Wed, Feb 22, 2017 - Page 10 News List

World Business Quick Take

Staff writer, with agencies

CHIPMAKERS

Toshiba sets price for unit

Toshiba Corp is looking to raise at least ¥1 trillion (US$8.8 billion) from the sale of its memorychip business and will aim to complete the transaction by March next year, according to a person familiar with the matter. The deal will likely result in Toshiba relinquishing majority control over the unit, which could be valued as high as ¥2 trillion, the person told Bloomberg, asking not to be identified as the matter is private. A Toshiba spokesman declined to comment.

FOREIGN EXCHANGE

Yen forecast to slump

The yen will slump to ¥120 per US dollar in six months as the US Federal Reserve raises US interest rates, but that is about as weak as it will get, former IMF economist Stephen Jen said in an interview with Bloomberg last week. The currency will rebound to ¥100 by early next year as the Bank of Japan’s (BOJ) policies of controlling yields and adding stimulus through bond purchases reach a limit, said Jen, chief executive officer at hedge fund Eurizon SLJ Capital Ltd in London. “The BOJ is closer to the limits of their unconventional monetary policy than any other central bank,” Jen said. Once all its options are exhausted, the yen will return to its fair value of about ¥90 per dollar, he said.

EUROZONE

Economic activity picks up

Euroarea economic activity this month unexpectedly rose to the highest level in almost six years as the region’s recovery became more broad-based and inflationary pressures continued to intensify. A composite purchasing managers’ index climbed to 56.0 from 54.4 last month, putting the region on track for quarterly growth of 0.6 percent, IHS Markit said yesterday. Economists had predicted the gauge would slip to 54.3. Inflows of new orders and surging optimism among firms point to a potentially stronger expansion in the coming months, the London-based company said.

INVESTMENT

China plans new asset rules

China’s financial regulators are working together to draft sweeping new rules for the country’s rapidly expanding asset-management products that aim to make it clear there is no government guarantees on such investments, according to people familiar with the matter. The draft rules would apply to products issued by banks, insurers, brokerages and other financial institutions, said the people, who asked not to be identified. New rules will be phased in after existing products mature, and would only apply to new issues, they added.

MINING

Anglo’s profits doubles

Anglo American PLC, the world’s biggest producer of diamonds and platinum, said profit more than doubled last year as commodity prices soared, meaning it no longer needs to sell assets to reduce debt. Underlying earnings were US$1.72 a share in the that year on ended Dec. 31, compared with US$0.64 in 2015, Anglo said in a statement. That compares with an average analyst estimate of US$1.39 a share. Net debt was reduced to US$8.5 billion, well below its target of US$10 billion. Bigger profits and a stock price that tripled last year show Anglo’s turnaround program, unveiled during the depths of the commodities crisis, has worked.

TECHNOLOGY

Uber picks Holder for probe

Uber Technologies Inc has appointed former US attorney general Eric Holder to lead an independent review into claims of sexual harassment by a former software engineer.

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