■ MANUFACTURING
Nestle sales rise 3.4%
Nestle SA, the world’s biggest food and drink company, said yesterday that sales for the first nine months of the year rose 3.4 percent to 81.4 billion Swiss francs (US$70.1 billion), with growth both in its food and beverage business and in pharmaceuticals. Sales growth was particularly strong in Asia, Oceania and Africa, but gains were also recorded in the Americas and Europe, a company statement said. Chief executive Paul Bulcke said the performance reflected “strong growth momentum in both the developing and the developed world.” Nestle said in view of the third quarter, it was hiking its organic growth to about 8 percent for the full year, up from the at least 7.4 percent it forecast in August.
■ NEW ZEALAND
Interest rate cut by 1%
The Reserve Bank cut its benchmark interest rate by an unprecedented 1 percent to 6.5 percent yesterday, its third cut in 13 weeks after making no reductions for five years. The central bank had cut its official cash rate to 8 percent on July 24 after keeping it at 8.25 percent — one of the highest in the developed world — for 12 months and reduced it again to 7.5 percent on Sept. 11. The 1 percent cut had been widely anticipated by analysts despite this week’s revelation that the inflation rate had hit an 18-year high of 5.1 percent — well over the bank’s maximum target of 3 percent.
■ TRADE
Japan’s surplus drops 94%
Japan’s trade surplus plunged 94 percent last month from a year earlier, official figures showed yesterday, adding to fears that the export-dependent economy is in a recession. The steep fall came as exports to the ailing US economy declined for a 13th straight month. Exports to the rest of Asia — which until recently had been holding up relatively well — showed only tepid growth. Last month’s surplus of ¥95.1 billion (US$973 million) followed a deficit of ¥324.0 billion in August, which was the first in 26 years excluding January, when exports are usually slow due to the New Year holiday.
■ FINANCE
Goldman Sachs plans layoffs
Goldman Sachs Group Inc is preparing to cut about 10 percent of its 32,500 employees, the Wall Street Journal said, citing people familiar with the matter. The cuts are expected throughout the company, the paper said. The downsizing wave is likely to get worse on Wall Street in the next several months. Barclays PLC plans to cut at least 3,000 jobs from its payroll in the US, which includes former Lehman operations, the paper said. Of the 61,000 employees at Merrill Lynch & Co, thousands are likely to lose their jobs as part of the firm’s takeover by Bank of America Corp, it said.
■ PHARMACEUTICALS
Merck’s Q3 profits plunge
US pharmaceutical giant Merck announced on Wednesday it would cut its worldwide workforce by 7,200 jobs by 2011 as third-quarter net profit plunged 28 percent. Third-quarter net profit fell to US$1.09 billion from US$1.52 billion a year ago, while sales fell 2 percent from the third quarter of last year to US$5.9 billion, the company said in a statement. Earnings per share were US$0.80, beating analysts’ consensus forecast by US$0.01. But taking into account restructuring costs of US$612 million, earnings per share fell to US$0.51.The company said it would slash 12 percent of its workforce by eliminating 6,800 active employees and 400 vacancies by the end of 2011.
NO HUMAN ERROR: After the incident, the Coast Guard Administration said it would obtain uncrewed aerial vehicles and vessels to boost its detection capacity Authorities would improve border control to prevent unlawful entry into Taiwan’s waters and safeguard national security, the Mainland Affairs Council (MAC) said yesterday after a Chinese man reached the nation’s coast on an inflatable boat, saying he “defected to freedom.” The man was found on a rubber boat when he was about to set foot on Taiwan at the estuary of Houkeng River (後坑溪) near Taiping Borough (太平) in New Taipei City’s Linkou District (林口), authorities said. The Coast Guard Administration’s (CGA) northern branch said it received a report at 6:30am yesterday morning from the New Taipei City Fire Department about a
IN BEIJING’S FAVOR: A China Coast Guard spokesperson said that the Chinese maritime police would continue to carry out law enforcement activities in waters it claims The Philippines withdrew its coast guard vessel from a South China Sea shoal that has recently been at the center of tensions with Beijing. BRP Teresa Magbanua “was compelled to return to port” from Sabina Shoal (Xianbin Shoal, 仙濱暗沙) due to bad weather, depleted supplies and the need to evacuate personnel requiring medical care, the Philippine Coast Guard (PCG) spokesman Jay Tarriela said yesterday in a post on X. The Philippine vessel “will be in tiptop shape to resume her mission” after it has been resupplied and repaired, Philippine Executive Secretary Lucas Bersamin, who heads the nation’s maritime council, said
REGIONAL STABILITY: Taipei thanked the Biden administration for authorizing its 16th sale of military goods and services to uphold Taiwan’s defense and safety The US Department of State has approved the sale of US$228 million of military goods and services to Taiwan, the US Department of Defense said on Monday. The state department “made a determination approving a possible Foreign Military Sale” to the Taipei Economic and Cultural Representative Office in the US for “return, repair and reshipment of spare parts and related equipment,” the defense department’s Defense Security Cooperation Agency said in a news release. Taiwan had requested the purchase of items and services which include the “return, repair and reshipment of classified and unclassified spare parts for aircraft and related equipment; US Government
More than 500 people on Saturday marched in New York in support of Taiwan’s entry to the UN, significantly more people than previous years. The march, coinciding with the ongoing 79th session of the UN General Assembly, comes close on the heels of growing international discourse regarding the meaning of UN Resolution 2758. Resolution 2758, adopted by the UN General Assembly in 1971, recognizes the People’s Republic of China (PRC) as the “only lawful representative of China.” It resulted in the Republic of China (ROC) losing its seat at the UN to the PRC. Taiwan has since been excluded from