The Korea Herald

Brazil economists cut growth forecasts

Jun 24, 2014

Brazil economists cut both their 2014 and 2015 economic growth forecasts for the fourth straight week, as above-target inflation continues to sap purchasing power and confidence. Brazil’s economy will expand 1.16 percent this year and 1.60 percent next year, compared with the previous week’s forecast of 1.24 percent and 1.73 percent, respectively, according to the June 20 central bank survey of about 100 analysts published today. President Dilma Rousseff, who is up for re-election in October, ha
France clinches deal to take controlling stake in Alstom

Jun 23, 2014

PARIS (AFP) ― France on Sunday clinched a deal to take a stake in Alstom, a move aimed at preserving the country’s strategic interests in the face of a bidding war for the French engineering giant.The transaction would make the state the main shareholder, give it voting rights in Alstom and pave the way for U.S. giant General Electric to buy the French group’s energy business.“We have a deal that was concluded this afternoon which allows the state to become the main shareholder of Alstom with a
JPMorgan buys larger developers in China

Jun 23, 2014

JPMorgan Chase & Co.’s headquarters in New York. (Bloomberg)JPMorgan Asset Management and Invesco Asset Management say China’s cooling property market is an opportunity to boost dollar bond holdings as the government’s targeted stimulus benefits the largest developers. Chinese real-estate companies accounted for six of the 10 best-performing Asian notes in the past three months, according to a Bank of America Merrill Lynch index. The yield on 2018 debt of China Overseas Land & Investments Ltd.,
Cameron to press Juncker appointment

Jun 23, 2014

LONDON (AFP) ― British Prime Minister David Cameron will meet with EU Council President Herman van Rompuy in London on Monday to press his case against the appointment of Jean-Claude Juncker as head the European Commission.The British leader is ready to force fellow EU leaders to vote on who should head the Commission, the EU’s executive arm, in a last ditch attempt to block Juncker, Downing Street sources said Sunday.Cameron views the former long-serving Luxembourg prime minister as a federalis
Apple likely to launch smartwatch this autumn

Jun 22, 2014

NEW YORK (AP) ― Apple is likely to launch a computerized wristwatch this fall that includes more than 10 sensors to take health measurements and other data, according to a published report.The Wall Street Journal also said Friday that Apple Inc. is planning multiple screen sizes for the device, which some people have dubbed the iWatch. Samsung, Sony, Qualcomm and others have already released smartwatches, but the gadgets have mostly functioned as companions to smartphones, offering email notific
In Argentina, debt struggle barely registers

Jun 22, 2014

BUENOS AIRES (AFP) ― After the devastating debt crisis of 2001, Argentines have become rather sanguine about economic strife. And for now, many are more focused on the country’s World Cup hopes than the latest ― very complicated ― financial crisis.Some experts fear the country is edging toward another default after a U.S. court victory for the hedge funds who hold bonds but did not take part in a restructuring deal after 2001.Not that many Argentines are panicking.“That doesn’t interest us,” sai
Low rates, rising confidence light takeover fires

Jun 22, 2014

PARIS (AFP) ― Low interest rates are stoking the fires of takeovers, with about a quarter of big groups now on the lookout for targets in the next 12 months, a study found this week.The signs are clear “that plans for transformational acquisitions are accelerating,” the survey by consultancy EY concluded.The pharmaceutical sector has led the way so far this year with deals worth $150 billion, according to consultancy Dealogic, and that does not include a failed bid worth $117 billion by U.S. fir
IMF considers ending exemption that enabled 2010 Greek loan

Jun 22, 2014

The International Monetary Fund is considering creating a new way for indebted countries to get large loans and dropping a exception to its lending rules that enabled Greece to obtain a loan in 2010 without having to first restructure its debt. The exemption was established at the start of the European debt crisis to prevent contagion by allowing some nations to receive financing even though the fund could not say with “high probability” that their debt was sustainable. In a report released toda
Fed holds course on cut to U.S. growth forecast

Jun 19, 2014

WASHINGTON (AFP) ― The Federal Reserve slashed its 2014 growth forecast for the U.S. economy after the rough winter but kept policy on hold on Wednesday, showing faith in a modest rebound.Fed Chair Janet Yellen said the economy had picked up after the first quarter‘s contraction, but she also downplayed a pickup of inflation as any sign of a need to tighten monetary policy.As expected the Federal Open Market Committee cuts its stimulus program back by another $10 billion, to $35 billion a month,
Lawmakers press GM on report’s findings

Jun 19, 2014

WASHINGTON (AP) ― Lawmakers expressed disbelief Wednesday at General Motors’ explanation for why it took 11 years to recall millions of small cars with defective ignition switches, and also confronted its chief executive with evidence that the company dragged its feet on a similar safety issue in different vehicles.CEO Mary Barra and attorney Anton Valukas, who recently released a 315-page investigative report into the recall, endured skepticism and some lecturing at a House subcommittee hearing
Amazon unveils smartphone to take on Apple, Samsung

Jun 19, 2014

Amazon.com Inc. jumped into the smartphone market with a handset called Fire Phone that is closely tied to the Web retailer’s other services, ramping up competition with Apple Inc. and Samsung Electronics Co. Amazon chief executive officer Jeff Bezos said at an event in Seattle Wednesday that Fire Phone, which is black with a rubber frame and 4.7-inch display, will give consumers direct access to other devices and services from the company. The handset features 3-D viewing and image-recognition
Exxon, BP evacuate Iraq workers

Jun 19, 2014

Exxon Mobil Corp. and BP Plc began removing employees in Iraq as militants continued a push toward Baghdad and a battle raged for control of the nation’s largest oil refinery. The evacuations come amid government and company assertions that Iraq’s output of almost 3 million barrels a day should remain unaffected by escalating sectarian tensions. Exxon has removed some workers from the West Qurna oil field as operations continue, according to a person familiar with the company’s Iraq operations.
China will avoid hard landing while limiting stimulus, Li says

Jun 19, 2014

Chinese Premier Li Keqiang said that the nation will avoid a hard landing, while limiting the scale of any stimulus to support economic growth. “The Chinese government is adjusting its economic operations to ensure the minimum growth rate is 7.5 percent, the level to ensure job creation,” Li said in a speech at Mansion House in London Wednesday. Inflation won’t exceed 3.5 percent, he added, without specifying a time period for the prediction. China will have “medium to high-level” growth in the
Abe fails to shake firms’ addiction to cash

Jun 19, 2014

Japanese firms boosted their cash stockpile to a record in the first quarter, underlining challenges Prime Minister Shinzo Abe faces a year and a half into his drive to reflate the economy. Nonfinancial companies’ holdings of cash and deposits rose 4.1 percent to 232 trillion yen ($2.3 trillion) at the end of March, while they increased borrowing from private banks at the slowest pace since the final quarter of 2012, a Bank of Japan report showed Wednesday. Households kept more than half of thei
Argentina says won’t make next bond payment

Jun 19, 2014

NEW YORK (AFP) ― Argentina will not make a bond service payment due June 30 in New York as ordered by a U.S. judge, the economy ministry said Wednesday, moving the country closer to default.U.S. District Judge Thomas Griesa earlier ordered Argentina to pay hedge funds that refused to join a restructuring of the country’s debt and want to be paid the full $1.3 billion face value of the bonds they hold.The Argentinian economy ministry said it “regretted” Griesa’s decision to uphold his 2012 ruling