Sat, Jun 17, 2017 - Page 10 News List

World Business Quick Take

Agencies

CHINA

Cash supply up to year high

The central bank boosted the supply of cash in the financial system to the most since January, with demand surging amid a seasonal funding squeeze. The People’s Bank of China injected a net 410 billion yuan (US$60.2 billion) through reverse-repurchase agreements this week, data compiled by Bloomberg show. The benchmark seven-day repurchase rate yesterday fell 12 basis points to 2.88 percent, headed for the second weekly decline in a row, according to a weighted average. The addition of funds is to help alleviate concern that an official deleveraging campaign would exacerbate a cash shortage at the end of the month caused by regulatory checks on banks.

JAPAN

Lax monetary policy to stay

The Bank of Japan has opted to keep its lax monetary policy intact, while noting signs of improvement. A statement issued yesterday by the bank said it expects demand to accelerate, supporting a “moderate expansion.” The central bank’s key interest rate remains at minus 0.1 percent. While the US Federal Reserve is raising rates, Bank of Japan Governor Haruhiko Kuroda appears determined to persist with a policy of “qualitative and quantitative easing” to help attain an inflation rate of about 2 percent. The statement said inflation expectations in Japan remain in a “weakening phase,” suggesting major policy changes are unlikely in the near future.

UNITED KINGDOM

Interest frozen at 0.25%

The Bank of England on Thursday froze interest rates at a record-low 0.25 percent as expected, but revealed that three policymakers surprisingly called for a hike to counter surging inflation. The bank’s monetary policy committee voted five to three in favor of keeping its key interest rate at 0.25 percent, where it has stood since August last year. Committee members Ian McCafferty and Michael Saunders joined Kristin Forbes in voting for an increase to 0.5 percent, meeting minutes showed.

AUTO PARTS

Takata to file bankruptcy

Takata Corp, the Japanese company facing billions of US dollars in liabilities stemming from its defective airbag inflators, is preparing to file for bankruptcy as early as next week as it works toward a deal for financial backing from US auto parts maker Key Safety Systems Inc, sources said on Thursday. A person briefed on the matter said that Key was expected to acquire Takata assets as part of a restructuring in bankruptcy. The Nikkei business daily reported that a new company created under Key would purchase Takata operations for about ¥180 billion (US$1.6 billion) and continue supplying airbags, seat belts and other products, leaving liabilities behind in a separate entity.

AUTOMAKERS

European car sales up

European car sales bounced back last month after a slump in April, as a brightening economic outlook and political stability in France helped the sector get back on the recovery path. Industry-wide registrations rose 7.7 percent to 1.43 million vehicles last month after plunging 6.8 percent in April, the Brussels-based European Automobile Manufacturers’ Association said yesterday in a statement. Demand was led by Fiat models such as the 500 and Panda city cars as well as Mercedes-Benz vehicles like the revamped E-Class sedan. German car sales posted the strongest gain among large economies, with a 13 percent jump in registrations. Sales in France increased 8.9 percent, while demand in Italy rose 8.2 percent.

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