Morales nationalises BP subsidiary

Morales nationalises BP subsidiary
02-05-2009

President Evo Morales of Bolivia has announced the take-over of a subsidiary of the British oil company, BP, as part of his continuing nationalisation campaign.

He told cheering May Day crowds in the capital, La Paz, that he had ordered the armed forces and the state oil company to take control of the aviation fuel supplier, AirBP.

Bankrupt Chrysler to partner with Fiat

Bankrupt Chrysler to partner with Fiat
01-05-2009

President Obama has announced that the car company Chrysler is applying for bankruptcy so it will be protected from creditors while it restructures.

Mr Obama said it would form a partnership with the Italian manufacturer, Fiat, in an effort to save it from collapse.

He said the process was intended to put one of America's top three car companies back on the path to success.

6 US banks will need additional capital

6 US banks will need additional capital
30-04-2009

Bloomberg says at least six of the 19 largest US banks will need additional capital. This is according to the early results of a so-called "stress test" by Washington. Final results of the test - which determines the financial health of banks - will be released next week.

Cathay Pacific accused of price-fixing

Cathay Pacific accused of price-fixing
30-04-2009

Australia's competition watchdog has accused Cathay Pacific Airways of price-fixing air freight.

The Competition and Consumer Commission said places where the price-fixing agreements were reached included Hong Kong, Singapore, Japan, Indonesia and India.

It said it would seek penalty against the carrier. A preliminary hearing will be held on 28th May.

Cathay was accused by New Zealand of being part of a cartel to set air cargo prices four months ago.

China investors can buy Taiwan stocks

China investors can buy Taiwan stocks
30-04-2009

Taiwan says it'll allow institutional investors on the mainland to buy stocks listed on the island.

Taiwan's market regulator said the move was expected to inject more funds into the local stocks.

Analysts estimate the latest move will initially attract at least US$660 million in new funds.

The announcement is the latest of a series of measures designed to boost business ties across the Taiwan Strait.

Two foreign investors sell ICBC stakes

Two foreign investors sell ICBC stakes
28-04-2009

Allianz and American Express have sold half of their stakes in Industrial and Commercial Bank of China for US$1.9 billion.

Other foreign investors have sold part or even their entire stake in mainland lenders this year in a bid to shore up capital.

The Hong Kong-listed ICBC shares rose 2.5 percent today to $4.12. The bank's share slumped 6 percent yesterday.

CLP says China's economy stabilizing

CLP says China's economy stabilizing
28-04-2009

CLP says the decline in electricity demand on the mainland has bottomed out, as the country's economy stabilizes amid the global downturn.

Its Chief Executive Officer, Andrew Brandler, made the comment after its annual general meeting.

Mr Brandler said one of the company's major focuses is to further develop renewable energy on the mainland.

The firm's revenue is expected to fall by 30 percent after last year's scheme of control agreement with the government that lowered its permitted profits.

Bank of China's profit falls

Bank of China's profit falls
2009-04-29 HKT 00:23

Bank of China has posted a 14-percent fall in profit for the first quarter to 18.6 billion yuan.

It set aside more money - US$380 million - for potential losses from its US mortgage investments.

The bank still holds US$2.2 billion worth of US subprime mortgage investments.

For its Hong Kong unit, first-quarter profit fell 17.5 percent to just under HK$6 billion.

The bank said its exposure to Fannie Mae and Freddie Mac was valued at HK$4.3 billion.

US trade protectionism growing: China

US trade protectionism growing: China
29-04-2009

Beijing says US trade protectionism against China is growing - putting bilateral economic ties to the test.

In an opinion piece for the Asian Wall Street Journal, the Commerce Minister, Chen De-ming, said Beijing is not aiming for a trade surplus with the US.

America's biggest trade deficit is with China reaching a high of US$266 billion last year from US$256 billion the year before.

Mr Chen also said American industries had petitioned the US government for anti-dumping investigations.

And they had also asked for investigations under World Trade Organisation rules that could lead to restrictions of imports of Chinese products.

American business groups say China's exporters have an unfair advantage from an artificially undervalued Chinese currency.

Mr Chen called for China and the US to mutually open their markets and to expand trade and investment.

GM to cut 21,000 jobs

GM to cut 21,000 jobs
28-04-2009

The big American car company General Motors is to cut 21,000 US jobs and phase out its Pontiac brand, as it aims to meet a June 1 deadline to revamp its business. GM has to complete its restructuring by then to gain the government loans it needs to avoid bankruptcy protection.

After shedding Pontiac by the end of 2010, GM will focus on its Chevrolet, Cadillac, Buick and GMC brands. The firm also said it hoped to halve its debts by persuading bondholders to swap US$27 billion of bonds for shares.

GM also wants the US government to swap half its current loans for a 50 percent stake. The government has so far given GM more than $15 billion in loans.

GM has already cut 10,000 US jobs this year and following the latest cuts its American workforce will be reduced to 40,000. Like rivals Ford and Chrysler, GM has seen sales fall sharply in its home market in recent years, a decline that has intensified as the recession has continued.

EU plans major reform of finance sector

EU plans major reform of finance sector
26-04-2009

The European Union plans ambitious reform of the financial sector this year to address the failings that led to the current global crisis, EU Economic Affairs Commissioner Joaquin Almunia said.

He told the spring meeting of the International Monetary Fund's main steering committee that the crisis had exposed unacceptable weaknesses in the governance of international and European financial markets.

He said the reforms would aim to give the EU a supervisory framework to detect potential risks early and deal with them before they had an impact.

German banks in 'US$1 trillion exposure'

German banks in 'US$1 trillion exposure'
26-04-2009

Germany's banking system is exposed to more than US$1 trillion worth of "toxic" or risky assets, news media in Europe's largest economy said, citing a confidential financial watchdog report.

The publication of the report was condemned by the watchdog, which said it is filing a formal complaint and warned against any "erroneous interpretation" as the German government ponders action to prop up its troubled economy ahead of September general elections.

Senior government ministers have held talks on a plan to help lenders clean up their balance sheets, possibly by allowing them to park difficult loans in their own individual mini "bad banks".

UK's richest lose billions

UK's richest lose billions
26-04-2009

The economic downturn has wiped billions of dollars off the fortunes of some of the richest people in Britain, including Lakshmi Mittal and Roman Abramovich, according to a survey.

The annual Sunday Times Rich List, which features the thousand wealthiest people based in Britain, found they had collectively lost 155 billion pounds, or US$ 228 billion, in the last year.

Indian-born steel tycoon Mr Mittal tops the list for the fifth year running but he and his family's wealth has fallen to 10.8 billion pounds from last year's 27.7 billion, a massive 60 percent drop.


Mr Abramovich, the Russian oligarch who owns Chelsea Football Club, is at number two and is worth seven billion pounds, down from 11.7 billion last year.

IMF agrees on bank clean-up

IMF agrees on bank clean-up
26-04-2009

Finance ministers from rich and developing countries have agreed on the need for an urgent clean-up of banking systems in developed countries, if there's to be an economic recovery worldwide.

The agreement came at a meeting of the International Monetary Fund and the World Bank in Washington, where the IMF director, Dominique Strauss-Kahn, said there'd been progress on the issue, but it had been too slow.

The meeting also heard calls for more help for African countries feeling the effects of the global crisis.

The Tanzanian finance minister said rich countries should use part of their stimulus resources to help poorer ones.

Mainland, Taiwan sign financial deal

Mainland, Taiwan sign financial deal
26-04-2009

Envoys from the mainland and Taiwan have signed a series of landmark agreements laying the groundwork for a flood of financial services investment to flow across the Taiwan Strait.

The centerpiece of the latest round of cross-strait negotiations - the third in a year - is an agreement setting up a regulatory framework for financial services firms on both sides of the Taiwan Strait to invest and do business in each others' markets.

The two sides also agreed to gradually establish a clearing system between the Taiwan dollar and the yuan; and increase the number of direct cross straits flights from 108 to 270 a week.

The mainland's top Taiwan negotiator, Chen Yunlin, also agreed to set up a comunication mechanism between the two sides, during talks in Nanjing with his Taiwanese counterpart Chiang Pin-Kung.

The negotiators also agreed to crack down on major crimes such as kidnapping and human trafficking as well as economic crimes involving money laundering and fraud.