Senate close to agreement on package

Senate close to agreement on package
07-02-2009

After days of intensive debate, Senators in the United States are reported to be edging closer to agreement on a huge economic stimulus package designed to revitalise the US economy. American news networks have been reporting that a tentative agreement has been reached on a package of some 780-billion US dollars. President Obama has said that it would be inexcusable and irresponsible if the measures were further delayed. His comments came as the latest unemployment figures showed that the US had had its single worst month for job losses for 35 years.

US regulators seize more banks

US regulators seize more banks
07-02-2009

Regulators have closed banks in two US states, bringing the number of bank failures in the country to eight this year. In California, the Federal Deposit Insurance Corporation said it had taken Alliance Bank into receivership and entered into an agreement with California Bank and Trust to assume all deposits. Meanwhile in Georgia, regulators said that Firstbank Financial Services had also failed. Last year, 25 American banks were seized by officials - up from only three in 2007 - as the global financial crisis took hold.

Obama denounces stimulus plan hold-up

Obama denounces stimulus plan hold-up
07-02-2009

President Barack Obama says the US Senate's delay in passing his economic stimulus package is "inexcusable and irresponsible". He described the economic situation as "an urgent and growing crisis", which could become "a catastrophe" if the Senate failed to act. The bill includes measures to cut taxes and invest in job creation. Moderate Democrat and Republican senators have argued that the plan should be trimmed by up to $90 billion. Mr Obama described as "devastating" the news that nearly 600,000 Americans lost their jobs in January. It's the 13th month in a row that jobs have been lost.

President Obama's executive 'pay cap'

President Obama's executive 'pay cap'
05-02-2009

President Barack Obama has announced a US$500,000 limit on executive pay at US firms that need substantial government aid. The move follows widespread public anger over the levels of pay on Wall Street. President Obama said it was "shameful" that top bankers had awarded themselves giant bonuses last year. Mr Obama said if affected executives received any further bonuses, they would come in the form of stock that couldn't be paid up until taxpayers were paid back for their assistance. Firms will have to publicly disclose perks given to senior executives.

Lenovo boss quits after US$96m loss

Lenovo boss quits after US$96m loss
05-02-2009

The American head of the mainland computer maker Lenovo has resigned after the company suffered a US$96-million loss in the latest quarter due to a fall in sales. The chief executive, William Amelio, has been replaced by Lenovo's chairman, Yang Yuanqing. The firm's founder, Liu Chuanzhi, is to return as chairman. Lenovo, the world's fourth-largest PC manufacturer, said global shipments fell five percent in the October-December quarter. "The Group's results were impacted principally by slowdown of the Chinese PC market in which it has significant market share; and demand reduction in the worldwide commercial PC segment," the company said in a statement. Lenovo, which bought IBM's PC unit in 2005, warned in January that it expected a quarterly loss due to a restructuring that would involve cutting 11 percent of its workforce, or about 2,500 jobs. The restructuring was launched after profits in the previous quarter plunged. Lenovo has been hit especially hard by the global economic slump because it relies heavily on corporate sales, where spending has fallen dramatically.

Shanghai Airlines seeks govt help

Shanghai Airlines seeks govt help
05-02-2009

Shanghai Airlines says it's in talks for an emergency government capital injection as the mainland's airline industry struggles through the economic crisis. But a spokesman for the company, Xu Junmin, said the amount had not yet been finalised. Shanghai Airlines had total debts of more than 13-billion yuan at the end of September last year. The Shanghai Securities News said the carrier was likely to receive between one and two billion yuan in government aid.

ICBC offers loans after stimulus package

ICBC offers loans after stimulus package
05-02-2009

The mainland's largest bank, Industrial and Commercial Bank of China, says it offered more than 250-billion yuan of new loans last month, in response to the government's stimulus plan to avert an economic slowdown. The money was lent for power grid, railway, road and hydroelectric power projects, as well as to small and medium-sized companies.

Ford discussing sale of Volvo unit

Ford discussing sale of Volvo unit
05-02-2009

The US car company, Ford Motors, is in preliminary talks to sell its Volvo unit to the mainland car manufacturer, Geely Automobile Holdings. The Michigan-based company lost a record US$14.6 billion last year because of the economic downturn, and is trying to avoid asking the American government for a bailout. But Ford is expected to get less than the US$6.4 billion it paid for Volvo in 1999.

Bloomberg axes jobs

Bloomberg axes jobs
05-02-2009

The news and financial data provider, Bloomberg, says it will cut 100 television and radio jobs in the United States. Forty-five jobs will be cut from the newsroom. Other jobs might go in Britain, Europe and Japan. Bloomberg will also shut all non-English language television operations, including those in Japan, Spain and France. The cuts will affect about 40 people in the Asia-Pacific region, including 15 in Japan.

Li Ka-shing remains HK's richest man

Li Ka-shing remains HK's richest man
05-02-2009

Forbes magazine says billionaire tycoon, Li Ka-shing, remains Hong Kong's richest man, even after his net worth dropped by half to about US$16-billion following stockmarket plunges. The magazine also said that the number of billionaires here had fallen to 19, from 40 last year. Macau casino magnate, Stanley Ho, slumped to 19th position from fifth. His net worth shrank nearly 90-percent to US$1-billion.

PCCW shareholders back privatisation bid

PCCW shareholders back privatisation bid
05-02-2009

Shareholders of Hong Kong's biggest telephone company, PCCW, have overwhelmingly approved a 15.9 billion dollar privatisation bid by chairman Richard Li and China Netcom. Over 90 percent of shareholders at a special general meeting voted to accept the buy-out offer from the two controlling shareholders -- at four dollars and fifty cents a share. However, the deal still needs to be approved by the High Court. The vote came after a bid to delay balloting failed. Some minority shareholders had wanted to adjourn the meeting, to allow an investigation into alleged vote-rigging to be completed.

China to invest billions in energy

China to invest billions in energy
05-02-2009

State media says China will invest 580-billion yuan to expand its energy industry this year. It will also add more nuclear and wind-powered generating capacity.

Correspondents say the government-owned power companies are stepping up investments to meet growing demand and help boost economic growth as part of a stimulus plan.

Mainland banks increase loans

Mainland banks increase loans
05-02-2009

Mainland banks extended an estimated 1.2 trillion yuan in new loans last month as lenders heeded Beijing's call to hand out more money to boost the economy. The China Securities Journal cited unnamed bank officials as saying that the lending mostly focused on road, power, railway and other infrastructure projects. The January estimate signalled an increase of nearly 50 percent in new loans, from a year earlier.

China considers WTO appeal over toy ban

China considers WTO appeal over toy ban
05-02-2009

China may ask the World Trade Organisation to investigate a six-month import ban slapped on its toys by India. The China Daily quoted an unnamed mainland source as saying that Beijing will probably ask the global trade regulator to look into whether the move has violated its rules. Worries about protectionism are rising as the impact of the financial crisis spreads, increasing the temptation for governments to bring in measures that will help their firms in the short-term. India last month banned imports of several types of toys for what it called "public interest" reasons.

Panasonic axes 15,000 jobs

Panasonic axes 15,000 jobs
05-02-2009

Japan's Panasonic Corporation says it's cutting 15,000 jobs - a reduction in its worldwide workforce of about five percent - this year. The company, the world's largest maker of plasma display televisions, said half the jobs lost will be in Japan, the rest overseas. Twenty-seven plants will be closed.

Time Warner reports US$16 billion loss

Time Warner reports US$16 billion loss
05-02-2009

US media giant, Time Warner, has reported a 16-billion-dollar loss in the fourth quarter - and a 13 billion dollar loss for all of 2008. The media group said the loss reflected the effects of a fall in value on acquired assets. The fourth quarter sales performance was attributed to a slowdown in cinema activity and publishing as well as at its Internet subsidiary AOL.

PCCW meeting to go ahead

PCCW meeting to go ahead
04-02-2009

PCCW says its shareholder meeting will proceed today, despite allegations that shares were offered to insurance agents in return for support for a privatisation bid. Shareholders will vote on whether to accept a privatisation offer from chairman Richard Li and China Netcom. The firm said it had no knowledge of improper share transfers, but was making inquiries about recent media reports. Trading in PCCW shares resumed this afternoon. They ended up 7.8 percent - at HK$4-17. Trading was suspended yesterday after shareholder activist, David Webb, told regulators he had received an anonymous email alleging irregularities.

BOJ buying US$11bn worth of bank shares

BOJ buying US$11bn worth of bank shares
04-02-2009

The Bank of Japan is to buy up to US$11-billion worth of shares held by Japanese banks, to ease the pain from the global financial crisis. The move revives a scheme launched earlier in the decade to head off a banking crisis. Global market tensions and falling stock prices have hurt the balance sheets of Japanese banks and their ability to lend, adding to the pressure on an economy already slipping deep into recession.

IMF sounds warning on Asian economies

IMF sounds warning on Asian economies
04-02-2009

The head of the International Monetary Fund - Dominique Strauss Khan - has warned that some Asian economies will find it impossible to recover from the global downturn until the countries they export to in the developed world start to do better.

Lehman investors to launch class action

Lehman investors to launch class action
04-02-2009

About three thousand local Lehman Brothers' minibond investors have decided to launch a class-action lawsuit in the United States against the trustee of the products -- HSBC-USA. They say the bank should be held responsible for their losses. The Chairman of the Alliance of Lehman Brothers' Victims, Peter Chan, said the case would be filed in a US court within two weeks, but it could take up to a year before a hearing is held. He said investors remained open to a settlement with the bank.

Australia unveils stimulus package

Australia unveils stimulus package
03-02-2009

The Australian government has unveiled a major new stimulus package to try to shield the economy from the global downturn. The measure -- worth US$26 billion -- comes on top of an earlier stimulus package announced late last year. It involves building thousands of new houses, and environmentally friendly measures including providing householders with free home insulation.

Yam issues protectionism warning

Yam issues protectionism warning
03-02-2009

The Chief Executive of the Monetary Authority, Joseph Yam, has warned that protectionism may emerge during the next stage of the financial crisis. Mr Yam told legislators it was uncertain whether this stage had arrived yet. But he said it might take several forms - including even tighter credit restrictions - - and protectionism - which could affect the renewal of syndicated loans in Hong Kong.

Wen sees signs of economy improving

Wen sees signs of economy improving
02-02-2009

Premier Wen Jiabao has said he had seen signs of a recovery in China's economic activity late last year after its runaway growth slowed abruptly. Speaking to a business audience during a visit to London, Mr Wen said that during the last 10 days of December the economy started to get better. He said the goods which had piled up in port started to decrease and the price of industrial products started to rise. China's economic growth slumped to 6.8 percent in the last quarter of 2008, dragging down the annual rate of expansion to a seven-year low of 9.0 percent. Earlier, British police arrested five pro-Tibet demonstrators in London protesting China's policies there. The protesters, waving Tibetan flags, broke through police ranks as Mr Wen arrived at the Chinese embassy in London.

Mainland companies cut executive pay

Mainland companies cut executive pay
02-02-2009

More companies in China are cutting executive pay to get through the economic crisis. Officials in Shanghai said nine state-owned enterprises in the city planned executive pay cuts of up to twenty per cent . Last month several leading companies in China, including China Eastern Airlines, said the pay of top executives would be cut by thirty to fifty per cent.

Iceland sets out economic rescue plan

Iceland sets out economic rescue plan
02-02-2009

Iceland's newly-appointed coalition government has set out its plan to rescue the country from financial ruin. Protesters picketing parliament have blamed the central bank's governor for Iceland's rapid economic expansion that imploded last October.

Japan to provide US$17b in aid for Asia

Japan to provide US$17b in aid for Asia
01-02-2009

The Japanese prime minister, Taro Aso, says Japan is willing to provide an additional 17 billion US dollars in development aid for Asian countries to try to stimulate their economies. Speaking at the world economic forum at Davos in Switzerland, Mr Aso said the funding for infrastructure projects was intended to help promote regional growth during the global downturn.

Brown says financial overhaul needed

Brown says financial overhaul needed
01-02-2009

In a question and answer session at the World Economic Forum, the British prime minister, Gordon Brown, said the failure of the world's financial system showed that an overhaul of global financial institutions was long overdue. Mr Brown said the International Monetary Fund and the World Bank had been visionary creations when they were founded, but were now outdated and needed to be reformed and redirected.

Obama to present new plans for economy

Obama to present new plans for economy
01-02-2009

President Barack Obama has said his adminstration will present new plans soon to get credit moving to businesses and families. In his weekly radio address, he said his Treasury Secretary, Tim Geithner, would announce a strategy aimed at lowering mortage costs and getting loans to small businesses so they could create jobs. Mr Obama said it was vital thatthe Senate quickly pass the government's recovery plan.
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