US recalls hit 20 million
Automakers recalled about 20 million vehicles in the US this year, led by high-profile recalls by Toyota that prompted new scrutiny of the auto industry’s safety record. An analysis of federal data shows that the number of recalls this year is the largest since 2004. Toyota recalled about 7.1 million vehicles this year to fix faulty gas pedals, floor mats that could trap accelerators, defective braking and stalling engines. General Motors recalled about 4 million vehicles, while Japanese automakers Honda and Nissan both recalled more than 2 million cars and trucks. The auto industry set a record with 30.8 million recalled vehicles in 2004.
Industrial output rises
After contracting for three straight months, South Korea’s industrial output rose last month from a month earlier thanks to brisk production of cars, semiconductors and parts, figures showed yesterday. Statistics Korea said that production in mining and manufacturing rose 1.4 percent from October and increased 10.4 percent year-on-year. However, the leading economic composite index, a gauge of economic performance eight to 15 months ahead, dipped 0.8 percentage points from a month earlier, marking its 11th straight month of contraction.
Indonesia to tighten rules
Indonesia said it would tighten rules on banks’ foreign exchange holdings and overseas borrowing to cope with capital inflows that have pushed up inflation and strengthened the rupiah this year. Bank Indonesia will also reintroduce a 30 percent cap on lenders’ short-term overseas borrowing to minimize the risk of sudden capital outflows, it said on Wednesday. Banks must set aside 5 percent of their total foreign exchange holdings as reserves as of March next year, up from 1 percent, Bank Indonesia Deputy Governor Budi Mulya said at a press briefing in Jakarta on Wednesday. The reserve requirement will rise to 8 percent effective June next year.
Economy doing well: official
Bank of Canada Governor Mark Carney said the Canadian economy performed “very well” this year relative to other major economies. “The Canadian economy was, at least relative to its peers, performing very well,” Carney said on Wednesday in an interview with Canadian Broadcasting Corp, adding that the recovery prompted the central bank to unwind exceptional measures and begin raising interest rates. Bank of Canada raised its overnight target rate three times this year to 1 percent, before pausing in September.
ADT to take control of port
An Abu Dhabi state-run company is taking operational control of the city’s port from neighboring Dubai’s port management firm DP World. DP World and Abu Dhabi Terminals (ADT) said yesterday that ADT will assume management control of the Mina Zayed facility next year, once an existing management services agreement expires.
Carrefour opens India store
Carrefour SA, the world’s second-largest retailer, opened its first wholesale store in India as it seeks to expand in emerging economies amid increased competition that is crimping margins in developed markets. The store is located east of New Delhi in the Shahadra neighborhood, the Paris-based retailer said yesterday in an e-mailed statement.