Consumer confidence rises
Consumer confidence has jumped following the ouster of the country’s unpopular prime minister last week by a moderate rival. The optimism of Australians rose by 8.7 percent in the latest ANZ-Roy Morgan consumer confidence survey published on Tuesday. The survey was conducted last weekend after Tony Abbot was replaced as leader of the ruling Liberal Party and prime minister by Malcolm Turnbull in a vote of government lawmakers.
Budget deficit reaches high
The nation last month had the highest budget deficit in three years as the tax take from individuals and companies dropped. Spending exceeded revenue by ￡12.1 billion (US$18.5 billion) compared with a deficit of ￡10.7 billion a year earlier, the Office for National Statistics said in London on Tuesday. The statistics office cautioned against reading too much into the increase in borrowing, saying it reflected a drop in self-assessed income tax payments from the large amount paid in July. Taking the two months together, the ￡8.5 billion received was the highest on record.
PACL fined for fund-raising
India’s markets regulator imposed a penalty of 72.7 billion rupees (US$1.1 billion) on PACL Ltd for raising funds from the public without its approval. The Securities and Exchange Board of India (SEBI) directed the New Delhi-based real-estate developer to pay the fine within 45 days of receiving the order. SEBI, which is cracking down on Ponzi-like collective investment schemes in India, told PACL in August last year to return 491 billion rupees to investors along with “due returns,” citing rule violations. The company subsequently lost an appeal with the Indian Securities Appellate Tribunal, which upheld the SEBI order last month.
BBA Aviation buys Landmark
BBA Aviation PLC agreed to buy Carlyle Group LP’s Landmark Aviation for US$2.07 billion to expand in flight services for business and general aviation. BBA is to sell ￡748 million of stock to current investors at 133 pence per share to help fund the purchase, the London-based company said in a statement yesterday. That compared with Tuesday’s closing price of 284.7 pence. The deal is to boost earnings per share by 2017, BBA said.
Currency hits Diageo profit
Diageo PLC said adverse currency shifts are to reduce full-year operating profit by ￡150 million, more than it had expected previously. The maker of Johnnie Walker and Guinness said it expects “modest organic” profit margin improvement as volume improves, the company said yesterday. London-based Diageo forecast in July that exchange-rate moves would strip ￡100 million from operating profit. The world’s biggest distiller reiterated it expects an organic net sales decline of 2 percent in the first half in North America.
BOA CEO to keep position
Bank of America Corp (BOA) CEO Brian Moynihan survived a battle to remove him as chairman, fending off critics including the biggest US pension funds. A resolution allowing Moynihan to remain chairman and CEO passed with about 63 percent of the votes, the Charlotte, North Carolina-based company said on Tuesday during a special meeting, citing a preliminary tally. JPMorgan Chase & Co CEO Jamie Dimon faced a similar vote two years ago, and also kept both jobs.
Gogoro Inc (睿能創意) yesterday launched its first electric bicycle, the Gogoro Eeyo 1, in Taiwan, after unveiling the bike in New York in late May and in France on Tuesday. The company said it would also introduce the series in other European countries such as Germany and the Netherlands. The “Eeyo project” is the fourth of Gogoro’s eight projects that concentrate on smart transportation, which includes Gogoro’s electric scooter, battery swap system and electric scooter sharing service, company founder and chief executive officer Horace Luke (陸學森) told a media briefing in Taipei. “There are various types of city commuters. We will not
With the US dollar expected to weaken in the next 12 months due to near-zero interest rates, investors should consider purchasing US corporate bonds, Standard Chartered Bank Taiwan Ltd (渣打台灣銀行) said on Thursday. The bank said that the US Federal Reserve since last month has been buying bonds issued by US companies to curb default rates. The US dollar is forecast to be weaker against the pound, the euro and the yen, as well as the Canadian dollar, the Swedish krona and the Swiss franc, as the greenback lacks high investment returns after the Fed in March slashed the benchmark interest rate
BAD RAP: The exchange said Tatung had seriously breached shareholders’ rights and failed to give a satisfactory explanation of its board election dispute Tatung Co (大同) shares yesterday plunged by the maximum daily limit of 10 percent to NT$18.90, the lowest in three months, after the Taiwan Stock Exchange (TWSE) on Tuesday evening changed the company’s classification to a full-delivery stock effective tomorrow. The TWSE’s move follows the company’s failure to give a clear and satisfactory explanation of why it deprived dozens of shareholders of their voting rights during a board election at the annual shareholders’ meeting on Tuesday morning. Under the exchange’s regulations, investors are not allowed to engage in margin trading of a full-delivery stock, TWSE spokeswoman Rebecca Chen (陳麗卿) told
SIZE MATTERS: Medium-sized hotels that do not have the support of parent groups are more vulnerable and are forced to take action, a REPro Knight Frank researcher said About 50 hotels across Taiwan are seeking to exit the market as they succumb to the bleak business outlook amid international travel restrictions imposed to combat the COVID-19 pandemic. Yomi Hotel (優美飯店) on Minsheng E Road, Sec 1, in Taipei is seeking to transfer ownership with an asking price of NT$950 million (US$32.15 million) and a pledge for a lease contract that guarantees a 3 percent return. The budget hotel, with room rates that start from NT$1,400 per night, maintains normal operations, but has been struggling since March, when the government placed restrictions on inbound and outbound travel. Occupancy rates for hotels in