Asian stock markets were mostly higher Thursday after the U.S. central bank pledged to keep interest rates low for another three years to nurture the country’s stubbornly slow economic recovery.
Hong Kong’s Hang Seng Index jumped 1.1 percent to 20,322.51 on its first trading day since the Chinese New Year holiday. South Korea’s Kospi rose 0.2 percent to 1,956.14. Benchmarks in Singapore and New Zealand also rose.
Japan’s Nikkei was 0.4 percent lower at 8,846.96, following strong gains a day earlier. Markets in Taiwan and mainland Chinese remained closed for the Chinese New Year. The Australian market was closed for a public holiday.
On Wednesday, the U.S. Federal Open Market Committee said it was unlikely to raise interest rates before late 2014. It had previously said it expected to keep rates low into the middle of 2013.
The Fed cut rates to near zero in December 2008, during the financial crisis, and has held them there ever since. The announcement was a sign that the Fed expects the economy, which is improving, to need significant help for three more years.
Analysts said stock buyers rejoiced that the Fed was leaning toward promoting economic growth.
“With the FOMC sending out a strong signal that monetary policy is likely to remain accommodative for even longer than previously expected, risk assets are in a very good position,” said Stan Shamu of IG Markets in Melbourne guaranteed personal loan approval.
Wall Street welcomed the news, with the Dow Jones industrial average closing up 0.6 percent at 12,756.96 _ the highest close since May 10. The Standard & Poor’s 500 index rose 0.9 percent to 1,326.06. The Nasdaq composite index gained 1.1 percent to close at 2,818.31.
Benchmark crude for March delivery was up 39 cents to $99.79 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose by 45 cents to finish at $99.40 per barrel in New York on Wednesday. At one point it was as high as $100.40.
The prospect of low interest rates weighed on the dollar, since it reduces the returns that investors get from holding assets denominated in that currency. The euro rose to $1.3103 from $1.3084 late Wednesday in New York. The dollar fell to 77.75 yen from 77.81 yen.
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South Korea has lifted an eight-year ban on imports of Canadian beef.
Seoul imposed the ban after mad cow disease was found in a Canadian cow in 2003. Canada has since been recognized as a “controlled risk” country for beef by the World Organization for Animal Health. Canada filed a complaint with the World Trade Organization over the South Korean ban in 2009.
South Korea’s Agriculture Ministry says the ban was lifted on Friday. But it says Seoul will only allow imports of Canadian beef from cattle younger than 30 months old. Younger cows are deemed less susceptible to mad cow disease.
The ministry also said the imports must exclude riskier parts such as the brain, skull and eyes.
South Korea was Canada’s fourth-largest beef export market before the ban.
TORONTO
Globalization and technology are intensifying the growing income gap between the rich and poor in Canada, economists say.
And government policies aren
Italian Premier Silvio Berlusconi’s main coalition ally urged him to step aside Tuesday as political uncertainty in the eurozone’s third-largest economy rocked financial markets for yet another day.
Berlusconi’s government is under intense pressure to enact quick reforms to shore up Italy’s defenses against Europe’s raging debt crisis. However, a weak coalition and doubts over Berlusconi’s ability to push through austerity and reforms have financial markets fearing some type of financial disaster in Italy.
“We asked him to step aside, take a step to the side,” Northern League leader Umberto Bossi told reporters as he arrived ahead of a key vote that could force Berlusconi’s resignation. Bossi is the volatile ally who brought down Berlusconi’s first conservative government in 1994 when he yanked his support.
With debts of around euro1.9 trillion ($2.6 trillion), Italy is considered by many as being too big for Europe to bail out, like it has already done for Greece, Portugal and Ireland.
Italy’s center-left opposition said it would abstain in Tuesday’s voting, to make it clear just how fragile Berlusconi’s forces in Parliament are. If he is backed by less than 316 deputies _ or less than half of the 630-member chamber — it would be plain that Berlusconi can no longer count on a majority in the lower house of Parliament, even though the government mathematically could still win the vote to approve the 2010 state finances.
Bossi said the man Berlusconi has already hand-picked to be his eventual successor, former Justice Minister Angelino Alfano, should now lead the government.
But it would be up to the Italian president, Giorgio Napolitano, to decide whether to appoint a new leader or dissolve parliament and call early elections.
International financial officials and the markets, meanwhile, fretted over how long it was going to take for lawmakers to approve measures promised by Berlusconi to rein in Italy’s galloping public debt.
With that in mind, Italy’s borrowing rates spiked Tuesday to their highest level since the euro was established in 1999. Higher rates would make it more difficult for Italy to rollover its debts and will mean they consume more and more of its national income. Italy has over euro300 billion ($412 billion) to raise in 2012 alone.
By late-morning, the yield on Italy’s ten-year bonds was up 0.07 percentage point at 6.60 percent, down from an earlier high of 6.74 percent. A rate of over 7 percent is considered unsustainable and proved to be the trigger point that forced Greece, Ireland and Portugal into accepting financial bailouts.
MADISON COUNTY
The threat that floodwaters will inundate Thailand’s capital could ease by the beginning of next month as record-high levels in the river carrying torrents of water downstream from the country’s north begin to decline, authorities said Sunday.
The Flood Relief Operations Command made the comments just a day after reports that Bangkok’s main Chao Phraya river was overflowing its banks deepened concerns that the city would be inundated. The report said the river was at its highest levels in seven years.
The command’s chief, Justice Minister Pracha Promnok, said in a televised press conference Sunday that people should not be too concerned about the river’s spillover because it could be drained off. He also said water in Klong Prapa, a major canal that had been overflowing, was receding, and that plans to drain water to the east and west were working well.
Floodwaters that have spilled onto highways north of the capital, including near Bangkok’s second airport in the Don Muang district, came from rising groundwater that will quickly recede, he said.
Off the highways, however, the situation remained dire. Associated Press reporters found people scrambling for safety outside a hospital in northern Rangsit district, where the water was waist-deep.
The flood relief agency said “people should adjust their lifestyles in accordance with the situation” and check all information because rumors have been quick to circulate. Prime Minister Yingluck Shinawatra said Saturday that the waters may take up to six weeks to recede to manageable proportions.
The death toll from the flooding, which began in August in northern Thailand before moving south, has reached 356, while the economic costs are estimated to be as high as $6 billion and still counting.
Residents of Bangkok and its suburbs have settled into a daily routine of waiting and worrying. Advice from the authorities has generally been vague or sometimes overly detailed, giving little idea of the urgency of evacuation, so many people have decided to hunker down in their homes and hope for the best.
Many are hoarding supplies for the aquatic siege, and supermarket shelves have been emptying faster than they can be restocked. Bottled water, batteries and canned food were among the first items to go.
At a supermarket in central Bangkok’s business district _ which is not under immediate threat _ sandbags were lined up at both entrances Sunday, forcing shoppers to step over to go inside. Many of the shelves were bare, with the handful of shoppers inside grabbing the few snacks that were left small personal loans. Cat food and toilet paper were gone.
While larger stores in Bangkok have kept their prices fixed, in the flooded zones north of the city, smaller merchants were raising theirs. A Rangsit resident, Taweetit Hongsang, complained that the price of a papaya, 10 baht (33 cents) a week ago, had shot up to 30 baht ($1)
The front lines in the battle against the flood have been shifting every day, but always drawing closer to the capital. The latest red zone is the Don Muang area in northern Bangkok, where the city’s second and older airport _ now serving as an anti-flood headquarters and evacuation center _ is located.
Other spots of concern in Bangkok are in the west, where several thousand people living along the Chao Phraya river have been advised to move, as high tides expected late Sunday could cause the river to overflow its banks in some areas, and in the east, where barriers were being erected to protect an industrial estate.
At least five major industrial estates north of Bangkok have been forced to suspend operations, contributing to an estimated 700,000 people put out of work by the flooding. Among those affected are Japanese carmakers Toyota and Honda, which have halted major assembly operations. The electronics industry has also suffered, including computer hard drive maker Western Digital, which has two major production facilities in the flooded zone.
Some flooding on Bangkok’s outskirts was expected after Yingluck ordered floodgates opened Thursday in a risky move to drain the dangerous runoff through urban canals and into the sea. Nobody knows with any certainty to what extent the city will flood.
In a weekly radio address Saturday, Yingluck said that “during the next four to six weeks, the water will recede.”
In the meantime, the government will step up aid to those whose lives have been disrupted, including 113,000 people living in temporary shelters after being forced to abandon submerged homes, she said.
The flooding is the worst to hit Thailand since 1942, and the crisis is proving a major test for Yingluck’s nascent government, which took power in July after heated elections and has come under fire for not acting quickly or decisively enough to prevent major towns north of the capital from being ravaged by floodwaters.
JEFFERSON CITY
Liz Claiborne Inc., which hasn’t had an annual profit since 2006, is planning to sell several brands, including its namesake business, and will change its name.
The company said Wednesday that it will focus on its Juicy Couture, Lucky Brand and kate spade brands, and says the name change will reflect that. It hasn’t picked a new name yet.
It expects to generate about $328 million from its sales of the Liz Claiborne and other brands.
Its stock jumped $1.65, or 32.4 percent, to $6 paydayloans.75 in premarket trading.
The company is selling its Liz Claiborne brands and Monet jewelry brand to department store operator J.C. Penney Co. for about $288 million. It is also selling the Kensie brand to Bluestar Alliance and has closed on the sale of its Dana Buchman brand to Kohl’s Corp for about $40 million.
After years of wars, sanctions and drought, farmer Qais Nima Khamis says it’s time to save the dates _ and bring back Iraq’s long-regaled fruit palm industry, which once led the world market.
Khamis, whose family has been growing the fruit since 1880, is growing hundreds of more date trees this year, aiming to double his grove to up to 1,500 palms. The government is taking its own action to revive Iraq’s lost golden age of dates, supporting farmers with loans and launching nurseries.
It’s just a start, said the 40-year-old Khamis, but “Iraq is now open to all the world, the government started some steps and that has brought some hope.”
During its heyday, in the 1950s and 1960s, Iraq was the world’s No. 1 date producer and exporter and boasted 32 million date palms, more than any other nation in the world. At that time, Iraq produced about 1 million tons of dates annually, said Kamil Mikhlif al-Dulaimi, head of the Agriculture Ministry’s Date Palm Board.
But by 2003, there were only half that number of trees and production fell to 200,000 tons. The southern province of Basra was the worst hit by the slump, with only about a quarter of the 12 million date trees it once had.
“That prompts only deep sadness,” al-Dulaimai said in an interview.
It’s not just an economic issue of getting a bigger slice of a date export market that nets big producers like Iran and Pakistan millions of dollars a year. Being renowned for dates is also a point of pride. Like all Muslims, Iraqis honor the date palm as a blessed plant.
It is mentioned many times in the holy book of Quran which, at one point, states that Mary gave birth to Jesus under a palm tree and she ate its fruit to ease the pain of childbirth. And the prophet Mohammed stressed the benefits of dates as a medicine for several human diseases. A date is the traditional way for Muslims around the world to break their daily sunrise to sunset fast during the holy month of Ramadan.
Now, with the worst years of violence following the 2003 U.S.-led invasion over and oil revenues bubbling on the horizon, Iraq has focused on the date industry as one of several sectors _ including oil, agriculture and infrastructure _ it wants to develop.
The government has begun supporting date farmers with soft loans to plant new orchards and subsidized fertilizers and insecticides. It established the Date Palm Board in 2005 with a mission to more than double to number of trees nationwide to 40 million by 2021.
The board has built 30 nurseries around the country to produce new varieties and it has launched programs to rehabilitate old orchards and build processing and storage facilities. It is aiming to develop tree varieties that produce fruit in two years rather than the four or five it usually takes.
The push has brought some progress. The number of trees has risen to 21 million trees, producing 420,000 tons last year, al-Dulaimi said.
“This is a major leap forward,” al-Dulaimi said proudly. “We are reaping the fruits of these efforts.”
Marhon Abid Falih, a date farmer south of Basra, would like to reap some of those profits. But he’s not sure the government can help.
Iraq’s chronic problems over the decades _ lacking of water, electricity, fuel, and storage _ have forced many farmers to abandon cultivation and find another jobs like in the army or police.
In 2002, Falih’s orchard in the Abu al-Khasib area south of Basra boasted as many as 200 date palm trees. He grew fruits and vegetables in their shade, and hired dozens of workers to help him during harvest. The farm made enough money to meet all his family’s daily needs.
But a year later, his farm was hit by drought and its soil grew bitter. Only about 50 trees survived.
“There is no motive to cultivate anymore,” said Falih, 52.
“It’s not a matter of planting new trees or taking loans,” he said. “There is no a longer benefit from agriculture because of the salinity and dearth of water. All attempts are in vain.”
“We will look for another work and come back only when there is water.”
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