Print

Mail

wiki links

World business quick take

■US economy
Factory orders decline
US factory orders in September fell for the third time in the last four months as the faltering economic recovery restrains manufacturing. Companies are reluctant to boost orders until consumer and business spending strengthen, economists said. Federal Reserve policy makers may offer aid to the economy by lowering their benchmark interest rate when they meet today. "Demand is weak, business profits aren't good, and companies are being very cautious," said Kevin Logan, chief market economist at Dresdner Kleinwort Wasserstein Securities LLC in New York. Factory orders decreased 2.3 percent, reflecting fewer bookings for commercial aircraft, machinery and communications equipment, the Commerce Department said.

■ Airlines
BA's Q2 profit up eightfold
British Airways Plc said fiscal second-quarter profit rose eightfold on job and route cuts. Europe's largest airline expects to return to profit for the full year because of the cost reductions. Net income in the three months ended Sept. 30 rose to ?152 million (US$237 million), or 13.7 pence a share, from ?19 million, or 1.8 pence a share, a year earlier, the airline said in a Regulatory News statement. Sales fell 6.5 percent to ?2.1 billion. "They did better than expected," said Chris Tarry, an analyst at Commerzbank, who has the shares under review with no rating. "They're doing very well on the cost side. Revenue is stable, they say. It may be stable but it's still not going up, so improvements still have to come from the cost side. It's a tough environment."

■ China Telecom
IPO slashed 55 percent
China Telecom Corp, a unit of China's biggest fixed-line phone company, cut its initial public offering by 55 percent to as much as US$1.66 billion after investors balked at the size of the offer last week. China Telecom reduced the number of shares it's selling and kept the share price the same, according to revised sale documents filed with US regulators. Selling less new stock will boost earnings per share, increasing potential returns for investors. Merrill Lynch & Co, Morgan Stanley and other banks failed to win enough demand from investors who soured on telephone companies worldwide after their stocks plunged. With the Communist Party Congress this week in Beijing, China's leaders want to complete the sale, adding to the pressure on the banks, investors said.

■ Airlines
Cheap service pondered
Thai Airways International is considering offering a no-frills service for long-haul flights in a bid to tap the booming budget travel market, a report said yesterday. The flag carrier has appointed a subcommittee to research the viability of launching a low-cost service with no hot meals, minimal entertainment, and no seating assignments, Thai Airways president Kanok Abhiradee said in the Bangkok Post. "I'm closely monitoring the service of Australian Airlines, which calls itself a low-cost carrier, offering intercontinental flights at low-cost," Kanok was quoted as saying. Should Australian Airlines prove successful, Thai could launch a similar service on long-haul flights, Kanok said in the daily. Australian Airlines was launched by Qantas Airways Ltd late last month.

Agencies
This story has been viewed 1493 times.