Hyundai and Kia predict slower sales growth in 2012
Hyundai and its affiliate Kia Motors have said they expect sales growth in 2012 to be sharply slower than 2011 due to the global economic downturn.
The South Korean carmakers said they expect sales to rise by 6% next year to 7 million vehicles. Their combined sales rose by 15% in 2011.
The group is the fifth largest vehicle maker in the world and performed well during the recession.
But the company said weak European growth will limit expansion this year.
"I expect the automotive industry to see growth slowing because of the European debt crisis and the global economic slowdown," said Hyundai Motor's chairman, Chung Mong-koo.
Competition
The company also expects increased competition from Japanese manufacturers recovering from last year's earthquake and tsunami.
"Hyundai and Kia have offered a conservative sales target based on the negative economic outlook," said car analyst Ahn Sang-jun from Tong Yang Securities.
"I expect it to be fully achievable and sales to reach 7.2 million [vehicles] next year."
The group has also said it is to invest 4.6trn Korean won ($4bn, £2.6bn) for fuel efficient and electric cars.
Last month, Japanese carmaker Toyota forecast a 20% increase in sales in 2012, to 8.48 million cars.
India may 'reverse' monetary policy to boost growth
The Reserve Bank of India (RBI) has said it may ease its monetary policy amid fears of a global economic slowdown.
Duvvuri Subbarao, the governor of RBI, told the BBC the bank is likely to shift its focus towards boosting growth.
The RBI has raised its key interest rate 13 times since March 2010 in a bid to control rising consumer prices.
However, there have been fears that excessive tightening may hurt growth.
"From here on we could expect reversal of monetary tightening," Mr Subbarao told the BBC's India Business Report.
However, Mr Subbarao added that it was "difficult to say when that will take place and in what shape it will roll out".
'Mindful of growth'
Over the past two years, the RBI has focused on controlling the high rate of inflation in the country.
Rising costs of food and other essential commodities such as fuel saw consumer prices rise sharply in India, prompting the central bank to raise the cost of borrowing in a bid to slow domestic demand.
The tightening measures have started to have some impact on stemming price growth, with the rate of inflation falling to 9.1% in November, from 9.7% in the previous month.
However, there have been concerns that the high cost of borrowing has also hurt businesses in the country.
Industrial production in India fell 5.1% in October from a year earlier, the first such fall in almost two years.
That, coupled with a slowdown in the eurozone and the US, has raised fears that India's economic growth may slow further in the coming months.
Mr Subbarao said that although inflation still remained a risk, the RBI was aware that it needed to boost growth amid an uncertain global economic environment.
"We have always been mindful of growth concerns, contrary to popular perceptions," he said.
"In fact, in our December statement we said that growth is a serious concern. So I think the balance between growth and inflation will shift in 2012," he added.
China Hints at Loosening Exchange Rate
China's central bank governor hinted Saturday that the exchange rate for country's currency - the yuan - could be loosened in the near future.
In an interview with the weekly magazine Caixin, Zhou Xiaochuan, governor of the People's Bank of China, said the bank was close to reaching its goal of allowing the yuan to be converted at market-determined exchange rates.
Beijing's trading partners, including the United States, have long criticized its exchange rate, saying it is kept artificially low, causing massive trade deficits between some countries and China.
On inflation, Zhou said the outlook has improved and the task of keeping prices down would not be as urgent in 2012.
Some information for this report was provided by AP and Reuters.
Fiji Announces Lifting of State of Emergency
Fiji's military strongman Voreqe Bainimarama said Monday that he will lift a two-year state of emergency next Saturday and begin a process of drafting a new constitution leading to new elections in 2014.
In his New Year's message, Mr. Bainimarama stressed that public order would be maintained and that he would soon announce nationwide consultations for a new constitution to establish a democratically-elected government.
“I will in the next few weeks announce the nationwide consultation process, which will commence in February 2012.”
Mr. Bainimarama gave no details of what will replace martial law, but rather, he described the values on which the constitution should be based.
“The constitution must establish a new government that is founded on a new electoral system that guarantees equal suffrage. A truly democratic system based on the principal on one person, one vote, one value.”
When he seized power in a bloodless coup in December 2006, Mr. Bainimarama said Fiji's ruling political classes were corrupt, and that the existing voting system was racially based to give indigenous Fijians greater voting power than the ethnic Indians who make up about 35 percent of the nation's 900,000 people.
“We will not have a system that will classify Fijians on ethnicity, and our young men and women – those 18 years old – must have the right to vote.”
Draconian regulations, including tight censorship on the news media and a ban on public meetings, were imposed after a Fiji court ruled that Commodore Bainimarama's military coup was illegal.
Mr. Bainimarama has broken earlier pledges to return to democracy, but says he will hold elections in 2014.
Jon Fraenkel at the Australian National University told VOA he remains hopeful democracy can return to Fiji but remains skeptical the military will stay out of the election process.
“Well, we'll have to wait and see. There were previous times since the 2006 coup where they lifted the public emergency regulations. And the minute there was any signs of dissent, they slapped them straight back on.”
Relations between Fiji and many countries have deteriorated since Mr. Bainimarama seized power, and he has remained under heavy pressure to return Fiji to democracy.
Australia, New Zealand, the European Union and the United States have imposed sanctions and financial penalties imposed on the government.
Fiji also remains suspended from the 53-member, British-led group of former British colonies known as the Commonwealth.
Nigeria fury as fuel prices double after subsidy ends
Ordinary Nigerians and trade unionists have condemned the government for withdrawing a fuel price subsidy which has led some petrol prices to double and many filling stations to stay shut.
The BBC's Chris Ewokor in the capital, Abuja, says Nigerians are angry at the announcement, fearing the price of many other goods will also rise.
The main trade unions have called people to prepare for a strike.
Nigeria is Africa's biggest oil producer, but imports refined petrol.
Years of mismanagement and corruption mean it does not have the capacity to refine oil, turning it into petrol and other fuels.
Analysts say many Nigerians regard cheap fuel as the only benefit they get from the nation's oil wealth.
Our correspondent says that many petrol stations in Abuja are closed as the owners are not sure what price they should charge.
He says there are long queues outside some filling stations.
'Long drawn battle'
In the commercial capital, Lagos, most petrol stations are closed, while those which are open have more than doubled their prices, reports the BBC's Tomi Oladipo in the city.
Prices have increased from 65 naira ($0.40; £0.26) per litre to at least 140 naira in filling stations are from 100 naira to at least 200 on the black market.
The government has spent more than $8bn (£5.2bn) on the subsidies in the past year and says it will use some of the money to improve infrastructure.
"Consumers are assured of adequate supply of quality products at prices that are competitive and non-exploitative and so there is no need for anyone to engage in panic buying or product hoarding," said a government statement.
Nigeria's two main labour organisations, the Trades Union Congress and the Nigerian Labour Congress, issued a joint statement condemning the move.
"We alert the populace to begin immediate mobilisation towards the D-Day for the commencement of strikes, street demonstrations and mass protests across the country," the statement said.
"This promises to be a long-drawn battle; we know it is beginning, but we do not know its end or when it will end."
"We are confident the Nigerian people will triumph," it said.
State of emergency
Nigeria is Africa's biggest oil producer but most of the available 2 million barrels per day are exported in an unrefined state.
The country lacks refineries and infrastructure so has to import refined products such as petrol, which is expensive.
Nigerians are heavy users of fuel, not just for cars but to power generators that many households and businesses use to cope with the country's erratic electricity supply.
Previous attempts to end the subsidies in Nigeria have prompted industrial action and street protests.
A strike against fuel price rises in Nigeria in 2004 caused most petrol stations to close, leading to transport chaos and a thriving black market in petrol.
Correspondents say the measures just announced could add to the difficulties faced by Nigerian President Goodluck Jonathan, who declared a state of emergency on Saturday in areas hit by Islamist violence.
BBC
Egypt's generals move up next round of elections
Egypt's ruling military council has moved up the scheduled elections for the upper house of parliament by nearly three weeks, with voting now scheduled to start in late January, the state news agency MENA reported Sunday.
Balloting will be held in two stages instead of three, first on January 29-30 and then on February 14-15, MENA said, citing a decree from the Supreme Council of the Armed Forces. If necessary, runoffs would be held on February 7 and 22, with a goal of having winners seated by February 28.
Elections for the upper house had been scheduled to wrap up by March 12. Elections for the lower house were completed in December, with Islamist parties winning the largest share of the votes.
The generals have ruled Egypt since the revolt that toppled longtime strongman Hosni Mubarak last February. Sunday's announcement follows weeks of street protests calling on them to cede power to a civilian government, and a crackdown on opposition that saw police raiding several rights groups, including three based in the United States.
Egyptian authorities agreed to halt the raids and return all equipment and documents seized after protests from Washington, which provides more than $1 billion per year in military aid to Egypt.
Iran Announces Missile Test After Nuclear Development
Iran says it has successfully tested a cruise missile, a day after announcing another missile test and a new development in its nuclear program.
State media reported the ground-to-sea cruise missile test Monday, the last day of Naval exercises. Iran says the war games also included test-firing a medium-range surface-to-air missile Sunday near the strategic Strait of Hormuz.
Iran also said Sunday it successfully tested and produced fuel rods for use in nuclear power plants.
Iranian television said the fuel rods, which contain natural uranium, were made in Iran and inserted into the core of a research nuclear reactor in Tehran.
Middle East analyst Stephen Zunes told VOA that the step does not present a major security threat, and that Iran still has a long way to go in developing a nuclear weapon.
Both the United States and the European Union contend that Iran is secretly trying to develop nuclear weapons. Iran says its nuclear intentions are peaceful.
State media also boasted that the missile tested Sunday was equipped with technology enabling it to pinpoint radar-evading targets.
Zunes said that type of missile is a defensive weapon that could be used against attacking planes, and that the test is a warning against preemptive strikes by other nations. But he says Iran's military progress does not necessarily mean it is more willing to carry out its own attack.
Iranian officials Sunday also dismissed Washington's move to impose new sanctions on financial institutions that deal with Iran's central bank. U.S. President Barack Obama signed the sanctions into law Saturday as part of a push to hamper Tehran's ability to finance its nuclear enrichment program.
Iran has threatened to respond to possible wider sanctions on its oil exports by closing the Strait of Hormuz, a vital export route for the other oil-producing countries of the Persian Gulf. The U.S. Navy's Fifth Fleet, based in Bahrain, says it will not allow disruptions to Gulf shipping.
Seoul Sees Opportunity for Better Ties with North Korea
South Korean President Lee Myung Bak says a new era in inter-Korean relations can be opened if North Korea shows sincerity.
In a nationally televised New Year's address Monday, Mr. Lee said there is a new opportunity on the Korean peninsula
as the young son of the late Kim Jong Il takes power as Supreme Commander of the North Korean military and ruling party leader after Mr. Kim's death last month.
But Mr. Lee also warned that South Korea will respond sternly to any provocation from the North.
On Friday, North Korea's powerful National Defense Commission said that there would be no policy changes under Kim Jong Un.
Tensions between the two Koreas have been high since Seoul accused Pyongyang of sinking a warship near the disputed sea border, known as the Northern Limit Line in March 2010. Forty-six South Korean sailors were killed in the attack.
Relations worsened after the North bombarded South Korea's Yeopyeong island in November 2010, killing four people.
Kelly Rowland wants to get a 'movie kiss' on New Year's Eve
The former Destiny's Child star is currently single, but says she would like to see 2012 in with a passionate embrace.
She said: "I don't know what I'm doing, but hopefully I'll just get a kiss! I want a good kiss where someone just takes your face in their hands, like in the movies. I want a movie kiss. Get in there, grab my ass - just let me know you mean it!"
Kelly - who was a judge on this year's UK X Factor - says her New Year's resolution is to star in two films.
She said: "Next year, I really want to do two movies. I did one this year in the States, so I'd like to do two next year."
The Down for Whatever singer loves spending the holiday season with her family, and especially enjoys the festive food.
She said: "I like everything over Christmas time. We eat, watch a movie, people fall asleep, they wake up, we eat again. I love that feeling of family."
Rihanna To Perform New Year's Eve Concert in Barbados
Bajan pop star Rihanna is set to perform a private concert in Barbados on New Year's Eve, where the audience will include Simon Cowell. This is AWESOME! The government of Barbados has invested a lot of money in Rihanna as an Ambassador and it seems to be paying off! The government reportedly paid Rihanna £1.25 million (YAOW! that's almost $2MM USD!!!) to perform at Barbados' Cropover Carnival in August. Not that I care about Simon Cowell, but I care about the attention it brings to Barbados which in turn means tourism dollars which in turn means a stimulated economy which means people working! Love dat!!!
Riri will headline the party for the UK's Global Radio boss Ashley Talbot at the luxurious Sandy Lane hotel, and the 52-year-old music mogul is expected to be in attendance.
Boyband The Wanted are also expected to perform. A source told British newspaper the Daily Star: "
"Everyone is very excited to hear that she'll be back again so soon and plenty of the islanders are hoping to catch a glimpse of her in town, even if they can't get into the party."
SOURCE: CEM