Tue, Jul 05, 2011 - Page 10 News List

World Business Quick Take

Agencies

UNITED STATES

Stimulus needed: Roubini

The economy needs more fiscal stimulus in the short term because it remains weak, followed by measures to “deal with fiscal problems or you’re going to have a fiscal train wreck,” Nouriel Roubini said. “The right solution would be to commit to a program of trying to control spending and raise taxes gradually over the next five years,” said Roubini, co-founder of Roubini Global Economics, in an interview with Bloomberg Haberturk TV on the sidelines of the Aspen Ideas Festival in Aspen, Colorado. “The trouble is we’re doing short-term drag rather than stimulus and we’re not committing to anything in the medium term, so the policy in the US is not optimal,” he said. The Federal Reserve may be pushed by weaker-than-expected or stalled growth to do something that’s not yet priced into the market, Roubini said. “This is QE3 after QE2. It’s not going to make a huge difference, but you need more monetary stimulus,” he said.

HONG KONG

Investors subject to tax

Individual investors in Chinese companies listed in the territory will be subject to a 10 percent witholding tax on dividends, according to a statement on the government’s Web site yesterday. China’s State Administration of Taxation clarified the issue of the dividend tax in a reply to the territory’s government, according to the statement. The tax rate avoids a double taxation in line with agreements between the administrations of China and Hong Kong, it said

ONLINE GAMING

Sony networks to be restored

Sony said yesterday it would fully restore all PlayStation Network and Qriocity online distribution services in Japan tomorrow, after shutting them down in April due to hacker attacks. In the wake of the cyber attack, Sony shut down those services on April 20 to conduct an investigation and boost the overall security of the network infrastructure, it said in a statement. Except for Japan, the Japanese electronics giant had already restored the services in all other countries and regions where they operated before the shutdown, including the Americas, Europe, Hong Kong and South Korea.

AUTOMOBILES

VW holds 56% of MAN

Volkswagen (VW), the biggest European automaker, said yesterday that it now holds 55.9 percent of the voting rights in heavy truck maker MAN, paving the way for a tie-up with Scania of Sweden. VW wants to merge the two companies along with its own heavy vehicle activities to create a rival for two other European heavyweights, Daimler Trucks and Volvo Trucks. VW had offered 95 euros for ordinary shares and 59.90 euros for preference shares in MAN, which also makes diesel engines and industrial turbines. It thus paid a little more than 3.4 billion euros (US$4.93 billion) for 35,857,607 of the former and 164,613 of the latter, according to a VW statement.

AFRICA

Northern unrest hurts growth

A top African economist says turmoil in the continent’s north has had a direct impact on growth and an indirect effect on politics across the continent. Mthuli Ncube, chief economist of the African Development Bank, was discussing the bank’s economic outlook for the continent yesterday. The bank says unrest in the north led to near stagnation, with GDP growth estimated at 0.7 percent this year, compared with 4.7 percent last year. Overall, Africa’s growth was estimated at 3.7 percent for this year, down from 4.9 percent last year.

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