Tue, Jun 26, 2018 - Page 10 News List

World Business Quick Take

Agencies

TAXATION

Resistance to Australian cut

Australian Prime Minister Malcolm Turnbull faces a fresh blow in parliament this week, with the Senate yesterday poised to reject his government’s plans for a corporate tax cut after several independent lawmakers vowed to vote against the measure. The government has proposed to cut the corporate tax rate from 30 percent to 25 percent in a bid to boost the economy less than a year away from the next election. Although the government won backing for its centerpiece A$144 billion (US$106 billion) package of income tax cuts, lawmakers are resistant to extending tax breaks after a public inquiry exposed alleged misconduct in the financial sector.

GERMANY

Confidence ebbing

Business confidence ebbed this month to its lowest in more than a year, suggesting the mood among company executives in Europe’s biggest economy is darkening as the world edges toward a full-blown trade war. Activity in all four economic sectors measured by the Munich-based Ifo institute in the survey — manufacturing, services, trade and construction — fell, adding to signs the economy is cooling after a boom last year. Ifo said its business climate index fell to 101.8, the lowest level since May last year. The reading was slightly stronger than predicted in a Reuters consensus forecast of 101.7. “The tailwind enjoyed by the German economy is [easing],” Ifo head Clemens Fuest said. However, economists ruled out a recession and predicted the economy would continue to grow, albeit at a slower pace than last year’s 2.5 percent.

TRANSPORTATION

Uber in court in London

Uber yesterday went to court in the UK to overturn a decision stripping it of its license in London after being ruled unfit to run a taxi service in its most important European market. Regulator Transport for London (TfL) shocked the Silicon Valley firm in September last year by refusing to renew its license, citing failings in its approach to reporting serious criminal offences and to background checks on drivers. The appeal is due to be heard over three days and is to hear from witnesses including Uber’s UK chairman Laurel Powers-Freeling, UK head of cities Fred Jones and TfL’s Interim Director of Licensing Helen Chapman. The company is seeking an 18-month license to prove to London authorities that it has reformed.

TRANSPORTATION

Didi Chuxing in Melbourne

Chinese ride-sharing giant Didi Chuxing (滴滴出行) has intensified its drive for global business, yesterday launching in Melbourne as it joins rivals Uber, Taxify and Ola in Australia’s taxi market. Didi Chuxing’s latest expansion is part of attempts to rival US behemoth Uber. “Didi’s entry into Australia marks a new milestone in its outreach to global communities,” it said.

BANKING

Commonwealth streamlines

Commonwealth, Australia’s biggest bank, yesterday announced plans to spin off its wealth management and mortgage-broking arms as it tries to streamline operations and focus on core businesses. It is also considering offloading its general insurance business. The demerged business, CFS Group, is to include Commonwealth’s Colonial First State, Colonial First State Global Asset Management (CFSGAM), Count Financial, Financial Wisdom and Aussie Home Loans businesses. The new entity will list on the nation’s stock exchange next year.

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