Fri, Jun 08, 2018 - Page 10 News List

World Business Quick Take

Agencies

GERMANY

Industry continues to decline

Industrial orders fell for firms for the fourth month in a row in April, official data showed yesterday, confounding analysts’ hopes for a recovery. New contracts dropped 2.5 percent month-on-month, adjusting for price, seasonal and calendar effects, the federal statistics authority Destatis said. The result disappointed analysts’ forecasts of a 0.7 percent increase compared with last month.

INDIA

Repurchase rate increased

The Reserve Bank of India raised its benchmark interest rate for the first time since 2014 and set the stage for a gradual tightening cycle as economic growth rebounds from a four-year low and price pressures build. The six-member Monetary Policy Committee voted unanimously to increase the repurchase rate to 6.25 percent from 6 percent on Wednesday, as predicted by 14 of 44 economists in a Bloomberg survey. The central bank kept its policy stance neutral, which suggested the move was a “dovish hike,” Nomura Holdings Inc said.

INVESTMENT

Quarterly guidance a ‘no-no’

Warren Buffett and Jamie Dimon are doubling down on their plea for corporations to stop providing quarterly earnings guidance. Buffett and Dimon, the chief executive officers of Berkshire Hathaway Inc and JPMorgan Chase & Co respectively, said in a joint Wall Street Journal opinion piece that they are encouraging all public companies to consider moving away from the practice, arguing that it can stifle long-term investments. “Quarterly earnings guidance often leads to an unhealthy focus on short-term profits at the expense of long-term strategy, growth and sustainability,” they wrote.

AUTOMAKERS

Volvo bets on driverless cars

Volvo Cars is betting that driverless vehicles will make up one-third of its deliveries by the middle of the next decade, setting the auto industry’s most ambitious target yet for the technology. Half of the cars the Swedish company offers would be available through its subscription service, creating links to more than 5 million consumers and generating new sources of revenue, Volvo said yesterday.

CRYPTOCURRENCY

Coinbase to buy brokerage

Coinbase Inc, one of the largest cryptocurrency exchanges, agreed to buy a registered broker-dealer as it races to build a trading platform for the surging number of digital tokens deemed to be securities. The San Francisco-based company announced a trio of acquisitions on Wednesday, including a takeover of Keystone Capital Corp, firm overseen by the US Financial Industry Regulatory Authority. Subject to US regulatory approval, Coinbase plans to use licenses it gets in the deals to offer customers securities that trade on a blockchain ledger.

BANKING

Ex-Anglo Irish CEO guilty

The former chief executive officer of Anglo Irish Bank was on Wednesday found guilty of fraud and false accounting at the institution whose rapid fall from grace epitomized the Irish financial collapse. David Drumm, 51, had denied conspiring in 2008 to inflate deposits in the bank by 7.2 billion euros (US$8.5 billion at the current exchange rate), at the start of the crisis that would see Anglo Irish taken into government hands. He was accused of transferring huge sums between his bank and another financial institution to make the bank’s balance sheet look better than it was.

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