International
Friday, September 23, 2011
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BUSINESS Taiwan and Japan sign investment pact Associated Press
TAIPEI — Taiwan and Japan have signed an arrangement to bolster investment despite the lack of diplomatic ties. Taiwan’s East Asia Relations Commission Chairman Peng Runtsu signed the agreement Thursday with his Japanese counterpart Mitsuo Ohashi, who is chairman of the Japan Interchange Associa-
tion. The deal is not expected to GUDZ SURWHVWV IURP &KLQD %HLMLQJ claims sovereignty over the selfruled island but has improved ties with its rival in recent years.
Last year, China signed a landmark deal to offer tariff cuts for hundreds of Taiwan-made goods. Tokyo switched recognition IURP 7DLSHL WR %HLMLQJ LQ
Nissan, Mitsubishi strengthen cooperation starting from summer next year. They have also started talks on TOKYO — Japanese auto- Mitsubishi providing the Minicabmakers Nissan and Mitsubishi are MiEV commercial electric car to strengthening their cooperation by 1LVVDQ LQ WKH ¿VFDO \HDU WKDW EHJLQV expanding the number of models April 2012. 6XFK 2(0 GHDOV DUH IDLUO\ they make for each other in Japan. Nissan and its smaller rival Mit- common in the auto industry. They subishi have had what is called an allow companies to cut costs by original equipment manufacturer, or increasing production scale and to OEM, deal since December 2010. expand their lineup of types of cars 7KH\ PDQXIDFWXUH VSHFL¿F YHKLFOH they don’t want to invest in the demodels for each other and sell them velopment or manufacturing of. 8QGHU DQ HDUOLHU DJUHHPHQW under their own brands. Nissan Motor Co. said Thursday Nissan, which also makes the Leaf it will provide the Fuga luxury electric car and March subcompact, sedan to Mitsubishi Motors Corp., is providing the NV200 Vanette
Associated Press
compact van to Mitsubishi Motors from next month. 7KH\ DOVR VHW XS D MRLQW YHQWXUH called NMKV Co., which began operating in June, to work together on minicars for the Japanese market, which may later include other nations. Mitsubishi President Osamu 0DVXNR KDV VDLG KH KRSHV WKH MRLQW venture will fuse his company’s design expertise with Nissan’s purchasing power. “These initiatives are intended to strengthen the competitiveness of both companies in Japan,� both sides said in a statement.
AP Photo/Shizuo Kambayashi
Nissan Motor Co. chief vehicle engineer Hidetoshi Kadota demonstrates how to charge a Nissan’s electric vehicle during a media event unveiling a new charger in Tokyo, Monday, Sept. 12, 2011. Japanese automakers Nissan and Mitsubishi are strengthening their cooperation by expanding the number of models they make for each other in Japan.
Fed takes new tack to avoid economic slump Reuters
WASHINGTON - The Federal Reserve on Wednesday warned of VLJQLÂżFDQW ULVNV WR WKH DOUHDG\ ZHDN 8 6 HFRQRP\ DQG ODXQFKHG D new plan to lower long-term borrowing costs and bolster the battered housing market. 7KH 8 6 FHQWUDO EDQN VDLG LW ZRXOG VHOO ELOOLRQ RI VKRUW WHUP 7UHDVXU\ ERQGV WR EX\ WKH VDPH DPRXQW RI ORQJHU WHUP 8 6 JRYHUQment debt, its latest attempt to kickstart growth that slowed to a crawl RYHU WKH ÂżUVW KDOI RI WKH \HDU Apparently spooked by the central bank’s dismal outlook for the HFRQRP\ 8 6 VWRFNV VROG RII 7KH 6WDQGDUG 3RRUÂśV LQGH[ closed down nearly 3 percent. Prices for long-term government debt rose, pushing yields lower -- a sign the measures were more aggressive than some investors had expected. The yield on the benchmark 10-year note dropped as low DV SHUFHQW WKH ORZHVW LQ PRUH WKDQ \HDUV “Recent indicators point to continuing weakness in overall labor market conditions, and the unemployment rate remains elevated,â€? the )HG VDLG LQ D VWDWHPHQW DIWHU D WZR GD\ PHHWLQJ Âł7KHUH DUH VLJQLÂżFDQW downside risks to the economic outlook, including strains in global ÂżQDQFLDO PDUNHWV ´ In offering a fresh approach to spur the economy and lower unemployment, the Fed ignored top Republicans on Capitol Hill who had pressed the central bank to refrain from action. ,Q DGGLWLRQ WR UHEDODQFLQJ LWV SRUWIROLR WKH )HG LQWHQVLÂżHG LWV HIforts to shore up the housing market by pledging to reinvest proceeds from maturing housing-related debt it holds back into the mortgage market. Analysts said the Fed’s actions might not have a great impact, even if they did lower long-term interest rates. “The cost of borrowing simply isn’t the problem,â€? said Paul Ashworth, an economist at Capital Economics in Toronto. “Businesses GRQÂśW KDYH WKH FRQÂżGHQFH WR LQYHVW DQG KDOI RI DOO PRUWJDJH ERUURZHUV GRQÂśW KDYH WKH KRPH HTXLW\ QHHGHG WR UHÂżQDQFH DW ORZHU UDWHV ´ 6WLOO IDFHG ZLWK D ORIW\ SHUFHQW MREOHVV UDWH DQG DQ HVFDODWLQJ VRYHUHLJQ GHEW FULVLV LQ (XURSH )HG RIÂżFLDOV IHOW WKH\ QHHGHG WR GR ZKDW WKH\ FRXOG WR WU\ WR EUHDWKH PRUH OLIH LQWR WKH VOXJJLVK 8 6 recovery. The economy grew at less than a 1 percent annual rate over the ÂżUVW KDOI RI WKH \HDU DQG DQDO\VWV KDYH ZDUQHG RI D KHLJKWHQHG ULVN of recession. With Fed Chairman Ben Bernanke reluctant to stay on the sidelines, his activism has become a punching bag for politicians as an election year nears. Top Republican lawmakers wrote to Bernanke this week urging the central bank to resist further economic interventions, echoing criticism voiced by Republican presidential candidates. The portfolio retooling plan stops short of an outright expansion of the Fed’s holdings -- sometimes referred to as quantitative easing -- of the type that has drawn harsh criticism domestically and internationDOO\ IRU VRZLQJ WKH VHHGV RI LQĂ€DWLRQ DQG GHEDVLQJ WKH GROODU 6RPH DQDO\VWV KRZHYHU H[SHFW WKH PRYH ZLOO EH RQH LQ D VHULHV RI steps the Fed takes to help the economy. The Fed could cut the rate it pays banks for reserves parked at the central bank, which might free up lending, or promise not to raise rates until unemployment drops to a certain level. By shifting its bond holdings into longer maturities, the Fed is trying to push long-term interest rates lower, which hopefully will spur PRUWJDJH UHÂżQDQFLQJ DQG ERUURZLQJ E\ EXVLQHVVHV DQG FRQVXPHUV Not all policymakers were on board with the Fed’s latest move. The VDPH WKUHH RIÂżFLDOV WKDW KDG GLVVHQWHG DJDLQVW D GHFLVLRQ LQ $XJXVW WR bolster a low interest rate pledge also opposed Wednesday’s move. 0RKDPHG (O (ULDQ FR FKLHI LQYHVWPHQW RIÂżFHU DW 3,0&2 WKH world’s biggest bond fund, said the combination of dissents and a gloomier outlook pointed to a growing policy divide. 7KH FHQWUDO EDQN VDLG LW ZLOO EX\ ELOOLRQ LQ VHFXULWLHV ZLWK maturities of six to 30 years by the end of June 2012, selling an equal amount of debt maturing in three years or less.