TI to cut 1,700 jobs
Chipmaker Texas Instruments Inc (TI) said on Wednesday that it would eliminate about 1,700 jobs as it trims spending on its wireless business. The cuts will reduce TI’s staff positions by almost 5 percent. The company expects the job cuts and other changes will save about US$450 million per year by the end of next year. The Dallas company will take US$325 million in one-time charges connected to the moves. Most will come in the current quarter. The company had 34,759 employees at the end of last year.
GrainCorp rejects buyout
Australian agribusiness GrainCorp yesterday rejected a A$2.68 billion (US$2.78 billion) all-cash takeover offer from US food giant Archer Daniels Midland (ADM), holding out for more money. Leading agricultural commodities trader ADM made its indicative and non-binding bid last month, saying it was prepared to pay A$11.75 for each GrainCorp share. In response, the Australian firm said it had decided that the ADM offer was not enough, undervaluing its assets and competitive advantages in handling and processing wheat, barley and canola.
China’s bad loans climb
Chinese banks’ bad loans increased for a fourth straight quarter, the longest streak of deterioration since the data became available in 2004, highlighting pressures on profit growth as the economy weakens. Non-performing loans rose by 22.4 billion yuan (US$3.6 billion) in the three months ended Sept. 30 to 478.8 billion yuan, the China Banking Regulatory Commission said in a statement yesterday. Bad loans increased at all types of institutions, including state-owned lenders, rural banks and foreign banks, it said.
Moody’s reviewing rating
Moody’s announced on Wednesday that it would review Britain’s “Aaa” rating early next year, saying the country’s strengths were challenged by weak growth and the eurozone crisis. In its yearly credit report on Britain, the agency said its review would hinge in part on the government’s upcoming Autumn Statement, its mid-term economic review. In February, Moody’s issued a negative outlook for the sovereign rating, a warning that Britain’s triple-A grade could be lowered in the medium term.
Fed mulls new stimulus
The US Federal Reserve is mulling additional asset purchases next year to boost jobs amid a fragile economy, the minutes of a policy meeting released on Wednesday showed. With the current US$45 billion a month “Operation Twist” asset adjustment program scheduled to end next month, the minutes suggested that the Fed was ready to go ahead with more outright bond purchases, aimed at pushing long-term interest rates lower.
Opel, Peugeot deal dropped
General Motors (GM) has scrapped plans to merge its troubled German unit Opel with PSA Peugeot Citroen because of the French carmaker’s financial woes, a news report said on Wednesday. “GM gave up in early November on the merger plan between Opel and PSA Peugeot Citroen’s auto division,” French financial newspaper La Tribune said, citing “a well-informed French source.” Instead of a merger, the carmakers would pursue a more limited partnership in four specific areas, which they had already announced on Oct. 24, La Tribune said.