Every Wednesday you will find links and top-line summaries to current events around the globe.
World’s longest sea bridge may boost South China economy [Reuters]
- A manufacturing hub churning out almost a third of China’s exports, the Pearl River Delta (PRD) has come under pressure to upgrade itself as an export and services hub after the financial crisis exposed shortcomings and low-end, labor intensive factories closed down
- With land in Guangdong, particularly the PRD, becoming increasingly scarce and costly, the 50-km (31-mile) bridge is expected to bring substantial economic benefits to Guangdong’s relatively undeveloped western reaches. With 35 km to be built over water, it will be the world’s longest sea bridge
- Expected to be completed in 2015/2016, the bridge will cost 73 billion yuan ($10.7 billion) though Hong Kong expects it to generate $HK45 billion ($5.8 billion) of economic benefits within 20 years of entering service.
With a New Phone, Google May Challenge Apple [New York Times]
- Google plans to begin selling its own smartphone early next year, company employees say, a move that could challenge Apple’s leadership in one of the fastest-growing and most important technologies in decades. The company, using the power of its brand, plans to market and sell the new phone directly to consumers over the Internet, and buyers would be able to sign up for service from any compatible provider
- The phone’s success could also depend on how Google chooses to price it. Most Americans buy phones that are subsidized by wireless carriers, which recoup that cost by locking customers into contracts. IPhones that cost consumers $199 actually cost AT&T about $550, analysts say
- Google employees said that the device, manufactured by the Taiwanese company HTC, was thinner than Apple’s iPhone, with a slightly larger touch screen. It could be available as early as January, they said. Employees say the phone will be sold unlocked, and will be based on G.S.M. technology, which is used by AT&T and T-Mobile in the United States and by most other carriers around the world. It is named Nexus One, according to various reports
Toyota to Sell Plug-In Hybrid in 2011 [New York Times]
- Toyota Motor said Monday that it planned a widespread release of its plug-in hybrid car in 2011 as the company scrambled to gain the upper hand in an increasingly crowded battle over next-generation “green” technology
- But Toyota’s rivals are surging ahead. General Motors plans to build as many as 60,000 Chevrolet Volt plug-in hybrids a year, starting in late 2010. Other automakers, including Ford and Volkswagen, have announced their own plug-in models, and Nissan plans to mass-produce a fully electric car in 2010
- Industry experts are split on just how quickly the auto industry will shift to regular hybrids and plug-ins — and ultimately to zero-emissions vehicles like pure electric or even fuel cell-powered cars. Much will depend on the price of oil, as well as emissions standards set by governments, they say. The uncertainty over the future mix of technologies is forcing carmakers to hedge their bets with various kinds of technology
Russians Buy Stake in Web Games [New York Times]
- The Russian firm that invested more than $200 million in Facebook this year is making another bet on the United States Internet industry. Digital Sky Technologies, or D.S.T., an investment firm with offices in Moscow and London, is leading a group that is buying a $180 million stake in Zynga, a fast-growing San Francisco company whose online games, like FarmVille, Café World and Mafia Wars, are extremely popular on Facebook
- As with Facebook, D.S.T. will invest directly in Zynga while also buying stock from shareholders, including the company’s employees. The move is aimed at giving employees and shareholders of the prominent start-up a way to cash out before an initial public offering
- The companies did not disclose Zynga’s valuation as a result of the new capital, but the game company’s annual revenue has been reported to be around $250 million and growing quickly. Two experts in Internet company finance said it would be reasonable for Zynga to command a valuation of two and a half to six times its annual revenue
Exxon Mobil to buy XTO Energy in big U.S. gas bet [Reuters]
- Exxon Mobil Corp plans to buy XTO Energy Inc for about $30 billion in stock, in a move that thrusts the U.S. energy giant to the forefront of North America’s fast-growing natural gas industry. With the buy, Exxon, the largest publicly traded energy company, will become the top U.S. natural gas producer as it bets on natural gas expanding its share in the world’s largest energy market
- The bid, announced on Monday, spurred expectation of a wave of consolidation in the energy industry as cash-rich companies such as Exxon move to snap up smaller players with attractive assets. “There will be more of these deals, and it will make the industry more resilient to volatility in natural gas prices,” said Fadel Gheit, an analyst at Oppenheimer & Co
- These resources have emerged as a potentially huge new resource play in North America, and their development has so far been dominated by independent U.S. exploration and production companies. But now, big oil companies like Exxon are starting to look for reserves around the world. “Natural gas is expected to be the fastest growing of the major energy sources; it’s going to grow at a substantially faster rate than oil or coal,” Rex Tillerson, Exxon’s chief executive officer
- As Goldman Thrives, Some Say an Ethos Has Faded [New York Times]
- Cocaine and rebels haunt Peru’s remote jungle [Reuters]
- Robbers steal $3.7m from bank in Pakistan [BBC]
- Big Risk in a One-Man Brand Like Tiger Woods [New York Times]
- Gang Violence Grows on an Indian Reservation [New York Times]
- Judge sets stage for Trump, Icahn casino battle [Reuters]
- China blocks Sun TV signal in content crackdown [Reuters]
- Italian protester breaks Berlusconi’s nose [Reuters]
- Billionaire, ex-president head for Chile run-off [Reuters]
Souce: The Economist
Over 80% of world trade by volume is carried on ships. Greece and Japan dominate ship owning with over 30% of the world tonnage. However, their ships rarely fly the flag of the home countries, choosing instead “flags of convenience”. Panama is the favoured country for Japan; while Greece prefers the Mediterranean islands of Malta and Cyprus; Liberia’s flag flies on many German vessels. Just 15 countries control 80% of the world’s merchant ships. And that fleet’s tonnage grew by 6% in 2008 as new ships ordered before the financial crisis hit the waves
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