The Korea Herald

Fed expected to maintain pace of economic stimulus

WASHINGTON (AP) ― Renewed questions about the economy’s health and uncertainty surrounding the government’s budget fight will likely lead the Federal Reserve on Wednesday to maintain the pace of the stimulus it’s supplying to the economy. That expectation marks a reversal from just six weeks ago, when almost everyone expected the Fed to start trimming its $85 billion in monthly bond purchases. The bond buying is intended to keep long-term interest rates low to help the economy rebound from the G

Oct. 30, 2013

Fed expected to maintain pace of economic stimulus

Japan factory output up, as recovery takes hold

TOKYO (AP) ― Japan’s industrial output rose 1.5 percent in September from the previous month, as stronger production of vehicles and electronic components added to signs the recovery in the world’s third-largest economy is gaining.The Ministry of Economy, Trade and Industry said Wednesday a survey found manufacturers expect output to rise 4.7 percent in October but to decline in November. The increase in September compares with a 0.9 percent decline in output in August. Increased shipments by re

Oct. 30, 2013

Steve Jobs’ boyhood home gets ‘historic’ designation

SAN FRANCISCO (AFP) ― A Silicon Valley city has designated the boyhood home of Steve Jobs an “historic resource” due to the way the legendary Apple co-founder went on to change the world.Members of the historic commission in Los Altos voted unanimously late Monday to give the single-story, ranch-style home the special status.“This is a childhood home of Apple Computer Company founder Steve Jobs,” the commission noted in a report backing the decision.“The site is also where the Apple Computer Com

Oct. 30, 2013

Smartwatches abound. but who really wants one?

If consumer electronics companies are to be believed, someone on your holiday shopping list is just dying for a wristwatch that displays message alerts and weather updates.Samsung and Sony have devices out for the holidays. Qualcomm has one coming. Apple is believed to be making one, and a new report says Google is developing one, too.Why the big push for computerized watches? It‘s not coming from consumers, says Jonathan Gaw, a research manager at IDC. Rather, it’s a product in search of a mark

Oct. 30, 2013

Dow closes at a record high as Fed meeting begins

Investors drove the Dow Jones industrial average to an all-time high Tuesday on expectations that the Federal Reserve will keep its economic stimulus program in place.The Dow rose 111.42 points, or 0.7 percent, to 15,680.35. The Dow also got a big boost from IBM, which announced that it would buy $15 billion more of its own stock.The Fed is in the middle of a two-day policy meeting at which it's expected to maintain its $85 billion worth of bond purchases every month. That program is aimed at st

Oct. 30, 2013

Indian central bank hikes rate to fight inflation

India's central bank raised its key interest rate for the second time in two months Tuesday, underlining the determination of its new chief to control inflation despite concerns economic growth could slow further.Reserve Bank of India Gov. Raghuram Rajan said the benchmark interest rate was raised by a quarter percentage point to 7.75 percent. His hard line against inflation increases pressure on the government to revive growth through reforms to make the economy more efficient, instead of relyi

Oct. 29, 2013

Japanese reputation for quality hit with Camry

Consumer Reports pulled its recommendation for Toyota Motor Corp.’s Camry sedan and said post-bankruptcy General Motors Co. is among the automakers cracking Japanese brands’ dominance in fielding reliable cars. Consumer Reports isn’t recommending any version of the Camry, the top-selling U.S. car the past 11 years, for the first time since the automaker’s 2010 sudden-acceleration crisis, said Jake Fisher, the magazine’s director of automotive testing. While Toyota and Honda Motor Co. held the to

Oct. 29, 2013

Japanese reputation for quality hit with Camry

Apple's earnings fall despite rising iPhone sales

Apple's quarterly earnings are still sagging even as sales of its iPhones are rising, a vexing phenomenon feeding investor worries about whether stiffer competition in the mobile device market will continue to undercut the company's prosperity.The fiscal fourth-quarter results announced Monday closed the books on a sobering year that saw Apple's market value plunge by about 25 percent, or about $160 billion. Apple Inc. remains the world's most valuable company, despite the downturn.The company's

Oct. 29, 2013

Dubai opens mammoth second international airport

DUBAI (AFP) ― The Gulf emirate of Dubai opened on Sunday passenger operations at its second airport, Al-Maktoum International, touted to be the world’s largest once it is completed.A Wizz Air plane from Budapest was the first passenger aircraft to land at the sprawling new facility, and it was welcomed on the tarmac with a water cannon salute.Jazeera Airways, another low-cost carrier, will follow suit on Thursday with daily flights to and from Kuwait, while Bahrain’s national carrier, Gulf Air,

Oct. 28, 2013

Dubai opens mammoth second international airport

France’s Socialists under fire over tax hikes

PARIS (AFP) ― The French government was under fire Sunday over its attempts to hike taxes, with the ruling Socialists forced to back down on one tax plan and facing violent protests over another.Under pressure from the European Union to rein in the state deficit, President Francois Hollande’s government has announced about 3 billion euros ($4.1 billion) in tax increases for next year.The hikes, along with major spending cuts, are provoking widespread discontent and damaging Hollande’s deeply unp

Oct. 28, 2013

France’s Socialists under fire over tax hikes

Survey points to pick-up in global M&As

LONDON (AP) ― Growing optimism over the global economy is likely to lead to a marked pick-up in the number of mergers and acquisitions over the coming months, a survey of executives found Monday.In its half-yearly report into the M&A sector, consulting firm Ernst & Young said it expects both the volume and size of deals to improve over the coming year, with 35 percent of companies surveyed likely to pursue acquisitions compared with just 25 percent a year ago. The more favorable backdrop is attr

Oct. 28, 2013

U.S. tax probe leaves Swiss bankers afraid to travel: report

GENEVA (AFP) ― As a United States hunt for tax evaders and their accomplices gains momentum, many Swiss bankers are afraid to go abroad for fear of arrest, one business leader said in an interview published Sunday.“In my opinion, some 1,000 Swiss bankers no longer dare to go to the United States, or even travel abroad,” Martin Naville, the head of the Swiss-American Chamber of Commerce, was quoted as saying by Le Matin Dimanche weekly.Swiss banks and industry representatives are increasingly cau

Oct. 28, 2013

U.S. shutdown hits consumer confidence

Consumer confidence in the U.S. dropped in October to a 10-month low, showing the reopening of the federal government failed to reassure households. The Thomson Reuters/University of Michigan final consumer sentiment index decreased to 73.2, the weakest this year, from 77.5 in September. The median estimate in a Bloomberg survey called for a decline to 75 compared with a preliminary reading of 75.2. The government’s partial closing prompted Americans to turn more pessimistic about the economy, w

Oct. 27, 2013

McDonald’s ends 40-year relationship with Heinz

McDonald’s has lost its taste for Heinz ketchup. The fast-food giant said in a statement Friday that it is cutting ties with the condiment company after 40 years due to management changes there. A former Burger King CEO became head of Heinz in June after the company was bought by Warren Buffett’s Berkshire Hathaway and 3G Capital. 3G, a Brazilian investment firm, also controls Burger King. The impact of the change may be tasted more overseas. In the U.S., McDonald’s uses Heinz products only in P

Oct. 27, 2013

McDonald’s ends 40-year relationship with Heinz

Google presumed builder of floating data center

SAN FRANCISCO (AFP) ― An enormous floating barge has emerged in the San Francisco Bay, which tech-savvy sleuths suspect is a massive data center being constructed by Google, the CNET blog reported.The huge floating structure “stands about four stories high and was made with a series of modern cargo containers. ... Locals refer to it as the secret project,” CNET wrote, adding that Google did not respond to requests for comment.“It’s all but certain that Google is the entity that is building the m

Oct. 27, 2013

China starts prime loan rate as new benchmark in market push

China started publishing a new lending rate based on quotes from banks and signaled it may eventually replace the current benchmark set by the People’s Bank of China, deepening a shift to market-based interest rates. China’s interbank funding center, under the PBOC, will calculate a weighted average “loan prime rate” each day from costs charged to the best clients by nine major lenders including Industrial & Commercial Bank of China Ltd., the Beijing-based central bank said in a statement Friday

Oct. 27, 2013

China starts prime loan rate as new benchmark in market push

JPMorgan to pay $5 billion settlement

WASHINGTON (AP) ― The $5.1 billion that JPMorgan Chase has agreed to pay hardly ends its legal troubles over mortgage securities it sold. It’s merely a down payment. JPMorgan still faces heavy financial burdens. The bank has set aside $23 billion to cover legal costs ― and it may need it all. In a statement Friday night, JPMorgan called its latest settlement an “important step” toward resolving allegations over mortgage-backed securities it sold. The $5.1 billion would resolve federal claims th

Oct. 27, 2013

World currency turbulence hits earnings

PARIS (AFP) ― Emerging markets have helped rake in a corporate earnings bonanza in recent years, but a sudden plunge in their currencies in mid-2013 due to an expected cut in U.S. stimulus has sorely hit sales and profit.Quarterly results at companies from Coca-Cola to IBM, Unilever to Casino and luxury group LVMH show that currency volatility has hit the bottom line.“The ‘emerging risk’ is a source of concern in the first release of third quarter results,” economists at broker Aurel BGC said.Th

Oct. 27, 2013

Fed expected to hold tight on stimulus after shutdown

WASHINGTON (AFP) -- Skewed data and the economic setback of the partial government shutdown face Federal Reserve policymakers as they review their economic stimulus program on Tuesday and Wednesday.The broad consensus is that, in their first meeting with Janet Yellen as the official heir-apparent to chairman Ben Bernanke, the Federal Open Market Committee will opt again to wait for more evidence of economic strength.That will prolong the guessing game of when the "taper" of QE3, the Fed's $85 bi

Oct. 26, 2013

Twitter pitch to IPO investors hinges on growth potential

Twitter Inc. will make the case to potential investors in its initial public offering that it needs to keep spending to grow, and profit will come once it can reap the benefits of those investments. “The magnitude of our investments has limited our margins,” Chief Financial Officer Mike Gupta said in a video posted today to accompany the investor road show, which begins next week and will take Gupta and Chief Executive Officer Dick Costolo from their San Francisco home to cities including New Yo

Oct. 26, 2013