.
Southeast
Asian economies
are once again growing faster than the world average,
but the gap between the 2 narrowed, and growth is
forecast to slow this year.
. Many
economists predict the region will pick steam again
later this year if oil prices continue to ease, or if
the US decides not to raise interest rates much further,
which could lead to greater demand from Asian exporters.
. The
region’s growth suggests that its growth patterns are
starting to look more like those in developed countries
than in the faster-growing emerging markets of China and
India.
. Japan and
China own higher-performing assets than they would
otherwise by buying US Treasuries. If they found French
or German assets more attractive, it would be truly
worrisome to the US. And more capital is invested in the
US’ growing economy.
.
China
reacted to the Bush administration’s new quotas on
several categories of Chinese clothes & textiles by
accusing the US of violating the spirit of free trade.
It asserts that it is being made a scapegoat for the
inevitable decline of US manufacturing.
. Major
buyers of Chinese clothing, e.g., Wal-Mart and J.C.
Penney are holding off on shifting purchases from other
countries to China until the situation is resolved.
. Among
other problems with China is the purchase of pirated
goods on its streets and in markets worldwide,
churned out by Chinese factories. This piracy cost US
companies billions of dollars each year.
. China signed a $600-million oil joint venture
with Uzbekistan as Beijing hosted Pres. Karimov
lavishly after his troops massacred protesters. China
hosted Karimov in a rare show of support, as Beijing
needs allies in the region to fight Uighur separatists.
. US
Treasury Secretary John Snow predicted China would
loosen its grip on the yuan by October, even as
senators threatened sanctions.
.
Discover is teaming up with China’s card-payment
network in a venture that will allow Discover card
to be accepted in China.
.
European shoe manufacturers, e.g., Italy, Spain,
Portugal, France, Greece and Poland, have demanded
restrictions on Chinese leather shoe imports, as
European textile makers did earlier to limit imports of
Chinese textiles.
.
Citigroup
could lose its underwriting role in the China
Construction Bank IPO, in a blow to its Chinese
business.
.
The Chinese link their currency to the US dollar and invest their dollar
holdings in US Treasuries. The dollar linkage has
provided a stable environment for robust Chinese
economic growth.
. The
Chinese accumulate US assets because they run a $160
billion trade surplus with the US. The surplus is
exaggerated because, since part of China’s trade with
America is triangular, with the Chinese importing goods
from other Asian countries, then shipping them to the
US.
.
Hong Kong
marked Tienanmen’s 16th anniversary without
any incident in Beijing. A Chinese diplomat sought
asylum in Australia.
.
Japan’s
economy is 4x
bigger than China’s and it owns more US Treasuries. It
has roughly $680 billion to China’s $225
billion. Japan owns so many US bonds because its
aging population wants to own safe but relatively
high-performing assets.
.
Mitsubishi’s
loss grew in the latest fiscal year on plunging vehicle
sales in Japan and North America amid restructuring
costs.
.
Mizuhi’s fiscal-year net surged 54%. Other Japanese
banks also are expected to show profit gains and drops
in bad loans.
. Japan’s
top non-life insurers (Mizuho Financial Group,
Sumitomo Mitsui Financial Group, UFJ Holdings Inc,
Resona Holdings Inc, etc.) pasted weak fiscal year
profits on higher casualty payments.
. Japan’s
top 7 banks appear to have emerged from this bad-loan
crisis, with 5 of them reporting fiscal-year profits.
. Japan’s
central bank governor said that he faces the challenge
of weaning banks and markets from an easy money policy.
. Japan’s
highest court cleared the way for re-opening the
experimental fast breeder reactors at Monju, shut
since a leak of coolant and cover-up in 1995.
. Boeing signed a deal with Japanese
manufacturers for work on its new 787 Dreamliner.
.
A Singapore Airlines affiliate finalized a deal for 20 Boeing
737s at a list price of $1.1 billion.
.
North
Korea’s decision to remain isolated internationally will lead to its collapse,
said Asst. Secretary of State Christopher Hill.
. North Korea is so fearful of a renewed famine
it is forcing millions of city dwellers to labor as
farmhands on weekends.
. North Korean recalcitrance could lead shortly
to a US decision to seek UN sanctions for its nuclear
work, a top Pentagon official said.
.
Sixty years after World War II, the long-lost Japanese soldiers (Yoshio
Yamakawa, 87 and Tsuzuki Nakauchi, 85) of the 30th
Division of the Japanese Imperial Army, surfaced in the
jungles of the Philippines.
. Did RP give in to terrorist blackmail? The
withdrawal of 50 Filipino troops from Iraq caused RP to
lose a good portion of US aid from $124 million to $87.8
million in aid package, from $30 million to $20 million
. The service of more than 6k Filipino workers
who stayed behind working in the American military
installations did not help. There is a lingering
bitterness in Washington over the incident.
. For RP to
launch a lobbying campaign in the US Congress to get
funding cuts rescinded is an exercise in futility.
Rumsfeld is still sore that Pres. Arroyo’s decision to
give in de la Cruz’s militant Islamic captors.
.
US Embassy and 3 other US diplomatic missions in Indonesia closed
as the country’s police chief warned that Islamic
militants were preparing to strike on unspecified target
offices in Bali, Surabaya and Medan.
. Bombings killed 20 in a Christian town on
Indonesia’s Sulawesi island. Jakarta-Aceh
rebel talks have opened in Finland.
.
Indonesia’s Lion Mentari Air plans to buy 60
Boeing 737 aircrafts in a deal valued at $3.9 billion.
.
US and Vietnam may soon be seeking to build on growing military
ties amid their rapidly expanding economic exchanges.
.
GE, in conjunction with 2 of India’s energy companies, will
restart a power plant built by Enron.
. One of
the targets of NGOs in India is Coca-Cola for
stealing water, poisoning land and selling drinks laced
with dangerous pesticides. “It is destroying lives, it
is destroying livelihoods and it is destroying
communities all across India.”
.
Pakistan
has expressed interest in purchasing up to 75 new and 11
used F-16s since Bush agreed in March to allow such
sales, said the Pentagon.
.
Bangladeshi
police
prevented a planned march on Dhaka’s diplomatic quarter
by thousands of Islamic activists who said they were
protesting the desecration of the Koran by US troops.
.
Nepal
rebels were suspected in the bombing of a bridge that
killed 38 on board a bus that was crossing it, the most
targeting of civilians in years.
