S Korea's factory output dips on weaker domestic demand
South Korea's industrial output shrank in November as weaker domestic demand weighed on the construction and services sectors.
Output fell by 0.4% from October, the statistical office said, worse than many analysts had predicted.
Spending on equipment, construction and the service industry saw the biggest declines.
Issues such as the global slowdown and high levels of household debt are weighing on many consumers and firms.
The figures come a day after the Bank of Korea said its manufacturing sentiment index fell to its lowest level in almost two-and-a-half years amid growing concerns about the depth of the global economic slowdown.
The Bank of Korea's manufacturers' outlook index fell to 79 in January from 83 in December. That was the lowest reading since the 78 recorded in July 2009.
Businesses blamed the gloomy outlook on sluggish local demand, soft global economic conditions and higher raw material costs.
Good or bad?
For some observers, Thursday's industrial output report will only add to the feeling of gloom affecting many companies and consumers.
"We've been seeing worsening numbers on both the real economic and sentiment fronts. Today's set of indicators added to that and could drag sentiment down in turn," said Yum Sang-hoon, a fixed-income analyst at SK Securities.
However, Thursday's statistical office report was not all bad news.
The annual rate of industrial output was up 5.6% in November when compared to the same month a year earlier.
At the same time, exports in the mining and manufacturing sectors rose by 8%, the report said.
South Korea relies on exports for roughly half of its total economic output.
Brazil becomes sixth largest economy
Brazil has overtaken Britain as the world's sixth largest economy. It's predicted that Brazil's economy may grow five percent next year.
It’s much bigger in size than the UK and now it seems Brazil is also bigger economically.
The London-based center of Economics and Business Research says the South American country has taken Britain’s place as the sixth largest economy in the world.
Brazil’s GDP expanded three percent this year and next year it could grow by five percent.
Armando Castello, a Brazilian economist, believes Brazil’s rise up the ladder could assist in securing investment.
Brazilian economist Armando Castello said: "The position is more about statistics than economics. The economy itself is what really matters. But it has a psychological effect that is important, that helps with attracting investments."
And Brazil clearly has even larger ambitions.
Brazilian Minster of Finance Guido Mantega said: "We want to be the fifth largest economy by 2015, surpassing France."
Brazil’s success is largely due to its main exports - manufactured goods, iron ore and agricultural products, such as coffee.
Investment in oil has also helped.
In contrast Britain has experienced a banking crisis and a recession since 2008.
Brazil’s rise up the rankings is also relatively swift - it only took the seventh spot from Italy last year.
The United States, China, Japan and Germany remain the top four economies.
But Brazil is clearly in the fast lane while others head towards the hard shoulder.
India and Japan sign new $15bn currency swap agreement
India and Japan have signed a $15bn (£9.7bn) currency swap agreement as the two nations seek to boost financial co-operation.
It will see them swap currencies for US dollars and tap into each other's foreign exchange reserves to ease any liquidity problems.
The pact is expected to boost the Indian rupee which has been Asia worst performing currency this year.
The Japanese yen has also been volatile in wake of an uncertain global outlook.
"Amid global economic uncertainties, ensuring the stability of the financial markets is all the more important for the stable economic development of the two countries," Japanese prime minister Yoshihiko Noda and Indian prime minister Manmohan Singh said in a joint statement after their meeting in New Delhi.
The deal comes at a time when there have been growing concerns about foreign institutional investors (FIIs) pulling out of the Indian market.
Investors have been concerned that the ongoing economic problems in the eurozone and the US may hurt demand for Indian exports and slow its growth.
Fears of a slowdown in the Indian economy saw FII's withdraw almost 32,000m rupees ($600m; £390m) from the Indian securities market in November alone.
The huge capital outflows has hurt the Indian currency which has hit an all time low against the US dollar in recent weeks.
There have also been fears of the impact of these withdrawals on the overall Indian economy.
Analysts said though the Indian foreign exchange reserves were healthy, the deal will help allay any fears of a potential problem in the short-term.
"If we add to this the still huge uncertainty on the resolution of the European debt crisis, it seems clear that India can benefit from an additional cushion against capital outflows," said Alicia Garcia-Herrero, chief economist for emerging markets at BBVA bank.
The Japanese prime minister also promised to provide financial assistance for infrastructure development in India.
Mr Noda said that Japan will invest $4.5bn to help build the industrial corridor between New Delhi and Mumbai, a project that is expected to boost India's growth further.
The corridor, which is expected to cost $100bn, includes plans for nine mega industrial zones, a high speed freight line, three ports, six airports and a six-lane intersection-free expressway connecting India's political and financial capitals.
Analysts said Japanese businesses were likely to benefit from the project.
"One big objective of the industrial corridor is to create a manufacturing base for Japanese companies to export to Europe and Africa," said Robinder Sachdev of think-tank Imagindia.
Mr Noda also said that Japan would provide an extra $1.7bn in funding for other projects including the expansion of Delhi's metro railway network.
South Stream pipeline gets Turkey green light
Turkey has given permission for the South Stream gas pipeline to be built across its territories, giving the project a clear run into the lucrative energy markets of Europe.
The pipeline will transport Russian gas to Europe under the Black Sea.
It will now be able to bypass Ukraine, which had failed to reach an agreement with the pipeline's owners.
Gazprom has a 50% stake in the project, Italy's Eni 20% and France's EDF and Germany's Wintershall 15% each.
A short statement from Gazprom said "all necessary and unconditional permits were granted".
Russian Prime Minister Vladimir Putin said at a ceremony in Moscow: "I would like to thank the government of the Turkish Republic for its decision to permit construction of the South Stream pipeline in Turkey's economic zone."
The full pipeline is expected to be completed by the end of 2015.
The main rival to the South Stream project is the EU-backed Nabucco pipeline, which is set to carry gas from the Caspian region to Austria, passing through southern Europe.
North Korea Hails Kim Jong Un as ‘Supreme Leader’
Kim Jong Un has been declared supreme leader of North Korea's ruling party and military during a memorial service for his late father, Kim Jong Il, in Pyongyang.
State television showed a massive gathering of people for the service in Kim Il Sung Square.
As the younger Kim watched from a palace balcony, ceremonial head of state Kim Yong Nam told the crowd Mr. Kim inherits his father's “ideology, character and revolutionary” cause.
“Our great comrade Kim Jong Il has solved the leadership succession matter perfectly, which is the most precious accomplishment for our country's destiny and endless prosperity of our descendants.”
The nation observed three minutes of silence as the ceremony ended at noon local time. State television showed citizens standing motionless with their heads bowed, as trains, ships and other vehicles sounded their horns.
The memorial service was part of the second day of funeral ceremonies for Kim Jong Il, who died of a heart attack on December 17.
On Wednesday, tens of thousands of weeping North Koreans bade the late leader a final farewell as a black hearse carried his coffin through Pyongyang's snow-covered streets.
Foreign governments are watching events in Pyongyang closely because of concerns about the younger Kim's rise in a country with a nuclear program, a large army and a history of deep animosity toward its neighbors.
A spokesman for the U.S. State Department, Mark Toner, said at a press briefing Wednesday that the funeral procession was obviously an emotional moment for North Koreans. In terms of North Korea's future leadership, he said Pyongyang has made some statements to clarify it, but that “we'll wait and see” what else emerges in the coming days and weeks. He said there is little insight into the country that has a “pretty opaque” political system.
US warns Iran over threat to block oil route
The US Navy has said it will not tolerate disruption to a vital oil-trade route, following an Iranian threat to close it.
Iran warned it would shut the Strait of Hormuz if the West imposed more sanctions over its nuclear programme.
The US and its allies believe Iran is trying to develop a nuclear weapon - a charge Tehran denies.
Reacting to Iran's warning, a US Fifth Fleet spokeswoman said it was "always ready to counter malevolent actions".
The Strait of Hormuz links the Gulf - and the oil-producing states of Bahrain, Kuwait, Qatar, Saudi Arabia and the United Arab Emirates (UAE) - to the Indian Ocean. About 40% of the world's tanker-borne oil passes through it.
The US maintains a naval presence in the Gulf, largely to ensure the transport of oil remains open.
The strait "is not only important for security and stability in the region, but also is an economic lifeline for countries in the Gulf, including Iran", Pentagon spokesman George Little said.
"Raising the temperature on tensions in the Gulf is unhelpful", he said, but added that he was unaware of any hostile action directed against US vessels.
US Fifth Fleet spokeswoman Rebecca Rebarich told the BBC the navy would be ready to act if required: "The US Navy is a flexible, multi-capable force committed to regional security and stability, always ready to counter malevolent actions to ensure freedom of navigation."
Closure 'easy'
Western nations recently imposed new sanctions against Tehran following a UN report that said Iran had carried out tests related to "development of a nuclear device".
Further measures being considered to target Iran's oil and financial sectors have brought a furious response from Tehran.
Vice-President Mohammad Reza Rahimi warned that "not a drop of oil will pass through the Strait of Hormuz" if sanctions are widened and Iran's navy chief Admiral Habibollah Sayari said that closing the strait would be "easy".
"The enemies will only drop their plots when we put them back in their place," Mr Rahimi was quoted as saying on Tuesday by the official news agency Irna.
Adm Sayari later told Iran's Press TV that closing the Strait of Hormuz would be "really easy" for Iran's armed forces "or, as Iranians say, easier than drinking a glass of water".
"But right now, we don't need to shut it as we have the Sea of Oman under control, and we can control the transit," he added.
Iran's threats to close the strait have not flustered markets and oil prices actually fell after a senior Saudi oil official said that Gulf Arab nations were ready to offset any loss of Iranian crude.
'Non-compliance'
Earlier, US State Department deputy spokesman Mark Toner said the Iranian threats were simply "another attempt... to distract attention from the real issue, which is their continued non-compliance with their international nuclear obligations".
Iran's navy has been staging wargames in international waters to the east of the strait.
Adm Sayari said the manoeuvres were designed to show Gulf neighbours the power of Iran's military over the zone.
Washington and Israel have not ruled out military action against Iran's nuclear facilities if sanctions and diplomacy fail.
Iran has vowed to respond by attacking Israeli and US interests in the region.
An embargo on Iranian oil exports has been considered before but dismissed as it could also drive up global oil prices and harm Western economies, particularly in Europe.
It is believed the new measures could cut Tehran off from global energy markets without raising the price of fuel.
National Memorial Service for Kim Jong Il Underway in Pyongyang
Tens of thousands of people packed a central square in Pyongyang on Thursday for a national memorial service for the late North Korean leader Kim Jong Il.
State television showed a massive sea of tightly packed soldiers that filled Kim Il Sung square as the deceased leader's heir apparent and youngest son, Kim Jong Un, looked on with his head bowed.
Ceremonial head of state Kim Yong Nam told the crowd that Kim Jong Un inherits his father's “ideology, character and revolutionary” cause.
The entire nation, which has been in an official state of mourning since Kim Jong Il's death was announced, will observe three minutes of silence at noon local time. The memorial is part of the second day of funeral ceremonies for Mr. Kim, who died of a heart attack on December 17.
On Wednesday, observers worldwide watched television images of Mr. Kim's funeral procession for clues of who holds the real power after his death.
Kim Jong Un clearly had a central role in the ceremony. He walked alongside a black limousine carrying his father's hearse through central Pyongyang, and was at the center of the group attending the red flag-draped coffin at the square of the Kumsusan Memorial Palace.
Since Kim Jong Il's death, North Korean state-run media have called Kim Jong Un the “great successor” and the supreme leader of the ruling Worker's Party, the state and the army, even though he has not been appointed officially to any of those positions.
Walking behind him during the funeral procession were Mr. Kim's influential uncle Jang Song Thaek, senior party officials Kim Ki Nam and Choe Thae Bok, military chief Ri Yong Ho, armed forces minister Kim Yong Chun and senior military officer Kim Jong Gak. Their presence suggests that they will have a role in North Korea's leadership.
Thousands of weeping and wailing North Koreans lined the snow-covered procession route.
Foreign governments are watching events in Pyongyang closely because of concerns about the young Mr. Kim's rise in a country with a nuclear program, a large army and a history of deep animosity toward its neighbors.
A spokesman for the U.S. State Department, Mark Toner, said at a press briefing Wednesday that the funeral procession was obviously an emotional moment for North Koreans. In terms of North Korea's future leadership, he said Pyongyang has made some statements to clarify it, but that “we'll wait and see” what else emerges in the coming days and weeks. He said there is little insight into the country that has a “pretty opaque” political system.
Arab Monitors Deploy Across Syria as Credibility Questioned
Arab League monitors Thursday are expected to visit the Syrian cities of Daraa, Hama and Idlib, where anti-government protests have been violently repressed, as questions mount about the observers' credibility.
In the two days since the Arab monitors arrived, activists and rights groups said troops have killed at least 39 people, including six shot in the central city of Hama on Wednesday.
The British-based Syrian Observatory for Human Rights said violence also erupted in several other parts of Syria, including the ambush killings of four soldiers by a group of military defectors.
The continued bloodshed has fueled concerns by the Syrian opposition that the Arab monitors are neither properly qualified nor independent.
Residents of the hard-hit Homs district of Baba Amr refused to allow observers in because they insisted on having army officers with them. The standoff ended when the officers withdrew.
Also Wednesday, Syrian state media said the government released 755 prisoners arrested during the protests. Human Rights Watch said the move was a positive step, but expressed concern that other detainees were being transferred in advance of planned inspections by monitors.
The rights group has accused Syria of moving prisoners to military facilities to hide them from the observers.
The Arab League mission got off to a controversial start when its leader, Sudanese General Mohammed Dabi, said monitors did not see “anything frightening” during its initial visit to Homs. He said the city was “quiet” and there were no clashes.
Dabi later said his team will need more time to properly assess the city, which was pounded by heavy government firepower in the days before the visit.
The observers are monitoring government pledges to halt a violent crackdown and release political detainees.
Middle East analyst Jonathan Adelman of the University of Denver told VOA the Arab League is hoping to push Syrian President Bashar al-Assad away from fighting and into negotiations, but that the size of the observer mission is too small.
“It's also simply not backed up by what really would get Bashar Assad to do something, which is the threat of foreign military intervention which we saw in Libya for example. But without that I think he's going to play with them as long as he can.”
Syrian authorities agreed to the Arab League observers under international pressure and threats of Arab sanctions. The plan requires Syrian authorities to give the monitors freedom of movement except for sensitive military sites.
The United Nations estimates 5,000 people have been killed since March in violence linked to Syria's unrest. Syria says armed terrorists are driving the revolt. It accuses them of killing 2,000 security personnel since March.
Mexico Arrests Cocaine Smuggler Wanted by US
Mexico says it has arrested a suspected drug trafficking kingpin who also is wanted in the United States.
Mexican federal police Wednesday said they detained Luis Rodriguez Olivera, known as “El Guero,” at Mexico City's international airport the day before. The U.S. had offered a reward of $5 million for information leading to his capture.
Rodriguez Olivera is accused of trafficking massive quantities of cocaine into the U.S. between 1996 and 2008. He also has been charged with money laundering.
The arrest is Mexico's second major blow against drug trafficking cartels in two weeks.
Last week, Mexican authorities captured a suspected lieutenant to the elusive leader of the powerful Sinaloa drug cartel.
Felipe Cabrera, also known as “The Engineer,” was said to be a top aide to the head of the Sinaloa cartel, Joaquin “El Chapo” Guzman. Officials said Cabrera rose through the ranks by using violence against his rivals.
Mexican President Felipe Calderon has deployed thousands of troops across Mexico to fight the country's drug cartels. The spiraling violence has left at least 50,000 people dead.
Cole comes up big, and Heat beat Celtics 115-107
LeBron James scored 26 points, rookie point guard Norris Cole came up with 14 of his 20 points in the fourth quarter, and the Miami Heat nearly blew a 20-point lead before beating the Boston Celtics 115-107 on Tuesday night.
Dwyane Wade finished with 24 points and eight assists for Miami, which got 18 from Chris Bosh and twice saw its lead cut to three in the final minutes. Cole delivered the answer both times with a pair of jump shots, and the Heat escaped.
Ray Allen scored 28 points on 8 for 12 shooting for the Celtics, while Rajon Rondo finished with 22 points and 12 assists and Keyon Dooling scored 18 off the Boston bench.
Through two games, Miami (2-0) has trailed only once - by two points, for all of 14 seconds.
Cole's jumper with 3:01 left gave Miami a 108-98 lead, most of which disappeared in the next 59 seconds, thanks to Dooling - a former Heat guard. He scored seven straight points, including a 3-pointer with 2:02 remaining, cutting the Heat's lead to three. And when Boston got a stop on the next Miami trip, the Celtics looked for Dooling again.
But Wade stepped in front of a pass intended for Dooling, starting a play where James found Cole for another jumper, and Miami's cushion was back to 110-105 with 1:31 to play.
And with a minute left, it was Cole again, with the biggest shot of the night for Miami. James set him up from the top of the key for another jumper, restoring the five-point edge. When Cole stepped to the foul line to close the scoring, he got "M-V-P" chants from the Miami crowd, something typically reserved for the likes of Wade, James and Bosh.
Boston was again without forward Paul Pierce (bruised right heel), who worked out both Monday and Tuesday and is getting closer to a return. It won't come on Wednesday, however - the Celtics have already ruled him out of that game in New Orleans, but there is some hope of Pierce being in the lineup when Boston makes its home debut against Detroit on Friday.
Predictably, and maybe spurred by the new Eastern Conference championship banner hanging from the rafters, Miami came out flying.
A short bank shot by Wade made it 26-15 at barely the midpoint of the first quarter, setting the tone for an offensive bonanza the likes of which Boston typically doesn't allow. After a late flurry - James setting up Wade for a lob, Wade missing at the rim but James trailing for a tip-in being perhaps the most impressive of Miami's highlight reel to close the second quarter - the Heat took a 69-54 lead into the locker room.
That represented the most first-half points allowed by the Celtics since Feb. 8, 2005, a span of 607 regular-season and playoff games. James and Wade each had 15 points by the break on a combined 9-for-14 shooting and James Jones came off the bench to make all three of his shots, all from 3-point range.
Even when things looked shaky, the Heat got going again quickly.
Allen and Rondo scored the first baskets of the second half, getting Boston within 11. In a flash, Miami's lead was back up to 20 - six straight points by James made it 85-65 midway through the third, and Miami was well on its way to a blowout.
Or not.
Feasting on Miami's second unit, with James being the only starter on the floor, the Celtics closed the third on an 18-6 run to make it 91-83 entering the fourth. The Heat missed their last eight shots of the quarter - after having missed 14, total, in the first 32 minutes of the game - and Boston capitalized, taking all the momentum into the final 12 minutes.
Even though Miami pushed the lead back to 15 early in the fourth, Boston just kept answering. Rondo spun and flipped the ball to Allen for what became his sixth 3-pointer of the night with 6 minutes left, getting the Celtics to 102-93.
SI