Print

Mail

wiki links

World Business Quick Take

■ japan

BOJ nominee rejected

Lawmakers voted down yesterday the nomination of former finance ministry bureaucrat Koji Tanami as Bank of Japan (BOJ) chief, leaving that post vacant for the first time since World War II. The ruling coalition on Tuesday proposed that Tanami, 68, now governor of Japan Bank for International Cooperation, head the central bank. The opposition-controlled upper house of parliament rejected Tanami in a 125-112 vote, the second time in a week it rejected a government-backed candidate for Bank of Japan head. The five-year term of bank governor Toshihiko Fukui ended yesterday.



■ aviation

Delta offers to buy out staff

Delta Air Lines said on Tuesday it was offering buyouts to 30,000 employees, more than half its work force, in a major overhaul of operations as it struggles with record-high fuel prices. Delta, in a filing with the Securities and Exchange Commission, said it was offering voluntary departure packages to the 30,000 non-pilot employees. It also said it was reducing domestic capacity by an additional 5 percent by August, resulting in a 10 percent year-over-year domestic reduction. The overhaul was expected to generate US$550 million in cost savings from operations, US$150 million more than a prior target.



■ banking

Deutsche to raise holding

Deutsche Bank said yesterday it would increase its stake in Hua Xia Bank (華夏銀行) of China to 13.7 percent from 9.9 percent at a cost of 352 million euros (US$550 million). The deal was subject to regulatory approval, Deutsche Bank said in a statement. The increase follows a private placement of Hua Xia Bank shares to its three largest shareholders worth a total of 11.6 billion yuan (US$1.6 billion), the statement said. In 2006, Deutsche Bank bought a 9.9 percent stake in Hua Xia Bank and now has two seats on the Chinese lender's board.



■ automobiles

US sales expected to fall

A leading auto information firm on Tuesday said it had lowered its forecast for new vehicle sales in the US this year by nearly 5 percent to the lowest levels since 1994. J.D. Power and Associates said declining consumer confidence and spending, along with turbulence in financial markets, had driven its revised forecast from 15.7 million cars and light trucks to 14.95 million. J.D. Power said the industry's slow performance in January and February also prompted it to update the forecast that it released late last year. Most automakers have predicted sales of about 16 million for the full year. Earlier this month, General Motors Corp was sticking with its US sales forecast in the low 16 million range.



■ negotiations

Apple explores iPod options

Apple Inc is in talks with major music companies to offer customers free access to its entire iTunes music library in exchange for paying a premium for its iPods and iPhones, the Financial Times said. Citing people familiar with the talks, the paper said the negotiations hinged on a dispute over the price Apple would be willing to pay for access to the labels' libraries. One industry executive said research showed consumers would pay a premium of up to US$100 for unlimited access to music for the lifetime of a device, or a monthly fee of US$7 to US$8 for a subscription model.