Bank likely to cut interest
The Reserve Bank of Australia (RBA) will probably cut interest rates by 25 basis points when it meets this week as consumer spending slows and housing-loan growth stagnates, according to newspaper columnist Terry McCrann. A reduction by the central bank is “very likely, indeed almost certain,” McCrann wrote in his column published yesterday in Melbourne’s Herald Sun. The lending rate is 3.5 percent. Traders are pricing in an 85 percent chance RBA will end a three-month pause and cut rates by a quarter percentage point to 3.25 percent at tomorrow’s policy meeting, while a majority of economists surveyed by Bloomberg News predict a pause for another month.
GM recalls 40,000 cars
General Motors Co (GM) is recalling more than 40,000 cars sold in warm-weather US states because a plastic part might crack and cause a fuel leak. The company is recalling Chevrolet Cobalt and Pontiac G5 sedans from the 2007 through 2009 model years and Chevrolet Equinox and Pontiac Torrent SUVs and Saturn Ion sedans from the 2007 model year. The vehicles have plastic parts connected to the fuel pump which could crack. If the crack gets large enough, fuel could leak out of the vehicle and cause a fire.
38 deported from Ghana
Beijing says 38 of its citizens have been arrested and deported after being caught allegedly mining gold illegally in the west African country of Ghana. A statement seen yesterday on the Web site of the Chinese embassy in Ghana says 40 Chinese citizens were recently detained in Obuasi district. It says investigations by security authorities in Ghana found one person not guilty, while another was released on bail. It says the remaining 38 Chinese were deported because they had no residence or work permit or license to mine. It was unclear whether they had been prosecuted.
Google trims features
Google trimmed news “badges” and more as part of year-long house cleaning aimed at sweeping out unpopular, outdated or unneeded features at its online properties. Features being eliminated included AdSense for Feeds, which let Web site publishers earn revenue by placing ads in RSS feeds, and Classic Plus, which allowed users to upload images to use as backgrounds at Google.com. Google will consolidate online storage of data in Picasa and Drive, giving users 5 gigabytes of memory space for free overall for both services and options to pay for more capacity. On Oct. 15, the company is to stop displaying “Badges” awarded for story-reading achievements at its online news pages and no longer show recommended sections.
Investors keen on property
Properties in Southeast Asian cities including Bangkok, Jakarta and Kuala Lumpur are attractive for investors seeking to boost returns by holding riskier assets, Deutsche Bank AG’s RREEF unit said. Retail real estate, such as supermarkets, convenience stores and logistics facilities, which include warehouses that focus on e-commerce, offer opportunities. Office markets in Sydney and Melbourne also are attractive because of a lack of supply, it said. The asset manager is “cautiously optimistic” on the Singapore office market. It said it does not expect a fully fledged correction in rents because supply of new office space remains limited.