11-07-2008
13 Foreign Airlines Pull Out of Korea
By Kim Hyun-cheol
Staff Reporter
The cold spell hitting the global economy is also bringing chills to the airline industry, as with financial pressure intensifying, foreign carriers have begun suspending flights to Korea, government officials said Friday.
Since the last week of October, when winter schedules began for most airlines, a total of 13 foreign companies have not requested the renewal of services on their routes, said an official of the Ministry of Land, Transport and Maritime Affairs (MLTMA). Seven, however, have opened new routes.
The official said both cargo and passenger volume from other countries started to lag behind that of the previous year from June.
Atlas Air, a leading U.S. cargo carrier, and American carrier Kalitta Air, no longer offer services, while two Russian airlines, Russian Sky and Khabarovsk Airlines, have pulled their Korean routes. Three Taiwanese-based companies, including the bankrupt Far Eastern Air Transport, are also no longer servicing Korean routes. Mandarin Airlines of Taiwan, however, is planning to resume flights next month.
On the positive side, Japanese and Chinese airlines are augmenting flights for tourists who are taking advantage of the weaker won.
Chinese-based Great Wall Airlines and China Cargo Airlines started services between the two countries.
Japan Airlines arranged 443 flights in total for its winter timetable, up 21 from last year. JP Express, a Tokyo-based cargo airline, also launched new flights starting this month.
The load factor (passenger occupancy rates) from Japan has gone up 10 percent since last month, as the Japanese yen has jumped nearly 40 percent against the won. The number of Japanese visitors surpassed 200,000 in September, up 4.8 percent year-on-year.
With many carriers rearranging their routes because of falling demand for cargo, a rebound in inbound flights is not likely to happen soon, industry watchers said.
Meanwhile, the ministry was cautious to link the downturn trend directly to the current economic slump.
``Some flight withdrawals are normal for this time of year, a relatively slack season for tourism,'' said Park Jeong-gon, an assistant director of international air transport at the MLTMA.
Currently, 61 overseas carriers from 27 countries are using Korean airports.
hckim@koreatimes.co.kr
Commentary: If Chinese and Japanese tourists can be drawn as export income due to a weaker won than the hypothetical argument may also be made that a weak won is good for Korean exports overall. For regional buyers looking for value priced goods demand might increase enough to meet Government export goals for 2009?
Canadian SME International Trade and Marketing - writings upon readings and continued curiousity in the realms of cross cultural business. Some of my opinions are not my own, but I would fancy to say nearly all of them should be credited to the various authors. Deming disciple. I stubbornly persist.
Saturday, November 08, 2008
Friday, November 07, 2008
Shipments of food, energy are slowing
Shipments of food, energy are slowing
By SAMANTHA BOMKAMP
NEW YORK — The growing financial crisis is constraining world trade with a jumbled mess of frozen credit that could mean shortages of food and energy supplies for some countries.
Shippers of dry bulk goods such as grain and coal worry that importers won’t be able to pay for the goods they receive. And while some anxious exporters hold on to their goods, rates to ship those goods have plummeted to 10-year lows. Some ship owners are even laying up their ships rather than operate at such low rates.
Jefferies & Co. analyst Douglas Mavrinac said while credit markets in general have stabilized somewhat in recent weeks, credit across the shipping industry still remains extremely tight. Some companies that buy goods transported by dry bulk ships — including power plants, steel producers and food makers — are not able to secure letters of credit to facilitate shipments of coal, iron ore and grain they need.
Mavrinac said most markets around the world will work through stockpiles of commodities on hand, including coal and grain. But he said food and energy shortages could be a problem next year, especially in developing countries, if lending does not ramp up and shipping activity continues to stagnate.
“It will take a few months, it’s definitely the worst-case scenario.” Mavrinac said. “Right now there are plenty of ships, but no cargoes.”
Rates for the biggest ships on the seas have plunged to an average of just $5,611 per day, compared with $166,377 a year ago. Some companies, however, have secured charter deals with customers that locked in higher rates.
“That doesn’t imply that global demand is slowing,” Mavrinac said. “It implies that global trade is stalling — ships are idling.”
Bill Gary, president of Oklahoma City-based Commodity Information Systems, noted that with the U.S. harvest season under way, supplies are surging and crops, such as grain, might sit in limbo if tight credit markets continue to prevent the free flow of exports.
As prices for their crops fall, he explained, farmers hold on to more of their crops as they wait for better prices as inventories decline.
Midwestern farmers appear to be confident they can get higher prices if they just keep their grain off the market long enough, said Rod Weinzierl, executive director of the Illinois Corn Growers Association. Farmers paid historically high prices for fertilizer and fuel to grow this year’s crop, and are not eager to sell at a loss.
Weinzierl, who farms 500 acres of corn and soybeans near Stanford, Ill., said local grain elevators are not full yet, so farmers are using up the storage capacity to wait out low prices.
“Right now, there is nothing really forcing farmers to sell, and at these prices they’re not going to,” he said. “The price is actually below production costs.”
Gary said even though the credit markets have eased up a bit, commodity shipments have slowed further as freight rates for drybulk ships continue to plunge.
“Things have gotten worse over the past couple of weeks,” he said. “Last week was probably the worst that we’ve seen.”
Gary noted that shipments of corn, grain and wheat have stalled as receivers of U.S. commodities still don’t trust letters of credit from many banks, if they can be secured at all.
U.S. corn “commitments,” which include corn already shipped and outstanding sales, have tumbled 40 percent from a year ago. Wheat commitments are down 29 percent.
If the credit markets do not right themselves soon, he said, grain exports could dwindle to some smaller Asian countries. Exports to Europe might also weaken if credit does not begin to flow more easily in the next month, he said.
But Gary Martin, president of the North American Grain Export Association, says the possibility of a global food shortage is overblown. The trade group represents public and private grain exporters, including Cargill Inc. and Archer Daniels Midland Co., as well as some farmer-owned cooperatives. A spokesman for ADM declined to comment, and representatives for Cargill deferred comment to NAGEA.
Martin said that while supplies are mounting in the United States as worldwide demand slows, any shipping delays are likely to be on an individual basis, and that credit issues are not a widespread problem for food transfers around the globe.
He noted that the United States has systems in place to prevent major disruptions in the supply chain — such as the USDA’s GSM-102 program, which guarantees credit for commercial financing of U.S. agricultural exports.
Commentary: Friends and students have been mentioning this new development for a few weeks now and this is the first article I have actually read in print. As a lot of my teaching hours are spent trying to explain international trade correspondance and the credit financing process it is a worrying decline in credit worthiness which could really impact Korean purchases abroad of raw materials and commodities essential to their export growth targets. It causes me to wonder if anyone beyond international trade students really understands the problem of stalled global trade due to banks suddenly scrutinizing every credit transaction with fine-toothed combs beyond the process itself to actual damage of business trading relationships. Such positional swings in terms of commodities; first the speculators starve the poor due to their profits and then the exporters starve their customers due to sudden fears over global credit worthiness when the prices tumble.
By SAMANTHA BOMKAMP
NEW YORK — The growing financial crisis is constraining world trade with a jumbled mess of frozen credit that could mean shortages of food and energy supplies for some countries.
Shippers of dry bulk goods such as grain and coal worry that importers won’t be able to pay for the goods they receive. And while some anxious exporters hold on to their goods, rates to ship those goods have plummeted to 10-year lows. Some ship owners are even laying up their ships rather than operate at such low rates.
Jefferies & Co. analyst Douglas Mavrinac said while credit markets in general have stabilized somewhat in recent weeks, credit across the shipping industry still remains extremely tight. Some companies that buy goods transported by dry bulk ships — including power plants, steel producers and food makers — are not able to secure letters of credit to facilitate shipments of coal, iron ore and grain they need.
Mavrinac said most markets around the world will work through stockpiles of commodities on hand, including coal and grain. But he said food and energy shortages could be a problem next year, especially in developing countries, if lending does not ramp up and shipping activity continues to stagnate.
“It will take a few months, it’s definitely the worst-case scenario.” Mavrinac said. “Right now there are plenty of ships, but no cargoes.”
Rates for the biggest ships on the seas have plunged to an average of just $5,611 per day, compared with $166,377 a year ago. Some companies, however, have secured charter deals with customers that locked in higher rates.
“That doesn’t imply that global demand is slowing,” Mavrinac said. “It implies that global trade is stalling — ships are idling.”
Bill Gary, president of Oklahoma City-based Commodity Information Systems, noted that with the U.S. harvest season under way, supplies are surging and crops, such as grain, might sit in limbo if tight credit markets continue to prevent the free flow of exports.
As prices for their crops fall, he explained, farmers hold on to more of their crops as they wait for better prices as inventories decline.
Midwestern farmers appear to be confident they can get higher prices if they just keep their grain off the market long enough, said Rod Weinzierl, executive director of the Illinois Corn Growers Association. Farmers paid historically high prices for fertilizer and fuel to grow this year’s crop, and are not eager to sell at a loss.
Weinzierl, who farms 500 acres of corn and soybeans near Stanford, Ill., said local grain elevators are not full yet, so farmers are using up the storage capacity to wait out low prices.
“Right now, there is nothing really forcing farmers to sell, and at these prices they’re not going to,” he said. “The price is actually below production costs.”
Gary said even though the credit markets have eased up a bit, commodity shipments have slowed further as freight rates for drybulk ships continue to plunge.
“Things have gotten worse over the past couple of weeks,” he said. “Last week was probably the worst that we’ve seen.”
Gary noted that shipments of corn, grain and wheat have stalled as receivers of U.S. commodities still don’t trust letters of credit from many banks, if they can be secured at all.
U.S. corn “commitments,” which include corn already shipped and outstanding sales, have tumbled 40 percent from a year ago. Wheat commitments are down 29 percent.
If the credit markets do not right themselves soon, he said, grain exports could dwindle to some smaller Asian countries. Exports to Europe might also weaken if credit does not begin to flow more easily in the next month, he said.
But Gary Martin, president of the North American Grain Export Association, says the possibility of a global food shortage is overblown. The trade group represents public and private grain exporters, including Cargill Inc. and Archer Daniels Midland Co., as well as some farmer-owned cooperatives. A spokesman for ADM declined to comment, and representatives for Cargill deferred comment to NAGEA.
Martin said that while supplies are mounting in the United States as worldwide demand slows, any shipping delays are likely to be on an individual basis, and that credit issues are not a widespread problem for food transfers around the globe.
He noted that the United States has systems in place to prevent major disruptions in the supply chain — such as the USDA’s GSM-102 program, which guarantees credit for commercial financing of U.S. agricultural exports.
Commentary: Friends and students have been mentioning this new development for a few weeks now and this is the first article I have actually read in print. As a lot of my teaching hours are spent trying to explain international trade correspondance and the credit financing process it is a worrying decline in credit worthiness which could really impact Korean purchases abroad of raw materials and commodities essential to their export growth targets. It causes me to wonder if anyone beyond international trade students really understands the problem of stalled global trade due to banks suddenly scrutinizing every credit transaction with fine-toothed combs beyond the process itself to actual damage of business trading relationships. Such positional swings in terms of commodities; first the speculators starve the poor due to their profits and then the exporters starve their customers due to sudden fears over global credit worthiness when the prices tumble.
South Korea foreign reserves plunge as crisis bites
South Korea foreign reserves plunge as crisis bites
By Seo Eun-kyung and Yoo Choonsik
SEOUL (Reuters) - South Korea spent a record amount of its foreign exchange reserves in October to protect the won from the financial crisis and said a $4 billion currency swap deal with neighboring China would likely be expanded.
As the crisis bites, President Lee Myung-bak on Tuesday urged swift completion of the an $11 billion economic stimulus package announced the previous day and told government ministers to focus on reviving Asia's fourth-largest economy.
The economy ministry vowed to boost next year's exports by 15 percent, almost double the pace predicted by private sector analysts, by expanding financial support to local exporters and exploring markets for industrial plants.
Seoul stock prices jumped more than 2 percent on investor hopes the government's economic package would help keep the economy on track, but the won wiped out Monday's gain as the local short-term dollar-funding situation tightened.
Analysts said foreign exchange reserves turned out to have fallen more than expected but South Korea has now passed the worst point in terms of the foreign-currency liquidity squeeze.
"Earlier worries about it were already overblown," said Lim Ji-won, an economist at JPMorgan Chase, adding the worst was likely over.
Central bank data released on Tuesday showed South Korea's foreign reserves fell a record $27.4 billion during October to $212.25 billion at the end of the month, marking a record seventh consecutive monthly drop.
The Bank of Korea said authorities injected at least $12.7 billion to ease a dollar shortage in the country's money markets, as the crisis dried up dollar credits available to emerging-market countries.
SWAP LINE WITH CHINA
Much of the dollar injection was made on swap deals, meaning the reserves would eventually return when the deals expire.
To head off concern about declining foreign reserves, South Korea tied up a $30 billion bilateral currency swap line with the U.S. Federal Reserve last week and is seeking to expand an existing deal with China.
Vice Finance Minister Kim Dong-soo told reporters the two neighbors, which together hold foreign reserves of more than $2 trillion, have agreed in principle on expanding the arrangement first established under a regional initiative in the aftermath of the Asian financial crisis a decade ago.
Yonhap news agency reported the Bank of Korea has been talking to the People's Bank of China on opening a separate $10-30 billion reciprocal swap line.
But the Bank of Korea said in a statement that while it has proposed the arrangement, there have been no detailed talks.
It did not specifically say whether its proposal was for a separate facility to the existing arrangement which is part of a regional pool.
Kim also said South Korea had no plans to tap the International Monetary Fund for support as the dollar liquidity crunch was not serious enough. He said it could ask for up to $22 billion in support from the IMF in case of an emergency.
Analysts said once South Korea's giddy markets find their footing, the government would next need to steady the real economy, which is heavily dependent on exports.
The economy ministry came up quickly with an ambitious goal of boosting next year's exports by 15 percent to $500 billion, above the market's consensus of around $485 billion, and turning the trade balance into a surplus in 2009.
(Editing by Jonathan Thatcher & Jan Dahinten)
Commentary: Korea spent nearly as much this month as it did in 1997 prior to seeking/receiving IMF loans agreements. Is President Lee Myung Bak's new 12 billion stimulus coming from more high-cost money markets short-term margin loans? Does ordering people to focus on the problem include mediating solutions? The analytical divide in terms of predicting market growth appears political. Should exporters be supported by better export services, fewer documentary/regulatory requirements, revamped and reoriented FDI investment incentives programs similar to those in Thailand? How is JPMorgan Chase performing in terms of its merged and bought-out competitors? Is the IMF being avoided due to its perhaps renewed, revised and better informed agreement terms which perhaps appear political anathema to Koreans at this time? Should the IMF table or promote its regulatory agenda publicly prior to provision of future loans to encourage Korean politicians to listen to their own economists or those at the IMF? Are talks with China challenging due to positional agendas in both nations and negotiation styles which display difficulties in offering or accepting mutually beneficial concessions? Are ambitious expectations of 2009 growth coming at the expense of flexibility in market planning and current modifications of contradictory evidence? Does the Korean Government seek to revise its growth forecasts downward at the end of December?
By Seo Eun-kyung and Yoo Choonsik
SEOUL (Reuters) - South Korea spent a record amount of its foreign exchange reserves in October to protect the won from the financial crisis and said a $4 billion currency swap deal with neighboring China would likely be expanded.
As the crisis bites, President Lee Myung-bak on Tuesday urged swift completion of the an $11 billion economic stimulus package announced the previous day and told government ministers to focus on reviving Asia's fourth-largest economy.
The economy ministry vowed to boost next year's exports by 15 percent, almost double the pace predicted by private sector analysts, by expanding financial support to local exporters and exploring markets for industrial plants.
Seoul stock prices jumped more than 2 percent on investor hopes the government's economic package would help keep the economy on track, but the won wiped out Monday's gain as the local short-term dollar-funding situation tightened.
Analysts said foreign exchange reserves turned out to have fallen more than expected but South Korea has now passed the worst point in terms of the foreign-currency liquidity squeeze.
"Earlier worries about it were already overblown," said Lim Ji-won, an economist at JPMorgan Chase, adding the worst was likely over.
Central bank data released on Tuesday showed South Korea's foreign reserves fell a record $27.4 billion during October to $212.25 billion at the end of the month, marking a record seventh consecutive monthly drop.
The Bank of Korea said authorities injected at least $12.7 billion to ease a dollar shortage in the country's money markets, as the crisis dried up dollar credits available to emerging-market countries.
SWAP LINE WITH CHINA
Much of the dollar injection was made on swap deals, meaning the reserves would eventually return when the deals expire.
To head off concern about declining foreign reserves, South Korea tied up a $30 billion bilateral currency swap line with the U.S. Federal Reserve last week and is seeking to expand an existing deal with China.
Vice Finance Minister Kim Dong-soo told reporters the two neighbors, which together hold foreign reserves of more than $2 trillion, have agreed in principle on expanding the arrangement first established under a regional initiative in the aftermath of the Asian financial crisis a decade ago.
Yonhap news agency reported the Bank of Korea has been talking to the People's Bank of China on opening a separate $10-30 billion reciprocal swap line.
But the Bank of Korea said in a statement that while it has proposed the arrangement, there have been no detailed talks.
It did not specifically say whether its proposal was for a separate facility to the existing arrangement which is part of a regional pool.
Kim also said South Korea had no plans to tap the International Monetary Fund for support as the dollar liquidity crunch was not serious enough. He said it could ask for up to $22 billion in support from the IMF in case of an emergency.
Analysts said once South Korea's giddy markets find their footing, the government would next need to steady the real economy, which is heavily dependent on exports.
The economy ministry came up quickly with an ambitious goal of boosting next year's exports by 15 percent to $500 billion, above the market's consensus of around $485 billion, and turning the trade balance into a surplus in 2009.
(Editing by Jonathan Thatcher & Jan Dahinten)
Commentary: Korea spent nearly as much this month as it did in 1997 prior to seeking/receiving IMF loans agreements. Is President Lee Myung Bak's new 12 billion stimulus coming from more high-cost money markets short-term margin loans? Does ordering people to focus on the problem include mediating solutions? The analytical divide in terms of predicting market growth appears political. Should exporters be supported by better export services, fewer documentary/regulatory requirements, revamped and reoriented FDI investment incentives programs similar to those in Thailand? How is JPMorgan Chase performing in terms of its merged and bought-out competitors? Is the IMF being avoided due to its perhaps renewed, revised and better informed agreement terms which perhaps appear political anathema to Koreans at this time? Should the IMF table or promote its regulatory agenda publicly prior to provision of future loans to encourage Korean politicians to listen to their own economists or those at the IMF? Are talks with China challenging due to positional agendas in both nations and negotiation styles which display difficulties in offering or accepting mutually beneficial concessions? Are ambitious expectations of 2009 growth coming at the expense of flexibility in market planning and current modifications of contradictory evidence? Does the Korean Government seek to revise its growth forecasts downward at the end of December?
Thursday, November 06, 2008
$500 Billion Export Goal Set for Next Year
$500 Billion Export Goal Set for Next Year
The government has announced an all-out offensive to boost exports. Officials in a trade promotion meeting on Tuesday decided next year’s export target of US$500 billion and vowed to achieve a trade surplus.
Knowledge Economy Minister Lee Youn-ho said the government will increase export insurance funds designed to protect exporters from payment defaults in developing countries by W40 trillion (US$1=W1,288) next year from the present W130 trillion to W170 trillion. The Korea Trade-Investment Promotion Agency will guarantee products made by small and mid-sized businesses under the logo “KOTRA Guaranteed Brand.”
To boost the export competitiveness of Korean-made hybrid cars to be marketed from July next year, the government will exempt owners from consumption tax as well as acquisition and registration tax. People who buy hybrid cars will also be exempt from government bonds required by all automobile purchasers. An official at the Knowledge Economy Ministry said the tax breaks will lower the price of a hybrid car, estimated to range between W24 million to W30 million, by as much as W3.1 million.
The government also decided to cut tariffs on imported equipment to manufacture IT products, while allowing consortiums between large and small businesses to hire people who are exempt from active military service. The scope of exemptions on income tax for workers dispatched overseas will rise from the present W1 million to W1.5 million.
It remains to be seen whether the government’s plans can be realistically implemented. Korea’s exports this year are estimated at $445 billion, and outbound shipments would have to rise 11 to 12 percent to achieve the target. Major Korean economic think tanks have predicted outbound shipments to total around $480 billion, rising only around 8 percent next year. The Korea International Trade Association estimates $482.5 billion, up 8.6 percent, the Samsung Economic Research Institute $484.7 billion, up 8.3 percent, and the LG Economic Research Institute $486.7 billion, up 8.9 percent.
(englishnews@chosun.com )
Commentary: I saw this and suddenly KLF came to mind. Are vows enough? Homage to, "They're justified and they're ancient?" Perhaps if most consumers in Korea's major export markets simply trade down as Walmart's retail customer growth indicates many US buyers are doing. Tongue in cheek, is this "Moo Moo Land?"
The government has announced an all-out offensive to boost exports. Officials in a trade promotion meeting on Tuesday decided next year’s export target of US$500 billion and vowed to achieve a trade surplus.
Knowledge Economy Minister Lee Youn-ho said the government will increase export insurance funds designed to protect exporters from payment defaults in developing countries by W40 trillion (US$1=W1,288) next year from the present W130 trillion to W170 trillion. The Korea Trade-Investment Promotion Agency will guarantee products made by small and mid-sized businesses under the logo “KOTRA Guaranteed Brand.”
To boost the export competitiveness of Korean-made hybrid cars to be marketed from July next year, the government will exempt owners from consumption tax as well as acquisition and registration tax. People who buy hybrid cars will also be exempt from government bonds required by all automobile purchasers. An official at the Knowledge Economy Ministry said the tax breaks will lower the price of a hybrid car, estimated to range between W24 million to W30 million, by as much as W3.1 million.
The government also decided to cut tariffs on imported equipment to manufacture IT products, while allowing consortiums between large and small businesses to hire people who are exempt from active military service. The scope of exemptions on income tax for workers dispatched overseas will rise from the present W1 million to W1.5 million.
It remains to be seen whether the government’s plans can be realistically implemented. Korea’s exports this year are estimated at $445 billion, and outbound shipments would have to rise 11 to 12 percent to achieve the target. Major Korean economic think tanks have predicted outbound shipments to total around $480 billion, rising only around 8 percent next year. The Korea International Trade Association estimates $482.5 billion, up 8.6 percent, the Samsung Economic Research Institute $484.7 billion, up 8.3 percent, and the LG Economic Research Institute $486.7 billion, up 8.9 percent.
(englishnews@chosun.com )
Commentary: I saw this and suddenly KLF came to mind. Are vows enough? Homage to, "They're justified and they're ancient?" Perhaps if most consumers in Korea's major export markets simply trade down as Walmart's retail customer growth indicates many US buyers are doing. Tongue in cheek, is this "Moo Moo Land?"
Wednesday, November 05, 2008
Are they looking for currency reserves?
Are they looking for currency reserves?
Regarding the won: A lot of things are going wrong here all at the same time. Korea is a sandwich? Korean banks borrowed the money they lent to mortgage holders on open money markets with short-term high interest loans. Now those loans and interest rates are coming back to roost.
How do the Koreans feel about it? The Korean perspective appears to suggest that the fault of currency devaluation resides with foreign investors not understanding the Korean market and expressing their fears and uncertainties through FDI withdrawals as Luis Rangel at The Commodity Market Joural has suggested. This is a not unexpected local perspective.
This is an ultra-Confucian society of followers rather than leaders where the majority of investors rely upon real estate to provide the geese that lay golden eggs over the stock market which is perceived by many as gambling as 1997 provided the last largest example of fortune’s precipitated downturns. The government has swallowed up 150,000 unsold homes in an attempt to regulate housing prices which are falling. It may cost less to mail those keys home here as there are no fixed-term mortgage rates. They are re-negotiated annually.
These geese have been fed by local banks mortgage issuances on borrowed USDs from banks abroad with high credit interest rates and leveraged calls which pushed Korea into its last crisis. Luckily some of Korea’s creditors no longer exist? Is the world better off now with GM-Daewoo one of its few profit making subsidiaries?
The Korean reserves of won and USD have fallen nearly as far as they did during the 1997 currency crisis. Locals remember it as ,”The IMF Crisis” which makes the whole world look like an “IMF Crisis” at this time.
The sky is not falling -it fell. The fallout remains…?
Regarding the won: A lot of things are going wrong here all at the same time. Korea is a sandwich? Korean banks borrowed the money they lent to mortgage holders on open money markets with short-term high interest loans. Now those loans and interest rates are coming back to roost.
How do the Koreans feel about it? The Korean perspective appears to suggest that the fault of currency devaluation resides with foreign investors not understanding the Korean market and expressing their fears and uncertainties through FDI withdrawals as Luis Rangel at The Commodity Market Joural has suggested. This is a not unexpected local perspective.
This is an ultra-Confucian society of followers rather than leaders where the majority of investors rely upon real estate to provide the geese that lay golden eggs over the stock market which is perceived by many as gambling as 1997 provided the last largest example of fortune’s precipitated downturns. The government has swallowed up 150,000 unsold homes in an attempt to regulate housing prices which are falling. It may cost less to mail those keys home here as there are no fixed-term mortgage rates. They are re-negotiated annually.
These geese have been fed by local banks mortgage issuances on borrowed USDs from banks abroad with high credit interest rates and leveraged calls which pushed Korea into its last crisis. Luckily some of Korea’s creditors no longer exist? Is the world better off now with GM-Daewoo one of its few profit making subsidiaries?
The Korean reserves of won and USD have fallen nearly as far as they did during the 1997 currency crisis. Locals remember it as ,”The IMF Crisis” which makes the whole world look like an “IMF Crisis” at this time.
The sky is not falling -it fell. The fallout remains…?
Tuesday, November 04, 2008
International Business Plan for The UAE: Maple Springs Mineral Water Company
International Business Plan for The UAE: Maple Springs Mineral Water Company
FittSkills eConcordia project (pdf attached)
FittSkills eConcordia project (pdf attached)
South Korean exports to suffer downturn next year: official says
South Korean exports to suffer downturn next year: official says
Qatar News Agency
Article Date: 09:24 2008/10/22
Seoul, October 22 (QNA) - The sluggish global economy is expected to cause a downturn in South Korean exports in the first half of 2009, a senior government policymaker said Wednesday. Knowledge Economy Minister Lee Youn-ho told a gathering of local businessmen in Seoul that the financial crisis, which was set off by the U.S. sub-prime mortgage rout and the collapse of Lehman Brothers Inc., is affecting growth worldwide. "Such developments are likely to affect exports, investment and local spending," he said in a statement carried by the South Korean /Yonhap/ News agency today. South Korea's exports posted solid double-digit gains throughout the year, with numbers topping $37.59 billion for an annual gain of 28.2 percent in September. Imports surged 45.8 percent that month to $39.65 billion for a deficit of $2.05 billion. The official said that the scale of the fallout will depend upon economic conditions in the United States and developing countries such as China. Developing economies account for over 60 percent of South Korean exports, while exports to the U.S. make up roughly 10 percent of the total. "The liquidity crunch being felt at present may lead to higher interest rates, which in turn will hurt corporate investment," Lee said. The minister said instability in the financial sector could also have negative consequences on foreign exchange rates. The policymaker stressed, however, that the country will be able to pull off a trade surplus in October and for the whole of the fourth quarter. He said the government is aiming to attract at least 12 billion in foreign direct investment by year's end. Reflecting the general slowdown, Seoul said that this year''s growth may dip to mid-4-percent levels from the 5 percent seen in 2007, with some experts predicting growth to fall to under 4 percent in the first half of next year.(qna) MD
Commentary: I would love to see full follow through and tracking on those Korean exports to developing economies which may indirectly represent value added exports to the USA? How much of those volumes are inter-Korean subsidiary traffic? Much of what is happening globally at this time appears to mirror what was happening in Korea in 1997. Which industries will demonstrate earliest signs of contraction? Will construction and ship-building be drastically affected and what kinds of bailout packages has the Korean government prepared in the event of possible chaebol melt-downs in 2009? In addition what methods will the Korean government be promoting to encourage 12 billion in FDI in the next two months?
Thursday, October 30, 2008
Won soars 16.5 pct on currency swap deal
Won soars 16.5 pct on currency swap deal
SEOUL, Oct. 30 (Yonhap) -- The South Korean won spiked 16.5 percent against the dollar Thursday on a currency swap deal with the U.S., a bullish stock market and Seoul's decreased current account deficit, dealers said.
The local currency closed at 1,250 against the greenback, up 177 won from the previous session's close and the biggest daily gain since Dec. 26, 1997.
The currency, which plummeted to a more than ten year low of 1,495 won to the greenback, rallied as foreign exchange authorities accelerated moves to restore confidence in financial markets.
The Bank of Korea (BOK) said earlier in the day it has concluded a currency swap agreement of up to US$30 billion with the U.S. Fed, which will help stem the won's sharp decline against the dollar.
BOK Gov. Lee Seong-tae said the swap deal will help the local financial market and ease concerns about local banks' dollar shortage.
Finance Minister Kang Man-soo also said that the country is seeking to forge similar deals with Japan and China.
"The news will help market sentiment improve, and help ease concerns over a shortage of dollars at banks and local companies," said Kwon Woo-hyun, a currency dealer at Woori Bank. "But it will take time for the currency rate to stabilize due to continued foreign sell-offs of local stocks."
The local currency has lost more than 30 percent against the greenback so far this year, in large part due to the continued sell-offs of local stocks by foreign investors and concerns that local lenders are facing difficulties repaying short-term foreign debts.
A bullish run on the local stock market also helped the local currency gain against the greenback while a narrowed current account deficit reduced dollar demand, they said.
The won's sharp rise was also helped by a central bank report that the country's current account shortfall narrowed sharply to $1.22 billion in September, compared with a deficit of $4.7 billion the previous month.
South Korea has posted current account shortfalls for every month this year except May as oil prices and the won's tumble drove up the cost of imported goods.
A continued deficit raised concerns that declining dollar supplies will further put downward pressure on the local currency.
The bank forecast that the economy is likely to post a current account surplus of more than $1 billion in October as the trade balance swings to the black.
sam@yna.co.kr
SEOUL, Oct. 30 (Yonhap) -- The South Korean won spiked 16.5 percent against the dollar Thursday on a currency swap deal with the U.S., a bullish stock market and Seoul's decreased current account deficit, dealers said.
The local currency closed at 1,250 against the greenback, up 177 won from the previous session's close and the biggest daily gain since Dec. 26, 1997.
The currency, which plummeted to a more than ten year low of 1,495 won to the greenback, rallied as foreign exchange authorities accelerated moves to restore confidence in financial markets.
The Bank of Korea (BOK) said earlier in the day it has concluded a currency swap agreement of up to US$30 billion with the U.S. Fed, which will help stem the won's sharp decline against the dollar.
BOK Gov. Lee Seong-tae said the swap deal will help the local financial market and ease concerns about local banks' dollar shortage.
Finance Minister Kang Man-soo also said that the country is seeking to forge similar deals with Japan and China.
"The news will help market sentiment improve, and help ease concerns over a shortage of dollars at banks and local companies," said Kwon Woo-hyun, a currency dealer at Woori Bank. "But it will take time for the currency rate to stabilize due to continued foreign sell-offs of local stocks."
The local currency has lost more than 30 percent against the greenback so far this year, in large part due to the continued sell-offs of local stocks by foreign investors and concerns that local lenders are facing difficulties repaying short-term foreign debts.
A bullish run on the local stock market also helped the local currency gain against the greenback while a narrowed current account deficit reduced dollar demand, they said.
The won's sharp rise was also helped by a central bank report that the country's current account shortfall narrowed sharply to $1.22 billion in September, compared with a deficit of $4.7 billion the previous month.
South Korea has posted current account shortfalls for every month this year except May as oil prices and the won's tumble drove up the cost of imported goods.
A continued deficit raised concerns that declining dollar supplies will further put downward pressure on the local currency.
The bank forecast that the economy is likely to post a current account surplus of more than $1 billion in October as the trade balance swings to the black.
sam@yna.co.kr
Wednesday, October 29, 2008
Tuesday, October 21, 2008
Sri Lanka recruiters visit Shawnee State University
Sri Lanka recruiters visit Shawnee State University
Wijeya Newspapers Ltd.
This summer, Priyanthi and Dissa Dissanayake, college recruiters to the United States from Sri Lanka, visited Shawnee State University for the first time to look at possibly sending students for their education.
More than 100 students have come to the United States from Sri Lanka for higher education since 2001 with the help of Priyanthi Dissanayake, who is recognized as Sri Lanka's foremost individual recruiter to colleges and universities in the U.S.
Her daughter, Sashi, wanted her higher education in the United States when she first started researching and after many rejections, she found a private college in Minnesota that worked with her. After that, her friends wanted help in sending their students to the United States.
"There had been very few Sri Lanka students coming to the United States for higher education before that," said John Lorentz, executive director of SSU's Center for International Programs and Activities. "They usually would go to Australia."
Lorentz has been involved with strategic planning in the state of Ohio with the Ohio International Council. One of the discussions of the group was determining how to promote education in Ohio, including promoting education abroad.
Shawnee State is also a founding member of the American International Recruitment Council, a new accrediting association for recruiters. The purpose of the organization is to develop standards of ethical practice to recruit international students to American educational institutions. Through his involvement in these organizations, Lorentz was introduced to the Dissanayakes.
"Last summer, we were introduced to Ohio," Dissa Dissanayake said. "We are visiting 16 schools in 10 days. What we have found is that Ohio offers so much diversity in schools for our students."
Until they came to Ohio, the Dissanayakes were working with about a dozen schools and now they have about 28 schools for their students.
"Having worked with so many schools in so many states, I see Ohio as one of the most forward-looking states where the international students are concerned," Dissa Dissanayake said. "From what we have seen, Shawnee State University has a lot to offer our students. We feel that students coming here would have a quality education."
In the next month, Lorentz will be traveling to Sri Lanka and Nepal for education exhibitions to introduce students to SSU.
"When you invite international students and you teach them a liberal arts education and the values of democracy, you pass on certain values to the future generations, the future leaders," Dissa Dissanayake said. "America has a lot to offer through its education to make the world a much safer place, a much better place. What I see here is that it goes far beyond educating individuals. This is the ultimate goal."
Visitors from Sri Lanka tour Shawnee State University to consider sending students. Contact: Elizabeth Blevins, Director, Office of Communications
Office: (740) 351-3810; FAX: (740) 351-3179; Cell: (740) 464-4854
Sourced: goswoop
Wijeya Newspapers Ltd.
This summer, Priyanthi and Dissa Dissanayake, college recruiters to the United States from Sri Lanka, visited Shawnee State University for the first time to look at possibly sending students for their education.
More than 100 students have come to the United States from Sri Lanka for higher education since 2001 with the help of Priyanthi Dissanayake, who is recognized as Sri Lanka's foremost individual recruiter to colleges and universities in the U.S.
Her daughter, Sashi, wanted her higher education in the United States when she first started researching and after many rejections, she found a private college in Minnesota that worked with her. After that, her friends wanted help in sending their students to the United States.
"There had been very few Sri Lanka students coming to the United States for higher education before that," said John Lorentz, executive director of SSU's Center for International Programs and Activities. "They usually would go to Australia."
Lorentz has been involved with strategic planning in the state of Ohio with the Ohio International Council. One of the discussions of the group was determining how to promote education in Ohio, including promoting education abroad.
Shawnee State is also a founding member of the American International Recruitment Council, a new accrediting association for recruiters. The purpose of the organization is to develop standards of ethical practice to recruit international students to American educational institutions. Through his involvement in these organizations, Lorentz was introduced to the Dissanayakes.
"Last summer, we were introduced to Ohio," Dissa Dissanayake said. "We are visiting 16 schools in 10 days. What we have found is that Ohio offers so much diversity in schools for our students."
Until they came to Ohio, the Dissanayakes were working with about a dozen schools and now they have about 28 schools for their students.
"Having worked with so many schools in so many states, I see Ohio as one of the most forward-looking states where the international students are concerned," Dissa Dissanayake said. "From what we have seen, Shawnee State University has a lot to offer our students. We feel that students coming here would have a quality education."
In the next month, Lorentz will be traveling to Sri Lanka and Nepal for education exhibitions to introduce students to SSU.
"When you invite international students and you teach them a liberal arts education and the values of democracy, you pass on certain values to the future generations, the future leaders," Dissa Dissanayake said. "America has a lot to offer through its education to make the world a much safer place, a much better place. What I see here is that it goes far beyond educating individuals. This is the ultimate goal."
Visitors from Sri Lanka tour Shawnee State University to consider sending students. Contact: Elizabeth Blevins, Director, Office of Communications
Office: (740) 351-3810; FAX: (740) 351-3179; Cell: (740) 464-4854
Sourced: goswoop
S. Korea plans more measures
SEOUL - SOUTH Korea said on Monday it is planning measures to prop up the construction sector, after announcing a US$130 billion (S$191 billion) package to stabilise financial markets.
The government believes the fiscal measures announced on Sunday are sufficient, preemptive and decisive, said Deputy Minister of Strategy and Finance for International Affairs Shin Je-Yoon.
'And in order to help the real economy, the government plans to announce measures on Wednesday to support the construction sector and (at a future date announce) additional means to help small and medium-sized enterprises,' he told foreign correspondents.
The financial package was earlier welcomed by the International Monetary Fund, saying it should help foster confidence.
A statement by managing director Dominique Strauss-Kahn said Seoul's decision to guarantee up to US$100 billion in foreign borrowing by its banks will ease pressure in the local dollar funding market.
'While global financial conditions will likely remain unsettled for some time, the government's policy package should support confidence in the Korean financial system and return attention to Korea's solid macroeconomic fundamentals, including its sizeable foreign reserves,' the statement said.
Apart from the guarantee, the government also announced it will supply US$30 billion from foreign reserves as soon as possible to local banks and exporters to ease a dollar shortage which has been driving down the won.
Despite foreign reserves of almost US$240 billion, South Korea was seen as vulnerable to the current global turmoil because of a surge in short-term foreign borrowing by its banks over the past year as US interest rates fell.
The global credit crunch was complicating efforts to roll over those loans, causing a scramble for dollars and a plunge in the won's value.
Some US$80 billion in foreign currency borrowing is due to mature by next June.
The won rose against the dollar following Sunday's announcement. It closed at 1,315 won to the US unit, up 19 from Friday's close.
Shares ended 2.3 per cent higher on Monday as gains in Asian markets offset doubts over the effectiveness of the stabilisation measures.
The central bank chief said the economy is expected to grow slower next year amid difficulties at home and abroad, and the bank plans a monetary policy to prevent it from sharply weakening.
'There is a possibility that the growth of the South Korean economy will considerably slow down in 2009, but the economy is not expected to contract,' Lee Seong-Tae, governor of the Bank of Korea, told lawmakers during a parliamentary audit. -- AFP
Gulf Compensation Trends 2008
Gulf Compensation Trends 2008 (Download for free)
GulfTalent.com's fourth annual review of compensation trends:
Average pay rises by country and sector
Drivers of salary increases
Structural trends in employment
Outlook for 2009, including impact of global economic slowdown
Individual country analysis for UAE, Saudi Arabia, Kuwait, Qatar, Bahrain and Oman
GulfTalent.com's fourth annual review of compensation trends:
Average pay rises by country and sector
Drivers of salary increases
Structural trends in employment
Outlook for 2009, including impact of global economic slowdown
Individual country analysis for UAE, Saudi Arabia, Kuwait, Qatar, Bahrain and Oman
Thursday, October 16, 2008
Some bottled water just as contaminated as tap water: study
Some bottled water just as contaminated as tap water: study
The Associated Press
Wednesday, October 15, 2008
Tests on leading brands of U.S. bottled water turned up a variety of contaminants, including cancer-linked chemicals three times higher than California's health standard, according to a study released Wednesday by an environmental advocacy group.
The findings challenge the popular impression — and marketing pitch — that bottled water is purer than tap water, the researchers said.
All the brands met federal health standards for drinking water. And most of the detected contaminants are common in tap water too.
"In some cases, it appears bottled water is no less polluted than tap water and, at 1,900 times the cost, consumers should expect better," said Jane Houlihan, an environmental engineer who co-authored the study.
Lab tests detected 38 chemicals in 10 brands, with an average of eight contaminants found in each kind of bottled water. Tests showed coliform bacteria, caffeine, the pain reliever acetaminophen, fertilizer, solvents, plastic-making chemicals and the radioactive element strontium.
The two-year study was done by the Washington-based Environmental Working Group, an organization founded by scientists that advocates stricter regulation. It bought bottled water in California, North Carolina, Virginia, Maryland and Delaware.
Researchers tested one batch for each of 10 brands. Eight of those did not have troubling levels of contaminants.
But two brands did, so more tests were done and those revealed chlorine byproducts above California's standard. The researchers identified those two brands as Sam's Choice sold by Wal-Mart and Acadia of Giant Food supermarkets.
The other eight, which researchers didn't identify, carried legal levels of many contaminants. Some of those chemicals, like arsenic and the solvent toluene, have been tied to health risks.
Some of the contaminants apparently came from pollutants often found in tap water, and others probably leached from plastic bottles, the researchers said.
In the Wal-Mart and Giant Food bottled water, the highest concentration of chlorine byproducts, known as trihalomethanes, was over 35 parts per billion. California requires 10 parts per billion or less, and the industry's International Bottled Water Association makes 10 its voluntary guideline. The federal limit is 80.
Water researcher Dr. David Carpenter, director of the Institute for Health and the Environment at the University at Albany, who had no role in the study, singled out trihalomethanes as the biggest concern because of strong research links to cancer.
"These are levels that should not be in bottled water," he said.
Giant Food officials declined to comment. Instead, company officials released a brief statement asserting that Acadia meets all regulatory standards.
Acadia is sold in the mid-Atlantic states, so it isn't held to California's standard. In most places, bottled water must meet roughly the same federal standards as tap water.
The researchers also said the Wal-Mart brand exceeded California's limit by five times for a second chlorine byproduct, bromodichloromethane.
The Environmental Working Group said it notified California's attorney general of its intent to sue Wal-Mart. The group wants the company to label its bottles in California with a warning of cancer-causing chemicals. Wal-Mart did not respond to a request for comment.
Joe Doss, president of the International Bottled Water Association, said he would not defend any company that is exceeding the standard in California. "If they have exceeded it, they should meet it," he said.
The chlorine byproducts, which studies have also linked to birth defects, presumably come from chlorine used as a disinfectant, which ends up in public water systems. Tap water is often repackaged and sold as bottled water, and the researchers said that was true of these two brands.
The researchers recommend that people who are worried use a carbon filter for their tap water.
The Associated Press
Wednesday, October 15, 2008
Tests on leading brands of U.S. bottled water turned up a variety of contaminants, including cancer-linked chemicals three times higher than California's health standard, according to a study released Wednesday by an environmental advocacy group.
The findings challenge the popular impression — and marketing pitch — that bottled water is purer than tap water, the researchers said.
All the brands met federal health standards for drinking water. And most of the detected contaminants are common in tap water too.
"In some cases, it appears bottled water is no less polluted than tap water and, at 1,900 times the cost, consumers should expect better," said Jane Houlihan, an environmental engineer who co-authored the study.
Lab tests detected 38 chemicals in 10 brands, with an average of eight contaminants found in each kind of bottled water. Tests showed coliform bacteria, caffeine, the pain reliever acetaminophen, fertilizer, solvents, plastic-making chemicals and the radioactive element strontium.
The two-year study was done by the Washington-based Environmental Working Group, an organization founded by scientists that advocates stricter regulation. It bought bottled water in California, North Carolina, Virginia, Maryland and Delaware.
Researchers tested one batch for each of 10 brands. Eight of those did not have troubling levels of contaminants.
But two brands did, so more tests were done and those revealed chlorine byproducts above California's standard. The researchers identified those two brands as Sam's Choice sold by Wal-Mart and Acadia of Giant Food supermarkets.
The other eight, which researchers didn't identify, carried legal levels of many contaminants. Some of those chemicals, like arsenic and the solvent toluene, have been tied to health risks.
Some of the contaminants apparently came from pollutants often found in tap water, and others probably leached from plastic bottles, the researchers said.
In the Wal-Mart and Giant Food bottled water, the highest concentration of chlorine byproducts, known as trihalomethanes, was over 35 parts per billion. California requires 10 parts per billion or less, and the industry's International Bottled Water Association makes 10 its voluntary guideline. The federal limit is 80.
Water researcher Dr. David Carpenter, director of the Institute for Health and the Environment at the University at Albany, who had no role in the study, singled out trihalomethanes as the biggest concern because of strong research links to cancer.
"These are levels that should not be in bottled water," he said.
Giant Food officials declined to comment. Instead, company officials released a brief statement asserting that Acadia meets all regulatory standards.
Acadia is sold in the mid-Atlantic states, so it isn't held to California's standard. In most places, bottled water must meet roughly the same federal standards as tap water.
The researchers also said the Wal-Mart brand exceeded California's limit by five times for a second chlorine byproduct, bromodichloromethane.
The Environmental Working Group said it notified California's attorney general of its intent to sue Wal-Mart. The group wants the company to label its bottles in California with a warning of cancer-causing chemicals. Wal-Mart did not respond to a request for comment.
Joe Doss, president of the International Bottled Water Association, said he would not defend any company that is exceeding the standard in California. "If they have exceeded it, they should meet it," he said.
The chlorine byproducts, which studies have also linked to birth defects, presumably come from chlorine used as a disinfectant, which ends up in public water systems. Tap water is often repackaged and sold as bottled water, and the researchers said that was true of these two brands.
The researchers recommend that people who are worried use a carbon filter for their tap water.
Tenure-track Position in International Business: Yonsei School of Business, Yonsei University
Tenure-track Position in International Business
Yonsei School of Business, Yonsei University
Yonsei School of Business invites application for a tenure-track faculty position in the area of International Business, available Spring 2009 or after.
The tenure-track faculty will teach two courses per semester in the area of International Business. The new faculty is expected to teach general international business courses, such as international business environment, international strategic management, international marketing and/or international HRM. Expertise in teaching specialized courses such as Asian Management, Chinese Management, International Human Resources, etc. will be favorably considered. The successful candidate should demonstrate outstanding research potential and excellent teaching capabilities. Applicants should have a doctorate in business administration or related field and at least one year of research or teaching experience after completion of doctoral degree. Faculty rank is open depending on qualifications.
As the best private university in Korea, Yonsei has a spacious and well-wooded campus located just 20 minutes away from the economic, political, and cultural centers of the Seoul metropolitan area (http://www.yonsei.ac.kr/eng/). Yonsei School of Business has been leading the business programs in Korea by offering the nation’s first undergraduate commerce program in 1919 (http://cob.yonsei.ac.kr/en/main/), first MBA program in 1965, and first full-time English MBA program in 1998 (http://gsb.yonsei.ac.kr/). The school has 68 full-time faculty and more than 1000 undergraduate, MS/PhD, and MBA students graduate from the school every year.
Interested candidates may visit Yonsei website (http://www.yonsei.ac.kr/eng/) and at the bottom of right hand side will be “Professorship for 2009.” Please follow the instruction there and submit your application accordingly. Yonsei School of Business will provide the housing support, the settlement support, and strong incentives for research and publication. We look forward to your active participation. Thank you.
Dr. Young-Ryeol Park
IB/Strategy Faculty Search Committee
Yonsei School of Business
134 Seodaemoon-gu, Shinchon-Dong
Seoul, 120-749, Korea
yrpark@yonsei.ac.kr
Tel: +82-2-2123-2529
FAX: +82-2-2123-8639
Yonsei School of Business, Yonsei University
Yonsei School of Business invites application for a tenure-track faculty position in the area of International Business, available Spring 2009 or after.
The tenure-track faculty will teach two courses per semester in the area of International Business. The new faculty is expected to teach general international business courses, such as international business environment, international strategic management, international marketing and/or international HRM. Expertise in teaching specialized courses such as Asian Management, Chinese Management, International Human Resources, etc. will be favorably considered. The successful candidate should demonstrate outstanding research potential and excellent teaching capabilities. Applicants should have a doctorate in business administration or related field and at least one year of research or teaching experience after completion of doctoral degree. Faculty rank is open depending on qualifications.
As the best private university in Korea, Yonsei has a spacious and well-wooded campus located just 20 minutes away from the economic, political, and cultural centers of the Seoul metropolitan area (http://www.yonsei.ac.kr/eng/). Yonsei School of Business has been leading the business programs in Korea by offering the nation’s first undergraduate commerce program in 1919 (http://cob.yonsei.ac.kr/en/main/), first MBA program in 1965, and first full-time English MBA program in 1998 (http://gsb.yonsei.ac.kr/). The school has 68 full-time faculty and more than 1000 undergraduate, MS/PhD, and MBA students graduate from the school every year.
Interested candidates may visit Yonsei website (http://www.yonsei.ac.kr/eng/) and at the bottom of right hand side will be “Professorship for 2009.” Please follow the instruction there and submit your application accordingly. Yonsei School of Business will provide the housing support, the settlement support, and strong incentives for research and publication. We look forward to your active participation. Thank you.
Dr. Young-Ryeol Park
IB/Strategy Faculty Search Committee
Yonsei School of Business
134 Seodaemoon-gu, Shinchon-Dong
Seoul, 120-749, Korea
yrpark@yonsei.ac.kr
Tel: +82-2-2123-2529
FAX: +82-2-2123-8639
Monday, October 13, 2008
Dubai Drink Technology Expo 2008
Dubai Drink Technology Expo 2008
“The UAE foodservice market is larger and more important than is initially apparent and is also growing at rates not seen in any developed countries of the world. (over 10% per annum in most channels)” (Drink Expo UAE, 2008)
Date: December 14-16, 2008
Venue: Dubai Convention & Exhibition Centre, in Dubai, UAE. Zabeel Hall
Website: http://www.drinkexpo.ae
Sunday, October 12, 2008
Nova Scotia Export Sucess Stories: Under the Radar?
Nova Scotia Business celebrates Canadian Export Awards 2008 for the following businesses. I think it would be wonderful if every Canadian Embassy Abroad would provide similar success story links of Canadian provincial export businesses at home eliciting federal representation of Canadian exporters in a high profile and easy to access format which is above board and above the radar.
LP East River Plant
"As a world leader in the manufacture of premium composite wood products, the LP East River Plant will ensure sustainability, by being increasingly profitable with world class safety performance, customer satisfaction and innovative management systems."
Fossil Power Systems Inc.
"Fossil Power Systems Inc. (Fossil) is a Canadian company that has been supplying system hardware/software and services to international customers for more than 25 years."
Trail Blazer Products Limited
"Trail Blazer is a Canadian based manufacturer of hatchets, knives, saws, tree loppers & extension poles, which meet any challenge, from the needs of the outdoor enthusiast to odd jobs around the home & cottage."
PV Inspection Services Limited
"PV provides third party inspection, technical project management, and procurement support services including expediting, logistics management and QA/QC coordination for a diverse range of industry sectors around the world."
Cherubini Metal Works Limited
"Cherubini has built its reputation on one thing, steel."
Stark Oil
"Over the past fifteen years, STARK has been the industry leader in providing transformer maintenance and related services."
LP East River Plant
"As a world leader in the manufacture of premium composite wood products, the LP East River Plant will ensure sustainability, by being increasingly profitable with world class safety performance, customer satisfaction and innovative management systems."
Fossil Power Systems Inc.
"Fossil Power Systems Inc. (Fossil) is a Canadian company that has been supplying system hardware/software and services to international customers for more than 25 years."
Trail Blazer Products Limited
"Trail Blazer is a Canadian based manufacturer of hatchets, knives, saws, tree loppers & extension poles, which meet any challenge, from the needs of the outdoor enthusiast to odd jobs around the home & cottage."
PV Inspection Services Limited
"PV provides third party inspection, technical project management, and procurement support services including expediting, logistics management and QA/QC coordination for a diverse range of industry sectors around the world."
Cherubini Metal Works Limited
"Cherubini has built its reputation on one thing, steel."
Stark Oil
"Over the past fifteen years, STARK has been the industry leader in providing transformer maintenance and related services."
Friday, October 10, 2008
Brazilian Stocks Fall, Led by Banks, Homebuilders; Bolsa Drops
Brazilian Stocks Fall, Led by Banks, Homebuilders; Bolsa Drops
By Paulo Winterstein and William Freebairn
Oct. 9 (Bloomberg) -- Brazilian stocks fell for a sixth day, the longest losing streak in a year, as the global economic slowdown and worsening credit crisis threaten the country's expansion.
Cyrela Brazil Realty SA Empreendimentos e Participacoes and Gafisa SA, the biggest real estate developers, led declines on the index, losing more than 13 percent each. Uniao de Bancos Brasileiros SA paced losses among lenders. Tam SA and Gol Linhas Aereas Inteligentes SA, the country's largest airlines, dropped after Deutsche Bank AG said passenger traffic growth was ``timid'' in September. Tele Norte Leste Participacoes SA and Brasil Telecom Participacoes SA fell on concern tighter credit will raise the costs of a merger between the phone companies.
The Bovespa Index dropped 1,513.24, or 3.9 percent, to 37,080.30, extending its losses for the year to 42 percent. Mexico's Bolsa index slid 0.9 percent. The BM&FBovespa MidLarge Cap index dropped 4.4 percent. The BM&FBovespa Small Cap index fell 3.3 percent. Mexico's Bolsa Index fell 1.8 percent, while Chile's Ipsa dropped 1.7 percent. The Dow Jones Industrial Average fell below 9,000 for the first time since 2003.
``We're importing the crisis, and also this market volatility,'' said Andre Caminada, partner at Victoire Finance Capital in Sao Paulo, which manages about $130 million in assets.
Airlines Fall
Tam, the biggest Brazilian carrier, fell 8.3 percent to 27.60 reais. Gol fell 8.1 percent to 8.76 reais.
A global cooling of economic growth will also lead to slower expansion in Brazil, which ``should hurt the demand for aviation services,'' Deutsche Bank analyst Bernardo Carneiro wrote. The weaker real also will likely cut third-quarter profit, with ``record high financial losses (all non-cash) of about $450 million reais'' due to recent drop in the real. The real had lost 18 percent in the past six days.
The cost of borrowing in dollars for three months in London soared to the highest level this year as coordinated interest- rate reductions worldwide failed to revive lending among banks for any longer than a day.
Unibanco, as Brazil's third-biggest non-government bank is known, dropped 7.7 percent to 14.21 reais. Banco Bradesco SA, the biggest non-state bank, slid 7.2 percent to 23.49 reais.
Tele Norte voting shares dropped 9.2 percent to 29.50 reais, the lowest price in three weeks. Preferred shares of the company whose parent agreed to buy Brasil Telecom Participacoes SA fell 7.1 percent to 27.41 reais. Brasil Telecom Participacoes fell 12 percent to 13.55 reais, while operating unit Brasil Telecom SA tumbled 15 percent to 10.90 reais.
``The current credit scenario makes it more complicated for Telemar to borrow money for the tag-along of Brasil Telecom shares,'' Peter Lyons, an analyst at Oscar Gruss & Son Inc., said in a phone interview from in New York.
Homebuilders Fall
Cyrela dropped 14 percent to 11.42 reais. Gafisa dropped 17 percent to 15.05 reais.
Brazil's central bank may raise rates at its next meeting, Caminada said.
``The central bank wants to show that the market is healthy, that this isn't a matter of insolvency in Brazil, but a question of liquidity. The rates will likely go up because inflation continues to be an important concern,'' he said in a phone interview.
Consumer, construction and wholesale prices as measured by the IGP-M index rose 0.55 percent during the first ten days of the data collection period, according to the Getulio Vargas Foundation. Economists were expecting a 0.19 percent climb, according to Bloomberg data.
``For now we are not betting on an interruption of the tightening cycle for this year yet,'' UBS AG chief Latin America economist Eduardo Loyo said on a conference call today. ``If the economic contraction is stronger, that may lead the central bank to revise its flight plan and end up with a shorter tightening cycle than planned.''
Bolsa Drops
Mexico's Bolsa fell for a sixth day, led by Cemex SAB, the largest cement producer in the Americas, which dropped the most in 11 years after Citigroup Inc. cut its rating, citing the global credit crisis.
Cemex was reduced to ``hold'' from ``buy''. Citigroup said a global credit freeze could raise borrowing costs and slow construction spending.
Many Mexican companies fell on concern over their debt in dollars as the peso continued a series of record low closing values. The peso has dropped 19 percent during its seven-session slide.
Empresas ICA SAB, Mexico's largest construction company, fell 11 percent, erasing earlier gains, even as it said it has financing for 90 percent of its projects and is protected from swings in the peso.
Cemex fell 15 percent to 10.52 pesos. ICA declined 1.97 pesos to 16.02 pesos.
In other Latin American markets, Argentina's Merval dropped 5.3 percent, Colombia dropped 2.3 percent and Peru's IGBVL plunged 8.8 percent. The MSCI Latin American index fell 1.3 percent. The index has lost a third of its value this month in the steepest seven-day drop since the index began in 1987.
To contact the reporters on this story: Paulo Winterstein in Sao Paulo at pwinterstein@bloomberg.net; William Freebairn in Mexico City wfreebairn@bloomberg.net.
Last Updated: October 9, 2008 16:59 EDT
Asia plunges futher into financial chaos
Asia plunges futher into financial chaos
Japan's Nikkei index fell 10pc and the price of oil hit a 12-month low of $83 a barrel as fears intensified about a global recession.
By Malcolm Moore in Shanghai The Telegraph
A move by US and European central banks, as well as by central banks in China, Taiwan, Hong Kong, Australia and South Korea, to slash borrowing costs has failed to reassure investors.
"It's impossible to predict the bottom, and technical analysis is meaningless as panic and fear overwhelm the markets," said Jang Huh, at Prudential Asset Management in Seoul.
Japan’s Nikkei stock index fell 10pc, the biggest loss since “Black Monday” in October 1987 and it third biggest loss ever. The index, which closed down 881.06 points at 8,276.43, has lost more than 24pc over the past week.
Prime Minister Taro Aso warned that the slump could have real effects on Asia’s largest economy. The share price fall “has reached a point where it affects the real economy and fund raising,” he told reporters.
All indications are that European markets will open sharply lower.
The sudden plunge in the price of oil followed falls in the price of other commodities, including steel, as investors gambled that a recession would translate into falling production in the world's factories. Both Ford and Volkswagen have confirmed that their sales growth has dramatically slowed in China.
Even Japanese government bonds, traditionally the safest haven for investors, were being sold off as investors scrambled to translate their assets into cash. The yield on the 1.5pc 10-year bond rose 3.5 basis points.
In China, the government took the unprecedented step of ordering all foreign companies operating on the mainland to declare the state of their financial health and to provide details about how the ongoing crisis could affect their business.
Chinese companies in joint ventures with foreign firms will also have to testify about their partner's solvency, amid fears that the collapse of a major company in China could cause widespread shocks.
Meanwhile, China's markets regulator has asked for unofficial "audits"
of all foreign financial institutions in the country. The decision includes Hong Kong-based banks, hedge funds and private equity houses.
All new share listings have been suspended. In 2005, the markets regulator suspended all new offerings for 12 months in response to market turbulence.
The lack of confidence in Asia continued to weigh heavily on markets, with the Shanghai composite index touching the 2,000 point barrier at one point. By lunchtime, the Chinese market was 2.8pc down at 2015.
In Hong Kong, the Hang Seng index dropped 7pc to a near three-year low, and the market has lost almost half its value since the beginning of the year. In Singapore, the market fell more than 6.6 percent, after new statistics showed that the island, one of the richest economies in the world, was in recession. Sydney fell 6.5pc.
The falls followed another plunge in the Dow Jones Industrial Average in the US, which closed beneath 9,000 points for the first time in five years, wiping out almost USD900 billion in market value.
The crisis of confidence in Asia has seen HSBC, Hong Kong's biggest bank, defy the island's central bank by leaving its benchmark lending rates unchanged. Even though interest rates have been slashed by a full percentage point, the interbank lending rate – the rate at which banks lend money to each other - has spiked to a one-year high after the region's banks refused to believe in each other's solvency.
“It is ghastly,” said Macquarie Equities associate director Lucinda Chan in Sydney. “Investors are buying up gold. It’s the only safe haven out there, otherwise it’s red everywhere.”
CMC Markets senior dealer Matthew Lewis described the rout as “total market capitulation”.
India’s central bank said it would inject a further 400bn rupees ($£5bn) into the financial system, by cutting the cash reserve commercial banks must hold to 7.5pc.
“This was done due to the evolving liquidity situation in the context of global and domestic developments,” the RBI said in a statement.
The injection came as shares on the Bombay stock exchange fell more than 7pc.
Iceland seeks Russian comfort
Iceland seeks Russian comfort
Remember the crisis of 1998 when the ruble went from being 6 rubles to a dollar, to 10 rubles, and on and on until it quickly reached previously unimagined levels? Well, now this nasty experience has been played out for somebody else. Swept by the global financial crisis, little Iceland discovered its own currency - the krona - had devalued 30 percent against the euro in just 24 hours on Monday. In an effort to save its banking sector, the country nationalized its third-largest bank, Glitnir, last week, its second-largest bank, Landsbanki, this week - and loaned its largest bank, Kaupthing, 500 million euros (13 billion rubles).
The measures have not been enough and Iceland has been addressing its European neighbors with requests for some cash (about 4 billion euros) that could "help Iceland a lot" to quote Jon Thorisson, CEO of VBS, an Icelandic investment bank. Russia received a similar official request late on Tuesday and the country's Finance Minister Alexei Kudrin was quoted by Interfax as saying: "We will consider it. Iceland has a reputation for strict budget discipline and has a high credit rating. We're looking favorably at the request." Negotiations on the loan are supposed to start on October 14.
To quote the classic "Casablanca": "This is the beginning of a beautiful friendship." Iceland's Thorisson told The Moscow Times daily: "This is looking like the beginning of relations between Russia and Iceland." The AP quoted the country's Prime Minister Geir Haarde as saying that in times of crisis "one has to look for new friends". As relations with the rest of the "democratic" world have turned icy after the South Ossetia operations, Russia is looking for friends in new places. Some might argue though that the newly-emerging relationship with Iceland is just a revival of old traditions. As Vladimir Krendel from the Moscow-based Institute for Financial Research put it: "We had a long-standing relationship with Iceland in the times of the Soviet Union, when we provided them with oil. This was very unusual because Iceland was part of NATO, and NATO was the enemy."
It might seem strange to some that Russia is willing to give away 4 million euros ($5.4 billion) in loans at a time when its own financial system needs a bailout. I don't see anything strange at all. Even after spending $25.6 billion (670 billion rubles) in support of the Russian ruble that lost considerable value after the country's foray into Georgia, The Russian Central Bank still has gold and currency reserves of $556 billion (14.5 trillion rubles), not to mention the Stabilization Fund of at least $175 billion (4.6 trillion rubles). Iceland's need for $5.4 billion (141 billion rubles) is almost nothing compared to the $190 billion initiative proposed by Russia's chief financial institution to help the domestic banks try to weather the economic storm. Not to mention the fact that Russia has given away much more money in forfeited loans to numerous third-world countries, while this one actually stands all chances of being repaid.
Providing Iceland with a much needed loan that would hardly dent Russia's huge currency reserves is purely political, there is nothing economic in it. And although Russia is now looking for friends in strange new places, it is clear that should Moscow approve the loan to Reykjavik, it would not be doing so in the hope of becoming great friends. Moscow needs political heavyweights as friends, not an island state with a population of 310,000. But Iceland is a perfect instrument to demonstrate Russia's goodwill to the rest of the developed world at very little cost. Yes, 4 billion euros seem a lot to us, mere mortals, but in this particular situation this sum is a) capable of seriously helping a whole country and b) is not a serious burden on Russia's reserves. For a sum of 4 billion euros Moscow has an opportunity to show Europe that it's willing to "play ball". At a time when President Medvedev is employing divide-and-conquer tactics between the EU and US, showing that Russia is willing to part with its hard-earned money to help a little European country is like dangling a carrot on the stick. Clearly, nobody will hide under Moscow's wing just because of that, but the Russian authorities seem to know that words don't mean anything, actions do. Giving Iceland a loan is very pragmatic, and pragmatism is better than embarrassing rhetoric.
By Marina Pustilnik
Subscribe to:
Posts (Atom)