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The Wall Street Journal Asia reports from Asia-Pacific's biggest economy, that Japanese companies have grown less optimistic about business conditions as credit-market problems cloud the global-economic outlook and rising raw-material prices chip away at corporate profits. The diffusion index for large manufacturers in the Bank of Japan's quarterly tankan survey of business sentiment fell to 19 from 23 three months earlier. It was the first decline in the index since March and the lowest reading since October 2005. The figure represents the percentage of companies saying business conditions are better minus those who consider conditions worse. Many companies expect their business environment to deteriorate. As they predict demand for their products will decline at home and abroad, large manufacturers expect their sentiment index to fall another four points to 15 by the time of the next survey in March. Smaller manufacturers and non-manufacturers expect worsening in their business conditions. The Wall Street Journal Asia says that it is increasing its employee count, with most of the growth coming in India and China, as well as other emerging markets, according to a person familiar with its hiring. At the end of 2006, IBM employed 355,000 people around the world. IBM's employment growth comes despite selling off its specialty printer business earlier this year. IBM has been hiring steadily in emerging markets, and its total workforce in Brazil, Russia, India and China will approach 100,000 people by the end of the year, up from about 85,000, the person said. A forecast of the year-end-2007 worldwide employment total wasn't available. IBM spokesman, Edward Barbini, confirmed the accuracy of the numbers. He said some of the emerging markets' employment reflects outsourcing of services, software development and manufacturing work that used to be done in Europe and the U.S. But he said much of it reflects growth within those markets where IBM provides products and services to large companies and government agencies, including almost $1 billion in revenue in India alone, this year. This year IBM's employment in India is likely to reach 73,000 people, up from 52,000 people last year. Employment in China will top 13,000, up about 33% from 10,000 last year, the person said. In 2004, China had 5,000 IBM employees. IBM employment in Brazil will end the year with 10,000 people, up 33%. GlaxoSmithKline, the UK-based pharmaceuticals company, which is Europe's largest, plans to channel $100m (£48.9m) by the end of next year into a new neuroscience research centre in China which will become pivotal to its global drug development efforts. Ahead of GSK’s first presentation focused on its emerging neuroscience pipeline drug on Thursday, Moncef Slaoui, the chairman of research and development, has resolved to build a centre in Shanghai responsible for all the company’s work on neuro-degenerative diseases including Alzheimer’s, Parkinson’s disease and multiple sclerosis. “For us, China is not about outsourcing and cheap labour,” he told the Financial Times. “We don’t want to give them the crumbs. It’s about different science. We will link our fate to their fate. Within five to 10 years we will be moving from ‘made in China’ to ‘discovered in China’.” The investment by GSK marks the latest move among large western pharmaceuticals companies to move into the country not only for low-cost manufacturing, clinical trials and the growing sale of medicines, but also to tap into its fast-expanding scientific research base. Roche, AstraZeneca, Novartis, Novo Nordisk, Sanofi-Aventis and other companies are also investing significantly in R&D in China, with the majority concentrated in Shanghai. The GSK decision comes after a six-month analysis around the world co-ordinated by Mr Slaoui designed to identify “the next seedbed for future discoveries”. He concluded that “qualitatively and numerically, China came out on top”, especially in oncology and neurology. His evaluation was based on an estimated 63,000 scientific PhDs in China, including 35,000 who trained in the west and have returned in recent years to their homeland, as well as publications in leading academic journals such as Science, Cell and Neuron.
The Financial Times reports that South Korea’s Fair Trade Commission has raided the local offices of the carmakers Mercedes-Benz, BMW, Lexus and Audi, in a surprise probe that could complicate the progress of bilateral trade agreements with the US and European Union. The raids are likely to give American opponents of the Korea-US trade agreement, signed in June, additional leverage, and make ratification by the US Congress more difficult. The deal, which could boost bilateral trade to almost $100bn (€68bn, £49bn) a year, has been strongly criticised by US carmakers, who say it is lopsided in Korea’s favour. Bill Oberlin, chairman of the American Chamber of Commerce in South Korea, said his organisation was “very concerned” about the possible negative impact the Korean anti-trust investigation could have on US ratification of the trade deal. “Opponents of the agreement will use these raids on import auto dealers to prove that Korea is still not really serious about opening their auto market,” he said. FTC investigators raided the offices of the Korea Automobile Importers’ and Distributors’ Association (Kaida) and the Korean branches of four foreign car companies on Wednesday, said Yoon Dae-sung of Kaida. The investigators wanted to search computers and documents for evidence of the companies colluding against “grey importers” of foreign cars, Mr Yoon said. The Financial Times says that India’s government and business community have taken offence at suggestions that Tata Group, the country’s most respected and acquisitive conglomerate, would be an unsuitable owner for luxury brands in the US. Tata received a second rebuff in a matter of days this week when Orient-Express, a New York-listed hotels, trains and cruises group, rejected its offer of a tie-up with its Taj hotels. After the Tata-controlled Indian Hotels, owner of Taj, increased its stake in Orient-Express to 11.5 per cent, Paul White, chief executive, wrote a blunt letter, saying a link with the chain was not in shareholders’ interests. He said: “Any association of our luxury brands and properties with your brands and properties would result in a reduction in the value of our brands and of our business and would likely lead to erosion” in Orient-Express’s premium room yields. This follows reports last week that US dealers of the ailing Jaguar had objected to Tata Motors as a potential owner of the luxury marque, which, along with Land Rover, has been put up for sale by Ford, its US owner. Referring to “unique image issues” associated with Indian ownership, Ken Gorin, Jaguar Business Operations Council’s chairman, said the US public was not “ready for ownership out of India of a luxury car brand such as Jaguar”. Ravi Kant, Tata Motors’s managing director, strongly disagreed. He told the FT: “We’ve met dealer networks in the US and did not find this in our due diligence. This is a problem of communication. People may not know Tata Group – what our competencies are.” Xinhua, China's State news agency reported that The 15-day U.N. climate change conference ended Saturday with the adoption of a Bali roadmap, which is expected to launch negotiations on a crucial international climate change regime up to 2009. The Bali Roadmap, agreed by over 180 countries meeting in Indonesia's resort island of Bali, includes a clear agenda for the key issues to be negotiated up to 2009, including action for adapting to the negative consequences of climate change, ways to reduce greenhouse gas emissions, ways to deploy climate-friendly technologies and financing both adaptation and mitigation measures. Xinhua also reported that Chinese enterprises are helping to ease global inflation by raising production efficiency, the country's top economic planner said in a press statement. The National Development and Reform Commission (NDRC) refuted foreign reports which said China was exporting inflation reflected in its repeated rises in the consumer price index. The report said price rises in the manufacturing sector, where most of the country's exports came from, were moderate despite rapid general increases. However, it gave no figures. Meanwhile, the overall profitability of Chinese enterprises was stable and their profit ratio was estimated to be 6.4 percent this year, up 0.3 percentage point from the previous year. This meant Chinese enterprises were not pushing inflationary pressures on to foreign consumers, but striving to offset the impact of raw material price hikes by raising production efficiency, which in turn helped to suppress global commodity prices. The report cited World Bank figures that showed the margins of manufacturing enterprises increased despite sustained rises in wages and bulk commodities prices. FINFACTS REPORTS THIS WEEK RELATED TO ASIA-PACIFIC Emerging East Asia to maintain strong growth; Downside risks rise says Asian Development Bank ACCESS TO NEWS REPORTS FROM OTHER SOURCES Friday China Retail Sales Rise at Fastest Pace in Eight Years on Higher Incomes - - China's retail sales increased at the quickest pace in at least eight years on rising incomes, aiding government efforts to curb the economy's dependence on exports and investment for growth. Paulson Focuses on Product Safety in China After Being Stymied on Currency - - Treasury Secretary Henry Paulson elevated the safety of imported goods to the top of his agenda in Beijing as he tries to convince Americans of the benefits of trade with China. Citic Capital Hires Liu, Four Other Executives to Expand in China, Japan - - Citic Capital Holdings Ltd., part- owned by China's biggest state investment company, hired five executives to expand in China and Japan, according to an e- mailed statement. Yuan Gains to Highest Since Link to Dollar Ended as U.S. Talks Continue - - The yuan rose to the highest since its link to the dollar was ended, suggesting China may be allowing faster gains in the currency, as demanded by U.S. Treasury Secretary Henry Paulson. Shanghai Copper Falls on Concern U.S. Rate Cut Not Enough to Boost Demand - - Copper futures fell for a second day in Shanghai amid speculation that a quarter-point cut in U.S. interest rates may not be enough to boost demand in the world's second-largest consumer of the metal. Hong Kong Lowers Base Rate to 5.75% following Cut by U.S. Federal Reserve - - The Hong Kong Monetary Authority lowered its base rate for overnight lending to 5.75 percent after the U.S. Federal Reserve cut borrowing costs. Microsoft Files Lawsuits in 13 Countries Over Counterfeit Software Sales - - Microsoft Corp., the world's biggest software maker, filed 52 lawsuits in 13 countries against resellers who allegedly sold counterfeit software over the Internet. Identity Theft Still Asia's Top Concern - - The fourth edition of the Unisys Security Index revealed that 83% of respondents are anxious about identity theftFactbox: List of documents signed by 18th China-U.S. Joint Commission on Commerce and Trade - - The 18th China-U.S. Joint Commission on Commerce and Trade summoned here Tuesday and signed 14 agreements and memoranda. Chinese toys still popular among Russian gift buyers - - "If possible, I would like to have all these toys," says a golden-hair boy Andriy Ivanov, 6, who is grabbing a teddy bear almost his height in the French chain supermarket Auchan on the Ryazansk Street, southeastern Moscow. Tata Steel Will Invest $1.5 Billion to Develop Iron Ore Mine in Africa - - Tata Steel Ltd., the world's fifth- biggest steelmaker, will spend $1.5 billion building the Mt. Nimba iron ore mine in Ivory Coast to supply its European mills. India's Stock Index Closes Above 20,000 as Economy, Fed Cut Lures Funds - - India's Sensitive Index closed above 20,000 for the first time, driven by record purchases by overseas investors and the world's second-fastest pace of economic growth. Prime Minister Singh Will Decide on Further Relief for India's Exporters - - India's Prime Minister Manmohan Singh will decide on further relief measures for the nation's exporters, whose earnings have been eroded by the strengthening of the rupee against the dollar. Suzuki to Start Exporting Indian-Made Cars to Europe Starting Next Year - - Suzuki Motor Corp., Japan's second- largest minicar-maker, will begin exporting a new India-made car to Europe next year as it aims to boost sales in the continent by about a third over the next three years. India Industrial Production Growth Probably Accelerated Ahead of Festivals - - India's industrial production growth probably accelerated in October as the onset of the festival season and rising incomes spurred consumer spending. Pakistan's Inflation Unexpectedly Slows, Giving Bank Room to Freeze Rates - - Pakistan's inflation unexpectedly slowed in November as food costs declined, giving the central bank room to hold interest rates at a six-year high. Bond Yields Hold at One-Week High on Concern About Indian Company Tax Dues - - India's 10-year bond yield held near the highest in a week on concern corporate tax payments that are due at the end of this week will reduce surplus cash with banks, sapping demand for government debt. Rupee Rises on Speculation Overseas Investors Will Purchase More Stocks - - India's rupee rose on speculation overseas investors will increase their purchases of local stocks to benefit from the nation's record economic growth. India's Pivotal Election - - The BJP's Hindu nationalist and pro-business policies face a test in the western state of Gujarat, where Narendra Modi is up for reelection as chief ministerToyota Leads in Customer Loyalty - - Toyota and its Lexus luxury division finished first and second in J.D. Power's annual customer retention studyStringer: Sony Won't Go It Alone - - Sony's chairman hints he'll let other content providers and gadget makers piggyback on the PlayStation Network if they use Sony's DRM technologyStocks Slide as Fed's Rate Cut Is Deemed Insufficient; Toyota Leads Drop - - Japanese stocks slid the most in three weeks after the Federal Reserve said the U.S. economy is slowing and cut interest rates by a quarter point, disappointing investors. Mitsubishi UFJ Financial Group Inc. led declines. Producer Prices Rose in November as Crude Oil Costs Surged to a Record - - Japan's wholesale inflation accelerated to a 14-month high in November as crude oil prices surged to a record, squeezing profits of companies unable to pass costs to clients. Mizuho Plans to Set Up Investment Bank Unit in Saudi Arabia, People Say - - Mizuho Financial Group Inc., Japan's third-largest bank by market value, plans to set up an investment bank in Saudi Arabia, home to the world's best-performing stock market this quarter. IHI Plunges After Tokyo Stock Exchange Puts Stock on Watch for Delisting - - IHI Corp., Japan's third-biggest maker of heavy equipment, slid to a two-year low in Tokyo trading on concern it may be delisted after reporting 30 billion yen ($268 million) of unexpected losses. Two-Year Government Bonds Gain After Sliding Stocks Spur Flight to Safety - - Japanese government bonds rose after global stocks tumbled on speculation yesterday's Federal Reserve interest-rate cut was too small to prevent a U.S. recession. Japan Economy Headed for `Mild Recession' in 2008, Morgan Stanley Says - - Japan's economy is headed for a ``mild recession'' that could be worsened should a bigger-than- expected U.S. slowdown halt the nation's export-led expansion, Morgan Stanley said. Yen Falls as Japan Investors May Buy Overseas Assets With Year-End Bonuses - - The yen fell against the euro, after its biggest gain in a month, on speculation Japanese investors are sending money overseas to purchase higher-yielding assets. Current-Account Surplus Widened in October on Exports to Asia, Investment - - Japan's current-account surplus widened for a 10th month in October as automobile exports surged and investors earned more from overseas assets. Japan, China eye Olympics flights - - Japan and China will consider allowing flights between Tokyo's Haneda airport and Beijing's Nanyuan airport before the Beijing Olympics next August, transport minister Tetsuzo Fuyushiba said Tuesday. Toshiba boasts battery that recharges 90% in five minutes - - Toshiba will begin shipping in March a quick-charging new battery for forklifts, construction machinery and other industrial use, the electronics maker said Tuesday. Honda comes out with new version of its Asimo robot - - Honda Motor Co. on Tuesday unveiled an updated version of its Asimo humanoid robot that can operate more autonomously — picking up a tray to serve tea to guests, or charging its battery on its own when its power falls under a certain level or when it has worked too hard. ¥300 billion in Tokyo tax yield set for rural rescue - - Tokyo Gov. Shintaro Ishihara agreed Tuesday to a request from Prime Minister Yasuo Fukuda to hand over ¥300 billion in tax revenues to fiscally distressed municipalities as a provisional step to help reduce the financial gap between urban and rural areas. Thursday Hong Kong Submits Proposal for Chinese Mainlanders to Buy Hang Seng Stocks - - Hong Kong has submitted a proposal to the Chinese cabinet for mainland individuals to buy shares directly on the city's stock market, paving the way for a pilot program that has been plagued by repeated delays. Fortescue Seeks $1 Billion in Loans From China for Expansion, Bankers Say - - Fortescue Metals Group Ltd., aiming to become Australia's third biggest iron ore producer, is seeking at least $1 billion in loans from Chinese banks to fund expansion, said two bankers involved in the talks. Paulson Highlights Product Safety as China Ignores Calls for Stronger Yuan - - U.S. Treasury Secretary Henry Paulson said China's pledge to improve the quality of its exports shows the success of twice-yearly economic talks, even after his calls for faster gains by the yuan were ignored. China May Not Pay Refiners Subsidies This Year, Government Official Says - - China may not subsidize oil refiners this year to compensate them for selling fuels at state-controlled prices, as it did in 2005 and 2006, a government official said. U.S., China Agree They Must Fight Protectionism, Treasury's Paulson Says - - U.S. Treasury Secretary Henry Paulson said China and the U.S. agree they must fight protectionism in their own countries, describing the third round of economic talks between the two nations as ``constructive.'' Sinoma, China Cement Maker, Raises $538 Million in Share Sale, People Say - - China National Materials Co., the world's largest provider of cement engineering services and equipment, raised HK$4.19 billion ($538 million) in a Hong Kong initial stock sale, people familiar with the matter said. ArcelorMittal Agrees to Take Over China Oriental, Valued at $2.4 Billion - - ArcelorMittal, the world's largest steelmaker, agreed to take over China Oriental Group Co. to gain a foothold in the fastest-growing steel market, valuing the company at a minimum of HK$18.6 billion ($2.4 billion). Stock in the takeover target surged. Goldwind Plans $244 Million Shenzhen IPO as China Combats Climate Change - - Goldwind Science & Technology Co., China's largest maker of wind turbines, plans to raise 1.8 billion yuan ($244 million) in an initial share sale to boost output as the country seeks to reduce its reliance on coal. Low-cost homes remain top priority - - Ensuring the housing supply for low and middle-income families will remain a government priority next year, officials said. China begins compulsory procurement of energy-saving items - - The Chinese government is to enforce the procurement of energy-efficient products by departments and local authorities with a new list of compulsory purchase items. Oman Oil in Talks With Tata Group, Reliance on Ventures in Fuel, Chemicals - - Oman Oil Co. is in talks with Reliance Industries Ltd., India's largest company by market value, and the Tata Group for ventures to meet rising demand for fuels and chemicals. GMR Infrastructure Climbs After Soros, Citigroup Buy Stake for $1 Billion - - GMR Infrastructure Ltd., the operator of New Delhi airport, rose in Mumbai trading after selling $1 billion of shares to investors including George Soros and Citigroup Inc. to build roads and airports in India. Bharti Airtel Debt Rating Raised to Investment Grade by Standard & Poor's - - Bharti Airtel Ltd., India's largest mobile-phone operator, had its debt rating raised to investment grade for the first time by Standard & Poor's, which cited the company's earnings. Asia Energy Stocks Are Still Best Bet on Growth as Oil Rises, Merrill Says - - Climate change negotiators may fail to produce an agenda leading to a new treaty to fight global warming because of the slow pace of talks at a United Nations meeting in Bali, Indonesia, the conference organizer said. Benchmark Indian Stock Index is Little Changed; ITC Rises as Bharti Falls - - India's Sensitive Index swung between gains and losses. ITC Ltd. gained on expectations the diversified company will spin off some of its units into separate companies. Rupee May Advance on Speculation Record Stock Market Rally Will Lure Funds - - India's rupee may gain as a rally in the nation's stock market stokes speculation overseas funds are buying more local equities. JSW Steel Surges to Record on Speculation it May Acquire Iron Ore Mine - - JSW Steel Ltd., India's fourth- largest producer of the metal, surged in Mumbai trading on speculation the company may buy an iron ore mine to secure supplies of the steelmaking ingredient. Asia Energy Stocks Are Still Best Bet on Growth as Oil Rises, Merrill Says - - Asian energy stocks are the best performers in the region in 2007, as the price of crude oil climbed above $99 a barrel. They're still worth buying, Merrill Lynch & Co. says. Sharp sues Samsung in Seoul over LCD patents - - Sharp Corp. sued Samsung Electronics Co. of South Korea on Wednesday, alleging patent violations for liquid crystal displays. It demanded damages and a halt to manufacturing and sales of affected TVs and display panels. Yoshinoya plans to rope in Don steak restaurant chain - - Yoshinoya Holdings Co. plans to gain control of Don Co., Japan's biggest steak restaurant chain, via a series of share transactions, sources said Wednesday. Stocks Drop Most in Four Months on Concern Fed Liquidity Boost Won't Work - - Japanese shares fell the most in four months, on concern a plan by central banks to increase liquidity may not suffice to stem credit losses by financial companies globally. Yen Rises From One-Month Low Against Dollar as Debt Market Losses Increase - - The yen rose from a one-month low against the dollar on speculation widening credit-market losses will prompt investors to shun higher-yielding assets funded by loans in Japan. Denso Inside Toyota Poised to Prove Auto Industry's Top Performer in 2008 - - Denso Corp. may be the automobile industry's most important company -- and single best investment - - that beleaguered Toyota Motor Corp. shareholders may want to turn to. Ten-Year Government Bonds Advance as Local Stocks Fall on Credit Concerns - - Japanese 10-year bonds rose for a second day after a slide in local equities increased demand for the security of government debt. BOJ's Iwata Says Subprime Collapse Effect Is Spreading Among Japan's Banks - - Bank of Japan Deputy Governor Kazumasa Iwata said the effect of the U.S. subprime mortgage collapse is gradually spreading among Japanese lenders although the impact hasn't been serious. CFS Rejects Aeon Drugstore Alliance in Favor of Ain Pharmaciez Takeover - - CFS Corp., the Japanese drugstore chain subject to a takeover offer by Ain Pharmaciez Inc., rejected a competing proposal by Aeon Corp. Steel Partners Asks Noritz to `Improve Value' by Cutting Costs, Businesses - - Warren Lichtenstein's Steel Partners Japan Strategic Fund (Offshore) LP said it asked Noritz Corp. to ``improve corporate value'' by cutting costs and focusing on its core business of household water heaters. TCI Activist Fund Says It Will Stick With Japan, Invest More in Asia - - The Children's Investment Fund Management Ltd., the U.K.-based activist fund with more than $10 billion of assets, said it won't let Japanese companies stymie its efforts to boost shareholder value. Wednesday China Retail Sales Rise at Fastest Pace in Eight Years on Higher Incomes - - China's retail sales increased at the quickest pace in at least eight years on rising incomes, aiding government efforts to curb the economy's dependence on exports and investment for growth. Paulson Focuses on Product Safety in China After Being Stymied on Currency - - Treasury Secretary Henry Paulson elevated the safety of imported goods to the top of his agenda in Beijing as he tries to convince Americans of the benefits of trade with China. Citic Capital Hires Liu, Four Other Executives to Expand in China, Japan - - Citic Capital Holdings Ltd., part- owned by China's biggest state investment company, hired five executives to expand in China and Japan, according to an e- mailed statement. Yuan Gains to Highest Since Link to Dollar Ended as U.S. Talks Continue - - The yuan rose to the highest since its link to the dollar was ended, suggesting China may be allowing faster gains in the currency, as demanded by U.S. Treasury Secretary Henry Paulson. Shanghai Copper Falls on Concern U.S. Rate Cut Not Enough to Boost Demand - - Copper futures fell for a second day in Shanghai amid speculation that a quarter-point cut in U.S. interest rates may not be enough to boost demand in the world's second-largest consumer of the metal. Hong Kong Lowers Base Rate to 5.75% following Cut by U.S. Federal Reserve - - The Hong Kong Monetary Authority lowered its base rate for overnight lending to 5.75 percent after the U.S. Federal Reserve cut borrowing costs. Microsoft Files Lawsuits in 13 Countries Over Counterfeit Software Sales - - Microsoft Corp., the world's biggest software maker, filed 52 lawsuits in 13 countries against resellers who allegedly sold counterfeit software over the Internet. Identity Theft Still Asia's Top Concern - - The fourth edition of the Unisys Security Index revealed that 83% of respondents are anxious about identity theftFactbox: List of documents signed by 18th China-U.S. Joint Commission on Commerce and Trade - - The 18th China-U.S. Joint Commission on Commerce and Trade summoned here Tuesday and signed 14 agreements and memoranda. Chinese toys still popular among Russian gift buyers - - "If possible, I would like to have all these toys," says a golden-hair boy Andriy Ivanov, 6, who is grabbing a teddy bear almost his height in the French chain supermarket Auchan on the Ryazansk Street, southeastern Moscow. Tata Steel Will Invest $1.5 Billion to Develop Iron Ore Mine in Africa - - Tata Steel Ltd., the world's fifth- biggest steelmaker, will spend $1.5 billion building the Mt. Nimba iron ore mine in Ivory Coast to supply its European mills. India's Stock Index Closes Above 20,000 as Economy, Fed Cut Lures Funds - - India's Sensitive Index closed above 20,000 for the first time, driven by record purchases by overseas investors and the world's second-fastest pace of economic growth. Prime Minister Singh Will Decide on Further Relief for India's Exporters - - India's Prime Minister Manmohan Singh will decide on further relief measures for the nation's exporters, whose earnings have been eroded by the strengthening of the rupee against the dollar. Suzuki to Start Exporting Indian-Made Cars to Europe Starting Next Year - - Suzuki Motor Corp., Japan's second- largest minicar-maker, will begin exporting a new India-made car to Europe next year as it aims to boost sales in the continent by about a third over the next three years. India Industrial Production Growth Probably Accelerated Ahead of Festivals - - India's industrial production growth probably accelerated in October as the onset of the festival season and rising incomes spurred consumer spending. Pakistan's Inflation Unexpectedly Slows, Giving Bank Room to Freeze Rates - - Pakistan's inflation unexpectedly slowed in November as food costs declined, giving the central bank room to hold interest rates at a six-year high. Bond Yields Hold at One-Week High on Concern About Indian Company Tax Dues - - India's 10-year bond yield held near the highest in a week on concern corporate tax payments that are due at the end of this week will reduce surplus cash with banks, sapping demand for government debt. Rupee Rises on Speculation Overseas Investors Will Purchase More Stocks - - India's rupee rose on speculation overseas investors will increase their purchases of local stocks to benefit from the nation's record economic growth. India's Pivotal Election - - The BJP's Hindu nationalist and pro-business policies face a test in the western state of Gujarat, where Narendra Modi is up for reelection as chief ministerToyota Leads in Customer Loyalty - - Toyota and its Lexus luxury division finished first and second in J.D. Power's annual customer retention studyStringer: Sony Won't Go It Alone - - Sony's chairman hints he'll let other content providers and gadget makers piggyback on the PlayStation Network if they use Sony's DRM technologyStocks Slide as Fed's Rate Cut Is Deemed Insufficient; Toyota Leads Drop - - Japanese stocks slid the most in three weeks after the Federal Reserve said the U.S. economy is slowing and cut interest rates by a quarter point, disappointing investors. Mitsubishi UFJ Financial Group Inc. led declines. Producer Prices Rose in November as Crude Oil Costs Surged to a Record - - Japan's wholesale inflation accelerated to a 14-month high in November as crude oil prices surged to a record, squeezing profits of companies unable to pass costs to clients. Mizuho Plans to Set Up Investment Bank Unit in Saudi Arabia, People Say - - Mizuho Financial Group Inc., Japan's third-largest bank by market value, plans to set up an investment bank in Saudi Arabia, home to the world's best-performing stock market this quarter. IHI Plunges After Tokyo Stock Exchange Puts Stock on Watch for Delisting - - IHI Corp., Japan's third-biggest maker of heavy equipment, slid to a two-year low in Tokyo trading on concern it may be delisted after reporting 30 billion yen ($268 million) of unexpected losses. Two-Year Government Bonds Gain After Sliding Stocks Spur Flight to Safety - - Japanese government bonds rose after global stocks tumbled on speculation yesterday's Federal Reserve interest-rate cut was too small to prevent a U.S. recession. Japan Economy Headed for `Mild Recession' in 2008, Morgan Stanley Says - - Japan's economy is headed for a ``mild recession'' that could be worsened should a bigger-than- expected U.S. slowdown halt the nation's export-led expansion, Morgan Stanley said. Yen Falls as Japan Investors May Buy Overseas Assets With Year-End Bonuses - - The yen fell against the euro, after its biggest gain in a month, on speculation Japanese investors are sending money overseas to purchase higher-yielding assets. Current-Account Surplus Widened in October on Exports to Asia, Investment - - Japan's current-account surplus widened for a 10th month in October as automobile exports surged and investors earned more from overseas assets. Japan, China eye Olympics flights - - Japan and China will consider allowing flights between Tokyo's Haneda airport and Beijing's Nanyuan airport before the Beijing Olympics next August, transport minister Tetsuzo Fuyushiba said Tuesday. Toshiba boasts battery that recharges 90% in five minutes - - Toshiba will begin shipping in March a quick-charging new battery for forklifts, construction machinery and other industrial use, the electronics maker said Tuesday. Honda comes out with new version of its Asimo robot - - Honda Motor Co. on Tuesday unveiled an updated version of its Asimo humanoid robot that can operate more autonomously — picking up a tray to serve tea to guests, or charging its battery on its own when its power falls under a certain level or when it has worked too hard. ¥300 billion in Tokyo tax yield set for rural rescue - - Tokyo Gov. Shintaro Ishihara agreed Tuesday to a request from Prime Minister Yasuo Fukuda to hand over ¥300 billion in tax revenues to fiscally distressed municipalities as a provisional step to help reduce the financial gap between urban and rural areas. Tuesday China Inflation Surges to Almost 11-Year High, Adding Pressure on Currency - - China's inflation accelerated to the fastest pace in almost 11 years, supporting U.S. Treasury Secretary Henry Paulson's case that a stronger yuan is needed to help cool the economy. Credit Suisse Hires Jack So, Former PCCW Chief, to Bolster China Business - - Credit Suisse Group hired Jack So as Greater China vice chairman, tapping the contacts he built over three decades as a public servant and head of Hong Kong's biggest phone company. Danone to Appeal China Ruling Over Ownership of Bottled-Water Brand Wahaha - - Groupe Danone SA, the French food and beverage company, said it will appeal an arbitrator's award of control of the bottled-water brand Wahaha to a Chinese company. China to Use Currency Policy to Curb Balance of Payment Surplus, Zhou Says - - China will use currency policy to help curb a balance of payments surplus, which is the main reason for money supply growth, People's Bank of China Governor Zhou Xiaochuan said. Tangshan Steel to Sell $406 Million of Yuan Bonds to Fund Output Expansion - - Tangshan Iron & Steel Co., the publicly traded unit of China's second-biggest steelmaker, will this week sell 3 billion yuan ($406 million) of bonds that can be converted into shares to fund increased production. Taiwan Plans to Attract Overseas Companies to Sell Shares, Economic Says - - Taiwan's Financial Supervisory Commission plans to create an international board aimed at attracting overseas companies to list shares, the Economic Daily News reported, citing commission Chairman Hu Sheng-cheng. India, China Should Shield Southeast Asia From Slowdown, Indonesia Says - - Indonesia, targeting decade-high economic growth next year, expects expansions in India and China to shield Southeast Asia from a U.S. slowdown. China's November Vehicle Sales Rise 16% as Economic Growth Boosts Spending - - China's vehicle sales rose 16 percent in November from a year earlier, as economic growth boosted demand in the world's second-largest auto market. Asia's U.S. Wireless Foray - - Asia's wireless operators are looking to the U.S. market. Their experience in mobile data services could pay off statesideInvestors in Start-Ups Look to China - - The mainland is trying to keep entrepreneurs at home with a number of initiatives, including the development of a Nasdaq-like stock market for younger companiesChina's CPI up 6.9% in November - - China's consumer price index (CPI) jumped by 6.9 percent in November on food price increases, the National Bureau of Statistics (NBS) said on Tuesday. China's producer prices up 4.6% in Nov. on surging crude oil costs - - Surging crude prices drove up China's producer price index (PPI) by 4.6 percent year-on-year in November, the largest monthly increase in more than two years, the National Bureau of Statistics (NBS) said Monday. China triples QFII quota ahead of key meetings with U.S. officials - - China has underscored its intention to open up the country's financial markets by tripling the investment quota of qualified foreign institutional investors (QFII) from 10 billion U.S. dollars to 30 billion dollars. Coca-Cola signs on as 2010 Shanghai World Expo global partner - - The Coca-Cola Company has signed on to become the seventh global partner for the 2010 World Expo in the China's economic hub Shanghai. India, China Shielding Southeast Asia From Global Slowdown, Indonesia Says - - Indonesia, targeting decade-high economic growth next year, expects expansions in India and China to shield Southeast Asia from a U.S. slowdown. India Industrial Production Growth Probably Accelerated Ahead of Festivals - - India's industrial production growth probably accelerated in October as the onset of the festival season and rising incomes spurred consumer spending. Asian Stocks Advance After U.S. Home Sales Climb; Toyota, Westfield Rise - - China's inflation accelerated to the fastest pace in almost 11 years, supporting U.S. Treasury Secretary Henry Paulson's case that a stronger yuan is needed to help cool the economy. Crude Oil Trades Near $88 After Falling on Signs of Slowing U.S. Demand - - Crude oil traded near $88 a barrel in New York after falling the past two days on speculation slowing growth in the U.S. will trim demand and help increase stockpiles. Philippine Peso, Indian Rupee, Chinese Yuan, Yen: Asian Currency Preview - - The following events and economic reports may influence current trading in Asian currencies. Pakistani Former Credit Suisse Banker Leaked Secret Tips, Prosecutor Says - - Ex-Credit Suisse Group banker Hafiz Muhammad Zubair Naseem tipped a friend to secret news about a pending deal just six minutes after accessing confidential data, a prosecutor said at the start of an insider-trading trial. Key Stock Index Declines, Led by Housing Development Finance, Bharat Heavy - - India's Sensitive Index fell for the first time in four days after some investors judged the recent gains excessive. Mortgage lender Housing Development Finance Corp. led declines. Shares Rise on UBS Capital Plan, U.S. Home Sales, Led by Banks, Toyota - - Japanese stocks climbed after UBS AG said it will receive a capital injection and U.S. home sales unexpectedly rose, boosting speculation the worst may be over from credit-market losses and a housing slump in the world's largest economy. Yen Falls to One-Month Low Versus Euro, Dollar on Fed Rate-Cut Speculation - - The yen declined to a one-month low versus the dollar and the euro on speculation the Federal Reserve will cut interest rates, encouraging investors to buy higher-yielding assets funded by loans in Japan. Sparx Plans to Boost Investments in Japanese Companies With Branding Power - - Sparx Asset Management Co., Asia's biggest hedge fund, will boost investments in Japanese companies whose brand names position them to benefit from rising spending in the region, said President Shuhei Abe, naming consumer electronics maker Sony Corp. as an example. IHI May Restate 2006 Earnings, Take $178 Million Charge, Nikkei Reports - - IHI Corp., Japan's third-biggest maker of heavy equipment, may restate its fiscal 2006 earnings to include more than 20 billion yen ($178 million) of losses on plant engineering projects, the Nikkei newspaper said. Eisai Shares Decline After Agreement to Buy MGI Pharma for $3.9 Billion - - Eisai Co., maker of the world's best- selling Alzheimer's drug Aricept, fell the most in three weeks in Tokyo after the company agreed to acquire U.S. drugmaker MGI Pharma Inc. for $3.9 billion to gain more cancer drugs. Investors Should Buy Japan's Inflation-Linked Bonds, Mitsubishi UFJ Says - - Investors should buy Japan's inflation-linked bonds as easing concerns over subprime-related losses improve the outlook for economic growth and consumer prices, according to Mitsubishi UFJ Financial Group Inc. Ten-Year Government Bonds Fall as Capital Injections Damp Demand for Debt - - Japan's 10-year bonds fell on speculation demand for higher-yielding assets will increase as financial institutions secure funding to cover subprime-related losses. Topcon Gains Most in 4 Months on Sokkia Purchase; Sokkia to Rise by Limit - - Topcon Corp., a Japanese measuring equipment maker, had its biggest gain in four months in Tokyo after announcing it will acquire smaller rival Sokkia Co. for as much as 22.2 billion yen ($198 million). Sokkia is poised to gain. Japan Moves to End Handset Subsidies - - The government is promoting the separation of handset and service charges as part of its new mobile business revitalization planBangladesh to get $324 mln Japanese loan assistance - - Bangladesh will get Japanese loan assistance of 324 million U.S. dollars for implementing three projects in power, railway construction and water management. Monday Going Green Pays Off for Asian Telecoms - - Only eight operators answer Green Telecom's carbon survey, but BT proves cutting emissions can cut costsAsia Safe From Global ICT Slowdown - - Tech spending is set to slump in 2008 due to the U.S. economic downturn, but close ties to Asia may protect Australia and New ZealandPaulson's Push for Stronger Yuan Weakened by China's Global Investing Boom - - As U.S. Treasury Secretary Henry Paulson visits China this week to push for faster appreciation of the yuan, the bigger issue may be what China is doing to strengthen the dollar. China's Trade Surplus Probably Held Near Record, Fueling Tension With U.S. - - China's trade surplus probably held near a record in November, adding fuel to U.S. Treasury Secretary Henry Paulson's demands for faster yuan appreciation. Iran, China Petrochemical Sign $2 Billion Agreement to Develop Oil Field - - China Petrochemical Corp. signed a $2 billion agreement to develop Iran's Yadavaran oil field, underscoring closer ties with the Middle Eastern nation as the U.S. and Europe curb investment. Chinese Inflation Probably Stayed at Highest Level in Decade on Food, Oil - - China's inflation probably held at the highest level in more than a decade, adding pressure on the central bank to raise interest rates for a sixth time this year or let the yuan appreciate faster. Rio Tinto Bond Risk Climbs to Record on Report Blackstone, China May Bid - - The risk of Rio Tinto Group defaulting on its debt rose to a record following a report Blackstone Group LP is planning a bid for the mining company that may include China's sovereign wealth fund. China Will `Steadily Improve' Convertibility of Capital Account, SAFE Says - - China will ``steadily improve'' the mechanism for converting the yuan on the capital account, an official at the nation's top currency regulator said. China's Yuan Gains Before Paulson Arrives to Press for Faster Appreciation - - The yuan strengthened for a second day ahead of a visit by U.S. Treasury Secretary Henry Paulson this week when he's likely to keep up the pressure on China to allow faster gains in the exchange rate. Nokia Siemens Wins Wireless Network Expansion Contract From China Mobile - - Nokia Siemens Networks, the world's second-biggest maker of wireless networks, won a contract in China. Bharti, Idea Cellular Rise on Forming Indian Tower Venture With Vodafone - - Bharti Airtel Ltd., India's biggest mobile-phone operator, rose to its highest in more than a month in Mumbai trading on expectations a venture to share towers with Vodafone Group Plc's local unit will help cut costs. India May Raise Gasoline Prices as Refinery Losses Soar to $18 Billion - - India's government may raise fuel prices for the first time in 18 months as state-owned refineries are set to lose as much as 700 billion rupees ($17.8 billion) selling gasoline and diesel below cost. Volvo to Invest $350 Million in Indian Truck Venture With Eicher Motors - - Volvo AB, the world's second-largest truckmaker, will create a joint venture with Indian vehicle manufacturer Eicher Motors Ltd. as the Swedish company vies for a larger share of the fourth-largest truck market. Indian Sensitive Index is Little Changed; Bharti Rises, Reliance Declines - - India's Sensitive Index swung between gains and losses. Bharti Airtel Ltd., the nation's largest wireless carrier, rose after announcing a venture to share infrastructure with smaller rivals. Rupee May Gain For 3rd Day on Speculation Funds Will Buy More Local Stocks - - India's rupee may gain for a third day on speculation overseas investors will buy more equities to benefit from record economic growth. Government Bonds Little Changed as Tax Payments Reduce Funds With Lenders - - India's 10-year bonds were little changed on speculation advance tax payments by companies due at the end of this week will leave banks, the biggest buyers of government debt, with fewer funds. Wheat Price Average to Increase to Record, USDA Undersecretary Keenum Says - - Average wheat prices will rise to a record next year even as farmers increase planting, U.S. Department of Agriculture Undersecretary Mark Keenum said. Pakistan's Inflation Probably Held Near 29-Month High in November on Food - - Pakistan's inflation probably held in November near the highest level since 2005 on soaring food costs, increasing the possibility of an interest-rate increase by the central bank next month. Eisai Agrees to Buy Minnesota-based MGI Pharma for $3.9 Billion in Cash - - Eisai Co., the maker of the world's best-selling Alzheimer's medicine, agreed to acquire MGI Pharma Inc. for $3.9 billion in cash. Shares Decline on U.S. Employment Report; Banks Advance on Lending Data - - Japanese stocks fell for the first time in four days after a U.S. jobs report raised speculation that Federal Reserve policy makers will cut interest rates less than expected, mitigating a boost to the world's largest economy. TPG to Pay $282 Million for Stake in Japanese Consumer Lender NIS Group - - TPG Inc., the buyout group run by David Bonderman and James Coulter, will spend $282 million for a stake in NIS Group Co., a money-losing Japanese lender to consumers and small businesses. Dollar Trades Near One-Month High Against Yen as Fed May Limit Rate Cut - - The dollar traded near a one-month high against the yen on speculation the Federal Reserve will limit the reduction in its benchmark interest rate to a quarter- percentage point tomorrow. Japan's Bond Futures Gain as Central Bank May Delay Raising Interest Rates - - Japan's bond futures gained on speculation an interest-rate cut in the U.S. tomorrow will give local policy makers less room to raise borrowing costs. NEC Targets `Dominant' Share of Market for Wireless Internet Equipment - - NEC Corp., Japan's largest maker of personal computers, said it plans to become the dominant provider of network equipment used in the next-generation of wireless Internet access technology. Merchant Sentiment Plunges to Four-Year Low as Gasoline Costs Reach Record - - Japanese merchants in November became the most pessimistic they've been in four years, as stagnant wages and record gasoline prices prompt consumers to pare spending. Topcon to Buy Rival Measuring-Equipment Maker Sokkia for $199 Million - - Topcon Corp., a Japanese measuring equipment maker, offered to pay as much as 22.2 billion yen ($199 million) to acquire smaller rival Sokkia Co. to compete overseas. Mitsubishi takes over Kentucky Fried Chicken Japan for ¥14.83 billion - - Trading house Mitsubishi Corp. said Saturday that it successfully completed a friendly takeover of Kentucky Fried Chicken Japan Ltd., which owns more than 1,500 KFC and Pizza Hut restaurants around the country.Toyota's Matrix, Reloaded - - The Corolla's more exciting kid brother may have the body of a five-door hatch, but it comes with the soul of a two-door sports carHyundai Targets the Lexus Set - - The Korean carmaker's new flagship sedan is named Genesis, and it heralds the recasting of an image from economy to luxury© Copyright 2007 by Finfacts.com | |||||||||||||||||||||||||||||||||||||||||
