World Business Quick Take

Agencies

Wed, Dec 10, 2014 - Page 15

STEEL

WTO ruling favors India

The WTO on Monday upheld in part a judgement that the US broke global trade rules by imposing import duties on Indian steel products, in a mixed ruling that also found elements in Washington’s favor. The WTO’s Appellate Body reversed some of the findings made by the organization’s dispute settlement panel in July and upheld others. It found in favor of both sides in technical elements of the dispute, but concluded that the US was “inconsistent with its obligations” and should be brought into line. India filed its complaint at the WTO in 2012, after Washington imposed duties of nearly 300 percent on imports of products including steel pipes.

INDIA

Current account gap widens

India’s current account deficit widened more than estimated to its largest since the quarter through June last year as exports slowed and gold imports surged. The July-September shortfall in the broadest measure of trade widened to US$10.1 billion from US$7.8 billion the previous quarter, the Reserve Bank of India said in a statement on Monday. The gap amounts to 2.1 percent of GDP, lower than the level the central bank considers sustainable. The current account shortfall is forecast to keep widening in the next two quarters, Credit Analysis & Research Ltd economist Madan Sabnavis said, citing slowing exports.

BANKING

NY sues Deutsche Bank

US federal authorities in New York have sued Deutsche Bank and other financial entities, alleging they dodged more than US$100 million in taxes with some fancy financial footwork. The lawsuit was filed on Monday in Manhattan. It seeks to recover more than US$190 million in taxes, penalties and interest. Manhattan US Attorney Preet Bharara said Deutsche Bank used shell companies to make tax liabilities disappear nearly 15 years ago. Deutsche Bank spokeswoman Renee Calabro said the bank addressed the government’s concerns about the transaction in a 2009 agreement with the US Internal Revenue Service. She said the government had abandoned its theory the bank was liable and it is unclear why it is pursuing the issue again.

RETAIL

Tesco warns on profit

Troubled British grocer Tesco has warned on full-year profit again, slashing its full-year outlook by almost one-third in the latest downgrade sparked by an accounting scandal and intense competition in its home market. The firm, the world’s No. 3 retailer, yesterday said that on the basis of the changes and investments it has made to date it now anticipates group trading profit for the financial year ending February next year will not exceed £1.4 billion (US$2.2 billion). According to its Web site, analysts previously forecast a consensus group trading profit of £1.94 billion for the year.

FINANCE

CLSA plans expansion

CLSA Ltd, the brokerage owned by Citic Securities Co (中信證券), plans to expand into investment banking globally to build on its existing research and brokering business. Hong Kong-based CLSA plans to hire bankers next year to provide mergers advisory, equity capital markets services and the provision of debt to companies, said Andrew Low (羅安君), the incoming head of the firm’s international investment banking unit. He declined to give details on the expansion. CLSA has more than 1,500 employees in 21 locations across Asia, Europe and the US.