Fri, May 19, 2017 - Page 10 News List

World Business Quick Take

Agencies

TECHNOLOGY

Cisco announces job cuts

Cisco Systems Inc said on Wednesday that it is laying off 1,100 more workers, deepening job losses at the Internet gear maker, which is battling declining revenue. The new round of layoffs comes on top of the 5,500 jobs Cisco announced it was cutting in August last year. That amounted to about 7 percent of its workforce at the time. The San Jose, California-based company on Wednesday reported US$11.94 billion in revenue for its fiscal third quarter that ended last month. That was down from US$12 billion a year earlier. It said it expects revenue to dip 4 to 6 percent in the quarter ending in July compared with a year ago.

MACROECONOMICS

Jakarta seeks higher growth

Indonesian Minister of Finance Sri Mulyani Indrawati said boosting economic growth above 5.6 percent next year was “very critical” and she hoped the government would not need to cut spending this year to keep the budget deficit in check. Exports are rebounding quite strongly and “that’s encouraging,” Indrawati said on Wednesday in an interview on the sidelines of the Islamic Development Bank’s annual meeting in Jeddah, Saudi Arabia. The global outlook has improved and domestic demand is holding up, she said. The government is targeting growth of 5.1 to 5.2 percent this year and estimates the budget deficit would reach 2.4 percent of GDP, below the 3 percent cap.

MACROECONOMICS

Australian employment up

Australia’s jobless rate fell last month, adding to the previous month’s strong employment gains, reinforcing expectations that the central bank would not cut interest rates further. Employment rose by 37,400 jobs from March and the jobless rate fell to 5.7 percent last month, the lowest since January, according to the latest government data released yesterday. Full-time jobs fell by 11,600, while part-time employment rose by 49,000, data showed. The labor participation rate held at 64.8 percent versus the 64.7 percent forecast by analysts.

REAL ESTATE

Price growth in China eases

Growth in China’s housing prices eased last month after authorities imposed more restrictions on property purchases. New home prices, excluding state-subsidized housing, rose last month in 58 of the 70 cities tracked by the government, compared with 62 in March, the National Bureau of Statistics said yesterday. Prices fell in eight cities and were unchanged in four, the data showed. On an annual basis, new home prices rose in 69 cities last month, compared with 68 in March. Meanwhile, foreign direct investment into China fell 0.1 percent to 286.41 billion yuan (US$41.56 billion) in the first four months of this year from the same period a year earlier, the Ministry of Commerce said yesterday.

AUTOMAKERS

Volvo to abandon diesel

Volvo Car Co might stop developing new diesel engines due to high costs triggered by stricter regulations, the head of Swedish carmaker said in an interview with the Frankfurter Allgemeine Zeitung published on Wednesday. “From today’s perspective we will no longer develop any new generation diesel engines,” chairman Hakan Samuelsson said. The company will continue building its latest model of diesel engines, first developed in 2013, but Samuelsson said it would be too costly to invest in research for a new motor. He said it was unclear how long the current diesel program would run, but the newspaper estimated that it could end in 2023.

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