The Korea Herald

Spain fights recession, deficit

Oct 24, 2012

Investors are wary of betting against the Euro bank, which could step in whenever Spain decides formally to request help
Ten EU nations get go-ahead on financial transactions tax

Oct 23, 2012

BRUSSELS (AFP) -- The European Commission on Tuesday agreed a formal first step enabling 10 EU nations to launch a hotly contested Financial Transactions Tax slated to raise billions for the public purse.After a plan to launch the tax across the European Union was scuttled by Britain and others, the EU executive proposed that 10 countries in favour, including France, Germany, Italy and Spain, be allowed to go ahead on their own.
Moody’s cuts ratings for fives Spanish regions

Oct 23, 2012

WASHINGTON (AFP) ― Moody’s cut its debt rating for five Spanish regions Monday by one or two notches each, citing their weak financial positions and looming debt redemptions.Extremadura was cut to Ba1 due to a “persistently high” operating deficit and frail liquidity.Andalucia (Ba2), Castilla-La Mancha (Ba3), Catalunya (Ba3) and Murcia (Ba3) were all cited for poor liquidity and large maturing debt obligations.Their downgrade “was driven by the deterioration in their liquidity positions, as evid
France, after Germany, backs Ireland on bank debt deal

Oct 23, 2012

PARIS (AFP) ― France on Monday boosted hopes for ailing Irish banks to benefit retroactively from a new eurozone bailout fund, by repeating the German position that the crisis-hit country was a “specific case.”The support eased Irish fears that were sparked when German Chancellor Angela Merkel ruled out a similar proposal for troubled Spanish lenders.But French President Francois Hollande hedged on whether Spain, whose banks have been bogged down with bad loans since a 2008 property crash, shoul
Fed expected to keep policy on hold

Oct 23, 2012

WASHINGTON (AFP) ― Despite signs of revival in the housing sector and a lower jobless rate, a cautious U.S. Federal Reserve is expected to keep its stimulus programs in place at its policy meeting this week.Six weeks after breaking out a new bond-buying program labeled QE3 to shore up the economy, analysts see little reason to expect the Fed’s policy board, the Federal Open Market Committee, to reverse direction in its session on Tuesday and Wednesday.The signs of recovery remain too feeble, and
Volkswagen plans to invest $4.4b to expand in Brazil

Oct 22, 2012

Volkswagen AG plans to invest 3.4 billion euros ($4.4 billion) in upgrading its model lineup and factories in Brazil as part of its goal to become the world's biggest carmaker by 2018."Brazil is very much a cornerstone of our Strategy 2018," Chief Executive Officer Martin Winterkorn said yesterday ahead of the Sao Paulo motor show.VW's investment plan in Brazil runs through 2016 and includes spending 126 million euros at its component plant in Sao Carlos to expand production to 4,800 engines a d
Germany's Siemens pulls plug on solar ambitions

Oct 22, 2012

FRANKFURT (AFP) -- German engineering giant Siemens said on Monday it is pulling the plug on its activities in solar energy owing to cut-throat competition and waning public subsidies.Siemens said it "plans to divest its solar business activities and is currently holding talks with potential buyers on this subject."It would instead focus its renewable energy activities on wind and hydro power, said the group, which previously boasted it plans to become a champion of "green" energy."The energy di
U.N. Green Fund could buy credits from carbon market: CEPS

Oct 22, 2012

A suggestion by a high-level panel that the United Nations Green Climate Fund buy certain emission credits from the Clean Development Mechanism could help alleviate a supply glut, according to a research group.Using the Green Climate Fund to buy Certified Emission Reductions, for example, "takes eminent sense and is a credible scenario that must be seriously examined," Andrei Marcu, head of the Centre for European Policy Studies' Carbon Market Forum in Brussels, said in an e-mailed report today.
Greece says 2011 deficit and public debt worse than thought

Oct 22, 2012

ATHENS (AFP) - Greece's national statistics agency revised upwards on Monday the country's 2011 deficit and public debt figures, which will likely further complicate efforts to meet fiscal targets set by international creditors for bailout aid.According to the still provisional data, the 2011 deficit stood at 9.4 percent of gross domestic product and the public debt at 170.6 percent, EL.STAT said."The revisions as regards the debt ratios are primarily due to the update of gross domestic product
Asset-backed securities may face tougher Basel bank rules

Oct 22, 2012

Banks trading asset-backed securities may face tougher capital requirements and stricter oversight from global supervisors amid concerns that regulation is failing to curb excessive-risk taking.The Basel Committee on Banking Supervision is about to embark on a "fundamental" review of how securitization is regulated, Wayne Byres, the group's secretary general, said in an interview last week."Ultimately it's driven at capital treatment, but it's also about reflecting on what have we learned from t
German economy could contract in 4th quarter: Bundesbank

Oct 22, 2012

FRANKFURT (AFP) -- The German economy, Europe's biggest, will see a sharp slowdown in growth or may even contract at the end of the year as the eurozone crisis bites, the German central bank or Bundesbank warned Monday.Germany has so far held up to Europe's long-running sovereign debt crisis much better than its eurozone neighbours.While many eurozone countries slipped into recession, Germany notched up growth of 0.5 percent in the first quarter and 0.3 percent in the second quarter.However, "th
BP, Rosneft agree mega shake-up of Russian energy landscape

Oct 22, 2012

LONDON (AFP) - Rosneft gobbled up BP's highly-profitable Russian joint venture, transforming itself into a top player in the global oil sector in a $61 billion (47 billion euro) deal Monday that gives the BP nearly a fifth of the Russian energy giant and ensures access to key Arctic resources.British BP said in a statement that it has agreed to sell its half of Russian venture TNK-BP to Rosneft for $17.1 billion and another 12.84 percent share in the state firm.BP added it would spend $4.8 billi
Japan needs more monetary easing, policy stimulus: Maehara

Oct 22, 2012

Japanese Economy Minister Seiji Maehara said the country needs more monetary easing and policy efforts to encourage growth as the government prepares for election against an opposition that has stronger public support. The government plans to inject about 200 billion yen ($2.5 billion) into the economy, Maehara said Sunday on a Fuji Television program, without giving details on the source of those funds. Spending this fiscal year includes 910 billion yen of stimulus programs requiring parliament
Japan exports fall on global slowdown

Oct 22, 2012

TOKYO (AFP) ― Japan posted its worst September trade figures in more than 30 years, official data showed Monday, as the global slowdown and a territorial spat with China weighed on the world’s third-largest economy.Tokyo said its monthly trade deficit hit 558.6 billion yen ($7.0 billion), reversing a year-earlier surplus of 288.8 billion yen, data from the finance ministry showed, as overall exports fell 10.3 percent on-year.It was the first deficit for September since 1979, when comparable data
Tens of thousands rally in London against austerity

Oct 21, 2012

LONDON (AFP) ― Tens of thousands of people marched through London and other British cities on Saturday in protest against spending cuts by Prime Minister David Cameron’s struggling coalition government.Marchers carried signs reading “No cuts” and “Cameron has butchered Britain,” condemning the austerity measures introduced by Cameron’s Conservative-led coalition in a bid to reduce Britain’s huge deficit.Police said the main march was peaceful, but two people were arrested as breakaway anarchist