Citigroup Inc, the largest US bank, rose on its first day of trading in Tokyo as chief executive officer Charles Prince resigned to take responsibility for losses stemming from US mortgage defaults.
The bank's shares closed ?220 (US$1.92), or 5.1 percent, higher at ?4,550 after rising as much as ?4,580. About 10,000 shares were traded compared with 138.7 million in New York on Nov. 2 when the stock slumped to a four-year low.
The US bank listed in Tokyo after buying Nikko Cordial Corp, Japan's third-largest brokerage, this year.
"It's hard to be optimistic on the business outlook despite the strength we're seeing in the stock today," said Naoki Fujiwara, who helps oversee US$3.2 billion at Shinkin Asset Management Co in Tokyo. "The direct impact of subprime problems seems to be fading but they have yet to deal with ripple effects from the turmoil."
Citigroup bought 61 percent of Nikko Cordial for US$7.7 billion in April, and increased the stake to 68 percent in June. It said last month it's buying the rest and will delist Nikko shares after expected completion of the purchase in January.
Nikko gives Citigroup about 110 branches in the world's second-largest economy, narrowing a gap with Mitsubishi UFJ Financial Group Inc, Japan's biggest publicly traded bank. Citigroup incorporated its bank unit locally earlier this year, making it a Japanese bank for regulatory purposes.
The takeover also enables Citigroup to expand investment banking in Japan through its joint venture with Nikko, as well as offer wealth management services. The US group first listed in Japan in 1973 before withdrawing in 1998 when Citicorp merged with Travelers Group Inc.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source