emphasizing close bilateral links. 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. South African Coal Sales Surge to India, Asia, Increasing Europe's Prices - - South Africa's Richards Bay Coal Terminal, the world's biggest coal-export facility, expects a 30-fold surge in sales to India this year, increasing prices for European power producers competing for supplies. Benchmark Sensex Climbs From One-Month Low, Led by Larsen, Reliance Energy - - Indian stocks rose, with the benchmark Sensitive Index climbing 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. Shares Gain in Tokyo, Led by Sony, on U.S. Retail Sales, Spending Report - - Japanese exporter stocks gained on speculation consumer will be prepared to spend more in the holiday season after a U.S. report said retail sales increased the day after Thanksgiving. Yen Declines on Speculation Higher Stocks to Boost Demand for Carry Trades - - The yen dropped from a two-year high against the dollar as global stocks climbed, encouraging investors to increase holdings of higher-yielding assets bought with money borrowed in Japan. Astellas Shares Climb Most in 13 Months on Planned $368 Million Buyback - - Astellas Pharma Inc., Japan's second-largest drugmaker, rose the most in 13 months in Tokyo trading after announcing a plan to buy as much as 40 billion yen ($368 million) of its own shares. Japan's Growth Forecast Is Cut by Economists on Plunge in Housing Starts - - Japan's gross domestic product forecast was cut by economists, who said a plunge in housing starts and construction investment will slow economic growth. Government Bonds May Fall on Concern Stock Gains to Reduce Demand for Debt - - Japanese 10-year government bonds fell, ending two days of gains, as rising stocks reduced demand for the relative safety of government debt. |
