The Korea Herald

ECB to trim interest rates, but no more

Jul 4, 2012

Central bank holds off on emergency measures to keep pressure on governmentsFRANKFURT (AP) ― Europe’s sinking economy and wobbly banks could get modest help Thursday from an interest rate cut by the European Central Bank.Economists think the ECB will cut its benchmark refinancing rate by at least a quarter point to 0.75 percent, a record low. On Tuesday, the rising expectation of a rate cut helped lift stock markets in Europe, which have been rallying since European leaders last week announced n
IMF cuts U.S. 2012 growth forecast to 2%

Jul 4, 2012

IMF calls U.S. recovery tepid, warns of ‘fiscal cliff’ aheadThe U.S. economy will grow by 2 percent this year and about 2.25 percent in 2013 amid a “tepid” recovery and the European debt crisis, the International Monetary Fund said, lowering its previous projections. The U.S. remains “subject to elevated downside risks, in light of financial strains in the euro area and uncertainty over domestic fiscal plans,” the IMF said in a statement Tuesday. In an April report, the IMF forecast U.S. growth
U.K. fraud office considers Barclays prosecutions

Jul 4, 2012

LONDON (AP) ― British prosecutors said Monday they are examining whether they can bring criminal charges on top of the massi ve fines imposed on Barclays bank for a financial market manipulation scandal. The announcement followed hours after Barclays’ chairman, Marcus Agius, resigned and accepted ultimate responsibility for the misbehavior between 2005 and 2009 which cost the company $453 million in fines by U.S. and British agencies. Britain’s Serious Fraud Office said it hopes to decide whethe
Euro weak in Asia ahead of ECB meeting

Jul 4, 2012

TOKYO (AFP) ― The euro was weak in Asian trade on Tuesday, after the common currency rallied sharply late last week with traders now focusing on a European Central Bank rate-setting meeting.The common currency was quoted at $1.2585 and 100.09 yen in Tokyo morning trade, little changed from $1.2582 and 100.05 yen in New York late Monday.The dollar was also little changed at 79.53 yen, from 79.50 yen in the previous day’s trade, ahead of key U.S. jobs data later in the week as markets remain cauti
Japan gives $32 million to IMF for assistance

Jul 4, 2012

WASHINGTON (AFP) ― Japan is contributing more than $32 million to the International Monetary Fund to help finance the global lender’s technical assistance and training work this year, the IMF said Monday.The money will be used for IMF support in low- and lower middle-income member countries, especially in Asia, during the fund’s 2013 financial year that began on May 1.Since 1990 Japan has provided financial support for the program, and has contributed more than $465 million to date, benefiting c
Cyprus, Popular Bank agree 1.79b euro deal

Jul 4, 2012

NICOSIA (AFP) ― The Cyprus government on Monday acquired 1.79 billion euros worth of Cyprus Popular Bank shares to recapitalize one of the island’s two largest banks exposed to Greek debt, the finance ministry said.“Taking notice of the amount of shares subscribed by private investors and in line with the decision of the council of ministers ... for the underwriting of the rights issue of capital ... the government acquired 1.79 billion euros ($2.25 billion worth of) shares in the bank,” the min
Japan securities firms told to check systems

Jul 4, 2012

TOKYO (Reuters) ― Japan’s Financial Services Minister Tadahiro Matsushita said on Tuesday he has asked 12 large securities houses involved in public offerings to check their information control systems and inform his ministry of the results. The request comes after scandals over insider trading in number of large public offerings in Japan, including one involving employees of Nomura Securities. Five Japanese and seven foreign firms were named by the ministry. Besides Nomura the Japanese firms ar
Microsoft takes $6.2 billion hit to account for ad woes

Jul 3, 2012

SAN FRANCISCO (AP) ― Microsoft is absorbing a $6.2 billion charge to reflect that one of the biggest deals in its 37-year history turned out to be a dud. The non-cash charge announced Monday could saddle Microsoft Corp. with a loss for its fiscal fourth quarter ended in June. Analysts polled by FactSet had predicted Microsoft would earn about $5.3 billion for the period. The company hasn’t suffered a quarterly loss during the past 20 years, according to its website. Microsoft, which is based in
As eurozone crisis bites, jobless rate hits 11.1%

Jul 3, 2012

BRUSSELS (AFP) ― The eurozone debt crisis delivered more bad news on Monday with data showing record high unemployment of 11.1 percent and a manufacturing outlook at its lowest levels for three years.Unemployment hit its highest point since the eurozone was created in 1999 and analysts warned that job queues would likely continue to lengthen in coming months.“It now looks odds-on that the eurozone unemployment rate will reach 11.5 percent by the end of the year, although the situation will vary
U.S. manufacturing sees first decline in 3 years

Jul 3, 2012

WASHINGTON (AP) ― U.S. manufacturing shrank in June for the first time in nearly three years, adding to signs that economic growth is weakening. Production declined, and the number of new orders plunged, according to a monthly report released Monday by the Institute for Supply Management. The slowdown comes as U.S. employers have scaled back hiring, consumers have turned more cautious, Europe faces a recession and manufacturing has slowed in big countries like China. “This is not good,” said Dan
Greece faces crucial audit by creditors

Jul 3, 2012

ATHENS (AFP) ― Greek Prime Minister Antonis Samaras on Monday huddled with ministers and allies ahead of a crucial creditor audit as a European Central Bank official urged it to carry through with tough reforms.Samaras, who is still recovering from major eye surgery at home, met with the leaders of the socialist and moderate leftist parties that make up his coalition, a government spokesman said.“The leaders will remain in contact,” spokesman Simos Kedikoglou told reporters, adding that the coal
Barclays bank chief executive Diamond resigns

Jul 3, 2012

LONDON (AFP) -- Barclays chief executive Bob Diamond has resigned with immediate effect over a rate-rigging scandal at the British banking giant, the company said in a shock announcement on Tuesday.Although Diamond had faced growing calls to step down, it was thought that he would ride out the storm due to the resignation of Barclays’ chairman Marcus Agius on Monday.“Barclays today announces the resignation of Bob Diamond as chief executive and a director of Barclays with immediate effect,” the
Samsung keeps top spot in U.S. mobile phone market

Jul 3, 2012

South Korean tech giant Samsung Electronics Co. maintained the top spot in the U.S. mobile phone market, strengthening its supremacy as the world's leading handset manufacturer, data showed Tuesday.The company's market share in the United States came to 25.7 percent during the three-month average period ending in May, up 0.1 percentage point from three months earlier, according to U.S. analytics f
Barclays chairman resigns: reports

Jul 2, 2012

LONDON (AFP)--- Barclays chairman Marcus Agius resigned on Monday, saying suspected manipulation of inter-bank lending rates by staff had “dealt a devastating blow” to the reputation of the British banking giant.Barclays said Agius, who has chaired the bank for six years, would remain in his post until a successor was found.“I am truly sorry that our customers, clients, employees and shareholders have been let down,” Agius said in a company statement, less than a week after the bank was fined ov
China court: Apple pays $60m to settle iPad dispute

Jul 2, 2012

BEIJING (AP) ― Apple has agreed to pay a Chinese company $60 million to settle a dispute over ownership of the iPad name, a court announced Monday, removing a potential obstacle to sales of the popular tablet computer in the key Chinese market. Apple Inc. says it bought the global rights to the iPad name from Shenzhen Proview Technology in 2009 but Chinese authorities say the rights in China were never transferred. A Chinese court ruled in December that Proview still owned the name in China and