Saturday, December 13, 2008

BOCHK issues profit warning


BOCHK issues profit warning
13-12-2008

Bank of China Hong Kong has issued a profit warning, saying it expects earnings for the year to "decrease significantly". It says it'll borrow US$2.5 billion from its parent company to boost its finances. BOC Hong Kong said its earnings had been hit by the impact of the global financial crisis.

US car bail-out collapses


US car bail-out collapses
13-12-2008

A US$14 billion bail-out package for the beleaguered American car industry has died in the Senate after failing to get enough support in a procedural vote. The failure came after bipartisan talks on the rescue plan collapsed over Republican demands that the United Auto Workers union agree to swift wage cuts. The White House said the bill had been the Big Three car makers' "best chance to avoid a disorderly bankruptcy." The House of Representatives passed the White House-backed bill on Wednesday. The Democrats needed some Republicans to back the bill in the Senate as they have a majority of just one, and some in their own party were expected to vote against. The Senate majority leader, Harry Reid, said he was "terribly disappointed" when it became clear the vote had collapsed. "Millions of Americans, not only the auto workers but people who sell cars, car dealerships, people who work on cars are going to be directly impacted and affected," he said. The news triggered a big fall in share prices around the world.

Lehman investors file complaints


Lehman investors file complaints
13-12-2008

Hundreds of investors who bought products linked to the failed American bank, Lehman Brothers, have filed complaints to the Ombudsman. They say the Monetary Authority failed to regulate 19 banks which sold the products. Buy-back plans by the Association of Banks have stalled because of legal problems in the United States. The investors marched to branches of banks in Sheung Wan and Central.

Citigroup sues owner of mainland chain


Citigroup sues owner of mainland chain
13-12-2008

Citigroup Venture Capital has sued the owner of a mainland department store chain for failing to sell shares to the public by an agreed date. The Citigroup wants to recoup US$38-million from Ports International Enterprises for its investment in PCD Stores. The deadline on the planned initial public offering expired in September. The retailer halted its share sale in Hong Kong after the global market crash.

EU, Japan to boost economies


EU, Japan to boost economies
13-12-2008

The European Union and Japan have announced huge stimulus packages to help boost their flagging economies. The EU package, worth US$260 billion was negotiated at a summit in Brussels. The British Prime Minister, Gordon Brown, said it would include "judicious" tax cuts and acceleration of public spending projects. The new measures announced by Japan are worth a similar amount - $255 billion. The Prime Minister, Taro Aso, said Japan's economic prospects had deteriorated since an even larger package was announced in October. Meanwhile, European Union leaders have also agreed a multi-billion-dollar series of measures to tackle global warming. The aim is to cut carbon emissions by 20 percent by the year 2020.

Legislators approve loans plan


Legislators approve loans plan
13-12-2008

Legislators have approved a HK$100 billion plan to help small and medium sized enterprises, or SME's, obtain loans. The plan will allow businesses to borrow up to six million dollars with 70 percent guaranteed by the government. Some lawmakers called on any businesses benefitting from the scheme to refrain from laying off staff.

China to give smaller companies aid


China to give smaller companies aid
13-12-2008

China will spend 15 billion yuan (US$2.2 billion) to help smaller companies improve technology to cope with the global economic crisis and will try to boost plunging auto sales, the industry minister said Friday. "Since we are now going through a market downturn, we have to invest more in business technology upgrading so that we will make the most of the upcoming economic upturn," Li Yizhong said at a news conference. The investment measure is the latest in a string of government initiatives that includes a 4 trillion yuan economic stimulus package unveiled last month to help shield China from the global downturn.

White House considers auto bail-out


White House considers auto bail-out
13-12-2008

The White House says it is considering using money earmarked to rescue the US banking industry to bail-out the country's struggling carmakers. President George W. Bush's press secretary says it would be "irresponsible" to further weaken the economy by letting the Detroit car companies fail. Dana Perino says the White House normally would prefer to let the financial markets determine the companies' fate. But she says that given the economy's shape, the White House will consider other options if necessary to prevent the automakers' collapse - and that could mean using money from the US$700 billion Wall Street rescue. A $14 billion bail-out deal for the US car industry failed to get Senate support, raising fears of job cuts and a possible industry collapse. The Big Three US car manufacturers - Chrysler, General Motors and Ford - employ 250,000 people directly, and many more indirectly, in companies making auto parts and car dealerships.

Alitalia taken over by consortium


Alitalia taken over by consortium
13-12-2008

Alitalia, Italy's troubled national flag-carrier, has been taken over by the Italian Air Company (CAI), a consortium of investors. Under the deal, Alitalia will retain its name but around 5,000 jobs are expected to be lost. Alitalia filed for bankruptcy in August, weighed down by high labour costs, strikes, surging oil prices and political interference.

Friday, December 12, 2008

CE to discuss HK economy in Beijing


CE to discuss HK economy in Beijing
12-12-2008

The Chief Executive, Donald Tsang, will discuss ways to boost the Hong Kong economy - during a three-day duty visit to Beijing next week. He's expected to meet President Hu Jintao, Premier Wen Jiabao and vice-president Xi Jinping, who's in charge of Hong Kong affairs.Mr Tsang spoke about his annual Beijing visit in a speech to an economic summit. He said that one of his tasks would be to discuss with mainland leaders three projects; expanding renminbi-related business; supporting Hong Kong enterprises in the Pearl River Delta; and expanding the mainland's individual travel scheme.

Insurance coverage for property loans


Insurance coverage for property loans
12-12-2008

The Hong Kong Mortgage Corporation has extended its insurance coverage for property loans, giving banks more insurance coverage for mortgages. However, the new changes to be implemented next Thursday, will also require homebuyers to double the size of their downpayments.The expansion of the insurance scheme is designed to help lessen banks' exposure to defaulted mortgage loans, and hence encourage them to lend to homebuyers.

Bank of America may cut 35,000 jobs


Bank of America may cut 35,000 jobs
12-12-2008

A man walks near a Bank of America branch in New York's Times Square. Photo: Reuters.
Bank of America Corporation says it plans to eliminate up to 35,000 jobs over three years, after it completes its purchase of Merrill Lynch. The cuts could affect about 11 percent of the combined companies 308,000 workforce. Bank of America employs about 247,000 people and Merrill about 61,000. It says the expected cuts reflect the pending merger, as well as the weak economic environment, Cuts will come from both companies.

Thursday, December 11, 2008

Hong Kong shares surge 5.6 percent


Hong Kong shares surge 5.6 percent
11-12-2008

Hong Kong share prices closed 5.6 percent higher, as mainland stocks were boosted by hopes of new economic stimulus measures by Beijing. The Hang Seng Index was up 824 points at 15,577. Analysts said the recent rebound in the index is indicative of a standard year-end rally, and the market faces immense profit-taking pressure at current levels as investors are reluctant to hold on to stocks for the longer term. "The strong buying momentum that we've seen over the past few sessions hasn't stopped despite yesterday's pullback," Y.K. Chan, fund manager at Phillip Asset Management. "This is a typical year-end rally, with investors using the economic stimulus measures as a reason to buy."

Italy leads France in wine production


Italy leads France in wine production
11-12-2008

Italy has regained the title of the largest wine producer in the world, surpassing France for the first time in ten years. Experts say good weather meant a bumper harvest, leading to an eight percent increase in Italian wine production. France saw a five percent fall in production. ↓

Commercial rents tipped to fall 30%


Commercial rents tipped to fall 30%
11-12-2008

The real estate consultancy firm, C B Richard Ellis, expects rents of commerical properties in prime retail districts to fall by up to 30 percent next year because of the weakening economy. It also expects office rents to decline 25 percent, while luxury residential prices would fall 20 percent from current levels. Despite this, the company says the property market could start stabilising in the second half of next year.

Wednesday, December 10, 2008

Global forecast becomes bleaker


Global forecast becomes bleaker
10-12-2008

The World Bank has offered a grim 2009 outlook of just 0.9 percent growth for the global economy, while a recession was declared in Canada and a rescue for US automakers hung in the balance. In its "Global Economic Prospects" report, the World Bank sharply cut its growth forecast and predicted world trade volume would fall 2.1 percent as a worldwide credit crisis hits rich and poor nations alike. In Canada, the central bank lowered its key interest rate Tuesday by 0.75 point to 1.50 percent and said the Canadian economy had slid into a recession amid the global financial crisis. In Washington, the White House demanded that Detroit automakers prove their "long-term viability" in return for a $15-billion rescue bailout but said a deal with Congress was in sight.

Rio Tinto axes 14,000 jobs


Rio Tinto axes 14,000 jobs
10-12-2008

The world's third-largest mining firm, Rio Tinto, is cutting 14,000 jobs as part of plans to reduce its debt by US$10 billion by the end of next year. The company, which is listed in the UK and Australia, currently employs 97,000 people worldwide.
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Rio Tinto axes 14,000 jobs to cut debt
11-12-2008

The world's third-largest mining firm, Rio Tinto, is cutting 14,000 jobs as part of plans to reduce its debt by US$10 billion by the end of next year. The company, which is listed in the UK and Australia, currently employs 97,000 people worldwide.

First mainland export fall for 7 years


First mainland export fall for 7 years
10-12-2008

China's exports fell in November for the first time in seven years, reflecting slowing global demand. Government data shows November's trade surplus widened to a new monthly record of US$40.1 billion as exports fell by 2.2 percent from the same month in 2007 and imports fell even faster. Correspondents say the drop in trade adds to pressure on Beijing to keep the economy growing and avert widespread job losses.

Tuesday, December 9, 2008

Japan sinks deeper into recession


Japan sinks deeper into recession
09-12-2008

Figures show Japan sank deeper into recession than previously thought in the third quarter of the year, as firms cut investment to cope with the financial crisis. Japan's economy contracted by 1.8 percent on an annualised basis, in the three months to September -- a second straight quarter of negative growth. An initial estimate had put the figure at 0.4 percent.

HSBC won't rule out more job cuts


HSBC won't rule out more job cuts
09-12-2008

A senior HSBC executive has refused to rule out further job cuts at the bank. The Chief Executive for the Asia Pacific region, Sandy Flockhart, said that its staffing policy would correspond to the economic situation. He also predicted that the business environment would become more difficult. Mr Flockhart was speaking while attending the Asia Economic Summit.

Downturn hits mainland investment scheme


Downturn hits mainland investment scheme
09-12-2008

The chairman of Hong Kong Exchanges, Ronald Arculli, says he's ready to implement the scheme allowing mainland investors to buy local shares, but mainland market conditions could complicate its introduction. Mr Arculli was reacting to remarks by the Financial Secretary John Tsang, that the so-called "through-train" policy was still being worked on. Mr Arculli said Hong Kong Exchanges had already completed its work.

Sony cutting global workforce


Sony cutting global workforce
09-12-2008

The Japanese electronics maker, Sony, says it is to cut about five per cent of its global workforce -- and shut down ten per cent of its production facilities. The move comes as new figures show Japan's recession is deepening far more quickly than forecast; the figures suggest Japan's economy -- the second largest in the world -- shrank by 1.8 percent this year.
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Sony to cut 5% of its workforce
10-12-2008

People look at Sony TV sets at an electronic shop in Tokyo. REUTERS
The Japanese electronics maker, Sony, says it is to cut about five per cent of its global workforce and shut down ten per cent of its production facilities. The move comes as new figures show Japan's recession is deepening far more quickly than forecast; the figures suggest the economy dropped at an annual rate of one-point-eight percent in the latest quarter.

China's exports 'may have shrunk'


China's exports 'may have shrunk'
09-12-2008

An adviser to the People's Bank of China, Fan Gang, says the country's exports may have shrunk last month. The official figures are expected to come out soon. If Mr Fan is right, it would be the first contraction in exports for seven years. Previous data showed exports grew 19.2 percent in October. Analysts say a negative figure would place further pressure on policy makers, who are meeting in Beijing, to do more to boost the economy.

Lehman investors seek Democrats help


Lehman investors seek Democrats help
09-12-2008

Some 7,000 Lehman Brothers mini-bonds buyers have asked the Democrat Party to help them recover more than HK$30 billion in lost investments. Party chairman, Albert Ho, says they've managed so far to help 60 investors get back about HK$30 million. But those trying to recover money need to be patient, he says, as it'll take time. Mr Ho says investors should seek compensation through mediation and arbitration -- but those who can afford lawyers might quicken the process either by taking legal action, or by threatening to. He says banks seem to pay more notice when someone starts asking for documents.

Asian stox mixed after US & Euro gains


Asian stox mixed after US & Euro gains
09-12-2008

Share markets in the region are mixed after the big gains on Wall Street and in Eureope overnight. In Tokyo, the Nikkei is about 0.6 percent higher. Singapore is up nearly four percent. However, Seoul and markets in the mainland are slighly lower. Australia is down more than l percent. In New York, the the Dow Jones closed 3.5 percent higher on hopes that new measures would give a boost the world economy. London's FTSE 100 ended up 6.2 percent.

Share markets surge on stimulus deals


Share markets surge on stimulus deals
09-12-2008

US shares echoed gains in stock markets around the world on hopes that new stimulus plans will revive global economic growth. The Dow Jones index was up 298 points or 3.5% in afternoon trading in New York. London's FTSE 100 ended up 6.2%, while Germany's Dax added 7.6%, and France's Cac finished up 8.7%. Earlier, stock markets around Asia also raced ahead. In Hong Kong, the Hang Seng Index closed at 15,044 - up more than eight and a half percent. Francis Lun, from Fulbright Securities, said the local rebound was sparked by hopes of further measures to boost China's economy.

Tribune seeks bankruptcy protection


Tribune seeks bankruptcy protection
2008-12-09 HKT 07:09

The giant American media group, Tribune, which owns the Los Angeles Times and the Chicago Tribune, has filed for bankruptcy protection. The company -- which also owns more than twenty regional television stations -- is more than ten billion dollars in debt.

Dow Chemical to trim 5,000 jobs


Dow Chemical to trim 5,000 jobs
09-12-2008

One of the largest chemical companies in the world, Dow Chemical, has announced plans to cut five-thousand jobs and close twenty plants in response to the global economic downturn. The company also plans to temporarily suspend operations at a further 180-chemical plants and to cut six thousand contractors. The job cuts represent 11-percent of Dow's total staff - it hopes the moves will reduce its annual operating costs by 700-million

Monday, December 8, 2008

Mini-summit to discuss EU economic plans


Mini-summit to discuss EU economic plans
08-12-2008

Britain and France are holding a mini-summit in London today to co-ordinate European Union plans to coordinate European Union plans to stimulate the economy. However, the Europe's largest economy, Germany, won't be represented. The British prime minister, Gordon Brown, the French president, Nicolas Sarkozy, and the head of the European Commission, Jose Manuel Barroso, will look at ways of boosting public investment.

PCCW warns of possible dividends cut


PCCW warns of possible dividends cut
08-12-2008

PCCW has warned its minority shareholders that it may cut its dividend payment if they reject the joint takeover proposal by Chairman Richard Li and China NetCom. The company made the statement in an attempt to persuade its shareholders to vote for the plan later this month. The two biggest shareholders proposed last month to pay just under 15 billion dollars to buy the remaining shares of PCCW at 4 dollars and 20 cents each. PCCW shares closed 3.6 percent higher at 3 dollars and 72 cents today.

HSI closes 8.7% up


HSI closes 8.7% up
08-12-2008

Hong Kong share prices have closed 8.7 percent higher, lifted by hopes that China would release more market-boosting measures to save its economy. The benchmark Hang Seng Index rose 1,198.78 points at 15,044.87. Turnover was strong at 63.88 billion Hong Kong dollars.

8 percent GDP growth forecast for China


8 percent GDP growth forecast for China
08-12-2008

US Financial Services Firm JP-Morgan has said it expects China to maintain its rate of economic growth at 8 percent next year. Its Managing Director, Jing Ulrich, said while Chinese exports would remain weak, the mainland's fixed asset investments and internal demand would lead to an economic rebound.Mrs Ulrich also expects Mainland shares to rebound by up to 40 percent next year because of improved investor confidence. She predicted shares linked to cement would lead the surge because of more infrastructure projects in China.

FS welcomes HSBC loan scheme


FS welcomes HSBC loan scheme
08-12-2008

The Financial Secretary, John Tsang, has welcomed HSBC's HK$4-billion loan scheme to help small and medium business enterprises. Speaking during the fourth Asia Economic Summit, Mr Tsang pledged to help SMEs explore new markets in light of the financial crisis. He said that developed markets such as the United States and Europe had slowed, but emerging markets, such as India, Russia and the Middle East still offered exciting prospects.

New hopes send shares surging


New hopes send shares surging
08-12-2008

Asian stocks have risen in early trade, as hopes grew for fresh action by the US authorities to fight a deepening recession in the wake of massive job losses. There were also signs that crisis-hit American carmakers may finally secure financial lifelines to avert an industry collapse that threatens to send the world's largest economy deeper into a slump. Share prices surged more than 7 percent higher in Hong Kong, and jumped 5 percent in Tokyo."Job losses of this magnitude dismiss the notion this recession's just another blip that will blow over soon," said Jan Lambregts, head of Asia research at Rabobank International. "They should also prove constructive ground for further policy action, both on the monetary and fiscal front," he added, predicting another cut in US interest rates next week.
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Stimulus hopes send shares surging
08-12-2008

Hong Kong share prices have closed 8.7 percent higher, as regional markets rocketed on hopes of more economic stimulus measures in the United States. The Hang Seng Index ended the session up 1,198 points at 15,044, led by redchips and H-shares. Tokyo and Taipei both climbed over 4 percent. Markets on the mainland were up between two and three percent.
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HSI 1,040 higher in morning session
08-12-2008

The Hang Seng Index ended the morning at 14,886 - that's 1,040 points up on the last close. Turnover was HK$35.4 billion. The American dollar's trading at 92.86 yen. The euro is standing at US$1-27. And the pound is worth HK$11-41.

Obama says car industry must restructure


Obama says car industry must restructure
08-12-2008

The US president-elect, Barack Obama, has said any bailout of America's struggling car makers must be contigent on the industry completely restructuring itself. In an interview on American television, Mr Obama said America's giant car manufacturers must not be allowed to collapse, but he accused them of repeatedly making strategic mistakes and failing to develop more fuel-efficient models.

HSBC sets up US$5 billion SME fund


HSBC sets up US$5 billion SME fund
08-12-2008

Banking giant HSBC has set up a five-billion US dollar fund for small and medium sized businesses to increase access to credit. HSBC said in a statement that the first phase would involve a 2-billion US dollar fund for the bank's Hong Kong and United Kingdom operations. It said local companies who had taken part in the government's SME loan guarantee scheme would be given priority when applying for the loans.

BA to cut more than 100 Gatwick staff


BA to cut more than 100 Gatwick staff
08-12-2008

British Airways has confirmed that it is cutting more than 100 jobs at Gatwick Airport as a result of a reduction in aircraft departing from the airport. BA said it expected next summer's departures to be down by 15 percent from 2008. It is reducing aircraft at the airport from 41 to 37 and will cut ground operations staff as a result of fewer departures.

Sunday, December 7, 2008

Obama outlines plans to revive economy


Obama outlines plans to revive economy
07-12-2008

The president-elect of the United States, Barack Obama, has given more details of his plans to revive the US economy, which include what he says will be the biggest US infrastructure investment in half a century. In his weekly radio address, Mr Obama promised a massive effort to make public buildings more energy-efficient to cut fuel bills and create jobs.

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