The Korea Herald

Asian investors buy Saab to make electric cars

Jun 14, 2012

STOCKHOLM (AFP) ― Bankrupt Swedish carmaker Saab received a new lease on life on Wednesday, with Asian investors aiming to revive the iconic brand to make electric cars for the Chinese market.National Electric Vehicle Sweden AB, a new company created by two firms in Hong Kong and Japan just a few months ago and registered in Sweden with the express purpose of buying Saab, said it would buy the ill-fated automaker for an undisclosed sum.“I am delighted that we can build on Saab Automobile’s skill
Greece running out of cash for pensions

Jun 14, 2012

ATHENS (AFP) ― Greece should have enough cash to pay pensions at least for July, the labor minister said on Wednesday after a report that the state only had enough money to pay salaries and pensions until July 20.“Pension payments for July should not be a problem,” Antonis Roupakiotis told a press conference ahead of critical elections on Sunday, adding he could not comment on any payment after that as it was beyond his government’s mandate.The minister, who is a member of a cabinet appointed on
Moody’s slashes Spain’s credit rating

Jun 14, 2012

NICOSIA, Cyprus (AP) ― Moody’s Investor Service cut the Spanish government’s credit rating Wednesday, a direct result of the rescue package lined up by European leaders over the weekend. The rating lowered Spain’s rating from “A3” to “Baa3,” which leaves it in investment-grade status but just one notch above junk. The downgrade comes after European leaders announced a 100 billion euros ($125 billion) loan to Spain on Sunday. The loan is meant to help Spain shore up its hobbled banking system. Bu
Moody's slashes Spain credit rating by three notches

Jun 14, 2012

Moody's slashed Spain's credit rating by three notches Wednesday, days after the government set a deal to borrow 100 billion euros ($125 billion) to shore up its banks.“This will further increase the country's debt burden, which has risen dramatically since the onset of the financial crisis,” Moody's said.The rating was dropped three levels from A3 to Baa3, the lowest level of “investment grade” o
'No danger’ for Italy if Monti stays on track: Schaeuble

Jun 13, 2012

P.M. insists Italy ‘will not need a bailout now or in future’MILAN (AFP) -- There will be no danger of Italy succumbing to the debt crisis if it continues to implement structural reforms and growth measures, German Finance Minister Wolfgang Schaeuble said.“If Italy continues on the path Monti has set out on it will not be in danger,” Schaeuble said in an interview published by La Stampa newspaper on Wednesday.“Italy has progressed greatly under Monti's government. That is acknowledged throughout
Developing world needs bigger buffers, World Bank says

Jun 13, 2012

WASHINGTON (AFP) ― The World Bank on Tuesday warned developing countries to boost their defenses against Europe’s debt crisis, predicting years of volatility in a flailing global economy.In its semiannual report on worldwide economic conditions, the World Bank forecast the global economy would have “weak growth” of 2.5 percent in 2012, while developing countries’ pace would slow to 5.3 percent, the most sluggish rate in the past 10 years.High-income countries should see a feeble 1.4 percent grow
Fitch cuts ratings on 18 Spanish banks

Jun 13, 2012

MADRID (AFP) ― Fitch Ratings downgraded 18 Spanish banks on Tuesday, twisting the knife on a country being pummelled on the financial markets despite a massive banking bailout.Fitch, which slashed Spain’s sovereign debt rating by three notches last week to “BBB” and downgraded the two biggest banks Santander and BBVA on Monday, warned that some banks’ loan books could weaken.“This is particularly true for those banks whose loan books are heavily exposed to the construction and real estate sector
German leader urges more Europe reform

Jun 13, 2012

Merkel: ‘Disastrous’ to stop Europe’s structural reform pathBERLIN (AFP) ― German Chancellor Angela Merkel Tuesday hailed Spain’s request for a banking bailout but stressed it would come with strings attached, as she warned Europe that halting reforms would be “disastrous.”In a speech to members of her conservative CDU party, Merkel also said Europe was at a crossroads and reaffirmed her opposition to eurobonds as well as to taking on more debt as a response to the crippling eurozone crisis.“The
Tokyo overtakes Luanda as most expensive city

Jun 12, 2012

Tokyo advanced past the Angolan capital Luanda to become the world’s most expensive city for expatriates of 214 ranked by Mercer, while Moscow remains the most costly place to live in Europe. “Recent world events, including economic and political upheavals, have affected the rankings for many regions through currency fluctuations, inflation, and volatility in accommodation prices,” Mercer said Tuesday in its annual Worldwide Cost of Living Survey. The analysis uses New York as a base city and me
Air industry head asks EU to postpone carbon tax

Jun 12, 2012

BEIJING (AFP) -- The head of airline industry group IATA on Tuesday urged the European Union to postpone its controversial carbon tax scheme, amid warnings it could spark a trade war that would penalize Europe.The scheme -- under which airlines flying to, from or in the EU must pay a tax if they exceed their carbon allowance -- has caused a major outcry among carriers, which say they are already struggling due to global economic woes.Already, EU authorities have had to push back a deadline for a
‘Greeks must pay taxes’

Jun 12, 2012

WASHINGTON (AFP) ― IMF chief Christine Lagarde said Monday that there is room for easier fiscal policies in Europe’s strained economies, but she pressed home again that Greeks must pay their taxes to strengthen their economy.The International Monetary Fund managing director, who has repeatedly called tax evasion one of Greece’s biggest problems, raised the issue again in an interview with CNN television one week before the country holds national elections.“I think that tax compliance is a necess
Fitch says Europe debt crisis may pressure emerging Asia ratings

Jun 12, 2012

Europe’s sovereign debt crisis may pressure ratings of Asian countries such as Sri Lanka, India and Indonesia by disrupting global funding markets, according to Fitch Ratings.Sri Lanka is most at risk due to its high external-funding needs and weak balance sheet, said Andrew Colquhoun, head of Asia-Pacific sovereign ratings at Fitch. The same issues also make India and Indonesia vulnerable compared to similarly graded peers, he said.The European crisis is likely “the single biggest” external iss
Euro drops as Spain's bailout fuels debt-crisis spread concern

Jun 12, 2012

The euro fell against most of its major peers as Spain's bailout spurred concern that the sovereign-debt crisis is deepening as it spreads among indebted nations before Greek elections June 17.The 17-nation currency earlier rose, touching a two-week high, after Spain asked for as much as 100 billion euros ($126 billion) to save its banking system, making it the fourth member of the currency bloc t
Apple unveils thinner, more powerful MacBooks

Jun 12, 2012

The new Apple Inc. MacBook Pro laptop computerApple on Monday unveiled a new lineup of Macintosh laptops, including a revamped MacBook Air, the lightest of the computers, and a thinner, more powerful MacBook Pro.The move keeps Apple, which has been dominating the market for tablet computers like the iPad, in the game against a new line of slimmer laptops using Microsoft Windows or the Google Chr
Europe airline loss forecast doubled on crisis

Jun 11, 2012

IATA expects global industry profits of $3 billion in 2012 The International Air Transport Association almost doubled its 2012 loss forecast for European airlines and said the continent’s debt crisis could wipe out an expected global profit. Carriers in Europe may lose $1.1 billion this year, compared with a March forecast for a $600 million loss, the airline body said Monday at its annual meeting in Beijing. It reiterated a forecast for a $3 billion global profit. The worldwide estimate could b