Russia rejects EU car deal
Russia on Tuesday rejected a EU attempt to get the WTO to settle their bitter dispute over car import duties imposed by Moscow. The WTO said that Moscow’s delegation had blocked the EU’s call for the creation of a panel to rule on whether it was breaking global trade rules due to its controversial recycling fee, which applies only to imported vehicles. However, the EU has the option of making a second request, which under WTO rules cannot be blocked. Disputes at the 159-nation WTO are often highly complex and technical, and can last for several years.
Inflation rises 1.2 percent
Inflation rose by a stronger-than-expected 1.2 percent in the July-September period compared to the previous quarter, official data showed yesterday, reducing expectations of further monetary easing this year. The Australian Bureau of Statistics data showed the consumer price index was up 2.2 percent through the year to last month — above economists’ expectations of a 1.8 percent annual rise. The inflation data is closely watched by the Reserve Bank of Australia which has brought the official interest rate to the historic low of 2.5 percent in a bid to jumpstart other sections of the economy as the Asia-driven mining boom slows.
Corning announces tie-up
Corning Inc on Tuesday announced a new tie-up with a Samsung Electronics subsidiary that will boost the glassmaker’s earnings immediately and guarantees that it will supply Samsung with liquid crystal display glass through 2023. Corning, the maker of Gorilla Glass screens for smartphones and tablets, will acquire the South Korean company’s 43 percent stake in Samsung Corning Precision Materials, an LCD glass joint venture in Korea, and will buy out other minority shareholders. The joint venture makes glass substrates, the key material in high-end LCD televisions, monitors and mobile devices. The transactions are expected to close in the first quarter of next year.
Heineken earnings to fall
Heineken NV is warning that its core earnings this year will fall modestly as business conditions, especially in central and eastern Europe, are worse than it expected. Previously the Dutch brewer said underlying earnings, which strip out effects of acquisitions, would be “broadly in line” with a year earlier. Heineken’s share price fell 3 percent at the open. The warning came as Heineken reported a 15 percent fall in third quarter net profit to 483 million euros (US$664 million), due in part to the stronger euro. Chief executive Jean-Francois van Boxmeer said yesterday that the company will respond by cutting more costs.
Citroen revenue falls
PSA Peugeot Citroen says its revenue continued to fall in the third quarter as shrinking European car markets and production disruptions by workers upset at a planned factory closure hurt the French automaker. The maker of the Peugeot 208, Citroen C4 and other hatchbacks and sedans said its revenue for the July-September period slumped 3.7 percent to 12.1 billion euros. Peugeot Citroen’s automobile division sales fell 5.8 percent to 8 billion euros. In a statement yesterday the company blamed weak European markets as well as disruption to its C3 production line at a factory near Paris slated for closure. The company is in the midst of plans to shut factories and shed up to 8,000 jobs.