The Korea Herald

Italy next? Concern in Rome after Spain rescue

Jun 11, 2012

ROME (AFP) ― Even as the global economic community hailed an agreement to rescue Spain’s stricken banks, there was concern in Rome on Sunday that investors could now begin treating Italy as the next weak link in the eurozone.Those fears have been fueled by a report from Moody’s ratings agency warning that Spain’s banking troubles could be “a major source of contagion” for Italy where lenders are also highly reliant on European Central Bank funding.“Italy is now the only country in difficulty tha
Spain relieved, angry over bank rescue

Jun 11, 2012

Economic misery will get worse despite bailout request: P.M.MADRID (AP) ― Spain’s grinding economic misery will get worse this year, despite the country’s request for a European financial lifeline of up to 100 billion euros ($125 billion) to save its banks, Prime Minister Mariano Rajoy said Sunday. A day after the country conceded it needed outside help following months of denying it would seek assistance, Rajoy said more Spaniards will lose their jobs in a country where one out of every four ar
China’s auto market revved up in May

Jun 10, 2012

BEIJING (AP) ― China’s auto market revved to life in May despite the weakening economy, with vehicle sales jumping nearly 16 percent from a year earlier to 1.61 million units, industry figures showed Saturday.Sales for May in the world’s largest market for new vehicles were sharply higher than earlier in the year. Total auto sales in the first five months of the year inched up 1.7 percent to 8.02 million units, the China Association of Automobile Manufacturers reported.Passenger car sales contin
Cost of lunch with Buffett: $3.5m

Jun 10, 2012

OMAHA (AP) ― The cost to dine with investor Warren Buffett has apparently spiked in value, with one deep-pocketed bidder forking over nearly $3.5 million during a charity auction. The annual auction for a private lunch with the Nebraska billionaire closed following a flurry of activity in the final hours Friday night. In the end, the highest bid was a record-breaking $3,456,789. The auction benefits the Glide Foundation, which helps the homeless in San Francisco. Buffett has raised more than $11
China’s slowing inflation adds stimulus pressure

Jun 10, 2012

May exports, imports growth tops estimates as U.S., EU reboundChina’s consumer prices rose the least in two years in May and industrial output and retail sales trailed estimates, adding pressure for more stimulus after the first interest-rate cut in three years. Inflation slowed to 3 percent from a year earlier, the National Bureau of Statistics said Saturday, compared with the 3.2 percent median forecast in a Bloomberg News survey. Production increased 9.6 percent, lower than a projected 9.8 pe
‘Greece must stick to promises to stay in euro’

Jun 10, 2012

BERLIN (AFP) ― Greece must stick to the austerity commitments it has made if it wants to remain part of the eurozone after elections on June 17, German Chancellor Angela Merkel said on Friday.Speaking after talks with New Zealand’s Prime Minister John Key, Merkel said: “What we have always said is that we want Greece to remain a member of the eurozone.”“The precondition for that to succeed is that the future Greek government sticks to the memorandum that was agreed with the International Monetar
Spain seeks EU’s fourth bailout with $125 billion request

Jun 10, 2012

Spain became the fourth and largest country to ask Europe to rescue its failing banks, a bailout of up to (euro) 100 billion ($125 billion) that leaders hoped would stabilize a financial crisis that threatens to break apart the 17-country eurozone.The rescue offer follows growing pressure from international investors and the Obama administration and comes a week before elections in Greece, whose v
Bernanke signals no imminent steps to aid economy

Jun 8, 2012

WASHINGTON (AP) ― Slumping job growth has alarmed some economists who fear the U.S. economy is in trouble.Ben Bernanke doesn’t appear to be one of them.The Federal Reserve chief sketched a hopeful outlook in testimony to a congressional panel Thursday and sent no signals that the Fed will take further steps soon to aid the economy.Bernanke acknowledged that Europe’s debt crisis poses risks to the U.S. financial markets. He also noted that U.S. unemployment remains high at 8.2 percent. And he sai
China reduces rates for first time since 2008

Jun 8, 2012

China cut borrowing costs for the first time since 2008 and loosened controls on banks’ lending and deposit rates, stepping up efforts to combat a deepening slowdown as Europe’s debt crisis threatens global growth. The one-year lending rate declines by a quarter percentage point to 6.31 percent, the People’s Bank of China said in a statement Thursday. The one-year deposit rate drops the same amount, to 3.25 percent. The extra leeway banks will get to determine rates at variance from the officia
Japan revises upward Jan-March growth data

Jun 8, 2012

Japan on Friday said its economy grew by 1.2 percent in the January to March quarter from the previous three months, revising upward a preliminary figure of 1.0% growth.The latest data underscore a recovery driven largely by government spending and recovering domestic demand after Japan was battered by last year's quake-tsunami disaster.On an annualized basis, the economy grew a revised 4.7 percen
Spain's hurting banks at heart of eurozone chaos

Jun 8, 2012

Spain is under rising pressure to find a lifeline for its deeply troubled banks.Politicians in Europe and investors around the world are worried that the recession-hit country can't come up with the money needed to save its banks without bankrupting the government. Expectations are rising that Spain's leaders will have to seek an international bailout for banks crumbling under the weight of bad re
China rate cut, Fed stimulus hopes boost markets

Jun 8, 2012

Global markets rose on Thursday, boosted by China's decision to cut interest rates, hopes that the Federal Reserve will consider new support for the U.S. economy and speculation Europe is preparing to give Spain financial aid.China cut its benchmark lending rate by a quarter percentage point to 6.31 percent for the first time since 2008 to support growth in its cooling economy, the world's second-
Fitch slashes Spain credit rating by three notches

Jun 8, 2012

Fitch Ratings slashed Spain's sovereign credit rating by three notches Thursday, citing ballooning estimates of the cost of a banking crisis, mushrooming debt and a deepening recession.The long-term rating was chopped to BBB from A and left with a negative outlook, said Fitch, swooping as expectations mounted that the Europe Union would have to throw a lifeline to Spanish banks."The likely cost of
France to lower retirement age

Jun 7, 2012

PARIS (AP) ― France’s new Socialist government moved Wednesday to lower the retirement age from 62 to 60 years old for certain workers, bucking the trend in developed countries in a gesture to unions that critics say is a costly mistake.Governments from North America to Europe have been pushing retirement ages higher and higher in recent decades, as people are living longer and spending more years on state-sponsored pension checks.Raising France’s general retirement age from 60 to 62 years old w
China investment in Europe triples

Jun 7, 2012

BEIJING (AP) ― China’s annual corporate investment in Europe tripled last year to $10 billion and appears to be driven mostly by commercial motives, not government directives, a study released Thursday said.Chinese companies are beginning a surge in outbound global investment that could total $2 trillion by 2020, said the report by Rhodium Group, a New York City-based research firm.The report comes as the United States and other governments maneuver to attract investment from China but also face