The Korea Herald

France’s 75% tax rate on rich struck down

Dec 30, 2012

PARIS (AFP) ― France’s top constitutional body on Saturday struck down a 75-percent upper income tax rate, dealing a major blow to Socialist President Francois Hollande, who had made it his centerpiece tax measure.The government vowed to push ahead with the tax rate, which would apply to incomes over a million euros ($1.3 million) a year, and propose a new measure that would conform with the constitution.The tax rate had angered business leaders and prompted some wealthy French citizens to seek
Spain has tough year ahead: P.M.

Dec 30, 2012

MADRID (AP) ― Spain faces another tough year as it grapples with recession, a deep financial crisis and 25 percent unemployment, its prime minister said.In his end-of-year assessment, Mariano Rajoy said the country’s crisis had been worse than anticipated. “We are facing a very tough year, especially in its first half,” he said. “Spain’s economy will remain in recession for some time, but we expect it will improve in the second half of 2013.”While Rajoy was speaking, investor concerns government
Dollar Gains as Fiscal-Cliff Debate Spurs Safety Bid; Euro Falls

Dec 28, 2012

The dollar rose the most in a week against the euro as concern U.S. lawmakers will fail to avert the so-called fiscal cliff of more than $600 billion of tax increases and spending cuts spurred demand for safer assets. The U.S. currency strengthened against most of its 16 major counterparts before President Barack Obama meets Democratic and Republican congressional leaders today as a year-end budget deadline approaches. The yen earlier fell to a 28-month low versus the dollar after Japanes
Fiscal cliff knocks U.S. stocks; confidence dims

Dec 28, 2012

The “fiscal cliff” took the stock market on a roller coaster Thursday. Small developments in the tense budget standoff yanked stocks back and forth throughout the day.In the end, U.S. stocks closed lower for the fourth day in a row, sending the unwelcome message that the budget standoff is still far from solved, the economy still far from healed.The erratic performance underscored how the “fiscal cliff” can yank the market back and forth. The term refers to automatic tax increases and government
Greece says needs 27.5 bn euros to recapitalize 4 biggest banks

Dec 28, 2012

Greece's four biggest banks need 27.5 billion euros ($36.4 billion) in recapitalization funds by the end of April, the national central bank said in a report released Thursday."Capital needs for all Greek commercial banks were estimated in May 2012 at 40.5 billion euros, of which the 27.5 billion euros corresponded to the four core banks," it said.The four banks, identified as the National Bank of Greece (NBG), Alpha, Eurobank, and Piraeus, will receive support from the state because they are co
Settlement reached in Toyota recall cases

Dec 27, 2012

Settlement worth more than $1 billion reached in case involving Toyota’s sudden acceleration
India set to clear IKEA retail plan: minister

Dec 27, 2012

NEW DELHI (AFP) ― India is on track to approve a bid by Swedish furniture giant IKEA to open its trademark blue-and-yellow stores in the country as it seeks big new markets for its flat-pack products, a minister said.Last month the Foreign Investment Promotion Board rejected 15 of IKEA’s 30 product lines, underscoring the regulatory hurdles faced by foreign stores hoping to enter the Indian market.But after complaints from IKEA over the curbs, commerce minister Anand Sharma said late Wednesday t
Japan’s Aso hits out at BOJ: reports

Dec 27, 2012

TOKYO (AFP) ― Japan’s new finance chief hit out at the country’s under-pressure central bank, reports said Thursday, saying it was “slow” in tackling deflation that has plagued the economy for years.The remarks by Taro Aso, a former prime minister, were the latest sharp comments that the Liberal Democratic Party, which won national elections this month, has thrown at the Bank of Japan over its handling of policy matters.The BOJ was “slow in its response to deflation,” Aso said in his inaugural a
Obama, Congress in last push on ‘cliff’

Dec 27, 2012

U.S. Treasury says it will take steps to delay hitting borrowing limit as budget negotiations resume
Starbucks makes cliff push

Dec 27, 2012

NEW YORK (AP) ― Starbucks is using its coffee cups to jump into the political fray in Washington.The world’s biggest coffee chain is asking employees at cafes in the Washington, D.C. area to scribble the words “Come Together” on cups for drink orders on Thursday and Friday. CEO Howard Schultz says the words are intended as a message to lawmakers about the damage being caused by the divisive negotiations over the “fiscal cliff.”It’s the first time employees at Starbucks cafes are being asked to w
Settlement reached in Toyota acceleration cases

Dec 27, 2012

Toyota Motor Corp. says it has reached a settlement worth more than $1 billion in a case involving unintended acceleration problems in its vehicles.The company said Wednesday the deal will resolve hundreds of lawsuits from Toyota owners who said the value of their cars and trucks plummeted after a series of recalls stemming from claims that Toyota vehicles accelerated unintentionally.Steve Berman, a lawyer representing Toyota owners, said the settlement is the largest in U.S. history involving a
Obama, Congress in last push to avert 'cliff'

Dec 27, 2012

President Barack Obama and members of Congress prepared for one last try to avert across-the-board tax increases and spending cuts known as the fiscal cliff, as the U.S. Treasury Department warned Wednesday that it will begin taking action to prevent the government from hitting its debt limit.Treasury Secretary Timothy Geithner said in a letter to congressional leaders that the department will use accounting measures to save approximately $200 billion. That could keep the government from reachin
World’s longest bullet train service begins

Dec 26, 2012

BEIJING (AFP) ― China started service Wednesday on the world’s longest high-speed rail route, the latest milestone in the country’s rapid and ― sometimes troubled ― super fast rail network.The opening of the new 2,298-kilometer line between Beijing and Guangzhou means passengers will be whisked from the capital to the southern commercial hub in less than a third of the 22 hours previously required.China Central Television broadcast the departure of the first train live from Beijing West Railway
VW races with GM for China crown

Dec 26, 2012

Volkswagen AG will vie with General Motors Co. for the sales crown among foreign automakers in China next year, gaining share as Japanese carmakers led by Toyota Motor Corp. struggle to recover amid a territorial dispute. VW, whose luxury Audi sedans are popular with Chinese bureaucrats, hasn’t held the lead in the country since 2004 and will probably sell 2.7 million vehicles in the country next year to GM’s 2.65 million, helped by eight new or revamped models including the Santana, Golf, Skoda
India joins Indonesia in juggling growth, price risks in 2013

Dec 26, 2012

Central banks in Indonesia and India, with the worst-performing currencies among Asian emerging markets this year, will face more challenges in 2013 as they balance inflation risks with the need to boost growth. The Reserve Bank of India must deal with “conflicting cues” from elevated prices and an economic slowdown, complicating policy decisions even after it recently signaled there is room to lower interest rates, Mizuho Corporate Bank Ltd. economist Vishnu Varathan said. Indonesia’s inflation