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International Business News
Australia trumpets record deal with China
A1P, Sydney
Australia celebrated the biggest trade deal in its history on Wednesday and said it proved vital ties with China had survived a scries of bruising rows.
Prime Minister Kevin Budd said ExxonMobil’s 11.3 billion US dollar liquefied natural gas contract with PetroChina would create up to 6.000 jobs and pump billions of dollars into the economy.
This agreement provides the basis for the creation ol thousands ol jobs and also injecting billions of dollars into our economy," he said.
PetroChina ordered 2.25 million tonnes of liquefied natural gas (LNG) a year over two decades from ExxonMobil’s share of the still-undeveloped Gorgon plant off Western Australia.
lite huge contract, signed behind closed doors and announced late on luesday, comes despite weeks of friction over China's detention of a mining executive and Australia's move to allow a visit by top dissident Rebiya Kadeer.
Finance Minister Lindsay Tanner dismissed the controversies as mere glitches in a trade relationship worth 58 billion US dollars last year.
"Inevitably there will be die tension here and there, that's unavoidable," Tanner told Sky News. "But underneath that is a developing and very strong commercial relationship that's very important for both countries."
Foreign Minister Stephen Smith, who on luesday complained (hat a "most unhappy" China had downgraded an official visit over Kadeer, said it was business as usual for the two countries.
Thai exports fall 25.7pc in July
AFP, Bangkok
Thai exports fell 25.7 percent year-on-year in July on declining foreign demand amid strong competition, the commerce ministry said in a statement Wednesday.
It was the ninth consecutive month to see a drop in exports, but the figure had improved from June's 25.9 percent, while the value of exports was the highest this year at 12.9 billion dollars.
"Exports fell on declining demand in key foreign markets and high competition." said Siripol Yodmuangcharoen. the ministry's permanent secretary.
Exports to Thailand's main markets in Southeast Asia, the European Union, Japan and the United States were down by an average 31.0 percent.
Siripol said the ministry saw signs of improvement and expected that exports for the rest of the year will average around 13 billion dollars.
Imports also fell 32.5 percent from the same period last year to 12.2 billion dollars.
The ministry revised the 2009 export target to a fall of 10-18 percent from 15-19 percent.
Over the first seven months of 2009, Thailand had a trade surplus of 11.7 billion dollars with expons dropping 23.9 percent to 81.1 billion dollars and imports falling 34.9 percent to 69.4 billion dollars.
German producer prices mark record fall
AFP, Berlin
German producer prices, the cost of goods at the factory gate, registered their steepest drop in July since records began in 1949, official figures showed on Wednesday.
Prices were 6.6 percent lower than at the same time last year, mainly because oil prices now are so much lower than at the corresponding time in 2008.
"More than two thirds of the change in the whole index compared to July 2008 is down to price developments in energy," the statistics office said in a statement.
However, analysts said that the drop in producer prices --often a good indicator for how inflation will develop - does not necessarily presage a prolonged period of deflation for Europe's largest economy.
"We do not think that this is the start of a deflationary spiral," said Andreas Rees, an economist at Italian banking giant UniCredit.
"In coming months, it is very likely that inflation will start shrinking less markedly. From autumn 2009 onwards, yearly inflation rates should leave negative territory," he added.
China's Lenovo to spend billions on Taiwan trade trip
AFP, Taipei
Chinese computer maker Lenovo will buy about 2.7 billion dollars of electronics products from Taiwan when it joins a delegation on a trade visit to the island this week, an official said Wednesday.
The figure is more than twice the 1.2 billion dollars expected to be spent by the other members of the delegation, according to the official at the Taiwan External Trade Development Council.
It is also almost three times more than one billion dollars spent in two previous trade visits, China's trade ministry said.
It is expected that among Lenovo's order will be notebooks, flat screens and mainboards.