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International Business News
Southeast Asia faces economic battle
Al l', Hua Hin. Thailand
Southeast Asia faces a battle to survive the global economic meltdown, Thailand's premier said Saturday, while expressing hope that die region can agree on the path towards recovery.
Abhisit Vejjajiva told his counterparts at the opening of the annual Association of Southeast Nations (Asean) summit that die world would be watching die region's performance, once a bright spot in the global economy.
"ASEAN is at the frontier of an economic battle and recovery. We will be severely tested from now on, both as a group and as a part of die broader Asian region," Abhisit said at the summit in the beach resort of Hua Hin,
"As the financial crisis deepens the world will look towards our region for action and confidence, which is exactly what we in Asean are set out to do," said Abhisit, an Oxford-educated economist.
Asean's export-driven economies are starting to suffer as their markets fall prey to the financial crisis, financial hub Singapore is in recession and Thailand's economy shrank in the last quarter of2008.
Foreign ministers from the 10-member bloc and from China, Japan and South Korea agreed last week to set up a 120-billion-dollar emergency foreign exchange fund for the region but did not give a date for setting it up.
Germany ready for $6.3b
Opel bailout
AJFP, Berlin
The German government is prepared to step in to help auto maker General Motors Europe's Opel division with a bail out of up to five billion euros (6.3 billion dollars), a report said Saturday.
The state was ready to shore up the company and as a last resort take a temporary stake of no more than 20 percent, the Leipziger Volkszeitung newspaper said quoting sources close to the government.
The government regarded as unviable, however, the company's own rescue plan, the report added.
The head of GM Europe Carl-Peter Forster said Friday Opel needed 3.3 billion euros (4.2 billion dollars) in aid to survive after presenting its supervisory board with a plan to save the car maker.
Forster said General Motors Europe would present the plan to German authorities on Monday, and that it included 3.0 billion euros from GM itself along with around one billion euros in cost savings.
Opel would repay any state aid by 2014-2015, he said.
The rescue plan was required by German authorities before any public aid could be granted to Opel, which has been hit by a global auto slump and massive financial problems at its troubled US parent General Motors.
Biden pushes 'green jobs' for the middle class
AFP, Washington
US Vice President Joe Biden pushed "green jobs" Friday as a way to help the middle class weather economic hard times, saying better pay and social benefits will flow from producing environmentally friendly goods and services.
Biden was scheduled to open a meeting of a White House Task Force on Middle Class Families in Philadelphia that has as its centrepiece President Barack Obama's plans to invest 20 billion dollars in a "cleaner, greenereconomy."
So what exactly are 'green jobs'?" Biden wrote in an op-ed published Friday in the Philadelphia Inquirer. "They provide products and services that use renewable energy resources, reduce pollution, and conserve energy and natural resources."
Citing the Council of Economic Advisers, Biden said green jobs pay 10 to 20 percent more than other jobs and are more likely to be unionised.
Building a new power grid, manufacturing solar panels, weatherising homes and office buildings, and renovating schools are just a few of the ways to create high-quality green jobs that strengthen the foundation of this country, "he wrote.
British, Chinese firms seal major aviation deal
AfP, London
A 1.2 billion dollar deal between British jet engine maker Rolls-Royce and Hainan Airlines of China was announced Friday as British and Chinese firms signed deals worth up to 1.9 billion dollars.
The announcements, sealed at a ceremony in London attended by China's Trade Minister Chen Deming and Britain's Business Secretary Peter Mandelson, came on the last leg of a Chinese trade tour of Europe.
The 1.2 billion dollar (950 million euro) deal is for the purchase of Rolls-Royce jet engines and a service contract for Hong Kong Airlines planes, it was announced
Afterwards, Chen said all the deals underlined China and Britain's joint commitment to the "fight against protectionism."
We're probably facing the most serious economic situation ever since the Great Depression," he said.
China's economy "is also seriously negatively affected" and the situation "unprecedented", the minister said.