Friday, April 24, 2009

Australia approves China's buyout deal


Australia approves China's buyout deal
23-04-2009

Australia has approved a revised takeover bid from the mainland firm, Minmetals, for Oz Minerals. The government scuttled the original bid on national security grounds. The revised deal excluded a mine which is close to a military rocket testing range. Cash-strapped Oz Minerals welcomed the approval saying the revised US$850-million offer would allow it to pay off its debt. The deal is still subject to a shareholder vote and regulatory approvals from Beijing.

Morgan Stanley raises China GDP forecast


Morgan Stanley raises China GDP forecast
23-04-2009

Morgan Stanley has raised its growth forecast for China from 5.5 percent to 7 percent. Its economists believe the government's stimulus measures have effectively prevented a potentially more severe slowdown in the first quarter. The mainland economy expanded 6.1 percent in that period, the slowest pace in ten years. Goldman Sachs, Barclays and UBS have also recently raised their China forecasts.

Credit Suisse swings back to profit


Credit Suisse swings back to profit
23-04-2009

The Swiss banking giant, Credit Suisse, has swung back into profit after two consecutive quarters of massive losses. It earned US$1.7-billion in the first quarter of the year. The bank's Chief Executive, Brady Dougan, said the improvement showed the impact of measures taken to deal with the global financial crisis, including cutting costs and raising capital.

Microsoft reports drop in sales


Microsoft reports drop in sales
24-04-2009

The American computer software maker, Microsoft, has reported its first drop in sales since the company went public 23 years ago. First quarter sales this year were US$13.6 billion, down 6 percent compared with the same period last year. The firm's profits, fell by 32 percent to US$2.9 billion. The company warned that weakness in the computer market would continue at least for the next few months.

HSBC shuts stock research unit in Japan


HSBC shuts stock research unit in Japan
24-04-2009

HSBC will shut its stock-research and trading departments in Japan. The bank said its equity operations would be moved to Hong Kong. Up to 55 jobs will be cut in Japan. The bank sacked 100 people in Hong Kong on Tuesday.

Thursday, April 23, 2009

2008 global music down by 8%


2008 global music down by 8%
22-04-2009

Global music sales fell by more than 8% in 2008 to $US18.4 billion. The lower numbers were led by a sharp fall in the United States, according to the world trade body IFPI. The music industry has seen sales tumble in recent years.

It's due to two main factors:

1) consumers are moving to cheaper digital formats such as MP3s... and

2) rampant piracy. Digital sales are growing but they have failed to make up for the drop-off of CD sales. Overall, US sales fell 19% while Europe was down 6%. Asia was the one bright spot with sales up 1%.

Geithner says bank lending constrained


Geithner says bank lending constrained
22-04-2009

American Treasury Secretary, Timothy Geithner. Photo: Reuters.
The American Treasury Secretary, Timothy Geithner, says lending by banks is still being constrained by difficulties in putting a value on their toxic assets. In testimony to a congressional panel, Mr Geithner said that uncertainty about the health of the banks and worries about the broader economy had sharply reduced lending.

IMF warns of $US4t global losses


IMF warns of $US4t global losses
22-04-2009

Governments across the world have been told by the International Monetary Fund that they must take further decisive action to help restore the global financial system to stability. In a fresh estimate on the scale of the problem, the IMF says total global losses on problem assets could total four trillion US dollars.

UK economy to shrink by 3.5 per cent


UK economy to shrink by 3.5 per cent
23-04-2009

The British Chancellor of the Exchequer, Alistair Darling, has delivered his last scheduled budget before the government has to call a general election. Mr Darling promised to introduce measures to take Britain through the worst global economic downturn for 60 years. He told parliament that Britain had been badly hit by the global downturn and said the economy would shrink by 3.5 per cent this year -- its worst performance since the Second World War.

IMF downgrades world economic forecast


IMF downgrades world economic forecast
23-04-2009

The International Monetary Fund has once again downgraded its forecast for the world economy. It now expects a contraction of 1.3 percent this year. The IMF blames what it calls the deepening financial hole caused by losses from banks and other financial institutions as a result of bad loans. It says these are likely to add up to four trillion US dollars in total. The forecast for next year is for weak growth of just 1.9 per cent.

Top Freddie Mac executive found dead


Top Freddie Mac executive found dead
23-04-2009

The acting chief financial officer of the troubled American mortgage giant, Freddie Mac, has been found dead at his home. David Kellerman, had worked for Freddie Mac for more than 16 years. He became finance officer in September, after the government had bailed out the company. Reports say there was no foul play, and that he committed suicide.

China's economy show signs of recovery


China's economy show signs of recovery
23-04-2009

A deputy governor of the People's Bank of China, Yi Gang, says the government's 4-trillion yuan stimulus package has already led to signs of economic recovery. The economy grew 6.1 percent in the first quarter of the year - the slowest pace in ten years.

Bank lending grew rapidly during the first three months to support the economy. But Mr Yi said this lending would now begin to stabilise.

Tuesday, April 21, 2009

China aims to invest more in Europe


China aims to invest more in Europe
21-04-2009

The China Investment Corporation is seeking to expand its operations this year, particularly in Europe.

It aims to include countries it previously avoided because of limits they had set on China's investments.

Lou Jiwei, the chief of the sovereign fund, said resistance from some Western governments had contributed to CIC's reluctance to deploy its capital. As a result, it had been shielded from sharp market losses.

But Mr Lou said the environment had changed this year.

Macau gaming revenues reverse decline


Macau gaming revenues reverse decline
20-04-2009

Macau's bad luck may have started to turn, as first-quarter gaming revenues jumped 8.1 percent from the previous quarter after a dismal second half in 2008, official figures showed.

Revenues in the gaming haven were 26.02 billion patacas (US$3.26 billion) in the first three months of this year, up from 24.08 billion patacas in the fourth quarter of 2008, Macau's Gaming Inspection and Coordination Bureau said on its website.

Correspondents say the upturn follows three straight quarter-on-quarter drops in revenue as tighter visa restrictions on visitors from mainland China hit operators.

Obama orders spending cuts


Obama orders spending cuts
21-04-2009

In his debut cabinet meeting, President Barack Obama has ordered his government to cut US$100 million from the US federal budget within 90 days, with an eye on the ballooning deficit.

Correspondents say the call highlights Mr Obama's vow to slash wasteful spending as he is assailed by critics who warn his ambitious political programme and expenditure to revive the economy will bankrupt future generations.

But critics are already assailing the $100 million figure as miniscule compared to the size of the budget deficit, projected to hit at least $1.7 trillion in fiscal 2009.

"One hundred million dollars there, a $100 million here, pretty soon even in Washington it adds up to real money," Mr Obama said, though he agreed with a reporter's question that the initial target was a 'drop in the bucket.'

The president, flanked by Secretary of State Hillary Clinton and Secretary of Defense Robert Gates, said he was proud of his cabinet which took office at a time of rare national financial peril.

Yam warns of more sackings to come


Yam warns of more sackings to come
21-04-2009

The head of the Hong Kong Monetary Authority, Joseph Yam, has described last year's economic turmoil as "the worst in his lifetime".

Writing in the authority's annual report, Mr Yam warned of more sackings in the financial services sector, as firms are expected to streamline their business and delay expansion plans in light of economic uncertainty.

The report also said that asset quality of banks could worsen, meaning the banks could make more provisions for bad debts. But Mr Yam expressed confidence that the banking system could weather the storm.

Jobless total rises to 5.2 percent


Jobless total rises to 5.2 percent
21-04-2009

The latest unemployment rate has risen to 5.2 percent, the highest in five years.

The previous figure was 5 percent. Job losses are mainly in the construction, transportation and financing sectors.

There are currently 187,000 people out of work. The Secretary for Labour and Welfare, Matthew Cheung, said the unemployment rate would continue to face upward pressure in the near term.

He said the economic climate remained tough, and the labour market was weak. But he believed that measures being taken to stimulate the economy would begin to have a positive effect on employment.