Massive interest rates cut

On Wednesday the central bank cut the benchmark interest rate by 1.08 percentage points, the highest in 11 years to stimulate the economy. It also cut the proportion of money six big commercial banks have to hold as reserves by 1 percentage point to 16 percent. It’s a 2 percent cut for smaller banks at 14 percent. The interest rate cut is the highest since October 1997 since the Asian financial crisis.

Thai PM refuses to step down

Prime Minister Somchai Wongsawat declared a state of emergency Thursday at two Bangkok airports besieged by anti-government protesters. The People’s Alliance for Democracy have refused to end their protests, which have forced flight cancellations and stranded thousands of travelers. Earlier in the week Wongsawat rejected Thailand’s army chief Anupong Pachinda’s call to dissolve parliament and have a snap election as a way out of the political crisis.

US bails out Citigroup with $20B

This past weekend the US government agreed to inject $20 billion into Citigroup to shoulder most of the bank’s potential losses on $306 billion of high-risk assets. It’s the government’s biggest move to rescue a bank in order to contain a widening financial meltdown. Citigroup has the furthest international reach of any US bank, with operations in more than 100 countries.

Police hold Gome boss in custody

?Beijing police have confirmed they have detained Huang Guangyu, owner of Gome, China’s biggest home appliance retail chain for economic crimes. The website Caijing magazine said Huang is being investigated for stock manipulation of Shanghai-listed Jintai Co Ltd. The company’s stock price rose by 450 percent within 30 trading days in July and August last year. Trading in stocks of Gome in Hong Kong was suspended.

President Hu Jintao returns from Greece, Peru

President Hu Jintao returned to China after completing his five-nation tour that included the US, Costa Rica, Cuba, Peru and Greece. China and Greece have signed a deal to allow Cosco, Asia’s third-largest container terminal operator a 35-year concession to operate and mange two container terminals in Greece’s main port of Piraeus. Hu also said China hopes to expand the scope of shared interests with Greece along with more cooperation in the oceanic shipping industry. Earlier in the week Hu was in Lima, Peru to attend the Asia-Pacific Economic Cooperation or APEC. He urged for greater regional economic integration and said China is ready to conduct research on an Asia-Pacific free trade area.

Over 125 killed in Mumbai attacks

At least 125 people were killed, including 6 foreigners, and over 300 people were wounded in coordinated attacks in Mumbai, police said Thursday. Army commandos claimed to have freed all the hostages from one of two hotels, the 105-year-old Taj Mahal Palace and Tower by yesterday evening, but were battling with the terrorists at the Oberoi Trident Hotel. Police say they were proceeding slowly to protect the captives, many of whom were British and American. A group of suspected Muslim militants claimed responsibility for storming luxury hotels, Mumbai’s domestic airport, its busiest railway station, two hospitals, a dockyard, police headquarters and a building that houses a Jewish center. Indian Prime Minister Manmohan Singh blamed “external forces” for the attacks.

Obama announces financial cabinet

US President-elect Barack Obama on Monday named his economic brain-trust as he conceded millions more Americans could lose their jobs next year. He also played down expectations that his administration could engineer a quick turnaround of the economy. Obama named New York Federal Reserve President Tim Geithner the next treasury secretary, saying the US faces a crisis of historic proportions. Geithner is an Asian affairs veteran who has studied Japanese and Chinese and has lived throughout the region. Lawrence Summers will be the director of Obama’s National Economic Council. Summers was treasury secretary under former president Bill Clinton. Geithner and Summers are seen as reassuring economic and political voices for the incoming Obama administration.

Pop princess Kylie Minogue comes to China

Australian singer Kylie Minogue promises to electrify fans in Shanghai on Saturday and then Beijing on Monday. Rumors have it that she will wear specially designed Chinese costumes on stage. Organizers for the KylieX2008 shows in China say tickets are 90 percent sold out. Minogue is best known for such hits at Loco-Motion, I Should Be So Lucky and Can’t Get You Out of My Head.

Bernice Chan is a foreign expert at China Daily Website. Originally from Vancouver, Canada, Bernice has written for newspapers and magazines in Hong Kong and most recently worked as a broadcaster for the Canadian Broadcasting Corporation, producing current affairs shows and documentaries.