OPEC meets today to discuss oil price

OPEC meets today to discuss oil price
29-11-2008

Members of the oil producers cartel OPEC meet in Cairo later today to discuss the recent steep fall in the price of oil. In July, oil was selling for around one-hundred-and-fifty dollars a barrel. Since then, the price has fallen by two-thirds -- so OPEC countries may now push for cuts in production.
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OPEC ends meeting without new output cut
30-11-2008

OPEC has ended a meeting in Cairo without announcing new output cuts. The oil producing group's president, Chakib Khelil, says OPEC will wait until a meeting in Algeria on December the 17th to decide whether to cut additional crude supplies from the market. Mr Khelil says oil ministers of the Organization of Petroleum Exporting Countries agreed to take any additional action at that time to balance supply and demand. His comments came after the group convened what it called a consultative meeting in Cairo to take stock of market situations and to asses whether members were complying with a 1.5 million barrel per day output cut announced on October the 24th in Vienna.

Wall St gains overnight in thin trade

Wall St gains overnight in thin trade
29-11-2008

US stocks rose overnight on light volume in an abbreviated session, capping the best week for the S&P 500 since at least 1980, as investors hoped government and central bank moves unveiled this week would boost the economy. For the Dow industrials, Friday's close marked five straight days of gains for the first time since November 2007. The Dow shot up 102 points, or 1.17 percent, to end at 8,829. The Standard & Poor's 500 Index advanced 8 points, or 0.96 percent, to finish at 896. The Nasdaq Composite Index added 3 points, or 0.23 percent, to close at 1,535.

Japan sinks deeper into recession

Japan sinks deeper into recession
29-11-2008

A raft of gloomy economic data shows Japan sank deeper into recession last month. Factory output slumped 3.1 percent from September when it rose over one percent. Household spending slid 3.8 percent - the eighth consecutive month of decline. Some economists described the figures as "horrendous" and "stunningly bad". They say Japan's economy appeared to be deteriorating more quickly than expected, dragged down by plunging exports.

Protest by Lehman products investors

Protest by Lehman products investors
29-11-2008

A group of investors who bought Lehman Brothers' products through Standard Chartered Bank have marched to the bank's biggest shareholder, Singapore's Temasek Holdings, after the bank refused to meet them. One of the investors, Philip Khan, says Standard Chartered has been insincere in handling their complaints. He also said the investors were disappointed to hear that banks might not be able to proceed with the buy-back plan for minibonds, due to U.S. legal restrictions. He said he welcomed legislator Regina Ip's proposal for the government to set aside $20 billion to buy back the products. But he doubted if the administration would accept it.

HSBC asked to buy back headquarters

HSBC asked to buy back headquarters
29-11-2008

Spanish property developer, Metrovacesa, has proposed to sell the building of HSBC's London Headquarters back to the bank for 838 million pounds. HSBC sold the property to the firm for 1.09 billion pounds in April last year. But the developer is facing problems financing its loan on the property, given that commercial property prices in central London have fallen by over a third since it made the purchase. HSBC says it's in talks with the Spanish developer.

French jobless number surges in October

French jobless number surges in October
28-11-2008

The benchmark unemployment indicator in France jumped 2.4 percent in October compared with September, the strongest monthly surge since March 1993, the employment ministry reported. Reacting to the news, Finance Minister Christine Lagarde said the figures demonstrated "the need for a wide-ranging stimulus plan" based on "support for business investment, which is a lasting guarantee for job creation." The employment ministry said the number of people looking for a full-time job in October and who had not worked more than 78 hours in the month, rose by 46,900 from September to reach a total of 2,004,500. The figures were corrected for seasonal variations.

Toy workers 'get improved payout'

Toy workers 'get improved payout'
28-11-2008

The China Daily says a Hong Kong toy manufacturer has agreed to improve compensation terms for laid-off factory workers who clashed violently with police in Dongguan earlier this week. The factory is owned by one of the SAR's biggest toymakers, Kader, which has laid off nearly 600 of the 8000 workers at the Dongguan plant. The China Daily said the laid off workers would be offered a new compensation plan, but it gave no details.

Minibond buy back 'best option'

Minibond buy back 'best option'
28-11-2008

The Financial Secretary, John Tsang, says the proposal for banks to buy back Lehman Brothers-linked minibonds is the best option available. He was speaking after media reports said the proposal could fall through due to legal issues. Mr Tsang stressed the government's stance remains that it wants investors to get their money back.

European stock markets higher

European stock markets higher
28-11-2008

European stock markets closed higher Thursday. The London FTSE 100 index of leading shares was up 1.77 percent at 4,226 points. In Paris, the CAC 40 jumped 2.54 percent to 3,250 and in Frankfurt the DAX gained 2.3 percent to 4,665.

HK's export increase sharply in October

HK's export increase sharply in October
27-11-2008

Hong Kong's exports rose 9.4 percent last month - up sharply from 3.6 percent in September. They were mainly driven by a rebound in exports to Asia - which went up 13 percent. Imports were up 11.3 percent, following a 3.9 percent rise in September. The government said the territory was likely to see weaker trade figures in the coming months, on the back of the global financial crisis.

Mitsubishi Motors cuts jobs

Mitsubishi Motors cuts jobs
27-11-2008

Mitsubishi Motors will lay off 1,100 temporary workers in Japan. That's one-third of its temporary workforce. It said it needed to reduce production to cope with sagging sales. The affected workers will not have their contracts renewed when they expire at the end of March. Toyota, Nissan, Mazda and Isuzu have also announced job cuts, to weather the financial storm.

Agency warns downturn deepening

Agency warns downturn deepening
27-11-2008

China's top economic planning agency has warned that the downturn in the economy is deepening as the global financial crisis spreads, foreshadowing rising unemployment and social unrest. The warning came a day after the People's Bank of China made its biggest interest rate cut in 11 years. During a news conference in Beijing, the chairman of the National Development and Reform Commission, Zhang Ping, said the mainland economy faced growing downside pressure, owing to dramatic changes in the global financial outlook. The State Information Centre, a government think-tank, has predicted that annual economic growth will slow to 8 percent this quarter from 9 percent in the third quarter due to weakness in exports and a slump in the property market. But Mr Zhang said some domestic economic indicators in November would point to an accelerated slowdown. And he warned that excessive bankruptcies and production cuts would lead to massive unemployment, stirring social unrest. He said the mainland would adopt ever more forceful and effective measures to combat the slowdown, adding that Wednesday's "aggressive" interest rate cut was part of the effort. Mr Zhang also gave a break down of how the four trillion yuan stimulus package would be spent. One-point-eight trillion yuan will go directly for the construction of railways, roads and airports. He said Beijing would introduce further measures to boost private-sector demand and employment, including subsidies aimed at low-income households.

S. Korea seeks talks with N. Korea

S. Korea seeks talks with N. Korea
27-11-2008

Seoul says its approached Pyongyang for talks on North Korea's decision to close land border crossings and to expel South Koreans from a joint industrial park. Analysts say Pyongyang may have imposed the restrictions because it's trying to pressure South Korea to free-up billions of U.S. dollars in aid to North Korea.

Hong Kong stocks trading higher

Hong Kong stocks trading higher
27-11-2008

A short time ago, the Hang Seng Index was 13,864 - that's 494 points up on the previous close. In currencies, the American dollar was trading at 95.18 yen. The euro was standing at US$1.29 and the pound was worth HK$11.91.
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Hang Seng Index higher
27-11-2008

A short time ago, the Hang Seng Index was 13,594 - that's 224 up on the previous close. In currencies, the American dollar's trading at 95.10 yen. The euro was standing at US$1.29 and the pound was worth HK$11.96.
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Hang Seng Index closes 182-points up
27-11-2008

The Hang Seng Index ended the day at 13,552 - that's 182 up on the previous close. A short while ago, the American dollar was trading at 95.08 yen. The euro was standing at US$1.29 and the pound was worth HK$11.93.

Britain names date for next G20 summit

Britain names date for next G20 summit
2008-11-27 HKT 10:00

The British Prime Minister, Gordon Brown, says the Group of 20 leading nations will hold its next summit in London next April to discuss further measures needed to ease the global economic crisis. Mr Brown said Barack Obama, who will have taken over as US president by then, will join leaders from developed and developing countries in the British capital on April 2. Britain takes over the G20 chairmanship next year.

'Yuan should have bigger role' - Yam

'Yuan should have bigger role' - Yam
26-11-2008

The Chief Executive of the Monetary Authority, Joseph Yam, says now is the right time to allow the yuan to play a bigger role in the international market. Speaking at the end of a two-day visit to Beijing, Mr Yam said recent volatility on currency markets made it difficult for importers and exporters to manage their risk. He said the mainland had been discussing the possibility of using yuan to settle trade between Hong Kong and the mainland. A wider role for the yuan, he said, was backed by various mainland authorities. Mr Yam also said the People's Bank of China was considering lifting the limitations on the renmibi bond business in Hong Kong. Currently the size of such bond sales and who's allowed to sell the bonds are restricted. Mr Yam said he hoped more financial institutions would be allowed to sell renminbi bonds.

US$800 billion bid to clear credit lines

US$800 billion bid to clear credit lines
26-11-2008

The Federal Reserve has announced plans to pump up to US$800 billion into the financial system in purchases of mortgage- and asset-backed securities. Nearly US$600 billion will be used to buy-up obligations of housing-related government-sponsored enterprises including Fannie Mae and Freddie Mac, starting from next week. The Fed will also launch a program to buy up to US$200 billion in securities - backed by student and auto loans, and credit card debts - in a further effort to unclog frozen credit markets. The US Treasury said it was allocating US$20 billion to the asset-backed securities fund.

China slashes interest rates

China slashes interest rates
26-11-2008

China has announced its biggest interest rate cut since 1997 in a bid to stimulate the economy. Both lending and savings rates have been cut by 1.08 percent. The new lending rate will be 5.58 percent, while savings will give a return of 2.52 percent. The move came on the heels of an US$800 billion credit market bailout from the US Federal Reserve. It also followed a revised World Bank forecast that mainland growth next year would be around 7.5 percent, the lowest rise since 1990. The People's Bank of China also reduced reserve requirements by 1 percentage point for big banks and by 2 percentage points for smaller banks. "It's certainly a lot more aggressive than anything they've done recently. I think it speaks volumes about just how much China has slowed down," said Anthony Muh of AT Asset Management in Hong Kong.

China Southern shares suspended

China Southern shares suspended
26-11-2008

Shares of China Southern Airlines were suspended this afternoon, pending the release of price sensitive information. The airline is seeking a 40 billion yuan government injection to help repay debts and fund expansion. China Southern shares were trading 12 percent up at 93 cents in Hong Kong. Its Shanghai shares rose 1.5 percent to 3.3 yuan.

US consumer spending slides

US consumer spending slides
27-11-2008

US consumer spending dropped 1.0 percent in October, the steepest fall since September 2001, government data showed Wednesday in a further sign of the credit crunch hitting economic activity. The Commerce Department report showed the sharp drop in spending came even as incomes rose 0.3 percent in the month. Private economists had expected a rise in incomes of 0.1 percent and drop in spending of 0.7 percent. The report showed a dismal beginning of the fourth quarter for the US economy, which relies on consumer spending for around two-thirds of economic activity.

Volcker named as Obama adviser

Volcker named as Obama adviser
27-11-2008

The American president-elect, Barack Obama, has named a former chairman of the US Federal Reserve, Paul Volcker, as the head of a new White House panel to advise him on stabilising financial markets and avoiding an economic recession. Mr Volcker, 81, led the Federal Reserve under Jimmy Carter and Ronald Reagan. The President's Economic Recovery Advisory Board is part of efforts to tackle problems in the ailing US economy. Mr Obama has pledged to focus on the economic slowdown as his top priority. He has also said he will cut billions of dollars in "wasteful spending". This is designed to partially offset costly stimulus packages aimed at reviving the economy. The panel's staff director will be the University of Chicago economist, Austan Goolsbee, another Obama economic advisor.

Wall Street extends rally

Wall Street extends rally
27-11-2008

US shares surged Wednesday as investors shook off gloomy economic news and extended a bargain-hunting rally begun this week. The Dow Jones Industrial Average climbed 2.9 percent to 8,726 at the closing bell, the fourth straight gain for the blue-chip index. The tech-heavy Nasdaq gained 4.6 percent and the Standard & Poor's 500 index added 3.5 percent. World oil prices rebounded. Light sweet crude for January climbed $3.67 to close at $54.44 a barrel on the New York Mercantile Exchange.

EU launches stimulus package

EU launches stimulus package
27-11-2008

The European Commission has unveiled a plan for economic recovery aimed at helping the European Union's 27 member countries over the worst effects of the global financial crisis. Countries will be encouraged to take action through a combination of tax cuts and targeted investment. It is hoped the plan worth 200 billion euros, will save millions of European jobs. The idea is to stimulate spending and boost consumer confidence. The European Commission President, Jose Manuel Barroso, said the plan was "timely, temporary and targeted". The EC expects member states to contribute 170 billion euros while the European Union will give 30 billion. Mr Barroso said it was important that EU members acted together in a period of "exceptional crisis". He added, "It's the best way to restore citizens' confidence and counter fears of a long and deep recession." The European Commission president said the major part of the package would be implemented in 2009, while some measures would continue into 2010. The proposed plan will need to be approved at the next EU summit in December.

Forecast of lower rises for HK workers

Forecast of lower rises for HK workers
27-11-2008

The projected average salary increase for Hong Kong workers next year has sunk to 2.7 percent because of the economic downturn. That's the finding of a survey of over 100 local companies by the global human resources consulting and outsourcing company, Hewitt Associates. A survey it did from June to September arrived at a figure of 5.2 percent. The poll also revealed that 16 percent of companies intend to freeze salaries. About two-thirds plan to review staff travel, recreation and training expenses. But top performers in firms are expected to benefit more than other workers.

China slashes interest rates

China slashes interest rates
27-11-2008

China has announced its biggest interest rate cut since 1997 in a bid to stimulate the economy. Both lending and savings rates have been cut by 1.08 percent. The new lending rate will be 5.58 percent, while savings will give a return of 2.52 percent. The move came on the heels of an US$800 billion credit market bailout from the US Federal Reserve. It also followed a revised World Bank forecast that mainland growth next year would be around 7.5 percent, the lowest rise since 1990. The People's Bank of China also reduced reserve requirements by 1 percentage point for big banks and by 2 percentage points for smaller banks. "It's certainly a lot more aggressive than anything they've done recently. I think it speaks volumes about just how much China has slowed down," said Anthony Muh of AT Asset Management in Hong Kong.

HK-Beijing business ties expanding

HK-Beijing business ties expanding
27-11-2008

The Financial Secretary, John Tsang, says Hong Kong's business ties with Beijing have gone beyond trade, to the development of high-technology products. Beijing's biggest foreign investment comes from the SAR. It totals US$10 billion, which represents more than a quarter of the city's total foreign direct investments. Mr Tsang was speaking at a conference on economic cooperation between the two cities.