The Korea Herald

German central bank chief ‘skeptical’ of stimulus move

Jan 25, 2015

BERLIN (AFP) ― The head of Germany’s central bank on Saturday voiced his “skepticism” about the ECB’s decision to launch a trillion-euro bond-buying program in a bid to ward off deflation and boost the eurozone economy.“I regard this decision with skepticism,” the Bundesbank President Jens Weidmann told the German daily Bild.Weidmann is a member of the the European Central Bank’s council of governors that approved of the stimulus plan known as quantitative easing but he did not agree with the de
Oil market upheaval looms over Saudi succession

Jan 23, 2015

RIYADH (AFP) -- King Abdullah's death could not have come at a worse time for Saudi Arabia's vital oil sector as the absolute monarchy seeks to reassert its leadership in a fast-changing industry.After an exceptional decade that saw it build up production capacity and huge financial reserves, Saudi Arabia is facing a major challenge from new market players -- in particular North American shale oil producers.The Gulf powerhouse now finds itself locked in a battle for market share against unconve
ECB rings in new year with QE fireworks

Jan 23, 2015

The European Central Bank began 2015 with a bang Thursday, launching a massive trillion-euro bond purchase programme to ward off deflation and end stagnation in the eurozone economy.After holding interest rates at their all-time low once again at its first policy meeting of the year, the bank said it would buy 60 billion euros ($69 billion) in private and public sector bonds per month.Bank chief Mario Draghi explained that the aim was to stimulate the economy enough to drive eurozone inflation,
Reforms 'essential' after ECB stimulus: IMF's Lagarde

Jan 23, 2015

International Monetary Fund chief Christine Lagarde on Thursday hailed the European Central Bank's decision to launch a massive stimulus program, but urged eurozone authorities to undertake needed economic reforms."The planned expansion of the ECB's balance sheet will help lower borrowing cost across the euro area, raise inflation expectations and reduce the risk of a protracted period of low inflation," the IMF managing director said in a statement."These measures will also strongly increase th
eBay to cut thousands of jobs

Jan 22, 2015

The Ebay logo and website in Tiskilwa, Illinois. (Bloomberg)NEW YORK (AFP) ― Online retail giant eBay will slash 2,400 jobs ― seven percent of its workforce ― in the current quarter as it restructures and prepares to spin off its PayPal finance unit, it said Wednesday.California-based eBay unveiled the move as it announced its profit in the fourth quarter rose to $936 million on $4.9 billion in revenue. The job cuts will be across eBay’s three divisions: Marketplaces, Enterprise and PayPal.The r
Obama launches Democrats’ middle class push in 2016

Jan 22, 2015

WASHINGTON (AFP) ― The economic successes U.S. President Barack Obama touted in his speech to Congress Tuesday were not just taunts to Republicans; he was helping Democrats build an early strategy for keeping the White House in 2016.With the clock winding down on his two-term presidency, Obama proclaimed America’s economy to be back on steady footing after years of post-recession malaise, and he unveiled a plan to help the middle class that he clearly hopes will carry on into another Democratic
Chinese premier says economy not headed for ‘hard landing’

Jan 22, 2015

DAVOS (AFP) ― China’s Premier Li Keqiang sought Wednesday to allay fears over the Asian giant’s growth outlook, telling business and government elites gathered in Davos that the economy is not heading for a sharp slowdown.A day after China posted the weakest growth in almost a quarter of a decade, Li vowed to push on with structural reforms which he said would deliver “quality growth” rather than just a high top-line figure.“What I want to emphasize is that regional or systemic financial crises
World’s poor headed for better lives in 2030: Gates

Jan 22, 2015

NEW YORK (AFP) ― The lives of the poor will improve faster in the next 15 years than at any time in history, billionaire philanthropist Bill Gates and his wife Melinda say.In their annual letter released Thursday, the couple laid out their upbeat vision for a technology-driven wave of change that will lift hundreds of millions out of poverty by 2030.The major breakthroughs will be most noticeable in health, but also in agriculture, digital banking and online education, where the Gates Foundation
Why cheaper fuel won’t mean lower airfares anytime soon

Jan 21, 2015

Lower fuel will help airlines pad profits; passengers unlikely to share through lower fares
IBM Q4 revenue continues to sag

Jan 21, 2015

ARMONK, New York (AP) ― IBM’s fourth-quarter net income dropped 11 percent as revenue in most categories continued to decline, and its outlook for the year disappointed investors.Shares fell 2 percent in aftermarket trading.The technology and consulting company has struggled with declining revenue over the last three years, as business customers have moved away from buying big mainframe computers and traditional software that’s installed on their own systems. Revenue fell 12 percent in the lates
Google, Fidelity invest in SpaceX

Jan 21, 2015

HAWTHORNE, California (AP) ― SpaceX has raised $1 billion from Google and Fidelity in a deal that values the spaceship manufacturer at about $10 billion.The infusion announced Tuesday will give Google Inc. and Fidelity Investments a nearly 10 percent stake in SpaceX, a Hawthorne, California, company that employs more than 3,000 people.Although privately held SpaceX didn’t reveal any concrete plans, the money could help founder Elon Musk realize his hopes to fly people to Mars within the next 12
Oil plunge forces Baker Hughes to cut 7,000 workers

Jan 21, 2015

NEW YORK (AFP) ― Oilfield services company Baker Hughes said Tuesday it would cut 7,000 jobs in the coming months in response to a sharp downturn in exploration activities following the oil price crash.One of the three top oilfield services firms, Baker Hughes said the cuts, amounting to about 11 percent of its worldwide staff, would come mostly in the first quarter of this year.The move will cost the company upfront about $160 million-$185 million in severance charges, but aims to cut costs ove
BOJ cuts inflation outlook, maintains record stimulus

Jan 21, 2015

Bank of Japan Gov. Haruhiko Kuroda. (Bloomberg)Japan’s central bank cut its inflation forecast and kept its unprecedented monetary easing unchanged as tumbling oil prices handicap efforts to reflate the world’s third-biggest economy. The Bank of Japan will increase the monetary base at an annual pace of 80 trillion yen ($674 billion), it said in a statement in Tokyo Wednesday, as forecast by all 33 economists surveyed by Bloomberg News. The BOJ lowered its inflation projection to 1 percent for t
Swiss franc ‘nuclear explosion’ spreading

Jan 21, 2015

Credit Suisse Group AG and Saxo Bank A/S joined an increasing number of European financial companies warning that the Swiss central bank’s surprise decision to abolish its currency ceiling may dent earnings. Credit Suisse, Switzerland’s second-biggest bank, indicated Monday that currency swings may hurt profit. Denmark’s Saxo Bank said some clients might not be able to settle unsecured amounts, which might cause undisclosed losses. The full force of the decision won’t be known for months and is
CEOs: U.S. more attractive to investors than China

Jan 21, 2015

DAVOS, Switzerland (AP) ― Amid growing concerns over the global economy, the United States has overtaken China as the No. 1 investment destination among chief executives around the world, a survey found Tuesday.That’s the first time the U.S. has topped the list since accounting and consulting firm PricewaterhouseCoopers, or PwC, first started asking the question five years ago. Global investors appear encouraged by the U.S. economy’s vital signs at a time when China’s growth is slowing and execu