Wed, Jun 10, 2015 - Page 15 News List

World Business Quick Take

Agencies

BANKING

China to have ‘veto’: report

China will ultimately have “veto power” over major decisions of the new Beijing-led Asian Infrastructure Investment Bank (AIIB), the Wall Street Journal reported yesterday. The Journal quoted people close to the bank as saying its voting structure will give China the “upper hand” as the largest shareholder, effectively granting it veto power. According to the bank’s articles of incorporation, China is providing nearly US$30 billion of the institution’s US$100 billion capital base, giving Beijing from 25 to 30 percent of total votes, it said. The AIIB, which is to be based in the Chinese capital, has 57 prospective members.

CHINA

CPI decreased last month

Consumer inflation in the nation fell to 1.2 percent last month, authorities said yesterday, as downward pressure on prices intensifies in the world’s second-largest economy. The reading for the consumer price index (CPI), a main gauge of inflation, released by the National Bureau of Statistics was lower than April’s 1.5 percent. The producer price index — a measure of costs for goods at the factory gate and a leading indicator of the trend for CPI — declined 4.6 percent last month, the bureau said, the same as in April and the 39th consecutive fall.

CYBERCRIME

IiNet issues warning

Australian Internet provider iiNet Ltd has urged more than 30,000 subscribers to change their passwords after claims emerged online that hackers had been attempting to sell personal information stolen from one of the firm’s databases. News of the potential data breach at Australia’s third-largest Web provider first emerged on Twitter, where it was alleged that an unnamed hacker was offering to sell a database that included clients’ passwords, home addresses and telephone numbers. IiNet said it was not immediately able to confirm whether the information, which includes subscriber details from a company it purchased in 2008, had actually been breached.

BANKING

UBS plans assets transfer

UBS Group AG plans to transfer assets and operations into a new Swiss unit on Sunday to meet regulatory demands to make the company easier to break up in a crisis. UBS Switzerland AG is to house the bank’s retail, corporate and wealth management businesses booked in the country, Zurich-based UBS said in a statement yesterday. The transfer date might be deferred, UBS said. The establishment of the Swiss unit is part of wider changes in the bank’s legal structure designed to prevent UBS from needing another bailout. UBS has said that the Swiss unit will have about 300 billion Swiss francs (US$324 billion) in assets and will have joint liability for about SF310 billion of obligations of UBS AG.

AUTOMAKERS

Hyundai, Kia to reduce costs

Hyundai Motor Co and affiliate Kia Motors Corp are reducing costs after sales and profits fell at the two South Korean companies. Hyundai and Kia are “making efforts to cut costs” after first-quarter operating profit declined, the firms said in a joint e-mail yesterday. They did not provide specifics on the cost cuts or any estimate. Operating profit at both Hyundai and Kia declined for a fourth consecutive quarter in the three months ended March 31. They have posted declining vehicle sales due to unfavorable currency-exchange rates.

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