BUSINESS BRIEFS

China to invest in rail network

BEIJING: China will invest nearly US$300 billion in its overburdened rail system as a stimulus measure aimed at blunting the impact of the global financial crisis, state press said yesterday. The investment is part of plans to extend the country's railway network from the current roughly 78,000 miles to nearly 100,000 miles by 2010, Shanghai's Oriental Morning Post reported.

East Asia growth seen at 3%-5%

SINGAPORE: East Asia should be able to achieve an annual economic growth of 3 per cent to 5 per cent considering the current global financial crisis, Singapore's Minister Mentor Lee Kuan Yew said, in press reportsyesterday. Giving the assessment, Lee was upbeat about Asian economic growth supported by China and India.

US govt to buy stake in insurers

WASHINGTON: Following its purchase of shares of leading US banks, the US government is considering buying equity stakes in insurance companies using the US$700-billion rescue package approved by Congress, the Wall Street Journal reported yesterday. The newspaper said the insurance firms are offering their shares themselves, feeling they could benefit from the government's money pool amid financial turmoil.

M'sian inflation tamer in Sept

KUALA LUMPUR: Malaysia's inflation eased slightly to 8.2 per cent in September after a series of retail fuel price cuts which saw the transportation index expand at a slower pace, government data showed. "Among the contributing factors to this decline is the reduction in the price of petrol and diesel announced by the government," the statistics department said in a statement late Friday.

US banks get capital, National City sold

NEW YORK: The US took further steps to prop up its banking system on Friday, starting to inject capital into a new group of banks, and helping to finance a US$5.2 billion takeover of ailing National City Corp by PNC Financial Services Group Inc. The Treasury Department plans to provide funds for 20 to 22 additional lenders as part of its next round of a US$250 billion bank recapitalisation programme. It has already committed half that amount to nine of the nation's largest banks in exchange for preferred shares.

Tata, Mahindra interested in Hummer

NEW YORK: General Motors Corp and Chrysler have moved closer on Friday to offloading two niche vehicle brands associated with the era of cheap gasoline and big profits for Detroit, even as both sides intensified talks on a merger that would combine the struggling automakers. GM will send out a sales prospectus for Hummer to possible bidders in the next few days and Indian automakers Tata Motors Ltd and Mahindra & Mahindra Ltd are among those who will take a look, a source familiar with the matter said. Parties interested in looking at the prospectus have signed nondisclosure agreements and sent them in. Agencies