Tue, Sep 20, 2016 - Page 10 News List

World Business Quick Take



Provinces to pay carbon tax

The government will impose a carbon price on provinces that do not adequately regulate emissions by themselves, Minister of the Environment Catherine McKenna said on Sunday without giving details on how the government will do so. McKenna said the new emissions regime would be in place sometime next month, before a federal-provincial meeting on the matter. She only said the government would have a “backstop” for provinces that do not comply, but did not address questions on penalties for defiance. The provinces, which enjoy significant jurisdiction over the environment, have been wary of Ottawa’s intentions and have said they should be allowed to cut carbon emissions their own way.


Rolls-Royce to cut top jobs

Rolls-Royce Holdings PLC is eliminating more than 200 positions from its management team as chief executive officer Warren East extends a wide-reaching restructuring of the embattled enginemaker. The additional cuts brings the total trimming of management positions under East’s reign to more than 600, a Rolls-Royce spokesman said in a statement on Sunday in response to a Financial Times report outlining the plans. About 270 of those positions had been phased out as of July 28, East said at the company’s half-year earnings report. Rolls-Royce has been struggling amid a downturn in demand for marine engines and servicing revenues from its business jet turbines. The company targets savings of between £30 million and £50 million (US$39 million and US$65 million) this year as part of a broader restructuring effort aimed at cutting spending by £200 million by the end of next year.


Glitch suspends trading

Trading in Australian stocks was suspended for a second time yesterday after starting more than an hour late because of a technical glitch, with investors unable to buy and sell shares as they braced for US and Japan central bank meetings this week. ASX Ltd said it was working to fix the problem. The stock-exchange operator delayed the normal 10am equity market opening until 11:30am due to an issue relating to a component that allows it to manage individual stocks, Matthew Gibbs, a spokesman for the ASX in Sydney said earlier, adding that the company was working with its technology vendor NASDAQ Inc to prevent a recurrence. Australia’s equity market is worth US$1.1 trillion, the sixth-largest in the region.


ECB urged to act on rates

The European Central Bank (ECB) must not allow low interest rates and monetary stimulus to last indefinitely, the head of Germany’s Bundesbank said yesterday. “Under no circumstances can interest rates remain so low for longer than is absolutely necessary with regard to price stability,” Bundesbank president Jens Weidmann told a group of European newspapers including the Sueddeutsche Zeitung. “The risks of ultra-loose monetary policy become larger the longer the phase of low interest rates lasts,” he said. The ECB’s headline main refinancing rate has stood at zero since early this year, while its deposit rate is in negative territory — meaning banks pay to park their money in its coffers. Combined with the central bank’s offers of cheap loans to banks and “quantitative easing” policy of buying state and corporate debt, low rates are supposed to drive down the cost of borrowing for businesses and households, which should stimulate growth in the economy.

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