■ Public Debt
China's debt hits record
China issued a record US$76 billion in domestic treasury bonds this year, according to new government data that highlight its reliance on debt to stimulate economic growth. Treasury bond sales were up nearly 6 percent from the 2002 total of US$72 billion, according to Tuesday's report by the state-backed National Debt Association of China. However, 2003 sales fell short of the government's target of US$77 billion. China's bond sales have set new record highs every year since 1994, financing massive government investment in roads, power plants and other infrastructure and keeping millions of people employed. The money has helped to buoy growth of about 8 percent a year and create new jobs as tens of millions of people are thrown out of work amid cutbacks in state industry. Bond sales in 2003 outpaced even China's massive inflows of foreign investment, which were expected to top US$50 billion for a second straight year.
■ Gambling
Accor ponders team-up
French leisure and tourism group Accor SA is examining a possible tie-up between its casinos arm and Groupe Lucien Barriere, France's No. 2 gaming company, a source close to the discussions said Tuesday. The source spoke on condition of anonymity after newspaper Le Monde reported that Barriere and Accor Casinos were soon to merge to create France's biggest gaming operator. The paper reported that the merged company would control 35 casinos accounting for about one-third of the lion (US$3.18 billion) revenue generated annually by France's 180 licensed gambling houses. The source said the two sides were working out the terms of a deal to "create synergies and develop capacity" for the combined entity. Groupe Partouche is currently France's biggest casino operator, with a 27 percent market share.
■ Hotels
Le Meridien purchased
Lehman Brothers Holdings Inc and Starwood Hotels & Resorts Worldwide Inc said Tuesday they have taken control of British hotel group Le Meridien for less than US$1.3 billion. Lehman is taking over the 126-hotel chain's outstanding senior debt of US$1.3 billion at a discount. Starwood is funding US$200 million through a high-yield junior participation in the debt. As part of the funding, Lehman and Starwood have agreed to negotiate a recapitalization of Le Meridien in the coming months. Lehman, the New York-based financial services company, already owned about US$354 million of Le Meridien's debt. Starwood, which is based in White Plains, New York, owns or manages hundreds of hotels worldwide and its brand names include Sheraton, Westin, The Luxury Collection, St. Regis and W Hotels.
■ Macroeconomics
Goh gives holiday speech
Singapore's economy expanded 3.7 percent from a year earlier in the final quarter of 2003, lifting full year growth to 0.8 percent, Prime Minister Goh Chok Tong said in a New Year message to the nation. GDP expanded for the second straight quarter, following 1.7 percent growth in the September quarter. The median forecast of seven economists in a Bloomberg News survey was for 4.5 percent growth between October and December. Singapore's growth slowed in 2003 from a 2.2 percent expansion in 2002 because the war in Iraq slowed trade, and the outbreak of SARS in March emptied hotels and shopping malls.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source