Tue, May 02, 2017 - Page 10 News List

World Business Quick Take

Agencies

STOCKS

Earnings report boosts Sony

Sony Corp shares yesterday jumped to their highest since May 2015 after a bullish earnings report triggered analyst predictions that the electronics maker could achieve record profit this year. The Tokyo-based company rose 3 percent to ¥3,873 at the close in Tokyo after forecasting operating profit of ¥500 billion (US$4.47 billion) for the fiscal year through March next year, thanks to continued dominance in gaming and strong growth in smartphone-camera chips. While that was mostly in line with the ¥507 billion average estimate, analysts from Goldman Sachs Group Inc to Jefferies Group said Sony could surpass its previous record profit of ¥525.7 billion in 1998. “We expect Sony to achieve its medium-term plan operating profit target for the first time in 10 years and believe it may surpass its record high,” Goldman analysts Masaru Sugiyama and Yusuke Noguchi wrote in a note to clients.

AIRLINES

ANA bullish on earnings

Japan’s largest airline, ANA Holdings Inc, forecasts higher net income than rival Japan Airlines Co (JAL) this fiscal year, the first time, is expected to outperform its rival since JAL exited bankruptcy six years ago. ANA is increasing profit as it adds more international flights following an expansion at Tokyo Haneda Airport, while JAL was restricted in adding new routes until March this year. JAL was the world’s most profitable publicly traded airline in the fiscal year ended March 2014.

REAL ESTATE

Australia price record set

Tech billionaire Scott Farquhar has bought a Sydney waterfront mansion for an Australian record of A$75 million (US$56.28 million), a report said yesterday, after the owners resisted selling the 1863-built home to developers. The co-founder of Australian software giant Atlassian, which floated in the US in late 2015, snapped up the iconic “Elaine” from John Brehmer Fairfax, whose family formerly owned the Sydney Morning Herald. The estate, which stretches down to a harbor beach in Sydney’s prestigious Point Piper, had been in the Fairfax family since 1891. Fairfax reportedly resisted larger offers from developers to subdivide the land. “We’re thrilled with the purchase and honoured to take over the Elaine estate in its entirety from the Fairfax family,” Farquhar, 37, told Fairfax Media.

CANADA

Mortgage fears spread

The escalation of Home Capital Group Inc’s distress last week has led one of its largest former investors to rethink — if only slightly — the prospects of troubles spreading through the rest of the nation. After the alternative-mortgage lender set up a C$2 billion (US$1.46 billion) credit line to offset a run on deposits, Mawer Investment Management Ltd chairman Jim Hall is recalculating the odds of a contagion widening across one of the world’s strongest financial systems. “The probability has gone from infinitesimal to possible — unlikely, but possible,” said Hall, chief investment officer of the Calgary-based money manager, in an interview on Saturday. “If depositors or bondholders start to lose faith in their banks, well then that becomes systemic.” Mawer, which oversees more than C$40 billion in assets, sold about 2.8 million shares, or a 4.3 percent stake, in Home Capital in the past week, joining another Calgary-based money manager, QV Investors Inc, in exiting its investment amid the imbroglio consuming the Toronto-based lender.

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