Business news for Mon, 24 Dec 2007 & with word government. 31 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

THE China Development Bank and the Tianjin Binhai New Area signed an agreement to set up a venture capital fund to boost high-technology start-ups in the fastest-growing economic zone in north China. The Ministry of Science and Technology Website released yesterday the joint efforts to kick off the first government-backed venture capital worth two billion yuan (US$270 million) with equal contributions from the CDB and the TBNA. Pi Qiansheng, a vice-ministerial official who heads the TBNA administration, said the government funded and operated venture capital would primarily perform as a fund of funds, an investment fund that has a strategy of holding a portfolio of other investment funds rather than investing in tangible projects. Pi said that the fund of funds will choose outstanding domestic and overseas venture capital funds, including private equity funds, to invest. The selected venture capital funds will be asked to prioritize their investment portfolio in high-technology

CHINA Unicom Ltd, the smaller of the nation's two mobile-phone operators, rose to the highest in Hong Kong trading in almost a month after a report said the country's top economic planning agency supported a breakup of Unicom. The shares gained 3.6 percent to HK$17.36, their best performance since November 30, at the end of trading yesterday. The National Development and Reform Commission said allowing China's fixed-line carriers to acquire Unicom's mobile networks is the most efficient plan for the industry, the Shanghai Securities News said yesterday, citing a research report by the country's top planning body. China, the world's largest mobile-phone market by users, is expected to reorganize the industry by breaking up Unicom into two operators to be run by the fixed-line companies. China Mobile Ltd controls two-thirds of the nation's wireless subscribers and is adding customers at four times the pace of Unicom. "The government is concerned China Mobile is much too

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

GOVERNMENT subsidy support for meat production will be stable even when pork prices fluctuate, the Ministry of Finance said yesterday. Speaking at an online press conference, Zeng Xiao'an, deputy director of the MOF's Department of Economic Development, said the government would take subsidies for piglet keepers into a long-term mechanism framework. "It does not matter whether pork prices are rising or falling, the supportive policies will be successive," said Zeng. "We will only adjust the strength of the policies based on real conditions," Zeng said when asked about the policies' time limit. To combat escalating inflation, China pledged to draw up a series of measures, including more subsidies for farmers. From July next year to the end of June in 2009, subsidies for each reproductive female piglet will be raised from 50 yuan (US$6.75) to 100 yuan, said Zeng. Also, the central government will allocate 2.5 billion yuan next year to support the

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

ALCATEL-LUCENT will pay US$2.5 million to settle charges that it violated US anti-bribery laws by paying for hundreds of trips taken by Chinese officials to secure millions of dollars in contracts. The trips were provided between 2000 and 2003 by Lucent Technologies, prior to its 2006 acquisition by Alcatel SA, according to a US Justice Department statement. Lucent footed the bill for approximately 315 trips for Chinese officials, including sightseeing trips to Las Vegas, Disneyland and the Grand Canyon, the department said. The company paid a US$1-million fine to the Justice Department and US$1.5 million in civil penalties to settle a separate complaint by the Securities and Exchange Commission. The recipients were officials with Chinese state-owned telecommunications companies considered important to securing new business. "Alcatel-Lucent China hasn't further comment on the issue, and we will sustain a healthy and long-term relationship with Chinese government officials

NEW YORK (Reuters) - Merrill Lynch & Co Inc shored up its capital base by as much as $7.5 billion after selling a stake to Singapore's government and an asset manager, and unloading much of a lending business, as it wrestles with huge subprime mortgage losses.

Reuters - Merrill Lynch & Co Inc shored up its capital base by as much as $7.5 billion after selling a stake to Singapore's government and an asset manager, and unloading much of a lending business, as it wrestles with huge subprime mortgage losses.

SAN FRANCISCO (MarketWatch) -- Treasurys were slightly lower Monday, pushing up yields, as firm stock prices decreased the appeal of fixed-income assets in extremely thin pre-holiday trading. U.S. bond trading will end early on Monday, and overnight Japanese and German markets were closed Monday for holidays. "With the holiday-shortened week, our expectations for any paradigm shifting events are pretty light," said David Ader, U.S. government bond strategist at RBS Greenwich Capital. "With the bench players now in the field until the New Year, we would err on the side of limited conviction for any moves over the next few trading sessions." The benchmark 10-year Treasury note was down 7/32 at 100 12/32, with a yield of 4.2%. The 30-year bond was down 10/32 at 106 9/32 with a yield of 4.61%. The two-year note was down 2/32 at 99 26/32 with a yield of 3.21%. On Wednesday, the Treasury Department will sell $22 billion in two-year notes, and on Thursday, it will sell $13 billion in five-year notes.

Merrill Lynch said Monday it will take $6.2 billion in investments from the Singapore government and a mutual fund manager to shore up its capital base, as many analysts expect the investment bank to announce a second consecutive quarterly loss next month. It is the latest instance of a Western bank to seek emergency financing from [...]

THE Shanghai housing authority yesterday put forward nine residential plots of about 810,000 square meters for bidding and another 12 plots partly for residential development, Oriental Morning Post reported today. A total of 4.5 million square meters for residential development has been provided within this year, pushing the year-round total to the highest in recent years. The city has drastically boosted the number of plots for housing projects in the past two months since the government began to hand out land for housing in September, said the report. The plots are in seven districts, including Hongkou, Yangpu, Baoshan and Fengxian, as well as in Chongming County. Nearly 50,000 housing units smaller than 90 square meters will be built in the next two years, accounting for 70 percent of the total residential properties, the report said. The authorities cleared a batch of undeveloped buildings in July and increased a 27 million-square-meter area for constructing small

The government on Monday gave its approval for 19 foreign direct investment proposals amounting to Rs 726.88 crore (Rs 7.268 billion), which include Global Broadcast News Ltd's proposal to sell 26 per cent stake for Rs 500 crore (Rs 5 billion).

WASHINGTON -- After a slow and stumbling start, official Washington is scrambling to try to prevent the unfolding mortgage crisis from pushing the country into recession during an election year. There is a strong feeling, though, that the government will need to do more to avert a financial disaster.

The relentless march of sovereign wealth funds continues apace as the Singapore Government's Temasek vehicle emerged with an 18 per cent stake in Asia-focused banking group Standard Chartered.

Morgan Stanley and the Chinese government said Monday that the U.S. investment bank has determined the range of prices to be used when China's international investment fund converts $5 billion worth of securities into Morgan Stanley stock.

SHANGHAI stocks rose for a fourth day today, pushing the index to its highest close in more than a month since November 21. The Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B shares, jumped 1.37 percent, or 132.48 points, to close at 5,234.26 at 3pm today. The Shanghai index opened at 5,132.91 at 9:30am today, 31.13 points higher than its close at 5,101.78 at 3pm last Friday. Winners in the Shanghai market outnumbered losers 647 to 113 and 86 were unchanged. The Shenzhen Composite Index, which covers the smaller mainland stock market, gained 1.72 percent, or 23.69 points, to 1,399.58. Consumer-related stocks including Suning Appliance Co and Gree Electric Appliances Inc gained after the government said it plans to subsidize farmers' purchases of electrical appliances. Suning Appliances, China's second-biggest home-device retailer, gained 3.76 percent, or 2.47 yuan (34 US cents), to 68.12 yuan. Gree Electric Appliances Inc, China's

Nepal agreed to abolish its monarchy under a deal to bring former communist rebels back into the government.

The year 1984 is more than just a George Orwell novel. It's also when the federal government packed in its geothermal energy program, more or less taking one of Canada's best renewable resources off the radar screen of the public and investors.