Map Ta Phut progress

Temporary screening body to start soon

The government offered assurances yesterday that the suspended industrial projects at Map Ta Phut would be able to proceed by October.

Prime Minister Abhisit Vejjajiva also expressed confidence that a temporary independent organisation to screen the projects would be ready to start work this month.

Section 67 of the 2007 Constitution requires an independent to screen new industrial projects classified as potentially harmful to the environment and public health. Projects on the so-called harmful list must conduct environmental impact and heath impact assessments (EIA and HIA) and hold public hearings.

The premier made remark after the Stop Global Warming Association petitioned the Administrative Court to block the establishment of the temporary screening body, saying it was unconstitutional.

The non-governmental organisation said the temporary committee did not comply with Section 67 (2) because it would be established by using the authority of the Office of the Prime Minister. However, the court dismissed the petition.

The group was among those that successfully petitioned the Administrative Court to suspend 76 industrial ventures last September.

Mr Abhisit yesterday discussed progress on the Map Ta Phut legal impasse with officials of the Natural Resources and Environment Ministry, and the National Economic and Social Development Board (NESDB).

"Over the past months, the government has put the highest efforts into solving the problems and so far we are trying to tackle the key point, the independent body, because if we cannot establish it we cannot get investment to proceed," said Korbsak Sabhavasu, the secretary-general to the prime minister.

The temporary organisation would operate for two years or until a permanent independent organisation is set up.

Mr Korbsak said the list of harmful industries that will require EIA and HIA reports was also likely to be finalised next month. Industrialists have complained that some of those listed should be removed because they do not harm the environment of public health.

The Administrative Court last year ordered the suspension of 76 industrial projects, many belonging to large industrial companies such as the PTT Group and Siam Cement Group, because of the failure of state agencies to comply with Section 67.

Subsequent court appeals by the owners of some of the project owners have brought the number of suspended projects down to 46, including some projects that have been halted voluntarily by the decision of the companies.

Nine out of 46 projects have received court approval to complete construction. However, they would need to petition again for approval to begin operations after the construction complete.

Another 11 projects are seen as not being subject to the court orders as their EIAs were approved before the 2007 Constitution took effect. Therefore, the government and the Industrial Estate Authority of Thailand allowed them to go ahead without seeking court permission.

The remaining 26 projects are still seeking ways to present evidence to support their petitions to continue.

Stocks slide as new home sales fall

NEW YORK — Signs of a weaker housing market gave stock investors another reason to be cautious.

Stocks fell Wednesday after the Commerce Department said new home sales dropped for the first time in five months. Sales slid 3.6 percent in September to 402,000 from 417,000 in August, well below the 440,000 analysts had forecast.

Investors also pulled back after Goldman Sachs Group Inc. reduced its expectation for the nation's economic output for the July-September period. Goldman Sachs expects third-quarter gross domestic product rose at an annual rate of 2.7 percent, weaker than its earlier forecast of 3 percent.

The government's report on third-quarter GDP is due Thursday morning.

Analysts said the market's slide in the past week isn't surprising given the size of the advance in the past eight months and only mixed economic readings.

"I'm not panicked at the moment," said Manny Weintraub, president of Integre Advisors in New York. "I don't think anyone expected a super robust recovery."

In midafternoon trading, the Dow Jones industrial average fell 67.34, or 0.7 percent, to 9,814.83.

The broader Standard & Poor's 500 index fell for the fourth straight day, sliding 13.88, or 1.3 percent, to 1,049.53. The Nasdaq composite index fell 40.40, or 1.9 percent, to 2,075.69.

In another sign of lingering troubles in the financial industry, GMAC Financial Services is in talks with the Treasury Department for a third bailout. The auto and mortgage lender has been among the hardest hit financial firms by rising loan defaults and troubled credit markets. The government already holds a 35 percent stake in GMAC after giving it $12.5 billion in bailout money.

Stocks struggled Tuesday after a disappointing report on consumer confidence stirred worries about the strength of the coming holiday shopping period. Corporate profits have been improving but investors are still waiting for a rebound in sales.

Stocks have been falling most days since hitting their highest levels in a year at the start of last week. A strengthening dollar and falling commodities prices have at times weighed on stocks.

The dollar rose against most other major currencies, while gold prices fell.

Bond prices rose as investors sought safety from a falling stock market. That sent yields lower. The yield on the benchmark 10-year Treasury note fell to 3.41 percent from 3.45 percent late Tuesday.

Crude oil fell $2.08 to $77.47 per barrel on the New York Mercantile Exchange. The drop in oil weighed on shares of energy companies.

Oilfield services company Schlumberger Ltd. fell $2.05, or 3.2 percent, to $62.88.

Home builders fell after the report on new home sales. Hovnanian Enterprises Inc. slid 37 cents, or 8.6 percent, to $3.93. Toll Brothers Inc. fell 66 cents, or 3.7 percent, to $17.28.

The drop in new home sales follows a report from the National Association of Realtors last week that sales of existing home sales posted the biggest increase in 26 years in September as investors tried to get ahead of an expiring tax credit for first-time buyers. New home sales make up a smaller part of overall sales than sales of existing homes.

Earnings reports also touched off some worries. Goodyear Tire & Rubber Co.'s profit more than doubled in the third quarter as it cut costs and added products, but the company also said it expects operating income will fall in North America in the fourth quarter. The stock fell $3.41, or 20.4 percent, to $13.33.

Drug distributor McKesson Corp. fell $1.57, or 2.6 percent, to $58.05 after the company's fiscal second-quarter earnings fell short of analysts' expectations.

Apollo Group Inc., parent of the University of Phoenix, fell after the for-profit higher education company said the Securities and Exchange Commission had launched an informal inquiry into how it accounts for revenue. The stock fell $12.93, or 17.7 percent, to $60.04.

Five stocks fell for every one that rose on the New York Stock Exchange, where volume came to 975.7 million shares compared with 814.4 million shares traded at the same point Tuesday.

The Russell 2000 index of smaller companies fell 13.28, or 2.3 percent, to 573.71.

Overseas, Britain's FTSE 100 fell 2.3 percent, Germany's DAX index fell 2.5 percent, and France's CAC-40 slid 2.1 percent. Japan's Nikkei stock average fell 1.4 percent.

Copyright © 2009 The Associated Press. All rights reserved.

UPDATE: US Airways to Cut 1,000 Jobs, Focus On Hub Cities

DOW JONES NEWSWIRES

US Airways Group Inc. (LCC) will trim 1,000 jobs, or about 3.1% of its total work force and cut flights, focusing on hub cities where it stands to make a profit.

The company said Wednesday it would concentrate on four hubs - Charlotte, N.C., Philadelphia, Phoenix and the District of Columbia, as well as its hourly shuttle service between New York's LaGuardia Airport, Boston and Washington's Ronald Reagan airport.

"By focusing on our strengths and eliminating unprofitable flying we will increase the likelihood of returning US Airways to long-term profitability," Chairman and Chief Executive Doug Parker said in a statement.

The move comes after AMR Corp.'s (AMR) American Airlines said in September that it would change its route network to focus on four key hubs - Dallas/Ft. Worth, Chicago, Miami and New York - while trimming routes to smaller cities. Overall, the airline plans to increase seat capacity by just 1% in 2010.

US Airways, the result of a 2005 merger of American West Airlines and the former US Airways, said it would reduce the number of flights to Las Vegas to 36 from 64 daily departures as a result of increasing fuel prices and weak demand. It also said it would end flights at Colorado Springs, Colo., and Wichita, Kan.

Other changes announced Wednesday include the suspension of five European routes: to London Gatwick; Birmingham, England; Milan, Italy; Shannon, Ireland; and Stockholm, Sweden, from US Airways' international gateway in Philadelphia. It will also give up its right to fly between Philadelphia and Beijing.

As a result of these changes, US airways will initiate systemwide job cuts during the first half of 2010. The reductions include about 600 airport passenger and ramp service jobs and about 200 pilots and about 150 flight attendants, with the shut-down of crew bases in Las Vegas and LaGuarida.

Airlines around the world have suffered from weak passenger demand, especially for business travel, and on international routes. But the declines appear to be stabilizing at many carriers, and last week, US Airways reported that its third-quarter loss narrowed. One bright spot for U.S. Airways and other carriers has been their ability to add new revenue from such things as checked bags and onboard meals, even though fare prices remain low.

Airlines have also been raising cash in recent months to bolster their balance sheets.

-By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com

Ann Keeton contributed to this article

Madoff Trustee Advances $534 Million to Customers (Update3)

By Erik Larson

Oct. 28 (Bloomberg) -- The liquidator for Bernard Madoff’s firm approved initial repayments of $534.2 million to 1,558 victims who invested directly with the con man’s firm. Another 1,303 victims had their claims denied.

The payments are advances on the group’s allowed claims of $4.43 billion, trustee Irving Picard said today in a conference call. Verified losses from the fraud now exceed $21 billion, he said.

“We have made significant headway in recent months in processing customer claims in challenging circumstances,” said Picard, hired by the Securities Investor Protection Corp. to wind down Bernard L. Madoff Investment Securities LLC. “We are handling these claims as expeditiously as possible.”

About 16,000 have been filed since Madoff’s Dec. 11 arrest for running a $65 billion Ponzi scheme, Picard said. The sum includes more than 11,000 indirect claims from investors whose money went to Madoff through third-party entities, such as hedge funds.

Picard’s team has recovered about $1.4 billion in assets to repay victims, and filed so-called clawback lawsuits seeking the return of about $15 billion in fake profit from Madoff’s biggest investors and beneficiaries. More suits will be filed, he said. Victims with allowed claims will receive a share of the money Picard recovers.

$21.2 Billion Loss

Picard’s method for calculating claims, using cash deposits minus withdrawals, triggered objections in U.S. Bankruptcy Court in New York. Many victims want years’ worth of fake profit included in their claims. A judge will decide if his methodology is correct at a hearing scheduled for Feb. 2.

Madoff’s fraud resulted in an actual loss of $21.2 billion for 2,335 accounts, Picard said. The previous number of about $13 billion came from records in the criminal case in June and applied to fewer accounts, he said. The figure could rise as more data is uncovered.

Over the life of Madoff’s New York-based company, there were about 8,000 accounts, of which about 4,900 were active when the fraud collapsed, Picard said. More than 2,500 customers took more money than they deposited and may be sued, he said.

Review Accounts

“Over the next six to nine months, we’re going to be taking a very close look at those accounts on an individual basis,” Picard said. “We’re not going to be suing people who don’t have money.”

Picard’s team had reviewed claims as far back as 1983, and plans to review accounts from the 1970s by analyzing Madoff records on microfilm and microfiche, he said.

Madoff, 71, pleaded guilty to the fraud and is serving a 150-year sentence.

The bankruptcy case is already bigger than all 321 SIPC liquidations performed since 1970, when Congress passed the law that creating the entity, SIPC President Stephen Harbeck said. SIPC is funded by the brokerage industry.

The case is Securities Investor Protection Corp. v. Bernard L. Madoff Investment Securities LLC, 08-01789, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

Boeing Posts Wider Loss

CHICAGO (Reuters) - Boeing on Wednesday posted a larger-than-expected quarterly loss on costs related to its long-delayed 787 Dreamliner program, but the world's second-largest planemaker reaffirmed that the aircraft is on track to fly this year.

The loss, combined with a lowered 2009 earnings outlook, sent shares down in early trading, although most of the details in the earnings statement had been previously publicized.

"The surprise was they reiterated the (787) schedule," said Alex Hamilton, senior managing director at Jesup & Lamont.

"I always look at these as opportunities to kind of reset the bar," Hamilton said. "I think there's a lot of scepticism growing on the street about their delivery schedule."

Chicago-based Boeing and rival Airbus have been hit hard this year as carriers and cargo operators grapple with the global recession and credit crisis. Meanwhile, Boeing's defence unit struggles with sweeping government budget cuts.

Boeing said its revenue was $16.7 billion (10 billion pounds), up 9 percent from the year-ago period, which was impacted by a labour strike, but still far short of $17.16 billion that analysts had expected, according to Thomson Reuters I/B/E/S.

"There is no doubt that both our commercial and defence businesses continue to face challenging times right now," Boeing Chief Executive Jim McNerney said on a conference call with analysts and reporters.

Shares of Boeing, a Dow component, were down 1.18 percent at $51.28 at midday on the New York Stock Exchange.

DREAMLINER ON TRACK

Boeing has grappled this year with delays to the Dreamliner program. The Dreamliner is Boeing's upcoming aircraft that features revolutionary composite materials and construction methods. The plane is two years behind schedule, and some industry watchers say it could be delayed further.

Boeing said on Wednesday the plane would fly this year with first delivery set for the fourth quarter of 2010. The company has a record 840 firm orders for Dreamliners from 55 customers.

The company previously said it would reclassify to research and development costs incurred through July for the first three 787 flight-test planes. Those costs amounted to $2.46 per share. Boeing reported an additional cost of 14 cents per share related to spending on those planes for August and September.

Earlier this month, Boeing said it would delay the first flight and delivery of its 747-8 Freighter and take a 99-cent-per-share third-quarter charge because of high production costs and tough market conditions.

To reflect the 787 and 747 impacts, earnings guidance for 2009 has been changed to a range of $1.35 to $1.55 per share, from $4.70 to $5.00 previously.

"The 787 cost reclassification and the 747 charge for increased costs and difficult market conditions clearly overshadowed what continues to be otherwise solid performance across our commercial production programs and defence business," McNerney said in a statement.

"We look forward to getting the 787 and 747-8 in the air soon and moving forward with flight test and certification for these two important programs," he said.

THE NUMBERS

Boeing said its net loss was $1.6 billion, or $2.23 per share, compared with a profit of $695 million, or 96 cents per share, a year earlier.

Excluding a loss from discontinuing operations, Boeing's quarterly loss was $2.22 per share, compared with analysts' estimates for a loss of $2.12 per share, according to Thomson Reuters I/B/E/S.

Boeing Commercial Airplanes posted a loss from operations of $2.8 billion. A year ago the unit posted earnings of $394 million. Revenue for the division increased 13 percent to $7.9 billion on higher deliveries.

The division booked 96 gross orders during the quarter, while 17 orders were cancelled. Its backlog was $254 billion.

Boeing's Integrated Defence Systems' earnings from operations were $885 million. Third-quarter revenue was up 3 percent to $8.7 billion on increased military aircraft deliveries.

(Reporting by Kyle Peterson; editing by John Wallace, Dave Zimmerman and Gunna Dickson)

Fed says economy perked up from depressed levels

By Emily Kaiser

WASHINGTON (Reuters) - U.S. economic conditions stabilized or improved modestly in most parts of the country, according to a Federal Reserve report on Wednesday that suggested the economy was slowly clawing out of a recession.

In its "Beige Book" of anecdotal reports on the economy, which was prepared at the Federal Reserve Bank of Richmond based on information collected before October 13, the Fed noted improvement in two of the hardest hit areas -- residential real estate and manufacturing.

"Reports from the 12 Federal Reserve districts indicated either stabilization or modest improvements in many sectors since the last report, albeit often from depressed levels," the Fed said. "Reports of gains in economic activity generally outnumber declines, but virtually every reference to improvement was qualified as either small or scattered."

U.S. stocks stayed at higher levels after the report was released, while prices for government debt remained lower, as did the U.S. dollar.

The central bank gave a grim assessment of commercial real estate, which is widely seen as one of the big remaining trouble spots for the still-struggling financial sector.

"The weakest sector was commercial real estate, with conditions described as either weak or deteriorating across all districts," the Fed said.

A number of the regional Fed banks said businesses in their area did not expect commercial real estate to improve much, if at all in, in 2010.

"Tenants are demanding significant concessions -- including space improvements and one- to two-year leasing commitments -- along with low rental rates," the Boston Fed reported.

THOSE WALL STREET BONUSES

Labor markets were typically characterized as weak or mixed, although there were "occasional pockets of improvement." That assessment supported the view that the worst of the job losses are over, but it may be a while before growth resumes.

The Atlanta Fed said many employers "indicated that they were holding on to the most skilled workers, but have reduced overall hours. They feel that a sustained increase in orders and sales is a prerequisite to adding to payrolls."

Despite all the recent talk about huge bonuses at Wall Street firms, the New York Fed heard from one of its contacts that times were getting tougher for top-tier bankers.

"Compensation -- especially cash compensation -- has reportedly fallen sharply, and is expected to fall further during the remainder of the year and into 2010, most notably for the top earners in the industry," the New York Fed said.

The report said the "cash for clunkers" auto sales incentive program left depleted inventories and slower sales in its wake. Overall spending remained weak in most districts, although "some improvements" were noted.

In residential real estate, which was at the heart of the credit crisis that sparked the recession, the government's $8,000 first-time homebuyers' tax credit helped to lift sales of low- to middle-priced houses, the Fed said. However, residential construction activity remained weak in most districts.

Climate cooperation to help ties, Hu tells Obama

By Emma Graham-Harrison

BEIJING (Reuters) - Chinese President Hu Jintao has told his U.S. counterpart Barack Obama that closer cooperation on fighting climate change could help improve overall ties between the world's top two greenhouse gas polluters.

Hu also said he was optimistic about U.N.-led talks on a new global framework to tackle climate change, even though the latest round of negotiations ran into trouble.

"Developing cooperation between the two sides on climate change issues would not only benefit the international community in its efforts to tackle climate change, but also have great significance for promoting the development of China-U.S. ties," the official Xinhua news agency quoted Hu as saying.

The leaders spoke by telephone on Wednesday morning Beijing time. Hu said "the two sides face common challenges in the field of climate change, and shared common interests."

Obama is due to make his first presidential visit to China next month, when he will also attend the APEC regional summit in Singapore and visit Japan and South Korea.

Officials have touted climate change as an area where both sides have much to gain from working together and much to lose if they cannot reach a deal to limit the production of gases that scientists say are warming the atmosphere.

Beijing and Washington also face contention over trade, military plans, and human rights -- all issues likely to be discussed when Hu sits down with Obama in Beijing.

OVERALL TALKS COULD HELP PRODUCE CLIMATE AGREEMENT

But potential give-and-take across these issues may also help create room for some agreement on climate change, said Wang Ke, an expert on global warming at Beijing's Renmin University.

"China may be able to make more concessions over climate change if it feels it's gaining more in other areas of the relationship, such as trade," Wang told Reuters.

"Balancing across a whole range of issues may be easier than trying for a one-dimensional agreement on climate change."

China and the United States together account for about 40 percent of the world's greenhouse gas emissions, but China's average emissions per person are much lower.

In 2008, fast-growing China's emissions of carbon dioxide reached 6.8 billion tonnes, an increase of 178 percent over 1990 levels, according to the IWR, a German energy institute. U.S. emissions rose 17 percent to 6.4 billion tonnes.

Chinese scientists say higher global temperatures will cause more flooding in the south, droughts in the north and smaller harvests.

But despite growing concern among politicians and the public of many countries, U.N. climate talks on expanding the fight against global warming have largely stalled, making the outcome of a climate summit in Copenhagen in December uncertain. Continued...

Recovery likely to spur SBL demand

Writer: NUNTAWUN POLKUAMDEE

Newspaper section: Business

KGI Securities expects a jump in demand for securities borrowing and lending (SBL) activity over the next few months as the equities market continues to grow with the economic recovery.

Naruemol: Profit-taking after recent gains could bring opportunities for short-selling.

Naruemol Artamnuayvipas, KGI's executive vice-president for equity derivatives, said total short-selling volume as of June was 20.15 billion baht in the local market.

KGI, the local market leader for SBL services, had outstanding borrowings of 12 billion baht as of June, or 60% of the market. The brokerage expects volume to reach 25 billion to 30 billion baht for the full year.

Ms Naruemol said the company currently had 411 SBL accounts, up from 353 at the end of June. Local institutional lenders total 54, up 33% from June, while local institutional borrowers total 38 accounts, up 19%.

Individual accounts comprise the bulk of KGI's client base for SBL transactions at 301 accounts, up 14% from the end of June, of which 80 to 100 accounts are considered active.

KGI offers SBL services for 52 stocks, representing constituents of the SET50 index and for two exchange-traded funds: Thaidex SET50 ETF and the Mtrack Energy ETF.

PTT Plc, the largest stock on the SET by market capitalisation, was also the most active stock for borrowing at 3.84 billion baht in the first half, followed by PTT Exploration and Production (3.19 billion), PTT Aromatics (1.85 billion), Siam Commercial Bank (1.14 billion) and Banpu (1.07 billion).

In an SBL transaction, an investor holding a stock may agree to lend his holdings for a set period in exchange for a fee. A borrower can sell the shares in anticipation of further declines in share prices.

If share prices are lower when the borrower repurchases the stock, the investor reaps a capital gain. But if the market price is higher compared to when he sold the borrowed shares, the investor will book a loss, in addition to the borrowing cost of the shares themselves.

SBL services are likely to become even more popular over the next few months with the growing activity in the equities market, Ms Naruemol said.

"The SET index has already gained 56% for the year, and the index is now at a 13-month high. So there should be some profit-taking and a correction in the short-term, which will open opportunities for short-selling," she said.

KGI typically does not hold stock for SBL activities, but instead co-ordinates between lenders and borrowers to match transactions.

Lenders are typically mutual funds, provident funds, institutional investors and insurance companies, while borrowers vary between local individual investors as well as local and foreign institutions.

Foreign investors typically borrow for periods of around one month, while local institutions may take a two-week position while individual investors may borrow for just one week.

"SBL will become more popular in the future, as investors can use the service to short-sell or arbitrage among stocks TDEX, the SET50 index and SET50 index futures," Ms Naruemol said.

In Hong Kong, she noted, SBL activity accounts for as much as 40% of total trade on the equities market.

Continental Tyres sets up B200m office

Newspaper section: Motoring

The new 200-million-baht Continental Tyres (Thailand) office consolidates the company's operational focus in Southeast Asia, say company executives. ''It was only natural that Continental Tyres would seek to strengthen its position in Thailand, given the kingdom's strategic importance and status as an important regional hub of automotive manufacturing,'' said Benoit Henry, vice-president for the marketing and sales business unit for replacement tyres in Asia-Pacific.

Celebrating the opening of the new Thai office, from left: Wiroj Wachiradechkul, CTT country manager; Benoit Henry, vice-president for marketing and sales, replacement tyres for Asia- Pacific; and Peter Hofmann, director of marketing, replacement tyres for Asia-Pacific.

‘‘It was only natural that Continental Tyres would seek to strengthen its position in Thailand, given the kingdom’s strategic importance and status as an important regional hub of automotive manufacturing,’’ said Benoit Henry, vicepresident for the marketing and sales business unit for replacement tyres in Asia-Pacific.

Continental, which claims to be the world's fourth-largest tyre manufacturer, has gained a foothold in the Thai tyre market through a multi-brand strategy covering the aftermarket in the mass market and in European passenger cars, commercial vehicles, off-road vehicles and pickup trucks.

Its flagship products based on German technology include ComfortContact1, SportContact1, ContiPremiumContact2 and ContiCrossXContact AT.

CTT country manager Wiroj Wachiradechkul will spearhead the Thai unit in enhancing and streamlining distribution, marketing and competitiveness through the dealership network.

''Our Thai office [Olympia Thai Tower on Ratchadaphisek Road, Huai Khwang] will bring us closer to our customers and enable us to better respond to their specific, localised needs,'' he said. ''Our image will be further enhanced through ... sponsorship of the 2010 World Cup in South Africa.''

Continental's two divisions _ Passenger and Light Truck Tyres (PLT) and Commercial Vehicle Tyres (CLT) _ have plants in Petaling Jaya and Alor Seta in Malaysia for Asia-Pacific markets.

Continental will penetrate markets by establishing business relationships, staying close to its customers and delivering innovations employing German engineering, which accounts for a large share of the original equipment manufacturer (OEM) market for high-performance vehicles, said Mr Wiroj.

Continental Tyres is an affiliate of Continental Corporation, which had sales of more than 24 billion last year as a top supplier of automotive brake systems, powertrains and chassis, instrumentation, vehicle electronics, entertainment systems and tyres.

Mitsubishi launches flexible-fuel Lancer

Writer: SANTAN SANTIVIMOLNAT

Newspaper section: Business

Mitsubishi Motors Thailand yesterday launched its flexible-fuel vehicle (FFV), the first mass-production car in the Thai market that can run on all types of gasoline up to E85 fuel.

Nobuyuki Murahashi, president of Mitsubishi Motors Thailand, shows off the new Lancer EX, which comes with a 1.8-litre engine compatible with fuel up to E85. The 2.0-litre engine can run on E20. WISIT THAMNGERN

The FFV is part of the debut of the all-new Lancer EX, the ninth generation of the Lancer model which comes with a 1.8-litre engine compatible with fuel up to E85 and a 2.0-litre engine that can run on E20.

The Lancer EX offers four variants to meet customers' needs and lifestyles, with the retail price starting at 831,000 baht for the 1.8-litre engine model and 1.034 million baht for the 2.0-litre engine.

Pre-sale bookings will be taken starting today at Mitsubishi Motors' 129 dealerships nationwide while official sales will begin one month later.

The existing Lancer with a 1.6-litre gasoline engine remains on the market after the revised Lancer has been launched but with reduced retail prices, starting from 592,000 baht to compete directly with the subcompact or B-car segment such as Toyota Vios and Yaris and Honda City and Jazz.

The new generation's powertrain uses a new 1.8-litre and 2.0-litre aluminium block engine, which meets the EU emission standard step 4 (Euro 4).

Mitsubishi has developed the FFV engine for the Lancer EX by improving all parts susceptible to corrosion by all types of gasohol. Parts such as fuel tanks, valves, valve seats, pumps, delivery pipes and injectors are made of metal, rubber and plastic. The electronic control unit adjusts the amounts of fuel injected and the ignition spark timing automatically to provide the best performance regardless of what fuel types are used.

"I am very confident that Lancer EX which is rich in ingenuity and loaded with new technologies will satisfy the needs and aspirations of sedan drivers," said Nobuyuki Murahashi, the president of Mitsubishi Motors Thailand.

Businessmen call off Asean forum

Political instability a major concern

Writer: NAREERAT WIRIYAPONG

Published: 21/09/2009 at 12:00 AM

Newspaper section: Business

Southeast Asian business leaders have cancelled their annual meeting set to take place in Thailand this year, citing the country's prolonged political strife and rising tension at the border between Thailand and Cambodia.

The Asean Business Advisory Council was scheduled to meet in Bangkok a few days ahead of the Asean Summit in Hua Hin late next month but its members recently decided not to hold the forum this year, said the council's chairman, Arin Jira.

The meeting was expected to draw about 500 leading executives from Asean members and trading partners to discuss economic prospects, update investment opportunities, and provide recommendations to governments on policies to integrate the regional economy, he said.

The political situation in Thailand has yet to stabilise and growing conflicts have triggered many uncertainties, said Mr Arin.

"Business leaders, therefore, had to rethink whether to come to Thailand because they are not certain about our capability to host the annual meeting," he said.

At the same time, the border dispute between Thailand and Cambodia also prompted the Thai government to decide this might be not the right time to hold the meeting, he added.

The Asean summit was postponed after anti-government red-shirt protesters broke into the summit venue in Pattaya in April. The Thai government then decided to switch the October summit venue from Phuket to Hua Hin for security reasons.

Mr Arin said that Vietnam, due to chair Asean after Thailand, would host the next Asean business council meeting late next year.

There would definitely be lost opportunities in terms of trade and investment talks from Thailand failing to hold this meeting, he said. Networking among Asean business leaders is also a key objective of the forum, he added.

While the economies of Asean members such as Indonesia are picking up and the global economy has stabilised, Thailand might miss the opportunity because of its unstable politics, he said.

Progress has not been made on Asean business leaders' proposals such as establishing Asean brands, forming an Asean joint-venture company to raise bargaining power in major agricultural products or setting up a credit financing scheme for small and medium-sized enterprises (SMEs), he said.

As the global economy remains fragile, offering financial assistance to SMEs is the most critical measure for the government to push forward, he said. In his view, all Asean leaders are aware of this issue. Asean aims to create the Asean Economic Community (AEC) six years from now but has made little progress on integration, he added.

UPDATE 3-Bank of China sees loan rate slowing in H2

* Q2 net profit 22.55 bln yuan, beating forecasts

* Interest margin narrows to 2.04 pct from 2.72 pct yr ago

* Bank upbeat on China's economy

(Adds comments from media briefing)

By Michael Wei and Clare Jim

BEIJING/HONG KONG, Aug 27 (Reuters) - Bank of China (3988.HK), the country's biggest foreign-exchange lender, expects to scale back lending in the coming months as Beijing moves to stem a break-neck increase in liquidity fuelled by a massive economic stimulus programme.

Bank of China (601988.SS) President Li Lihui said the pace of lending was likely to be slowed in the second half of the year "by a relatively big amount," after a surge in loans helped second-quarter earnings beat analysts' forecasts.

He added demand for credit was likely to be lower in the second half, and that his bank's loan growth for all of 2009 was expected to beat the industry average.

Li's comments came as further evidence that lending growth could slow sharply after hitting a record 7.4 trillion yuan ($1.08 trillion) in the first half, potentially adding to worries about the strength of China's economic recovery.

A likely end to an unprecedented lending surge that sustained the world's third-largest economy in the first half of the year may slow income growth at banks but will also reduce the level of bad-loan accumulation.

RAISING CAPITAL

Li said that his bank was also studying plans to raise capital, including potentially issuing subordinated bonds.

"We will study all options in the plan in a balanced way to decide the fund-raising channel which will be in the best interest of the Bank of China," Li said.

Despite the cautious note on loans, Bank of China on Thursday sounded an upbeat note on prospects for China's economy through to the end of the year.

"As China's economy is currently experiencing a critical period of stabilisation and recovery. The government will continue with its macroeconomic policies of maintaining a proactive fiscal and moderately relaxed monetary policy with a view to building up the economic base for further recovery," it said in a statement. Continued...

Decline in air traffic slowed in July: IATA But ticket prices continue to drop on aggressive promotions

LONDON (MarketWatch) -- The decline in global airline traffic slowed in July, but ticket prices showed no improvement despite capacity cuts, leading a global industry body to caution that the recovery will be both "slow and volatile."

Scheduled passenger traffic fell 2.9% in July from a year earlier, the International Air Transport Association said Thursday. It was an improvement over the 7.2% drop recorded in June and the 6.8% decline seen over the first seven months of the year.

Fares, however, continued to fall, despite airlines having greatly reduced capacity in the past few months in an effort to protect their load factors and profitability.

"Demand may look better, but the bottom line has not improved. We have seen little change to the unprecedented fall in yields and revenues," IATA Chief Executive Giovanni Bisignani said in a statement.

He cautioned that the months ahead were uncertain, in particular the price of oil, which has been creeping back up along with the first signs of a global economic recovery.

Bisignani, who said the industry remains "in intensive care," still expects any recovery to be "both slow and volatile".

The comments may dampen the optimism of investors recently cheered by statements from British Airways /quotes/comstock/23s!a:bay (UK:BAY 188.40, -3.30, -1.72%) and Air France-KLM /quotes/comstock/23r!paf (FR:AF 10.85, -0.01, -0.05%) two of Europe's largest airline, suggesting demand had recovered a bit over the summer.

Looking at individual regions, July traffic fell roughly 3% in both North America and Western Europe, but IATA warned the improvement was more the result of "deep discounting" than stronger incomes or greater economic confidence.

In the Asia Pacific region passenger traffic dropped 7.6% in July, which was still a notable improvement from the 14.5% collapse witnessed in June. The recovery was helped by the return of economic growth to a larger extent than anywhere else in the world.

In Latin America traffic fell 3.5%. The Middle East remained the only region to show growth with a 13.2% increase.

The global freight market, meanwhile, fell 11.3% in July, an improvement from the 16.5% drop in June. All regions showed an improvement except Africa, as companies started replenishing their inventories.

"Once inventories are at desired levels in relation to sales, improvements in demand will level off until business and consumer confidence returns," Bisignani warned.

Aude Lagorce is a senior correspondent for MarketWatch in London.

TiVo CEO: Must Stop Unauthorized Use Of Intellectual Property

NEW YORK -(Dow Jones)- TiVo Inc. (TIVO) needs to move quickly to stop the unauthorized use of its intellectual property, according to Chief Executive Tom Rogers.

TiVo earlier Wednesday said it had filed a patent lawsuit against AT&T Inc. ( T) and Verizon Communications Inc. (VZ) for their use of digital video recorders and TV "time-warping" technology.

Rogers told analysts during a conference call Wednesday that TiVo had attempted to strike deals with the telecommunications providers.

It is a similar lawsuit to the one TiVo filed against Dish Network Corp. ( DISH) and EchoStar Corp. (SATS). TiVo continues to deal with an appeal from those companies in a Texas federal court. Rogers said confidence is high on the prospects of the appeal, allowing him to feel comfortable enough to launch another legal attack.

While EchoStar and Dish trumpeted a minor victory in a similar case in the U.S. Patent and Trademark Office earlier Wednesday, Rogers said the company hasn't yet presented its information and believes that it will ultimately prevail.

The U.S. Patent and Trademark Office case shouldn't affect the other appeals hearing, he said.

As a result of the new lawsuits, Chief Financial Officer Anna Brunelle said she expects higher legal costs.

-By Roger Cheng, Dow Jones Newswires; 212-416-2153; roger.cheng@dowjones.com

  (END) Dow Jones Newswires
 08-26-09 1806ET
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