Wed, Jul 04, 2018 - Page 10 News List

World Business Quick Take

Agencies

CHINA

Exports to US rise 3.8%

Exports to the US last month rose 3.8 percent from last year in yuan terms, 23.8 percentage points lower than the growth rate seen last year, the country’s customs agency said late on Monday. For the first half of this year, exports to the US rose 5.4 percent from last year compared with 19.3 percent for same period last year, the agency said. It did not provide exact values for last month or for January-to-June exports, or say how exports to the US fared in dollar-denominated terms. The escalating US-China trade dispute has driven Chinese stocks and the yuan lower.

AEROSPACE

Boeing, Embraer talk merger

US aerospace giant Boeing and Embraer are in “advanced negotiations” over a much-anticipated tie-up, the Brazilian aircraft manufacturer said on Monday. The proposed merger, which would need the go-ahead from the Brazilian government, would leave Boeing as the majority partner, Brazilian newspaper Valor said. However, Embraer would keep sole control of its military activities. The two aircraft manufacturers had “already prepared the memorandums of understanding and requested a meeting to present” their project to the Brazilian government, Valor said, adding that the two companies expect the meeting to take place “in the next two weeks.”

BANKING

French bank grows in Europe

Societe Generale SA is acquiring the Commerzbank AG business that includes the German lender’s exchange-traded products and market-making operations as it seeks expansion in Europe’s largest economy. The French bank is to take over investments products, flow products and asset management businesses based in Frankfurt, London, Paris, Hong Kong and Zurich, an e-mailed statement said yesterday. Acquiring the unit, which generated about 350 million euros (US$407.74 million) of revenue last year, would boost its position in derivatives and investment products across asset classes, the statement said. The deal also includes an asset management business representing about 13 billion euros and would mean the transfer of about 500 staff.

TELECOMS

Hutchison to assume venture

CK Hutchison Holdings Ltd (長江和記實業) and some of its units agreed to buy out their partner in an Italian mobile-phone joint venture for 2.45 billion euros. The deal is to automatically terminate if completion does not occur within 12 months of the purchase agreement, or on another date that shareholders agree to in writing, CK Hutchison said in a statement in Hong Kong yesterday. Veon is a wireless carrier that owns and operates mobile telecom businesses in Italy under the brands “3” and “Wind” via Wind Tre SpA.

COFFEE

Futures slump extended

Coffee futures extended a slump to a 29-month low as Brazil’s real continued to slide against the US dollar, boosting the appeal of export sales priced in the greenback. Output in Brazil, the world’s top producer and shipper, should rise to a record high this year. The drop in prices might benefit companies such as Starbucks Corp, the world’s biggest coffee chain, and Nestle SA, which makes Nescafe and Nespresso. Arabica coffee for September delivery on Monday fell 3 percent to close at US$1.1165 a pound on ICE Futures US in New York, the biggest drop for a most-active contract since Oct. 11.

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