China-US pledge $20 billion trade aid

China-US pledge $20 billion trade aid
06-12-2008

China and the US have pledged US$20 billion to help finance global trade, as part of efforts to boost the faltering world economy. The money will be made available to importers, including those in developing countries, who have found it difficult to get credit to buy goods. Earlier, China called on the US to save more, blaming its excessive consumption for the financial crisis. "We are both committed to strengthening the global economy," Henry Paulson, the US Treasury Secretary said, at the end of high level talks on the world economy. Importers around the world have struggled to get credit to buy goods as banks have tightened their lending. This has been a further drag on economic growth, as factories find their customers are short of cash to buy their goods. The money will be made available through the countries' export-import banks. But, though symbolically important, correspondents say that the sum involved - US$12 billion of which will be provided by the US and US$8 billion by China - is relatively small and unlikely to make a huge difference.

'Inevitable delay' in minibonds buy-back

'Inevitable delay' in minibonds buy-back
06-12-2008

The Secretary for Financial Services and the Treasury, K.C. Chan, says it's inevitable that the buy-back plan for Lehman Brothers minibonds will be delayed. This came after the liquidator of the collapsed investment bank filed a legal challenge against the plan in the US. The government had said the buy-back would help minibond holders bypass the tedious liquidation process and retrieve their investments more quickly. Mr Chan said banks were now finding ways to resolve the problem.

US jobs fall worst since 1974

US jobs fall worst since 1974
2008-12-06 HKT 00:26

Unemployment in the United States rose by more than 500,000 in November - the biggest monthly increase for 34 years. The job losses were far more severe than expected. In a dramatic indication of the worsening situation in the economy, the US jobless rate rose to a 15-year high of 6.7 percent from 6.5 percent in October. Recent data has fuelled fears that the world's biggest economy is set for a deep, long downturn. Reacting to the unemployment data, US President-elect Barack Obama said: "There are no quick or easy fixes to this crisis, which has been many years in the making, and it's likely to get worse before it gets better." A number of US companies have announced job cuts this month. President George W. Bush said the new unemployment data showed that the US economy was in a recession.

Obama calls for urgent measures

Obama calls for urgent measures
06-12-2008

The US president-elect, Barack Obama, has called for urgent measures to stimulate the American economy and get people back to work. Mr Obama was speaking as the US government reported half a million job losses in November - the biggest monthly rise in unemployment in the US for 34 years. Reacting to the gloomy unemployment data, the president-elect said that now was the time to respond with urgent resolve to put people back to work. In a statement, Mr Obama said that each of the jobs lost represented a personal crisis for an American family and he warned that the US economy would get worse before it got better. "There are no quick or easy fixes to this crisis, which has been many years in the making, and it's likely to get worse before it gets better," Mr Obama said. For his part President George W. Bush acknowledged that the US was in recession. Speaking at the White House, Mr Bush said: "This is in large part because of severe problems in our housing, credit and financial markets."

European banks cut interest rates

European banks cut interest rates
05-12-2008

European central banks have announced a series of interest rate cuts to tame a deepening recession. The European Central Bank cut its key interest rate by a record 0.75 percentage points to 2.50 percent as ECB head Jean-Claude Trichet warned that the eurozone economy could contract by as much as 1.0 percent next year. The Bank of England meanwhile slashed its key interest rate by a full percentage point to 2.0 percent, amid mounting evidence Britain faces a deep recession. The move followed a record 1.50 percent reduction in November. Sweden earlier reduced its benchmark rate by 1.75 percentage points to 2.0 percent in the sharpest cut since 1992 and Denmark cut its rates by 0.75 points to 4.25 percent in line with the ECB move.

China calls for US to stabilise markets

China calls for US to stabilise markets
05-12-2008

China has urged the United States to spare no effort to stabilise its economy and financial markets to help avert a global recession. Speaking at the start of a fifth meeting of the cabinet-level "Strategic Economic Dialogue" between the United States and China, Vice-Premier Wang Qishan said Beijing was doing its part by pursuing fast growth. "The priority is...to restore investor confidence as quickly as possible, to prevent the financial crisis from getting worse and to avoid a global economic recession," Mr Wang said at the start of two days of talks. With US Treasury Secretary Henry Paulson looking on, he said Beijing backed US initiatives to steady world markets and had acted responsibly to try to achieve the same goal. But Mr Wang urged Washington in return to heed Beijing's needs. "I hope the United States will take all necessary measures to stabilise its economy and financial markets as soon as possible and to ensure the security of Chinese investments and interests in the United States," he said. It was unclear to what Mr Wang was referring. The two governments are in the midst of what Mr Paulson called "productive" negotiations on a new bilateral investment treaty. But Mr Wang's comments may also have reflected long-standing concerns in some Chinese circles about Washington's stewardship of the dollar and a constant debate among policy advisers over whether China should add to its hefty US debt holdings.

ATV management revamp

ATV management revamp
05-12-2008

Asia Television has announced top management changes. They include the appointment of the former deputy chairman of PCCW, Linus Cheung, as the broadcaster's executive chairman. And Ricky Wong - the co-founder of City Telecom, which already owns a pay-TV channel - will become the station's chief executive.

AT&T slashes jobs

AT&T slashes jobs
05-12-2008

Telecommunications giant AT&T and other major US companies have unleashed a new wave of layoffs amid a deepening recession that saw government unemployment aid swell to a 26-year high. AT&T said it was cutting 12,000 jobs, or some four percent of its workforce, beginning this month and through the end of 2009, and slashing 2009 capital spending due to the economic downturn. The job cuts stemmed from "economic pressures, a changing business mix and a more streamlined organizational structure," the Dallas, Texas-based firm said in a statement. Chemical giant DuPont said it was eliminating about 2,500 jobs that mainly support its businesses that support the automotive and construction markets in the US and western Europe, citing "a sharp downturn in demand during the fourth quarter." Job cuts were also announced by media-entertainment group Viacom, which said a restructuring would reduce its workforce by some seven percent, or 850 jobs. The drumbeat of layoff announcements accompanied a Labor Department weekly report that put unemployment insurance claims at a 26-year high.

Markets higher in US and Europe

Markets higher in US and Europe
04-12-2008

US stocks rallied for a second straight session ater a robust report on online holiday spending and a surprise jump in mortgage applications offset a new batch of poor economic data. The Dow Jones Industrial Average closed 173 points higher, or 2 percent, at 8,592. The Nasdaq composite climbed 42 points, or 2.9 percent, to 1,492.38. The Standard & Poor's 500 advanced 21 points, or 2.5 percent, to 870, according to preliminary closing figures. In Europe, the UK's FTSE 100 index rose 1.1 percent, Germany's DAX index gained 0.8 percent, and France's CAC 40 added 0.4 percent.

SHK forecasts rise in property prices

SHK forecasts rise in property prices
04-12-2008

Sun Hung Kai expects to generate an income of HK$16 billion from the sale of homes this year despite sluggish transactions. The property developer also expects prices to climb five percent. Speaking at a news conference after the company's annual general meeting, Sun Hung Kai vice chairman Raymond Kwok said property prices had recently stabilised. He said he was confident about the medium-term prospects for the market.

Financial turmoil 'will last for years'

Financial turmoil 'will last for years'
04-12-2008

A member of the government's task force on the economy has warned that it will take years for financial markets to recover from the current turmoil. The head of Morgan Stanley Asia, Stephen Roach, was speaking at the Clinton Global Initiative conference being held in Hong Kong. Mr Roach says the reliance of Asian economies on exports to developed countries means they'll need a boost in consumption to fight an economic slowdown.

HSBC plays down interest rate rise

HSBC plays down interest rate rise
04-12-2008

HSBC Executive Director, Peter Wong, says the bank's decision to raise mortgage rates won't hinder recovery in the property market. He said the bank has yet to decide whether to raise mortgage rates again. Given the economic situation, Mr Wong admitted the increase might have a psychological effect on people, but he said four percent was not very high.

HSI closes 182 higher

HSI closes 182 higher
04-12-2008

The Hang Seng Index ended the day at 13,588 - that's 182 up on the previous close. In currencies, the American dollar's trading at 93.12 yen. The euro is standing at US$1-26. And the pound is worth HK$11-50.

Thailand cuts interest rates

Thailand cuts interest rates
04-12-2008

Thailand's central bank has cut interest rates for the first time in almost one-and-a- half years to support the economy, which has been hard hit by the recent political turmoil and the global recession. The one percentage point cut will bring the key Thai interest rate down to 2.75 percent.

Ocean Park makes record profit

Ocean Park makes record profit
04-12-2008

Ocean Park generated a record profit of more than HK$200 million in the year up until June - a 19 percent rise on the previous 12 months. In its annual report to Legco, the park revealed it had also broken its attendence record for a fifth consecutive year. It had over five million visitors in the 12 months up to June. On its long-term development, the park's chairman, Allan Zeman, said it would develop closer relationships with overseas markets such as India, the Philippines and Singapore.

Markets higher in US and Europe

Markets higher in US and Europe
04-12-2008

US stocks rallied for a second straight session ater a robust report on online holiday spending and a surprise jump in mortgage applications offset a new batch of poor economic data. The Dow Jones Industrial Average closed 173 points higher, or 2 percent, at 8,592. The Nasdaq composite climbed 42 points, or 2.9 percent, to 1,492.38. The Standard & Poor's 500 advanced 21 points, or 2.5 percent, to 870, according to preliminary closing figures. In Europe, the UK's FTSE 100 index rose 1.1 percent, Germany's DAX index gained 0.8 percent, and France's CAC 40 added 0.4 percent.

GM 'needs US$12 bn loan to keep going'

GM 'needs US$12 bn loan to keep going'
03-12-2008

The American car giant General Motors has said it needs US$12 billion in loans from the US government and another US$6 billion in credit, in order to keep operating. It's also planning to shed up to 30,000 jobs by 2012. The three main US car makers have been trying to negotiate a US$25 billion emergency loan from the government. The chief executives of GM and Ford are offering to work for a salary of one US dollar a year.

Shares prices on Wall Street rebound

Shares prices on Wall Street rebound
03-12-2008

Wall Street rebounded from Monday's falls with sentiment lifted by a better-than-expected outlook from General Electric and hopes for a US rescue for the ailing Detroit automakers. The Dow Jones Industrial Average rallied 270 points, or 3.31 percent to close at 8,419. The Nasdaq composite climbed 51 points, or 3.7 percent, to 1,449, and the Standard & Poor's 500 added 32 points, 3.99 percent, to 848.

Wall Street plunges

Wall Street plunges
02-12-2008

Wall Street stocks plunged Monday, giving back most of their gains from the past week, amid bleak economic news from around the globe.The Dow Jones Industrial Average sank 679.95 points (7.70 percent) to close at 8,149.09, in the fourth-steepest point loss in history for the blue-chip index. The Nasdaq composite plummeted 137.50 points (8.95 percent) to 1,398.07 and the broad-market Standard & Poor's 500 index sank 80.03 points (8.93 percent) to 816.21. A pullback was expected after a huge snapback rally over the past several sessions, with the Dow posting its best five-day percentage increase since 1932 of 17 percent. But selling began early and quickly became a freefall. The US dollar and particularly the yen strengthened. Oil plunged more than 9 percent to $49 a barrel on Monday after OPEC deferred a decision on new supply cuts at a meeting over the weekend. Gold was trading higher.

HK shares plunge after US sell-off

HK shares plunge after US sell-off
02-12-2008

Hong Kong share prices have plummeted nearly 5 percent in morning trading, tracking sharp losses overnight on Wall Street. The Hang Seng index closed the morning session down 696 points at 13,411. Hong Kong property developers led the decline, after HSBC raised its mortgage rates. Sun Hung Kai Properties lost 8.4 percent, and both Sino Land and New World Development dropped 9.3 percent. Japan's Nikkei fell 4.5 percent, but mainland markets made small gains.
+++++++++

HSI 696 lower in morning trading
02-12-2008

The Hang Seng Index ended the morning at 13,411 - that's 696 down on the last close. Turnover was HK$22.6 billion. The American dollar's trading at 93.48 yen. The euro is standing at US$1-26. And the pound is worth HK$11-56.

HSBC cuts British jobs

HSBC cuts British jobs
02-12-2008

HSBC Holdings PLC, Europe's largest bank by market value, says it is cutting 500 jobs, or just under 1 percent of its work force, in Britain after a review of the business and current economic conditions. HSBC UK managing director Paul Thurston said that the company had looked hard at its business in the past two months, "focussing on removing duplication, managing costs and devoting resources to areas that offer the most potential for growth." HSBC announced in September that it planned to cut 1,100 jobs worldwide. It later announced 500 jobs cuts in Asia, including 450 in Hong Kong.

HK retail sales weaken

HK retail sales weaken
02-12-2008

Hong Kong's retail sales weakened considerably in October, rising by just 0.3 percent - the slowest growth in five years. The figure is sharply down from a revised 7 percent increase in September. Sales of luxury items fell the most. Car sales slumped by almost a quarter and jewellery by over 10 percent.

US economy in recession

US economy in recession
02-12-2008

A leading economic research organisation in the United States says the country is officially in recession. The National Bureau of Economic Research says that the American economy has been in decline since December 2007 when it reached its peak. It warned that the downturn could be the worst since World War Two. The body said its business cycle dating committee members met by conference call on Friday and concluded that the economic expansion that started in November 2001 had ended. The previous period of economic expansion, which ended in 2001, lasted 10 years. The current recession, which many economists expect to persist through the middle of next year, is already the third-longest since the Great Depression, behind only the 16-month slumps of the mid-1970s and early 1980s. The announcement caused US share prices to plunge further after already showing substantial falls. After the announcement, the Dow Jones index in New York was down by over five per cent. The main indicexes in London and Paris were also more than five per cent down when they closed. The losses came after large rises in share prices last week.

Nikkei falls 1.96% in morning session

Nikkei falls 1.96% in morning session
01-12-2008

Japan's Nikkei stock index dropped 1.96 percent in the morning session on Monday as investors took profits ahead of key US economic data due later this week. The Nikkei fell 166 points to 8,345.

HSI closes 220 higher

HSI closes 220 higher
01-12-2008

The Hang Seng Index ended the day at 14,108 - that's up 220 on the previous close. In currencies, the American dollar's trading at 94.82 yen. The euro is standing at US$1-26. And the pound is worth HK$11-77.
++++++++

HSI 297 higher in morning trading
01-12-2008

The Hang Seng Index ended the morning at 14,185 - that's up 297 points on the last close. Turnover was HK$25.5 billion. The American dollar's trading at 95.32 yen. The euro is standing at US$1-26. And the pound is worth HK$11-88.
++++++

HK shares open lower, then pick up
01-12-2008

Hong Kong shares opened down 0.8 percent, despite a rally on Wall Street late last week. The Hang Seng Index dropped 112 points to 13,775. However, soon after opening the index was trading slightly higher than Friday's close.

BOJ prepares new credit package

BOJ prepares new credit package
01-12-2008

The Bank of Japan is preparing new measures to tackle a worsening credit crunch which could tip the country's economy back into deflation next year. The Bank's governor, Masaaki Shirakawa, warned that financial conditions, in particular the availability of funds, seemed to have worsened at an increasing rate. The new measures could be adopted at an extraordinary meeting this week. Latest figures show Japan slipped deeper into recession in October as factory output tumbled, consumer spending dropped and inflation slowed.