Blog Archives

Standard & Poor’s Downgrade; Asian Stocks Slip

January 16, 2012
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Standard & Poor’s recently downgraded nine European countries, including France. The ratings imply that a solution to the issues in the region has yet to be found as the Eurozone debt crisis festers. Though the downgrades were expected by many, the situation remains shaky as concerns begin to spread. “The downgrade set a nervous for this week’s markets as we approach more significant hurdles in the evolution of the Eurozone crisis,” said Ric Spooner of CMC Markets. Asian stocks...

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Firms Lured by East Java’s Infrastructure

January 9, 2012
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East Java has been attracting investments as a result of its good infrastructure. The country’s economy grew more than 7% in last year’s third quarter, with two commercial and four pioneer airports. Now, ten Korean and Japanese companies are relocating their plants from Southeast Asia to East Java, pulled in by the quality of its infrastructure. The firms deal in labor-based industries including furniture, footwear, industrial waste management and fertilizer. Chairman of East Java’s Investment Coordinating Board (BKPMD) Warno...

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Ford India Invests Millions to Manufacture Compact SUV ‘EcoSport’

January 5, 2012
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Michael Boneham, Ford India President and Managing Director, announced that the automotive company is to invest $142 million in its Chennai plant in India. The investment will go towards manufacturing Ford’s new compact SUV, called ‘EcoSport’. The company is setting up an additional, $1 billion investment into a new plant in Sanand, Gujarat. Ford India’s new vehicle will be launched in the market later this year, making its debut in India and then expanding to 100 markets across the...

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Blackstone Sees China as Investment Hotspot for 2012

January 2, 2012
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The Asia-Pacific leader of Blackstone Group L.P. recently announced that the firm views China and Southeast Asia as the top two hot spots for Asian investments next year. “Certainly China will remain a core focus for us. We are long-term very bullish about China,’ said Michael Chae. “Southeast Asia, and Indonesia in particular, we also think it quite interesting.” He went on the add that Asia is still strongly tied with the West, and that volatility in both global...

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Asia Headed Towards Becoming Largest Corporate Market by 2015

December 29, 2011
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Global consulting firm McKinsey & Co released a report stating that global corporate and investment banks will get almost 50% of their revenues (around $799 billion) from Asia by 2015. The leading countries will be China and India. In 2010, the revenues originating in Asia constituted nearly 33%, or $442 billion. The report, entitled ‘Asia: The Future of Corporate and Investment Banking’, stated: “The surprisingly strong economic health of Asian economies in 2010 saw the risk-adjusted corporate and investment...

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East Asian Giants Strengthen Financial Ties

December 26, 2011
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Japanese Prime Minister Yoshihiko Noda recently visited Beijing to meet with China’s leaders. The two governments revealed a surprising plan to use their own currencies in bilateral trade, instead of in U.S. dollars, as part of an effort to strengthen financial ties between the two economic giants. The pledges came as a shock; the countries are competitively the second and third largest economies in the world. They also struggle with political issues regarding territory and other disagreements. The East...

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Yahoo In Talks to Sell Asian Shares

December 22, 2011
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Yahoo, a major U.S.-based internet company, may sell a significant amount of its Asian investments. According to inside sources, the plan can put $17 billion on the holdings, putting the value of the Asian stakes at more than the entire company’s worth as of September. The transaction will be discussed at a board meeting later today, as part of an intensive review of the company following the departure of former chief executive Carol Bartz. One source, who is directly...

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North Korean’s Kim Jong Il’s Death Sends Asian Stocks Tumbling

December 19, 2011
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The shocking death of North Korea’s leader has sent Asian stocks tumbling, deepening concerns regarding the financial market. Kim Jong Il’s death was announced last night in Pyongyang, the North Korean capital. Stability in the region has been compromised, and the reclusive regime will now undergo a major change in leadership. South Korea’s Kospi index initially fell 4.1%, but later regained to trade 3.1% at 1,782.50. The won also slid 1.6% against the dollar. Aside from that common safe...

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Citigroup Plans to Hire More Staff and Boost Trade Finance Services in Asia

December 15, 2011
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Anthony Nappi, head of global transaction services at Citigroup, said the bank is now looking to increase its staff and boost its trade finance service business in Asia. “Trade finance is a key area for us- we are going to hire more trade transactors because a business perspective trade has been the outstanding performer for us,” he told Dow Jones Newswires. “My own personal aspiration,” he said, “is to double the size of the business every three to five...

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Trade Financing in Asia

December 12, 2011
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The Asian Development Bank is expecting a sudden increase in demand for trade financing as European banks limit their lending in the face of the ongoing crisis. “The trade-finance program is filling persistent market gaps, but it will become even more important,” said Steve beck of ADB. “With some major European banks retrenching from the trade-finance business, we see that the gaps are increasing.” Beck predicts even more growth in the operation, which is already worth $3 billion. A...

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