World business round-up

Japan

Toyota is preparing to recall 11,500 Lexus vehicles worldwide for problems related to steering. The four Lexus models in question – the LS 460, LS 460 L, LS 600h, and LS 600h L – have prompted customers to complain about mechanical and software related problems that cause the wheels not to return to original positions fast enough after making turns.

“Despite this unexpected rise in interest in the budget hotel market, the three-star hotel segment only represents a third of the new hotels in the Middle East that Expedia added to its site last year.”
-Julian Rogers

Last month, Toyota also said that it will recall the Lexus GX 460 sport-utility vehicle following criticism from Consumer Reports magazine, which rated the car a “safety risk” because it is prone to rolling over in certain driving conditions.

Dubai

According to Expedia, the US-based online travel reservation website, demand for three-star accommodation in Dubai surged 70 percent in the first quarter of this year, compared to the same period last year. However, despite this unexpected rise in interest in the budget hotel market, the three-star hotel segment only represents a third of the new hotels in the Middle East that Expedia added to its site last year.

Furthermore, arabianbusiness.com reports that the latest STR Global Construction Pipeline Report shows that the hotels being planned in the region do not reflect this and luxury is still the dominant force in the market.

China

The job market remains barren in Beijing as many graduates struggle to find employment related to their major. The current graduate employment rate is a disappointing 38.6 percent, although this does differ according to the major.

According to recent figures released by the government, 84,500 of the 219,000 college graduates in Beijing who will graduate in July, had already found jobs as of May 14.
Speaking to China Daily, Guo Guangsheng, deputy director of the Beijing municipal commission of education, said: "Although there are many job opportunities in Beijing this year, graduates in some majors still have difficulty finding jobs."

Nigeria

Software piracy continues to present a major problem in Nigeria and has prompted software giant Microsoft to call for additional government and industry support to help combat the issue.
The seventh annual global software piracy study released by the Business Software Alliance in conjunction with IDC, revealed that the software piracy rate in Nigeria is 83 percent, placing it 19th on the global list. It is estimated that the total commercial value of software stolen between 2005 and 2009 is a staggering €487 million.
Software piracy has a damaging effect on the local economy as it limits technology innovation, job creation and economic growth, but it also poses security threats for the consumers using the counterfeit software.

South Korea

Tensions over the mysterious sinking of a South Korean warship in March have prompted South Korea to ask some companies not to sign trade deals with North Korea. Yonhap news agency reported that government officials have been urging companies to stop sending raw materials to North Korea for processing.

However, companies operating in the North Korean border town of Kaesong, which employ 42,000 North Korean workers, will not be affected by the new measures.

USA

A bill to reform financial regulations in the US has been delayed after Senate Republicans voted to delay final action. The vote needed 60 votes to pass, but the outcome was three votes shy at 57-42. There were 39 Republican votes against the measure, which was also rejected by three Democrats.
The legislation, which is said to be the biggest financial-regulation update since the Great Depression, would set up a mechanism to watch for risks in the financial system, create a method to liquidate large failing firms and would rewrite the rules regarding complex securities.