Weakest US growth in four years

Weakest US growth in four years

The US economy grew at a pace of 0.6% in the first three months of 2007, its weakest rate in more than four years, official figures have shown.
Hit by Americans importing more goods and firms cutting their supply stockpiles, the figure was a downward revision on the initial 1.3% estimate.
The latest figure from the Commerce Department was also worse than market expectations of 0.8%.
It was the slowest rate of growth since the final three months of 2002.
'Bounce back'
Another significant factor for the weak showing was the downturn in the housing market, which posted a 15.4% reduction in new home building during the quarter.

Weakness in the housing market is also hitting the US economy
However, consumer spending remained resilient, adding 4.4%.
And business investment was better than earlier estimates, growing 2.9%, revised up from 2%.
"It looked like the market was starting to lean into the wind, anticipating a weak number, and we got a little sell-off when it did come in," said Michael Woolfolk, senior currency strategist at Bank of New York.
"But it's quite obvious the economy bottomed in the first quarter and this leaves us with a better base from which to bounce back."
Other analysts are also confident that the figures for April to June will be much better.
"I think we'll see second-quarter growth above 3% and 2.5% for all of 2007," said Lehman Brothers senior economist Drew Matus.
Inflation concern
Earlier this week, minutes from the last Federal Reserve meeting showed that the central bank continued to see inflation as the "predominant concern" for the US economy.
The Fed left interest rates unchanged at 5.25% at its last meeting on 9 May.
In its minutes, the Fed added that the housing market downturn had been more severe than expected, but that the risk of the US economy slowing abruptly had lessened.
Separate figures on Thursday showed that US construction spending rose by an unexpected 0.1% in April, led by public and commercial building work. Economists had predicted no change.

Source: http://news.bbc.co.uk/2/hi/business/6708395.stm

US trade deficit narrows in April

US trade deficit narrows in April

The weak dollar has helped US exportsThe US trade deficit fell unexpectedly in April, helped by the weak dollar.
With the low value of the greenback making US exports more competitive and appearing to depress import demand, the deficit fell 6.2% to $58.5bn (£30bn).
This compares with a revised $62.4bn in March, and average market expectations of an increase to $63.5bn in April.
US exports rose by 0.2% to a record $129.5bn, said the Commerce Department, led by aircraft sales, while imports fell by 1.9% to $188bn.
Chinese concern
Despite the narrowing of the overall deficit, America's trade gap with China jumped 12.3% to $19.4bn, its highest level since January.
Analysts say this will undoubtedly cause displeasure on Capitol Hill, since many US congressmen argue that China is using unfair practices to boost its exports.
Many in the US maintain that since the Chinese government does not allow the yuan to trade freely, the country's exports are artificially cheap.
Analyst Lan Lancz of Lancz & Associates said that while the narrowing of the overall deficit was "a positive sign", the key issues remained the possibility of higher US interest rates and energy prices.
The Federal Reserve next meets to consider US interest rates on 27-28 June.
While most analysts expect rates to remain at 5.25% this time - where they have been for the past year - there is now some concern that the Fed may raise rates further towards the end of the year to control inflation.

Source: http://news.bbc.co.uk/2/hi/business/6733793.stm

General info of Vietnam

VIETNAM (source: the Economist, 2004)

Area: 331,114 sq km
Capital: Hanoi
Arable as % total land: 18
Currency: Dong (D)

People
Population: 79.2m
Pop. per sq km: 239
Av. ann. growth in pop. 2000-05: 1.35%
Pop. under 15: 33.4%
Pop. over 60: 7.5%
No. of men per 100 women: 99
Human development index: 68.8
Life expectancy: men: 66.9 years, women: 71.6 years
Adult literacy: 93.6%
Fertility rate (per woman): 2.3
Urban population: 24.5% per 1000 pop.
Crude birth rate: 19.7
Crude death rate: 6.4

The economy
GDP: D484 trn
GDP: $32.7 bn
Av. ann. growth in real GDP 1991-2001: 7.7%
GDP per head: $410
GDP per head in purchasing power parity (USA=100): 6.0
Economic freedom index: 3.70

Origins of GDP (% of total)
Agriculture: 23.6
Industry, of which: 37.8
Services: 38.6

Components of GDP (% of total)
Private consumption: 65.0%
Public consumption: 6.2%
Investment: 28.9%
Exports: 55.3%
Imports: -57.3%

Structure of employment (% of total)
Agriculture: 70
Industry: 13
Services: 17

Energy (m TOE)
Total output: 46.3
Total consumption: 40.0
Consumption per head, kg oil equivalent: 471
net energy imports as % of energy use: -25%

Inflation and finance
Consumer price inflation 2002: 3.9%
Av. ann. inflation 1996-2002: 2.8%
Treasury bill rate, 2002: 5.92%
average annual increase 1996-2001
Narrow money (M1): 27.4
Broad money: 34.5

Balance of payments, reserves and debts, $bn
Visible exports fob: 15.0
Visible imports fob: -14.5
Trade balance: 0.5
Invisibles inflows: 3.1
Invisibles outflows: -4.2
Net tranfers: 1.3
Current account balance: 0.7
- as % of GDP: 2.1
Capital balance: 0.4
Overall balance: 0.2
Challenge in reverses: o.3
Level of reverses end Dec. 3.8
No. months of import cover: 2.4
Foreign debt: 12.6
- as % of GDP: 41
- as % of total exports: 76
Debt service ratio: 7

Vietnam, a one-party communist state, has one of south-east Asia's fastest-growing economies and has set its sights on becoming a developed nation by 2020.
It became a unified country in 1976 after the armed forces of the communist north had seized the south of the country in the previous year.
This followed three decades of bitter independence wars, which the communists fought first against the colonial power France, then against US-backed South Vietnam. In its latter stages, this conflict held the attention of the world.

Overview

The US had entered hostilities to stem the "domino effect" of successive nations falling to communism.
The jungle war produced heavy casualties on both sides, atrocities against civilians, and the indiscriminate destruction and contamination of much of the landscape.
A visit to Vietnam by US President Bill Clinton in November 2000 was presented as the culmination of American efforts to normalise relations with the former enemy.
Vietnam struggled to find its feet after unification and it tried at first to organise the agriculture-based economy along strict collectivist lines.
But elements of market forces and private enterprise were were introduced from the late 1980s and a stock exchange opened in 2000.
Foreign investment has grown and the US is Vietnam's main trading partner. In the cities, the consumer market is fuelled by the appetite of a young, middle class for electronic and luxury goods. After 12 years of negotiations the country joined the World Trade Organization in January 2007.
But the disparity in wealth between urban and rural Vietnam is wide and some Communist Party leaders worry that too much economic liberalisation will weaken their power base and introduce "decadent" ideas into Vietnamese society.
Vietnam has been accused of suppressing political dissent and religious freedom. Rights groups have singled out Hanoi's treatment of ethnic minority hill tribe people, collectively known as Montagnards.

Leaders (Till June 29th 2007)

President: Nguyen Minh Triet
Parliament confirmed Nguyen Minh Triet, the head of the Communist Party in Ho Chi Minh City, as president in June 2006. He has a reputation for fighting corruption and is seen as an economic reformer.
The former head of state, Tran Duc Luong, had submitted his resignation alongside the prime minister and the chairman of the National Assembly. The change of guard had been expected.
Secretary-general of the Communist Party: Nong Duc Manh
The Communist Party holds the real power in Vietnam. It reappointed Nong Duc Manh as its secretary-general in April 2006.
Mr Manh, who is seen as a moderniser, urged Vietnam to speed up economic reforms and to tackle bureaucracy and deep-rooted corruption.
He says he wants to "lift people from poverty and hunger" and to turn Vietnam into a developed, industrialised country.
Mr Manh began his first term in 2001, becoming the first secretary-general with no direct experience of the struggle for independence. He oversaw five years of strong economic growth.
The Communist Party leadership recommends candidates for the posts of president and prime minister.
Prime minister: Nguyen Tan Dung
Foreign minister: Pham Gia Khiem
Defence minister: Phung Quang Thanh
Finance minister: Vu Van Ninh

Media

The Communist Party has a strong grip on the media. The Ministry of Culture and Information controls the press and broadcasting.

The government has shut down several publications for violating the narrow limits on permissible reporting. Under a 2006 decree journalists face large fines for transgressions which include denying revolutionary achievements and spreading "harmful" information or "reactionary ideology".
Internet providers face fines or closure for breaking the rules and "cyber dissidents" have been imprisoned.
There are hundreds of newspapers and magazines, but television is the dominant medium. Vietnam Television (VTV) broadcasts from Hanoi and is available via satellite to the wider region. There are many provincial stations. Some foreign channels are carried via cable.
State-run Voice of Vietnam (VoV) operates national radio networks, including the VoV 5 channel with programmes in English, French and Russian.
The press
Nhan Dan - Communist Party daily, English-language pages
Vietnam Economic Times - English-language pages
Le Courrier du Vietnam - French-language
Vietnam News - English-language daily
Quan Doi Nhan Dan - People's Army daily
Television
VTV - Vietnam Television

(BBC)

A Harvard dropout gets honorary degree

Bill Gates, Harvard dropout, gets degree
Gates, who left the university early to found Microsoft, called 'most illustrious member' of Class of '77.
June 7 2007: 6:13 PM

CAMBRIDGE, Mass. (Reuters) -- Bill Gates attended to a bit of unfinished business Thursday.
Gates, who dropped out of Harvard and co-founded

Microsoft Corp. (Charts, Fortune 500) to become the world's richest person, stopped off at his former stomping grounds to collect an honorary law degree.
Fortune's David Kirkpatrick and Oliver Ryan talk about the changes at Facebook and what it means for the future of the company.
"We recognize the most illustrious member of the Harvard College class of 1977 never to have graduated from Harvard," said Harvard University Provost Steven Hyman. "It seems high time that his alma mater hand over the diploma."
"I've been waiting for more than 30 years to say this: Dad, I always told you I'd come back and get my degree," Gates, 51, told the crowd, which included his father, also named Bill.

Jobs and Gates share the spotlight

"I'll be changing my job next year, and it will be nice to finally have a college degree on my resume," said Gates in a reference to his plan to shift full time into philanthropy.

The lack of a degree didn't slow Gates's rise to the top echelons of business.
In 1980, Gates and his colleagues at Microsoft were canny enough to negotiate an agreement with International Business Machines Corp. (Charts, Fortune 500) that gave the startup software company the right to license its operating system for a new generation of personal computers to other manufacturers.
That arrangement ultimately turned the computer business on its ear, shifting power from hardware manufacturers to software programmers. Today, hundreds of companies manufacture hundreds of thousands of brand-name personal computers each year, but more than 90 percent of those machines use Microsoft's Windows operating system.
Philanthropic work
At Harvard, Gates lived down the hall from Steve Ballmer, now Microsoft's chief executive, who stayed on to graduate and joined Microsoft in 1980. Gates dropped out to focus on Microsoft, which he founded in 1975 with childhood friend Paul Allen.
Microsoft went public in 1986, and by the next year the company's soaring share prices had made then 31-year-old Gates the world's youngest self-made billionaire.
Last year, Gates said he would step down from his day-to-day management role at Microsoft in 2008 to focus on philanthropic work.
"Humanity's greatest advances are not in its discoveries, but in how those discoveries are applied to reduce inequality," Gates said. "I love getting people excited about software, but why can't we generate even more excitement for saving lives?"
The Bill and Melinda Gates Foundation, founded in 2000, supports projects to improve health, reduce poverty and increase public access to technology.
Gates's commitment to charity caught the attention of famed investor Warren Buffett, the world's second-richest man. Last year, the chief executive of Berkshire Hathaway Inc. (Charts, Fortune 500), pledged the bulk of his fortune to the Gates Foundation.
That $30.7 billion donation, to be paid out in stages on the condition that the money be given away in the year it is donated, roughly doubled the size of the Gates Foundation.
Harvard also awarded honorary degrees to former National Basketball Association great Bill Russell and former Treasury Secretary Lawrence Summers, a former president of Harvard who was forced out after making controversial comments about women in academia that ignited a firestorm among the faculty.

Source: http://money.cnn.com/2007/06/07/news/newsmakers/gates_harvard.reut/