OECD backs Japan deflation fight

TOKYO (AFP) ― The Organization for Economic Co-operation and Development on Tuesday backed Japan’s bid to end years of deflation, but called on Tokyo to step up efforts to shrink its huge debt pile.In an annual country report, the 34-member OECD described the new government’s bid to reverse falling prices with huge stimulus measures as “most encouraging.”Deflation has dragged on growth in the world’s third-largest economy for at least 15 years with successive administrations unable to conquer th

April 23, 2013

Flight delays pile up amid budget cuts

NEW YORK (AP) ― Flight delays piled up across the country Monday as thousands of air traffic controllers began taking unpaid days off because of federal budget cuts, providing the most visible impact yet of Congress and the White House’s failure to agree on a long-term deficit-reduction plan. The Federal Aviation Administration kept planes on the ground because there weren’t enough controllers to monitor busy air corridors. Cascading delays held up flights at some of nation’s busiest airports, i

April 23, 2013

Mercedes-Benz pushes reset button on China after sales drive falters

Daimler AG’s Mercedes-Benz is accelerating its dealer expansion in China and streamlining sales to fix past missteps that have contributed to a growing gap with Bayerische Motoren Werke AG and Audi AG. “We spent a lot of time looking at what went wrong in the past,” Hubertus Troska, the newly appointed head of the German manufacturer’s Chinese operations, said at the Shanghai Motor Show. “Among the first things, I did was to go out, visit dealers and do some mystery shopping.” Mercedes lost the

April 22, 2013

Fed’s Bernanke to miss Jackson Hole symposium

Federal Reserve Chairman Ben Bernanke will not attend the central bank’s marquee conference in Jackson Hole, Wyoming, this year because of a personal scheduling conflict, a Fed spokeswoman said. The 59-year-old Bernanke, whose term as head of the central bank expires in January, has been the keynote speaker every year since becoming chairman in 2006. The spokeswoman, who asked not to be identified by name, declined to say whether Bernanke would address the conference by video or whether Vice Cha

April 22, 2013

Seniors find happiness in a corner of Korea

Bright spring sunshine filtered through the windows to light up the faces of elderly men and women as they moved and twirled in a ballroom dance hall. With arms waving, hips swinging and some missing a few beats, about 80 seniors were learning how to dance with partners to a groovy song.“Here you become healthier and make friends with men and ladies,” Choi Dong-ryeol, 70, said with a beaming smile. Sporting a pink striped shirt, black pants and shiny dress shoes, Choi gestured toward his waist a

April 21, 2013

U.S. OKs resumption of Boeing 787 flights

WASHINGTON (AP) ― Boeing’s beleaguered 787 could be flying again within a week after federal officials approved a fix for its batteries, even though the root cause of a fire on one plane and smoke on another still isn’t known. The Federal Aviation Administration said Friday it would send airlines instructions and publish a notice next week lifting the 3-month-old grounding order that day. Airlines will be able to begin flying the planes again as soon as the new systems are installed and they hav

April 21, 2013

Japan wins spot in mega trade pact

SURABAYA, Indonesia (AFP) ― Japan won its bid to enter talks on a massive Pacific trade pact Saturday after winning over its last opponent, Canada, for a proposed agreement that would account for more than 40 percent of the global economy.The decision became unanimous when Canada “successfully concluded” consultations with Japan after being the sole nation of 11 in the U.S.-driven Trans-Pacific Partnership that still opposed Tokyo’s participation.“As the world third largest economy, having Japan

April 21, 2013

Cyprus to open casinos to restart economy

NICOSIA, Cyprus (AP) ― Cyprus’ president said Friday that the bailed-out country will open casinos and bolster its tourism sector to get the economy going again. Nicos Anastasiades unveiled a first batch of measures he said are designed to boost growth in an economy that is projected to shrink by 13 percent until 2015. Anastasiades included casino openings among campaign pledges before his election in February. He said Cyprus would fork out 21 million euros ($27.54 million) to partly subsidize s

April 21, 2013

Fitch strips Britain of top rating

LONDON (AFP) ― Fitch on Friday stripped recession-threatened Britain of its top “AAA” rating, moving it down one notch to “AA+” as a weaker economic outlook continues to push up the country’s debt.In response, the coalition government indicated that the downgrade would not sway it from finance minister George Osborne’s controversial policy of deep cuts to state spending.Fitch meanwhile said in a statement published after the close of British markets: “The downgrade of the U.K.’s sovereign rating

April 21, 2013

World leaders issue sober assessment

WASHINGTON (AP) ― World finance leaders issued a somber assessment on Saturday of the global economy, saying the recovery remains uneven with growth and jobs in short supply. The steering committee for the 188-nation International Monetary Fund issued a final communique that called for decisive action to bolster growth. However, the major economies remained at odds over the best mix of policies to pursue. “An uneven recovery is emerging but growth and job creation are still too weak. New risks a

April 21, 2013

Weak global economy key worry

WASHINGTON (AFP) ― Advanced and developing countries alike voiced worries over fragile global growth, eurozone stagnation and the swamp of excess monetary liquidity as the IMF and World Bank spring meetings kicked off Thursday.Calls continued from multiple fronts for countries to ease harsh austerity programs to boost growth and, at the same time, for the world’s central bankers to be more cautious about feeding more money into the financial system, lest it spark new investment bubbles and an in

April 19, 2013

U.S. growth at ‘moderate’ pace: Fed Beige Book

WASHINGTON (AFP) ― The Federal Reserve slightly upgraded its view of the U.S. economy Wednesday, its Beige Book report on regional activity saying that manufacturing and construction continues to grow.“Reports from the twelve Federal Reserve Districts suggest overall economic activity expanded at a moderate pace during the reporting period from late February to early April,” the survey said.The previous Beige Book, a key input for monetary policymaking, was more tentative, calling growth “modest

April 18, 2013

ECB could cut rates further: Weidmann

FRANKFURT (AFP) ― The European Central Bank could cut interest rates if new information warranted such a move, but may not actually prove very effective, ECB council member Jens Weidmann said in an interview Wednesday.“We might adjust in response to new information,” however, “I don’t think that the monetary-policy stance is the key issue,” Weidmann ― who is president of Germany’s central bank the Bundesbank ― told the Wall Street Journal in an interview.The ECB slashed its key interest rate to

April 18, 2013

U.S. keeps up pressure on G20

U.S. Treasury Secretary Jacob Lew urged Group of 20 officials to maintain a pledge to refrain from influencing exchange rates at the expense of other countries, saying Japan’s recent policies align with the pact. “We will continue to press G20 countries to avoid a downward spiral of ‘beggar thy neighbor’ policies,” Lew said Wednesday in Washington ahead of this weekend’s meetings of finance ministers starting tomorrow. “It is imperative that all G20 countries follow through on their recent commi

April 18, 2013