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The Wall Street Journal Asia reports that Japan's government said Friday that the economy grew at a slower pace in the July-September quarter than it initially calculated, mainly reflecting weaker-than-expected growth in corporate capital spending. The downward revision in the gross domestic product data adds to evidence that growth in the world's second-largest economy is slowing, hurt by global economic and financial market jitters and rising commodity prices. And analysts expect a further slowdown in the last quarter of this year. That suggests the Bank of Japan won't be able to raise interest rates in months ahead, analysts say. Japan's July-September real GDP increased 0.4% on a quarter-to-quarter basis, a rise of 1.5% in annualized terms, slower than the preliminary reading of 0.6% quarter-to-quarter increase, or an annualized 2.6% rise, the Cabinet Office said Friday. The revised figure was worse than the 0.7% quarter-to-quarter gain forecast on average by private economists. In an article on worker shortage in China, BusinessWeek Asia says Greater China is in the midst of an unprecedented economic boom. On the mainland, a liberalized economy is building a middle class eager to spend on consumer goods. In Macao, three new casinos opened in the past 12 months with at least five more coming on line during the next year. In Hong Kong, the gateway into China for many multinational corporations, more investment funds, hedge funds, and investment banks are entering the market or expanding. A recent Hong Kong government survey showed a 25% increase over the past five years in the number of regional headquarters located in the city. What are the three big challenges facing companies planning to establish an office in the region and make the most of these economic opportunities? Most likely they are: cross-border differences in labor laws, taxes, and economic regulations; environmental issues (especially air and water pollution); and infrastructure for business growth—transportation, housing, and schools. However, the real point right now—and the only topic of conversation—is the ability to attract, hire, and retain high-quality employees. Despite the large population in Greater China, there is a shortage of qualified candidates across many job sectors including property, accounting, hospitality, retail, secretarial, and administration. Why? The New York Times reported this week that China said it had demolished the facilities of more than 2,800 rural food makers as part of its effort to crack down on shoddy, fake or substandard food, according to the official Xinhua news agency. Beijing has been moving aggressively in recent months to complete a six-month long campaign to root out fake and substandard food, drugs, toys and other consumer goods, after a year of scandals involving product safety. While the government has insisted through much of the year that the country’s products are safe, the government has acknowledged uncovering tens of thousands of problem or dangerous operations over the past six months. Yesterday, regulators said that this year more than 20,000 tons of substandard products were removed from shelves in rural markets and stores, and that they had closed more than 47,000 food factories that were operating illegally. Last month, the State Administration for Industry & Commerce said that during a four-month period ending in October, the government had banned nearly 9,000 pork production facilities from operating. The moves come at a time when China is suffering from some of its highest inflation in a decade, partly because of dwindling supplies of pork following an outbreak of several highly contagious diseases.
China's State news agency Xinhua reports that China's Ministry of Finance (MOF) has drawn up policies to promote the production of non-food sources for biofuels, a senior MOF official told a Beijing energy conference. The ministry will use subsidies and other forms of financial support to reduce the risks of producing these sources, said Zeng Xiao'an, deputy director of the MOF's Department of Economic Development, at a synthetic fuel forum held in Beijing Thursday. "We have worked out a complete set of policies to support non-food biofuels, as they are clean energy sources with a limited negative impact on the environment," Zeng said. Flexible subsidies will be offered to biofuel producers who lose money on crops when crude oil prices are low, he said, and the government would encourage enterprises to reserve funds to offset such risks. The Sydney Morning Herald reports that Rupert Murdoch tapped his son James Murdoch to take over News Corp's Asia-Pacific and Europe operations, according to a source familiar with the matter, in a move that appears to position him as the global media empire's heir apparent. James, 34, will step down as chief executive of satellite television operator British Sky Broadcasting Group Plc. Sky Chief Financial Officer Jeremy Darroch is expected to become CEO, the source said.
FINFACTS REPORTS THIS WEEK RELATED TO ASIA-PACIFIC Oil and food price rises push annual inflation in the OECD area up to 2.8% in October 2007 Climate change could triple population at risk from coastal flooding by 2070 says OECD study ACCESS TO NEWS REPORTS FROM OTHER SOURCES ACCESS TO NEWS REPORTS FROM OTHER SOURCES Friday/Thursday Sinosteel Offers $1.1 Billion to Buy Midwest to Tap Mines in Australia - - Sinosteel Corp., China's second- biggest iron-ore trading company, offered A$1.2 billion ($1.1 billion) to buy Australia's Midwest Corp, countering a bid from Murchison Metals Ltd. China Railway Group Shares Advance in Their Trading Debut in Hong Kong - - China Railway Group Ltd., the world's third-biggest construction company, rose as much as 30 percent in its Hong Kong debut as investors bet the country's investment in transport systems will boost earnings at the builder. CSI 300 Index Increases, Making Its Biggest Weekly Advance in Three Months - - China's stocks rose, with the CSI 300 Index completing its biggest weekly gain in more than three months. Citic Securities Co. led brokerages higher on expectations the share market's rally will boost broking business. ArcelorMittal Required to Make Offer for China Oriental After Buying Stake - - ArcelorMittal, the world's largest steelmaker, will offer to pay at least HK$12.9 billion ($1.7 billion) for shares in China Oriental Group Co. it doesn't own, obeying a regulatory ruling it must bid after a stake purchase. Lenovo Group Plans Expansion in Europe, First Factory, Handelsblatt Says - - Lenovo Group Ltd., the world's third- biggest maker of personal computers, plans to expand in Europe, Handelsblatt said. CLP Sets Target to Reduce Its Carbon Emissions Intensity by 75% by 2050 - - CLP Holdings Ltd., producer of electricity in six Asian economies, set a target to cut carbon emissions per unit of generation by 75 percent by 2050, seeking to benefit from the start of global emissions trading. Shanghai Zhenhua Port Machinery Wins $200 Million Crane Order From Taipei - - Shanghai Zhenhua Port Machinery Co., the world's biggest maker of quayside cranes, won a $200 million contract from Taipei Port Container Terminal Corp. Cnooc Says Gas Pipeline Shutdown Doesn't Threaten Full-Year Output Target - - Cnooc Ltd., China's third-largest oil and gas producer, said the shutdown of a South China Sea gas pipeline last month won't cause the company to miss full-year production targets. Chinese commodity fair opens in Chile - - A three-day Chinese commodity fair was opened in Chile's capital on Thursday in a bid to promote bilateral trade. Wal-Mart raises Seiyu stake to 95% to speed up retailer's turnaround - - Wal-Mart Stores has raised its stake in supermarket chain Seiyu to 95.1 percent, Seiyu said Wednesday, marking the U.S. retailer's latest attempt to solidify its foothold in the difficult Japanese market. Reliance Communications Wins Amended License to Offer National GSM Service - - Reliance Communications Ltd., India's second-largest mobile-phone operator, received an amended license to expand services in the world's third-biggest wireless market by users. Inflation Rate in India Unexpectedly Slows to 3.01% on Higher Farm Output - - India's inflation unexpectedly eased in the third week of November as increased farm production boosted by monsoon rains helped contain food prices. India Economic Growth `Buoyant,' Faces Challenges of Inflows, Review Says - - India's Finance Minister Palaniappan Chidambaram said economic growth in the first six months of the financial year, which began April 1, has been ``buoyant'' amid the challenge posed by capital inflows. Natural Gas Terminals in Asia Prepare to Receive World's Biggest Tankers - - Asian utilities led by Korea Gas Corp., the world's biggest liquefied natural gas buyer, are expanding import terminals to receive the world's biggest tankers and meet soaring demand for the fuel. Asian Stocks Rise on U.S. Housing Plan; Toyota Motor, Westpac Lead Gains - - Asian stocks rose, set for a second weekly gain, after the U.S. government announced plans to limit defaults on subprime mortgages and commodity prices climbed. Ranbaxy Gets Tentative U.S. Approval to Sell Copy of Eisai's Aricept Drug - - Ranbaxy Laboratories Ltd. won tentative U.S. regulatory approval to sell a generic copy of Eisai Co.'s best-selling Alzheimer's drug Aricept, and Ranbaxy shares rose. Benchmark Sensitive Index Rises, Led by Reliance Communications, Bharti - - India's Sensitive Index rose, paced by telecommunications companies on expectations that growth will continue in the world's fastest growing wireless services market. Government 10-Year Bonds in India Set for Weekly Gain as Fund Cost Falls - - India's 10-year bonds headed for a weekly gain on speculation spending by the government and purchases of securities by the central bank will leave banks more cash to buy debt. Economic Growth Was Slower Than First Reported as Business Spending Cooled - - Japan's third-quarter expansion was slower than the government initially reported, the latest evidence growth is losing steam because of a slump in domestic housing construction and waning U.S. demand. Dollar Heads for Second Weekly Advance Against Yen as Credit Concerns Ease - - The dollar headed for a second weekly gain against the euro as concerns eased that credit-market losses will throw the U.S. economy into recession. Shares Climb to One-Month High on U.S. Subprime Plan; Komatsu Paces Gain - - Japanese shares rose to a one-month high after U.S. President George W. Bush announced a plan designed to stem defaults on home loans, increasing expectations the world's largest economy will dodge a recession. Japan's Bonds Complete Second Weekly Decline as Stock Advance Cuts Demand - - Japanese 10-year government bonds fell for a third day after the U.S. government approved a plan to limit subprime mortgage defaults, damping demand for the relative safety of debt. Suzuki Will Spend $282 Million on Car Plant in Thailand to Open in 2010 - - Suzuki Motor Corp., Japan's second- largest minicar maker, will spend 31.4 billion yen ($282 million) to build a car factory in Thailand. NEC Electronics, China FAW to Jointly Develop Car Electronics From 2009 - - NEC Electronics Corp., Japan's third- biggest semiconductor maker, and China FAW Group Corp. will jointly develop car electronics to meet demand in the world's second-biggest automotive market. J-Power, Formosa Plastics Vie for Permits to Build Power Plants in Taiwan - - Formosa Plastics Group and Japan's Electric Power Development Co. are among eight competitors for rights to build power plants in Taiwan, a government official said. Softbank Won Most Users Last Month From Mobile Rivals KDDI, NTT DoCoMo - - Softbank Corp., Japan's third-biggest mobile-phone operator, led gains in users who switched carriers last month. Japan economy said bin Laden target - - Al-Qaida leader Osama bin Laden contemplated in November 2001 sabotaging the Japanese economy by attacking oil tankers headed to the country, someone claiming to be a former member of the terrorist group said in a recent interview. Marukome marks opening of California plant - - Marukome Co., a producer of miso, or fermented soybean paste, held a dedication ceremony Wednesday for its new factory in Irvine, Calif., the company's first production base abroad. Honda Fit races to No. 1 in November sales figures - - Honda Motor Co.'s Fit subcompact beat Toyota Motor Corp.'s Corolla to become the best-seller in Japan in November for the first time in 14 months, an industry body said Thursday. Toyota takes wraps off new robots - - Toyota Motor Corp. showed off a violin-playing robot and a "mobility robot" Thursday, saying it will try to develop practical uses for human-helping partner robots in the early 2010s. Wednesday Hutchison Whampoa to Spend $628 Million to Increase Stake in Phone Unit - - Hutchison Whampoa Ltd., billionaire Li Ka-shing's largest company, will spend HK$4.9 billion ($628 million) to increase its stake in unit Hutchison Telecommunications International Ltd. China Plans to Shift to `Tight' Monetary Policy Next Year to Cool Economy - - China plans to shift to a ``tight'' monetary policy in 2008, signaling the government may raise interest rates further and allow quicker currency appreciation as the economy heads for its fastest expansion in 12 years. China Wins Rights to Extract Gas in Myanmar, Beating Stakeholder India - - China won the rights to buy natural gas from Myanmar's biggest field, beating stakeholder India in the race for resources among the world's two-fastest growing major economies. China Construction Bank to Sell $541 Million of Mortgage-Backed Securities - - China Construction Bank Corp., the nation's largest mortgage lender, plans to raise 4 billion yuan ($541 million) selling residential mortgage-based securities, the second such sale in the country. CSI 300 Index Rises for a Third Day; Steelmakers, Baoshan Lead Advances - - China's stocks rose for a third day, lifting a key benchmark to a two-week high. Baoshan Iron & Steel Co. paced gains among steelmakers on expectations higher steel prices will boost their earnings. Baosteel Buys Stake in Xinhua Metal, China's No. 2 Producer of Ship Plates - - Baosteel Group Corp., China's biggest steelmaker, bought a 1.44 percent stake in Xinhua Metal Products Co. in the eastern Chinese province of Jiangxi for 200 million yuan ($27 million). Macau Casino Operator Galaxy Posts Nine-Month Profit of HK$1.11 Billion - - Galaxy Entertainment Group Ltd., a Macau casino operator, posted a HK$1.11 billon ($140 million) profit for the first nine months of the year on income from its flagship casino, which opened in October last year. Yuan Strengthens Against Dollar as Central Bank Urges `Stable' Currencies - - China's yuan advanced for a second day as the People's Bank of China called for more stable currencies and flexible exchange rate mechanisms. China's iPhone Fans Find a Way - - As Beijing consumers snap up hacked versions of the popular phone, Apple bides its time in striking a deal with authorized cellular operatorsChinese B-Schools Lift their Game - - As the schools' reputations improve, more local students are choosing to study at home rather than earn degrees abroadPalm Looks to Gain Ground in Asia - - Palm's Asia-Pacific Managing Director Karthik Srinivasan says the company plans to expand its reach and strengthen its partnershipsBusiness travel takes off in China - - About 53 percent of Chinese firms expect business travel costs to rise in the next year, as trade and investment in the Asia-Pacific region grows, according to a survey released yesterday. China Wins Rights to Biggest Myanmar Gas Field, Beating Stakeholder India - - China won the rights to buy natural gas from Myanmar's biggest field, beating stakeholder India in the race for resources among the world's two-fastest growing major economies. Carlyle Group Says India's Private Equity Deals Could Expand 40% in 2008 - - Carlyle Group, the world's second- biggest buyout firm, said India's private equity market may expand as much as 40 percent next year, even as increased competition for stakes drives down returns. Suzuki Motor Plans to Defend 50% Market Share in India From Cheaper Cars - - Suzuki Motor Corp., the maker of half the cars sold in India, said it will not lose market share to competitors even with the introduction of cars that cost 50 percent less than its cheapest model. Banks in India Face Bad Loan Challenge Despite Rate Increases, Fitch Says - - Indian banks may see bad loans swell as interest-rate increases this year failed to deter consumers from borrowing more, Fitch Ratings said in a report. Grasim Advances on Plan to Sell Stake in Cement Unit to Portugal's Cimpor - - Grasim Industries Ltd., India's third- biggest cement maker, rose on plans to sell its stake in a unit to Cimpor-Cimentos de Portugal SGPS SA, Portugal's biggest maker of the building material. Sensitive Index Rises, Led by Reliance Industries; Mid-Cap Stocks Surge - - India's Sensitive Index rose on expectations the nation's companies may report higher advance tax payments this month signaling an increase in profits. Reliance Industries Ltd. and Larsen & Toubro Ltd. paced gains. Rupee Declines on Speculation India's Central Bank May Have Sold Currency - - India's rupee declined from a two-week high, snapping four days of gains, on speculation the central bank sold it to prevent a stronger currency from hurting exports. Government Bonds Gain on Speculation India Central Bank Buying Securities - - Indian bonds advanced, pushing the benchmark 10-year yield to the lowest in a month, on speculation the central bank is stocking up on debt securities to use as collateral in its daily money market operations. India: The Battle for Orissa - - The state's mineral reserves are attracting the world's largest metals companies, but local tribes won't give up the rights without a fightNorth, South Korea Unite Over Linux - The bitter political foes will team with China on the project, tentatively named "Hana Linux"Samsung Predicts Boom for Flash Chips - - The Korean electronics giant predicted that the oversupply of memory chips will ease in 2008 as growing demand for portable gadgets prompts a shift in production to flash chipsDollar Increases Against Euro, Yen on U.S. Employment, Productivity Gains - - The dollar rose for the first time this week against the euro and yen after U.S. reports showed job growth unexpectedly quickened last month and worker productivity accelerated last quarter. Stocks Rise, Reversing Earlier Decline; Mitsubishi UFJ, Seven & I Gain - - Japanese stocks rose, reversing earlier declines, as investors bought shares of companies tied to domestic demand amid concerns U.S. economic growth is slowing. Mizuho to Inject $1.4 Billion Into Securities Subsidiary to Boost Capital - - Mizuho Financial Group Inc., Japan's second-biggest bank by assets, said it will invest 150 billion yen ($1.4 billion) in its investment banking unit to cover losses from failed U.S. home loans. Wal-Mart Increases Seiyu Stake to 95.1%, Plans to Buy Remaining Shares - - Wal-Mart Stores Inc., the world's biggest retailer, said it boosted its stake in Seiyu Ltd. to 95.1 percent through a tender offer and plans to buy the remaining shares in the Japanese chain. Bonds Fall; Five-Year Yield Climbs From Lowest Since 2006 as Stocks Climb - - Japanese bonds fell, causing five- year yields to climb from a 1 1/2-year low, after a rebound in stocks eroded demand for the relative safety of government debt. Children's Fund Demands J-Power Boost Its Governance, Shareholder Returns - - The Children's Investment Fund Management Ltd., a U.K-based activist fund, has asked Japan's Electric Power Development Co. to boost shareholder returns and sell cross-shareholdings as part of its business proposal. Prospect Asset's Stake in FC Residential Threatens Trust's Tax Exemption - - Prospect Asset Management Inc., the Hawaii-based investment fund run by Curtis Freeze, raised its stake in Japanese property trust FC Residential Investment Co., adding to a concentration of ownership that threatens a tax break. Suzuki Motor Plans to Defend 50% Market Share in India From Cut-Rate Cars - - Suzuki Motor Corp., the maker of half the cars sold in India, said it will not lose market share to competitors even with the introduction of cars that cost 50 percent less than its cheapest model. Tuesday/Monday Standard Bank Investors Approve Sale of $5.4 Billion Stake to China's ICBC - - Standard Bank Group Ltd., Africa's largest lender, won approval for the sale of a 20 percent stake to Industrial and Commercial Bank of China Ltd. for 36.7 billion rand ($5.4 billion), China's largest overseas purchase. Xiashun, Foil Maker, Scraps $270 Million Hong Kong IPO After Index Slumps - - Xiashun Holdings Ltd., China's largest maker of aluminum foil used for food and drinks packaging, canceled a HK$2.1 billion ($270 million) Hong Kong stock sale after the city's key index had its worst month since March 2004. Soho China May Seek to Sell Shares Domestically After Restrictions Lifted - - Soho China Ltd., the Beijing developer that raised $1.9 billion in an initial stock sale in Hong Kong in October, may sell shares in China as soon as regulations allow to bolster its ability to finance land purchases. Shenzhen Bank Plans to Raise $568 Million Selling Shares to Baosteel Group - - Shenzhen Development Bank Co., whose largest shareholder is U.S. buyout firm TPG Inc., plans to raise 4.2 billion yuan ($567 million) selling stock to Baosteel Group Corp. to ease a capital shortage that has hampered growth. China Railway Group's Shares Increase 67% on Starting Trading in Shanghai - - China Railway Group Ltd., the world's third-biggest construction company, surged as much as 67 percent in its trading debut in Shanghai on optimism the nation's growing transport demand will spur earnings. China vies for a piece of Alaskan gas project - - China Petrochemical Corp is among companies including TransCanada Corp and ConocoPhillips competing to build a pipeline that would allow the first commercial production of natural gas from Alaska's North Slope. China to gradually develop corporate bonds, financial derivatives - - China will gradually develop corporate bonds and financial derivatives to provide investors with effective risk management tools, Shang Fulin, chairman of China Securities Regulatory Commission (CSRC), said on Sunday. Shanghai shares likely to remain weak - - Shanghai stocks may remain weak in the short term after suffering their largest monthly decline in more than 13 years in November, analysts said. New banking charges need further study - - There has been a lot of debate and news since the launch on Nov. 19 of a national program by Chinese banks allowing customers to deposit, withdraw, transfer, and check the balance of their accounts at any banking outlet. Investors don't bow to interest rate pressure - - The expected pay-in-advance rush on mortgages didn't occur in Shanghai, despite five interest rate increases this year, banks in Shanghai said.
Shanghai house prices drop last month - - Shanghai house prices dropped an average of seven percent last month from October, according to Shanghai Youwin Real Estate Information Service Co Ltd. China insures 45% of sows nationwide to ease pork shortage - - China insured 44.5 percent of sows nationwide by Nov. 23 as a way to ease a pork shortage and curb the rising price of China's staple meat, according to the China Insurance Regulatory Commission (CIRC). India's Economic Growth Rate May Reach 9% for Third Year, Chidambaram Says - - India's 9 percent economic growth may be sustained for a record third year on prospects of bumper crops and a retreat in crude oil prices, Finance Minister Palaniappan Chidambaram said. Fidelity, Goldman May be Cleared to Retain Indian Commodity Exchange Stake - - Fidelity International Ltd. and Goldman Sachs Group Inc. may get approval from India's government this week to retain stakes in commodity exchanges, allowing them to profit from a surge in trading. India Exports Grew in October at Fastest Pace in 15 Months; Deficit Widens - - India's exports grew in October at the fastest pace in 15 months as companies filled old orders and used hedging to cope with the impact of rupee appreciation. Key Sensitive Index Advances; Reliance Energy Leads Gains on Funding Plan - - India's Sensitive Index rose for a third day, led by Reliance Energy Ltd., the nation's second biggest utility by market value, on speculation the U.S. Federal Reserve will cut interest rates to boost growth. Bajaj Auto Will Use Reserves for Acquisitions After Split, Chairman Says - - Bajaj Auto Ltd., India's second- largest motorcycle maker, will look for companies to buy with reserves left after splitting the company. Nikkei 225 Stock Average Falls on Stronger Yen, Drop in Capital Spending - - Japan's Nikkei 225 Stock Average fell, after the yen strengthened versus the dollar and a report showed corporate investment in the country fell for a second quarter amid concerns global economic growth is slowing. Japan's Capital Spending Falls; Profit Drops for First Time in Five Years - - Japan's companies cut spending for a second quarter as the U.S. housing recession dims the outlook for global economic growth. Dollar Falls Against Yen; Moody's Prepares Rating Cuts on Subprime Losses - - The dollar fell from a two-week high against the yen after Moody's Investors Service said it is preparing the biggest credit rating cuts since subprime mortgage defaults rocked financial markets. Bank of Japan Must Be Aware of Risks of Keeping Rates Too Low, Fukui Says - - Bank of Japan Governor Toshihiko Fukui said keeping interest rates too low could encourage excessive investment and make economic growth unsustainable. Five-Year Government Bonds Rise on Speculation U.S. Import Demand to Wane - - Japan's five-year government bonds advanced, pushing yields toward a 21-month low, on speculation an economic slowdown in the U.S. will encourage central banks to keep borrowing costs from rising. © Copyright 2007 by Finfacts.com |
