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World Business Quick Take

■ BANKING

BEA hit by bank run

Hundreds of customers descended on branches of Hong Kong’s Bank of East Asia (東亞銀行) yesterday to demand their deposits back after the bank was hit by unconfirmed rumors questioning its stability. “The Bank of East Asia is not suffering from financial difficulties. We have enough cash to handle the needs of depositors,” deputy chief executive Joseph Pang (彭玉榮) told reporters at the company’s headquarters yesterday afternoon. He declined to say how much customers had withdrawn, but said it was not a large amount and no major clients had pulled their money. The rumors apparently emerged after Moody’s Investors Service changed its outlook on the bank’s credit rating from stable to negative last Friday, citing a recent insider trading case that exposed “lackluster internal controls” at the bank.



■ ENERGY

Iraq, China to sign oil deal

An Iraqi oil ministry spokesman said Iraq and China would finalize a US$3 billion oil agreement next week. Assem Jihad said a Chinese delegation would visit Baghdad to sign the deal. The Iraqi government approved the deal this month in the first Saddam-era oil deal it has agreed to honor. The contract will let China’s biggest oil company, China National Petroleum Corp (中石油集團), develop the field for 20 years. It’s expected to produce up to 25,000 barrels per day after three years and eventually reach 125,000 barrels per day.



■ BEVERAGES

Fonterra posts losses

China’s contaminated milk scandal has cost the world’s largest dairy exporter, Fonterra Cooperative Group, NZ$139 million (US$95 million), the company said yesterday. Chairman Henry van der Heyden revealed the loss at a press conference in Auckland, saying he was shocked by media reports from China that Fonterra’s partner, Sanlu Group (三鹿), might have received complaints of sick children as early as December. Fonterra CEO Andrew Ferrier added that Sanlu milk brand wouldn’t recover from the damage it has suffered, as the New Zealand partner slashed the value of its holding in the Chinese company.



■ TECHNOLOGY

IBM bullish on India

International Business Machines Corp (IBM), the world’s largest computer-services provider, hasn’t seen any slowdown in Indian demand. The company is still “bullish” on India, Shanker Annaswamy, a regional general manager heading IBM’s operations in the South Asian nation, told reporters in Bangalore yesterday. IBM and Hewlett-Packard Co have rapidly increased their work force in India, including via acquisitions, as their largest customers saw the benefits of sending work overseas to competitors in the South Asian nation such as Tata Consultancy Services Ltd and Infosys Technologies Ltd.



■ TECHNOLOGY

Sharp unveils car/phone key

A new Japanese mobile phone will automatically unlock the doors of its owners’ cars and let drivers start their engines without using an ignition key. The phone, built by Sharp Corp, uses a technology previously developed by Nissan Motor Co called “Intelligent Key” that allows drivers to enter and start their cars without removing their keys from their pockets or bags. The service will work on the mobile network operated by NTT DoCoMo Inc, Japan’s largest mobile operator. The companies said in a joint press release yesterday they would display the technology next week at CEATEC, a major technology conference in Tokyo.


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