The Korea Herald

U.S., China trade battle heats up at WTO

U.S.-China trade tensions heated up Monday as the U.S. lodged a complaint over Beijing's automotive subsidies with the WTO and China countered with a filing over U.S. duties on Chinese products.Washington accused China of providing at least $1 billion in illegal subsidies to Chinese auto and auto parts exporters over 2009-2011, helping them beat U.S. manufacturers in the huge U.S. market.The U.S.

Sept. 18, 2012

Japanese firms halt China operations after protests

Anti-Japan protesters stand on a Japanese flag in Shanghai, China, Sunday. (AP-Yonhap News)Major Japanese firms including Canon and Honda suspended operations at several plants in China, officials and reports said Monday, on the eve of an expected fresh wave of anti-Japan demonstrations.Beijing and Tokyo, the world's second and third-largest economies, are at loggerheads over disputed islands, pro

Sept. 18, 2012

Japanese firms halt China operations after protests

Obama to launch China WTO action

WASHINGTON (AFP) ― President Barack Obama will launch a new WTO enforcement action against Chinese auto subsidies Monday, countering his Republican foe Mitt Romney’s accusations that he is too timid towards Beijing.Obama will leverage the political power of his office when he makes the announcement in swing state Ohio and argue that Chinese practices in the auto sector put U.S. manufacturers at a disadvantage, a White House official said.“The Obama administration is launching an enforcement acti

Sept. 17, 2012

Portugal’s foreign minister calls for austerity rethink

Portugal’s foreign minister on Sunday advocated a rethink of swingeing austerity measures, a day after mass rallies were staged nationwide against the cuts and the country’s economic woes.Paulo Portas’s comments follow Prime Minister Pedro Passos Coelho announcement of tough new moves including an increase in worker social security contributions, combined with a cut in employer contributions, in a bid to create jobs in a country where unemployment has topped 15 percent.Portas, a key figure in Po

Sept. 17, 2012

Portugal’s foreign minister calls for austerity rethink

Creditors doubt Greece can meet goals

BERLIN (AFP) ― Greece’s international creditors no longer believe Athens can achieve its financial objectives, especially a reduction in its debt burden, the German business newspaper Handelsblatt reported.“Until now, creditors worked on the principle that Greece would achieve a sustainable level of indebtedness by 2020. This goal is no longer achievable,” the newspaper said, citing sources close to the so-called troika of creditors ― the International Monetary Fund, the European Union and the E

Sept. 17, 2012

IIF warns of ‘cliff effect’ in ECB bond plan

The Institute of International Finance warned that the European Central Bank’s plan to buy sovereign bonds may result in a “cliff effect” if a country fails to meet conditions tied to the purchases. Termination of bond purchases could lead to an “abrupt” market correction, the IIF’s market monitoring group said in a statement Sunday. Some countries may also be put off from seeking aid because of the requirements, said the Washington-based IIF, which represents more than 450 financial companies.

Sept. 17, 2012

Billionaire Arnault’s LVMH amasses $5.2b in Belgium

Companies linked to French billionaire Bernard Arnault’s LVMH Moet Hennessy Louis Vuitton have amassed 4 billion euros ($5.2 billion) in assets in Belgium, where he recently applied for citizenship. Belgian central bank records show that 12 companies and a private foundation, all connected to LVMH and based in Brussels, have more than tripled their assets since 2008. Olivier Labesse, an LVMH spokesman, said the companies are investment vehicles for LVMH, which has annual revenue of $26 billion.

Sept. 17, 2012

China’s workers feel pain of slowdown

When public relations manager Helen Chen quit her job to take a short break, she was confident of landing another in a matter of days once she was ready to rejoin the workforce.That was in June, when the Chinese economy was expected to bottom out and make a recovery.Now, three months later, Chen, 30, has yet to find a new position, despite having had interviews with four Beijing companies in the car, engineering, accounting and luxury goods sectors.“While companies still advertise positions, I g

Sept. 17, 2012

U.S. extends sanctions waivers for Japan, EU

WASHINGTON (AFP) ― The United States said Friday it would extend exemptions for European Union nations and Japan from tough sanctions that recently took effect against any nation that buys Tehran’s oil.Under a law meant to pressure the clerical regime over its contested nuclear program, the United States bars banks from nations that buy Iran’s key money-maker from doing business in the world’s largest economy.Secretary of State Hillary Clinton announced she was extending for another 180 days exe

Sept. 16, 2012

Greece needs two-year extension on fiscal pledges

ATHENS (AFP) ― Greece needs a two-year extension from its international creditors to meet fiscal pledges, and a liquidity boost from the European Central Bank, said Prime Minister Antonis Samaras.In a Washington Post interview appearing in Greece on Saturday, Samaras said the recession-hit country was determined to adopt a new austerity package worth 11.7 billion euros ($15 billion) to avoid leaving the eurozone.But he said the program should apply over four years instead of the currently agreed

Sept. 16, 2012

Greece needs two-year extension on fiscal pledges

U.S. probes major banks for money laundering: report

NEW YORK (AP) ― Regulators are investigating whether several major U.S. banks failed to monitor transactions properly, allowing criminals to launder money, according to a New York Times story. The newspaper cited officials who it said spoke on the condition of anonymity.The Office of the Comptroller of the Currency, the federal agency that oversees the biggest banks, is leading the money-laundering investigation, according to the Times. The report said the OCC could soon take action against JPMo

Sept. 16, 2012

U.S. probes major banks for money laundering: report

Massive protests in Spain, Portugal

Large anti-austerity protests in Spain and big demonstration in PortugalMADRID (AP) ― Tens of thousands of people from all over Spain rallied in the capital Saturday against punishing austerity measures enacted by the government, which is trying to save the country from financial collapse.Large anti-austerity protests also took place in neighboring Portugal. Demonstrators in Lisbon threw tomatoes and fireworks at the Portuguese headquarters of the International Monetary Fund. Two protesters were

Sept. 16, 2012

G20 economic growth slows in 2012: OECD

PARIS (AFP) ― Economic growth in the top G20 countries slowed to 0.6 percent in the second quarter of 2012 from 0.7 percent in the first quarter, with slow and weak growth set to continue, the OECD said on Thursday.The Chinese economy picked up but output in the eurozone, Japan and South Korea slowed sharply. Britain and Italy also showed shrinking output data.Some emerging economies showed relatively resilient growth, the data showed.The easing for the G20 area marks the third quarter running o

Sept. 14, 2012

Greece may get more time to meet commitments

NICOSIA, Cyprus (AP) — Greece may be given more time to meet its bailout commitments if the country‘s recession turns out worse than expected, but no more money will be provided by its euro partners, Dutch finance minister Jan Kees de Jager said Friday.Arriving for the start of two days of discussions between Europe’s finance ministers in the Cypriot capital, De Jager said Greece does not have much flexibility as it tries to get more time to achieve its budget cuts and reform measures required b

Sept. 14, 2012

Fed moves to boost weak economy

Fed to buy mortgage bonds, plans to keep rates ultra-low into 2015, says more action may comeWASHINGTON (AP) ― Alarmed by the chronically weak U.S. economy, the Federal Reserve launched an aggressive new effort Thursday to boost the stock market and make borrowing cheaper for years to come. And it made clear it won’t stop there and is ready to try other stimulative measures if hiring doesn’t pick up. Stock prices rocketed up in approval. But economists said the Fed’s plans to buy mortgage bonds

Sept. 14, 2012

BAE Systems, EADS in merger talks

LONDON (AFP) ― British arms manufacturer BAE Systems and European planemaker EADS revealed Wednesday they are in merger talks to create a global aerospace and defense leader that would better rival U.S. giant Boeing.“BAE Systems plc and EADS confirm that they are in discussions regarding a possible combination of their businesses,” the companies said in a joint statement that confirmed feverish market speculation.The talks envisaged BAE Systems owning 40 percent of the enlarged group, with EADS

Sept. 13, 2012

German court’s backing to test leaders’ resolve

German backing for Europe’s bailout fund quickened the bargaining over a bond-buying program for Spain, testing the resolve of government leaders and the European Central Bank to conquer the debt crisis. Spain is pressing for an ECB intervention with no strings attached, while creditors led by German Chancellor Angela Merkel are reluctant to lend more money. Mario Draghi’s central bank is waiting for the two sides to commit before it wades back into the bond market. After yesterday’s “Super Wedn

Sept. 13, 2012

German court’s backing to test leaders’ resolve

Rise in Japanese machinery orders helps shore up waning growth

Japan’s machinery orders rose more than forecast in July even as weakness in exports and waning subsidies for auto purchases threaten to stifle economic growth. Orders climbed 4.6 percent from the previous month, after gaining 5.6 percent in June, the Cabinet Office said Wednesday in Tokyo. The median estimate of 29 economists surveyed by Bloomberg News was for a 2 percent increase. Large orders can cause volatile results. Wednesday’s reading and a pick-up in manufacturers’ confidence signal som

Sept. 12, 2012

Moody’s warns of U.S. rating cut

NEW YORK (AP) ― The U.S. government’s debt rating could be heading for the “fiscal cliff” along with the federal budget.Moody’s Investors Service on Tuesday said it would likely cut its “Aaa” rating on U.S. government debt, probably by one notch, if budget negotiations fail.If Congress and the White House don’t reach a budget deal, about $1.2 trillion in spending cuts and tax increases will automatically kick in starting Jan. 2, a scenario that’s been dubbed the “fiscal cliff,” because it is lik

Sept. 12, 2012

China's Wen vows to boost growth, defends legacy

TIANJIN (AFP) -- Chinese Premier Wen Jiabao hinted Tuesday at new stimulus measures to boost flagging growth, while vigorously defending his decade in charge of the world’s second-largest economy as Beijing approaches a sensitive leadership transition.China's economy "was showing signs of stabilizing" and would likely meet the 7.5 percent expansion the government set for the year, Wen said in a speech to the World Economic Forum in the eastern city of Tianjin."We are fully confident that we have

Sept. 12, 2012