Dollar crawls higher ahead of US jobs data

All’, Tokyo

The dollar edged higher against the euro and the yen in Asian trade on Thursday on the eve of a key monthly US jobs report.

Traders showed a muted response to Federal Reserve chairman Ben Bernanke's remarks to Congress where he acknowledged a possible US recession.

The dollar rose to 102.66 yen in Tokyo afternoon trade compared with 102.29 yen lateWednesday in New York.

The euro slipped to 1.5623 dollars from 1.5687 and to 160.46yen from 160.59.

The greenback got a boost from a private sector jobs survey released Wednesday that suggested the US economy was not as weak as some had expected, dealers said.

Payroll services firm ADP reported an 8,000 increase in private sector jobs in March, against forecasts for a loss of as many as 70,000.

But analysts said the report may not be a reliable guide to Friday's all-important US non-farm payrolls report, one of the mostly closely watched indicators on the health of the world’s largest economy.

Bernanke says recession possible, defends Bear Stearns move

AFP, Washington

Federal Reserve chief Ben Bernanke acknowledged Wednesday a US recession may have begun and defended tire rescue of investment firm Bear Stearns as a move to avert a potential economic calamity.

In remarks to US lawmakers, Bernanke said the economy has weakened since the Fed’s latest outlook prepared in January, meaning a contraction is likely.

The latest data suggests the economy "will not grow much, if at all, over the first half of 2008 and could even contract slightly,” Bernanke told the Joint Economic Committee of Congress.

"A recession is possible," Bernanke told lawmakers.

But he noted that an independent economic panel will make a determination at a later time on a recession: "So I'm not yet ready to say whether or not the US economy will face such a situation. However, it’s clearly a period of very slow growth."

Privatization of major US airport attracts foreign interest

AFP, Chicago

Foreign investors are lining up to bid to operate Chicago's Midway International Airport, the first major US airport to be privatized under a federal initiative launched more titan a decade ago.

City officials say six consortiums, which include firms from France, Australia, Germany, Canada and Spain, are vyingto run Chicago's secondary airport.

While many European airports were privatized years ago, all commercial airports in the United States are currently operated and owned by local or state governments.

Midway was the first major hub airport to apply for privatization approval since the US congress established a pilot program in 1996 to explore the use of private operators at commercial airports.

Yet it remains unclear whether the effort will generate a backlash if a foreign firm is chosen, in light of security concerns raised after a failed effort by a Dubai group to take over major US ports.

"This will surely generate debate since there may be perceptions about foreign ownership of sensitive or critical transportation properties like we saw with the Dubai port deal," said Joe Schweiterman, a transportation professor at DePaul University in Chicago.

Motorola to shut Singapore mobile phone plant

AFP, Singapore

Struggling US telecom giant Motorola will close its mobile phone manufacturing plant in Singapore as part of the company's 500-million US dollar global cost cutting exercise, it said Thursday.

Motorola said the move, which will affect 700 employees, is aimed at aligning the company's operations to grow the business.

"Motorola confirms that as part of its strategic review of business operations... the company will begin a phased transition of its mobile phone manufacturing operations from Singapore to other Motorola facilities worldwide," company spokeswoman Lynn Chan said.

"This transition will enable Motorola to align the organisational structure with long-term plans to drive the business while continuing to provide its customers with high-quality products and services,” she said.

Motorola will start phasing out the mobile phone plant's operations in the second quarter and expects the exercise to be completed by the end of the year.