Tue, Jan 05, 2016 - Page 15 News List

World Business Quick Take

Agencies

UTILITIES

Tanzania to boost production

Tanzania’s government plans to sell shares in the state-owned power utility to the public this year and split it into separate generation, transmission and distribution units, Minister of Energy and Mining Sospeter Muhongo said. The state is to offer as much as 49 percent of Tanzania Electric Supply Co, or Tanesco, while the government is to retain a controlling stake, Muhongo said. The government is also to invest US$1.2 billion in the company over 10 years, boosting efforts to increase electricity production to 10,000 megawatts by 2025 from 1,400 megawatts, Muhongo said.

INVESTMENT

Treasuries fall amid tension

Treasury investors in benchmark 10-year notes are to lose 1.7 percent this year as the US Federal Reserve raises interest rates, economists project. The yield is expected to climb to 2.80 percent from 2.29 percent yesterday, based on a Bloomberg survey of banks and securities companies with the most recent forecasts given the heaviest weightings. The estimated loss takes into account expected interest payments. US Treasuries fell yesterday as tensions between Iran and Saudi Arabia sent crude oil higher, raising speculation increasing fuel costs might cause inflation to accelerate.

REAL ESTATE

Singapore properties drop

Singapore home prices dropped for a ninth quarter, posting the longest losing streak in 17 years, as tighter mortgage curbs cooled demand in Asia’s second-most expensive housing market. An index tracking private residential prices fell 0.5 percent in the three months ending Thursday last week from the previous quarter, preliminary data from the Urban Redevelopment Authority show. That took the annual decline to 3.7 percent, almost matching the 4 percent drop in 2014, which was the first year-on-year slide since 2008. Developers sold 5,599 new units in the nine months to September, on course for the lowest annual sales since 2008.

COMMODITIES

Haven assets return

Gold climbed with silver on the first trading day this year as rising tension between Saudi Arabia and Iran spurred a return to haven assets. Bullion for immediate delivery climbed as much as 0.5 percent to US$1,066.04 an ounce and traded at US$1,064.04 at 12:29pm in Singapore, Bloomberg generic pricing showed. The metal lost 10 percent last year for a third annual drop, the longest slump since 2000. Gold, traditionally seen as a store of value during political turmoil, climbed after Saudi Arabia cut ties with Iran, a day after its embassy in Tehran was attacked to protest the Saudi execution of a prominent Shiite cleric. While unexpected incidents last year such, lifted prices briefly, gold still fell last year.

AVIATION

Soul probes budget airlines

South Korea is to review safety at six low-cost airlines after a Jin Air flight made an emergency return to the Philippines. The Ministry of Transport yesterday said that the safety investigation comes as the ministry is looking into the Jin Air incident. Jin Air Co said a Boeing 737-800 jet bound for Busan, South Korea, returned to Cebu, the Philippines, 40 minutes after takeoff on Sunday when one of the plane’s doors was found to be leaking air. The company said its initial investigation found no defect in the jet. No injuries were reported, but local media reports said passengers complained of a loud noise and suffered from headaches during the return trip.

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