Showing posts with label Business. Show all posts
Showing posts with label Business. Show all posts

Sunday, November 15, 2009

China official plays down yuan shift



BEIJING (Reuters) - Chinese Vice Commerce Minister Chen Jian on Sunday played down talk of a shift in the central bank's currency policy as well as mounting expectations of a rise in the yuan's exchange rate. Speculation that China might let the yuan resume its climb after a 16-month pause swirled after a change last Wednesday in the long-standing wording used by the People's Bank of China to describe its currency stance.



137334
China official plays down yuan shift

BEIJING (Reuters) - Chinese Vice Commerce Minister Chen Jian on Sunday played down talk of a shift in the central bank's currency policy as well as mounting expectations of a rise in the yuan's exchange rate.

Speculation that China might let the yuan resume its climb after a 16-month pause swirled after a change last Wednesday in the long-standing wording used by the People's Bank of China to describe its currency stance.

In its third quarter monetary policy report, the central bank failed to refer to keeping the yuan "basically stable at a reasonable and balanced level" when discussing the outlook for the exchange rate.

Asked whether the PBOC was heralding a return to the gradual appreciation of the yuan against the dollar seen from July 2005-July 2008, Chen told Reuters: "I don't think the central bank meant to say that."

Chen, however, said the yuan should reflect movements in major international currencies, which was also part of the PBOC's policy formulation.

China is coming under growing international pressure to let the yuan rise. Its manufacturers have been gaining market share at the expense of rivals in countries whose currencies have risen against the falling dollar, to which the yuan is pegged.

But, speaking on the sidelines of a forum, Chen said his ministry was not worried about rising appreciation expectations.

Turning to China's trade, Chen said there was only a small chance that exports would resume year-on-year growth by the end of 2009.

Many private economists, by contrast, expect positive growth in November or December because of the low base of comparison in 2008. Exports in October were 13.8 percent lower than a year earlier.

Chen also said a leap in China's trade surplus to $24 billion in October from $12.9 billion in September did not constitute a new trend.

(Reporting by Aileen Wang and Alan Wheatley; Editing by Alex Richardson)

(c) Reuters 2009. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

No double-dip US recession

The pace of the recovery in the US economy remains sluggish but Mr Strauss-Kahn does not believe there will be a double-dip recession. -- PHOTO: AFP

THE International Monetary Fund's managing director, Dominique Strauss-Kahn, said on Friday the pace of the recovery in the US economy remains sluggish but he does not believe there will be a double-dip recession.

He also said China's economic stimulus is helping to rebalance its economy towards relying more on domestic demand but it still needs to let its currency rise over time.

In October, the IMF raised its US growth outlook to 1.5 per cent in 2010 but Mr Strauss-Kahn said that forecast could be on the pessimistic side.

'Our forecast has that, not only in the United States but also for the rest of the world, 2010 will be a year of recovery,' Mr Strauss-Kahn told a news conference in Singapore where he was attending an Asia Pacific Economic Cooperation (Apec) meeting.

'I must say, in some respects, we had been a little pessimistic because growth has resumed a little earlier than expected, by one quarter or so.'

He said the dollar had remained resilient throughout the global crisis but most Asian currencies were undervalued and reiterated calls for the Chinese yuan to be revalued. 'China's economy in the coming years will be focused on domestic growth and the value of renminbi will have to be increased,' he said. -- THOMSON REUTERS

Saturday, November 14, 2009

Obama under fire on trade as Asia-Pacific leaders meet


US President Barack Obama, left, shakes hands with Singapore's Prime Minister Lee Hsien Loong before the gala dinner for APEC leaders in Singapore. Photo: AP

US President Barack Obama has come under fire from Asia-Pacific leaders for backsliding on free trade at a regional summit devoted to driving the world economy out of crisis.

"President Obama is facing severe political constraints that run counter to free trade," Mexican President Felipe Calderon said, complaining about US foot-dragging on full implementation of the NAFTA pact for North America.

"The cruel paradox is that within a global economy, what really kills companies is inefficiency and lack of competition. Therefore protectionism is killing North American companies," he said in a speech in Singapore on Saturday.

"So I think this has to do with the fact that the US government is under strong political pressure that really is not being counteracted from the political perspective" of the Obama administration.

The US Congress has turned even more sour on free trade after the worst economic crisis since World War II.

One landmark pact with South Korea is languishing and critics say the White House has done little to revive it.

The US economy is picking up but unemployment has breached 10 per cent and economic leaders, including the heads of the International Monetary Fund and World Bank, warned in Singapore that protectionism could choke off recovery.

Russian President Dmitry Medvedev said controversial tariffs enacted by his government to shore up ailing industries were temporary and urged his regional colleagues to "do anything we can to refrain from protectionism in any sphere".

The warnings came as a two-day summit of the Asia-Pacific Economic Co-operation (APEC) forum began on Saturday.

Obama arrived later in Singapore to join the 20 other leaders, after a visit to Tokyo.

In a speech in the Japanese capital, Obama reaffirmed a US commitment to finally concluding the World Trade Organisation's Doha round of talks - a long-running bid to tear down barriers to global commerce.

And he said the United States was interested in an obscure trade pact that leaders say could become the nucleus for a massive trans-Pacific free-trade zone covering 2.6 billion people.

"The United States will also be engaging with the Trans-Pacific Partnership (TPP) countries with the goal of shaping a regional agreement that will have broad-based membership and the high standards worthy of a 21st century trade agreement," he said.

The TPP now involves Brunei, Chile, New Zealand and Singapore.

Australia, Peru and Vietnam have expressed interest in joining, and Obama's remarks were the clearest so far about Washington's plans.

"The US announcement is a significant statement of its intent to the Asia-Pacific region," Australian Trade Minister Simon Crean said.

"Importantly, it provides the critical mass essential for this initiative to go forward."

Obama meanwhile called for "balanced and sustained" growth around the world in the post-crisis phase, pressing Asian exporters including China to wean themselves off US consumers and build up their own demand.

His comments underlined a central theme of the APEC summit - that the world economy must be rebalanced so that voracious US consumerism is no longer the sole cylinder firing global growth.

Officials said the realignment was a main item of summit discussion prior to an evening dinner, when the leaders continued an APEC tradition by donning specially designed shirts reflecting the host nation's culture.

AFP

China bank regulator: US dollar's decline adding risk


Liu Mingkang, chairman of the China Banking Regulatory Commission

(AFP) – BEIJING — China's chief banking regulator warned Sunday that persistently low US interest rates and a declining dollar were seriously affecting asset prices and threatening the global economic recovery.

China Banking Regulatory Commission Chairman Liu Mingkang told a finance forum in Beijing that Washington's promise to keep interest rates low for an extended period was encouraging a dollar "carry trade" and fuelling massive speculation.

He was referring to investors who have been taking advantage of low US interest rates to borrow cheap credit there to invest in higher-yielding assets elsewhere.

These conditions "are seriously impacting global asset prices and encouraging speculation in stock and property markets," Liu said.

Liu warned the declining US dollar was threatening the global economic recovery, especially in emerging economies.

He spoke at the Beijing International Finance Forum ahead of US President Barack Obama's first visit to China, which was scheduled to start late Sunday.

-- Dow Jones Newswires contributed to this report --

Broadcast pioneer NBC prepares for cable takeover

By DAVID BAUDER (AP)



FILE - In this Oct. 11, 1976 file photo, NBC's "Today" show host Tom Brokaw and newswoman Jane Pauley share a moment prior to Pauley's first appearance on the network morning news program. Eight decades after pioneering the concept of broadcasting, NBC is on the verge of a startling move that illustrates broadcast television's decline. (AP Photo/File)

NEW YORK — Eight decades after pioneering the concept of broadcasting, NBC is on the verge of a startling move that illustrates broadcast television's decline.

Cable TV operator Comcast Corp. is expected to buy a controlling stake in NBC Universal, perhaps as early as next week, bringing the network of Johnny Carson, Jerry Seinfeld, Bob Hope, Milton Berle and Tom Brokaw under the corporate control of the company that owns the Golf Channel and E! Entertainment Television.

"This is highly symbolic," said Tim Brooks, who had worked at NBC for 20 years and now writes books on television history.

Starting Sunday, Vivendi SA has an option to sell its 20 percent stake in NBC Universal. Majority owner General Electric Co. is expected to buy it and then sell a 51 percent stake of the entire NBC Universal unit to Comcast, which serves about a quarter of the nation's subscription TV households.

Broadcast people, the folks who remember when television was ABC, CBS, NBC and little else, used to look down upon cable.

The idea of broadcast TV was implied in the name; the networks tried to reach the broadest possible audience. For cable it's important to do something specific and do it well, and the audience doesn't need to be as large.

NBC Universal Chief Executive Jeff Zucker recognizes this. Cable properties such as USA, SyFy, CNBC and The Weather Channel mean more to NBC Universal's bottom line than staggering NBC, fourth place in the ratings.

And those cable properties — more than the flagship "Peacock" network — were the draw for Comcast. By owning more content, Comcast further hedges its bets as mainly a distributor of shows in case viewers ditch their cable TV subscriptions and migrate to the Internet, mobile devices or a platform that has yet to emerge. The company could charge for the shows or sell ads wherever the viewers are.

In a sense, NBC would become a pioneer again, as it seeks to stay relevant amid intensifying audience fragmentation.

NBC was established as the nation's first radio network in 1926. Its parent company, the Radio Corporation of America, made radios and realized the best way to get people to buy the product was to make sure there were interesting things to listen to.

"Without NBC, there wouldn't be broadcasting as we know it," said Walter J. Podrazik, a consulting curator at the Museum of Broadcast Communications.

NBC was the leading radio network, so powerful in those days it had two networks: NBC-Red and NBC-Blue. It was forced by the Federal Communications Commission in the early 1940s to divest itself of one network. NBC-Blue eventually became ABC. In fact, all three original broadcast networks can be traced back to NBC. One of its original owners, Westinghouse Electric Co., bought CBS in 1995.

Some of NBC's radio profits were funneled into researching the new television technology. NBC began television broadcasts in 1939 by covering the opening of the New York World's Fair.

RCA's chief David Sarnoff took to the airwaves to introduce that broadcast, and his description of the moment — "the birth of a new art bound to affect all society" — was prescient and maybe even understated. The Nielsen Co. reported that just last year, the average American watched four hours and 49 minutes of television each day.

"He was as much a cheerleader as he was an investor," Podrazik said, "and he was right."

In 1947 came the first NBC program that's still around today — Sunday morning's "Meet the Press." But 1948's "Texaco Star Theater" with Milton Berle was television's first big hit. Many people bought their first TVs, or crowded around the few ones available, to see a comic who'd mine for laughs each week by wearing a dress.

Television's early years had NBC and CBS fighting for dominance, with CBS more often than not gaining the upper hand. NBC settled for innovation, and the work of executive Sylvester "Pat" Weaver is still apparent today. He introduced the concept of multiple ads appearing on shows, instead of programs that had single sponsors, according to the Museum of Broadcast Communications.

Weaver expanded television's day by introducing the "Today" and "Tonight" shows, which became huge profit centers for the network.

"Tonight" was particularly influential, with Steve Allen, Jack Paar and, for more than a quarter-century, Carson. His monologues were the bedtime stories for millions, and he introduced hundreds of talented artists to the public. "Saturday Night Live" is a new generation's comic touchstone.

NBC News expanded in the 1960s, and the evening news report with David Brinkley and Chet Huntley made "Good night, David" and "Good night, Chet" simple catch phrases. News is a strong suit for NBC today, with Brokaw retiring at the top and Brian Williams continuing the legacy. The "Today" show has been No. 1 in the ratings for 726 consecutive weeks.

There's been no such consistency in prime time through the years, however.

NBC slumped in the late 1970s and early 1980s, when the "Supertrain" series became a shorthand for a comically inept idea. Spinoff ABC surpassed NBC in ratings. One man changed all that: Bill Cosby's sitcom dominated television in the mid-1980s, as millions of Americans checked in each week on the Huxtable family.

In the 1990s, NBC's promotion team dubbed Thursdays as a "must-see" night of television. The slogan stuck because it was true. The network's run of memorable series including "Cheers," "Seinfeld," "ER," "Frasier," "Friends" and "The West Wing" represented a golden age. NBC was not simply the most popular network. It was the best. That seems more distant each year, and not just in time.

NBC's decline has been slow, steady and sad. Their "must-see" series all ran their course, replaced by nothing comparable. Each of their rivals minted influential, highly popular reality series — Fox's "American Idol," ABC's "Who Wants to Be a Millionaire" and CBS' "Survivor" — yet the best NBC could do were the moderately successful "The Apprentice" and gross-out show "Fear Factor."

Worse yet is Hollywood's impression that NBC now is more interested in saving money than in producing memorable television.

Famed producer John Wells said as much in criticizing the network for canceling his expensive drama "Southland" this fall before the season's first episode aired. Jay Leno's move to prime-time, replacing more expensive scripted show at the 10 p.m. slot, reduced NBC's audience and influence even more.

NBC is turning, some of its fans fear, into something comparable to a cable network in ambition and reach.

Yet Comcast may give the network hope as audiences turn to video on the Internet and mobile phones. NBC is a founding partner in Hulu, an ad-supported site that lets viewers watch shows for free. NBC's combination with Comcast could let the network take advantage of the cable operator's efforts to reach additional platforms.

The fact that Zucker would likely stay at the helm, reporting to Comcast executives, suggests that the cable operator won't be making major changes overnight.

A Comcast takeover is largely symbolic now, though practical reality ultimately may overshadow that as NBC and other broadcasters face declining audiences.

"The question," Brooks said, "is what will they do with it?"