Jaguar mulls outsourcing
Jaguar Land Rover, the British luxury car unit owned by Tata Motors, is considering manufacturing vehicles from scratch in India, a report said. Jaguar Land Rover currently assembles a number of cars in India with parts shipped from Britain. Manufacturing the whole car in India would make it cheaper, as it would save on government import taxes and labor costs. “Like Brazil, India is one of the possibilities for Jaguar Land Rover to fully manufacture cars,” a person close to the development told the Wall Street Journal on Sunday.
Rusal reports net loss
Russian aluminum giant Rusal yesterday reported a net loss of US$55 million for last year, compared with a net profit of US$237 million in 2011. Revenue fell 11.4 percent to US$10.89 billion. Rusal said it expects to cut approximately 270,000 tonnes of aluminum production capacity at its “less efficient aluminum smelters” by the end of this year to improve efficiency. The price of aluminum, which is used in industries including automotive and construction, is trading at about US$1,975 a tonne on the London Metal Exchange, down 15.2 percent from a year ago.
Inflation slows to 1.4%
South Korea’s inflation rate slowed slightly to 1.4 percent last month, well below the central bank’s target band and offering more room for monetary easing, government data showed yesterday. The figure, which compares with a rate of 1.5 percent in January, is below the Bank of Korea’s inflation target band of between 2.5 percent and 3.5 percent, and offers the central bank the option of a further interest rate cut to help spur growth. The central bank kept the key rate unchanged at 2.75 percent last month for a fourth straight month. Core inflation, which excludes volatile energy and food prices, was at 1.3 percent, compared with 1.2 percent the previous month.
Banks to reduce bonuses
HSBC and Standard Chartered are to report a reduction in their bonus pools, reflecting separate settlements with US authorities over probes into money laundering and sanctions violations, Sky News reported on Sunday. HSBC’s bonus pot will fall to about ￡2 billion (US$3 billion) from ￡2.8 billion paid out in 2011, Sky News said on its Web site, with HSBC chief executive officer Stuart Gulliver expected to take home between ￡6 million and ￡7 million, including a bonus of just under ￡2 million. His counterpart at Standard Chartered, Peter Sands, will take home less than ￡2 million in bonus payments, with the bank’s overall bonus pool cut to US$1.4 billion from US$1.54 billion pounds last year, Sky News said.
Rehn hints at Cyprus exit
European Economic Affairs Commissioner Olli Rehn has warned that debt-riven Cyprus could exit the eurozone without a bailout in an interview with a German news weekly published on Sunday. New Cypriot President Nicos Anastasiades has vowed to save the nearly bankrupt Mediterranean island from financial meltdown saying he will seek to secure an “earliest possible” bailout. Euro finance ministers were due to resume discussions on a Cyprus bailout package yesterday. German Finance Minister Wolfgang Schaeuble told Sunday’s Tagesspiegel newspaper that the Cypriot problem was “not easy to solve,” but insisted an “appropriate” solution would be found.