Hong Kong (CNN) – It’s the stuff of urban myth that if a billion Chinese all jumped off a chair at the same time, the earth would shift off its axis.
Now the World Bank is considering just such a question in the context of China’s breakneck growth: Can a billion Chinese become middle class without disrupting the world, fouling the environment and tearing apart the fabric of their own society?
The World Bank report “China 2030: Building a Modern, Harmonious, and Creative High-Income Society,” released on Monday, says China has the potential to become a modern and creative high-income society – but it won’t be easy.
Hong Kong (CNN) - Proview Electronics - a little known Asia-based company that claims it has rights to the “iPad” trademark in China - has taken its legal battle against Apple to the technology giant’s home turf.
In a lawsuit filed last week in the U.S. Superior Court of California in Santa Clara County, the Taiwan affiliate of Proview International Holdings accuses Apple of deception when it purchased the iPad trademark in 2009, The Wall Street Journal reports.
The suit alleges that one of Apple’s law firms set up a company - IP Application Development Ltd (or IPAD) - to buy the trademark from Proview for $55,000, according to the report.
Apple has maintained the purchase gives it worldwide rights to the trademark; Proview Electronics claims that Apple acted deceptively by hiding its involvement.
Hong Kong, China (CNN) – With a Greek debt deal successfully brokered on Tuesday, the world’s economic skies seem a bit less likely to fall. That new $173 billion bailout for Greece on the brink of bankruptcy is now staunching a bit of the hemorrhage of confidence in the continent.
As for the “stuff” that actually flies through those economic skies? The volume of that over our heads, homes and offices is, in fact, falling.
And Hong Kong is one of the best places to take a measure of it all.
This Asian hub of commerce boasts the busiest air cargo airport in the world. And air cargo volumes are an excellent thermometer to gauge the health of global trade.
According to Hong Kong airport data, 3.9 million tons of cargo passed through this Chinese territory in 2011. But for all that volume, the huge number actually revealed a drop of nearly 5% year on year.
Just as Hong Kong is the world’s number one cargo hub, Cathay Pacific Airways is the world’s number one air cargo carrier. In 2011, Hong’s Kong’s flagship airline transported more than 1.6 million tons of cargo around the world. But that represented a drop as well – of nearly 9% year on year.
The reason for this season of slumps is found not in Asia but halfway around the world: in the United States and Europe.
The U.S. is still clawing back from its Great Recession.
Europe, which buys 30% of all of China’s exports, is still focused on its highly-indebted nations. And for the next several months and years, Spain, Portugal, Ireland, Italy– and yes Greece- will still be the word.
It’s a decline in demand from all these places – for cheaper Asian-assembled electronics and your Wal-Mart apparel – that led to a slump in air cargo traffic last year.
And the 2012 skies don’t look much brighter.
The International Air Transport Association, more famously known as IATA, forecasts absolutely no growth for global air cargo traffic this year.
Cathay Pacific’s CEO John Slosar predicts his company’s air cargo business might not take off again until the second half. That’s not great news since the company relies on cargo for 30% of its annual profit.
And some oil analysts foretell of $150 per barrel ifIrantensions boil over into conflict.
All this may be conspiring for a collision course with catastrophe. But reroutes do exist.
To offset losses, airlines have successfully booked more people into their seats. Cathay reported nearly 12% more passengers this past January, year on year.
That’s on top of rising ticket prices as any flier – frequent or not – can attest.
And just this past December, Cathay announced it would delay the purchase of two new Boeing 747-8F freighters until 2013.
The bottom line for the air cargo industry? Despite short-term fixes, its long-term recovery will depend on the pace of improvement in the U.S. and Europe.
Until then, better profits from global air cargo will hang on a wing and a prayer.
(Hong Kong) – Could it be a coincidence that diplomats chose to schedule an annual meeting of Chinese and EU leaders on Valentine’s Day?
On Tuesday, two of the EU’s biggest hitters, Herman Van Rompuy, president of the European Council, and José Manuel Barroso, president of the European Commission, will meet with Premier Wen Jiabao in Beijing, before separate meetings with President Hu Jintao and Vice-Premier Li Keqiang. FULL POST
New York (CNN) - Harvard economists might not be able to fix the financial crisis but one might be about to fix the U.S.'s National Basketball Association.
Or at least, that’s what they’re saying about Jeremy Lin, New York Knicks point guard and freshly appointed savior of basketball.
Having struggled to find a professional team after finishing his economics degree at Harvard, Lin found himself sleeping on couches, bouncing around the Developmental Leagues hoping for a break.
The hapless Knicks finally gave him one a few weeks ago. Five games and five wins later and we have another sporting sensation on our hands.
Hong Kong (CNN) – When Internet giant Yahoo bought a 40% piece of Chinese business-to-business online company Alibaba in 2005, the $1 billion deal was hailed as a unique coup for the U.S. web site – and a quick way to get a stronger toehold among China’s then-100 million online users.
What a difference seven years makes.
In recent months Yahoo has seen its CEO Carol Bartz and founder Jerry Yang shown the door, followed this week of four board members – including the chairman – departing, as shareholders lose patience with the firm’s performance.
Hong Kong (CNN) – A few years back, influential New York Times columnist Nicholas Kristof shocked readers by opening a column this way: “Africa desperately needs Western help in the form of schools, clinics and sweatshops.”
For Kristof, who regularly advocates better conditions for people in the developing world, this advice seems to belie his progressive views. But he’s part of a chorus of liberal economic thinkers who advocate that sweatshops – a broad term for factories or workshops characterized low wages, long hours, sometimes underage workers and unsafe conditions – are an unsavory but necessary first step to help bootstrap the world’s poorer economies.
Hong Kong (CNN) – No research report in Hong Kong draws as many eyes and as much water cooler chatter as CLSA's Feng Shui Index, a pun-filled financial prophecy based on Chinese astrology.
Prepared by Philip Chow, CLSA's full-time transport analyst and part-time Feng Shui master, the report says to keep watch for a watershed moment in this Year of the Dragon. FULL POST
London (CNN) – The World Bank is not an organization noted for hyperbole and exaggeration. Certainly the sober-suited Washington bankers don't usually go around the world forecasting calamity, unless it is to drum up more support for the disadvantaged and poor.
And that's why their comments surrounding the Global Economic Prospects for 2012 were so unusual. The bank has just downgraded growth estimates for this year, by the biggest amount in three years.
It forecasts the euro area will be in recession (-0.3 %) and developing nations will see growth at 5.4%, down from earlier forecasts of more than 6 percent.
Hong Kong (CNN) – While ‘Occupy Wall Street’ protests perceived excesses of the capital markets, brokers in Hong Kong took to the streets Thursday to demonstrate against cuts in the length of their lunch break.
About 1,000 brokers, stock exchange staff and restaurant workers spent their 90-minute lunch break protesting against plans to cut their lunch hour to – well, an hour. Until last year, the Hong Kong Stock Exchange had a two-hour lunch break – the longest in the world for major bourses.
Exchange officials say the move, which is planned for implementation in March, is to keep the exchange competitive with other major exchanges. Japan and Singapore made similar moves last year to reduce the time their exchanges are closed to trading for lunch.
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