Fri, Sep 15, 2017 - Page 10 News List

World Business Quick Take

Agencies

HONG KONG

‘Wise’ to trade in yuan

The currency system cannot realistically serve as a conduit between China and the rest of the world, former Monetary Authority chief executive Joseph Yam (任志剛) said yesterday. The territory’s status as a global financial center makes its economy especially vulnerable to volatile fund flows — a dilemma that will only deepen as China relaxes its capital controls, Yam wrote in a blog post. It might be wise to let local stocks be priced and traded in the yuan as well, he said.

MONGOLIA

IMF to delay bailout funds

The IMF is to delay disbursing bailout funds after its prime minister and Cabinet were toppled in a parliamentary no-confidence vote last week, the fund said yesterday. The cash-strapped and debt-ridden nation was granted a US$5.5 billion rescue package from the IMF and other partners in May. The IMF office in Mongolia said a review of the bailout package would be held after a new administration is formed.

RETAIL

Hermes posts record profits

Luxury goods maker Hermes yesterday said that good sales momentum across all of its divisions and in all regions helped it achieve a record profitability in the first six months. Growth in leather goods and saddlery was “sustained” and the perfumes division also booked an increase in sales, the company said. Overall, group revenue rose by 11 percent to 2.713 billion euros (US$3.23 billion) in the period from January to June, while operating profit was up 13 percent at 931 million euros and net profit climbed by 11 percent to 605 million euros.

UNITED STATES

Deficit higher than year ago

The federal government recorded a slightly larger deficit last month than a year ago, while the deficit through the first 11 months of this budget year is well above the same period last year. The Department of the Treasury said that last month’s deficit totaled US$107.7 billion, up 0.5 percent from a deficit of US$107.1 billion a year ago. With one month to go in this budget year, the deficit totals US$673.7 billion, 8.8 percent above the deficit for the same period a year ago, it said.

INDIA

Larger oil area for auction

The nation is to offer larger areas with higher oil and natural gas reserves in the next auction of discovered fields later this year as Prime Minister Narendra Modi’s government seeks to curtail rising crude oil imports. “The next round would be meatier, bigger and players can expect even better fields,” said Atanu Chakraborty, head of oil regulator Directorate-General of Hydrocarbons. It last year offered 67 small oil and gas fields holding about 625 million barrels of reserves in its first auction in six years.

INSURANCE

Storms to take toll on profits

Munich Re, the world’s largest reinsurer, said that storms led by Hurricanes Harvey and Irma will probably wipe out third-quarter profits and threaten the company’s ability to meet its full-year earnings target. “These two events are expected to result in high insured losses, which the market and Munich Re are unable to quantify at the moment,” the company said on Wednesday in a statement. It had previously given guidance of this year’s profit of 2 billion euros to 2.4 billion euros.

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