Chrysler to receive US$4 bn loan

Chrysler to receive US$4 bn loan
03-01-2009

The US Treasury has finalized a US$4 billion loan to cash-strapped carmaker Chrysler. The comnpany's chairman and CEO Bob Nardelli said the loan would help Chrysler "bridge the current financial crisis". The loan is part of a major rescue package the US government approved in December for General Motors and Chrysler to stave off collapse amid tight credit and dismal sales.

World stock markets surge sharply higher

World stock markets surge sharply higher
03-01-2009

World stock markets have rallied strongly on the first trading day of 2009 as New Year optimism more than offset grim economic news from around the globe. US stocks moved sharply upwards as investors pinned their hopes on a better year after a horrendous 2008 that slashed up to 40 percent off the major indexes. Building on modest opening gains in thin trade, the Dow Jones Industrial Average finished up nearly three percent. The Nasdaq leapt three-and-a-half percent while the broad-market Standard & Poor's 500 index advanced 3.1-percent. Across the Atlantic, London's FTSE 100 closed up 2.9 percent, while Germany's DAX was 3.4 percent higher. France's CAC-40 surged 4.1 percent.

Gazprom says it can't depend on Ukraine

Gazprom says it can't depend on Ukraine
03-01-2009

The Russian gas giant Gazprom says it can no longer depend on Ukraine as a transit route to the European Union and is looking to develop alternatives. The deputy chairman of Gazprom, Alexander Medvedev, said he hoped EU countries would back the move. Gazprom cut off Ukraine's gas supply on Thursday in a row over payment. The firm has since accused Ukraine of stealing gas. However, Ukraine blamed Russia for not sending enough gas to ensure the EU supplies. Ukraine's state gas company, Naftogaz, denied illegally siphoning Russian gas, saying it was ensuring the export supply. Romania, Poland and Hungary have all reported a drop in the gas pressure coming in and the Czech presidency of the EU said a crisis was needed to avert further disruption.

Global stock markets surge ahead

Global stock markets surge ahead
03-01-2009

World stock markets have rallied strongly on the first trading day of 2009 as New Year's optimism more than offset grim economic news from around the globe. London's FTSE 100 closed up almost 128-points, or 2.9 percent, while Germany's DAX was 163-points, or 3.4 percent, higher. France's CAC-40 rose 132-points, or 4.1 percent. The surge followed through into the US where the Dow Jones industrial average was up 146-points, or 1.7 percent, while the broader Standard & Poor's 500 index rose 1.6 percent. Earlier, Hong Kong's Hang Seng Index led the Asian markets higher, vaulting 655-points, or 4.6 percent, to 15,043. South Korea's Kospi added 2.9 percent, Singapore rose 3.9 percent, while Mumbai's Sensex traded 0.6 percent higher.

Mainland manufacturing slows further

Mainland manufacturing slows further
02-01-2009

Manufacturing activity on the mainland has shrunk for a fifth consecutive month, according to CLSA's Purchasing Managers' Index. It stood at 41.2 last month - up from a record low of 40.9 in November. A reading below 50 reflects a contraction. CLSA said the manufacturing sector, which accounts for 43 percent of the mainland economy, was close to recession.

Global share markets see record falls

Global share markets see record falls
02-01-2009

Global share markets saw record falls last year as the financial turmoil and economic slowdown ended the stock market boom. Shanghai was one of the worst-hit major markets, ending the year 65 percent lower. Britain's 100-share index also had its worst year on record, down over 31 percent, with similar falls in Paris and Frankfurt. Tokyo's Nikkei dropped 42 percent, while Hong Kong's Hang Seng Index was down 48 percent.In New York, the Dow Jones was up one and a quarter percent on New Year's eve to 8,776-although that was 34 per cent lower than where it started 2008 - making it the worst years since 1931.

Singapore economy set to contract

Singapore economy set to contract
02-01-2009

Singapore's economy is expected to contract by as much as 2% this year.Official data from Southeast Asia's richest economy, shows a deepening recession in the country's trade-dependent economy.The forecast is a downgrade from the estimated range in November, of either a contraction of 1%, or an expansion of 2% in 2009.The government said the downward revision is because of the worsening global economic crisis, with sharp falls in global demand, trade and investments.

2008 worst trading year for 50 years

2008 worst trading year for 50 years
01-01-2009

The last day of trading on world markets confirmed the year 2008 as one of the worst for more than fifty years. The Dow Jones index in the United States closed down more than a third over the year, its worst performance since 1931. Trading in major European markets ended with most recording modest gains on the day -- but still massively down for the year as a whole.

European markets close slightly higher

European markets close slightly higher
01-01-2009

European stock markets closed firmer in the final trading session of the year. London's FTSE 100 index of leading shares was up 0.94 percent at 4,434. In Paris, the CAC 40 index inched up 0.03 percent to 3,271 points. The Frankfurt market was closed for the year-end holidays. Despite the slight improvement, the London market is down more than 30 percent over the year, and France and Germany have fared even worse.

HK budget deficit narrows

HK budget deficit narrows
01-01-2009

The government's budget deficit has narrowed to HK$9.3 billion during the first eight months of the fiscal year. This is mainly because of a HK$28 billion surplus recorded last month. The government said the improved financial results was mainly due to the collection of profits tax. But it maintained that the deficit for the entire fiscal year would be higher than the original estimate of HK$7.5 billion.

HK stock market ends a bad year

HK stock market ends a bad year
01-01-2009

The Hongkong stock market ended the year on a high note, closing the half-day session 1.3 percent higher at 14,429. However, the Hang Seng Index has dropped 48 percent during the last year, marking the biggest annual fall since 1974.

Oil futures slip below US$40

Oil futures slip below US$40
01-01-2009

Oil futures slipped below US$40 a barrel as the market focused on weak energy demand after hefty price gains a day earlier amid the Israel-Hamas conflict. New York's main contract closed 99 cents lower at US$39-03 a barrel.

US house prices tumble further

US house prices tumble further
31-12-2008

Prices of single-family homes in the United States plunged a record 18 percent in October from a year earlier, Standard & Poor's said. Prices fell at the fastest monthly pace since March, an indication that government steps, such as encouraging lenders to modify delinquent loans, have not cushioned the housing bust, which continues to weigh on the economy.

US consumer confidence 'hits new low'

US consumer confidence 'hits new low'
31-12-2008

Consumer confidence in the United States has plunged to a historic low this month amid the deepening recession, according to a private research firm, Conference Board. The company, which has been measuring consumer confidence since 1967, said the index tumbled to 38.0 in December from 44.7 in November, owing to deteriorating economic conditions in the fourth quarter. Consumers' outlook for the first half of 2009 remains "quite dismal", and they see "only a modest recovery" in the second half of the year, said Lynn Franco, research director at the Conference Board.

HSBC slammed in Legco over mini-bonds

HSBC slammed in Legco over mini-bonds
31-12-2008

Legislators have slammed HSBC for helping to sell Lehman Brothers mini-bonds. They questioned whether the bank should have done more to protect investors from products that may be worthless in the aftermath of the Wall Street firm's collapse. More than 40,000 local people bought Lehman-backed investment products through banks, with the total outstanding value of the products estimated at HK$20 billion. Investors have complained that sales staff misled them and failed to fully explain the products connections to Lehman Brothers. At a Legco financial affairs panel meeting, Abraham Shek said HSBC had "betrayed" investors. HSBC provided the directors for the company that was set up to issue the mini-bonds. The bank also served as the trustee that held the collateral that backed the investment products. Other Hong Kong banks, not HSBC, sold the mini-bonds to retail investors. HSBC officials told legislators that the bank wasn't involved in designing the mini-bonds and didn't have a responsibility to ensure their quality. The company created to issue the bonds, known as a special purpose vehicle, was "for all intents and purposes a creature of Lehman's design," said Susan Sayers, deputy head of legal affairs for the Hongkong and Shanghai Banking Corporation. "It is not our responsibility as trustee to comment or have any view on the product that is being sold," she said. But legislators argued that HSBC bore more responsibility to the investors. "You said you are not a designer of that scheme, but knowing that as a bank, an experienced bank, an international bank, you must be aware that this is a product that is an entrapment of people," said Mr Shek. "To society, you cannot really wash your hands of the entire matter ... You are the director," said another legislator James To. Ms Sayers said Lehman Brothers had a high credit rating when the mini-bonds were sold and that the Hong Kong government had approved the products. "None of us, unfortunately, had the benefit of foresight to know what terrible circumstances would happen," she said.

New trading ban rule postponed

New trading ban rule postponed
30-12-2008

The Stock Exchange has postponed a plan to extend the trading ban period for directors dealing in their own companies' shares before announing earnings. The new rule was supposed to come into effect on Thursday, but will now be delayed for three months. Leading business figures had objected to the move, saying it would damage Hong Kong's status as a financial centre, and a Legco panel has passed a motion calling for the change to be scrapped. The measure was intended to counter insider trading an improve corportate transparency. The head of the Hong Kong Exchanges listing division, Richard Williams, said the measure was being postponed because of the concerns expressed. But he said it would not be withdrawn completely. The listing committee believed the rule was in the long-term interests of Hong Kong and the investing public.

Revised bid stops PCCW vote

Revised bid stops PCCW vote
30-12-2008

The two biggest shareholders of Hong Kong telecoms giant PCCW have made a surprise move to raise the price of their buyout offer shortly before minority shareholders were to vote on the bid. David Ford, chairman of the extraordinary general meeting of PCCW, told minority shareholders they were only notified about the revised offer from the company's chairman Richard Li, and his mainland state-owned partner, China Netcom, this morning. "The company has just received a letter from the joint offerers proposing the cancellation price increase from HK$4.20 per share to HK$4.50 per share," he said at the beginning of the meeting. The meeting was adjourned after a vast majority of the shareholders present agreed they needed more time to consider the revised offer. It was made after shareholder advisory firm Glass, Lewis & Co. recommended earlier this month that independent shareholders should reject the original offer, citing a low price and a lack of "compelling strategic rationale for the deal." But some shareholders remained dissatisfied and said they would object to the privatisation proposal. The bid will require the support of 75 percent of minority shareholders to pass. PCCW shares closed 3 percent higher yesterday at HK$3-45. Trading was suspended today.

HSI 156 higher in morning session

HSI 156 higher in morning session
30-12-2008

The Hang Seng Index ended the morning at 14,485 - that's 156 points up on the last close. Turnover was HK$412.9 billion. The American dollar's trading at 90.29 yen.The euro is standing at US$1-40. And the pound is worth HK$11-22.

Wall Street slides as oil prices surge

Wall Street slides as oil prices surge
30-12-2008

Shares on Wall Street slid a third of a percent as oil prices surged in volatile trade in response to the Israel-Hamas conflict. Sentiment was also dampened by Dow Chemical's loss of a major deal with Kuwait. It's feared the pullout - announced yesterday by the Kuwaiti government - could jeopardize financing of Dow's agreed 18.8-billion-dollar acquisition of Rohm and Haas.

Cuban economy suffers slowdown

Cuban economy suffers slowdown
29-12-2008

Cuba has said it has experienced one of its most difficult years economically since the collapse of its former ally, the Soviet Union, in 1991. The economy of the communist-run Caribbean island has grown by 4.3 percent in the past year, falling well short of the 8 percent forecast by the government. The authorities have partly blamed the three hurricanes which hit this year, causing US$10 billion worth of damage, and the continuing US trade embargo.

Beijing makes record Tibet investment

Beijing makes record Tibet investment
29-12-2008

Beijing has invested a record 16 billion yuan this year in Tibet, following the unrest which erupted in March and damaged the regional economy, Xinhua news agency reported. Tibet's industrial economic growth fell 11 percent year on year in the first half of 2008, while fixed asset investment dropped 10.3 percent owing to the violence, Xinhua reported, citing the Tibetan Development and Reform Committee. To prop up the economy, Beijing in July ordered special subsidies and incentives focusing on sectors such as tourism and infrastructure development, the report said. Beijing counters critics' charges of oppression in Tibet by pointing to its investment in the region.

HK exports drop 5.3% in November

HK exports drop 5.3% in November
30-12-2008

Hong Kong's exports have declined for the first time in five months - slipping 5.3 percent last month. Imports fell 7.9 percent, leaving a trade deficit of $8.2 billion. The government says the global economic downturn is taking its toll on world trade, adding that Hong Kong's exports are bound to be negatively affected in the near-term.

European stocks surge ahead of break

European stocks surge ahead of break
30-12-2008

European stock prices surged in subdued trading on Monday ahead of the New Year's holiday break. London's FTSE 100 index gained 2.44 percent to close at 4,319. In Frankfurt, the Dax index rose 1.49 percent to 4,698 and the CAC 40 index in Paris went up 0.47 percent to close at 3,130.

US stocks markets fall

US stocks markets fall
30-12-2008

Share prices on Wall Street closed lower. The Dow slipped 31.62 points, or 0.37 percent, to 8,483. The Standard & Poor's 500 Index fell 3.38 points, or 0.39 percent, to 869. The Nasdaq Composite Index dropped 19.92 points, or 1.30 percent, to 1,510. The price of oil rose on concerns that supplies could be disrupted by tensions between Israel and the Hamas-ruled Gaza Strip. US light, sweet crude settled up $2.31 at $40.02 a barrel. Gold was also trading higher supported partly by broad weakness in the US dollar.

SME's in new help plea

SME's in new help plea

30-12-2008
Small and medium-sized enterprises are calling on the government to amend the special SME loan guarantee scheme to help them survive the economic downturn. They say banks are charging too much interest on the money they lend, despite the introduction of the scheme, which guarantees 70 percent of loans for successful applicants. A representative of a pressure group, the SMEs Survival Alliance - Vincent Mak - urged the administration to raise the guarantee ratio.

Consultation call over blackout rules

Consultation call over blackout rules
30-12-2008

The government has been urged to re-open consultation on new stock market rules that would extend the period in which company directors are barred from trading shares in their own firms. The call came from legislator Abraham Shek, days before the rules are scheduled to come into effect. The Hong Kong Exchanges and Clearing says it's aware of the views expressed recently. But it said it had consulted the market on the issue in January and the majority of the 105 respondents did not oppose or comment on the proposal.

Privatisation of PCCW clears hurdle

Privatisation of PCCW clears hurdle
30-12-2008

PCCW's largest shareholders have cleared the first hurdle in their bid to privatise the telecom company. Shareholders of Pacific Century Regional Developments in Singapore agreed to the proposal by chairman Richard Li and China Netcom to privatise the firm at a cost of HK$14.9 billion. This now leaves the final decision up to minority shareholders, who will cast their ballots in Hong Kong tomorrow. PCCW shares closed 3 percent higher at HK$3-45 cents today.

China raising export tax rebates

China raising export tax rebates
30-12-2008

China will raise export tax rebates on hundreds of products on Thursday. This adds to a wide range of tax incentives offered to makers of thousands of other items since October. The move is aimed at helping exporters ride out the financial crisis amid reduced overseas demand for goods. The latest rebates cover motorcycles, machinery and electronic products.

Xmas retail sales plunge in US - poll

Xmas retail sales plunge in US - poll
28-12-2008

Christmas retail sales plunged in the United States. According to a new poll, sales dropped by nearly eight percent for the traditional November-December shopping period, making it one of the worst holiday shopping periods in decades. Japan also reported record cuts in production; and there are more signs that Spain has entered recession.A leading think tank in London also forecasts that the British economy will shrink by 2.9 percent next year, in the biggest contraction since the end of World War II-as retailers slash prices in a bid to boost post-Christmas sales.

China's foreign debt soars more than 18%

China's foreign debt soars more than 18%
28-12-2008

China's foreign debt increased by more than 18 percent in the first nine months of the year, with short-term debt rising especially fast, state media reported. At the end of September, overseas borrowing stood at 442 billion dollars, a rise of 18.3 percent from the end of last year. Despite this, China remains in a position to service its debt, as it also holds the world's largest foreign exchange reserves. Fuelled by its large trade surplus, China's forex reserves reached 1.9 trillion dollars in late September.

Harrods sale opens amid anti-fur demo

Harrods sale opens amid anti-fur demo
28-12-2008

Hundreds of bargain-hunters braved the cold as luxury London retailer, Harrods, opened its post-Christmas sale, amid protests from anti-fur campaigners. Mezzo-soprano, Katherine Jenkins, opened the department store in Knightsbridge. The boos and chants from those taking part in the protest, organised by the Coalition to Abolish Fur Trade, were soon drowned out by clapping and cheering from would-be shoppers who queued overnight. Some came from as far afield as Slovenia.

Move to scrap old cars to help sales

Move to scrap old cars to help sales
28-12-2008

China plans to offer incentives for car owners to scrap their old models in favour of new ones, in a bid to lift the auto industry as it enters a period of crisis. State media reports the measure is part of a new package being prepared in Beijing aimed at avoiding a US-style collapse of the local auto sector. Chinese auto sales fell 14.6 percent in November from a year earlier. Other measures that China may adopt to bolster auto sales include cuts in the 10-percent vehicle purchase tax and easier access to car loans.

S Korean economy could shrink in 2009

S Korean economy could shrink in 2009
28-12-2008

S Korea's President Lee Myung-Bak says his country's economy could shrink in the first half of next year, for the first time since the 1997 Asian financial crisis. He said that for the whole of 2009, they might achieve positive economic growth, but might also suffer an economic contraction in the first and second quarters. Mr Lee's remarks come after the government cut its 2009 economic growth forecast by one percentage point, to three percent, citing the deepening global economic crisis.

Woolworths to close 200 UK stores

Woolworths to close 200 UK stores
28-12-2008

The end for Woolworths, the British retail institution, which is buckling under the weight of the economic crisis, moves a step closer this weekend with the closure of a quarter of its stores. Woolworths's administrators at the accountancy firm, Deloitte, have chosen 200 stores, of the 813 nationwide, which will shut their doors for the final time. The company itself is likely to become one of the most high-profile victims of the global credit crunch and Britain's economic slowdown unless a buyer materialises before January 5th.