AVIATION
China plans huge investment
China plans to invest more than 1.5 trillion yuan (US$228 billion) in the aviation industry over the next five years to meet surging demand as its economy booms, the sector’s top regulator said yesterday. By 2015, the country is expected to have more than 220 commercial airports and its fleet size will expand to more than 4,500 planes, said Li Jiaxiang (李家祥), head of the Civil Aviation Administration of China. The country currently has 175 commercial airports in operation and keeps more than 2,600 aircraft in its fleet, Li said.
EXCHANGES
CBOE open to sale, merger
The Chicago Board Options Exchange’s (CBOE) parent is now formally open to “strategic transactions,” such as a sale or merger with another exchange operator, a person with direct knowledge of the company’s stance said on Wednesday. At a Feb. 8 board meeting, CBOE Holdings Inc management told directors that it would not be opposed to a transaction, though no specific possibilities were outlined, said the source, who requested anonymity, adding the board did not oppose this. The next day, two major exchange takeovers were unveiled. Since then, the source said, many e-mailed and verbal messages have been exchanged internally on how CBOE, the No. 1 US options market, will respond to the recent rash of global merger plans.
BANKING
RBS sees losses shrink
The Royal Bank of Scotland (RBS), Britain’s largest government-owned bank, reported a smaller annual net loss last year after returning to profit in the final quarter. RBS, which is 84 percent owned by the taxpayer after receiving a state bailout at the height of the credit crisis in 2008, yesterday posted a net loss of ￡1.1 billion (US$1.8 billion) for last year, compared with a ￡3.6 billion loss in 2009. The bank made a small net profit of ￡12 million in the final three months of last year, favorable when compared with a ￡765 million loss in the same quarter in 2009. RBS chief executive Stephen Hester said the bank’s recovery is “ahead of schedule” two years on from the global financial crisis.
CHEMICALS
BASF posts stunning results
BASF, the world’s biggest chemicals company, presented stunning results yesterday, including a net profit that leapt more than three-fold to 4.56 billion euros (US$6.3 billion). The group had suffered from the global economic slowdown in 2009, when net profit amounted to 1.41 billion euros. It bounced back last year, and despite problems in Libya, BASF chief executive Juergen Hambrecht was quoted by a statement as saying the group is now “optimistic for the first quarter [of 2011] and the year as a whole.”
INSURANCE
Allianz sees higher earnings
Allianz SE says its fourth-quarter earnings last year climbed 11 percent on a small increase in revenue and a more profitable core business. Allianz yesterday reported net earnings of 1.14 billion euros for the October to December period — up from 1.02 billion euros a year earlier. Revenues climbed 2 percent to 26 billion euros from 25.5 billion euros. The Munich-based company said the combined ratio at its property and casualty division was down to 94.9 percent from 95.3 percent. A lower ratio means an insurance underwriting business is more profitable. Full-year net earnings were up to 5.05 billion euros from 4.21 billion euros in 2009. Revenues grew to 106.5 billion euros from 97.4 billion euros.
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Luxury fashion powerhouse Prada SpA has acknowledged the ancient Indian roots of its new sandal design after the debut of the open-toe footwear sparked a furor among Indian artisans and politicians thousands of miles from the catwalk in Italy. Images from Prada’s fashion show in Milan last weekend showed models wearing leather sandals with a braided design that resembled handmade Kolhapuri slippers with designs dating back to the 12th century. A wave of criticism in the media and from lawmakers followed over the Italian brand’s lack of public acknowledgement of the Indian sandal design, which is named after a city in the
The US overtaking China as Taiwan’s top export destination could boost industrial development and wage growth, given the US is a high-income economy, an economist said yesterday. However, Taiwan still needs to diversify its export markets due to the unpredictability of US President Donald Trump’s administration, said Chiou Jiunn-rong (邱俊榮), an economics professor at National Central University. Taiwan’s exports soared to a record US$51.74 billion last month, driven by strong demand for artificial intelligence (AI) products and continued orders, with information and communication technology (ICT) and audio/video products leading all sectors. The US reclaimed its position as Taiwan’s top export market, accounting for
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