Wall Street News

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Stock markets and oil prices in Asia recently saw an increase, indicating the demand for the latter could be improving.  As well, makers of electronics increased between 0.9 and 2.8 percent in Tokyo.  IN Hong Kong the Hang Seng index rose 0.4 percent but South Korea’s Kospi index was “nearly flat.”  While Australia’s S&P/ASX200 slightly increased, BHP Billiton Ltd. Saw a hit of 1.8 percent which was a marked difference from the company’s claim of over 70 percent net profit increase from last July to December.  The Dow Jones industrial average encountered its second straight day of losses on Tuesday with the Dow falling 0.3 percent.  Nasdaq fell 0.5 percent as did Standard & Poor’s 500 index which dropped 0.3 percent.  On the New York Mercantile Exchange delivery increased 35 cents a barrel in electronic trading.
 

TAITRA News

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The upcoming 2011 Renewable Energy Exhibition (Lyon, France), will be privy to the latest green products’ catalogs from Taiwan as well as a demonstration of Taiwantrade.  Taiwantrade is a powerful B2B website, developed by the Taiwan External Trade Development Council (TAITRA) and e-sourcing platform providing clients with tons of information on current trade events, industries news and more. It assists Taiwanese companies with all sorts of developments and is a quality product at a reasonable price.  In terms of its green products, this is not new to a country rated number four in the world of solar modules manufacturing and solar cells.  As well it was rated number 6 in the world for green-energy technology and number two in Asia as an eco-solutions developer.
Also at the exhibition, there will be an attempt to develop cohesion in business with French and European companies while educating on the 50 Taiwanese green suppliers.  TAITRA “will be providing the most comprehensive sourcing services.”
 

Korea Loses Out as Egyptian Unrest Continues

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KoreaThere are many sorts of uncertainties with the current unrest in Egypt and although many look upon the Egyptian regime as a brutal dictatorship, Korea has a successful trade relationship with Egypt to worry about. One company, Samsung has increasingly been recognized as a leader as a technology brand in Egypt. “Nokia is considered a low-end mobile phone brand in Egypt while the Samsung mobile phone is praised as a high-quality product,” said Chung Boa, 31, who has lived in Egypt for seven years.

The Korea International Trade Association reported bilateral trade last year between the two countries to be $2.8 billion. Korean exports we estimated to be $1.5 billion and imports from Egypt $1.3 billion.

“Compared to the first time I came here, Korea’s presence has grown exceptionally. There are major Korean conglomerates such as Hyundai and Samsung that are operating in Egypt.” Mr. Boa added.

Yet we spoke with Mr. Boa just before the current unrest in Egypt and with the current uprising in Egypt intensifying the 36 Korean companies in Egypt are under increasing trouble. Samsung Electronics has frozen its mobile phone sales there and LG Electronics decided to suspend its local factory operation albeit temporarily.

Since the beginning of what has become known as the January 25th Revolution, incidents of looting and arson have increased. In response all of Samsung’s local sales agencies have fled Egypt. Its major mobile phone clients are not doing their business, either. Under the circumstances, Samsung has decided to halt its marketing and promotion there altogether.

Egypt is ranked the fourth-largest export destination in the Middle East for Korean based companies after the United Arab Emirates, Iran and Saudi Arabia. Korean exports in 2010 of auto parts, synthetic resins, construction machinery, transformers, tires, storage batteries, and medicine to Egypt totalled US$2.24 billion.

South Korean Economics

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If stock prices plummet and interest rates increase, South Korean households will suffer.  The Samsung Economic Research Institute (SERI)’s recent report showed a huge increase in individual debts, following the global financial crisis and a peak in loans.  But loans are not the answer since they are often based on the “floating interest rate system rather than fixed rates, which means debt levels rise when there is an increase in interest rates.” 


Figures show that South Koreans’ debts have basically increased at a steady pace in the last two years.  The government’s plan to help (debt-to-debt income ratio) is not a “proper” solution, according to the SERI report, which found that “the strict loan regulations should be regarded as part of policies to boost financial soundness of banks.”  While there has been a cap on this loan, in 2010 the government decided to raise this in an attempt to “revive the sluggish market.”  But because of the bullish stock market, assets and incomes are on the rise which has resulted in “an immediate household debt crisis.”


The report also predicted that if there is a 2% increase in interest rates, there will be an increase from 11.7 trillion to 16.1 trillion per quarter.  An increase in household debts will have to inevitably result in less spending money and thus a severe dent in the region’s economic growth.

 


 

Future of NTU

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NANYANG Technological University (NTU) is to become a “Univer-City with a soul,” meaning that the University itself will basically be an entire city.  This is expected to happen within the next 14 years.

Basically the Yunnan Garden Campus Master Plan is set to be so large that it will ultimately comprise “numerous informal meeting points dotting its green landscape to encourage cross-faculty and industry interaction.”  Since there are so many overlaps between disciplines, the encouragement of inter-disciplinary cohesion is crucial for general advancement.

At the pinnacle of this cohesion will be the Campus Centre – NTU’s focal point.  It will comprise shops, eateries, a cinema – everything that together makes up a city, resembling Holland Village.

Oil Falls to $89 a Barrel in Asia

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Traders in Asia witnessed a drop in oil prices to below $89 a barrel on Monday.  Commodity trading advisors seemed to be juggling various issues in connection oil.  Some of their concerns were mixed signals USA’s jobs market, world economic growth in general and of course crude demand.

Benchmark crude set to be delivered in March was down at Singapore time on Friday 23 cents at $88.80 a barrel by on the New York Mercantile Exchange. The contract finished at $89.03 on Friday after losing $1.51.

Many pundits believe the easing of the turmoil in Egypt is softening oil’s rise, yet as the Middle East remains volatile. prices are expected to fluctuate.

Getting the Best of Both Worlds: China and Israel Join Hands

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China-Israel InvestmentsSince China has the cash and Israel has the techno-know-how, Shanghai-born investor Jay Young saw an opportunity. She began seeking out high-tech opportunities in Israel for Chinese investors to make everyone a winner. Educated in China and the West, Young has worked extensively in the fields of pension funds and investing in the Chinese government market. She is now moving into the Israeli economy.

Young is helping those Chinese high net worth individuals (the country today ranks number four in the world) make some great Israeli investments. Israelis don’t have to worry about the Chinese stealing their ideas though; they simply want to jump on the bandwagon from investing with them. The Chinese simply don’t want to waste the time and resources it takes to constantly update and develop technology, especially if Israelis are already doing it so well. In this way, Young has hit the nail on the head; Israel can continue working on R&D without worrying about the finances while China can sit back and give it the necessary funds, ensuring a generous outcome for both partners.

Areas where the two countries are joining forces today are renewable energy (water purification and desert farming) and advancements in production technology, health and education.

Smith Electric Vehicles Close to Hong Kong Deal

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Smith Electric Vehicles owned by Tanfield Group is believed to be in advanced discussions with the Hong Kong government to provide the municipality with electric minibuses. It is known that Hong Kong has been actively pursuing electric vehicles for the city’s fleet.

Hong Kong suffers from intense air quality issues, so it is hoped that the mini-buses from Smith Electric Vehicles (if the deal goes through), will help to increase the air quality in the city. This latest deal comes after a series of previous deals between Smith Electric Vehicles and the Hong Kong Government, where the city bought 15 Smith all-electric vehicles in the past 18 months.

Smith Electric Vehicles has recently merged with its US partner on January 1 in a £9.74m deal.

The Smith Electric Vehicles division was bought by its US partner Smith Electric Vehicles US, which is represented by the investment bank in which the North-East firm held a 49 per cent stake. The Smith Electric Vehicles US named Wynston Hill Captial as its lead investment banker last year.  Corey Singman and Bruce Shalett are the Investment Bankers for Wynston Hill Capital in connection to Smith Electric Vehicles US.  The deal has still allowed Tanfield to hold the same percentage within the new, enlarged company.

Maruti Suzuki Sales Increase 14.74 percent at 109,743 Units

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India’s automobile major Maruti Suzuki, the Indian  clocked a 14.74 percent rise in its sales that measured at 109,743 vehicles in January as opposed to 95,649 units during the like period of 2010.

9,321 units of these sales are exports, Maruti Suzuki said in a statement.

Maruti Suzuki’s A2 compact cars such as Alto, Wagon-R, Estilo, Swift, A-Star and Ritz witnessed a rise in sales of 23.8  percent equalling 72,479 cars as opposed to the same period in 2010 that witnessed the selling of 58,540 units.

The A3 sedan type cars also witnessed parallel trends in growth. These cars include the SX4 and Dzire which rose 32.6 percent. These cars’ sales equalled 11,930 unitsopposed to 8,995 units in December 2010.

Singapore’s Budget Stretches Its Wings

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Tharman ShanmugaratnamSingapore’s Finance Minister Tharman Shanmugaratnam assured that his country’s soon to be released budget has “something good for Singapore.” As of yesterday he insisted that the budget “is likely to benefit more than just low-income groups.”

Shanmugaratnam made it clear that Singapore’s government is “not just focused on one group of Singaporeans.” He insisted that the government aims to include all sectors in Singapore into consideration when it deliberates its annual budgets.

Pointing out “that inflation has risen across the region, most obviously in China, India and Indonesia,” he insisted that Singapore’s inflation has been slower to rise because of its strong currency ratings.

Tharman Shanmugaratnam added: “It’s uncomfortable for many people and we know that, and we’ll make sure we help families where we can.”