Fri, Dec 14, 2012 - Page 15 News List

World Business Quick Take

Agencies

AIRCRAFT

Mitsubishi snags order

Mitsubishi Aircraft yesterday said it had signed a deal with US-based carrier SkyWest for 100 jets worth US$4.2 billion, with an option to buy another 100 planes, in a “major order” for the Japanese firm. The Japanese company said it expected to deliver the first batch of planes from 2017, while the optional order could be delivered from 2021. The optional order could double the deal’s value to more than US$8 billion based on its planes’ list price, Mitsubishi said, adding the two firms’ agreement would “mutually position themselves for opportunities in the US regional airline industry.”

BANKING

Deutsche Bank under probe

Deutsche Bank says its co-chief executive Juergen Fitschen and chief finance officer Stefan Krause are under investigation as part of a tax evasion probe linked to the bank’s emissions trading business. The bank said on Wednesday Fitschen and Krause were being investigated because they signed off on the company’s 2009 tax declaration. The bank said any errors in the declaration were corrected later in a timely way, adding that prosecutors said the changes were made too late.

AUTOMAKERS

Renault sells Volvo stake

Renault SA, which is losing sales faster than any other European carmaker, sold its remaining Volvo AB stake for 12.8 billion kronor (US$1.92 billion) to boost funding, ending an 11-year run as the Swedish truckmaker’s largest owner. Renault disposed of a 6.5 percent holding at 92.25 kronor per share, 3.8 percent below Wednesday’s closing price of 95.90 kronor, to reduce debt and invest in France, Russia and China, the company said in a statement yesterday. Renault sold a 14.9 percent Volvo stake in 2010.

AUTOMAKERS

Honda recalls 871,000 cars

Honda will recall more than 871,000 vehicles worldwide to fix a defect that could allow them to roll away when a driver thinks they have been parked, the Japanese automaker said on Wednesday. The bulk of the US and Canadian-made vehicles — 807,000 — will be recalled in the US, while 52,000 will be called back in Canada. Honda said it was aware of two incidents in which people received “minor injuries” as a result of the defect.

FINANCE

Mitsubishi buys out BOA

Mitsubishi UFJ Financial Group Inc agreed to buy Bank of America Corp’s (BOA) stake in their private bank venture, as Japan’s biggest lender expands services to wealthy households. The Japanese bank will complete the purchase of the 49 percent stake in Mitsubishi UFJ Merrill Lynch PB Securities Co on Dec. 26, the companies said in a statement yesterday. Mitsubishi UFJ will pay ¥39 billion (US$471 million), two people with knowledge of the matter said on Wednesday.

INTEREST RATES

S Korea maintains rates

South Korea’s central bank yesterday kept its key interest rate unchanged at 2.75 percent for a second straight month as the economy shows signs of recovering from a year-long slump. Bank of Korea, which cut the rate in July and October, left the benchmark seven-day repo rate unchanged at 2.75 percent for this month. South Korea’s exports posted back-to-back gains through last month, while inflation remained below or near the bottom end of the central bank’s 2 to 4 percent target band for the ninth consecutive month.

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