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philippines

Philippines' Gov May Offer $750 Million Bonds


The Philippines plans to sell up to $750 million of dollar bonds to plug a record budget deficit, its second overseas debt issuance this year. The government hired Citigroup Inc., Credit Suisse Group AG and Deutsche Bank AG to arrange the sale and the securities due January 2020 will be priced today in New York, according to an e-mail sent to investors. The bond will be priced to yield about 6.625 percent, according to people familiar with the sale, who asked not to be identified. The government is turning to global investors for funds after falling tax revenue and rising economic stimulus spending forced it to revise the budget deficit target three times this year. Emerging-market bond funds have recorded 13 consecutive weeks of net inflows as the world credit crisis eased, according to Cambridge, Massachusetts-based research firm EPFR Global.

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china

China and the U.S Prepare to Discuss Global Warming


According to David Sandalow, assistant secretary of energy for policy and international affairs policy, the two countries know they have "much to gain by partnering to develop clean energy technologies that will power our economy by cutting carbon emissions," since both are the largest greenhouse gas emitters. As reported by Reuters, "The two countries have tremendous trade opportunities in areas such as wind power, energy efficiency, clean coal and modernizing the electric grid, but U.S. companies face high tariffs on some exports," said Travis Sullivan, policy director for Commerce Department. In addition, U.S companies are worried about Chinese policies that favor domestic companies, which threaten American products. In turn, China is concerned about "U.S export controls that restrict sales of some high-technology goods." Currently, "China is resisting setting a hard cap on greenhouse gas emissions that many believe is necessary for the U.S. Senate to approve any climate treaty." "We think China needs to make a significant commitment ... in order to address the climate problem," Sandalow said.

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allcountries

The G-8 Confronted by Developing Countries


President Barack Obama agreed - "For us to think we can somehow deal with some of these global challenges in the absence of major powers like China, India and Brazil seems to me wrongheaded." "What relevance does the G-8 have to set the agenda on anything for the world anymore?" Goldman Sachs Group Inc.'s London-based chief economist Jim O'Neill said in a Bloomberg Television interview today. The Group of Eight represents 880 million people with a GDP of $32 trillion. The meeting ended with a vow to spend $20 billion over the next three years to aggrandize food production in the developing world and cutting malnourishment from the shocking 1 billion. The G-5 addressed the greenhouse-gas emissions: its goal is to cut emissions by 50 percent by 2050. They agreed that immediate action would quell the economic growth that is currently needed. They will reassess the issue in December 2009. The diversified international currency reserve issue was not issued thoroughly, with German Chancellor Angela Merkel saying it was "of no practical relevance." Brazilian and Russian officials said it may come up again at the wider G-20 forum in Pittsburgh in September.

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india

Indian Gov Stimulus helped Revive Industrial Production in 2.7%


India's industrial production increased at the fastest pace in eight months as record-low interest rates and government stimulus measures helped revive demand and investment. Output at factories, utilities and mines jumped 2.7 percent in May from a year earlier after a revised 1.2 percent gain in April, the statistics agency said in New Delhi today. That was more than double the 1.3 percent increase expected by economists. Economies across Asia are starting to show signs of recovery from the worst global recession since the Great Depression, prompting policy makers to stop lowering interest rates. The World Bank last month said India may overtake China next year as the world's fastest-growing major economy.

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taiwan

KGI Securities To Acquire Taishin Financial Holding Co.


KGI Securities Co. plans to raise NT$10 billion ($302 million) selling shares overseas to help finance an acquisition that will make it Taiwan's second-biggest brokerage firm. The company will use the money to help fund the plan it announced in May to acquire the brokerage operations of Taishin Financial Holdings Co., KGI spokeswoman Janet Sheng said in an interview in Taipei. Taiwan's benchmark Taiex Index has gained 45 percent this year, prompting companies to tap the equity markets to boost capital and finance acquisitions. Local companies sold $6.4 billion of shares to domestic and overseas investors in the first six months, compared with $9.2 billion in the year-earlier period. KGI will likely complete the sale, in the form of global depository receipts, before the end of September, a person familiar with the matter said, speaking on condition of anonymity. The firm hired Morgan Stanley to arrange the offering. Sheng declined to comment on the timing of the sale. On June 19, KGI said the board had approved plans to sell between 670 million and 800 million GDRs to fund the Taishin purchase and for working capital. The company didn't say how much it expected to raise.

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china

China's Car Sales Increased 48%


Much of the credit is being given to the government's stimulus spending from a $585 billion (4 trillion yuan). The two quarter sales jumped 18 percent to 6.1 million after the government slashed some retail taxes and offered vehicle subsidies in rural areas to encourage demand and help the auto market. According to an analyst at First Capital Securities Co., Wang Qingtao, "China's downward slide is clearly over. There is also a huge natural demand for vehicles, which will continue to drive the industry for years to come." Stocks for SAIC motor Corp., China's biggest automaker have more than tripled this year. Stocks for Dongfeng Motor Group Co., the largest Hong Kong automaker have more than doubled this year alone. Increasing auto sales add to the evidence that China's economy is recuperating from a slowdown in the beginning of 2009.

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china

China Pressures for International Reserve Currency


Chinese authorities have repeatedly called for a new global monetary order that depends less on the U.S. dollar. In March, for instance, Chinese Premier Wen Jiabao expressed concern about the value of China's large holdings of U.S. assets and demanded that the U.S. government take measures to guarantee its "good credit." Also in March, just before the London G-20 Summit, the People's Bank of China (PBOC), published a paper by Zhou Xiaochuan, the PBOC governor, on its Web site in which he asked for a new "super-sovereign" international reserve currency "that is disconnected from individual nations" to secure global financial stability and facilitate world economic growth. He proposed that a more prominent role should be given to Special Drawing Rights (SDRs), a basket of currencies used by the International Monetary Fund (IMF) as a unit of account, suggesting that SDRs could replace the dollar as main reserve currency in the medium term.

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philippines

Inflation in Philippines Plunged in June


June's rate of inflation is significantly different from June of 2008's 11.4 percent inflation. It links back to a plunge in energy prices, according to official figures. In the summer of 2008, the price of crude oil reached more than $140 a barrel, but this summer it is trading at about $65. The country's central bank forecast that inflation will fall to about 1 percent by the third quarter before picking up again in the fourth quarter.

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australia

Australia's Central Bank Kept Interest Rates Unchanged


Australia's central bank kept interest rates unchanged for a third month amid signs the lowest borrowing costs in half a century and government spending are helping the economy skirt the global recession. There is still "some scope for further easing of monetary policy, if needed'" said Stevens, who slashed borrowing costs by a record 4.25 percentage points in six moves between September and April. "Economic conditions in Australia have to date not been as weak as expected a few months ago," he added. The Australian dollar rose to 79.86 U.S. cents at 3:16 p.m. in Sydney from 79.67 cents just before the decision was released. The two-year government bond yield fell 1 basis point to 3.81 percent. A basis point is 0.01 percentage point.

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south_korea

South Korea's Go-Green Initiatives Might Improve Employment & Growth


Figures show that up to 1.8 million jobs may be created with the development of solar power. It is estimated that by 2010, the country will spend about 2 percent of its GDP annually to "reduce carbon emissions and diversify its exports," said Youk Hyun Soo, an official on the presidential committee for renewable energy. "South Korea is joining the U.S. and China in increasing public spending on the industry to achieve economic growth and energy-saving at the same time," said Hwang Chang Joong, the head of investment strategy at Woori Investment Securities Co. The government spending will include investments in luminescent diodes, used to make energy-saving flat-screen panels and lighting bulbs and solar-powered batteries, according to today's statement.

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india

India to Borrow $ 93 billion to Fund Buget


Prime Minister Manmohan Singh's government is spending more to speed up economic growth and reduce poverty in a nation where malnutrition is worse than Sub-Saharan Africa. Stocks and the currency weakened on investor disappointment that Mukherjee didn't announce major asset sales and concerns a ballooning budget deficit may lead to a credit-rating cut. "The budget has failed to instill confidence as to how the government will achieve fiscal consolidation," said Rupa Rege Nitsure, chief economist at state-owned Bank of Baroda in Mumbai. "With this kind of a deficit, there is a possibility that India's rating may be downgraded." The Bombay Stock Exchange's Sensitive Index fell the most in six months, declining 5.8 percent to 14,043.40 at the 3:30 p.m. close in Mumbai. The rupee weakened 1.3 percent, the most in almost six weeks, to 48.5375 against the dollar. The yield on the most-traded 6.07 percent note due May 2014 surged 22 basis points, the most since March 17, to 6.45 percent.

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allcountries

Asia Creates another "Silk Route"


The "corridor," which is an upgraded highway with the transit agreements in place, goes from Danang, Vietnam, Savannakhet, Laos and Thailand, and recently included Burma and Cambodia. Now, "modern highways [carry] goods, exotic fruits and tourists," said Arjun Thapan, director general of Asian Development Bank, who has been the primer mover behind the corridor idea. The corridor is so efficient that he assures, "You can now set out from Thailand, do business in Laos, and arrive in time for dinner at Danang in Vietnam - all in the space of a single day." In the future, the goal is to connect the Trans-Asia Railway to Singapore, Malaysia, Thailand, Vietnam, Cambodia, Laos China, and maybe even Europe.

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