Boeing to cut 4,500 jobs

Boeing to cut 4,500 jobs
10-01-2009

The American aeroplane manufacturer, Boeing, has announced it's to cut four-and-a-half thousand jobs from next month, because of the global economic downturn. Staff in Washington state are expected to be the worst affected. Boeing Commercial Aeroplanes currently employs around sixty-eight thousand people in the US.

Disney to submit Shanghai park proposal

Disney to submit Shanghai park proposal
10-01-2009

One of the world's largest media and entertainment corporations, the Walt Disney Company, says it plans to submit a proposal to build a theme park in Shanghai to Chinese government officials. Disney said it would submit the plans together with the Shanghai government. But it added that as yet, no deal had been signed and no project approved.

UK bank in sanctions violations payout

UK bank in sanctions violations payout
10-01-2009

A British commercial bank, Lloyds TSB, has agreed to pay three-hundred-and-fifty million dollars to the United States authorities following an investigation into its financial dealings with Iran, Sudan and Libya in violation of US sanctions . The US Justice Department said the bank had falsified wire transfers involving countries on the US sanctions list, so that the transfers would not be detected.

China's economic prospects remain bright

China's economic prospects remain bright
10-01-2009

A top banker says China's economic prospects remain bright. The deputy governor of the central bank, Yi Gang, struck a note of confidence, telling a forum that he expected the economic situation to be relatively stable this year. This is despite that fact that China's industrial output has slowed sharply in recent months and exports fell in November. The government has launched a 585 billion dollar stimulus package; and the People's Bank of China has repeatedly cut interest rates to prop up domestic demand.

US stocks open mixed

US stocks open mixed
10-01-2009

US stocks opened little changed after the December jobs data was not as bad as feared. The Dow Jones Industrial Average rose a modest 19-points in opening trades, while the tech-heavy Nasdaq slipped almost two-points. The Standard and Poor's 500 index was up just over a point.

Local airline lays off 50 staff

Local airline lays off 50 staff
10-01-2009

Hong Kong Airlines, a local airline serving mainly Asian cities, has laid off about 50 staff. The Confederation of Trade Unions said the workers received their severance notice by post, but were not told of the reason.

US jobless rate hits 7.2%

US jobless rate hits 7.2%
10-01-2009

The US unemployment rate bolted to 7.2 percent in December -- the highest since early 1993 -- as nervous employers slashed 524,000 jobs. That took the number of jobless for 2008 to more than 2.6 million - the most in more than six decades.

China Eastern's passenger numbers fall

China Eastern's passenger numbers fall
10-01-2009

China Eastern Airlines has recorded its first drop in annual passenger numbers in nine years. It fell 5.4 percent to 37 million people. Its cargo business also went down 5.6 percent during last year. The Hong Kong-listed company shares slumped 5 percent today to $1.12.

Regulators dodging responsibilty: DP

Regulators dodging responsibilty: DP
10-01-2009

The Democratic Party says it's disappointed with two reports released by Hong Kong's top financial regulators on the alleged mis-selling by local banks of Lehman Brothers minibonds. Yesterday, the Monetary Authority and the Securities and Futures Commission released the outcome of their probes and recommended measures to control the way banks sell investment products. However, the Democratic Party is unhappy that the reports had failed to apportion blame. A member of the party, legislator James To, said the two regulatory bodies had dodged responsibilities.

SMEs' confidence plummets

SMEs' confidence plummets
09-01-2009

Confidence among small and medium-sized businesses has hit its lowest point in more than a year according to a survey by HSBC. More than half of the respondents said they would cut costs to battle the downturn. The bank said it had so far lent more than $1-billion to the SMEs.

Tighter investment product sales rules

Tighter investment product sales rules
09-01-2009

The government says it'll tighten the way local banks sell investment products. This comes after the Monetary Authority and the Securities and Futures Commission released a report on the alleged mis-selling of Lehman Brothers products. The watchdogs made over 10 recommendations to the government. They include requiring banks to segregate their deposit banking from their securities services; and requiring banks to tape conversations between staff and customers at the point of sale.

UK interest rates cut to record low

UK interest rates cut to record low
09-01-2009

The Bank of England has cut official interest rates by half a percentage point to 1.5 percent, the lowest level in its 315-year history as it attempts to ward off a prolonged recession. The cut means British central bankers are moving closer to the limits of conventional monetary policy after trims totaling three percentage points since the beginning of October. Britain faces its bleakest year since the early 1990s recession. House prices have suffered their worst year on record, the huge services sector is shrinking at a record pace and several major retailers have collapsed as consumers curb spending.

Obama gives warning over recession

Obama gives warning over recession
09-01-2009

The American president-elect, Barack Obama, has given a stark warning of the potential long-term impact of the global recession. In a speech in Virginia, he said manufacturing had reached a 28-year low. Many people could no longer pay their mortgages and Americans were anxious about the future. He called for dramatic action if this recession was not to become long-term. He warned of a greater danger of a deep and systematic long-term crisis that could threaten America's role as a world economic leader.

Wall St ends mixed on weak data

Wall St ends mixed on weak data
09-01-2009

Wall Street shares shook off opening losses and ended mixed overnight as investors looked past weak sales reports from the retail sector and other grim data. The Dow Jones Industrial Average dropped 27 points, or 0.31 percent, to close at 8,742, rebounding from early losses of over 100 points. The Nasdaq managed a gain of 17 points, or 1.12 percent, to end at 1,617 and the Standard & Poor's 500 index added 3 points, or 0.34 percent, to close at 909.

US$ falls after recent sharp gains

US$ falls after recent sharp gains
08-01-2009

The U.S. dollar fell, reversing sharp gains against the euro and yen earlier this week, as the steep job losses in the U.S. private sector reignited fears of a deep recession. The slide in the dollar and renewed fears over the economy helped hammer oil prices which were down 12 percent. The largest single day percentage drop since 2001 came after the U.S. Energy Information Administration reported a much greater-than-expected rise in crude inventories in a sign of weakening demand amid the global slowdown. U.S. crude settled at US$42.63 a barrel - down US$5.95. London Brent dropped US$4.67 to US$45.86. U.S. Treasury notes fell amid renewed concerns that a spate of new debt supply will dilute the market despite more evidence of the dire employment situation in America. The 10-year Treasury note fell 7/32 in price to yield 2.48 percent.

PRD to become efficient logistics centre

PRD to become efficient logistics centre
08-01-2009

Beijing says economic co-operation between Guangdong, Hong Kong and Macau has become even more important amid the global economic slowdown. It pledges to make the Pearl River Delta the most efficient logistics centre in the Asia-Pacific region.

Lehman minibond investors file claims

Lehman minibond investors file claims
08-01-2009

17 Lehman Brothers' minibond investors are seeking compensation from four local banks through the Small Claims Tribunal. They are the second group to file applications. Two of the banks - DBS and the Bank of China - had earlier applied to hold the hearing in the District Court. DBS said the issue was complex and involved legal arguments. The tribunal adjourned the case until March.

Markets plunge

Markets plunge
08-01-2009

A fresh wave of profit warnings and job cuts has hit regional markets wiping out gains recorded in the new year. Sentiment turned sour overnight after an employment report suggested U.S. job losses in December could be the worst in almost 60 years. The Hang Seng Index slumped 3.8 percent, or 571-points, to 14,415. Lenovo fell 26 percent on an announcement that it would cut 2,500 jobs. Bank of China fell 8.4 percent on news that strategic shareholders were selling its stock.

HSBC has no plan to reduce BoCom stake

HSBC has no plan to reduce BoCom stake
08-01-2009

HSBC says it has no plans to reduce its stake in the Bank of Communications. HSBC's General Manager, Margaret Leung, said the Mainland market was important to the group and it was investing for the long term. HSBC currently holds an 19.9 percent stake in the Bank of Communications.

Tightening of investment product sales

Tightening of investment product sales
08-01-2009

The government says it'll tighten the way local banks sell investment products. This comes after the Monetary Authority and the Securities and Futures Commission released a report on the alleged mis-selling of Lehman Brothers products. The watchdogs made over 10 recommendations to the government. They include requiring banks to segregate their deposit banking from their securities services; and requiring banks to tape conversations between staff and customers at the point of sale.

UK interest rates cut to record low

UK interest rates cut to record low
08-01-2009

The Bank of England has cut official interest rates by half a percentage point to 1.5 percent, the lowest level in its 315-year history as it attempts to ward off a prolonged recession. The cut means British central bankers are moving closer to the limits of conventional monetary policy after trims totaling three percentage points since the beginning of October. Britain faces its bleakest year since the early 1990s recession. House prices have suffered their worst year on record, the huge services sector is shrinking at a record pace and several major retailers have collapsed as consumers curb spending.

Wall St slides on bleak economic news

Wall St slides on bleak economic news
08-01-2009

US stocks fell hard overnight after a series of grim warnings from key companies and a survey showing widening job losses prompted investors to retrench. The Dow Jones Industrial Average slid 244 points, or 2.71 percent, to 8,770, ending a string of four winning sessions in the previous five. The tech-heavy Nasdaq composite slumped 53 points, or 3.23 percent, to 1,599 and the Standard & Poor's 500 broad-market index shed 28 points, or 3.00 percent, to close at 906.

Lenovo to cut 2,500 jobs

Lenovo to cut 2,500 jobs
08-01-2009

The Mainland's biggest personal computer manufacturer, Lenovo, will be slashing some 25-hundred jobs, or about 11% of its global workforce, after suffering losses, amid the worldwide economic slowdown. In a statement to the Hong Kong Stock Exchange this morning, Lenovo said the job cuts would help save the company, 300 million US dollars, in the financial year, ending March 2010. The world's fourth biggest personal computer manufacturer said preliminary forecasts showed that the company would make a loss in the last quarter of 2008.

US heading for record deficit

US heading for record deficit
08-01-2009

The American President-elect, Barack Obama, has said a massive spending programme to stimulate the US economy will be at the high end of estimates -- despite concern about the ballooning budget deficit. He was speaking as figures from the Congressional Budget Office indicated an unprecedented deficit for the coming fiscal year.

Cathay warns of disappointing results

Cathay warns of disappointing results
08-01-2009

Cathay Pacific has issued another profit warning, saying plummeting fuel prices and weak passenger volume will take a further toll on the airline's profits. Fuel hedging losses are estimated to be 7.6-billion dollars for the full year in 2008, more than doubling the 2.8-billion loss announced in November, when Cathay first issued a profit warning. The company said first and business class traffic had also fallen significantly since then, and the drop in cargo revenue was expected to be even higher.

Siege at Bangkok airports cost US$8b

Siege at Bangkok airports cost US$8b
08-01-2009

Anti-government protests that shut down Bangkok's airports for more than a week last year have cost Thailand more than US$8 billion. The country's central bank said the losses were equivalent to three per cent of GDP. It said the losses were more serious than those caused by SARS or the Asian tsunami and it predicted that the number of tourists visiting Thailand would fall by almost nine per cent this year.

Marks and Spencer to cut jobs in UK

Marks and Spencer to cut jobs in UK
08-01-2009

Britain's largest clothing retailer, Marks and Spencer, will cut 1,230 jobs by closing 27 stores at home. The company said it had to cut costs on the back of its steepest sales decline in about nine years. The cost-cutting measure will save the firm as much as 200 million pounds. The company said "challenging economic conditions" were expected to continue for the next 12 months.

HK likely to go into recession this year

HK likely to go into recession this year
08-01-2009

Economists at the University of Hong Kong say the territory is likely to go into recession early this year as a result of the global economic downturn. The university's Asia Pacific Economic Co-operation Study Centre predicts the economy to contract by 2.6 percent in the the first quarter. It also predicts the unemployment rate to reach 4.8 percent this quarter - rising up to six percent later this year. Its Director, Dr Alan Siu, said economic conditions would worsen.

Bank of America sells Chinese bank stake

Bank of America sells Chinese bank stake
08-01-2009

Bank of America is raising US$2.8 billion by selling part of its stake in China Construction Bank in a bid to build up cash to weather a dismal market at home. The value of the sale was 12 percent lower than the market price before the announcement.

Li Ka-shing seeking to sell BOC shares

Li Ka-shing seeking to sell BOC shares
08-01-2009

Tycoon Li Ka-shing is seeking to sell his shares in Bank of China for as much as HK$4.06 billion. According to a sale document, a company controlled by Mr Li is offering 2 billion shares at a price that is 7.4 percent lower than the day's closing price of 2 dollars and 14 cents.

China issues 3G mobile licences

China issues 3G mobile licences
08-01-2009

The mainland government has issued three third-generation mobile phone licences. China Mobile has been given a permit to run a service based on a home-grown technology. China Unicom and China Telecom will operate on an overseas standard. Analysts say the move will help boost the country's slowing economy. The three carriers are expected to pour US$41 billion into building new wireless networks. The introduction of the service will also spur buying of 3-G handsets, which will benefit manufacturers at home and overseas.

Investment loss for Housing Authority

Investment loss for Housing Authority
07-01-2009

The Housing Authority predicts it'll suffer an investment loss of $3.6 billion in the current fiscal year, due to the global financial crisis. It also expects an overall budget deficit of $216-million this year. But the Authority says its fiscal position remains sound; and it expects its investment return to rebound next year.

Office rents may drop 20 percent

Office rents may drop 20 percent
07-01-2009

Office rents in prime business locations may drop as much as 20-percent this year according to the real estate advisory firm, D-T-Z. The company said businesses holding off on expansion plans and others moving out of top locations would drive rents down. And the vacancy rate could rise to 6-percent in Central. A spokesman for the firm, Mark Price, said rents could hit a bottom later this year.

China Mobile to get 3G licence

China Mobile to get 3G licence
07-01-2009

Sina-dot-com says the mainland telecom giant, China Mobile, will be granted a licence to operate third-generation wireless services. The firm is expected to use a home-grown technology to provide the service. China Telecom and China Unicom are also expected to receive licences. They plan to use an overseas standard.

CIC said to be slowing down investment

CIC said to be slowing down investment
07-01-2009

The Shanghai Securities News has reported that the country's sovereign wealth fund will hold back from investing further at the moment due to the global financial crisis. The Vice Executive President of the China Investment Corporation, Zhang Hongli, told the newspaper that the company, which manages US$200 billion of the country's foreign exchange reserve, had slowed its investment plans since September. The Corporation has lost nearly US$4 billion from the stakes it bought in Morgan Stanley and Blackstone in 2007.

China mulls over launching REITs

China mulls over launching REITs
07-01-2009

The People's Bank of China and China's banking regulator are planning to allow developers to create real estate investment trusts, or REITs. A deputy housing minister, Qi Ji, said the move would create more channels for developers to raise funds. At the moment, property firms rely on bank loans. The proposal will be submitted to the State Council for approval.

SFC reprimands Standard Chartered Bank

SFC reprimands Standard Chartered Bank
07-01-2009

The Securities and Futures Commission has reprimanded Standard Chartered Bank for failing to give equal treatment to clients who bought mutual funds run by two fund houses. The bank will compensate 1,260 clients at a total cost of US320,000 plus interest. But Standard Chartered said it hadn't done anything wrong and it was making the payment voluntarily. Investigations showed that the bank allowed one of its clients to get same-day pricing without making the information available to other clients.

Fed predicts 'moderate recovery' in 2010

Fed predicts 'moderate recovery' in 2010
07-01-2009

The US recession is likely to drag on well into 2009 with a "moderate recovery" in 2010, according to minutes released by the Federal Reserve from last month's deliberations ahead of a historic cut in interest rates. The minutes from a December 15-16 Federal Open Market Committee meeting at which policymakers unanimously cut rates to near zero showed they were faced with a grim economic forecast from its staff. The report showed economic activity "appeared likely to decline substantially in the fourth quarter of 2008". It added: "The staff revised down sharply its outlook for economic activity in 2009 but continued to project a moderate recovery in 2010."

Obama says U.S. economy is very sick

Obama says U.S. economy is very sick
06-01-2009

U.S. President-elect, Barack Obama, has described the American economy as "very sick" and that the situation was getting worse. He said he expected the latest unemployment figures, due out on Friday, to be sobering. Mr Obama was speaking after talks with politicians in Washington to discuss ways to boost the economy and create new jobs. Mr Obama wants the U.S. Congress to approve an economic stimulus package worth about US$800 billion.

US car makers record big falls in sales

US car makers record big falls in sales
06-01-2009

America's three biggest car companies have recorded major losses in annual sales, confirming that the industry is in serious difficulty. Sales for Chrysler and General Motors were down by about 30 percent in 2008, while Ford sold more than twenty percent fewer vehicles than in the previous year. Observers say the figures reflect a steep fall in consumer confidence, amid rising unemployment and economic uncertainty, and the difficulty many face in obtaining loans to buy new cars.

Waterford Wedgwood calls in receivers

Waterford Wedgwood calls in receivers
06-01-2009

The China ware and crystal manufacturer, Waterford Wedgwood, has gone into administration after being hit by the economic downturn. The company, which has origins in England and Ireland, has posted losses for the last five years. However, the company's Chief Executive says he is optimistic that a buyer will be found for the business.

More money may be raised through IPOs

More money may be raised through IPOs
05-01-2009

The accountancy firm, PricewaterhouseCoopers, is forecasting that fewer companies will list here this year but they'll raise more money. It says 35 companies - many from the mainland - will seek $70 billion this year. Last year, there were 49 initial public offerings - which raised $66 billion. A partner with the firm, Richard Sun, said he expected three to four of the offerings to be worth ten-billion dollars each.

HKMA needs to keep up with market trends

HKMA needs to keep up with market trends
05-01-2009

A report commissioned by the Hong Kong Monetary Authority to look at ways to improve banking stability has called for the creation of a single watchdog to regulate various financial products. The report by an independent consultant was carried out before the global finanical crisis. But it describes the current regulatory system as fragmented. The Chief Executive of the Hong Kong Monetary Authority, Joseph Yam, said afterwards that the territory should set up a single regulatory body in the long term. He said techonological advances would increase demand for a unified system as more people would manage their savings and the buying and selling of shares on the Internet.

Richardson not to be Commerce Secretary

Richardson not to be Commerce Secretary
05-01-2009

The Governor of New Mexico, Bill Richardson, has withdrawn as President-elect Barack Obama's nominee for Commerce Secretary. His decision was linked to a pending investigation into a company which has done business with his state. Governor Richardson denies any wrongdoing. But both he and Mr Obama said that in the middle of the economic crisis, the decision to withdraw had been made to avoid delays in filling this crucial economic post. RTHK's Washington correspondent, Daniel Ryntjes, said Mr Richardson's withdrawal won't hamper the role out of Barack Obama's massive stimulus package.

HSI gains 188 points in morning session

HSI gains 188 points in morning session
05-01-2009

The Hang Seng Index ended the morning at 15,230 - that's 188 points up on the last close. Turnover was 25.1 billion dollars. Here's how the leading shares closed the session: Cheung Kong 77.90 up 1.00; China Mobile 83.00 up 1.80; HSBC Holdings 76.00 down 1.00; Bank of China 2.21 up 0.04; Hutchison 40.25 up 0.40; Petro China 7.45 up 0.25; Sun Hung Kai 68.55 up 1.25; and Tracker Fund 15.36 up 0.18. In currencies, and a short time ago, the American dollar was trading at 92.08 yen. The euro was standing at US$1.38...and the pound was worth HK$11.22.

Foreigners in Japan may lose jobs

Foreigners in Japan may lose jobs
05-01-2009

Concern is mounting that foreign workers, who've moved to Japan, will bear the brunt of the job cuts being announced by major companies. Many people have come from South America to work in Japanese factories and workshops but they face being laid off before full-time Japanese staff.

Tai Lin & 3D liquidation adjourned

Tai Lin & 3D liquidation adjourned
05-01-2009

The High Court has adjourned for two months the liquidation of the electronics retail chain, Tai Lin Radio Service, to give it time to look at restructuring options. A lawyer for the company said it's looking for new investors. Another company, 3D-Gold Jewellery Holdings, has had its liquidation adjourned for 4 months.

Russian gas supply row spreads

Russian gas supply row spreads
05-01-2009

Russian gas supplies to the Czech Republic and Turkey dropped on Sunday, the latest victims of a deepening row between Russia and Ukraine over debts and pricing. The stand-off began when Russia cut off the gas to Ukraine on New Year's day. The two sides blame each other for the dispute. Analysts said Europe, where temperatures in many places were below zero, could face problems if the row dragged on. The gas row is likely to raise new questions in Europe about Russia's reliability as a gas supplier.

2nd bailout for UK banks 'not on cards'

2nd bailout for UK banks 'not on cards'
05-01-2009

The British government is talking to banks about stepping up loans to credit-starved companies, but a second bailout of banks is not on the cards at present, Prime Minister Gordon Brown said on Sunday. The government set aside up to 37 billion pounds to boost the capital of three major British banks. The banks were hard hit by the credit crunch, which is now sending the British economy spinning into recession. The BBC and The Times newspaper both reported that the government was considering a second bailout.

China manufacturing declines further

China manufacturing declines further
05-01-2009

China's manufacturing sector shrank for a third month in December as export demand fell, according to new figures. A key indicator, the Purchasing Managers Index, edged up from November's all-time low but stood at 41.2, below the 50 level that shows activity is shrinking, the government-sanctioned China Federation of Logistics and Purchasing said. Manufacturing is about 40 percent of China's economic output, and a drop in demand for its exports has triggered thousands of factory closures.