The Korea Herald

U.S. economy set for Q4 growth pickup

Economy grew at modest 2 percent in third quarter, lower than estimatedThe economy in the U.S. expanded less than previously estimated in the third quarter, reflecting a drop in inventories that points to a pickup in growth as 2011 comes to a close. Gross domestic product climbed at a 2 percent annual rate from July through September, less than projected and down from a 2.5 percent prior estimate, revised Commerce Department figures showed Tuesday in Washington. The median forecast of 81 economi

Nov. 23, 2011

Spain borrowing costs soar

MADRID (AP) ― Spain’s borrowing costs rose above those of Greece and Portugal Tuesday in an auction of short-term debt, suggesting investors remain cautious about this country’s financial future despite a convincing electoral win this week by conservatives bent on deficit-cutting austerity.The treasury sold 2.98 billion euros ($4 billion) in 3- and 6-month bills, which was roughly the agency’s target. But the average interest rate on the 3-month bills jumped to 5.1 percent from 2.3 percent in th

Nov. 23, 2011

Germany’s Merkel rejects EU push for eurobonds

BERLIN (AP) ― German Chancellor Angela Merkel rejected a new push by the European Commission for bonds issued jointly by the 17 euro nations, saying Tuesday they wouldn’t resolve the debt crisis and now is the wrong time to discuss them.She appeared to be joined in her resistance to immediate talk of so-called “eurobonds” by eurozone chief Jean-Claude Juncker and Herman Van Rompuy, president of the European Council, which is made up of the 27 European Union heads of government.Van Rompuy’s comme

Nov. 23, 2011

Germany’s Merkel rejects EU push for eurobonds

IMF sets new lending tool

WASHINGTON (AFP) ― The International Monetary Fund on Tuesday announced a new lending facility aimed at helping “bystander” countries protect themselves from contagion during financial crises.The announcement of the facility, first proposed earlier this year, came as Italy and Spain fight to protect their finances while under severe pressure in bond markets already spooked by fiscal crises in Greece, Portugal and Ireland.The new tool will be used to aid countries with “relatively strong policies

Nov. 23, 2011

Hungary seeks IMF, EU financial aid

BUDAPEST (AP) ― The International Monetary Fund and the European Union said Monday they were considering a request from Hungary for “precautionary” financial support.With its credit rating just one step from junk status, Hungary announced last week it would seek a “safety net” ― but no new loans ― from international lenders to help support economic growth.IMF chief Christine Lagarde and the European Commission, the EU executive, both issued statements Monday saying that Hungarian authorities had

Nov. 22, 2011

S&P, Moody’s affirm U.S. ratings

Standard & Poor’s and Moody’s Investors Service said they won’t lower ratings on the U.S. after the congressional committee charged with finding $1.5 trillion of deficit cuts failed to reach an agreement. S&P, which stripped the U.S. of its top “AAA” grade on Aug. 5, said Monday that the supercommittee’s inability to reach agreement didn’t merit another downgrade because the inaction will trigger $1.2 trillion in automatic spending cuts. The deliberations were “not decisive,” Moody’s spokesman E

Nov. 22, 2011

World Bank warns of risks to East Asia growth

HONG KONG (AP) ― The World Bank held its East Asian growth forecast steady but warned of growing risks including Europe’s sovereign debt crisis and uncertainty about Thai manufacturing’s recovery from widespread flooding.In a half-yearly report on the outlook for the region, the bank on Tuesday forecast economic growth of 8.2 percent this year and 7.8 percent in 2012, practically unchanged from an earlier prediction in April.Growth in East Asia’s economic lynchpin, China, is expected to ease to

Nov. 22, 2011

UN: Concentrations of greenhouse gases hit record

GENEVA (AP) — The U.N. weather agency says concentrations of global warming gases are at record levels from emissions that exceed scientists' worst-case scenarios.The World Meteorological Organization says heat-trapping carbon dioxide concentrations in the air have reached 389 parts per millio

Nov. 21, 2011

EU study: Eurobonds best way out of crisis

BRUSSELS (AP) — The European Commission, the EU executive, believes that the joint issuing of eurobonds by the 17 euro nations would be the most effective way to tackle the financial crisis, according to a draft paper seen Monday.The study by the European Commission, the EU's executive branch,

Nov. 21, 2011

VW aims to make electric vehicles in China in 2013

Volkswagen AG, Europe’s largest automaker, aims to build electric vehicles in China from 2013 to cater to demand for models that are less polluting, the head of the company’s business in the country said.VW may build two electric models with venture partners in China, said Karl-Thomas Neumann, chief executive officer and president of the Wolfsburg, Germany-based automaker’s China unit. The models may have a range of 100 kilometers to 200 kilometers, he said.Governments in China and Europe are ge

Nov. 21, 2011

VW aims to make electric vehicles in China in 2013

China investors look to dragon baby boom

Boom is expected to increase sales of formula firms, diaper and toiletry makers for children.China’s emerging baby boom, driven by more-relaxed government policies and the year of the dragon, is fertile ground for both domestic and overseas companies. The world’s second-largest economy will experience a population boom from 2005 to 2020 and the country’s birth rate will reach its peak in 2016, the National Bureau of Statistics predicts. The Chinese population is expected to reach 1.388 billion b

Nov. 21, 2011

China investors look to dragon baby boom

BMW takes stake in carbon fiber firm SGL

Bayerische Motoren Werke AG secured a 15 percent stake in SGL Carbon SE, adding to a 29 percent holding controlled by BMW heiress Susanne Klatten, in a move that keeps rival Volkswagen AG at bay. BMW bought 5.2 percent of the shares directly and controls an additional 10 percent of SGL through financial derivatives, the Wiesbaden, Germany-based maker of carbon and graphite products said today. SGL, which will supply carbon fiber for BMW’s upcoming line of city cars, surged as much as 7.8 percent

Nov. 21, 2011

EU spells out future eurozone bond issue options

BRUSSELS (AFP) ― The EU will this week urge eurozone states caught in the debt crisis turmoil to club together to guarantee each other’s debts, vowing to police national budgets ruthlessly by way of a safeguard.The European Commission will on Wednesday publish legislative proposals to implement common eurozone bonds that could start with a club-within-a-club and only partial debt-pooling.That amounts to a direct challenge to the EU’s most powerful economy Germany to open the door to radical cros

Nov. 21, 2011

Brazil oil leak may total 2,600 barrels

RIO DE JANEIRO (AP) ―Nearly 110,000 gallons of oil may have spilled into the Atlantic Ocean because of a leak at an offshore Chevron drilling site, Brazil’s environmental protection agency said Friday.Officials think between 8,400 to 13,800 gallons of oil leaked each day from Nov. 8 through Tuesday, Ibama said in a statement on its website. Chevron had said that only 16,800 to 27,300 gallons in total leaked into the ocean.Officials are still investigating the cause of the leak, which has been al

Nov. 20, 2011

Apple faces $2.7b in lost sales in Motorola Mobility case

Apple Inc. said it may face as much as 2 billion euros ($2.7 billion) in lost sales if a German court rules in favor of Motorola Mobility Holdings Inc. in a patent-infringement case over mobile devices.Apple lawyers argued at a hearing in Mannheim that if Motorola Mobility won the case and received an order that forced Apple to halt sales of some products, Motorola Mobility should post the amount in a bond to cover any damages caused while the case is on appeal. Apple denies infringing the Motor

Nov. 20, 2011

Amazon sells tablet below cost

Research firm says Kindle Fire costs $201.70 to make; Amazon takes $2.70 lossNEW YORK (AFP) ― At $199, Amazon is selling the Kindle Fire slightly below the cost it takes to manufacture the tablet computer, according to market research firm IHS iSuppli. In a “teardown” estimate published Friday, IHS iSuppli said it costs $201.70 to manufacture the Kindle Fire, which Amazon began shipping to customers this week.“The Kindle Fire, at a retail price point of $199, is sold at a loss by Amazon, just a

Nov. 20, 2011

UBS shrinks investment bank, halves risky assets

GENEVA (AFP) ― Swiss banking giant UBS said Thursday it was to dramatically cut back its investment bank arm, reducing its risky assets by half or 145 billion Swiss francs ($158 billion).“We have chosen to substantially reduce the risk profile of the bank by exiting and downsizing businesses which are not value added (for) our client franchise or deliver unattractive risk-adjusted returns,” newly-appointed chief executive Sergio Ermotti said in a statement.The shake-up comes as the bank, Switzer

Nov. 18, 2011

UBS shrinks investment bank, halves risky assets

S&P upgrades Brazil credit rating one notch

SAO PAULO (AFP) ― Standard and Poor’s Corp. said Thursday it was upgrading its credit rating on emerging powerhouse Brazil by one notch to BBB.“We are raising our long-term foreign currency sovereign credit ratings on Brazil to ‘BBB’ from ‘BBB-’ and our long-term local currency ratings to ‘A-’ from ‘BBB+’,” the ratings agency said in a statement. “The outlook is stable.”It noted that the upgrade reflected Brazil’s increasing capacity to hold up against the overall deterioration in the global eco

Nov. 18, 2011

Hungary seeks talks to secure help from IMF

BUDAPEST (AFP) ― Hungary said Thursday it was seeking a new deal with the International Monetary Fund, in what would mark a U-turn from its earlier stance, but the financial institution denied talks were under way.Hungary got a 20 billion euro ($27 billion) bailout from the IMF and the EU in 2008 but, after some progress, it has come under increasing pressure to calm nervous investors and halt the depreciation of the forint.“Within the regular annual economic policy consultations with the IMF, w

Nov. 18, 2011

Hungary seeks talks to secure help from IMF

Ford hopes to keep Escape on top with redesign

DEARBORN, Michigan (AP) ― The Ford Escape is getting a long overdue makeover, ditching its boxy styling for a sleek look that Ford hopes will outshine competitors. It has reason to be confident: Ford Explorer SUV sales are at a four-year high thanks to a similar redesign last year. Ford will unveil the 2013 Escape at the Los Angeles Auto Show Wednesday. It goes on sale early next year. Pricing hasn’t been announced, but it will likely start around $25,000. The Escape’s boxy profile was looking s

Nov. 17, 2011

Ford hopes to keep Escape on top with redesign