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    China tells banks to limit loans to local governments; support stock in Shanghai

    China’s banking regulator has told commercial lenders to restrict new credit they provide to local governments’ financing vehicles, to ward off potential risks of default, state media reports. The move is part of broader efforts to check explosive lending growth that has set off concerns about asset price bubbles and the potential creation of a fresh crop of bad loans. The China Banking Regulatory Commission (CBRC) ordered banks to inspect their existing loans to commercial units used by local governments to raise funds, and to stop lending to those projects that are backed only by expected fiscal revenues, the state-run Shanghai Securiti...
    On January 8, 2012 / By
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    Smartphones help Samsung to record sales

    Samsung Electronics, the world’s biggest consumer electronics group by sales, on Friday reported all-time-high quarterly profits for the October to December period despite the slowing global economy.   The South Korean group assessed its operating profit at approximately Won5.2trn or $4.5bn, the company said in a statement.   Up 73 percent, profits were mainly boosted by the company’s record smartphone sales and the once-off gains from the sale of its hard disk drive business to Seagate Technology.   The group said operating profit may be Won200bn higher or lower than Friday’s preliminary estimate when audited results are announced l...
    On January 6, 2012 / By
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    Three Swiss bankers accused of $1.2bn tax conspiracy

    US prosecutors late on Tuesday charged three Swiss bankers with conspiring to help US citizens evade over $1.2bn in assets from the IRS. The filed indictment, which refers to ‘Swiss Bank A’ only, shows that Roger Keller, Urs Frei and Michael Berlika plotted to open and service several secret accounts for US clients as they tried to escape from banks including UBS after the lenders began to be investigated by the IRS in 2008 and 2009. The Department of Justice said fake accounts were set up in jurisdictions including Hong Kong, Panama and Liechtenstein. The indictment comes in the midst of Swiss -US talks that attempt to resolve a US probe...
    On January 5, 2012 / By
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    China’s land sale revenue slumps 13 percent

    Land sale revenue across 130 Chinese cities has dropped 13 percent year-on-year in 2011 to ¥1.86trn, said property research group China Index Academy late on Wednesday. In contrast, countrywide land sales revenue in 2010 amounted to ¥2.9trn, said the Ministry of Finance. China’s government had hoped that curbing soaring real estate prices would create more house sales but uncertain house prices have scared away new home buyers. In December year-on-year sales dropped by 30 percent, China Vanke, the nation’s biggest developer by revenue said. Over 2011 three times as many land auctions, 900 in total, failed last year, according to the lat...
    On January 5, 2012 / By
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    Miners boost FTSE as China data buoys demand outlook

    Miners led Britain’s FTSE 100 higher early on Tuesday, boosted by stronger-than-expected manufacturing data from China, and as the index caught up with sharp gains posted in Europe in the previous session. London’s blue chip index was up 67.67 points or 1.2 percent at 5,639.95 by 0903 GMT on the first trading day since the new year holiday break. “Following on from a solid performance across Europe yesterday, investors piled in and trading screens quickly turned blue,” Manoj Ladwa, senior trader at ETX Capital, said. “Traders will be looking for the positive momentum to continue as January usually serves as a barometer for the rest ...
    On January 3, 2012 / By
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    Afren oil explorer says output ahead of target

    Energy exploration firm Afren said production at its Ebok field, offshore Nigeria, had reached around 40,000 barrels per day (bpd), taking its end-2011 net output to some 55,400 barrels of oil equivalent per day (boepd), ahead of target. An output rate above the year-end goal of 50,000 boepd has been sustained since December 19, it said, as a result of operations in Ivory Coast as well as Ebok and Okoro in Nigeria. “The group is in a strong position with aggregate net working interest production of 55,400 boepd going into 2012,” Osman Shahenshah, chief executive of Afren, said in a statement on Monday. He added the company’s forthcoming...
    On January 2, 2012 / By
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    Premier Wen Jiabao addresses China’s yaun

    When Premier Wen Jiabao addresses China’s largely ceremonial parliament, investors will prick up their ears for any hint that change is coming to the country’s currency regime. Wen, who swore there would be no more surprises, after Beijing revalued the yuan by 2.1 percent in 2005, will err on the side of caution in choosing his words. But any emphasis on enhancing exchange rate flexibility rather than maintaining stability will fuel speculation that China may be about to let the yuan rise again after effectively re-pegging it to the dollar since mid-2008. Some economists reckon that Beijing might have a one-off revaluation up its sleeve. ...
    On December 30, 2011 / By
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    DoJ approval for Deutsche Börse-NYSE merger

    The US Department of Justice has approved a $9bn merger between the NYSE Euronext and Deutsche Börse contingent on divestitures. For the deal to be fully permitted by the DOJ, Deutsche Börse will need to divest its 31.5 percent interest in stock exchange operator Direct Edge. It is also still awaiting the approval by the European Union. Deutsche Börse agreed to acquire NYSE Euronext in February, which will create the world’s biggest stock exchange operator....
    On December 23, 2011 / By
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    IAG trumps Virgin to €206.8m BMI deal

    The owner of British Airways, International Consolidated Airlines, on Thursday beat competitor Virgin Atlantic in the takeover battle for BMI, Deutsche Lufthansa’s loss-making airline. IAG agreed to buy BMI for €206.8m in cash, but may end up paying less if Lufthansa fails to sell its small regional subsidiaries before the completion date.  CEO of IAG, Willie Walsh, said: “Buying BMI’s mainline business gives IAG a unique opportunity to grow at Heathrow, one of our key hub airports.” Walsh added there will be job cuts in an effort to stem losses at BMI. Reports suggest the sale will be completed in the first three months of 2012. ...
    On December 22, 2011 / By
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    Japan’s Naoto Kan intervenes to weaken yen

    Japan has sold the yen in the market for the first time in six years, trying to stop the currency’s relentless climb from hurting exporters and threatening a fragile economic recovery. Fresh after a victory in party leadership contest, Japan’s Prime Minister Naoto Kan appeared to be stepping up efforts to wrench the country out of deflation by targeting yen strength, which has weighed on stock prices and corporate profits. Estimates vary on how much Japan has spent so far in its first intervention in the foreign exchange market since spending 35 trillion yen in 2003-2004. Dealers talk about 300-500 billion yen ($3.61-6.02bn) though some r...
    On December 22, 2011 / By