Global Economic News

Crisis Hits Japan as Real Estate Developer Collapses

Aug. 14 (EIRNS)—The widening financial collapse is beginning to cause major problems in Japan, the world's second-largest economy. Yesterday, Japanese property developer Urban Corp. filed for bankruptcy with 255.83 billion yen ($2.34 billion) owed. This is Japan's biggest corporate failure so far this year.

The company was unable to pay off loans with due dates in mid-August and after.

Urban was caught in the slowing market and falling prices for real estate in Japan, and the increasing wariness of the Japanese banking sector to invest in any real estate related debt.

In June, Suruga Corp., a construction company, went down with debts at 62 billion yen, and in July, condominium developer Zephry Co. failed with 95 billion yen owed.

China's Producer Price Index Rises by 10%

Aug. 11 (EIRNS)—The producer price index (PPI) for China's industrial products rose 10% year-on-year in July, the National Bureau of Statistics said today. The rise was driven by hyperinflation in imported fuel and other commodities. The year-on-year 85.8% price hike for crude oil and 60% price rise for iron ore in the international markets this year inevitably imposed greater pressure on the country's PPI.

Chinese stock markets continued their sharp drop, reaching an 18-month low today.

Saudi Nuclear Plan Gets Green Light

Aug. 13, (EIRNS)—The Saudi Arabian Cabinet has approve an agreement with the International Atomic Energy Agency (IAEA) on the protocols and application of safeguards under the Nuclear Non-Proliferation Treaty, the Saudi newspaper Arab News reported, according to the Jerusalem Post.

The Saudis established their Atomic Energy Research Institute in 1988 to conduct research for peaceful purposes. In December 2006 Saudi Arabia, together with the five other members of the Gulf Cooperation Council (GCC)—Kuwait, Qatar, Bahrain, the UAE and Oman—announced that they were setting up a commission to study the peaceful uses of nuclear energy.