EIU Country Analysis

FROM THE ECONOMIST INTELLIGENCE UNIT The global economic downturn has compounded the Philippines#; fiscal squeeze, reducing revenue and forcing the government to lower its fiscal target for ####. Many of the country#;s fiscal problems--weak tax collection, poor enforcement

FROM THE ECONOMIST INTELLIGENCE UNIT As governments and central banks spend heavily and print money to combat the most brutal global recession since the ####s, financial markets are fretting about the inflationary consequences of such measures. Yet despite the aggressive

FROM THE ECONOMIST INTELLIGENCE UNIT Russia is holding military exercises in the North Caucasus, one month after NATO-led exercises in Georgia. Russian officials have warned of late that Georgia is preparing for a new conflict with its breakaway regions

FROM THE ECONOMIST INTELLIGENCE UNIT Having imposed its will over the domestic opposition through a brutal show of force, the Iranian government is taking a similarly uncompromising approach in its foreign relations, putting locally hired staff of the British embassy

FROM THE ECONOMIST INTELLIGENCE UNIT SUMMARY The mid-term elections of June ##th were a severe defeat for the government, particularly for president Cristina Fernandez de Kirchner and her husband Nestor Kirchner, the former president and the power behind the

FROM THE ECONOMIST INTELLIGENCE UNIT A battle between supporters of rival technologies is delaying the award of spectrum, and hindering broadband development, in some of the world#;s biggest emerging markets. With the exception of China, each of the so

FROM DIALOG NEWSEDGE [AllAfrica.com] Kenya#;s mobile providers are moving to strengthen their Internet offerings in response to growing demand for services over the last quarter. Zain Kenya has announced a ## per cent cost reduction for the unlimited

FROM DIALOG NEWSEDGE [Nikkei English News (Japan)] While overall mobile phone sales are tumbling, the smartphone market is taking off, with sales of these PCs disguised as mobile phones expanding nearly ##% on the year in ####. In a ranking

FROM DIALOG NEWSEDGE [PC Magazine Online] Japan pledged to shore up Elpida Memory Inc with public money, bringing the total aid expected to come to the loss-making chip maker to $#.# billion as it struggles to compete with

FROM DIALOG NEWSEDGE [BusinessWeek Online] When the founders of file-sharing Web site Pirate Bay were given a year#;s prison sentence in April for allowing users to illegally swap copyrighted content, many thought the swashbuckling Swedish-based Internet company

FROM DIALOG NEWSEDGE [Economic Times (India)] As companies in the $##-billion technology services sector gear up to announce results for the first quarter of ####-##, the straws in the wind suggest that they may have weathered the worst

FROM DIALOG NEWSEDGE [Daily Telegraph (UK)] CHINA has not given up on plans to force computer users to install the Green Dam internet monitoring software, officials said yesterday "It#;s just a matter of time," an official from China#;s

FROM DIALOG NEWSEDGE [New York Times] The Disney NetPal from Asus ($###, coming in early August) is a beefed-up Eee PC Netbook with thicker hinges, a spill-proof keyboard and onboard parental controls, and no shortage of Disney-themed

FROM DIALOG NEWSEDGE [This Day (Nigeria)] Chief Executive Officer, Etisalat Nigeria, Mr Steven Evans, said the company will invest two billion dollars to build network infrastructure in Nigeria over the next three years. Speaking at the flag off of its

FROM DIALOG NEWSEDGE [Daily Telegraph (UK)] O# HAS secured exclusive rights to the Palm Pre, the latest smartphone, which is regarded as the most serious challenger to Apple#;s iPhone. The deal, to be announced on Tuesday, is a huge

FROM DIALOG NEWSEDGE [BNamericas (English)] French PC manufacturer Packard Bell, a unit of Acer, plans to bring notebooks with an embedded WiMax chip to Chile by year-end, the president of Packard Bell Chile, Francisco de Castro, told BNamericas. Speaking

FROM DIALOG NEWSEDGE [New Zealand Herald, The] Soon-to-launch mobile phone company #degrees will struggle to make money unless the call fees charged by its competitors are forced down by the Government, the Commerce Commission says. The newcomer#;s

FROM DIALOG NEWSEDGE [Marketwatch] The Justice Department confirmed Thursday that it#;s investigating a controversial digital books settlement reached between Google Inc. and publishers. While the Justice Department#;s interest in the landmark settlement has been reported previously, the regulator

FROM DIALOG NEWSEDGE [Asia Pulse Businesswire] India#;s Foreign Investment Promotion Board (FIPB) on Wednesday cleared the proposal of Vodafone Essar, India#;s second-largest GSM-based mobile operator, to hive off its towers and related infrastructure business into a

FROM THE ECONOMIST INTELLIGENCE UNIT Nigeria#;s mobile phone market is expanding, but the country needs a new investor to achieve real growth. With the largest mobile-phone market in Africa, Nigeria is continuing to attract new operators hoping to

FROM THE ECONOMIST INTELLIGENCE UNIT Russia is pushing for cheaper HIV drugs, but it also needs to increase its budget to tackle the disease. Russia and UK pharma company GlaxoSmithKline (GSK) are waging a war of attrition over the price

FROM DIALOG NEWSEDGE [Datamonitor Pharmaceutical & HealthWire] GlaxoSmithKline has acquired the branded generics business of Bristol Myers Squibb in Lebanon, Jordan, Syria, Libya and Yemen for a cash consideration of $##.# million. The business comprises a portfolio of ##

FROM DIALOG NEWSEDGE [Daily Telegraph (UK)] US REGULATORS have ordered GlaxoSmithKline, the world#;s third-largest pharmaceutical group, to add "black box" warnings on an anti-smoking drug after some patients reported having suicidal thoughts. The Food and Drug Administration

FROM DIALOG NEWSEDGE [Nikkei English News (Japan)] Eisai Co. (####.TO) said Friday the U.S. Food and Drug Administration didn#;t approve pediatric exclusivity status for its best-selling drug, Aricept, eliminating the possibility of a six-month patent

FROM DIALOG NEWSEDGE [New York Times] The Food and Drug Administration approved a new drug Thursday to treat the heart rhythm disorder known as atrial fibrillation, which affects an estimated #.# million people in this country, most of them

FROM DIALOG NEWSEDGE [AFP World News (English)] US health care giant Johnson & Johnson is to take up an ##.# percent stake in Irish drugmaker Elan and acquire rights to Elan#;s Alzheimer#;s disease trial drugs, the companies said

FROM DIALOG NEWSEDGE [New York Times] Johnson & Johnson, the health care giant, will pay $# billion to the Irish biotechnology company Elan to gain access to Alzheimer#;s disease treatments, the companies said Thursday. Johnson & Johnson will acquire substantially all

FROM DIALOG NEWSEDGE [MarketWatch Bullets] Novo Nordisk nvo said the European Commission has granted marketing authorisation for Victoza, or liraglutide, for the treatment of type # diabetes in adults. Novo Nordisk will launch Victoza in the UK, Germany and Denmark

FROM THE ECONOMIST REGULATORS around the world are contemplating higher walls between commercial banks and their investment-banking divisions. In Japan the opposite is happening. Last month the country#;s Financial Services Agency (FSA) dramatically eased the regulations on how

FROM THE ECONOMIST BANK bail-outs may be starting to wind down in some places, but in parts of Europe they are just getting started. On June ##th the Spanish government announced details of a rescue fund of up to

FROM THE ECONOMIST INTELLIGENCE UNIT Financing will be tighter than in ####-##, owing to the economic crisis Since October #### lending growth has slowed sharply and interest rates on business, consumer and housing-related loans have increased. We expect

FROM THE ECONOMIST INTELLIGENCE UNIT Current assessment The relatively stable economic outlook and the recent improvement in local asset markets are the main factors behind the rating for banking sector risk rising from B to BB. India#;s banking sector

FROM THE ECONOMIST INTELLIGENCE UNIT Sweden#;s central bank, the Riksbank, unexpectedly reduced its benchmark repo rate by ## basis points to #.##% on July #nd and cut its #### GDP forecast to -#.#%. The bank said it

FROM DIALOG NEWSEDGE [Nikkei English News (Japan)] Nippon Life Insurance Co. announced Thursday at its general meeting of policyholders that it will raise ### billion yen in a public debt offering by the end of August. It plans to float

FROM DIALOG NEWSEDGE [Nikkei English News (Japan)] The Nomura Holdings Inc. (####) group is reaping the benefits of its acquisition of the failed Lehman Brothers Holdings Inc.#;s European equities operations, surging to No. # in handling stock trades on

FROM DIALOG NEWSEDGE [New York Times] They have been reviled as the bad hats of Wall Street, nefarious traders who cashed in on the market collapse and, some insist, helped precipitate it. Now short-sellers, the market skeptics who correctly

FROM DIALOG NEWSEDGE [Independent (UK)] Alistair Darling has warned bankers to stop backsliding into their bad old ways as he promised a much tougher regulatory system to prevent a repeat of last autumn#;s financial crisis. Amid signs that the

FROM DIALOG NEWSEDGE [BestWire Services] Dai-ichi Mutual Life Insurance Co. [#####], Japan#;s second-largest life insurer, said it will be publicly listed on Japan#;s stock exchange in April next year. The company#;s demutualization plan was approved

FROM DIALOG NEWSEDGE [AllAfrica.com] Standard Chartered has announced its full acquisition of the remaining shareholding in First Africa Group Holdings Limited ("First Africa"), a Leading pan-African Mergers & Acquisitions ("M&A") advisory firm. Regional CEO of Africa , Mike Hart

FROM DIALOG NEWSEDGE [International Herald Tribune] Last year, after the financial crisis, Morgan Stanley made a decision that its biggest rivals avoided: Burned by the crisis, it would take far fewer risks in its trading. That decision is costing it

FROM DIALOG NEWSEDGE [Nikkei English News (Japan)] Major life insurance mutual companies appear wary of converting to shareholder-owned firms. An exception is Dai-ichi Mutual Life Insurance Co., which plans to make the changeover to a joint-stock company

FROM DIALOG NEWSEDGE [Associated Press] President Hugo Chavez is taking a big step toward increasing state control over the economy by nationalizing Venezuela#;s third-largest bank, bringing more than one-fifth of bank deposits into the socialist government#;s

FROM DIALOG NEWSEDGE [Associated Press] Bank of America Corp. says its board has authorized roughly $### million in dividend payments to the U.S. government under the troubled asset relief program. The company also said on Thursday that its board

FROM DIALOG NEWSEDGE [Datamonitor BankingWire] Thailand-based Bangkok Bank has agreed to sell its ##.#% stake in ACL Bank to Industrial & Commercial Bank of China, according to Bloomberg. Bangkok Bank#;s original plan to complete the sale of the

FROM DIALOG NEWSEDGE [Associated Press] German prosecutors said Wednesday that they have filed charges against the former chief executive of troubled lender IKB, accusing him of misleading markets over the extent of its exposure to the financial crisis. Duesseldorf prosecutors

FROM DIALOG NEWSEDGE [New York Times] Federal bank regulators toughened policies on Thursday that have allowed private equity firms to buy up failing banks, saying they were worried if such investors would have enough capital and the willingness to run

FROM DIALOG NEWSEDGE [Gulf Daily News (Bahrain)] Islamic banks in the Gulf Arab region need to adopt a new business model and take on more customers to weather the economic downturn, Ernst & Young#;s head of Islamic finance said yesterday

FROM DIALOG NEWSEDGE [Building (UK)] Bidders circle GBP##m-turnover contractor as bank continues disposal of construction investments HBOS will step up the disposal of its construction assets with the sale of social housing contractor Environmental Property Services, Building understands The

FROM DIALOG NEWSEDGE [AllAfrica.com] EXXARO , one of the biggest suppliers of coal to Eskom, has signed a joint venture agreement with Sasol Mining that could lead to the development of a mine double the size of Exxaro#;s Grootgeluk

FROM DIALOG NEWSEDGE [BBC Monitoring International Reports] Yukiya Amano, Japan#;s ambassador to the Permanent Mission to the International Organizations in Vienna, was elected as next director general of the International Atomic Energy Agency on Thursday. Amano, ##, won against

FROM DIALOG NEWSEDGE [BBC Monitoring International Reports] French Ambassador to Vietnam Herve Bolot has confirmed his Government will lend its assistance to the Southeast Asian nation in conducting research as well as sharing experiences in nuclear power. Bolot told reporters

FROM DIALOG NEWSEDGE [Dpa English] Spain was Thursday expected to allow the country#;s oldest nuclear power plant to operate until ####, in a compromise solution that angered both environmentalists and the pro-nuclear lobby. The Garona plant near Burgos

FROM DIALOG NEWSEDGE [Xinhua News Agency (CEIS) (China)] China#;s latest fuel price hike from Tuesday would certainly pinch the pockets of consumers, but may not leave a lasting impact on the nation#;s economic recovery, analysts said. Gasoline, diesel

FROM DIALOG NEWSEDGE [Business Line (India)] The Economic Survey has made a strong pitch for the entry of private players in the coal mining sector to help reverse the substitution of domestic coal by imported oil and coal. It has

FROM DIALOG NEWSEDGE [Bristol Evening Post (England)] Ground investigation work is about to start on the site of a proposed new nuclear power station near Thornbury. The work will be carried out by contractors employed by power firm Eon, which

FROM DIALOG NEWSEDGE [International Herald Tribune] As the United States takes the first steps toward mandating that power companies generate more electricity from renewable sources, China is ahead with a similar requirement and investing billions to remake itself into a

FROM DIALOG NEWSEDGE [Taiwan Economic News] Taiwan-based solar-cell maker Neo Solar Power Corp. (NSP) reportedly plans to soon expand capacity by ##% to meet flooding orders placed by Sharp and Kyocera of Japan, according to the Chinese-language

FROM DIALOG NEWSEDGE [Jakarta Post (Indonesia)] In a bid to accelerate the development of liquefied natural gas terminals, state energy companies PT Pertamina and PT Perusahaan Gas Negara (PGN) - which earlier planned to jointly build two floating LNG terminals - have

FROM DIALOG NEWSEDGE [Associated Press] The Iraqi prime minister said Thursday that his government was not satisfied with the meager results of the first international oil bidding round but insisted it would not stop future plans to develop Iraq#;s

FROM DIALOG NEWSEDGE [AFP World News (English)] The international consortium developing the giant Kashagan oil field in Kazakhstan will cut spending on the project due to the global economic crisis, the Kazakh state energy company said Thursday. But the decision

FROM DIALOG NEWSEDGE [Business Line (India)] Is the increase in petrol and diesel prices announced on Wednesday a precursor to a full deregulation of the oil industry? It does appear so if the move is seen in conjunction with the

FROM DIALOG NEWSEDGE [Daily Telegraph (UK)] EUROPEAN countries were yesterday urged to build up gas reserves for the winter as fears grew of another crisis involving Russia and Ukraine. The European Commission said a repeat of January#;s energy shortage

FROM DIALOG NEWSEDGE [Marketwatch] Unauthorized trading in oil futures by an employee resulted in a nearly $## million loss for brokerage PVM Oil Futures and is being blamed for a dramatic spike in futures prices earlier this week, according to

FROM DIALOG NEWSEDGE [Canadian Press DataFile] NEW YORK - Exelon Corp. said Thursday it raised its hostile takeover bid for rival NRG Energy Inc. to about US$# billion in stock, citing newly identified cost savings and NRG#;s acquisition of

FROM DIALOG NEWSEDGE [Oil Daily] Senate Energy Committee leaders put on a rare show of bipartisanship Wednesday as they passed the American Clean Energy Leadership Act of ####, touting it as a break from past tensions between environmental and energy

FROM DIALOG NEWSEDGE [Marketwatch] British retailer Marks & Spencer Group Plc on Wednesday reported a #.#% increase in first-quarter sales as promotions boosted its food sales and said consumer confidence seems to be stabilizing. In the U.K. where

FROM DIALOG NEWSEDGE [ABC Premium News (Australia)] Australia#;s dairy farmers have endured years of drought, and now the global financial crisis is giving them another reason to fear for their future. The price they will get for their milk

FROM DIALOG NEWSEDGE [Asia Pulse Businesswire] Japanese food company Calbee Co. will use its capital and operating tie-up with global No. # snack food firm PepsiCo Inc. to pare back the influence of its founding family. As part of

FROM DIALOG NEWSEDGE [M&A Navigator] Anglo-Dutch consumer goods maker Unilever (LON:ULVR) (AMS:UNA) said Thursday it has closed the acquisition of some assets of Russian ketchup producer Baltimor Holding for an undisclosed sum. Unilever has taken

FROM DIALOG NEWSEDGE [Jakarta Post (Indonesia)] The retail sector is doing better than most, but weakened purchasing power could dampen demand, so #### full-year growth in sales could fall below ## percent, despite double-digit growth since ####, says

FROM DIALOG NEWSEDGE [Dpa English] The price of ## basic food items in Poland rose on average by #.# per cent in the last quarter despite recent regular falls in food prices, according to a survey Thursday for the

FROM DIALOG NEWSEDGE [Asia Pulse Businesswire] A majority of South Korean retailers are optimistic about business conditions in the third quarter thanks to improved consumer sentiment and hopes of a rise in their sales, a poll showed Thursday. The Korea

FROM DIALOG NEWSEDGE [AFP World News (English)] Retailers in the ## nations using the euro saw their sales fall in May, renewing a slump that was broken in April by a short-lived improvement, according to official EU data on

FROM DIALOG NEWSEDGE [Thai Press Reports (Thailand)] Vietnam#;s retail sales and services revenues are estimated to have jumped ## per cent on-year in the first six months to VND###.# trillion (approx US$##.### billion). Vietnam#;s

FROM DIALOG NEWSEDGE [Associated Press] In a big break for online shoppers, Web retailers generally don#;t have to charge sales taxes in states where they lack a store or some other physical presence. Increasingly, states aching under the weight

FROM DIALOG NEWSEDGE [Associated Press] Tomato plants have been removed from stores in half a dozen states as a destructive and infectious plant disease makes its earliest and most widespread appearance ever in the eastern United States. Late blight - the

FROM DIALOG NEWSEDGE [Automotive News] U.S. sales of medium- and heavy-duty trucks fell ##.# percent in May from a year earlier to ##,### vehicles. The latest drop pulled sales for the first five months of the

FROM DIALOG NEWSEDGE [Bangkok Post (Thailand)] Thailand#;s struggling automotive industry is expected to see a revival by the first or second quarter next year, says Vivek Vaidya, director of the Asia-Pacific automotive and transport practice with the industry

FROM DIALOG NEWSEDGE [China Post (Taiwan)] A total of ##,### new cars were sold in the domestic market in June, showing an annual growth of ##.# percent and shooting up ##.# percent from May, according to statistics

FROM DIALOG NEWSEDGE [Daily Telegraph (UK)] THE European car industry will have to wait at least five years before sales return to pre-recession levels and faces recording heavy losses during that period, a gloomy new report has claimed. With

FROM DIALOG NEWSEDGE [Asia Pulse Businesswire] China#;s latest fuel price hike from Tuesday would certainly pinch the pockets of consumers, but may not leave a lasting impact on the nation#;s economic recovery, analysts said. Gasoline, diesel and jet

FROM DIALOG NEWSEDGE [Asia Pulse Businesswire] Australia#;s car market is expected to show signs of recovery when official sales figures for June are released on Friday. While sales were down almost ## per cent to the end of May

FROM DIALOG NEWSEDGE [Asia Pulse Businesswire] Chinese automakers have launched ## new models of cars during the first half of ####, marking new record for China#;s auto industry. The unprecedented launching has sharpened automakers#; competitive edges and bolstered auto

FROM DIALOG NEWSEDGE [Asia Pulse Businesswire] Japanese automaker Nissan (TSE:####) said on July # it saw "tremendous opportunities" in Vietnam and would begin local production next year, despite the global economic crisis. Nissan Vietnam Co Ltd would launch its

FROM DIALOG NEWSEDGE [Associated Press] Ford Motor Co. of Canada Ltd. has claimed the top spot in Canadian vehicle sales in June for the first time in ## years, the company reported Thursday. Ford Canada said it sold ##,###

FROM DIALOG NEWSEDGE [PR Newswire US] A record ##.## million unique monthly visitors to AutoTrader.com in June pushed Ford vehicles to claim four of the top # slots on the site#;s list of top ## most-viewed

FROM DIALOG NEWSEDGE [Nikkei English News (Japan)] -How major countries in the Association of Southeast Asian Nations stack up against each other in terms of car sales is in a state of flux, reflecting changes in political conditions and domestic

Policy towards private enterprise and competition ####-##: The government is likely to move forward with modest reforms that increase competition, although the pace of change will be slow. ####-##: Pressure from domestic and foreign investors forces further reform

Policy towards private enterprise and competition ####-##: The privatisation of the generating assets of the National Power Corporation (Napocor, the state-owned power utility) leads to liberalisation of the electricity market. More of the government#;s corporate assets are

Policy towards private enterprise and competition ####-##: Business-friendly rules are the norm, but distortions persist, owing to powerful lobby groups. ####-##: Strengthening of business rules to comply with the terms of free-trade agreements (FTAs) with the

Policy towards private enterprise and competition ####-##: The government gradually reverses the decades-old policy of discrimination in favour of bumiputera (ethnic Malays and other indigenous peoples). ####-##: Scope for the government to protect domestic industries and bumiputera

FROM THE ECONOMIST INTELLIGENCE UNIT In line with the global stockmarket rally, equity markets in Asia have enjoyed a bumper first half to ####. Improving, if still weak, economic data have buoyed sentiment, helping to reverse the dramatic declines in

FROM THE ECONOMIST INTELLIGENCE UNIT The interior minister, Sheikh Jabr al-Khaled al-Sabah, has survived both a "grilling" by parliament and a subsequent no-confidence motion, in a positive sign for the durability of the new Kuwaiti government. His

FROM THE ECONOMIST INTELLIGENCE UNIT Ivo Sanader has resigned as Croatia#;s prime minister, nominating his deputy, Jadranka Kosor, to succeed him. The move was unexpected: Mr Sanader#;s party fared reasonably well during the recent local elections and the

FROM THE ECONOMIST INTELLIGENCE UNIT On July #st Fiji#;s unelected prime minister, Voreqe (Frank) Bainimarama, unveiled plans to introduce a new constitution by ####. The new charter would replace the one that Mr Bainimarama abolished in April, paving the

FROM THE ECONOMIST INTELLIGENCE UNIT The large UK banks now under pseudo state control could be forced to sell off a sizeable proportion of their assets, the European competition commissioner has warned. This would be a welcome step. Neelie Kroes

FROM THE ECONOMIST INTELLIGENCE UNIT Sweden#;s central bank, the Riksbank, unexpectedly reduced its benchmark repo rate by ## basis points to #.##% on July #nd and cut its #### GDP forecast to -#.#%. The bank said it

FROM THE ECONOMIST INTELLIGENCE UNIT South Korea#;s industrial production rose by #.#% in May from the previous month, the fifth consecutive month of gain. Even so, it still fell by #% in year-on-year terms, close to

FROM ECONOMIST.COM The ECB has run a looser monetary policy than some might think The global economy has stopped sinking and central bankers are pausing for breath. On Thursday July #nd, the European Central Bank (ECB) kept its main

FROM EUROPEAN VOICE Austerity measures taken by Riga persuade European Commission to release second trance of EUR#.# billion loan package. By Jim Brunsden The European Commission today approved the release of the second tranche of the EU#;s emergency