Thu, Feb 28, 2019 - Page 10 News List

World Business Quick Take

Agencies

AVIATION

Boeing sells 110 planes

Vietnam’s Bamboo Airways and VietJet Aviation JSC have signed deals to buy 110 aircraft from Boeing Co during US President Donald Trump’s visit to Hanoi for a summit with North Korean leader Kim Jong-un. Bamboo agreed to purchase 10 787-9 Dreamliners for about US$3 billion, while VietJet’s order is for 100 737 Max planes valued at US$12.7 billion, Boeing said yesterday. However, VietJet’s 100-plane commitment was announced at the Farnborough Air Show in England last year. The agreements were signed in the presence of Trump and Vietnamese President Nguyen Phu Trong. Vietnam’s airlines are expanding their fleets as the region’s growing economies are spurring many to fly for the first time. Demand is also expected to climb after US regulators last month approved the nation’s air-safety system, making its airlines eligible to begin direct flights to the US.

RESTAURANTS

Papa John’s sales decline

Papa John’s closed out a tough year on a weak note, but says it expects improvement this year. The Louisville, Kentucky-based pizza chain on Tuesday said that sales at established locations in North America dropped 8 percent in the fourth quarter last year compared with the same period the previous year. International same-store sales were down 3 percent. Papa John’s lost US$14 million, or US$0.44 per share, in the fourth quarter. Excluding one-time items, the company earned US$0.15 per share. Analysts had expected US$0.17. Papa John’s said its fourth-quarter revenue fell 20 percent to US$374 million.

EQUITIES

Emerging markets riskier

Investors who put their money in emerging-market equities back in 1900 have failed to match the returns of their counterparts in advanced economies, according to a Credit Suisse-backed study by London Business School. One US dollar invested in developed markets in 1900 was worth US$11,821 by last year, compared with just US$3,745 in emerging markets. Investors can blame World War II and the Chinese revolution. From 1945 to 1949 equities lost 98 percent of their value in Japan, which was not classified as a developed market until 1967, while their counterparts in China were all but wiped out financially by the Chinese Communist Party’s victory in 1949. It is a different story since 1950, though, as emerging markets have generated annual returns of 11.7 percent, compared with 10.5 percent for advanced economies.

AUTOMAKERS

Hyundai to invest US$40bn

Hyundai Motor Co joined automakers pledging massive spending in the years ahead to address the industry’s transformation and fend off new competition from the likes of Tesla Inc. The South Korean maker of Sonata sedans and Tucson SUVs plans to invest 45.3 trillion won (US$40 billion) in the next five years in development of electric and autonomous vehicles, as well as transportation services. The average annual spending would be 58 percent more than over the past five years, the firm said.

PHARMACEUTICALS

Mylan shares fall 9.2%

Shares of Mylan NV, one of the world’s biggest makers of generic drugs, fell in late trading on Tuesday after it forecast declining earnings this year and said that its North American sales slowed in the fourth quarter last year. The company sees adjusted earnings per share for the year of US$3.80 to US$4.80, below the US$5.02 average of Wall Street estimates. Mylan shares fell 9.2 percent.

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