Tue, Jul 09, 2019 - Page 10 News List

World Business Quick Take



Machinery orders down

Machinery orders in May fell for the first time since January and at a faster rate than expected, casting doubt on the strength of capital investment over the coming months amid a global economic slowdown. Core machinery orders, a leading indicator of capital expenditure, in May fell 7.8 percent from April, its biggest fall in eight months, Cabinet Office data showed yesterday. Orders slipped 3.7 percent from the previous year. The latest data show that machine orders fell in both the manufacturing and non-manufacturing sectors.


Forex holdings increase

Foreign-currency holdings rose for a second month amid potential capital inflows and positive valuation effects, hitting the highest level in more than a year. Reserves last month climbed to US$3.119 trillion from US$3.101 trillion in May, the People’s Bank of China said yesterday. The value of reserves rose due to a weaker US dollar and higher international financial asset prices, the State Administration of Foreign Exchange said in a statement.


Broadcom prepared to buy

Broadcom Inc has secured financing and identified cost savings for the acquisition of Symantec Corp in an all-cash deal, people familiar with the matter said. The chipmaker received lending commitments from several banks and sees annual synergy potential of about US$1.5 billion, the people said. Separately, Symantec has drawn interest from its former chief executive officer Greg Clark, who has teamed up with buyout firms Advent International and Permira Holdings in an attempt to muster a competing offer, the people said.


Effect of tax hike negligible

The government’s decision to raise duties on gasoline and diesel is unlikely to threaten the inflation outlook, keeping alive expectations of more interest rate cuts from the central bank. Minister of Finance Nirmala Sitharaman’s decision on Friday to increase federal taxes on transport fuels by 2 rupees ($US0.17) a liter would have an impact of less than 10 basis points on headline inflation, Nirmal Bang Equities Pvt economist Teresa John said. The second-round effects could push up the inflation rate by slightly more than 10 basis points.


Vehicle sales recover

Passenger-vehicle sales showed signs of recovery from a historic rut as dealers offered discounts to clear inventory before new emissions rules kicked in. Retail sales of sedans, sport utility vehicles, minivans and multipurpose vehicles last month rose 4.9 percent to 1.8 million units from a year earlier, according to preliminary numbers from the China Passenger Car Association yesterday. That is the first increase since May last year for the world’s biggest market.


Flyadeal scraps MAX deal

Saudi Arabian budget carrier Flyadeal reversed a commitment to buy as many as 50 Boeing Co 737 MAX jets, becoming the first airline to officially drop the aircraft since its grounding following two deadly crashes. Flyadeal would operate an entirely Airbus SE fleet, the company said in a statment on Sunday, taking as many as 50 A320neo-family airplanes from Boeing’s European rival. Flyadeal is to take delivery starting 2021 of 30 Airbus A320neo aircraft, with an option for an additional 20 aircraft from the A320neo family.

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