■ JAPAN
Economy is 'deteriorating'
Tokyo said the economy is “deteriorating,”acknowledging for the first time that the country’s longest postwar expansion has probably ended. “There is a high possibility the economy has entered a recession,” Shigeru Sugihara, head of business statistics at the Cabinet Office said in yesterday. Tokyo bases its assessment of the economy on the coincident index, its broadest indicator of economic health. The Cabinet Office declares the economy has worsened if the index has fallen for one month and the three-month moving-average has declined for three or more months. The leading index for the next three to six months, fell to 101.7 from 103.3.
■ AUSTRALIA
Tax laws under review
Canberra has launched the most comprehensive review of its tax laws in more than 50 years as it bids to make them simpler and more globally competitive, Treasurer Wayne Swan said yesterday. The government was serious about the “modernization of our tax and transfer payment system,” Swan said as he released a tax discussion paper. The paper is the first step in a review to simplify Australia’s complicated taxation system, which includes at least 99 federal taxes, 25 state government taxes and one local government tax.
■ METALS
Lonmin rebuffs Xstrata bid
British platinum producer Lonmin rejected a takeover bid yesterday from Swiss mining giant Xstrata, arguing that it was “opportunistic and unwelcome” and had undervalued the group. Earlier yesterday, Xstrata launched a hostile bid for Lonmin, valuing the world’s third largest platinum producer at more than 6 billion euros (US$9.3 billion). “The board of Lonmin notes the unsolicited, pre-conditional offer announced this morning by Xstrata for the entire issued share capital of Lonmin at 3,300 pence [US$64.50] per share in cash,” Lonmin said in a brief statement.
■ UNITED STATES
Fed holds rate at 2%
The Federal Reserve, in a widely predicted move, kept its main interest rate unchanged at 2.0 percent on Tuesday, citing concerns about sputtering economic growth and inflationary pressures. The Dow Jones Industrial Average rocketed 331 points to close at 11,615.77 as investors cheered the announcement, although tumbling oil prices also boosted Wall Street’s spirits. The Fed said that relatively low rates should eventually fire up growth going forward, but warned that multiple hurdles stand in the path of a potential economic revival. “Tight credit conditions, the ongoing housing contraction and elevated energy prices are likely to weigh on economic growth over the next few quarters,” the central bank said.
■ TECHNOLOGY
Yahoo recounts votes
Yahoo on Tuesday updated the results of recent voting by shareholders, revealing that support for the Internet firm’s board is far weaker than it appeared. Some 200 million votes were mistakenly cast in favor of the re-election of Yahoo chief executive Jerry Yang (楊致遠) and board chairman Roy Bostock by an outside company used by a major stockholder. A revised tally released on Tuesday shows Bostock got the least support, with 60.4 percent of votes in favor of his re-election instead of the 79.5 percent originally reported after the Aug. 1 shareholders meeting. Yang did not fare much better, winning 66.3 percent of the votes cast as opposed to the 85.6 percent figure in the miscount.
The Ministry of the Interior (MOI) is to tighten rules for candidates running for public office, requiring them to declare that they do not hold a Chinese household registration or passport, and that they possess no other foreign citizenship. The requirement was set out in a draft amendment to the Enforcement Rules of the Public Officials Election and Recall Act (公職人員選舉罷免法 ) released by the ministry on Thursday. Under the proposal, candidates would need to make the declaration when submitting their registration forms, which would be published in the official election bulletin. The move follows the removal of several elected officials who were
The Republic of China (ROC) is celebrating its 114th Double Ten National Day today, featuring military parades and a variety of performances and speeches in front of the Presidential Office in Taipei. The Taiwan Taiko Association opened the celebrations with a 100-drummer performance, including young percussionists. As per tradition, an air force Mirage 2000 fighter jet flew over the Presidential Office as a part of the performance. The Honor Guards of the ROC and its marching band also heralded in a military parade. Students from Taichung's Shin Min High School then followed with a colorful performance using floral imagery to represent Taiwan's alternate name
FOUR DESIGNATED AREAS: Notices were issued for live-fire exercises in waters south and northwest of Penghu, northeast of Keelung and west of Kaohsiung, they said The military is planning three major annual exercises across the army, navy and air force this month, with the navy’s “Hai Chiang” (海強, “Sea Strong”) drills running from today through Thursday, the Ministry of National Defense said yesterday. The Hai Chiang exercise, which is to take place in waters surrounding Taiwan, would feature P-3C Orion maritime patrol aircraft and S-70C anti-submarine helicopters, the ministry said, adding that the drills aim to bolster the nation’s offshore defensive capabilities. China has intensified military and psychological pressure against Taiwan, repeatedly sending warplanes and vessels into areas near the nation’s air defense identification zone and across
A Chinese takeover of Taiwan would severely threaten the national security of the US, Japan, the Philippines and other nations, while global economic losses could reach US$10 trillion, National Security Council Deputy Secretary-General Lin Fei-fan (林飛帆) wrote in an article published yesterday in Foreign Affairs. “The future of Taiwan is not merely a regional concern; it is a test of whether the international order can withstand the pressure of authoritarian expansionism,” Lin wrote in the article titled “Taiwan’s Plan for Peace Through Strength — How Investments in Resilience Can Deter Beijing.” Chinese President Xi Jinping’s (習近平) intent to take Taiwan by force
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