Noyer calls for new EU hub
The City of London should no longer be the euro’s main financial center so the eurozone can “control” most financial business in the region, France’s central bank governor said in an interview published yesterday. Banque de France Governor Christian Noyer said there was “no rationale” for allowing the UK to be the “offshore” financial hub of the eurozone. “Most of the euro business should be done inside the euro area. It’s linked to the capacity of the central bank to provide liquidity and ensure oversight of its own currency,” Noyer told the Financial Times while touring Asia to promote Paris as a trading center for Chinese yuan.
BP to expand in Indonesia
The Indonesian subsidiary of British oil giant BP yesterday said a US$12.1 billion deal to expand its liquid natural gas operations in the country had been given final approval. The deal, announced last month during Indonesian President Susilo Bambang Yudhoyono’s state visit to London, will allow BP to develop a third liquefied natural gas liquefaction train at its Tangguh project in Indonesia’s West Papua Province, a statement from BP Indonesia said. BP is one of Indonesia’s largest foreign investors and holds a 37.16 percent stake in the Tangguh plant, which began operations in mid-2009.
Data suggest fiscal rebound
Companies increased capital spending more than economists predicted in the three months to September, indicating a contraction in the world’s third-largest economy may be short-lived. Capital spending excluding software rose 2.4 percent in the period from a year earlier, after rising 6.6 percent in the previous quarter, the Ministry of Finance said yesterday. Economists surveyed by Bloomberg had forecast a 1 percent gain. Companies in the transport equipment, food and chemicals industries contributed to the advance in capital expenditure in the quarter, the ministry said after the data were released.
Manufacturing in slump
Manufacturers reported stagnant output over the past quarter, the weakest reading since late 2009 when the country was recovering from its deepest recession in more than 50 years, a survey by the sector’s lobby, EEF, showed yesterday. Boding ill for the coming months, orders hardly grew, with the relevant balance of responses falling to the lowest level since early 2010. Demand at home remained weak, while a protracted debt crisis in the eurozone led to the first fall in export orders since the end of 2009, EEF said. EEF forecast that manufacturing output would contract by 1.2 percent this year and grow by 0.7 percent next year. EEF polled 391 companies between Nov. 2 and Nov. 23.
Mining firms lead profit fall
Business profits dropped in the three months through September, the fourth consecutive quarterly decline, as earnings weakened at mining companies. Gross operating profits fell 2.9 percent from the second quarter, when they declined a revised 0.3 percent, the Bureau of Statistics said yesterday. The result compares with the median forecast of a 3 percent drop in a Bloomberg survey of 20 economists. Inventories swelled 1.1 percent, compared with analysts’ prediction of a 0.4 percent gain. Reserve Bank of Australia will likely lower the nation’s benchmark interest rate to 3 percent today, most economists surveyed by Bloomberg News have predicted.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
Gold surged to a fresh record on Friday, fueled by US dollar weakness and low interest rates, while silver headed for its best month since 1979. Spot bullion is up more than 10 percent this month, as US real yields lingered near record lows. While the ferocity of rallies in gold and silver cooled in the middle of the week, most market watchers predict there might be more gains ahead. Both metals have added about 30 percent this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the COVID-19 pandemic fuels demand for
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion