The Korea Herald

Krugman says Fed rate unlikely to rise in 2015

Paul Krugman, challenging the consensus of economists and the Federal Reserve’s forecasts, said policy makers are unlikely to raise interest rates in 2015 as they struggle to spur inflation amid sluggish global economic growth. “When push comes to shove they’re going to look and say: ‘It’s a pretty weak world economy out there, we don’t see any inflation, and the risk if we raise rates and it turns out we were mistaken is just so huge’,” the 2008 Nobel laureate said in Dubai. “It’s certainly a r

Dec. 15, 2014

Krugman says Fed rate unlikely to rise in 2015

Sony asks media groups to destroy ‘stolen’ data

WASHINGTON (AFP) ― Sony Pictures Entertainment pressed media outlets Sunday against using data hackers may have leaked about the studio.In the letter sent to groups including The New York Times and The Hollywood Reporter, lawyer David Boies said the “stolen information” must be destroyed and should not make it to publication.The studio “does not consent to your possession, review, copying, dissemination, publication, uploading, downloading or making any use of the stolen information, and to requ

Dec. 15, 2014

Germans cling to shop-free Sunday

In Germany, where hard work is prized, one day of the week remains sacred for rest. While neighbor France last week announced plans to loosen restrictions on Sunday work, Germany is tightening regulations on the few businesses that had been allowed to open. Setting aside the day for coffee and cake with family and friends has been ingrained in German society for a century. The country’s ban on stores being open, which stretches back to 1919 during the Weimar Republic, was enshrined in the West G

Dec. 14, 2014

IMF deputy ‘impressed’ by Ukraine’s move toward reform

WASHINGTON (AFP) ― The International Monetary Fund’s No. 2 said Saturday he was “impressed” by Kiev’s plans for economic reform, following a visit to the country.The IMF, which this year granted Kiev $17 billion in financial aid over two years, as part of a $27 billion global rescue package set up by Western countries, warned last month that Ukraine would need as much as an extra $19 billion by the end of next year.IMF First Deputy Managing Director David Lipton traveled to Kiev on Friday to mee

Dec. 14, 2014

IMF deputy ‘impressed’ by Ukraine’s move toward reform

Little inflation pressure on Fed to speed up rate hike

WASHINGTON (AFP) ― The U.S. Federal Reserve holds its final policy meeting this week facing a conundrum most countries would love to have: Slowly accelerating economic growth with no sign of inflation.The good signs in the U.S. economy ironically make it harder for the Fed to move closer to what it knows it must do sooner rather than later: begin lifting the benchmark federal funds interest rate from the zero level, where it has been for six years now.Anticipation of the move has riveted markets

Dec. 14, 2014

Congress passes spending bill after bruising fight

WASHINGTON (AFP) ― The U.S. Congress passed a $1.1 trillion spending bill for fiscal year 2015 Saturday amid intense partisan wrangling, sending the measure to President Barack Obama and averting a government shutdown.The bill, which narrowly cleared the House of Representatives on Thursday and survived a series of procedural hurdles to pass the Senate 56 votes to 40 on Saturday, funds nearly all federal government agencies through next September.But by funding the Department of Homeland Securit

Dec. 14, 2014

Congress passes spending bill after bruising fight

Air fares dipping thanks to oil slump

GENEVA (AP) ― Flying could get cheaper next year as airlines say they will finally start passing on some of the savings made on plummeting oil prices.Carriers are forecasting record profits for 2015 thanks to cheaper fuel and rising demand. As a result, they expect to cut the average ticket price by 5 percent in 2015, excluding surcharges and taxes.That may not be a big decrease considering that the price of crude oil has fallen 40 percent since June, but is the most carriers can do for now, the

Dec. 11, 2014

U.S. issues commercial drone permits to 4 firms

WASHINGTON (AP) ― Under pressure from Congress to speed access to U.S. skies for commercial drones, the government granted four companies permission Wednesday to use drones for aerial surveillance, construction site monitoring and oil rig flare stack inspections.The new permits bring the total number of companies granted permits for commercial operations to 13. They were announced by the Federal Aviation Administration an hour before a House hearing at which lawmakers warned that if the agency d

Dec. 11, 2014

Fed targets JPMorgan as it favors traditional banks

NEW YORK (AFP) ― In publicly declaring that JPMorgan Chase should raise $22 billion, the Federal Reserve has delivered a hard blow to the largest U.S. bank and shown its preference for traditional banks. The central bank unveiled a new, tougher capital rule for eight big U.S. banks considered systemically important, including JPMorgan, Goldman Sachs, Morgan Stanley, Bank of America, Citigroup and Wells Fargo.Those financial institutions, which have raised billions of dollars since the 2008 finan

Dec. 11, 2014

Fed targets JPMorgan as it favors traditional banks

Putin in India to boost trade

NEW DELHI (AP) ― Russian President Vladimir Putin was holding talks with Indian leaders Thursday to strengthen trade and energy cooperation with Asia’s third-largest economy as Western sanctions threaten to push his country’s economy to the brink of a recession. Putin’s discussions with India’s Prime Minister Narendra Modi are expected to focus us on deepening ties at a time when New Delhi is perceived to be drawing closer to the United States, especially in areas such as defense and investment.

Dec. 11, 2014

U.N. predicts increased global growth

UNITED NATIONS (AP) ― The global economy will grow by more than 3 percent in 2015 and 2016, the United Nations predicted Wednesday, but that growth will be uneven in some regions.The U.N.’s annual economic report says growth edged up in 2014 at an estimated 2.6 percent.The U.N. is forecasting 3.1 percent economic growth in 2015 and 3.3 percent growth in 2016.The World Economic Situation and Prospects 2015 report says business investment will be a major driver in the United States, growth in the

Dec. 11, 2014

U.S. lawmakers reach deal on spending bill

WASHINGTON (AFP) ― U.S. congressional negotiators finalized a huge spending bill late Tuesday that funds most federal operations through next September, concluding weeks of haggling to avoid a looming government shutdown.The $1.1 trillion measure, which includes money for anti-jihadist operations including training for moderate rebels in Syria, was agreed to with little time to spare before funding runs out at 11:59 p.m. Thursday.“This bill will allow us to fulfill our constitutional duty to res

Dec. 10, 2014

China deflation risk deepens signaling room for easing

China’s factory-gate deflation deepened and consumer prices climbed at the slowest pace since 2009, signaling room for further monetary easing. The producer price index dropped 2.7 percent in November from a year earlier, a record 33rd-straight decline and the biggest fall since mid last year. Consumer prices rose 1.4 percent, compared with the 1.6 percent increase in October. Falling oil and metals prices have cut costs for China’s factories, leading to lower export prices and adding to dis-inf

Dec. 10, 2014

China deflation risk deepens signaling room for easing

Greek stocks plummet on fear of political crisis

The Greek stock market had its biggest plunge since 1987 Tuesday as concerns mounted that the country is heading for a political crisis that could jeopardize its financial rescue program. The benchmark stock index in Athens dropped 12.8 percent after the conservative-led government brought forward the date of a presidential vote. If the vote in Greece's parliament is inconclusive, investors fear it could lead to general elections and a possible victory for an opposition party that wants to modi

Dec. 10, 2014

Microsoft says private data ‘at risk’ in court case

NEW YORK (AFP) ― Microsoft argued Monday in a court brief that an order requiring it to give U.S. prosecutors data stored in Ireland could “put all of our private digital information at risk.” The brief with the U.S. Court of Appeals in New York comes with prosecutors seeking customer emails in a narcotics probe, with the data stored in Microsoft servers in Ireland.A lower court ruled that the tech giant must hand over data sought in the probe, dismissing Microsoft’s claims of “extraterritorial”

Dec. 9, 2014

Microsoft says private data ‘at risk’ in court case

HuffPost launches in India, eyes China edition

The Huffington Post launched an Indian version of its news website Monday, seeking to tap the country’s exploding number of Internet users, and announced its next big goal was a Chinese edition.The AOL-owned website featuring, news, entertainment, health and blogs, has allied with the Times of India Group to launch HuffPost India, its 13th edition worldwide.It hopes to gain new readers in the world’s second-most-populous nation of 1.25 billion, where smartphones and other Internet-enabled device

Dec. 9, 2014

Honda adds 2.6m vehicles to air bag repair list

DETROIT (AP) ― Honda plans to replace driver’s air bag inflators on 2.6 million more vehicles as it expands repairs to the entire U.S.The Japanese automaker is the only company to comply with demand from the U.S. National Highway Traffic Safety Administration to do repairs nationwide. Honda says it’s doing so to address customer concerns.Air bags made by Japanese supplier Takata Corp. can inflate with too much force, blowing apart a metal canister and spewing shrapnel. At least five people have

Dec. 9, 2014

China rate swaps rise as new repo rules spark bond sell-off

China’s interest-rate swaps climbed to a three-month high, bonds dropped and stocks retreated after policy makers narrowed the pool of corporate debt that can be used as collateral for short-term loans. China Securities Depository and Clearing Corp. has stopped accepting new applications for repurchase agreements that involve notes rated below “AAA” or sold by issuers graded lower than “AA,” according to a statement posted on the agency’s website yesterday. The move means that about 470 billion

Dec. 9, 2014

Inequality worst in decades: OECD

PARIS (AFP) ― The gap between the rich and poor in a range of countries has reached its widest in 30 years and the trend has harmed growth, the OECD said Tuesday.The Organization for Economic Co-operation and Development said in a new report that most of its 34 member countries had seen a growing widening in the inequality gap.“In most OECD countries, the gap between rich and poor is at its highest level since 30 years,” the report said. “Today, the richest 10 percent of the population in the OE

Dec. 9, 2014

U.S. sues Deutsche Bank for tax evasion

NEW YORK (AFP) ― The U.S. government sued Deutsche Bank Monday for creating shell companies that allowed it to avoid paying tens of millions of dollars in taxes.The suit filed by the U.S. attorney in New York asks for $190 million in back taxes and penalties for an operation it alleged was made expressly to avoid taxes on a $100 million gain in the sale of stock.But the bank said the issue had been settled five years ago with the U.S. tax authority and that it does not understand why the governm

Dec. 9, 2014