The Korea Herald

Ukraine threatens oil and gas cut-off in Russia sanctions

Ukraine threatened to block Russian oil and gas supplies to Europe in new sanctions against Vladimir Putin’s government, which it blames for a separatist uprising that has ravaged the country’s east. Ukraine, which no longer receives any gas from Russia but acts as a conduit for its neighbor’s European customers, is considering a “complete or partial ban on the transit of all resources” across its territory, Prime Minister Arseniy Yatsenyuk told reporters Friday in Kiev. It may also ban Russian

Aug. 10, 2014

Ukraine threatens oil and gas cut-off in Russia sanctions

Malaysia plans overhaul of troubled national airline

KUALA LUMPUR, Malaysia (AP) ― Malaysia’s state investment company said Friday it plans to make Malaysia Airlines fully government owned, removing it from the country’s stock exchange before carrying out an overhaul of the carrier that is reeling from double disasters.Khazanah Nasional, which owns 69 percent of Malaysia Airlines, said it has proposed to the carrier’s board that it buy out minority shareholders at 27 sen (8 cents) a share, which is 29 percent higher than the airline’s average shar

Aug. 10, 2014

China’s below-target inflation gives room for more policy easing

China’s consumer inflation remained below the government’s goal in July and factory-gate deflation persisted, suggesting policy makers still have room for monetary easing amid a lack of pressure on prices. The consumer price index rose 2.3 percent from a year earlier, the National Bureau of Statistics said in Beijing Friday, the same pace as in June and also the median estimate in a Bloomberg News survey. Factory-gate prices fell 0.9 percent, matching projections and extending the longest stretc

Aug. 10, 2014

Google to buy two start-ups to bolster video ads, mobile

Google Inc., owner of the world’s most popular Internet search engine, is acquiring smartphone-messaging application Emu and video-creation service Directr Inc., bolstering its mobile and advertising capabilities. Emu’s service, which offers “texting, with a built-in assistant,” integrates with other smartphone services, so users can schedule calendar events, share locations or look up restaurants and movies via the app. Directr will join the advertising team at Google’s YouTube, making it easie

Aug. 7, 2014

Obama hails U.S.-Africa ties

WASHINGTON (AP) ― Though noting persistent challenges, President Barack Obama heralded Africa as a continent on the rise and a growth market for U.S. businesses as he closed an unprecedented summit Wednesday aimed in part at fostering his own African legacy. The summit also marked a rare return to Washington for former President George W. Bush, who launched a $15 billion HIV/AIDS initiative while in office and has made public health issues in Africa a priority since leaving the White House. Bush

Aug. 7, 2014

BOA nears $17 billion settlement with U.S.

WASHINGTON (AP) ― Bank of America is nearing a $16 billion to $17 billion settlement to resolve an investigation into its role in the sale of mortgage-backed securities before the 2008 financial crisis, a person directly familiar with the matter said Wednesday.The deal with the bank, which must still be finalized, would be the largest Justice Department settlement by far arising from the economic meltdown in which millions of Americans lost their homes to foreclosure. It would follow earlier mul

Aug. 7, 2014

Fox withdraws Time Warner bid

Rupert Murdoch’s 21st Century Fox is abandoning its attempt to take over Time Warner in a proposed deal that would have combined two of the world’s biggest media companies. The about-face announced Tuesday comes three weeks after Time Warner Inc. revealed that it had rejected 21st Century Fox’s unsolicited $76 billion buyout offer. Murdoch, a voracious dealmaker throughout his colorful career, had envisioned creating a movie-and-television powerhouse by devouring Time Warner. Twenty First Centur

Aug. 6, 2014

Apple to debut bigger iPhones in Sept.: source

Apple Inc. is preparing to introduce bigger-screen iPhones at an event on Sept. 9, a person familiar with the plans said. The Cupertino, California-based company is set to introduce two new models: one with a 4.7-inch screen, and another with a 5.5-inch screen, people with knowledge of the plans have said. The Apple logo is displayed at the Upper West Side Apple Store in New York. (Bloomberg)Anticipation for bigger-screen iPhones has analysts predicting that Apple will sell a record number of h

Aug. 6, 2014

Apple to debut bigger iPhones in Sept.: source

Obama pledges $33b to Africa

WASHINGTON (AP) ― Seeking to strengthen America’s financial foothold in Africa, President Barack Obama announced $33 billion in commitments Tuesday aimed at shifting U.S. ties with Africa beyond humanitarian aid and toward more equal economic partnerships. The bulk of the commitments came from private-sector companies, including Coca-Cola and General Electric, underscoring Africa’s growing appeal to businesses. The continent is home to six of the world’s fastest-growing economies and a rapidly e

Aug. 6, 2014

China to punish Audi, Chrysler

SHANGHAI (AFP) ― German luxury car maker Audi and Chrysler of the United States have committed “monopoly behavior” in China and will be punished soon, the country’s regulator said Wednesday, as a probe of foreign auto firms grows.“It has been found out that the two companies did have monopoly behavior and they will be punished accordingly in the near future,” Li Pumin, spokesman for the National Development and Reform Commission, told a news conference.The investigations are taking place as regu

Aug. 6, 2014

U.S. regulator: Big banks still threaten

NEW YORK (AFP) ― U.S. regulators warned Tuesday that 11 giant banks have unrealistic contingency plans in the event of bankruptcy and warned that if they fail they could plunge the world into a new financial crisis.The Federal Reserve and Federal Deposit Insurance Corporation said the 11 titans, popularly known as “those too big to fail,” must make better plans to restructure their firms if they get into trouble.FDIC Vice Chairman Thomas Hoenig said they had failed to show “how, in failure, any

Aug. 6, 2014

U.S. regulator: Big banks still threaten

Wealth gap is slowing U.S. economic growth, S&P says

WASHINGTON (AP) ― Economists have long argued that a rising wealth gap has complicated the U.S. rebound from the Great Recession. Now, an analysis by the rating agency Standard & Poor’s lends its weight to the argument: The widening gap between the wealthiest Americans and everyone else has made the economy more prone to boom-bust cycles and slowed the 5-year-old recovery from the recession. Economic disparities appear to be reaching extremes that “need to be watched because they’re damaging to

Aug. 6, 2014

India to become single market for first time

More than six decades after it achieved independence, India has yet to have a single internal market, with its economy divided up by state taxes on commerce. That may be about to change, following the reversal by one of the biggest foes of a national sales tax ― Narendra Modi, the prime minister who took office in May. After opposing a goods-and-services tax during his 12 years running Gujarat state, Modi has pulled his ruling party behind the idea and plans to enact it within eight months. Succ

Aug. 6, 2014

McDonald’s warns of big impact from China meat scandal

NEW YORK (AFP) ― McDonald’s said Monday that a recent scandal over expired meat from a Chinese food supplier has had a “significant negative impact” on sales in China, Japan and some other markets.The fast food giant also said it was working to regain customer confidence in a region that accounts for 10 percent of its revenues.On July 21, Shanghai officials shut the Shanghai Husi Food Co. following a television report alleging the plant mixed out-of-date meat with fresh product. A man reads a f

Aug. 5, 2014

McDonald’s warns of big impact from China meat scandal

German auto firm Daimler confirms China investigation

SHANGHAI (AFP) ― China’s probes into foreign firms spread to the auto sector Tuesday as German car giant Daimler said it was assisting authorities, after reports a Shanghai office of its Mercedes-Benz unit was raided.“We confirm that we are assisting the authorities in their investigation,” Daimler Greater China said in an email to AFP.It is the first confirmation of an official inquiry into a foreign automaker in China, the world’s largest car market, after authorities targeted overseas firms i

Aug. 5, 2014

Markets may be surprised by pace of rate rise: Lacker

Investors may be underestimating the pace at which the Federal Reserve will raise interest rates over the next two years, said Jeffrey Lacker, president of the Federal Reserve Bank of Richmond. Short-term interest-rate markets have for months priced in a slower tempo of increases than policy makers themselves forecast. That’s risky because the misalignment, a bet against a rate path that the central bank alone controls, could lead to volatility if traders have to adjust rapidly, Lacker said. “Wh

Aug. 5, 2014

Markets may be surprised by pace of rate rise: Lacker

Portugal puts up $6.6b to save ailing bank

LISBON, Portugal (AP) ― Portuguese authorities are providing 4.9 billion euros ($6.6 billion) in an emergency rescue to prevent the collapse of ailing bank Banco Espirito Santo, one of the eurozone country’s oldest and biggest financial institutions. Bank of Portugal Gov. Carlos Costa said late Sunday the money will come from a special fund set up during the eurozone’s recent financial crisis. The fund was created to help financial institutions in difficulty. The move came after Banco Espirito S

Aug. 4, 2014

Portugal puts up $6.6b to save ailing bank

Japanese firms seek to regain influence in Brazil

In the 1950s, Japan helped Brazil establish industries such as steelmaking and initiated key purchases of Brazilian iron ore. Now the Asian nation is seeking to regain influence in Latin America’s largest economy, where China is the No. 1 trading partner. Japan has signed deals from energy to food and health care during Prime Minister Shinzo Abe’s visit to the country, the first by a Japanese leader in a decade. Abe wants to strengthen ties with Brazil, where about 1.6 million people of Japanese

Aug. 4, 2014

Harley recalls bikes for ignition switch problem

DETROIT (AP) ― Ignition switch problems that have plagued General Motors and Chrysler have now turned up in the motorcycle business.Harley-Davidson is recalling more than 3,300 FXDL Dyna Low Rider bikes because engine vibration can turn the switches from “on” to “accessory.”The recall covers motorcycles from the 2014 1/2 model year. If the motorcycles have been modified to rev higher than 5,600 RPMs, an engine mount bracket can vibrate excessively, causing the problem.If the switch goes to “acce

Aug. 3, 2014

Harley recalls bikes for ignition switch problem

China services index drops on weak property market

A Chinese services-industry index declined to a six-month low in July, dragged down by a weaker property market. The nonmanufacturing Purchasing Managers’ Index fell to 54.2 from 55.0 in June, the Beijing-based National Bureau of Statistics and China Federation of Logistics and Purchasing said Sunday in Beijing. A reading over 50 indicates expansion. Sunday’s report highlights the danger a correction in the property market poses to growth in the world’s second-biggest economy and contrasts with

Aug. 3, 2014