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International Business News
SKorea firms cool on investment at home, look abroad
AFP, Seoul
South Korean companies invested more abroad in the first half of this year but domestic investment was sluggish due to high costs and an uncertain business environment, officials said Tuesday.
Fixed domestic investment grew just 0.5 percent year-on-year to 106.3 trillion won (101.3 billion dollars) from January-June, according to the central Bank of Korea.
It was the lowest first- half percentage increase since 2001, but the bank predicts the full -year growth figure will be about four percent.
During the same period, direct overseas investment by local enterprises soared 42.8 percent from a year earlier to 14.72 billion dollars.
Domestic private consumption remains weak and firms are also cautious due to high salaries and other costs, bank officials said.
A lack of incentives such as the deregulation promised by President Lee Myung-Bak also prompted companies to go abroad, they said.
Australia's Virgin Blue says oil prices hurt more than 9/11
AFP, Sydney
Australia's second largest airline Virgin Blue said Tuesday soaring oil prices were hurting the industry more than the September 11 attacks on the US, as it reported a 55 percent fall in net profit.
Virgin Blue Holdings said net profit for the year ended June 30 was 97.7 million dollars (84.6 million US) -- less than half last year's 215.8 million dollars.
Underlying profit was above expectations at 140.5 million dollars while revenue rose 8.4 percent to 2.3'5 billion dollars, it said in a statement.
But the airline, founded by British entrepreneur Richard Branson, said higher oil prices had damaged the industry more than the 2001 attacks on the US and the outbreak of SARS (Severe Acute Respiratory Syndrome) combined.
"The current fuel crisis -- and it is just that... a fuel crisis in so far as the industry is concerned -- has swamped the industry, to a magnitude greater than probably SARS and 9/11 combined," chief executive Brett Godfrey said.
China loans more to small businesses to boost employment
AFP, Shanghai
1 China's central bank has more than doubled the amount entrepreneurs and small businesses can borrow as part of efforts to boost employment, officials said.
The maximum amount that can be loaned to individuals for business purposes was raised to 50,000 yuan (7,300 dollars) from 20,000 yuan, the People's Bank of China said in a statement posted on its website late Monday.
The limit on loans to labour-intensive small businesses was doubled to two million yuan from one million yuan, according to the notice distributed to local authorities and banks earlier this month.
"(We) need to enhance the policy support for labour-intensive small enterprises, prompt them to hire more jobless people,” the central bank said.
T-Mobile to launch first
Google-powered mobile
AFP, Berlin
T-Mobile said Monday it plans to launch a mobile phone powered by Google's Android software, making it the first operator to do so and posing a direct threat to Apple's popular iPhone.
A spokesman for Deutsche Telekom, T-Mobile's German parent, declined to comment on the launch date for the device which is made by mobile phone maker HTC.
According to a report in the New York Times, the phone will hit the stores in the United States before Christmas, perhaps as early as October.
The new device will have a touch screen like the iPhone and other smartphones that use software from firms like Palm, Microsoft and Nokia to allow users to access the Internet.