News

  • Dubai says expo would give €28bn boost

    Dubai is bidding to host the World Expo 2020, which is expected to attract 25m visitors, and says it would create 277,000 jobs - Feb 28, 04:24pm

  • Equity bulls back in charge

    Nikkei surges after yen dips, while traders express optimism on the US economy and central bank largesse - Feb 28, 04:00pm

  • India taps ‘super-rich’ in budget

    Finance minister says growth needs to be revived closer to the 8% achieved before global economic crisis, but offers only piecemeal measures to do so - Feb 28, 12:16pm

  • Taiwan’s hunger for renminbi grows

    Strong uptake in retail savings accounts and offshore renminbi bonds as Taiwan becomes the second major market to clear the Chinese currency - Feb 28, 11:52am

  • Seoul searches for path to welfare state

    South Korea’s new government wants to increase social spending, but the lack of detail on how to fund it leaves many Koreans sceptical - Feb 28, 11:23am

  • Bangladesh sentences Islamist leader to death

    Delwar Hossain Sayedee was found guilty of crimes committed during the 1971 independence war, the third senior Jamaat member convicted by tribunal - Feb 28, 10:29am

  • China eases path for short sellers

    Beijing creates platform to enable brokerages to borrow stock from institutional investors in a further effort to deepen equity market participation - Feb 28, 10:14am

  • Bulgaria to hold early elections

    President Rosen Plevneliev aims to avoid a political crisis after prime minister resigned last week following protests against high electricity prices - Feb 28, 09:55am

  • Argentine bond litigation sparks default fears

    The appeals court is expected to issue its final ruling within weeks on the case involving the binding of third parties not to help the government avoid paying holdout creditors. - Feb 28, 12:28am

  • Mobile groups look to emerging markets

    Bharti Airtel chief eyes Asia and Africa as developing markets become a theme at Mobile World Congress - Feb 27, 11:36pm

  • Stocks advance after Bernanke balm

    Equities advance after Federal Reserve chairman affirms commitment to monetary stimulus, but jitters remain over political gridlock in Italy - Feb 27, 10:57pm

  • China should abandon North Korea

    The best way of giving up on Pyongyang is to take the initiative to facilitate North Korea’s unification with South Korea, says Deng Yuwen - Feb 27, 07:25pm

  • Iran agrees to follow-up nuclear talks

    Iran’s willingness to hold further meetings will be seen as positive but many remain wary given such pledges made in past have been later frustrated - Feb 27, 05:30pm

  • Pemex chief hails Mexico as ‘new Mideast’

    Shale gas production has cut energy costs in the US, setting the stage for a manufacturing resurgence. Emilio Lozoya believes the same is possible in Mexico - Feb 27, 02:42pm

  • India calls end to economic downturn

    On the eve of a crucial budget, the Indian government predicts that the economy will expand but warned that it is in ‘a difficult situation’ - Feb 27, 01:56pm

  • Mongolia suspends key Oyu Tolgoi licences

    Move against Entrée Gold could put more pressure on its shareholder Rio Tinto, which is in dispute with the government over costs, revenues and taxes - Feb 27, 11:53am

  • AB InBev warns on US and Brazil beer sales

    Belgian brewer expects ‘year of challenge and uncertainty’ as it says it could be hit by slower business activity in its key markets - Feb 27, 11:16am

  • AIA beats forecasts with 89% profit jump

    The Hong Kong-listed insurer reports full-year net profit of $3bn and says that the value of new business rose 27% to a record $1.2bn - Feb 27, 07:23am

  • Mexico arrests powerful teachers’ union boss

    Arrest comes a day after President Enrique Peña Nieto signs into law the most sweeping education sector reform in more than half a century - Feb 27, 04:54am

  • Gap widens in China’s property market

    Smaller cities are falling behind booming metropolises in prices and in the amount of development being undertaken, Simon Rabinovitch says - Feb 26, 10:24pm

  • China to tighten shadow banking rules

    Credit flows system beyond traditional bank loans in China has increased fourfold in size since 2008, to about 40% of gross domestic product - Feb 26, 07:30pm

  • Sanctions offer in Iran nuclear talks

    World powers offer to ease measures on gold trade if Tehran scales back activities that may lead to production of atomic bomb - Feb 26, 04:57pm

  • UK accused of cover-up on Litvinenko

    Government is accused of covering up evidence in inquest of former KGB agent Alexander Litvinenko, in an attempt to strengthen trade ties with Russia - Feb 26, 04:28pm

  • Manila tells sultan to end Sabah stand-off

    Philippine president says Sultan of Sulu must end the armed occupation of a fishing village in neighbouring Malaysia or face prosecution - Feb 26, 12:54pm

  • Singapore prices biggest IPO in two years

    Mapletree has priced its greater China real estate investment trust IPO at the top end of its range, marking the biggest new listing in Singapore for more than two years - Feb 26, 11:11am

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Slovenia’s political crisis has moved into a new phase after parliament ousted the centre-right government of prime minister Janez Janša and gave Alenka Bratusek (right), acting leader of the centre-left Positive Slovenia party, two weeks to win parliamentary approval for a new cabinet.

While the move creates an opportunity for Brastuek to forge the political stability Slovenia needs to tackle its mounting economic difficulties, there’s no guarantee of success. As Citigroup said in a note, “the key game-changer for the current political stalemate will be the formation of a new government.” Continue reading »

Hungary’s next central bank governor is expected to be named on Friday and György Matolcsy, finance minister, is the most hotly-tipped candidate. So Matolcsy’s weekly newspaper column on economics, society and culture attracted more than the usual amount of interest on Thursday when he used it to accuse foreign businesses and banks of orchestrating attacks on Hungary and to assert that a planned loan agreement with the IMF and EU would have destabilised the government and led Hungary into default. Continue reading »

By Saurabh Mukherjea of Ambit Group

When Manmohan Singh launched India’s economic reform programme as finance minister back in 1991, the country had a broken economic model, less than $1bn in foreign exchange reserves, a devalued currency, and a dire need for an IMF bailout.

Now Singh is prime minister and a lot else has changed, not least the economic model. But, as Thursday’s budget showed, the old resistance to structural reform is still very much alive. Continue reading »

This might have been a triumphant year for Croatia. Less than a decade and half after its war of independence, the country will join the EU in July, symbolically returning to the mainstream European fold after decades of authoritarianism and conflict.

But 2013 could well be yet another year in recession for the troubled Croatian economy. A flash estimate published on Thursday suggested that GDP had shrunk 2.0 per cent in the full year 2012 – and prompting forecasts of a grim 2013. Continue reading »

The plan is, in theory, to move from a 10-10-10 economy to a 5-5-5 one.

Not too long ago, Turkish officials were alarmed at an economy growing sometimes by an annual 10 per cent or more, with inflation to match and with a current account deficit at 10 per cent of Gross Domestic Product. It all looked unsustainable. Hence the push to bring inflation under control and limit the current account deficit, whilst maintaining reasonable GDP growth. Hence rough goal of 5 per cent growth, 5 per cent inflation and a 5 per cent current account deficit. Continue reading »

When news broke over the weekend that Indonesia’s president was proposing to move Agus Martowardojo, the highly regarded finance minister, to the less influential role of central bank governor, most political observers in Jakarta sensed dark forces at play.

Since replacing ousted fellow reformist Sri Mulyani Indrawati in 2010, Martowardojo had clashed on a number of occasions with vested interests in the political and business elite who were unhappy about his desire to keep a tight grip on the national purse-strings. Continue reading »

Shares in Strides Arcolab dropped 6.9 per cent on Thursday to Rs917.25, after the Bangalore-based pharmaceuticals company confirmed it is selling off its injectables unit at a lower-than-expected price.

There have been several rumoured buyers for the subsidiary, Agila Specialities, but it was announced on Wednesday that Mylan, the US generic drug producer, is to pay $1.6bn in cash for the business. Continue reading »

The South African rand plunged by as much as 2 per cent against the dollar on Thursday after the country posted a record trade deficit last month of R24.5bn ($2.8bn) – compared to R2.7bn in December and forecasts of around R10bn. Continue reading »

Yangon Economy Expands As Reforms Allow Business GrowthYou know that a country’s tourism industry is really taking off when a Hilton hotel moves in – particularly when that country has faced years of US sanctions. The buzz on the sidelines of Myanmar’s first tourism industry conference this week in Yangon was about Hilton Worldwide’s landmark deal to manage a 300-room hotel in the tallest building in central Yangon: Centrepoint Towers. Continue reading »

China’s new leadership has been making a lot of noise about cracking down on corruption. Now it seems that the military, where things are particularly bad, will start feeling the heat too. From May 1, all military vehicles will get new license plates, Colonel Geng Yansheng, defence ministry spokesman, said Thursday.

New plates would allow the authorities to crack down on the private use of military cars, the misuse of military plates and the abuse of privileges enjoyed by military officers in general. If it works, the move would certainly be popular among long-suffering civilians. Continue reading »

* China eases path for short sellers

* India taps ‘super rich’ in budget

* Bulgaria to hold early elections Continue reading »

After a string of cautious statements on China from US companies ranging from Caterpillar to Yum!Foods, the American Chamber of Commerce in Shanghai has declared that the days of relentless sales and rising profits are over.

The “new normal” is one of slower economic growth, rising costs, skilled labour shortages and an increasingly competitive business environment. Tougher times “will be the rule rather than the exception in the years ahead,” AmCham says in a report. Continue reading »

Investors have a liking for Palaniappan Chidambaram, India’s finance minister, and his pro-investment reforms that have pulled India’s stockmarkets higher. But they didn’t much like the disappointing federal budget he laid out on Thursday for the year beginning in April.

The benchmark S&P Nifty Index closed down 1.8 per cent after his speech, while the Sensex was down 1.5 per cent. Continue reading »

On the face of it, sovereign credit ratings and foreign direct investment might not appear to be that dependent on each other. When you’re setting up shop overseas, does it really matter if a country is rated or not?

For sub-Saharan Africa, apparently, it does – and rating agency Fitch has done the homework to prove it. Continue reading »

Photo: Bloomberg

Such is the reliance of Thailand on gas from Myanmar that scheduled maintenance at a plant in April may cause Thailand’s cities go dark at the hottest time of year, when power consumption is highest. If the country’s energy plans are anything to go by, the dependence will only get greater. Continue reading »

Global equities macromap

Number of the day

4.8% India's projected fiscal deficit for 2013/14, as laid out in finance minister Palaniappan Chidambaram's new budget.

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