Business news for Mon, 24 Dec 2007 & with word economy. 20 news.

SOUTH Korea's consumer confidence declined from a five-year high, signaling spending may slow and crimp growth in Asia's fourth-largest economy. The sentiment index fell to 106 in the fourth quarter, the lowest in three quarters, from 112, the Bank of Korea said yesterday in a report in Seoul. A reading higher than 100 indicates optimists outnumber pessimists. The benchmark Kospi index of stocks has fallen eight percent from a November 1 record of 2,085.45 on concern US subprime-related losses would slow the global economy. Lehman Brothers Holdings Inc this month cut its 2008 growth forecast for South Korea to 4.6 percent from 4.7 percent, Bloomberg News reported. "Consumers were probably very worried by the US subprime crisis," said Lee Sung Kwon, an economist at Good Morning Shinhan Securities Co in Seoul. The yield on a five-year government bond rose two basis points to 5.87 percent in Seoul and the won gained 0.1 percent to 939.65 versus the dollar. The

ASIAN stocks rose for a second day, led by electronics makers, after consumer spending increased more than forecast in the United States, the region's biggest export market. Hon Hai Precision Industry Co, maker of iPods for Apple Inc, and Samsung Electronics Co climbed to the highest in more than a week. The Standard & Poor's 500 Index advanced the most in three weeks last Friday after the report on November spending eased concern about recession in the world's biggest economy. "US shares showed firm gains, and we're seeing the influence in shares today (yesterday)," said Kim Jae Dong, who oversees the equivalent of US$8.6 billion at Korea Investment Trust Management Co in Seoul. BHP Billiton Ltd led an increase among miners after metals prices climbed, and a UK regulator set a deadline for a formal takeover bid for Rio Tinto Group. The MSCI Asia Pacific, excluding Japan Index, rose two percent to 524.1 as of 3:38pm in Hong Kong, with all 10 industry groups climbing.

SRI Lanka's central bank will probably keep its benchmark interest rate unchanged at the highest level in Asia in a bid to contain inflation without threatening economic growth. Central Bank of Sri Lanka Governor Nivard Cabraal will leave the repurchase rate at 10.5 percent for a 10th straight meeting, according to nine of 11 analysts surveyed by Bloomberg News. Two expect a half point increase. The decision is due tomorrow in Colombo. The central bank forecasts the economy will next year expand between seven percent and 7.5 percent, the fastest pace in 30 years, as the government spends money to rebuild the eastern region captured from Tamil Tiger rebels in July. Cabraal said last month that borrowing costs at a five-year high were sufficient to bring inflation below 10 percent next year from about 20 percent now. "The central bank will look to fuel growth as much as possible," said Geeth Balasuriya, an analyst at HNB Stockbrokers Pvt in Colombo. "Although

JAPAN'S Cabinet approved a budget that includes increased spending on rural areas and social welfare, making it harder for Prime Minister Yasuo Fukuda to balance the books by 2011. Japan's deficit is set to widen for the first time in five years and spending will rise 0.2 percent to 83.1 trillion yen (US$732 billion) in the year starting on April 1, according to a budget proposal released in Tokyo, Bloomberg News reported. Fukuda may struggle to meet his deadline as cooling global growth dims the outlook for Japan's export-dependent economy. The ruling Liberal Democratic Party is under pressure to assist ailing regions and elderly voters after it lost control of the upper house in July, making it difficult for it to cut debt. "The current political situation is forcing Fukuda to spend more," said Hidenori Suezawa, chief strategist at Daiwa Securities SMBC Co in Tokyo. "Given that the nation's public debt is rising, the government needs to make drastic reforms in

See the same old holiday decorations on your neighbor's lawn this year? Blame the economy.

BOSTON (MarketWatch) -- William Knapp, chief investment strategist for MainStay Investments, says investors should expect the economy to sidestep a recession in 2008, but noted that even if one occurs, "consumers will barely know it happened."

NEW ORLEANS -- The route to the moon and perhaps to Mars now goes through New Orleans _ and the detour couldn't come at a better time in the city's struggle to rebuild its shattered economy after Hurricane Katrina.

A new report claims that Tennessee's 775,000 hunters and anglers had a significant impact on the state's economy in 2007.

China promised today to develop renewable energy for its fast-growing economy but warned that coal consumption will grow dramatically and avoided embracing binding limits on its greenhouse gas emissions.

This is the China century," says Jim Rogers, standing amid moving boxes in his opulent Manhattan townhouse. "It's time for them to rule the roost." In fact, the 65-year-old former investment partner of George Soros and globe-circling author of Investment Biker is such a believer in the capitalist momentum of the People's Republic that he recently agreed to sell his beloved home and relocate full-time to Singapore - not quite Shanghai, but close enough to the action. It's something he's been considering at least since 2004, when Fortune last wrote about his remarkable prescience in championing a China-driven, worldwide commodities boom. His new book, A Bull in China: Investing Profitably in the World's Greatest Market (Random House, $26.95), is a how-to guide for investors interested in following him to the Far East. Fortune interrupted his packing for a chat about China, commodities, and the teetering U.S. economy.

Despite rosier expectations, Target is muddling through this holiday season, perplexing those who consider the chain a bellwether.

Lee Myung-Bak coasted to victory in South Korea's election by promising to be an andquot;economy presidentandquot; but his party must win upcoming general polls to keep bold reform plans on course, analysts say.

A robust economy, an increasingly clear political landscape and promises of hefty state spending make Russian stocks an attractive bet, but any slowdown in the global economy could put a damper on that performance.

Where do you draw the line when you're trying to spread the word that people should spend money in locally owned businesses?

In two of the last three months, Target's sales growth has dipped below that of its rival, Wal-Mart. Analysts are scrutinizing its performance for clues about the health of the economy.

Despite the sagging housing market and the pain for related businesses, Chandler's economy has a bright spot: Development of the airpark is moving more quickly than expected.

Too many houses on the market depressed prices. Hundreds of customers struggled or failed to make their mortgage payments, and more interest-rate resets loom. Foreclosures spiked.

Christmas shoppers have defied the financial gloom gripping the economy by filling their shopping trolleys with more and better quality produce than ever before.

Fresh signs of a slowdown in Britain's economy emerged this weekend, as new data revealed that house prices fell for the third consecutive month in December, while the British Retail Consortium warned that heavy discounting on the high street may have made for a much less merry Christmas than retailers had been hoping for.

The international economy faces a year of living dangerously. When the world awakes on New Year’s Day, the hangover that many of us may be suffering will be a minor worry alongside the collective headache inflicted by the cocktail of threats menacing the global outlook.