Japan offers US$100m fund for East Asian economic grouping
Japan said to would provide US$100 to form an East Asia Free Trade Area that could rival North American or European economic blocks. Called the Nikai Initiative, Japan is promoting its economic agenda together with the 10-member Asean group, plus Australia, New Zealand, China, India and South Korea.

It is said that such a powerful trade pact could create a huge production base with a potentially huge and affluent consumer market in excess of three billion people.

If realised, this economic zone would include half of the world's population and a quarter of its gross domestic product.

Asean trade negotiators in Kuala Lumpur are busy discussing ways to create a tariff-free region to make South-East Asian economies an attractive destination for investors, since the 1997 economic crisis which jolted the region.

On the negotiation table are proposals to improve movement of goods, investments and services.

Asean trade representatives are also racing against time to implement long-standing trade mechanisms such as the Asean Free Trade Area and Asean Economic Community.
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Ford accelerates turnaround plan
Detroit: Ford Motor Co. is speeding up its turnaround plans and cutting fourth-quarter production to its lowest level in 25 years. For the current year Ford Motor plans to manufacture 3.048 million vehicles in North America, down 9 per cent from 2005. Ford leads the pickup truck market, with the F-series accounting for 30 per cent of its annual sales.

Ford said the decision was likely to have a dramatic impact on its employees and suppliers but had to be taken keeping the company's long-term future in mind.

The company said it would cut fourth-quarter North American production by 21 per cent, or 168,000 vehicles, from a year earlier. Ford said output in the quarter will be 625,000 vehicles, the lowest total for that period since 1981.

Ford is also reducing third-quarter output by 20,000 vehicles, on top of a cut of 40,000 announced in July.

The cuts will have an immediate impact on Ford's results because automakers measure revenue based on sales to dealers, not consumers.
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Hang Seng flat on China interest rate hike
Hong Kong: Hong Kong-listed shares in mainland companies in China fell after China raised interest rates for the second time in four months, dragging down rate-sensitive mainlnd real estate stocks like China Overseas Land & Investment Ltd. The benchmark Hang Seng Index <.HSI> opened at 17,326.38. Hong Kong-listed shares in mainland companies, fell 0.53 percent to 6,953.04 as of 0200 GMT.
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