■ECONOMY
Recovery on track: IMF
The IMF welcomed on Saturday signs that a global economic rebound was on track, but said many challenges still stood in the way, in particular those related to government finances. “Signs of a strengthening economic recovery are encouraging, but many challenges remain that need to be tackled collaboratively,” a statement said following a meeting of the IMF’s financial committee. The IMF’s 186 members added that “we are strongly committed to ensuring sustainable public finances and addressing sovereign debt risks,” after the meeting was overshadowed by Greece’s financial crisis.
■JAPAN
Stimulus still necessary
Japanese Finance Minister Naoto Kan said the government should maintain measures to stimulate growth to ensure the recovery in the world’s second-largest economy, a prepared statement showed yesterday. “The Japanese economy seems to have had more of a chance to gradually overcome difficult situations, however, the situation remains tough as shown by the persistently high unemployment rate,” Kan said in the statement to the IMF’s steering committee in Washington. “Under these circumstances, for the time being, we need to maintain the economic stimulus measures to ensure recovery.”
■ELECTRONICS
Israel lifts ban on iPad
Israel yesterday reversed a ban on Apple’s new iPad after initially confiscating the devices at its airports because the wireless signal was 40 times stronger than the legal limit. “After verification, we found that the iPad operates on a constant signal to the standards required,” communications ministry spokesman Yechiel Shavi said, adding that confiscated devices would be returned to their owners. The touchscreen gadget is so far only on sale in the US, where federal regulations allow much higher Wi-Fi signal strength than the European standard followed in Israel. Earlier this month, Apple said that because of strong US demand for the device it would not go on sale internationally until the end of next month.
■AVIATION
JAL losses reach US$1.6bn
Debt-ridden Japan Airlines (JAL) is forecast to have posted a group operating loss of about ¥160 billion (US$1.6 billion) for the financial year that ended in last month, Japan’s Sankei Shimbun reported yesterday. JAL and two subsidiaries filed in January for bankruptcy protection with a combined US$25 billion in debt — one of the largest corporate failures in Japanese history. JAL’s results will be the worst since it had tied up with Japan Airlines System in 2002 as revenue dropped sharply due to a rapid slowdown in the Japanese economy, the newspaper reported, without citing any sources. The airline’s subsidiary, Japan Airlines International, appears to have secured a small profit last month, but JAL continues to face difficulties in its business this month as volcanic eruptions in Iceland forced flight cancellations, the newspaper said.
■INVESTMENT
S Korea exposure in Greece
South Korean financial companies held US$380 million in ship-finance loans linked to Greece at the end of last year, the nation’s financial watchdog said on Saturday. The debt accounts for 0.72 percent of all lending in overseas markets by domestic financial companies, the Financial Supervisory Service said in an e-mailed statement. Greece’s request for a US$60 billion bailout led by the EU will have a “limited’ impact on the soundness of local financial firms, the regulator said.
NO-LIMITS PARTNERSHIP: ‘The bottom line’ is that if the US were to have a conflict with China or Russia it would likely open up a second front with the other, a US senator said Beijing and Moscow could cooperate in a conflict over Taiwan, the top US intelligence chief told the US Senate this week. “We see China and Russia, for the first time, exercising together in relation to Taiwan and recognizing that this is a place where China definitely wants Russia to be working with them, and we see no reason why they wouldn’t,” US Director of National Intelligence Avril Haines told a US Senate Committee on Armed Services hearing on Thursday. US Senator Mike Rounds asked Haines about such a potential scenario. He also asked US Defense Intelligence Agency Director Lieutenant General Jeffrey Kruse
China’s intrusive and territorial claims in the Indo-Pacific region are “illegal, coercive, aggressive and deceptive,” new US Indo-Pacific Commander Admiral Samuel Paparo said on Friday, adding that he would continue working with allies and partners to keep the area free and open. Paparo made the remarks at a change-of-command ceremony at Joint Base Pearl Harbor-Hickam in Hawaii, where he took over the command from Admiral John Aquilino. “Our world faces a complex problem set in the troubling actions of the People’s Republic of China [PRC] and its rapid buildup of forces. We must be ready to answer the PRC’s increasingly intrusive and
INSPIRING: Taiwan has been a model in the Asia-Pacific region with its democratic transition, free and fair elections and open society, the vice president-elect said Taiwan can play a leadership role in the Asia-Pacific region, vice president-elect Hsiao Bi-khim (蕭美琴) told a forum in Taipei yesterday, highlighting the nation’s resilience in the face of geopolitical challenges. “Not only can Taiwan help, but Taiwan can lead ... not only can Taiwan play a leadership role, but Taiwan’s leadership is important to the world,” Hsiao told the annual forum hosted by the Center for Asia-Pacific Resilience and Innovation think tank. Hsiao thanked Taiwan’s international friends for their long-term support, citing the example of US President Joe Biden last month signing into law a bill to provide aid to Taiwan,
UNWAVERING: Paraguay remains steadfast in its support of Taiwan, but is facing growing pressure at home and abroad to switch recognition to Beijing, Pena said Paraguayan President Santiago Pena has pledged to continue enhancing cooperation with Taiwan, as he and Japanese Prime Minister Fumio Kishida expressed opposition to any unilateral change to the “status quo” in the Taiwan Strait using force, Japanese media reported on Saturday. Kishida yesterday completed a trip to France, Brazil and Paraguay, his first visit to South America since taking office in 2021. After the Japanese leader and Pena spoke for more than an hour on Friday, exchanging views on the situation in East Asia in the face of China’s increasing military pressure on Taiwan, they affirmed that “unilateral attempts to change the