MORSi ROAStS IRAN - Kuwait Times

FRIDAY, AUGUST 31, 2012
SEOUL: Hyundai Motor Co. and its
labor union reached a tentative agreement
yesterday to eliminate night
shifts and increase wages, moving one
step closer to end the company’s first
strike in four years.
The preliminary agreement means
that workers will halt limited strikes
they have been staging since July,
which have resulted in 1.59 trillion
won ($1.4 billion) of lost output for
South Korea’s largest carmaker, the
company said. Hyundai and union officials
wrapped up their four-month
negotiations and agreed to scrap night
shifts starting March 2013. Hyundai
will invest 300 billion won, or $264 million,
in facilities to help it maintain the
current level of output despite
reduced working hours.
The deal will be put to a vote by
Hyundai’s more than 40,000 unionized
workers on Sept. 3. Kwon Oh-il, an official
at Hyundai’s labor union, said it
was uncertain whether the workers
would approve the terms.
“In previous years, there were cases
when the tentative deal had failed to
win majority votes,” Kwon said by
phone. Since July, Hyundai’s labor
union staged a series of brief walkouts
to put pressure on management during
negotiations. Workers at Kia
Motors Co. and General Motors Co. in
Korea also have staged limited strikes
to press demands for an end to night
shifts and new wage terms.
Earlier this month, unionized workers
at GM’s Korea unit rejected a tentative
deal reached between management
and the union’s board. The union
staged a partial strike Wednesday that
Business
Hyundai Motor reaches deal with labor union
HAMI: This picture taken on August 6, 2012 shows workers
checking on a solar panel at a field in Hami, China’s farwest
Xinjiang region. German Chancellor Angela Merkel
said yesterday that a dispute between Chinese and
European solar panel makers should be solved via talks,
not trade limits. — AFP
HK shares slide, China
lingers at 3-1/2-year low
HONG KONG: Hong Kong shares closed at their lowest in a
month yesterday, with bank shares hurting after disappointing
earnings from China’s Agbank and property stocks slumping
on media reports about imminent curbs on the sector.
Turnover stayed weak, in line with low trading interest
across asset classes this week ahead of today’s annual meeting
of central bankers in Wyoming. The past two years,
Federal Reserve Chairman Ben Bernanke signalled new policy
easing. Onshore Chinese markets yesterday lingered at their
lowest levels since early 2009, with the metals and mining sector
weak as iron ore prices sank to near three-year lows on
sagging Chinese demand.
Hong Hao, chief strategist at Bank of Communications
International Securities, said that A-share underperformance
is making more people look into whether there are bigger
structural problems in the Chinese economy.
He suggested that for now, investors should stay defensive
and brace for more downward revision of earnings. “If you
don’t have to do anything, then don’t-unless you have a
strong view on quantitative easing from the Fed,” Hong said.”
But even then, I’m not risking my money for a 5 percent gain
in the short term.” The Hang Seng Index shed 1.2 percent to
19,552.9, the lowest close since July 27. It opened below its
200-day moving average, now at 19,763.7, which triggered
stop-losses in the index futures market at around 19,700. That
caused losses to accelerate, traders said.
The CSI300 Index of the top Shanghai and Shenzhen listings
slipped 0.2 percent to 2,211.4, the lowest close since
March 2009. The Shanghai Composite Index ended flat as
bourse volume rose 19 percent from Wednesday, almost in
line with its 20-day moving average.
Mining companies were weak, with Citic Pacific down 4
percent. But there was some respite for beleaguered steel
companies, which need iron ore. Angang Steel jumped 4 percent
in Hong Kong. Agricultural Bank of China (AgBank), the
sector’s third-biggest lender, fell on a bigger-than-expected
margin decline. Banks’ net interest margins measure loan
profitability and are expected to shrink in the wake of China’s
interest rate liberalisation, which has narrowed spreads
between what banks pay depositors and what they charge
borrowers. —Reuters
BEIJING: Expressing alarm at Europe’s
debt problems, Chinese Premier Wen
Jiabao called on Greece, Spain and Italy
to embrace budget cuts and get their
finances in order after meeting yesterday
with visiting German Chancellor
Angela Merkel.
Wen said Beijing is willing to keep
buying European bonds but gave no
sign Beijing will bail out the eurozone.
Merkel was in Beijing for talks aimed at
boosting trade and allaying Chinese
fears about Europe’s heavy government
debts. China has a stake in a resolution
because Europe is its biggest export
market and Beijing holds billions of dollars
in European bonds.
“The European debt crisis has continued
to worsen, giving rise to serious
concerns in the international community.
Frankly speaking, I am also worried,”
Wen told reporters. He cited uncertainty
over whether Greece leaves the eurozone
and whether Italy and Spain will
take “comprehensive rescue measures,”
a reference to spending cuts and tax
increases to balance their budgets.
“Resolving these two problems rests
with whether Greece, Spain, Italy and
other countries have the determination
for reform,” the premier said. “Resolving
the European debt problem requires fiscal
tightening and finding balance within
individual economies.”
Wen’s comments were unusually
pointed for China, which says governments
should not interfere in each other’s
affairs. But the country’s leaders are
increasingly worried about the safety of
their European debt holdings and
European economies where Chinese
companies are expanding.
Wen said Beijing was willing to buy
European bonds so long as it could evaluate
the risks and to help the European
Union, International Monetary Fund and
European Central Bank - the so-called
troika - support indebted eurozone
countries “in overcoming hardships.”
Wen made a similar pledge of possible
Chinese aid to European bailout
funds during Merkel’s last visit to Beijing
in February but it is unclear what the
communist government has done. The
European Financial Stability Fund, set up
to lend to troubled governments, says
China and other Asian investors have
bought 40 percent of its bonds but has
released no other details.
Merkel told reporters that while the
crisis is not over, countries such as Italy
and Greece were “on an intensive road
of reforms. I am convinced that this will
bear fruit.” Greek politicians agreed this
week on an austerity package demanded
by creditors but were negotiating
details. Inspectors from the troika are
due in Athens next month for a review,
on which hinges a rescue loan installment
of euro 31 billion.
“I want Greece to remain part of the
eurozone,” Merkel said. “I have at the
same time indicated that credibility is
very important in the eurozone.
Therefore we expect the program to be
implemented.”
Ahead of Merkel’s visit, German officials
told reporters Berlin wanted to
reassure Beijing that European debt is a
“safe and good investment.” Later, Wen
and Merkel presided at a signing ceremony
for billions of dollars in business
deals - a regular event during visits by
European leaders.
Airbus Industrie, a unit of the French-
German consortium EADS, committed
to invest $1.6 billion in the second
phase of an aircraft final assembly plant
opened in 2008 in Tianjin, Wen’s hometown.
A Chinese state company signed
an agreement to purchase 50 Airbus jetliners
valued at $3.5 billion.
Volkswagen AG, Europe’s biggest
the company said caused a loss in production
of 15,000 vehicles. The strike is
expected to make a dent on Hyundai’s
bottom line for the current quarter.
However, the company will likely meet
its sales target this year because it
exceeded its production target in the
first six months of the year, which
could make up for the lost output, analysts
said. “The strike is unlikely to have
much impact on its annual earnings,
though it will affect its quarterly financial
results,” said Suh Sung-moon at
Korea Investment & Securities. — AP
China’s Wen calls for
action on Europe debt
European debt crisis continues to worsen
automaker, signed a deal to invest $219
million in an “environmentally friendly
production facility” and vocational training
initiative, also in Tianjin. Eurocopter,
another EADS unit, signed an agreement
to build a $12.5 million production
facility in China.
Officials of the two governments also
signed agreements to collaborate in
biotechnology, electric vehicles, agriculture,
education, labor and the environment.
The next round in a regular series
of Chinese-German meetings was
scheduled for next year, but German
officials say Wen asked Merkel to come
early before the Communist Party
begins a once -a-decade handover of
power to younger leaders in October.
Merkel met later Thursday with Xi
Jinping, who is due to become party
leader and president. The two-day visit
comes as Beijing is struggling to pull
China out of its deepest economic
slump since the 2008 global crisis. The
government has cut interest rates twice
and is pumping money into the economy
with a wave of investments by state
companies.
A Cabinet official said Wednesday
that official measures are starting to
take effect and growth was “stabilizing
at a slow pace.” But corporate profits are
down and a survey of manufacturers
released last week showed future export
orders have fallen. — AP
BEIJING: German Chancellor Angela Merkel, left, shakes hands with Chinese
Premier Wen Jiabao after a joint press conference at the Great Hall of the
People in Beijing, China, yesterday. — AP