ment backtracked on its deci-
The Economist January 7th 20126 The world this week
Hoeing's decision to close its
sion to open Indian retailing to
already surpassed Las Vegas asBusiness83-year-old factory in Wichita,
foreign competition, following
the gambling capital of the
For the first time in its 13-year
Kansas, caused dismay among
a political backlash, raising
world. A recent report from
existence the European Cen-
local politicians, who accused
questions about whether India
PWC forecast that Asia will
tral Bank chose a non-Ger-
the company of reneging on a
is open for business.
soon overtake the United
man to head its economics
promise to keep the plant open
New year' s resolution
States as the biggest casino
division. Peter Praet is Belgian
after it won a contentious
Spain's new centre-right gov-
market, generating revenue of
(though he was born in Ger-
contract to build new air-force
ernment predicted that the
$79.3 billion in 2015.
many). He takes over the role
tankers. Boeing used to em-
country's budget deficit for
Anotherturbulentyearahead?
of preparing policies on in-
ploy 40,000 people at the
2011 would probably reach 8%I Stockmarketsterest rates and other areas
Wichita facility, which works
of GDP, higher than many%change Jan 1st-D ec 30th 201 1from]iirgen Stark, who
on defence contracts, but last
analysts were expecting and
Dow Jones
3020 10 - 0 + 10stepped down as the ECB's
year it warned of "limited
above the target of 6% agreed
S& P 500
* Euroarea
chief economist in December.
prospects for future work".
with the European Union. At
FTSE 100
It is widely believed that MrYahoo! appointed a new chief
8%, Spain's deficit would be
DJ STOXX so
Stark, in line with other Ger-executive, poaching Scott
the third-biggest in the EU,
Nikkei 225
man officials, did not supportThompson from Pay Pal to fillbehind those of Greece andShanghai A i ndexthe central bank's contro-the position. Last SeptemberIreland. The new SpanishBom bay SEversial policy of buying upYahoo! sacked Carol Bartzgovernment has embarked onSource: Thomson Reutersbonds from distressed euro-from the job after she failed to
an emergency programme of
Stockmarkets started the year
zone economies.revive the internet firm's sag-
spending cuts and tax rises.
on a positive note, buoyed byShining a little light
ging fortunes.
Inflation in the euro zone fellstrong manufacturing dataThe Federal Reserve said itFiat increased its stake into 2.8% in December, the firstfrom America, Britain andwould soon start publishingChrysler to 58.5%, after itfall in five months and anotherChina. Investors will be hop-detailed forecasts on interestcompleted a task set by theconsideration for the ECB as iting that 2012 proves kind errates. Until now the FederalAmerican government to helpmulls further cuts to interestthan last year, when mostOpen Market Committee hasChrysler develop a car thatrates.markets fell. It was no surprisegiven generally rough guid-gets 40 miles to the us gallon
Foreign energy companies
that the euro area's benchmarkance about which direction(the average fuel efficiency of
offered further evidence of
index fared badly in 2011,rates are likely to take, but frompassenger cars in America is
their huge appetite for Ameri-
though the once-hot stock-this month the specific projec-currently around 34mpg). Fiat
can shale gas. Total, based in
markets of Brazil, Hong Kong,tions from each of the FaMe'shas now achieved that with
France, announced that it
China and India did evenmembers will be made avail-the Dodge Dart, which it will
would pay $2.3 billion for a
worse. One of the world's bestable. It is a big move towardsassemble in America.
25% stake in a shale-gas ven-
performers, oddly enough,greater transparency, though
New figures showed that
ture in Ohio. China's Sinopec
was Venezuela's main index.some argue it could cause
Macau's revenue from casino
is to invest a similar amount inOther economic data and news
confusion if the rate forecasts
gambling rose by 42% last year,
various shale projects.can be found on pages 80-81
are interpreted as monetary-
to $33.5 billion. Macau has
~
policy interventions.
PhRPHllAL
The Swiss National Bank
MOTION
published its internal regu-
MACHINE
lations on staff transactions totry to dampen allegationsswirling in the Swiss mediathat Philipp Hildebrand, thecentral bank's president, andhis wife acted wrongly bybuying dollars prior to the SNBsetting a ceiling for the Swissfranc last year. The SNB alsopublished the results of aninvestigation into the trades,which found that the transac-tions did not breach SNB rules.
India decided to allow "qual-ified" foreign investors toinvest directly in equity mar-kets; foreign capital has hither-to been restricted to investingin India's listed companiesthrough mutual funds andoverseas derivative instru-ments. The easing of the rulescomes soon after the govern-