SYDNEY, May 11: Australia and New Zealand Banking Group said on Friday it will cut its variable mortgage rate by 37 basis points, following rival banks in passing on some but not all of the central bank’s 50 basis point cut to the cash rate.
The move will see ANZ’s variable mortgage rate lowered to 7.05 percent per annum, the second highest of the major banks, and will be effective from May 18, ANZ said in a statement.
ANZ is the last of Australia’s major four banks to pass on a cut to its customers after the central bank cut the cash rate by a surprisingly aggressive half a point more than a week ago, saying the move was to ensure appropriate borrowing rates.
Movements in mortgage rates have a big economic impact in Australia where more than 90 percent of all home loans are variable. More than a third of Australia’s 8.5 million households have a mortgage.
(AGENCIES)
Australia’s ANZ cuts variable mortgage rate by 37 bps
BOJ revises rules for its foreign-asset management
TOKYO, May 11: The Bank of Japan on Friday revised its rules for managing its foreign currency assets, to place more emphasis on safety and liquidity in light of recent volatile global financial markets.
The BOJ said that under the news rules, it will limit its foreign-asset holdings to deposits in overseas central banks, and to government securities issued by U.S. And major European countries.
The BOJ held 4.35 trillion yen ($54 billion) worth of foreign assets as of September last year.
($1 = 79.9500 Japanese yen)
(AGENCIES)
Panasonic to acquire Firepro
BANGALORE, May 11: Panasonic Corporation will be acquiring 76.2 per cent of Firepro Systems Private to would enter into an agreement of subscriptions of allocation of new shares to a third party with its consolidated subsidiary, Anchor Electricals Private Limited.
Following the acquisition, Firepro’s management will continue to own 10.8%, and investment companies 13.0% of the company’s shares. Through a third party allocation of shares, Anchor will increase its capital.
The acquisition was a way forward in building the foundation by expanding comprehensive solutions business in India, the company said in a press release here, adding the move was in sync with Panasonic’s vision of becoming the No. 1 Green Innovation Company in the electronics industry by 2018.
Panasonic has worked to expand its performance in construction-related industries in the Indian market, centering on Anchor. Anchor is a top wiring device manufacturer in India with a robust sales network and brand strength; and has built a firm position in electrical construction materials for housing in particular. Firepro, a leader in the infrastructure protection and security space, offers integrated service solutions, along with complete management services, catered more so to the non-housing market. Panasonic aims at veering into both housing and
non-housing markets; and offering total solutions by adding Panasonic’s and Anchor’s product lineup to Firepro’s installation services for clients in the high-growth non-housing market (buildings, commercial facilities).
Both Panasonic and Firepro aim to develop a solutions business with general contracting covering the whole package of design, installation and services for building facilities, utilizing the engineering capabilities and client networking of Firepro, and the Panasonic’s wide range of products and technologies.
The closing process has been scheduled for late May, 2012 and there would be little effect on the financial outlook for FY2013 ending March 31, 2013 the release said. (UNI)
China factory production up 9.3 pct, well under forecast
BEIJING, May 11: China’s factory output rose by 9.3 percent in April compared with March’s 11.9 percent, sharply underperforming expectations as cooling demand at home and abroad dragged on production growth, the National Bureau of Statistics said on Friday.
Economists polled by Reuters had expected industrial production growth to stabilise at 12.0 percent in April from a year earlier.
Continued difficulty in access to loans has led to a softening in fixed-asset investment, which increased 20.2 percent in the January-April period from a year earlier, compared with an annual rise of 20.9 percent in the first three months.
Retail sales also underperformed market expectations for an annual growth of 15.2 percent, rising instead by 14.2 percent in April from a year earlier.
The data confirms expectations that the world’s No. 2 economy is losing steam. But the slowdown has been orderly, as desired by Beijing to make room for reforms that encourage domestic consumption while cutting China’s dependence on exports and pollution-belching industries.
(AGENCIES)
China Jan-Apr property investment up 18.7 pct on yr
BEIJING, May 11: China’s real estate investment rose 18.7 percent in the first four months from a year earlier, down from an annual increase of 23.5 percent in the first quarter, the National Bureau of Statistics said Friday.
Revenue from property sales in the country fell 11.8 percent in the January-April period from a year earlier, compared with an annual drop of 14.6 percent in the first three months, the agency added in a statement published on its website, www.Stats.Gov.Cn.
(AGENCIES)
China tightens restrictions on activist’s family
BEIJING, May 11: Authorities in the hometown of blind activist Chen Guangcheng have notched up restrictions on members of his extended family while he awaits permission in Beijing to travel abroad under an agreement between China and the US.
Chen Guangcheng’s brother and sister-in-law have been placed under house arrest, his nephew is in police detention, and several other relatives face some form of restriction on their movements in their village in Shandong province, according to Chen, his lawyers and a rights group.
Chen’s flight from abusive house arrest in Shandong and into the protection of US diplomats which led to an agreement with Beijing to let him study in the US accompanied by his wife and children has exposed the impunity of local officials and embarrassed the central government.
“I feel that Shandong’s retribution against me has already started,” Chen said in an interview Thursday from a hospital where he is being treated for injuries suffered during his dramatic escape from his guarded farm house.
The US said it was concerned about reports of reprisals against Chen’s family. State Department spokeswoman Victoria Nuland told reporters Thursday that the U.S. Made inquiries with China and “expressed our concern should there be any sense of reprisal.”
Chen’s nephew, Chen Kegui, is believed to have been detained in relation to a clash he had with officials who reportedly broke into his home after discovering that the activist had escaped in late April.
The nephew’s arrest notification allegedly says he is suspected of attempted “intentional homicide,” said Liu Weiguo, a lawyer who volunteered to defend Kegui but has yet to see the notification document himself. Liu said at least one local communist party official was injured in the April 26 fight but no one died.
Local Shandong police in the city and county overseeing Chen’s village said they weren’t aware of the situation with Chen’s family. Local communist party publicity officials could not be reached.
Police in the activist’s town are searching for the nephew’s wife and have threatened to detain his mother, Chen Guangcheng said.
“I hope that this issue gets some attention and that lawyers are able to meet the family and have the case entrusted to them,” he said. “They won’t let the lawyers enter the village and won’t let them interact with the family. In turn, they are taking revenge on my family like this. It is simply too outrageous.” (AGENCIES)
US Rep. Bachmann no longer wants Swiss citizenship
WASHINGTON, May 11: Former Republican White House candidate Michele Bachmann sought to withdraw her Swiss citizenship and dismissed any questions about her allegiance to the United States.
Bachmann, a US representative from Minnesota and a favorite of the conservative Tea Party movement, became eligible for dual US-Swiss citizenship in 1978 when she married her husband, who is Swiss.
She activated that right because three of their five children wanted to do so and they went through the process as a family, a spokeswoman said.
A spokesman at the Swiss Embassy said Bachmann had activated that citizenship in March.
Bachmann, who pulled out of the presidential race in January, said in a statement yesterday that she had written to the Swiss Consulate asking to withdraw the dual status.
“I took this action because I want to make it perfectly clear: I was born in America and I am a proud American citizen,”
she said.
(AGENCIES)
Oil falls on weak Chinese data, OPEC supply rise
SINGAPORE, May 11: Oil prices fell in Asian trade today, weighed down by disappointing Chinese trade data and an increase in crude production by the OPEC cartel, analysts said.
New York’s main contract, West Texas Intermediate crude for delivery in June, was down 94 cents to USD 96.14 per barrel while Brent North Sea crude for June shed 81 cents to USD 111.92 in morning trade.
“Weaker-than-expected Chinese trade data, higher OPEC production and evidence of a strengthening US jobs market muddied the oil demand outlook,” said Phillip Futures in a market commentary.
Official customs data released Thursday showed imports in China—the world’s top energy consumer — edged up just 0.3 per cent year on year to USD 144.83 billion in April, raising questions about the government’s ability to boost domestic demand.
China’s exports to the debt-hit European Union grew a mere 0.3 per cent from January to April, reflecting recent indications of a contraction in manufacturing activity.
China’s weak trade performance could lead the government to loosen monetary policy to spur expansion and avoid missing annual growth targets, Phillip Futures said.
An increase in oil production by the Organisation of the Petroleum Exporting Countries (OPEC) also pressured prices, analysts said.
In its latest report, the 12-nation cartel said it pumped 31.62 million bpd (barrels per day) in April, up 0.32 million bpd from March, with Iraq, Libya, Saudi Arabia, Nigeria and Angola hiking production in a bid to stabilise prices.
Markets also remain shaken by worries about the eurozone after elections in Greece and France highlighted public rejection of austerity measures aimed at dealing with the eurozone debt crisis. (AGENCIES)
Philippines on alert over anti-China protest, Beijing frets
MANILA, May 11: Security was tightened in the Philippines capital today ahead of anti-Chinese protests over a territorial dispute in the South China Sea, with both Beijing and Taipei warning their citizens to be on guard for violence.
Some 1,000 people from civil society and political groups were expected to march to a Chinese consular office in Manila to protest against what they say are Chinese intrusions, as tensions increase in the long-standing territorial dispute.
The row in the South China Sea is potentially the biggest flashpoint for confrontation in Asia, and tensions have risen since the United States launched a policy “pivot” last year to reinforce its influence in the region.
“The United States’ shift in strategic focus to the east and its entry into the South China Sea issue has provided the Philippines with room for strategic manoeuvre, and to a certain extent increased the Philippines’ chips to play against us, emboldening them to take a risky course,” said the Liberation Army Daily, the chief mouthpiece of China’s military.
The Philippines is one of Washington’s closest allies in the region. The South China Sea islands, believed to be rich in oil and other resources, are claimed wholly or in part by China, the Philippines, Taiwan, Vietnam, Malaysia and Brunei.
Beijing has warned Chinese nationals in Manila to stay indoors, avoid demonstrations and refrain from confrontations with locals. It has urged Manila to ensure the safety of its citizens. Taiwan issued a similar warning to its nationals in Manila.
In Beijing, authorities stepped up security around the Philippines’ embassy, with squads of police waiting in streets near the mission and plainclothes guards also monitoring passers-by.
(AGENCIES)
Mexican airport reopens after volcano activity
MEXICO CITY, May 11: The airport in the central Mexican state of Puebla reopened last night after it was closed briefly by an ash cloud from a nearby volcano, said an official from the local government.
The airport closed earlier yesterday after increased activity from the Popocatepetl volcano, which dumped ash on runways.
Mexico last month raised the alert level for the volcano Popocatepetl,80 km southeast of Mexico City, after it began pumping out red-hot fragments of rock and ash.
The country has been closely monitoring the 5,450-metre volcano, which has prompted school classes in nearby villages to be suspended on days of higher activity.
The airport in Puebla also closed for several hours late on Tuesday due to the concentration of ash billowing out of
Popocatepetl. German carmaker Volkswagen’s Mexican operations are based in Puebla.
(AGENCIES)