The Korea Herald

Obama taking tough stand on fiscal cliff talks

Dec 3, 2012

President Barack Obama is ready to cut federal spending to reduce the nation's spiraling debt but won't make any deal with Republicans until they first agree to raise taxes on wealthy Americans and specify their own demands for reducing government outlays for a vast array of programs, Treasury Secretary Timothy Geithner said in interviews that aired Sunday, explicitly outlining a tough administration negotiating position for avoiding the looming “fiscal cliff.”If the White House and Congress can
Siemens’ unit says set to cut 4,700 jobs

Dec 2, 2012

FRANKFURT (AFP) ― German light bulb maker Osram, which is soon to be spun off by its parent, engineering giant Siemens, said on Friday it is planning to cut costs by 1 billion euros ($1.3 billion) by 2015.As part of the cost-cutting programme, the group will sell factories, which will reduce the 39,000-strong workforce by about 4,700 jobs, Osram said in a statement.Due to fundamental changes in the lighting sector, Osram had already announced in January 2012 that it would adjust its capacities a
Eurozone unemployment hits record

Dec 2, 2012

LONDON (AP) ― Another month, another record unemployment rate for the economy of the 17 European Union countries that use the euro.Figures released Friday by Eurostat, the EU’s statistics office, showed that the recession in the eurozone pushed unemployment up in the currency bloc to 11.7 percent in October, the highest level since the introduction of the euro in 1999.The rise from September’s previous record of 11.6 percent was anticipated after the eurozone returned to recession in the third q
No deal in sight 1 month before U.S. ‘fiscal cliff’

Dec 2, 2012

WASHINGTON (AP) ― Washington politicians have one month to step back from the so-called “fiscal cliff,” across-the-board tax hikes and austerity-driven spending cuts likely to return the country to recession, and a top Republican declares there has been no real progress after two weeks of talks between President Barack Obama and a divided Congress.The president, who has called for settling the issue before Christmas, visited a Philadelphia suburb to campaign for his demand that any deal include
Moody’s cuts rating of ESM rescue fund

Dec 2, 2012

WASHINGTON (AFP) ― Moody’s cut the triple-A rating of the European Stability Mechanism rescue fund on Friday by one notch and gave it a negative outlook, citing its earlier downgrade of key ESM backer France.Moody’s said the French downgrade on Nov. 19, a one-step cut also from “Aaa,” reflects its view that there has been “a marginal diminution” in the likelihood that Paris will keep to its financial obligations, including its commitment to support the ESM.For that reason, Moody’s also lowered t
No deal in sight 1 month before U.S. 'fiscal cliff'

Dec 1, 2012

Washington politicians have one month to step back from the so-called “fiscal cliff,” across-the-board tax hikes and austerity-driven spending cuts likely to return the country to recession, and a top Republican declares there has been no real progress after two weeks of talks between President Barack Obama and a divided Congress.The president, who has called for settling the issue before Christmas, visited a Philadelphia suburb to campaign for his demand that any deal include higher tax rates o
Moody's cuts AAA rating of ESM rescue fund

Dec 1, 2012

Moody's cut the triple-A rating of the European Stability Mechanism rescue fund on Friday by one notch and gave it a negative outlook, citing its earlier downgrade of key ESM backer France.Moody's said the French downgrade on November 19, a one-step cut also from Aaa, reflects its view that there has been "a marginal diminution" in the likelihood that Paris will keep to its financial obligations, including its commitment to support the ESM.For that reason, Moody's also lowered the ESM's rating t
Japan OKs $10.7 billion stimulus

Nov 30, 2012

TOKYO (AP) ― Japan unleashed yet another barrage of stimulus at its stagnant economy on Friday as debate over how to revive growth heated up ahead of a general election widely expected to deal a severe blow to the ruling Democratic Party.Fresh data for October showed an uptick in industrial output from the month before, the first increase in four months, but little else in the way of encouragement.The opposition Liberal Democratic Party, which is pushing for more aggressive action to spur growth
Spain banks cut thousands of jobs in shake-up

Nov 29, 2012

MADRID (AFP) ― Crippled Spanish banks said they would cut thousands of jobs after Brussels on Wednesday gave a green light for a big slice of aid to rescue them with tough conditions.European banking stocks plunged after Bankia, the giant that sparked a 100-billion-euro bailout for Spain’s banks by the eurozone, said it would have to cut 6,000 jobs under the restructuring approved for it and three others.NCG, mother company of one of the other banks, Novogalicia, said in a statement it would lay
Obama hopes for deal to avoid cliff

Nov 29, 2012

Democrats hint at concessions on benefits as ‘cliff’ talks accelerate; GOP may give ground too
China island row squeezes Japan car production

Nov 29, 2012

Three of Japan's biggest car makers said Thursday that output in China slumped again last month as they continue to feel the effects of a bitter territorial dispute between Tokyo and Beijing.Toyota, the world's best-selling auto maker in the first six months of the year, produced 61 percent fewer cars in China year-on-year in October, it said, while Nissan cut output by 44 percent and Honda by 54 percent.The figures follow earlier data showing all three companies had seen large falls in sales in
Fitch downgrades Argentina rating by five notches

Nov 28, 2012

WASHINGTON (AFP) ― Bond rater Fitch chopped Argentina’s rating Tuesday by five notches to “CC,” deep in junk territory, saying it expects Buenos Aires to default after a U.S. court ordered it to repay old debt. The downgrade “reflects Fitch’s view that a default by Argentina is probable,” the agency said.The downgrade came after a New York judge ruled on Nov. 21 that Argentina must repay holders of some $1.3 billion worth of bonds the country already defaulted on 11 years ago.The judge said that
China not currency manipulator: U.S.

Nov 28, 2012

WASHINGTON (AFP) ― The U.S. Treasury on Tuesday again stopped short of labeling China a currency manipulator, noting gains in the value of the yuan, but said the currency remains “significantly undervalued.”In a twice-yearly finding to answer congressional critics of China’s overwhelming bilateral trade advantage, the Treasury declined to slap Beijing with the currency manipulator tag, a move that could spark U.S. trade sanctions.The U.S. Treasury argued that Beijing knows that an appreciating c
U.S. consumers lifting economy

Nov 28, 2012

Consumer confidence, business spending and home prices up; fiscal cliff threatens gains
Fitch says Argentina default is ‘probable’

Nov 28, 2012

The credit rating agency Fitch Ratings on Tuesday downgraded Argentina, which is locked in a court battle in New York over its debt, and said the country would probably default.Fitch cut its long-term rating for Argentina to “CC” from “B,” a downgrade of five notches, and cut its short-term rating to “C” from “B.” A rating of “C” is one step above default.U.S. judge Thomas Griesa of Manhattan federal court last week ordered Argentina to set aside $1.3 billion for certain investors in its bonds b