Fri, May 25, 2018 - Page 10 News List

World Business Quick Take

Agencies

TECHNOLOGY

Lenovo reports annual loss

Lenovo Group Ltd (聯想) yesterday said it recorded a US$189 million net loss over its full fiscal year due largely to a one-time charge, adding that it was planning an overhaul to broaden its appeal. The Beijing-based company also reported a 69 percent annual decline in profit in its fourth quarter ending on March 31 to US$33 million. Revenue in the fourth quarter increased 11 percent year-on-year to 10.6 billion, the first double-digit increase in 10 quarters, while full-year revenue was up 5 percent.

LUGGAGE

Samsonite shares stumble

Samsonite International SA, the world’s largest branded-luggage maker, tumbled the most since 2012 after short-seller Blue Orca Capital questioned the company’s accounting and corporate governance. Samsonite concealed slowing growth with debt-funded acquisitions and inflated profit margins with dubious accounting linked to its takeovers, Blue Orca alleged in a report yesterday. Shares of the Hong Kong-listed company slumped 9.8 percent to HK$30.70 before trading was halted at 11:18am. Blue Orca said the stock is worth HK$17.59.

MACROECONOMICS

Singapore’s growth solid

Singapore’s economy remained on solid footing in the first quarter, with the government expressing more certainty of a steady pace of between 2.5 and 3.5 percent for this year as global trade risks and tightening financial conditions allow for a patient monetary policy. GDP rose at a seasonally adjusted, annualized rate of 1.7 percent from the prior three months, the Ministry of Trade and Industry said yesterday, higher than the government’s previous projection of 1.4 percent. GDP expanded 4.4 percent in the first quarter from the same period last year.

BANKING

Fed signals June rate hike

The key interest rate is likely to be raised “soon,” the US Federal Reserve said on Wednesday in a clear signal of a rate hike coming next month as financial markets expect. Fed officials cited the strength of the economy and solid hiring trends, as well as inflation inching higher at long last. However, the Fed would continue to move only gradually, even if inflation rises “modestly” above its 2 percent target, the minutes of the May 1 and May 2 meeting of its policy-setting Federal Open Market Committee showed.

BANKING

Turkey raises rate to 16.5%

The Central Bank of the Republic of Turkey on Wednesday sharply raised its key lending rate to try to stem an outflow of capital from the country, control inflation and support the beleaguered currency. The Turkish lira regained some of its value after the bank’s monetary policy committee held an emergency meeting and announced that it was raising the rate from 13.5 percent to 16.5 percent. The value of the lira responded by rising to about 4.58 per US dollar, down about 5 percent from Tuesday.

TECHNOLOGY

Uber end Arizona test

Uber Technologies Inc is pulling its self-driving cars out of Arizona in a reversal triggered by the recent death of woman who was run over by one of the company’s robotic vehicles while crossing a darkened street in a Phoenix suburb. The decision announced on Wednesday means that Uber will not be bringing back its self-driving cars to the streets to Arizona, eliminating about 300 jobs.

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