The Korea Herald

ECB expected to hold key rates

Oct 4, 2012

LJUBLJANA, Slovenia (AFP) -- The European Central Bank sat down for its monthly policy meeting here Thursday, but is expected to hold its fire on interest rates and other policy moves for now, analysts said.Holding its meeting at Brdo castle outside Ljubljana, rather than the usual venue of the ECB‘s Eurotower headquarters in Frankfurt, the bank’s decision-making governing council will keep its key refinancing or "refi" rate at the current historic low of 0.75 percent, analysts predicted.And aft
ADB slashes developing Asia’s growth

Oct 3, 2012

BANGKOK (AP) ― After years of rapid growth, Asia’s developing economies now face much more modest prospects and must refashion themselves to reduce dependence on exports, the Asian Development Bank said Wednesday in a report that slashes growth forecasts for this year and next. The ADB said growth in developing Asia, which includes giant emerging economies such as India, China and Indonesia, will slow to 6.1 percent this year from 7.2 percent last year and only partly rebound to 6.7 percent in 2
Spain P.M. denies bailout call ‘imminent’

Oct 3, 2012

Spanish Prime Minister Mariano Rajoy has denied the country was planning an “imminent” demand for a sovereign bailout from the eurozone to end its financial crisis.Market analysts said Spain might call for help within days to stabilise its public finances, but European officials cast doubt on that Tuesday, saying that key players were still far from agreement.Rajoy suggested the same when asked at a news conference whether a bailout demand by Spain was “imminent,” he replied: “No,” without elabo
EU jobless hits record high

Oct 2, 2012

BRUSSELS (AP) ― Unemployment across the 17 countries that use the euro remained at its record high rate of 11.4 percent in August renewing concerns that efforts to slash debts have sacrificed jobs. While European leaders have calmed financial markets in recent months with promises to cut spending and build a tighter union, they haven’t solved the eurozone’s deep-rooted economic problems and the rising tide of joblessness. In August, 34,000 more people lost their jobs in the eurozone, according t
Spain, Greece unveil austerity plans

Sept 28, 2012

Both countries outline new budget cuts and tax hikesMADRID (AP) -- Spain and Greece outlined plans Thursday to reduce government spending and raise taxes to convince international lenders and financial markets they are on track to cut their deficits. The latest round of belt-tightening comes as economies across Europe get weaker and public resentment toward austerity grows stronger. Spain's plan to slash its deficit in 2013 and 2014 signals to many analysts that it’s preparing to request a finan
Spain, Greece launch austerity plans to secure aid

Sept 28, 2012

Spain and Greece outlined plans Thursday to reduce government spending and raise taxes to convince international lenders and financial markets they are on track to cut their deficits.The latest round of belt-tightening comes as economies across Europe get weaker and public resentment toward austerity grows stronger.Spain's plan to slash its deficit in 2013 and 2014 signals to many analysts that it
U.S. economy grew only 1.3% in Q2

Sept 27, 2012

WASHINGTON (AFP) - The U.S. economy grew 1.3 percent in the second quarter of the year, far weaker than previously believed, Commerce Department data released Thursday showed.The Commerce Department's third estimate of gross domestic product growth for the April-June period was well below expectations that the annual growth rate would hold unchanged at the prior estimate of 1.7 percent.The latest
China industrial profits fall 6.2%

Sept 27, 2012

Chinese industrial companies’ profits dropped for a fifth month in August, a government report showed, adding to signs the nation’s economic slowdown is extending into a seventh quarter. Net income fell 6.2 percent from a year earlier to 381.2 billion yuan ($60.4 billion), the National Bureau of Statistics said today in Beijing. That compares with a 5.4 percent decline in July and a 1.7 percent slide in June. Thursday’s report may increase pressure on Premier Wen Jiabao to step up easing measure
U.S. eases Myanmar import ban

Sept 27, 2012

NEW YORK (AP) ― Secretary of State Hillary Rodham Clinton said Wednesday the U.S. will ease its import ban on Myanmar that had been a key plank of remaining American economic sanctions. “In recognition of the continued progress toward reform and in response to requests from both the government and the opposition, the United States is taking the next step in normalizing our commercial relationship,” Clinton said during a meeting with President Thein Sein on the sidelines of the U.N. General Assem
Unswayed by protests, Spain unveils new austerity budget

Sept 27, 2012

MADRID (AFP) - Spain's government met Thursday to take an axe to spending in a new budget for 2013, unswayed by angry protests but bowed by markets anticipating a full sovereign bailout, and soon.Spain has said it will lop spending and boost taxes to rake in 39 billion euros ($50 billion) in the budget, adding to the pain that sent thousands of protesters into Madrid's streets on the previous two
ECB sees grounds for euro optimism

Sept 26, 2012

BERLIN (AFP) ― European Central Bank President Mario Draghi said Tuesday he saw grounds for optimism on the euro area, as he defended his recent actions to shore up the bloc in front of a skeptical German audience.In a wide-ranging speech to the Federation of German Industries, Draghi also expressed confidence European governments would be able to set aside their differences on a proposed EU banking union spearheaded by the ECB.“The first question that comes to mind for all of us is the followin
Japan's Sharp to cut 11,000 jobs, sell assets: report

Sept 25, 2012

TOKYO (AFP) -- Troubled Japanese consumer electronics giant Sharp is to cut 11,000 jobs worldwide and sell $2.7 billion worth of assets and factories in a bid to turn its finances around, a report said Tuesday.The company, best known for home appliances, including LCD televisions, will also cut wages, Kyodo News said, citing a company plan presented to creditor banks on Monday.Once the new plan is finalized, the banks are expected to offer fresh loans totaling 360 billion yen ($4.6 billion) to t
S&P cuts ratings on Japan's Sony

Sept 25, 2012

TOKYO (AFP) -- Ratings agency Standard & Poor’s on Tuesday lowered its long-term credit ratings on Sony by one notch, citing a slow recovery of its mainstay consumer electronics businesses.The agency downgraded its long-term corporate credit ratings on the Japanese electronics giant and its subsidiaries from “BBB+” to “BBB.” The move keeps them two steps above junk status.However, the outlook on long-term corporate credit ratings is negative.“The pace of recovery in earnings of Sony's mainstay c
World Bank’s Kim: Emerging nation growth not zero-sum

Sept 25, 2012

World Bank President Jim Yong Kim said global economic growth isn’t a “zero-sum game” pitting nations against each other and the world has a “huge stake” in ensuring that developing countries succeed. “Having fragile states, having conflict-affected states, this is not good for the entire world economy,” Kim said in an interview airing this afternoon on Bloomberg Television’s “Street Smart” with Trish Regan. Developing economies “have been the drivers of growth that we have seen in the last five
IMF urges Europe, U.S. to boost growth

Sept 25, 2012

Lagarde says IMF likely to cut global growth estimatesWASHINGTON (AFP) ― The head of the International Monetary Fund, Christine Lagarde, called Monday for urgent action from policy makers in Europe and the United States to turn around a slowing global economy.“My main message today” is “the urgent need to implement the policy actions required to secure the global recovery,” Lagarde said in a speech at a Washington think tank.The global economy “is still fraught with uncertainty” after the U.S.-c