Sat, Sep 10, 2016 - Page 10 News List

World Business Quick Take

Agencies

BANKING

Italian merger approved

The European Central Bank (ECB) and the Bank of Italy have given the go ahead for a merger of Banco Popolare and Banca Popolare di Milano, creating Italy’s third-largest bank by assets. The two banks, which announced their planned merger in March, will be known as “Banco BPM.” Shareholders of both banks are yet to vote on the deal, creating some uncertainty despite the favorable views of analysts. The new bank would have an 8.2 percent market share and create a lender with more than 25,000 staff and 4 million customers.

TECHNOLOGY

Dell planning layoffs

Dell Technologies plans to cut about 2,000 to 3,000 jobs after acquiring EMC Corp in the largest technology acquisition ever, according to people familiar with the company’s plans. The reductions are planned for later this year and will be mostly in the US and in areas such as supply chain and general and administrative positions, as well as some marketing jobs, the people said. They asked not to be named because the dismissals are not public yet. The new company has 140,000 employees.

CHINA

PPI fall smallest since 2012

Producer prices fell at their slowest rate for more than four years last month, the government said yesterday. The producer price index (PPI), which measures the cost of goods at the factory gate, fell 0.8 percent last month, the National Bureau of Statistics said. It was the smallest fall since April 2012, figures from Bloomberg News showed, and was significantly narrower than July’s 1.7 percent decline.

INDONESIA

Central bank mulls easing

The central bank might ease monetary policy further this month or next month if economic data supports a move, Governor Agus Martowardojo said yesterday. Bank Indonesia, which left its new benchmark interest rate unchanged at 5.25 percent last month, is still in easing mode, Martowardojo told reporters in Jakarta. The bank had lowered borrowing costs four times this year. It may adjust the key seven-day reverse repurchase rate, the reserve requirement ratio or macroprudential instruments, he said.

MACROECONOMICS

ECB raises growth forecast

The ECB on Thursday raised its growth forecast slightly for this year, but lowered its projections for next year and 2018, with ECB president Mario Draghi telling a news conference in Frankfurt that “uncertainties” caused by the Brexit vote would weigh on trade. The bank now expects GDP to grow by 1.7 percent this year, up from a previous projection of 1.6 percent, Draghi said. The eurozone economy should expand by 1.6 percent in each of the following two years, he added, down from the earlier 1.7 percent forecasts for next year and 2018.

STEEL

Indian firm reports loss

Steel Authority of India Ltd, the nation’s biggest producer, reported a fifth consecutive quarterly loss as a global glut of the metal continued to weigh on prices. The stock plunged the most in 11 weeks. The loss widened to 5.36 billion rupees (US$81 million) in the first quarter ended June from 2.48 billion rupees a year ago, the company said on Thursday. The company took a one-time charge of 542 million rupees due to voluntary retirement compensation. Sales fell 3 percent to 90.8 billion rupees.

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