Business news for Mon, 17 Dec 2007 & with word slowing. 4 news.

CONSUMER prices in China are expected to fall significantly next year while consumption may replace export and investment to become a major driver of the country's economy, Deutsche Bank said. In a report released yesterday, the bank maintains the forecast of a modest slowing in the nation's gross domestic product to 10.4 percent in 2008 from 11.5 percent this year, according to its December issue of Asia Economics Monthly. "We expect CPI (consumer price index) inflation to fall visibly to an average of 3.8 percent next year, down from the 6.5 percent year on year in October and an average 4.6 percent in 2007." The German bank made its projection based on several trends highlighted recently by the National Development and Reform Commission: - Inflation has been mainly driven by food items and is structural in nature, although international and cost factors also played a role. - This year's domestic wheat and rice output has grown and will be sufficient to meet

ASIAN stocks fell the most in four months, led by Samsung Electronics Co and HSBC Holdings Plc, on concern accelerating inflation will limit interest-rate cuts, threatening global growth. Samsung declined the most in three weeks. HSBC and Cheung Kong (Holdings) Ltd paced losses in Hong Kong, where interest rates track those set by the Federal Reserve, after United States consumer prices rose the most since 2005. Centro Properties Group plummeted 76 percent in Sydney after the owner of US shopping malls said it was struggling to refinance debt. "Sentiment in the region is getting worse," said David Ng, who helps manage US$954 million at Hwang-DBS Asset Management Sdn in Kuala Lumpur. "First we had slowing US growth; now add on inflation fears. That makes for a bad combination." The MSCI Asia Pacific Index lost 2.9 percent to 152.28 as of 6:49pm in Tokyo, its sharpest decline since August 17, Bloomberg News said. The benchmark is set for its lowest annual gain

Loews, the insurance-to-hotel group, is to sever its 40-year ties with its $14bn tobacco business Lorillard, in a move that underlines the US conglomerate's desire to capitalise on the slowing domestic economy

Growing demand for GM and Ford cars is helping compensate for slowing sales at home. New York Motors, southeast of Moscow's city center, is the busiest Ford dealership in the world.