thailand

HIV Vaccine Study May Bring `Glimmer’ of Hope After Merck, Sanofi Setbacks

September 23, 2009

By Simeon Bennett and Jason Gale Sept. 23 (Bloomberg) — The search for a vaccine to prevent HIV has eluded scientists for a quarter of a century. They will find out if they are a step closer when the results of the world’s largest HIV vaccine trial are presented tomorrow. The U.S.-funded study of 16,000 volunteers involves a vaccine that combines two older shots developed by Sanofi- Aventis SA and VaxGen Inc. While scientists aren’t holding out for a major breakthrough, they are hopeful the data will give them some indication that they are heading in the right direction, said Marie-Paule Kieny , director of the World Health Organization’s Initiative for Vaccine Research in Geneva. The results presented in Bangkok may be the first turning point since 2007, when an attempt by Whitehouse Station, New Jersey-based Merck & Co. was terminated after the shot appeared to boost people’s chances of becoming infected. It was one of several fizzled attempts to slow the spread of AIDS, which infects about 6,800 new people every day. “I don’t think there is a lot of expectation that the efficacy of this vaccine will be very high,” Kieny said in a telephone interview from Oxford, England. “Any hint towards identifying something which is protective in humans would be good news.” The Thai study looked at whether different infection- fighting strategies devised by Paris-based Sanofi and VaxGen could be combined in a two-pronged approach. Trojan Horse The first vaccine, called ALVAC, uses a canarypox virus that’s been disabled so as not to cause sickness in humans as a Trojan horse to smuggle three genetic fragments of HIV into the body. It’s designed to coax the immune system to issue so-called T-cells to hunt and kill infected cells. The second shot, called AIDSVAX, contains an HIV protein called gp120 that the virus uses to enter human cells. It’s designed to encourage the body to produce neutralizing antibodies to destroy HIV viruses before they infect healthy cells. Both vaccines failed in previous trials where they were tested separately. Sanofi, which made ALVAC, stopped development of the shot after a study showed it didn’t boost the body’s immune system. VaxGen, a venture spun off in 1995 from South San Francisco, California-based biotech company Genentech Inc., ceased development of AIDSVAX in 2003 after a trial showed it didn’t prevent people from getting HIV. The Global Solutions for Infectious Diseases , a South San Franciso-based non-profit organization, acquired the rights to VaxGen’s shot. ‘Glimmer of Success’ In 2004, a group of U.S. AIDS researchers said in a letter to the journal Science that the trial of the combined vaccines would probably disappoint and shouldn’t be allowed to proceed because of the failure of the two previous studies. “Many people in the vaccine research field will not be surprised if the ALVAC-AIDSVAX vaccine regimen proves to be ineffective,” the New York-based AIDS Vaccine Advocacy Coalition said in a preview of the trial results e-mailed to Bloomberg. “However, history tells us that the development of any vaccine involves decades of work and a range of disappointments before the first glimmer of success.” The researchers enrolled volunteers in Thailand’s Chon Buri and Rayong provinces, which have the nation’s highest rates of HIV, according to the study Web site. Subjects were given four doses of the ALVAC vaccine and two of the AIDSVAX shot over six months, then monitored for three years. They were also given condoms and advice on safe sex. An interim analysis in July 2007 showed there were no safety concerns with the vaccines, the researchers said at the time. The trial was funded by the National Institute of Allergy and Infectious Diseases, the National Institutes of Health and the U.S. Army Medial Research and Materiel Command. To contact the reporters on this story: Simeon Bennett in Singapore at sbennett9@bloomberg.net ; Jason Gale in Singapore at j.gale@bloomberg.net .

Read the full article →

Italy’s Post Office Embraces Nepotism as Recruitment Tool to Reduce Costs

September 22, 2009

By Flavia Krause-Jackson and Flavia Rotondi Sept. 22 (Bloomberg) — Italy’s postal service , the country’s biggest employer , has proposed an innovative way to cut costs and usher out older workers: nepotism. Under a draft plan detailed to unions, postal workers at 140 branches who agree to early retirement can cede permanent job contracts to their children. The “heir” must be at least 30 years old with a high school diploma. Talks on the policy are at an “advanced stage,” and it could be implemented by early October, said Walter de Candiziis, head of Failp-Cisal, the union that first suggested the plan in 1997. Italy is mired in its worst recession since World War II, and unemployment may swell to more than 10 percent this year, the highest in almost a decade, the Organization for Economic Cooperation and Development estimates. Italy’s youth unemployment rate has soared to 26 percent, 20 points higher than the average for the 30 nations of the OECD. Under the new proposal, postal workers can deliver job security to their kids, at a time when most Italian companies are shying away from offering such jobs for life. For employers, the permanent contracts are difficult to break when staff cuts are needed and they require more generous social-security contributions that increase as the worker ages. Pressure on Costs “There is pressure on personnel costs and that will get management thinking of ways to cut back in a difficult economic climate,” Myriam Fernandez De Heredia , an analyst at Standard & Poor’s in Madrid, said in a telephone interview. Poste Italiane, created in 1860 after the unification of Italy, had revenue of 17.9 billion euros ($26.4 billion) last year, according to its annual report . Poste employs 155,732 workers, about twice as many as Fiat SpA, Italy’s biggest manufacturer, has in the country. Personnel costs alone total 5.9 billion euros a year, according to Fernandez De Heredia. Nepotism has deep roots in Italy. The word derives from the Latin for nephew and has its origins in the practice of popes elevating their nephews to the position of cardinal to create papal dynasties. The Poste plan comes at a time when the government is trying to break with that history and promote meritocracy in the public administration to boost Italy’s declining productiveness. Italy ranked 48th in the World Economic Forum’s 2009 global competitiveness ranking, trailing countries such as Estonia, Thailand and Barbados. ‘Worst of Italy’ Public Administration Minister Renato Brunetta is trying to slash 40 billion euros in government spending over five years by forcing out civil servants who don’t fulfill productivity targets. “I will fight against the worst of Italy,” Brunetta said Sept. 11. “The Italy of cunning, the Italy of nepotism, the dirty Italy.” Five of six unions representing postal workers back the jobs-for-kids plan, which is subject to approval by the postal service’s board, officials say. About 1,500 Poste workers would be eligible, said De Candiziis, secretary general of the Failp- Cisal union, which first proposed the idea. “We thought it would good to have a change of guard and bring new people in,” De Candiziis said in a telephone interview. “The company informed us verbally they were moving forward. It could happen by early October.” The postal service confirmed that the plan is being considered, without giving more details. To qualify, a retiring worker would have to be at least 58 years old and have made 35 years of pension contributions. Candidates looking to take their parents’ place at the post office would be subject to a job interview. The Finance Ministry holds 65 percent of Poste and Cassa Depositi & Prestiti, the government’s lending arm, owns the rest. Italian governments have periodically floated the idea of privatizing the post office to raise cash to trim Europe’s biggest debt. — With assistance by Giovanni Salzano in Rome and Marco Bertacche in Milan. Editor: Jerrold Colten , Andrew Davis To contact the reporter on this story: Flavia Krause-Jackson in Rome at fjackson@bloomberg.net ; Flavia Rotondi at frotondi@bloomberg.net

Read the full article →

China Investment Buys 15% Noble Stake for $850 Million to Gain Commodities

September 21, 2009

By Kyunghee Park Sept. 22 (Bloomberg) — China Investment Corp., the nation’s sovereign wealth fund, bought a 15 percent stake in commodity supplier Noble Group Ltd. as it increases investments in raw materials. Noble will sell $850 million worth of new and existing shares to CIC at 8.1 percent less than the last traded price. The sale included 135 million shares owned by Chief Executive Officer Richard Elman and 438 million new shares, the Hong Kong- based company said in a statement. CIC may invest in “undervalued” commodity assets, Executive Vice President Jesse Wang said in March after losing money on financial firms including Blackstone Group LP and Morgan Stanley. Noble, which trades coal, iron ore and metals, said it will use S$926 million ($654 million) cash from the new shares to expand investment in global agricultural commodities. “CIC started accelerating its overseas investment pace in the most recent three to six months, they are showing a clear direction, that is from paper assets to commodities,” said Zhang Zhiming , director of asset allocation research at HSBC Holdings Plc in Hong Kong. “If they hold long-term positions in commodity assets, they need a trading house.” Noble has risen 125 percent this year, making it the fourth-best performer on the Straits Times Index. The company’s second-quarter profit doubled as China boosted raw material imports to fuel $586 billion of stimulus spending needs. Cash Heavy CIC The company traded at S$2.30 before they were suspended on Sept. 15 when the company said it was in talks with an unspecified investor. The shares will remain suspended until Sept. 23. CIC will pay S$2.1137 each for the shares. It has been buying shares in the property and resources sectors in recent months. The fund had 87.4 percent of its assets of $297.5 billion invested in cash or equivalents last year, it reported last month. In agriculture, Noble supplies cocoa, sugar, coffee and sugar and has operations in countries including Brazil, central America, Thailand, South Africa, India and Russia, according to its Web site . Sales from its agricultural business dropped 30 percent to $3.38 billion in the first half of this year, accounting for a quarter of its total revenue of $13.3 billion. “What China needs, Noble helps to provide,” said Patrick Yau , an analyst Macquarie Group Ltd. in Hong Kong. He rates Noble stock as “neutral.” Chinese Demand China is the world’s biggest importer of soybeans, soybean oil and cotton, according to the U.S. Department of Agriculture. Commodity demand in China “is back on track in a very big way,” CLSA Research Ltd. said last week. “The newly issued shares will provide the Noble Group with additional capital to pursue strategic investments in key agricultural markets globally,” Noble said in the statement. Merrill Lynch (Singapore) Pte. Ltd. acted as the sole placement agent for Noble and JPMorgan Securities (Asia Pacific) Ltd. was CIC’s financial adviser, Noble said in the statement. For Related News and Information: Stories on bulk shipping: TNI BULK MAR Link to Company News:NOBL SP CN Top commodities stories:TOP CMD

Read the full article →

India Beats China in Auto Exports Amid `World-Wide Shift’ to Smaller Cars

September 7, 2009

By Vipin V. Nair Sept. 7 (Bloomberg) — India, whose auto market is 19 percent of China’s, has the edge in exports. Suzuki Motor Corp., Hyundai Motor Co., and Nissan Motor Co. are making India a hub for overseas sales of minicars as incentives lift demand for smaller, fuel-efficient autos. Helped by cheaper labor and a surging local market, India this year overtook China in auto exports and is challenging Thailand and South Korea as an alternative production center in Asia. “There is a worldwide shift toward fuel-efficient, compact cars,” said Jayesh Shroff , who helps manage about $7 billion of assets including carmaker shares at SBI Asset Management Co. in Mumbai. “This offers a huge potential for India and it can emerge as a leader in the small car segment.” Maruti Suzuki India Ltd.’s exports more than doubled to 79,860 this year. It aims to ship 130,000 vehicles in the year to March, 86 percent more than last year, said Chairman R.C. Bhargava. The automaker rose as much as 2.5 percent to a record 1,585 rupees and changed hands at 1,564 rupees at 11:57 a.m. in Mumbai. Suzuki rose 1.9 percent to 2,160 yen in Tokyo while Hyundai rose 4.7 percent to 112,500 won in Seoul trading. Maruti Suzuki sold a monthly record 14,847 vehicles overseas in August. India’s exports of minicars and hatchbacks gained 44 percent between January and July to 201,138, according to the Society of Indian Automobile Manufacturers. Total exports, including vans, sport-utility vehicles and trucks, rose 18 percent to 229,809. Cars are exported to over 100 countries, and don’t include the U.S. or Japan. Full Control In contrast, China’s exports slumped 60 percent to 164,800 between January and July, according to government data. Vehicles produced in Thailand for export declined 43 percent to 263,768, according to the Thai Automotive Club. South Korean exports dropped 31 percent to 1.12 million units, according to the Korea Automobile Manufacturers Association . Japan, the world’s largest automobile producer and exporter, shipped 1.77 million cars, trucks and buses. Of those, 135 were minicars and 439,849 were compacts. Besides the attraction of serving a market where three of four cars bought are compacts, automakers will favor India to set up an export base as China requires companies to form local joint ventures and India doesn’t, said Ashvin Chotai , London- based managing director of Intelligence Automotive Asia Ltd. “Natural Place” “It makes companies more comfortable to have an export strategy when they have full control,” he said. “They don’t have to give up some parts of the profits to their partner.” Small cars will account for 95 percent of the 690,000 passenger vehicles India will export in 2015, according to Tim Armstrong , Paris-based director of IHS Global Insight Inc. In 2016, India may share the top slot with Japan as the world’s biggest small car producer, building as many as 3 million units. “All of India’s expertise has been the small car,” Armstrong said. “So obviously it’s a natural place to turn to” to set up export units. Toyota Motor Corp. and General Motors Co. are also expanding Indian factories and plan to export compact vehicles. Hyundai, South Korea’s biggest carmaker, plans to export 300,000 cars from India this year, more than its sales in the local market, a first since setting up a plant a decade back. “Enormous Money” Nissan Motor Co., Japan’s third-biggest carmaker, will set up its first factory in India by May and use it to export entry- level cars to Europe. Spending on the plant is the most out of its global investments this year, said Colin Dodge , executive vice president. Production in India will help Nissan save at least five percent of costs, he said. “We needed a car that can make money in Europe,” Dodge said in a June interview. “Five percent saving is very significant. It’s enormous money for us.” Indian labor costs are about 10 percent of that in the U.S. and Europe and raw material costs in the nation are lower by 11 percent, according to Puneet Gupta , an analyst at CSM Worldwide Inc., an industry consultant. Developing a car from the design stage in India may take $225 million to $250 million, while in Europe it may be $400 million. “The single-biggest opportunity in the auto industry for India is the small car,” said Vikas Sehgal , a Chicago-based partner at Booz & Co., an industry consultant. “If India loses in the small car market, it has nothing.” To contact the reporter on this story: Vipin V. Nair in Mumbai at Vnair12@bloomberg.net .

Read the full article →

India Auto Exports Edge Out China’s Amid `World-Wide Shift’ to Small Cars

September 6, 2009

By Vipin V. Nair Sept. 7 (Bloomberg) — India, whose auto market is 19 percent of China’s, has the edge in exports. Suzuki Motor Corp., Hyundai Motor Co., and Nissan Motor Co. are making India a hub for overseas sales of minicars as incentives lift demand for smaller, fuel-efficient autos. Helped by cheaper labor and a surging local market, India this year overtook China in auto exports and is challenging Thailand and South Korea as an alternative production center in Asia. “There is a worldwide shift toward fuel-efficient, compact cars,” said Jayesh Shroff , who helps manage about $7 billion of assets including carmaker shares at SBI Asset Management Co. in Mumbai. “This offers a huge potential for India and it can emerge as a leader in the small car segment.” Maruti Suzuki India Ltd.’s exports more than doubled to 79,860 this year. It aims to ship 130,000 vehicles in the year to March, 86 percent more than last year, said Chairman R.C. Bhargava. Maruti Suzuki sold a monthly record 14,847 vehicles overseas in August. India’s exports of minicars and hatchbacks gained 44 percent between January and July to 201,138, according to the Society of Indian Automobile Manufacturers. Total exports, including vans, sport-utility vehicles and trucks, rose 18 percent to 229,809. Cars are exported to over 100 countries, and don’t include the U.S. or Japan. In contrast, China’s exports slumped 60 percent to 164,800 between January and July, according to government data. Vehicles produced in Thailand for export declined 43 percent to 263,768, according to the Thai Automotive Club. Full Control South Korean exports dropped 31 percent to 1.12 million units, according to the Korea Automobile Manufacturers Association . Japan, the world’s largest automobile producer and exporter, shipped 1.77 million cars, trucks and buses. Of those, 135 were minicars and 439,849 were compacts. Besides the attraction of serving a market where three of four cars bought are compacts, automakers will favor India to set up an export base as China requires companies to form local joint ventures and India doesn’t, said Ashvin Chotai , London- based managing director of Intelligence Automotive Asia Ltd. “It makes companies more comfortable to have an export strategy when they have full control,” he said. “They don’t have to give up some parts of the profits to their partner.” Small cars will account for 95 percent of the 690,000 passenger vehicles India will export in 2015, according to Tim Armstrong , Paris-based director of IHS Global Insight Inc. In 2016, India may share the top slot with Japan as the world’s biggest small car producer, building as many as 3 million units. “Natural Place” “All of India’s expertise has been the small car,” Armstrong said. “So obviously it’s a natural place to turn to” to set up export units. Toyota Motor Corp. and General Motors Co. are also expanding Indian factories and plan to export compact vehicles. Hyundai, South Korea’s biggest carmaker, plans to export 300,000 cars from India this year, more than its sales in the local market, a first since setting up a plant a decade back. Nissan Motor Co., Japan’s third-biggest carmaker, will set up its first factory in India by May and use it to export entry- level cars to Europe. Spending on the plant is the most out of its global investments this year, said Colin Dodge , executive vice president. Production in India will help Nissan save at least five percent of costs, he said. “We needed a car that can make money in Europe,” Dodge said in a June interview. “Five percent saving is very significant. It’s enormous money for us.” Indian labor costs are about 10 percent of that in the U.S. and Europe and raw material costs in the nation are lower by 11 percent, according to Puneet Gupta , an analyst at CSM Worldwide Inc., an industry consultant. Developing a car from the design stage in India may take $225 million to $250 million, while in Europe it may be $400 million. “The single-biggest opportunity in the auto industry for India is the small car,” said Vikas Sehgal , a Chicago-based partner at Booz & Co., an industry consultant. “If India loses in the small car market, it has nothing.” To contact the reporter on this story: Vipin V. Nair in Mumbai at Vnair12@bloomberg.net .

Read the full article →

Tesco Rations Sugar in Malaysia as Global Price Surge Encourages Smuggling

September 4, 2009

By Ranjeetha Pakiam Sept. 4 (Bloomberg) — Kuala Lumpur baker Serene Chin is having trouble keeping her egg tarts sweet. A sugar shortage prompted her local Tesco Plc hypermarket to impose a 2 kilogram- per-customer ration, forcing her to make several trips a week. “This current shortage is really tiresome,” said Chin, who normally buys 48 kilograms at a time for her John King’s bakery. “Sugar is necessary for the people.” Supplies of the sweetener are scarce in Malaysia because of a global shortage and a decades-old government price cap that encourages people to smuggle sugar across the border into Thailand, where it fetches double the price. Almost every vehicle stopped at the border is carrying controlled-price items like sugar and cooking oil, said Domestic Trade and Consumer Affairs Minister Ismail Sabri Yaakob . Customs has begun 35 investigations, more than twice the number last year. “If you put a ceiling on local prices, when the difference between global and local prices widens, it makes no sense to retailers to sell sugar domestically,” said Suhaimi Ilias , chief economist at Maybank Investment Bank Bhd. in Kuala Lumpur. The government needs “more flexible price controls.” Raw sugar futures have doubled this year to a 28-year high, after India, the biggest consumer, had its driest June in 83 years, reducing domestic supplies, and crops in parts of Brazil, the largest grower, were wrecked by rainfall four times more than normal. Malaysia spent 720 million ringgit ($204 million) on sugar subsidies this year, Ismail said. World Shortage World demand for sugar will exceed supply by as much as 5 million tons over the next 12 months, the International Sugar Organization estimates. In Malaysia, the price is set at 1.45 ringgit per kilo, or 1.55 ringgit in the eastern states of Sabah and Sarawak. In Thailand, the world’s second-biggest exporter, it can fetch as much as 2.90 ringgit, Ismail said. Malaysia introduced price controls on essential items in 1974 to ensure food security and cushion volatility in the commodities markets. To prevent a run on sugar in the shops during the monthlong peak demand period of Ramadan, which started Aug. 22, retailers are rationing supplies. Enforcement agencies have stepped up border checks and wholesalers who are caught hoarding sugar will be stripped of their licenses and blacklisted, Ismail said. About 10 tons of sugar have been confiscated from people carrying the sweetener over the Thai border this year, the Customs Department said. Under the 1967 Customs Act, sugar smugglers face up to three years in jail or a fine of at least 100,000 ringgit, or both. Ramadan Fast In an effort to meet higher demand before Ramadan, when Muslims break their daylong fast with large meals at dinner, sugar refiners including Malayan Sugar Manufacturing Co., a unit of Robert Kuok’S PPB Group, and Central Sugar Refinery Sdn. Bhd. increased production 20 percent in August to 120,000 tons a month, Ismail said. The state compensates refiners for selling a set quota of sugar below cost, based on their 2008 sales. No more than 10 percent of locally made sugar is exported, said domestic trade ministry Secretary-General Mohd Zain Mohd Dom. Manufacturers are slowing production as the subsidy for the year is running out, the Star newspaper said, citing Mohd Zain. “If panic buying continues, no matter how much we load, sugar will run out in the shops,” said Ismail. Ministry investigations show the black market price for sugar ranges between 1.50 ringgit and 1.70 ringgit, he said. The government has offered a reward of up to 10,000 ringgit to anyone with information on hoarders or smugglers. Tesco Order Food stores across the country are rationing sugar supplies of have run out, local newspapers reported. Tham Weng Tuck, grocery manager at the Tesco store, said supplies were less than ordered and may not be enough during the festive season. “We may order 2,000 kilograms, but only 1,000 kilos are delivered,” said Tham. Marlene Kaur, corporate affairs director for Tesco Malaysia, said the temporary 2kg ration was required by the government “to minimize any possible shortage of supply.” Muhammad Sha’ani Abdullah, secretary general of the Federation of Malaysian Consumers Associations , said the government should set up a database so that subsidies go only to the poor and not to industries that use sugar in their products. “We don’t agree with subsidies across the board because it is very wasteful and goes to the non-target groups,” said Muhammad Sha’ani. “Subsidies are given to provide a safety net for the lower-income groups.” He suggested that sugar be sold at higher prices for bakeries and wholesalers, or that subsidies be given in the form of low-cost housing or cheaper public transport. Subsidy Defense Ismail dismissed any suggestion of removing subsidies. “The government gives subsidies to help the people,” he said. Instead, he said, the government would step up efforts to stop the smuggling, including handing out leaflets to people crossing the border, informing them that it is an offence to take out large amounts of controlled price items. Malaysians consume an average of 26 teaspoons of sugar a day, compared to 17 teaspoons in the 1970s, S. M. Mohamed Idris, president of the Consumers Association of Penang, said in a statement dated July 24. “An increasing amount of sugar consumed by the public is in industrially prepared drinks and food,” said Mohamed. Other price-controlled items in Malaysia include gasoline, diesel, wheat flour, white bread and cooking oil. As for Chin, the sugar shortage has forced her to look beyond the hypermarkets and source the sweetener from suppliers who charge 1.70 ringgit per kilo, although the price of her egg tarts remain the same at 1.80 ringgit each. “I have no choice but to pay more,” she said. To contact the reporter on this story: Ranjeetha Pakiam in Kuala Lumpur at rpakiam@bloomberg.net

Read the full article →

Kuznetsova, Wozniacki, Tsonga Win as Day 2 of U.S. Open Begins

September 1, 2009

By Mason Levinson Sept. 1 (Bloomberg) — Former champion Svetlana Kuznetsova , Denmark’s Caroline Wozniacki and Frenchman Jo-Wilfried Tsonga each earned straight-set victories as the second day of the U.S. Open began. Kuznetsova, who in 2004 became the first Russian woman to win a U.S. Open singles title, beat Germany’s Julia Goerges 6-3, 6-2 in a first-round match on the Arthur Ashe Stadium court in Flushing Meadows, New York. Kuznetsova, 24, broke the 20-year-old Goerges’s serve five times and was broken twice herself in the 62-minute match. She’ll face either Thailand’s Tamarine Tanasugarn or Latvia’s Anastasija Sevastova in the second round. Tsonga, seeded seventh, beat American wild-card entry Chase Buchanan 6-0, 6-2, 6-1, winning 88 percent of his first serves, including eight aces. The 24-year-old Tsonga reached the third round in both of his previous appearances in the tennis season’s final Grand Slam tournament. He’ll face either Finland’s Jarkko Nieminen or Italy’s Fabio Fognini in the second round. Wozniacki, 19, the ninth-seeded woman, beat Kazakhstan’s Galina Voskoboeva 6-4, 6-0, winning seven break points while being broken three times in the 79-minute match. Wozniacki reached the fourth round of the U.S. Open a year ago. She’ll face Croatian Petra Martic in the next round. Later today on the Arthur Ashe Stadium court, top-seeded Dinara Safina of Russia begins her tournament against Australia’s Olivia Rogowska, and fourth-seeded Novak Djokovic of Serbia takes on Ivan Ljubicic of Croatia in men’s play. Tonight, Maria Sharapova , the 2006 champion from Russia, plays Bulgaria’s Tsvetana Pironkova and Britain’s Andy Murray , the No. 2 seeded man, faces Latvia’s Ernests Gulbis. To contact the reporter on this story: Mason Levinson in New York at mlevinson@bloomberg.net .

Read the full article →

South Korea’s Won Paces Weekly Decline in Asia Currencies on China Concern

August 20, 2009

By David Yong Aug. 21 (Bloomberg) — Asian currencies were headed for a second weekly decline, led by South Korea’s won and the Indonesian rupiah, on concern tighter credit in China will curb spending in the world’s fastest-growing major economy. The Bloomberg-JPMorgan Asia Dollar Index, which tracks Asia’s 10 most-used currencies excluding the yen, this week reached its lowest level in a month as the Shanghai Composite Index of shares dropped 3.8 percent. China plans to tighten capital requirements for banks, threatening to curb the record lending that’s fueled a 60 percent rally in the nation’s stock benchmark this year, three people familiar with the matter said. “The concern about events in China is overshadowing the market even when there are signs of economic recovery,” said Mohd Yazid Safuan , head of treasury sales and trading at Al Rajhi Banking and Investment Corp. in Kuala Lumpur. “We are looking at better numbers in the U.S. going into 2010 and this should benefit” the region’s economies and currencies, he said. The won dropped 1.2 percent from the end of last week to 1,254.30 per dollar as of 1:10 p.m. in Seoul, according to data compiled by Bloomberg. The rupiah slid 0.9 percent to 10,050, while the ringgit fell 0.3 percent to 3.5270. Emerging-market equity funds recorded $946 million of outflows in the week ended Aug. 19, the most since mid-December 2008, according to EPFR Global , which tracks $10 trillion of assets worldwide. The MSCI Asia Pacific Index of stocks was set for a 3.6 percent weekly drop, its worst performance in five months, and the Asia Dollar Index slid 0.3 percent. Lending Curbs The yen strengthened to 93.61 per dollar in Tokyo from 94.19 in New York late yesterday and 94.94 at the end of last week. The currency is perceived as a safe haven and tends to appreciate as investors’ risk appetite falls. The China Banking Regulatory Commission sent a draft of rule changes to banks on Aug. 19 requiring them to deduct all existing holdings of subordinated and hybrid debt sold by other lenders from supplementary capital, according to people who have seen the document. As a result, banks may need to rein in lending or sell shares to lift capital adequacy ratios to the 12 percent mandated by the regulator. A drop in lending may curb demand for goods produced in the rest of Asia. China’s imports from the region climbed 13 percent to a record $703 billion in 2008, before slumping 29 percent from a year earlier to $252 billion in the six months through June. The nation, including Hong Kong, is the No. 1 export destination for Japan, South Korea and Taiwan. Weaker Won Korea’s currency dropped 0.6 percent today after Standard & Poor’s said the nation faces an “event risk” related to possible leadership transition in North Korea, inhibiting its credit-rating outlook. Recovery in Asia’s fourth-largest economy “is mainly due to the fiscal expansion by the government,” Finance Minister Yoon Jeung Hyun said in Seoul today. “The environment may see uncertainty for some time and recovery may not exceed the level of the pre-crisis level,” he said. The Philippine peso was little changed in offshore trading as local markets were shut for a holiday. The currency slumped 0.8 percent this week, the most in two months, after the government on Aug. 19 reported a budget deficit of 188 billion pesos ($3.9 billion) for the last seven months, equivalent to 75 percent of its full-year projection. Taiwan GDP The Taiwan dollar rose 0.1 percent today to NT$32.935 after second-quarter gross domestic product figures showed the island is recovering from a recession. The economy contracted 7.5 percent from a year earlier, less than the 10.1 percent recorded for the first quarter and the 7.8 percent forecast by economists in a Bloomberg survey. The island’s currency slipped 0.1 percent this week. “We still see some upside for the Taiwan dollar,” said Suan Teck Kin , an economist in Singapore at United Overseas Bank Ltd. “I don’t see the central bank allowing the currency to strengthen very significantly. Exports are still very important to Taiwan.” Elsewhere, Thailand’s baht was little changed for the week at 34.03 per dollar and the Chinese yuan was at 6.8322, having barely moved from 6.8342 on Aug. 14. To contact the reporter on this story: David Yong in Singapore at dyong@bloomberg.net ;

Read the full article →

Thailand Stock Index May Decline to 610 on Sell Signal: Technical Analysis

August 18, 2009

By Anuchit Nguyen Aug. 18 (Bloomberg) — Thailand’s benchmark stock index may drop a further 3.5 percent after a trading momentum chart showed a sell signal, Tisco Securities Co. said. The SET Index may fall to a key support level of 610 next week, after the Moving Average Convergence-Divergence oscillator showed “negative divergence,” Viwat Techapoonpol, a Tisco analyst, wrote in a report today. The daily MACD line, based on the past 12 and 26 days, yesterday dropped below the signal line — based on the 9-day moving average — for the first time since July 20, according to data compiled by Bloomberg. “The SET may have some correction in the next two weeks before rallying again in September,” Viwat said. “The index may hold steady in the next two days before dropping further until the middle of next week.” The benchmark index dropped 3.4 percent to 632.05 yesterday, its biggest decline since May 14. The measure was little changed today, slipping 0.1 percent to 631.35 as of 11:10 a.m. in Bangkok. Technical sellers usually step in when the MACD drop below its signal line, a so-called bearish crossover. MACD charts can indicate whether a price shift is a change in trend or a short- term deviation, by comparing moving averages based on 9, 12 and 26-day periods. In technical analysis, investors and analysts study charts of trading patterns and prices to forecast changes in a security, commodity, currency or index. To contact the reporter on this story: Anuchit Nguyen in Bangkok at anguyen@bloomberg.net

Read the full article →

North Korea Moves May Signal Sanctions Working, U.S. Envoy Goldberg Says

August 17, 2009

By Indira A.R. Lakshmanan Aug. 18 (Bloomberg) — North Korean overtures to resume tourism and family reunions with South Korea may be a sign that international sanctions are putting pressure on Kim Jong Il ’s regime, the U.S. envoy working on enforcing the measures said. If “this is a signal” that United Nations sanctions on financial transactions and illicit trade are forcing the North to reconsider its belligerent actions and return to diplomacy, “it would be welcome, and the door is open,” Ambassador Philip Goldberg said in an interview yesterday in Washington. Goldberg coordinates the implementation of UN Security Council resolutions imposed on North Korea for carrying out nuclear and missile tests. The U.S. wants the North to resume international talks aimed at dismantling its nuclear-arms development work. State Department spokesman Philip J. Crowley said yesterday that based on the North’s decision to resume tours and reunions and release foreign detainees, “one might infer that North Korea’s feeling some pressure, whether it’s political pressure, economic pressure or a combination of the two.” Goldberg sets off today for visits to Thailand, Singapore, South Korea and Japan to talk about enforcement issues. He has already conferred with officials in China, Russia and Malaysia. The envoy said the U.S. will be in touch with Chinese officials regarding the Dandong, China, branch of Korea Kwangson Bank, which the U.S. Treasury Department last week blacklisted for allegedly violating the UN resolutions by doing business with two North Korean companies on the sanctions list. Nuclear Effort Goldberg described the sanctions on North Korean entities singled out by the UN for involvement in the North’s ballistic missile and nuclear programs as “a means to an end” — an attempt to force the communist regime to abandon the efforts. North Korea’s decision to resume tours to an eastern mountain resort and an ancient border city and to schedule an Oct. 2-4 meeting between relatives separated since the Korean War comes on the heels of other goodwill gestures. The regime freed two American journalists to former President Bill Clinton Aug. 5 and released a South Korean worker last week who had been detained since March. Bill Clinton will confer with President Barack Obama today at the White House. Return to Talks Whether the North’s overtures to reopen economic and cultural ties with the South represent a step toward its return to six-nation talks involving the U.S., South Korea, Japan, China and Russia “only the North can say,” Goldberg said. Pressure on North Korea, even from the North’s historical allies China and Russia, has mounted since May, when the regime launched its second illicit nuclear test since 2006 and said it would no longer abide by the 1953 armistice that ended the Korean War. Tours to North Korea’s Mount Geumgang, or “Diamond Mountain” resort, were suspended a year ago after North Korean patrol guards shot and killed a South Korean tourist for straying into a restricted area. Tourism to the ancient city of Gaeseong, site of a joint-venture industrial park, was suspended a few months later. In a meeting during the weekend with Hyun Jeong Eun, the chairwoman of South Korea’s Hyundai Group , the main tour operator, North Korean leader Kim pledged to guarantee the safety of South Korean tourists, Hyun told reporters. About 700,000 Korean family members have been separated on the two sides of the world’s most militarized border since the Korean War. The last limited reunions were held in 2007. To contact the reporter on this story: Indira Lakshmanan in Washington at ilakshmanan@bloomberg.net

Read the full article →

China Will Boost Cooperation With Asean on Trade, Investments, Chen Says

August 14, 2009

By Shiyin Chen and Suttinee Yuvejwattana Aug. 15 (Bloomberg) — China wants to boost cooperation with members of the Association of Southeast Asian Nations to develop trade and increase investment, said Chinese Commerce Minister Chen Deming . China and the regional grouping are deepening ties as the global economic recession weighs on trade, Chen said, speaking at an Asean economic ministers meeting in Bangkok. They signed an agreement today in Bangkok that may boost two-way investment as much as 60 percent during the next two years, Thailand’s Commerce Minister Porntiva Nakasai told reporters. Chen spoke before the signing. China said in April it plans to create a $10 billion investment fund and offer $15 billion in credit to southeast Asian countries, extending its influence as the region attempts to weather the global financial crisis. Trade between China and the regional grouping fell 24 percent to $88 billion in the first half of the year, Chen said. China is the eighth-largest investor in Asean, with accumulated investments of $6.1 billion as of 2008, the regional grouping said in a statement today. Asean has invested a total of about $5.6 billion in China as of last year, the statement added. China companies may seek investments in the steel and agriculture industries within Southeast Asia, while Asean nations may invest in Chinese financial and retail companies, Chaiya Yimvilai, a spokesman for the Asean meeting, said today. Asean has said it wants the region to become a European Union-style economic community, without a common currency, by 2015. Indonesia, Thailand, Malaysia, Singapore, Brunei, the Philippines, Cambodia, Laos, Myanmar and Vietnam make up the regional organization. Asean yesterday signed a free trade agreement with India, pledging to reduce tariffs for about 80 percent of goods between 2013 and 2016. A similar agreement with China is scheduled to take effect next year. To contact the reporter on this story: Shiyin Chen in Bangkok at schen37@bloomberg.net ; Suttinee Yuvejwattana in Bangkok at Suttinee1@bloomberg.net .

Read the full article →

India Plans to Cut Corporate Rates, Raise Collections in Tax-Law Overhaul

August 12, 2009

By Kartik Goyal Aug. 12 (Bloomberg) — India’s government proposed reducing corporate tax rates to a record low while broadening the tax base to fund an expanding budget deficit in the biggest change to tax laws in almost five decades. Finance Minister Pranab Mukherjee proposes to reduce tax rates for companies including Reliance Industries Ltd., the nation’s biggest by market value, to 25 percent from about 30 percent, according to a statement in New Delhi. Taxes on equities trading in Asia’s second-biggest emerging market may be abolished. Mukherjee would pay for that by reining in widespread tax evasion that leaves the government reliant on only 27 million people who pay taxes out of a population of 1.2 billion, the world’s second-largest. Better compliance would also raise more revenue to help plug a budget deficit that is expected to widen to a 16-year high of 6.8 percent of gross domestic product in the current year. “The changes will definitely help bring in more people under the tax net,” said N.R. Bhanumurthy , an economist at the Institute of Economic Growth in New Delhi. “Higher revenue is the most important need of the hour and may help the government fight the challenges ahead.” The government plans to spend 10.2 trillion rupees ($211 billion) in the current year. The finance minister yesterday raised the direct tax collection target to 4 trillion rupees for the year to March 31, from an earlier forecast of 3.7 trillion rupees, saying the government needs more money to fight the “impact on finances due to unanticipated drought.” Lowest Rate Ever The proposed 25 percent tax rate for companies would be the lowest ever for India, Vikas Vasal, executive director of KPMG India Pvt., said by telephone. That would bring India’s tax rate in line with that of China, the largest emerging economy, and would compare with 35 percent in Pakistan and the Philippines, and 30 percent in Thailand, according to 2008 data compiled by KPMG LLP. Curbing tax evasion would also allow the government to lower individual tax bills. Incomes of up to 1 million rupees would be taxed at the minimum rate of 10 percent under the proposed rules. Now, the minimum rate applies only to incomes of 300,000 rupees and below. Tax evaders may face prison terms up to seven years and fines to ensure compliance. “The thrust of the code is to improve the efficiency and equity of our tax system by eliminating distortions in the tax structure, introducing moderate levels of taxation and expanding the tax base,” Mukherjee said today. “The attempt is to simplify the language to enable better comprehension and remove ambiguity to foster voluntary compliance.” The proposed changes, which need to be approved by parliament, may become effective from 2011, Revenue Secretary P.V. Bhide told reporters in New Delhi. To contact the reporter on this story: Kartik Goyal in New Delhi at kgoyal@bloomberg.net .

Read the full article →

India Plans to Cut Corporate Rates, Raise Collections in Tax-Law Overhaul

August 12, 2009

By Kartik Goyal Aug. 12 (Bloomberg) — India’s government proposed reducing corporate tax rates to a record low while broadening the tax base to fund an expanding budget deficit in the biggest change to tax laws in almost five decades. Finance Minister Pranab Mukherjee proposes to reduce tax rates for companies including Reliance Industries Ltd., the nation’s biggest by market value, to 25 percent from about 30 percent, according to a statement in New Delhi. Taxes on equities trading in Asia’s second-biggest emerging market may be abolished. Mukherjee would pay for that by reining in widespread tax evasion that leaves the government reliant on only 27 million people who pay taxes out of a population of 1.2 billion, the world’s second-largest. Better compliance would also raise more revenue to help plug a budget deficit that is expected to widen to a 16-year high of 6.8 percent of gross domestic product in the current year. “The changes will definitely help bring in more people under the tax net,” said N.R. Bhanumurthy , an economist at the Institute of Economic Growth in New Delhi. “Higher revenue is the most important need of the hour and may help the government fight the challenges ahead.” The government plans to spend 10.2 trillion rupees ($211 billion) in the current year. The finance minister yesterday raised the direct tax collection target to 4 trillion rupees for the year to March 31, from an earlier forecast of 3.7 trillion rupees, saying the government needs more money to fight the “impact on finances due to unanticipated drought.” Lowest Rate Ever The proposed 25 percent tax rate for companies would be the lowest ever for India, Vikas Vasal, executive director of KPMG India Pvt., said by telephone. That would bring India’s tax rate in line with that of China, the largest emerging economy, and would compare with 35 percent in Pakistan and the Philippines, and 30 percent in Thailand, according to 2008 data compiled by KPMG LLP. Curbing tax evasion would also allow the government to lower individual tax bills. Incomes of up to 1 million rupees would be taxed at the minimum rate of 10 percent under the proposed rules. Now, the minimum rate applies only to incomes of 300,000 rupees and below. Tax evaders may face prison terms up to seven years and fines to ensure compliance. “The thrust of the code is to improve the efficiency and equity of our tax system by eliminating distortions in the tax structure, introducing moderate levels of taxation and expanding the tax base,” Mukherjee said today. “The attempt is to simplify the language to enable better comprehension and remove ambiguity to foster voluntary compliance.” The proposed changes, which need to be approved by parliament, may become effective from 2011, Revenue Secretary P.V. Bhide told reporters in New Delhi. To contact the reporter on this story: Kartik Goyal in New Delhi at kgoyal@bloomberg.net .

Read the full article →

India Plans to Cut Corporate Rates, Raise Collections in Tax-Law Overhaul

August 12, 2009

By Kartik Goyal Aug. 12 (Bloomberg) — India’s government proposed reducing corporate tax rates to a record low while broadening the tax base to fund an expanding budget deficit in the biggest change to tax laws in almost five decades. Finance Minister Pranab Mukherjee proposes to reduce tax rates for companies including Reliance Industries Ltd., the nation’s biggest by market value, to 25 percent from about 30 percent, according to a statement in New Delhi. Taxes on equities trading in Asia’s second-biggest emerging market may be abolished. Mukherjee would pay for that by reining in widespread tax evasion that leaves the government reliant on only 27 million people who pay taxes out of a population of 1.2 billion, the world’s second-largest. Better compliance would also raise more revenue to help plug a budget deficit that is expected to widen to a 16-year high of 6.8 percent of gross domestic product in the current year. “The changes will definitely help bring in more people under the tax net,” said N.R. Bhanumurthy , an economist at the Institute of Economic Growth in New Delhi. “Higher revenue is the most important need of the hour and may help the government fight the challenges ahead.” The government plans to spend 10.2 trillion rupees ($211 billion) in the current year. The finance minister yesterday raised the direct tax collection target to 4 trillion rupees for the year to March 31, from an earlier forecast of 3.7 trillion rupees, saying the government needs more money to fight the “impact on finances due to unanticipated drought.” Lowest Rate Ever The proposed 25 percent tax rate for companies would be the lowest ever for India, Vikas Vasal, executive director of KPMG India Pvt., said by telephone. That would bring India’s tax rate in line with that of China, the largest emerging economy, and would compare with 35 percent in Pakistan and the Philippines, and 30 percent in Thailand, according to 2008 data compiled by KPMG LLP. Curbing tax evasion would also allow the government to lower individual tax bills. Incomes of up to 1 million rupees would be taxed at the minimum rate of 10 percent under the proposed rules. Now, the minimum rate applies only to incomes of 300,000 rupees and below. Tax evaders may face prison terms up to seven years and fines to ensure compliance. “The thrust of the code is to improve the efficiency and equity of our tax system by eliminating distortions in the tax structure, introducing moderate levels of taxation and expanding the tax base,” Mukherjee said today. “The attempt is to simplify the language to enable better comprehension and remove ambiguity to foster voluntary compliance.” The proposed changes, which need to be approved by parliament, may become effective from 2011, Revenue Secretary P.V. Bhide told reporters in New Delhi. To contact the reporter on this story: Kartik Goyal in New Delhi at kgoyal@bloomberg.net .

Read the full article →

Noordin Top May Be Plotting Attacks After Indonesia Police Kill Accomplice

August 12, 2009

By Achmad Sukarsono Aug. 12 (Bloomberg) — Noordin Mohammad Top , Southeast Asia’s most wanted terrorist, is still at large after authorities killed his accomplice in a shootout last week, police said. An anti-terrorism squad killed three militants in two raids on Aug. 8. One was Ibrohim, who along with Noordin planned the July 17 attacks at the JW Marriott and Ritz Carlton hotels in Jakarta that killed nine people including two suicide bombers, police spokesman Nanan Soekarna said. The siege foiled a plot to attack President Susilo Bambang Yudhoyono ’s residence. The Malaysia-born Noordin, who had escaped from a police shootout four years ago, and his team may be plotting more attacks in Asia’s third-most populated nation, police said. The 41-year-old terrorist is suspected to be involved in strikes that have killed almost 300 people in Indonesia since 2002, when bombers attacked nightclubs in the resort island of Bali, killing 202 people. “There are not that many people who have the capability to plan such attacks, so definitely as long as he is out there he poses a risk,” said James Van Zorge , of risk consultants Van Zorge, Heffernan & Associates. “He’s public enemy No. 1.” Local television station TVOne reported that during the Aug. 8 raid, a suspected militant shouted, “I am Noordin Top,” as officers carrying steel shields prepared to enter a house in Temanggung, Central Java, 360 kilometers (224 miles) east of the capital. Ibrohim, who worked for a flower vendor at the Ritz Carlton and Marriott hotels in Jakarta, was planning to conduct the suicide bombing attack at Yudhoyono’s residence, Soekarna said at a briefing today. Security Camera Footage Police today showed Marriott security camera footage taken July 16 that showed Ibrohim unloading the bombs from a pickup truck at the hotel’s goods entrance. Ibrohim didn’t allow the driver of the truck to help unload the package, Soekarna said. Both the bombs, which were in a box meant to carry flowers, were taken to room 1808 of the Marriott the same day. The terrorist smuggled one of the devices into the Ritz Carlton on July 17 at 6 a.m. from the hotel’s service entrance, the police said in a statement. The device exploded around 7:45 a.m. “Security at the front is good; the back side and the loading docks were not covered,” Soekarna said. “I call upon businesses to tighten security at service entrances.” Ibrohim, a member of Jemaah Islamiyah, a terrorist organization linked to al-Qaeda since 2000, was also seen in July 8 footage showing a suicide bomber the targeted restaurant at the Ritz Carlton. Suicide Bombers “The modus operandi tells us that there is a new level of sophistication,” Martin Hughes , director at PT Business Risk Indonesia, who advises companies operating in the country. “People will now raise the bar on security.” After the bombing, Ibrohim met Noordin at a safe house in Bekasi, 20 kilometers east of Jakarta, the police statement said. Two other men were shot dead on Aug. 8 near the house, National Police Chief Bambang Hendarso Danuri said. Terrorists planned to load a pickup truck with explosives and use it to attack Yudhoyono’s home, about 10 kilometers from that house, he said. Dani Dwi Permana was the suicide bomber at the Marriott, while a man identified as Nana blew himself up at the Ritz Carlton, said Eddy Saparwoko , head of the police’s victim identification unit. Noordin began planning the attack on Yudhoyono’s residence in April to avenge the execution of the three bombers who carried out the Bali attacks, police said. The terrorists were executed last year. Al-Mukmin The government should close down publishers of books such as “Awaiting the Destruction of America and Europe,” and “Judging the Status of Rulers Who Reject Sharia,” as well as enact stricter legislation to discourage people from joining terror organizations, said Rohan Gunaratna , head of Singapore- based International Centre for Political Violence and Terrorism Research. Some 17 people involved in Indonesia’s spate of terror attacks graduated from the al-Mukmin Islamic school in Ngruki, Sukoharjo, according to the Brussels-based International Crisis Group. Most of the radical books including one written by a terrorist executed for his role in the 2002 Bali bombings are sold near the school. Noordin allegedly was involved in a 2003 bombing at the same Marriott hotel that killed 12 people and a 2004 blast outside the Australian Embassy in Jakarta that killed at least nine, and another attack in Bali in 2005 when three suicide bombers killed themselves and 20 others. The U.S. Federal Bureau of Investigation added Noordin’s name to its “Seeking Terrorism Information” list in 2006. ‘Call God’ Noordin split from Jemaah Islamiyah and formed a group to carry on attacks after leaders of the group were caught or killed by Detachment 88, Indonesia’s counter-terrorism squad. Authorities in 2005 killed Azhari Husin , Noordin’s accomplice. Noordin escaped during that raid. Abu Dujana , one of Jemaah Islamiyah’s suspected leaders, was arrested in 2007. The three terrorists convicted for the 2002 Bali bombings, Amrozi, Imam Samudra and Ali Ghufron, were executed by a firing squad in November last year. Riduan bin Isomuddin, also known as Hambali, the suspected leader of al- Qaeda in Southeast Asia, was captured in Thailand in 2003. Indonesian authorities don’t know if Noordin is in Indonesia, said I Ketut Yoga Ana, a police spokesman. “Call God, he will know where Noordin is,” he said. To contact the reporter on this story: Achmad Sukarsono in Jakarta asukarsono@bloomberg.net

Read the full article →

Noordin Top Wasn’t Militant Killed in Indonesian Gun Battles, Police Say

August 11, 2009

By Achmad Sukarsono Aug. 12 (Bloomberg) — Noordin Mohammad Top , Southeast Asia’s most wanted terrorist, wasn’t killed in an Indonesian shootout on Aug. 8, Eddy Saparwoko, head of the police victim identification unit said. Police killed terrorists in two separate raids on Java island that thwarted a plot to attack President Susilo Bambang Yudhoyono ’s residence. Noordin is suspected of planning the July 17 attacks at JW Marriott and Ritz Carlton hotels in Jakarta that killed nine people including two suicide bombers. The Malaysia-born Noordin, who had also escaped from a police shootout four years ago, and his team may be plotting more attacks in Asia’s third-most populated nation, police said. The 41-year-old terrorist is suspected to be involved in strikes that have killed almost 300 people in Indonesia since 2002, when terrorists attacked nightclubs in the resort island of Bali, killing 202 people. “There are not that many people who have the capability to plan such attacks, so definitely as long as he is out there he poses a risk,” said James Van Zorge , of risk consultants Van Zorge, Heffernan & Associates. “He’s public enemy No. 1.” Local television station TVOne reported that during an Aug. 8 police raid, a suspected militant shouted, “I am Noordin Top,” as officers carrying steel shields prepared to enter a house in Temanggung, Central Java, 360 kilometers (224 miles) east of the capital. Two other men were shot dead the same day in Bekasi, 20 kilometers east of Jakarta, near a building that may have been a safe house for Noordin, National Police Chief Bambang Hendarso Danuri has said. Terrorists planned to load a pickup truck with explosives and use it to attack Yudhoyono’s home, about 10 kilometers from that house, he said. Bali Bombers Noordin began planning the attack on Yudhoyono’s residence in April to avenge the execution of the three bombers who carried out the Bali attacks, police said. The terrorists were executed last year. The government should close down publishers of books such as “Awaiting the Destruction of America and Europe,” and “Judging the Status of Rulers Who Reject Sharia,” as well as enact stricter legislation to discourage people from joining terror organizations, said Rohan Gunaratna , head of Singapore- based International Centre for Political Violence and Terrorism Research. Some 17 people involved in Indonesia’s spate of terror attacks graduated from the al-Mukmin Islamic school in Ngruki, Sukoharjo, according to the Brussels-based International Crisis Group. Most of the radical books including one written by a terrorist executed for his role in the 2002 Bali bombings are sold near the school. Detachment 88 Gunaratna said Noordin is getting support from Jemaah Islamiyah, a terror organization linked to al-Qaeda, which wants to eliminate the Indonesian president, he said. Noordin allegedly was involved in a 2003 bombing at the same Marriott hotel that killed 12 people and a 2004 blast outside the Australian Embassy in Jakarta that killed at least nine, and another attack in Bali in 2005 when three suicide bombers killed themselves and 20 others. The U.S. Federal Bureau of Investigation added Noordin’s name to its “Seeking Terrorism Information” list in 2006. Noordin split from Jemaah Islamiyah and formed a group to carry on attacks after leaders of the Southeast Asian terror organization were caught or killed by Indonesian counter-terror agency Detachment 88. Authorities in 2005 killed Azhari Husin , Noordin’s accomplice. Noordin escaped during that raid. Abu Dujana , one of Jemaah Islamiyah’s suspected leaders, was arrested in 2007. The three terrorists convicted for the 2002 Bali bombings, Amrozi, Imam Samudra and Ali Ghufron, were executed by a firing squad in November last year. Riduan bin Isomuddin, also known as Hambali, the suspected leader of al- Qaeda in Southeast Asia, was captured in Thailand in 2003. To contact the reporter on this story: Achmad Sukarsono in Jakarta asukarsono@bloomberg.net

Read the full article →

Hutchison Telecom Shares Suspended Before Statement on Sale of Israel Unit

August 11, 2009

By Mark Lee Aug. 12 (Bloomberg) — Hutchison Telecommunications International Ltd. , controlled by billionaire Li Ka-shing , was suspended from trading in Hong Kong pending a statement on a “very substantial disposal.” The emerging-market phone carrier is scheduled to announce first-half earnings today and will hold a media briefing, spokesman Hans Leung said by phone, without elaborating on the transaction. Hutchison Telecom said on July 7 that it was approached by “various interested parties” about its 51 percent holding in Israel’s Partner Communications Ltd. A possible sale of the asset, the biggest contributor to the company’s earnings, may allow the Hong Kong carrier to pay a special dividend to shareholders. “After Israel goes, their focus will shift towards Indonesia, Vietnam and Sri Lanka,” Lisa Soh , who rates Hutchison Telecom shares “underperform” at Macquarie Group Ltd. in Hong Kong, said by phone. “Assuming a transaction is concluded, expectations would be for the company to pay a special dividend.” Hutchison Telecom fell 1.5 percent to close at HK$1.98 in Hong Kong trading yesterday, trimming the stock’s gain this year to 69 percent. The benchmark Hang Seng Index has advanced 46 percent. Partner, Israel’s second-biggest wireless carrier, accounted for 56 percent of Hutchison Telecom’s sales of HK$23.73 billion ($3.1 billion) last year, according to the parent’s earnings announcement in March. Hutchison Telecom, with units in Israel, Indonesia, Sri Lanka, Thailand and Vietnam, said it will increase capital spending to HK$7 billion this year, from HK$5.1 billion in 2008, as it expands networks in Southeast Asia. To contact the reporter on this story: Mark Lee in Hong Kong at wlee37@bloomberg.net

Read the full article →

Angola, Thailand to cooperate in energy sector

August 6, 2009

Angola, Thailand to cooperate in energy sector

Read the full article →

Bangkok Airways Plane Hits Control Tower on Samui Island, Killing Pilot

August 4, 2009

By Anuchit Nguyen and Suttinee Yuvejwattana Aug.

Read the full article →

North Korean Military Ties to Myanmar Draw Clinton’s Attention in Region

July 21, 2009

By Indira A.R. Lakshmanan July 22 (Bloomberg) — Signs of clandestine military cooperation between North Korea and Myanmar are feeding “growing concerns” about Asian security, U.S. Secretary of State Hillary Clinton said in Thailand yesterday. “It would be destabilizing for the region, it would pose a direct threat to Burma’s neighbors,” Clinton told reporters in Bangkok following a meeting with Thai Prime Minister Abhisit Vejjajiva

Read the full article →

Peru’s Economy Grew 0.9% in First Half of 2009, Trade Minister Perez Says

July 21, 2009

By Liza Lin and Shamim Adam July 21 (Bloomberg) — Peru’s economy expanded 0.9 percent in the first six months of 2009, Minister of Foreign Trade and Tourism Martin Perez said today, indicating growth slowed in the second quarter. The economy grew 1.8 percent in the first quarter from a year earlier. Gross domestic product will expand between 2.5 percent and 3 percent this year, and as much as 6 percent in 2010, Perez said in an interview in Singapore, where he is attending a meeting of Asia-Pacific Economic Cooperation trade ministers

Read the full article →

Next Entries →