G8 to desert U.N. summit on hunger, scepticism rife

G8 to desert U.N. summit on hunger, scepticism rife

G8 to desert U.N. summit on hunger, scepticism rife

Posted: 16 Nov 2009 12:24 AM PST

ROME (Reuters) - Government leaders and officials meet in Rome on Monday for a three-day U.N. summit on how to fight global hunger, but anti-poverty campaigners are already writing off the event as a missed opportunity.


Obama says Washington not trying to contain China

Posted: 16 Nov 2009 12:24 AM PST

SHANGHAI (Reuters) - U.S. President Barack Obama said he was not seeking to contain China's rise and called for more balanced trade between the two powers, which have sparred over currency and economic policy ahead of a summit.


Iran says nuclear rights non-negotiable - report

Posted: 15 Nov 2009 11:53 PM PST

TEHRAN (Reuters) - Iran's President Mahmoud Ahmadinejad said on Monday the country's nuclear rights were not negotiable, the student news agency ISNA reported.


Suu Kyi seeks meeting with Myanmar junta leader

Posted: 15 Nov 2009 11:53 PM PST

YANGON (Reuters) - Detained Myanmar opposition leader Aung San Suu Kyi has requested a meeting with the military regime's top leader, adding to signs that lines of communication are opening up between her and the junta.


Gunmen in army uniforms kill 12 Iraqi villagers

Posted: 15 Nov 2009 11:53 PM PST

BAGHDAD (Reuters) - Gunmen wearing military uniforms shot dead 12 men in a pre-dawn attack at a village near Baghdad on Monday, villagers and police said.


Geneva gem auctions to sparkle

Posted: 15 Nov 2009 10:52 PM PST

Some of the world's rarest and most valuable precious stones are up for sale at the annual winter jewellery auctions in Geneva.


Suicide bomber kills 4 near Pakistani air base

Posted: 15 Nov 2009 11:24 PM PST

PESHAWAR, Pakistan (Reuters) - A suicide car-bomber killed four people on Monday near a Pakistan air force base close to the northwestern city of Peshawar and the Afghan border, a government official said.


Obama says Washington not trying to contain China

Posted: 15 Nov 2009 10:26 PM PST

SHANGHAI (Reuters) - U.S. President Barack Obama said on Monday that Washington was not trying to contain China's rise but said trade between the two giants needed to be more balanced.


Aquino leads in latest Philippine presidential poll

Posted: 15 Nov 2009 09:23 PM PST

MANILA (Reuters) - The son of Philippines democracy icon Corazon "Cory" Aquino continued to lead candidates for the 2010 presidential election, an opinion poll said on Monday.


Anti-Castro money shifts to Democrats - report

Posted: 15 Nov 2009 09:23 PM PST

WASHINGTON (Reuters) - Anti-Castro Cuban-Americans are donating more money to Democratic lawmakers in hopes of blunting momentum in Congress to lift the U.S. trade embargo of the Communist-ruled Caribbean nation, a report said on Monday.


Rome hosts 'world food summit'

Posted: 15 Nov 2009 08:44 PM PST

Aid organisations are calling for more help from wealthy nations as a three-day "world food summit" begins in Rome.


Suicide bomber kills 3 near Pakistani air base

Posted: 15 Nov 2009 08:53 PM PST

PESHAWAR, Pakistan (Reuters) - A suicide car-bomber killed at least three people on Monday near a Pakistan air force base close to the northwestern city of Peshawar and the Afghan border, a government official said.


Leaders vow new economic model

Posted: 15 Nov 2009 09:20 AM PST

SINGAPORE: Asia-Pacific leaders including the US and Chinese presidents Sunday vowed to remake the world economy after the worst financial crisis in decades, rejecting protectionism and old models of growth. Asia-Pacific Economic Cooperation (APEC) forum leaders, who together steer more than half the global economy, also said they would persist with hefty stimulus spending "until a durable economic recovery has clearly taken hold". US President Barack Obama pressed Asian leaders at the weekend summit in Singapore to retool their export-led economies and rebalance world growth, or risk a "drift from crisis to crisis". But Obama was subject to much criticism in Singapore over his perceived neglect of free trade, with Congress and powerful Democratic barons in the trade union movement clamouring to protect US industry as joblessness soars. In a concluding declaration, the leaders said: "We firmly reject all forms of protectionism and reaffirm our commitment to keep markets open and refrain from raising new barriers to investment or to trade in goods and services." "We cannot go back to 'growth as usual'," they added. "We need a new growth paradigm. We need a fresh model of economic integration. "We will pursue growth which is balanced, inclusive and sustainable, supported by innovation and a knowledge-based economy, to ensure a durable recovery that will create jobs and benefit our people." The summit's chairman, Singapore Prime Minister Lee Hsien Loong, explained that "sustainable" growth meant working for an "ambitious outcome" at Copenhagen climate talks next month. If thin on specifics, the APEC declaration was a nod to Obama's demand that US consumers must no longer bear the brunt of stoking world demand, and that Asians must start to spend and not hoard their export earnings. The president noted that voracious US consumerism had for decades fuelled the growth of regional economies. But when crisis struck last year, the "demand for Asian goods plummeted" and the global recession deepened. "We cannot follow the same policies that led to such imbalanced growth," Obama said in summit remarks released by the White House, highlighting the sky-high deficits run up by the US during the boom years. "If we do, we will continue to drift from crisis to crisis, a failed path that has already had devastating consequences for our citizens, our businesses, and our governments," he said. In one development welcomed by APEC allies, Obama said the US was interested in exploiting a four-country Pacific trade pact as the nucleus for a massive free-trade zone covering the entire group's 2.6 billion people. The APEC leaders instructed their officials to start exploratory work on the so-called Free Trade Area of the Asia Pacific, although analysts warn that the giant undertaking is years if not decades from fruition. More immediately, the heads of government pledged to try to conclude the World Trade Organization's stalled Doha round of negotiations next year. At the Singapore meetings, President Hu played up China's role in shoring up world growth after the crisis engulfed the US, and vowed to "vigorously expand" its market. However, criticism that China keeps an artificial lid on its currency to gain an unfair trade edge flared anew at APEC. Obama is expected to press Hu on the exchange-rate row when the two leaders meet in Beijing later this week. - AFP


Low US interest rates threaten global recovery, says Chinese official

Posted: 15 Nov 2009 09:21 AM PST

BEIJING: China's top bank regulator said yesterday that the weakening US dollar and low interest rates are spurring speculation in stocks and property, distorting global asset prices and threatening the global economic recovery. The situation poses an "insurmountable risk to the recovery of the world economy," Liu Mingkang, chairman of the China Banking Regulatory Commission, warned just hours before President Barack Obama was due to arrive in China. Speaking at a conference in Beijing, Liu said the declining US dollar and reassurances by officials that interest rates will remain low were encouraging a "massive" US dollar carry trade - the practice of borrowing money at low rates in one currency to invest in assets in another currency that offer a higher return. The carry trade is "dealing a serious blow to global asset prices and fueling speculation in the stock and real estate markets," he said, according to a transcript of a speech he made at a financial forum in Beijing, posted on the website of Hong Kong's pro-Beijing Phoenix TV. The US dollar has declined steadily since spring despite statements of support from American officials. China is the largest foreign holder of US debt, mostly in the form of Treasury securities, which have declined in value as a result of the dollar's weakness. At the same time, record-low US interest rates, intended to encourage lending to businesses struggling to recover from the recession, are spurring investors to transfer funds out of the safety of low-yield dollar-denominated investments such as Treasury securities and into higher-yielding assets like stocks, commodities and emerging-market currencies. Strong flows of such funds into China's markets, where share prices have surged by more than 70 per cent this year, and property have raised worries over a possible bubble in asset prices that might later implode, causing financial problems. The yuan has effectively been pegged against the dollar since mid-2008 to cushion its economy from the downturn. - AP, Reuters


Members express concern over 'unstable currency movements'

Posted: 15 Nov 2009 09:23 AM PST

SINGAPORE: Some members of the Asia Pacific Economic Cooperation grouping, which includes the US and China, expressed concerns over unstable currency movements at a summit, host Singapore said yesterday. "Currencies were part of the discussions amongst the leaders and some of the leaders expressed their concerns over the possibility of currency movements which would become unstable, and also the potential problems which could arise if governments had to intervene continually in order to manange their currencies," said Singapore Prime Minister Lee Hsieng Loong at a post-summit press conference. "But we did not reach a, we did not have an in-depth discussion," he added. Chinese President Hu Jintao ignored the yuan issue in several speeches at APEC and focused instead on what he called "unreasonable" trade restrictions on developing countries. An earlier draft pledged APEC's 21 members to maintain "market-oriented exchange rates that reflect underlying economic fundamentals". That statement had been agreed to at a meeting of APEC finance ministers on Thursday, including China, although the statement made no reference to the yuan. An APEC delegation official said Washington and Beijing could not agree on the wording. A US official sought to downplay talk of discord over the removal of the reference to currencies, and said the actual discussions took place among aides, not leaders. - Reuters, AFP


China corners rare earths market

Posted: 15 Nov 2009 09:21 AM PST

BEIJING: As resource-hungry China scours the world for crude oil and natural gas supplies, it has managed to corner the global market for a group of obscure metals used to make iPods, wind farms and electric cars. China supplies at least 95 percent of the world's rare earths - 17 chemical elements with hard-to-pronounce names such as praseodymium and yttrium - essential for a wide range of high-tech devices and green technologies. The nation has long recognised the value of these metals, with the late paramount leader Deng Xiaoping noting the Middle East had oil but China had rare earths. And, as the Organisation for the Petroleum Exporting Countries does with oil, China is tightly controlling the supply of these vital natural resources. "China's goal is to create jobs in China and create goods in China," said Jack Lifton, a US-based independent rare earths analyst. "We need to start producing these metals here (US) as we did in the past. If we don't do that, China will be the only country manufacturing devices using rare earths by the year 2015." A single mine in China's northern Inner Mongolia region produces half of the world's rare earths, with the rest coming from smaller mines in southern China as well as Russia, India and Brazil. China keeps most of the minerals within its borders by restricting foreign shipments. Authorities have been increasingly restricting exports in recent years as China seeks to prop up prices, ensure supply for its own needs and create jobs for millions of migrant workers by luring foreign companies to its shores. "The government hopes that the restrictions could prompt the transfer of advanced rare earth processing technologies into China," said Ren Xianfang, a Beijing-based economist with IHS Global Insight. "Whether this resource-in-exchange-for-technology strategy will work in favour of China remains to be seen." Alarm bells started ringing this year amid reports that China's State Council, or Cabinet, was considering further tightening restrictions and even banning the export of certain elements as well as closing mines. Foreign companies and governments fear the new rules, if implemented, will deny them access to the metals used to make everything from hybrid vehicles to missiles, and force manufacturers to shift their plants to China. "It's crunch time," said Dudley Kingsnorth, an Australian-based independent rare earths consultant. "In the next few years we are going to be in a situation where (export and production) quotas are reduced and unless we have sources outside China, more companies are going to have to relocate to China to secure access." On top of the minimal rare earths production in Russia, India and Brazil, deposits being developed in Australia and the US will be able to produce about 50,000 tonnes of rare earths by 2014. But with total demand expected to double to around 180,000 tonnes within five years and China shutting the door on foreign buyers, analysts fear this may not be enough to meet global needs. "Supply and demand are going to start to be fairly tight from 2012 to 2014," said Kingsnorth. "If there's a delay in those projects (in the US and Australia), we are going to have real issues. There won't be enough rare earths." - AFP


Citigroup to sell stake in Japanese telemarketer to Bain

Posted: 15 Nov 2009 09:22 AM PST

TOKYO: Citigroup Inc said on yesterday it has agreed to sell its stake in Japanese telemarketer Bellsystem24 to US private equity firm Bain Capital for 93.5 billion yen (100 yen = RM3.75). Bain has been widely expected to buy Bellsystem24 after securing exclusive negotiation rights earlier this month. Sources had told Reuters last week that Bain was close to finalising a roughly 100 billion yen deal for the company, marking the largest buyout by a foreign private equity firm in Japan in nearly two years. Bain has beaten off rivals Permira and a team of CVC Capital and Blackstone, which had also made offers in the final round of bidding for Bellsystem24. Citigroup said in an emailed statement that it had agreed to sell its 93.5 per cent stake in Bellsystem24 for 93.5 billion yen in cash in a tender offer to be launched by a firm owned by funds advised by Bain Capital. The tender offer will likely start on or before Friday and be completed on December 30. - Reuters


Las Vegas Sands to restart Macau project with IPO funds

Posted: 15 Nov 2009 09:23 AM PST

HONG KONG: Las Vegas Sands plans to restart its stalled Macau casino resort with funds raised from a US$3.4 billion initial public offering in Hong Kong, company executives said yesterday. The project was halted in November last year as the global economic crisis hit, with the loss of 11,000 construction jobs in the former Portuguese colony. Proceeds from the IPO, set to begin today, would be used to pay down debt and restart construction of the two-billion-dollar project slated to open by the end of 2011, said Steven Jacobs, chief executive of the firm's Macau unit, Sands China, speaking via video conference. By offering non-gaming activities, Las Vegas Sands chairman Sheldon Adelson said the project would focus on customers from around Asia, not just day-tripping gamblers from Hong Kong and mainland China - the key market for Macau's casino operators. "Those are the higher-spending, higher-value customers," Adelson told reporters in Hong Kong via video from Las Vegas. "If they have to get on a plane, they'll have to stay for two or three days." The US casino operator is aiming to generate 30 per cent of its Macau revenue from non-Chinese customers, up from about 10 per cent now, Jacobs said. Las Vegas Sands currently operates the Venetian, Sands and Four Seasons casino hotels in Macau. The company announced its listing plan after rival Wynn Macau launched an initial public offering in Hong Kong on October 9, as overseas casino operators seek to capitalise on a rebound in sentiment towards Macau's gaming sector. The city has now leapfrogged Las Vegas in terms of gaming revenue after opening up its market to overseas operators in 2002. - AFP


Renault hopes to crack Indian mart with cheap car

Posted: 15 Nov 2009 09:22 AM PST

NEW DELHI: Long stuck at a red light in India, French carmaker Renault has fresh plans to conquer the country's explosively growing car market with a revitalised local partnership deal and a low-cost vehicle. Renault and its Japanese partner Nissan are set to join in 2012 the crowd of manufacturers producing low-cost cars for India in a bid to challenge head-on the Tata Nano, the world's cheapest automobile. "I don't want Renault and Nissan to be makers of very pretty cars people dream about but can't afford," Carlos Ghosn, who runs the Franco-Japanese car-making alliance Renault Nissan, said here last week. "We need an entry price that's very competitive," Ghosn said, declaring plans were on track with the alliance's Indian partner Bajaj to roll out the car - dubbed ULC for ultra low cost - albeit a year behind schedule. India's Tata Motors set a new floor globally for car prices when it launched the snub-nosed Nano, whose price starts at around 115,000 rupees (100 rupees = RM7.59). The four-door hatchback mini-car hit Indian roads earlier this year. Ghosn, who has made the cheap car a pet project, kept mum about the showroom price when he spoke on the sidelines of an economic conference. But he said the cost of the car will be "amazing" and "lower than any car today made in India" when taking into account fuel and other running expenses. Renault-Nissan had earlier pegged the price in the US$2,500-US$3,000 range. The car will be designed and made by top Indian motorbike and rickshaw maker Bajaj Auto and marketed by the Renault Nissan Alliance, which currently accounts for just 1 per cent of sales in India. "We've a clear definition of who does what," Ghosn said, announcing differences with Bajaj that held up the project had been resolved. Up to 80 per cent of the internal car components are expected to be shared with Bajaj's two and three-wheelers, making manufacturing less costly. "Bajaj is an eminently good choice to make this car as it will be something between a motorcycle and conventional car," said Indian motoring columnist Murad Ali Baig. Renault's other lone foray in the Indian market has been the four-door Logan built with another Indian partner, top utility vehicle maker Mahindra and Mahindra, aimed at the mid-size segment. But the Logan, launched in 2007, has found few buyers, panned by critics for its "dated looks" and high price. "We had no illusions when we came to India we would get it right the first time," Ghosn said. When the Logan was released, Renault aimed to sell 30,000 cars a year. But sales have been one-fifth of that and the Renault-Mahindra partnership posted a loss of 4.9 billion rupees in the last financial year. Renault, which owns 44 per cent of Nissan, believes it needs critical mass in India to drive global growth. "The cheap car (segment) is a sensible entry point for them but we have to see what their plans are like," said Emkay Shares and Stock Brokers analyst Chirag Shah. "It's early days." The Indian market - forecast to triple to six million cars annually from two million in a decade - is fast turning into a global battleground as carmakers seek new growth regions to offset anaemic Western sales. Indian car sales in October rocketed by 34 per cent to 132,615 units, according to industry figures released last week. "Renault Nissan has 10 percent of the worldwide market," Ghosn said. But "in India, our market share is less than 1 per cent. We can't accept the situation." Analysts say pricing will be key to the success of the venture and say there is a big market for ultra-cheap cars. - AFP


CMA CGM takes delivery of environ-friendly vessel

Posted: 15 Nov 2009 09:20 AM PST

CONTAINER shipping group CMA CGM has taken delivery of its new eco-friendly vessel in South Korea last week. Dubbed "CMA CGM Christophe Colomb", it has started its journey from Shanghai on November 11 and moved on to Ningbo, Xiamen, Hong Kong and Yantian. It will leave for Algeciras in Spain on December 3 before calling at the Port of Rotterdam in the Netherlands four days later. It is scheduled to reach Port of Bremerhaven in Germany on December 9. The new vessel is one of the world's biggest container ships, measuring 365m long and 51.2m wide with a draft of 15.5m. "This new vessel is more efficient in its propulsion and hydrodynamics because it is equipped with a pre-swirl stator and twisted leading-edge rubber that cuts back on fuel consumption and greenhouse gas emissions by 2-4 per cent," said Nicolas Sartini, CMA CGM Group senior vice-president Asia/Europe Lines in a statement. The vessel also incoporates a "Fast Oil Recovery System", which enables bunkers to be rapidly recovered at any time therefore limiting adverse environmental impact should there be an accident at sea.


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