Issue 27 | August 17, 2012

Chinese developers reap profits after price cuts Major Chinese developer Vanke Co. has reported that its first-half profit increased 25 percent. Despite controls the Chinese government has implemented to stabilize the real estate market, the company has cut prices to boost sales and has seen results: net income increased to 3.73 yuan ($585 million) and revenue grew 54 percent to 30.72 billion yuan. Vanke's contracted sales are reported to increase this year due to more projects aimed to be sold in the fourth quarter. Vanke has also announced that it is buying a 74 percent stake in Hong Kong-traded Windsor Properties Holdings Ltd. with hopes for increasing global expansion. Read more.  


Indonesia's economy expanding faster than predicted Indonesia's economy, the largest in Southeast Asia, has been experiencing rapid expansion as seen in the second quarter of this year. The country's gross domestic product has increased 6.4 percent from last year due to an increase in domestic consumption and investment. Currently, the fastest-growing sectors are in trade, hotels and restaurants. In the first quarter, transportation and communications were the fastest-growing sectors. Indonesians are demanding more imported goods; their growing demand for imports such as wheat, smart phones and luxury cars has created a $1.3 billion trade deficit. Read more.

Sudan and South Sudan come to an agreement on oil disputes  The negotiations teams from Sudan and South Sudan have come to an agreement on oil exports going though Sudan's port and pipelines in the north. Since South Sudan's halt of oil production in January, Sudan's economy has suffered a hit on its oil wealth. The disputes began after Sudan confiscated $815 million worth of crude oil to make up for unpaid fees. The agreement covers how much South Sudan will have to pay to use those facilities, and it is said that territorial disputes are to be discussed in the upcoming days. Read more.
Supporting U.S. jobs through Australian projects
Ex-Im Bank President Fred Hochberg revealed the agency's plans to lend $2 billion towards projects in Australia by the end of the year. Primarily, this transaction is aimed to support President Barack Obama's plan to double exports within five years. The transaction is expected to support 11,000 American jobs through the export of U.S. equipment and services for the development of the project. Read more.
South American farmers will increase the planting of crops to support global demand
The drought in South America began earlier this year, and it appears to be the worst drought seen in the region for 25 years. Due to the drought, prices of grain and corn have increased globally; in just the month of July corn prices rose by 40 percent. Although it is inevitable to face the high prices of grain and corn, South American farmers will have to increase their crop planting area to support the demand for grain importing countries such as China. As for corn, South American farmers from Brazil are staying hopeful and are preparing themselves for next crops growing seasons to increase the export volume. Read more.
France requests South Korea to give a warning of any car exports
Since the EU-South Korea free trade agreement (FTA) was introduced in 2011, French carmakers have struggled to come on top because of the rising competition. Last year alone, sales of South Korean cars rose by 24 percent. Although this trade agreement serves as a model for future trade deals, French officials have requested an advance warning from South Korea of any export
s of car units they plan to ship to the European Union. EU. Trade Commissioner Karel De Gucht emphasized that although France wants to try to restrict duties to the FTA, the trade with South Korea benefits Europe overall. Read more.
Compiled by Brittany Garcia, Ashley Arikawa and Galaxy Kaji, Global Initiatives Interns

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