Japan business mood sinks on China worry, weak demand: Reuters Tankan

Japanese manufacturers'confidence slumped the most in a year in September to an eight-month low and is forecast to worsen further as fears of a China-led global economic slowdown grow, a Reuters poll showed. 

PHOTO: REUTERS

SEP 15, 20158:06 AM

[TOKYO] Japanese manufacturers'confidence slumped the most in a year in September to an eight-month low and is forecast to worsen further as fears of a China-led global economic slowdown grow, a Reuters poll showed.

Domestic demand also looks increasingly fragile as service companies reporting the weakest sentiment since March and predicted further deterioration in the coming three months.

The Reuters Tankan - which closely tracks the Bank of Japan's quarterly tankan survey - gave the latest glimpse of corporate morale after China's stock market rout last month.

The loss of confidence added to a recent run of soft indicators, keeping policymakers under pressure to offer fresh stimulus to rev up growth in the world's third largest economy.

The monthly poll of 516 big and midsize companies between Aug 31 and Sept 11, of which 266 responded, cast doubt about the BOJ's economic optimism just as the central bank wraps up a policy review on Tuesday. BOJ policymakers are in no mood to expand monetary stimulus this week, sources say. "China's slowdown is affecting our business," an executive at a transport equipment maker said in the survey, which companies answer anonymously. A chemicals producer said,"Business conditions are on track, but we cannot describe the situation as good because of concerns about China's slowdown." Boding ill for private consumption, which accounts for about 60 percent of the economy, the survey showed retailers are struggling to lure customers. "The number of shoppers has slightly declined on the existing-store basis. We need to cut down on costs as personnel expenses rise," said one retailer. Another said: "Sales are better than last year but they have not returned to levels seen before the sales tax hike" of April 2014.

The Reuters Tankan sentiment index for manufacturers fell to 9 in September from 17 in August, matching January's low and sliding the most since a year ago when the economy was in a recession caused by that tax hike.

The index is seen worsening further to 7 in December.

Compared with June, the manufacturers' index fell by five points, suggesting that the BOJ's quarterly tankan due Oct 1 may show deterioration in big manufacturers' sentiment.

The service-sector index fell to 23 from 27 in August, the lowest since March, and it is seen slipping to 22 in December.

The index stood 13 points lower than a record high of 36 in June, pointing to worsening in the BOJ tankan, compared to the upbeat readings in the last central bank survey.

REUTERS

      

Australian PM-elect Turnbull says to focus on the economy

This combo of file photos shows Australia's Communications Minister Malcolm Turnbull (right) speaking at a press conference in Sydney on Sept 24, 2013 and Australian Prime Minister Tony Abbott (left) speaking to the media during a press conference at Parliament House in Canberra on Sept 9, 2015 . 

PHOTO: AFP

SEP 15, 20157:21 AM

[CANBERRA] Australian prime minister elect Malcolm Turnbull promised to focus on improving the country's faltering economy as the public woke up on Tuesday to its fourth leader in two years.

The ruling Liberal Party voted to oust Tony Abbott as prime minister in favour of Mr Turnbull, a multi-millionaire former tech entrepreneur who is hugely popular with the electorate, in a secret ballot late on Monday.

"I'm filled with optimism and we will be setting out in the weeks ahead ... more of those foundations that will ensure our prosperity in the years ahead," Mr Turnbull told reporters as he headed to parliament on Tuesday.

Mr Abbott was deposed following months of opinion polls that showed his popularity with the public near rock bottom as Australia's US$1.5 trillion economy struggles to cope with the end of a once-in-a-century mining boom.

Mr Turnbull, toppled as leader of the conservative Liberal Party by Mr Abbott in 2009, has consistently been seen as a preferred prime minister. However, his support for a carbon trading scheme, gay marriage and an Australian republic have made him unpopular with his party's right wing.

Mr Turnbull is widely expected to overhaul the cabinet, with current Treasurer Joe Hockey, who has been battling a backlash against a deeply unpopular budget, likely to be replaced by Social Services Minister Scott Morrison.

Defence Minister Kevin Andrews, who is overseeing a A$50 billion (S$50.3 billion) submarine tender, is also expected to be replaced when Mr Turnbull unveils his ministry later this week.

Foreign Minister Julie Bishop, who won the party room vote to retain her additional position as deputy prime minister, said she had spoken with international leaders overnight about the leadership change.

The opposition Labour Party was quick to label Mr Turnbull a"multi-millionaire who lives in a pink mansion on Sydney Harbour" who was out of touch with everyday Australians.

The change of leaders is the latest sign of political instability in Australia, which has in recent years been convulsed by backroom machinations and party coups that have shaken public and business confidence in government.

Labor's Kevin Rudd, elected prime minister with a strong mandate in 2007, was deposed by his deputy, Julia Gillard, in 2010 amid the same sort of poll numbers that Mr Abbott faced. Ms Gillard was in turn deposed by Mr Rudd ahead of elections won by Mr Abbott in 2013.

REUTERS

    
 

EU ministers fail to reach refugee quotas deal: official

EU interior ministers hold a news conference after an European Union interior and justice ministers emergency meeting on the migrants situation in Brussels on Sept 14, 2015. 

PHOTO: REUTERS

SEP 15, 20156:57 AM

[BRUSSELS] EU interior ministers failed to reach unanimous agreement on Monday on a plan for binding quotas to relocate 120,000 refugees and take the strain off Greece, Italy, and Hungary, officials said.

"Yes, not everyone is on board at the moment," Luxembourg minister Jean Asselborn told a press conference in Brussels after an emergency meeting.

He said however that there was a "large majority" in favour of the redistribution in principle, and they would return to the issue in October.

EU migration commissioner Dimitris Avramopoulos added: "For our proposal on 120,000 we did not have the agreement we wanted." The ministers were discussing plans unveiled last week by European Commission chief Jean-Claude Juncker to redistribute 120,000 refugees from overstretched Greece, Italy and Hungary.

The plans face fierce opposition from many eastern European member states.

Slovak interior minister Robert Kalinak said his country, the Czech Republic and others refused to back the plan, and called for a summit of EU leaders.

"There was no consensus, several countries disagreed. It was not only us or the Czech Republic, but other countries as well," he was quoted as saying by the Czech news agency CTK.

"When other interior ministers also say this issue is about the European Union, it is up to the European countries' leaders to talk about it. This is crucial in my opinion."

The ministers did formally agree however to launch a plan first proposed in May to relocate 40,000 asylum seekers from Greece and Italy over the next two years, according to quotas suggested by the Commission.

Mr Avramopoulos said there had been "very heated debates at national and a European level."

"The commission is determined to take action. We will need another council meeting in the coming days," he said.

The quotas can be passed by a qualified majority, rather than unanimously, under complex EU rules but that would show a sign of disunity that the bloc can ill afford.

German interior minister Thomas de Maiziere said there was a "bitterness" over the fact that a unanimous vote was not possible on Monday, and that a majority vote would have to be held later.

EU Vice-President Frans Timmermans said the "numbers (being accepted) today are much too small" and warned of the growing risk to refugees as winter draws near.

AFP

    
 

Corbyn opposition fails to halt British strike bill

A bid to curb strike action cleared its first hurdle in Britain's parliament on Monday, despite fierce criticism from opposition Labour party and its new leader Jeremy Corbyn. 

PHOTO: AFP

SEP 15, 20156:46 AM

[LONDON] A bid to curb strike action cleared its first hurdle in Britain's parliament on Monday, despite fierce criticism from opposition Labour party and its new leader Jeremy Corbyn.

The veteran leftist and one-time party outsider vowed to fight the bill after he swept to victory over the weekend, backed by a dramatic surge of grassroots support and endorsement from Labour's traditional backbone, the trade unions.

On its second reading in parliament lawmakers voted 317 in favour, 284 against the bill proposed by the Conservative government of Prime Minister David Cameron, meaning it will now advance to in-depth debate.

The bill drew furious dissent from Labour as Mr Corbyn made his first appearance on the front benches.

Angela Eagle, newly appointed as shadow business secretary, called it "the most significant, sustained and partisan attack on six million trade union members and their workplace organisations that we have seen in this country in the last 30 years." "There is absolutely no necessity whatsoever to employ the law in this draconian way," Ms Eagle said.

Fellow Shadow cabinet member Diane Abbott, speaking ahead of the vote, described the bill as "a particularly vicious attack on the rights and liberties of trade unions".

The legislation would impose a minimum 50-per cent turnout in strike ballots, unions would have to give more notice before strikes, and employees would be able to use agency workers to replace striking staff.

Picketers would have to give their names to police and face fines if they fail to wear an official armband.

Former union official Corbyn said Monday that Britain "already has the most restrictive trade union laws in western Europe".

But the law was defended as a natural progression by the Conservative party, which said that while unions had helped create a fairer society, strikes were now decided by hardcore activists without wider support.

"Just as the workplace has evolved... so have the trade unions and the laws that govern them," said business secretary Sajid Javid.

"Now it is time for Britain's unions to take that next step and this bill will help do just that."

SOLIDARITY FROM GREECE

Mr Corbyn shocked experts and many lawmakers within his own party after his campaign swept him from a relatively unknown rebellious backbencher to win 60 per cent of party support in a matter of months.

Former Greek finance minister Yanis Varoufakis, whose anti-austerity party Syriza has attracted comparisons with Corbyn, welcomed his election at a People's Assembly Against Austerity event held in a church building in central London.

"The news coming from Britain in the last few days are astonishing," Varoufakis told the mostly-young crowd of 2,000, who cheered when Corbyn's name was mentioned.

"I'm here to offer the Greek people's solidarity to the people of Britain in what you are embarking on." As one of his first acts, Mr Corbyn vowed to challenge the Conservatives' claim to be the party of "hardworking people".

"The Tories are hitting working people with a double whammy - attacking the trade unions that defend jobs and win pay rises, and attacking the tax credits that provide a safety net for the millions of people stuck in low-paid jobs," he wrote in the Daily Mirror.

But Mr Corbyn was given no honeymoon by his party and there was no shortage of criticism for his first steps as leader, picking the lawmakers who will form the Labour top team, the shadow cabinet.

His selection of left-wing supporter John McDonnell for the key role of shadow chancellor made a "nonsense" of his pledge to reach out to all factions, said former Labour interior minister Charles Clarke, identified with the party's centrist strand that has long been at odds with its far-left.

"He had choices of who he was going to appoint and the choice he made was to go down the most hard-line position," he told BBC Radio 4's Today programme.

Mr McDonnell has previously joked about "assassinating" former Tory prime minister Margaret Thatcher, called for the honouring of IRA members and advocated nationalising the banking, energy and rail sectors.

Mr Corbyn also defended the lack of women in the shadow cabinet's traditional top roles, saying it was "an 18th century" attitude to view the foreign and finance ministries as more important than the health and education departments.

In total, women will fill 16 of the 31 posts in Mr Corbyn's senior team.

AF
P

Who Rules America? (Video)

Who Rules America?

2012

Welcome to Wall Street - the epicenter of financial power in America, perhaps the money capital of the world. The globally oriented financial firms, based in the New York stock exchange, have extraordinary influence on the politics and policies of this country.

No one has elected them, and in fact these financial firms are trying to undo the regulations and new laws governing them, imposed by the congress.

The people on Wall Street are just one of a number of un-elected and very powerful forces that operate in the shadows, behind the scenes.

There are the media forces, the military-industrial forces, the corporate forces, and there are the forces that will be investigating this television series, which asks a question that most of the media does not: Who rules America?

This documentary provides a comprehensive look at the so called democratic governing system of the United States of America and reveals the actual powers who are ruling the nation.

DBS says to wind down Islamic banking unit

DBS Group Holdings, Singapore's biggest lender, said on Monday it would slowly wind down its Islamic banking unit as it failed to achieve economies of scale. 

PHOTO: REUTERS

SEP 14, 20156:05 PM

[SINGAPORE] DBS Group Holdings, Singapore's biggest lender, said on Monday it would slowly wind down its Islamic banking unit as it failed to achieve economies of scale.

DBS said it would continue to develop and distribute Shariah compliant products such as Islamic bonds or Sukuk, within the bank's main operations.

It will also try to absorb the staff of the Islamic Bank of Asia (IB Asia), which was established in 2007 as a joint venture between DBS Bank and prominent investors based in the Gulf.

DBS CEO Piyush Gupta, who took over the top job in late 2009, has been focusing on the bank's core businesses to boost profitability by reducing the bank's non-core assets in recent years.

REUTERS

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Indian billionaire buys former US consulate for US$105m

The US government has sold a former maharaja's mansion in Mumbai to an Indian billionaire for US$105 million, the businessman's son said Monday, four years after it was put on the market. 

PHOTO: REUTERS

SEP 14, 20159:44 PM

[MUMBAI] The US government has sold a former maharaja's mansion in Mumbai to an Indian billionaire for US$105 million, the businessman's son said Monday, four years after it was put on the market.

Lincoln House was home to the US consulate from 1957 to 2011 after it was purchased from a local maharaja (prince) who sold it to pay off his taxes.

Cyrus Poonawalla, one of India's richest men and founder of vaccine manufacturer the Serum Institute, has purchased the seaside mansion in the south of the Indian commercial capital for seven billion rupees.

"We decided to go ahead with the deal given the market conditions and the good price to go with it," Cyrus's son Adar Poonawalla told AFP via email.

"In south Mumbai this is an ideally located, pristine and iconic Heritage property even though this will mean that no redesigning will be permitted," he added.

Adar Poonwalla, who is CEO of Serum, said the total cost including taxes could reach eight billion rupees (US$121 million).

"The possession would be effected in approximately two months time and shall be utilized for the residence of the Poonawalla family," he said.

The protected building, built in the Breach Candy area of the city in 1938, occupies two acres of land and looks out on the Arabian Sea. It was previously known as Wankaner Palace after the maharaja who owned it.

The US consulate moved to a purpose-built facility in Mumbai's north in 2011. A spokesman at the consulate refused to comment on the sale of Lincoln House.

AFP