In Thursday's Asia papers

22 June 2006 03:47  [Source: ICIS news]

Asahi Shimbun, Japan (online edition)

Front page

 

Damages awarded in hepatitis C suit

The Osaka District Court on Wednesday ordered the central government and two companies to pay Yen256.3m in total compensation to nine people infected with the hepatitis C virus via tainted blood products. The 13 plaintiffs, 12 women and a man in their 20s to 50s living in the Kinki, Chugoku and Shikoku regions, sued the companies that manufactured and marketed the blood products and the government that approved them. The suit maintained that Mitsubishi Pharma, its subsidiary Benesis Corp (the former Green Cross Corp) and the state were responsible for their hepatitis C infections, and demanded Yen759m in total damages.

 

LDP discussing permanent law for SDF dispatches overseas

Ruling Liberal Democratic Party officials are seeking permanent legislation that would allow Japan to dispatch the Self-Defense Forces overseas, a move likely to draw criticism from protectors of Japan's pacifist Constitution. Dispatches of SDF members abroad have been conducted after special measures laws were enacted that spell out regulations concerning the use of force and other issues.

 

Business & Industry

 

FSA issues severe suspension order against Mitsui Sumitomo

The Financial Services Agency on Wednesday slapped Mitsui Sumitomo Insurance Co with a business suspension order for a wide range of illegal practices. The company will be prohibited from selling third-sector insurance policies, such as medical insurance, indefinitely from 10 July. Mitsui Sumitomo will also be barred from sales of its core non-life insurance policies for two weeks from the same day at all of its outlets.

 

US accepts all conditions on Japan's US beef imports

The United States on Wednesday cemented the deal to resume its exports of US beef as early as late July by agreeing to all of Japan's demands for more stringent safety checks. After a marathon teleconference over two days, the two sides ironed out all of their differences over Japan's second ban on US beef that started six months ago. Japan on Tuesday agreed to lift the ban if its conditions were accepted.

 

China Daily, China (online edition)

Front page

 

Energy partnership with Africa based on equality

China's energy partnership with Africa is based on equality and mutual benefit, and will not influence any other party, Premier Wen Jiabao said on Tuesday. During talks with Angolan President Jose Eduardo dos Santos, Wen said China is ready to work with Angola and other African countries in the energy sector. "This is only one part of co-operation between China and Africa in a wide range of fields," said Wen, who flew from Brazzaville to Luanda on Tuesday afternoon.

 

Sinopec in deal to explore Iran oil block

China's Sinopec has signed a multi-million dollar contract with Iran for the exploration and potential development of an oil block in the Islamic republic, Iranian official media reported. Iranian state radio said the deal to explore the onshore Garmsar block - one of 16 oil blocks that Iran put out to tender in 2003 - was worth between $20m and $59m and covers a four-year period.

 

Business & Industry

 

Top 100 listed private enterprises

On the top 100 listed private enterprises of 2006 unveiled on 17 June, China Minsheng Banking, Midea, and GOME Appliance were crowned the top three. The statistics show that the total tax payment of the top 100 amounts to CNY16.58bn and their payrolls hits CNY21.3bn.

 

Rule drafted for foreign lenders

China's banking regulator is likely to complete a revised administrative rule soon that would allow foreign banks to deal with chinese Yuan retail business across the country. The draft rule would need further approval from the State Council, a source, who declined to be named, said yesterday.

 

Taiwan News, Taiwan (online edition)

Front page

 

Food expos serve up local and imported delicacies

Industry members yesterday munched their way around Food Taipei 2006, an annual three-in-one exposition featuring some of the world's top food and agricultural exporters. Drawing close to 850 companies occupying more than 2,400 booths, the four-day show is being held in conjunction with two food industry-related exhibitions - Foodtech Taipei and Taipei Pack. The three-in-one fair was organized by the Taiwan External Trade Development Council in coordination with the Taiwan Food & Pharmacy Machinery Manufacturers' Association and China (Taipei) Packaging Association.

 

Taiwan GDP growth forecast upgraded

Standard Chartered Bank Global Research yesterday said it was upgrading Taiwan's real GDP growth forecast to 3.8% year-on-year from 3.3% for 2006, and to 4.1% from 3.5% for 2007. The strength in the information technology product cycle and its impact on Taiwan's export performance convinced SCB to revise its GDP growth forecast for Taiwan, Tai Hui, an economist at Standard Chartered Bank, told a news conference yesterday.

 

Business & Industry

 

Greenback dips in Asia after BOJ's rate hike signal

The US dollar dipped in Asian trade yesterday as the market refocused on expectations the Bank of Japan will end its zero-interest rate policy soon, dealers said. The dollar slipped to Yen114.73 in Tokyo afternoon trade from Yen114.93 late Tuesday in New York. The euro firmed to $1.2625 from $1.2579 while slipping to Yen144.80 from Yen144.58.

 

Mobile music sales seen rising rapidly

Sales of music for use on mobile phones are expected to nearly double over the next five years, a European cellular content provider said yesterday. From an estimated $7.4bn this year, sales are expected to reach $13.6bn in 2011, said Arena Mobile, a Spanish mobile content supplier. The bulk of the sales should take place in Asia, with the region likely to account for more than half of global demand for mobile music services including ringtones, said Josep Anton Aliagas, Arena Mobile's chief executive.

 

Korea Herald, South Korea (online edition)

Front page

 

Pyongyang wants dialogue with US

North Korea yesterday made it clear that the motive behind its missile diplomacy is to draw US into dialogue. Han Song-ryol, deputy chief of North Korea's mission to the United Nations, said "Pyongyang understands Washington's concerns and is willing to solve this situation through discussions," Yonhap News agency quoted him as saying. Han also denied that the missile test violates a self-imposed moratorium that was extended in 2004.

 

Kim DJ postpones visit to North Korea

Former president Kim Dae-jung has again postponed a visit to North Korea amid mounting concerns that the North is preparing to test an intercontinental ballistic missile, an aide said yesterday. Kim was scheduled to visit Pyongyang from 27-30 June to meet North Korean leader Kim Jong-il. "(We) decided it is not an appropriate time," former unification minister Jeong Se-hyun who led negotiations on Kim's visit, told reporters in an emergency briefing.

 

Business & Industry

 

SKT to invest $1bn in China Unicom

Korea's largest wireless operator SK Telecom will invest $1bn to buy convertible bonds in China Unicom early next month, the company said in a statement yesterday. The company plans to buy the three-year bonds on 5 July, which can be converted into a 6.67% stake in China Unicom after one year has passed from the date of issuance.

 

Korea eyes big bang in capital market

The Korean economy, the world's 10th largest, is still underdeveloped in terms of its capital market and related financial services. Corporate financing through the capital market continues to shrink, while the financing itself, utilizing such tools as equities and corporate bonds, is decreasing.

 

Business Standard, India (online edition)

Front page

 

Jet, Sahara merger caught in tailspin

Jet Airways’ high-decibel deal to acquire Air Sahara lapsed today, with the Union home ministry withholding regulatory clearance and Air Sahara telling a Lucknow court that Jet had terminated the agreement. The home ministry is believed to have sought more inputs from the Intelligence Bureau before clearing Jet Airways Chairman Naresh Goyal’s appointment to the Air Sahara board.

 

Rs40bn Reliance gift on Left’s 30th birthday

Reliance Industries Chairman Mukesh Ambani has offered West Bengal an investment proposal of Rs40bn, on a day the Left Front government completed 30 years in office in the state. The proposed project primarily entails investments in the areas of retailing and gas distribution. Besides, the group is understood to have discussed taking over the Haringhata Dairy farm.

 

Companies & Industry

 

Elder Pharma targets Italian generics mart

After setting up a joint venture company in Nepal and a wholly-owned marketing subsidiary in Ghana, the Saxenas-promoted Elder Pharmaceuticals is looking at similar opportunities in the Italian generics market. The company is scouting for marketing alliances and joint ventures in Italy, one of the largest pharmaceutical markets in Europe, as part of its global expansion strategy, said Alok Saxena, director - international business, Elder Pharma.

 

L&T goes on the offensive with defence plan

Engineering and construction major Larsen & Toubro (L&T) is planning to set up a full-fledged life cycle support (LCS) unit that will service, repair and maintain arms and ammunition for the defence forces, including guns, tanks, radars, aircrafts, and rocket launchers. The LCS will work towards increasing life cycle of an equipment, thereby, minimising losses to the forces, said senior company officials.

 

Business Times, Singapore (print edition)

Latest News

 

SIC moves to widen takeover code

The takeover code could soon be extended to real estate investment trusts (Reits) and foreign corporations and business trusts with their primary listing in Singapore. The Securities Industry Council (SIC) yesterday issued a consultation paper on amendments to the Singapore Code Of Take Overs and Mergers, known as the Singapore Code.

 

Macquarie confirms interest in PCCW

Pacific Century Regional Developments (PCRD) was suspended again yesterday as the fight for its Hong Kong associate PCCW heats up after Australia's Macquarie Bank confirmed its interest - and in doing so seemed to put a spanner into an attempt by Newbridge to get PCCW on the cheap. Both PCRD and its 22.7% owned PCCW requested suspension yesterday, pending an announcement by PCCW amid reports that Texas Pacific Group may offer more than HK50bn or $6.4bn for PCCW's telecom and media assets. PCCW, controlled by Richard Li, son of Asia's richest man Li Ka-shing, is Hong Kong's largest telco.

 

Singapore Companies

 

SGX begins to accept GDR listings

Foreign-listed companies will find it easier to raise capital here after the Singapore Exchange (SGX) yesterday started to accept listings of global depository receipts (GDRs). These financial instruments, which represent the shares of foreign-listed companies, will be offered and traded only by institutional or accredited investors.

 

SembCorp outshines Suez Tractebel in re-bids for Abu Dhabi contract

Suez Tractebel, SembCorp Utilities' French rival for a mega $1.7bn power and desalination project in Abu Dhabi, has been squeezed out in the re-bids, screams the headline of a Global Water Intelligence (GWI) report.  And JP Morgan, which has just reiterated its 'overweight' call on SembCorp Industries at $3.61, says the group's latest revised bid could see an 8 cents per share uplift in return on net asset value (RNAV) and a 2 cents earnings per share (EPS) addition should it finally secure the project.

 

Bangkok Post, Thailand (online edition)

Front page

 

US rejects N Korea missile talks
The US is not prepared to hold direct talks with North Korea over a planned test of a long-range missile, US Ambassador to the UN John Bolton said Wednesday. The only solution to ease tensions over the situation is for North Korea to return to six-party talks, Bolton said, speaking to reporters at UN headquarters.

Metropolis plan draws more flak Democrats, activists, neighbours join fray

Neighbouring Samut Prakan province and activists yesterday joined the Democrat party in condemning the caretaker cabinet's decision to create a new province around Suvarnabhumi airport. Local authorities in Samut Prakan fear livelihoods would be affected as the government seemed to be going ahead without proper planning.

 

Business & Industry

 

Industry hopes for smooth opening

Although airlines remain sceptical about whether Suvarnabhumi airport will be ready for commercial use on 28 Sept, they have welcomed the government's decision to close Don Muang airport. Airlines and industry groups contacted by the Bangkok Post were not convinced that the new airport would open when scheduled and warned that rushing operations could result in costs and embarrassment for the country.

 

Taxmen get tougher

The Revenue Department plans to tighten its scrutiny of corporate tax returns to guard against tax evasion and siphoning by company directors and executives.

Caretaker finance minister Thanong Bidaya yesterday directed tax authorities to increase their scrutiny of tax payments.

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