South Korea To Push For More Free Trade Agreements
Free trade agreements have featured high on the agenda for the South Korean authorities this week, with announcements that the country plans to push for such deals with China and Russia, and discussion of the sticking points in negotiations with the United States. According to reports in the national and international media this week, Trade Minister Kim Jong-hoon revealed that feasibility studies are currently being undertaken with regard to FTAs with China, Russia, and several South American nations.
Cyprus And Malta Well Prepared For Euro Adoption
With only five weeks to go before the adoption of the euro by Cyprus and Malta, the European Commission has concluded that both Member States are well prepared for the introduction of the euro. "Malta and Cyprus will adopt the euro in January 2008, less than four years after they joined the EU," noted Joaquin Almunia, European Commissioner for Economic and Monetary Affairs. "This is something the Cypriot and Maltese people can be proud of because they will become part of the largest monetary area of the developed world, which has delivered an unprecedented period of price stability and favourable financing conditions for businesses and households alike."
Hong Kong is the premier choice as a pilot point for running renminbi (yuan) business outside of mainland China, the territory's Chief Executive, Donald Tsang, has suggested. Concluding his visit to Beijing last week, Tsang said that the Central Government and Mainland financial institutions, including the People's Bank of China, all fully support Hong Kong in expanding renminbi business. They also back Hong Kong in strengthening its status as a world financial centre, Tsang added.
HSBC Launches Alternative Investment Operation In Australia
HSBC has this week announced the launch of HSBC Alternative Investments Limited in Australia (HAIL), which will give Commonwealth investors access to new fund of hedge fund investments.The new venture will launch for institutional investors, financial planners, and asset consultants in January 2008.
China Unblocks Hong Kong Cash Tunnel
After Chinese Premier Wen Jiabao said in Singapore last week that he did not agree with the cash withdrawal limits placed on Shenzhen banks, they were hastily withdrawn, leaving the underground pipeline that has been sustaining Hong Kong's booming stockmarket in full flood. "The Shenzhen banks' motives are good but they could employ better methods," said Wen. "We should have taken measures that were more effective and that were acceptable to the public."
Court Stops Ex-HSBC Banker Working for Citigroup
HSBC Holdings Plc, Europe's biggest bank by market value, won a court order in Hong Kong to stop its former banker Steven Wallace from working with Citigroup Inc. pending a contract dispute.The Court of First Instance granted HSBC's request to impose injunctions on Wallace that stop him from continuing his job at Citigroup until Dec. 28, according to a judgment. HSBC claims Wallace violated a 2004 employment contract by starting work with Citigroup three months after resigning in June.
A consortium led by Richard Branson's Virgin Group is shaping up to be the likeliest candidate to rescue Northern Rock from its current crisis, it emerged on Monday.In a statement published this week, Northern Rock announced that:
"Following receipt of indicative expressions of interest covering a range of options in respect of its business, the Company and its advisors have engaged in discussions with a limited number of selected interested parties to clarify their proposals. As a result, and following discussions with the Tripartite Authorities (the Bank of England, HM Treasury and the Financial Services Authority), the Board has concluded that it wishes to take forward discussions on an accelerated basis with a consortium comprising Virgin Group, WL Ross & Co, Toscafund Asset Management LLP and First Eastern Investment Group (the “Virgin Consortium”)."
Asian Stocks Drop for First Time in Three Days; Samsung Falls
Asian stocks fell for the first time in three days, led by Samsung Electronics Co., after South Korea's President agreed to an independent probe of corruption allegations involving the country's biggest company. HSBC Holdings Plc dropped from a one-week high in Hong Kong after Goldman, Sachs & Co. said Europe's biggest bank may have to write down $12 billion more for bad debts. Mitsubishi UFJ Financial Group Inc., Japan's biggest publicly traded lender, reversed earlier losses after Citigroup Inc. said it will raise $7.5 billion by selling a stake to an Abu Dhabi government fund.
