■FINANCE
Morgan Stanley delays deal
Morgan Stanley plans to keep control of part of its brokerage operation in Japan, revising a merger plan with Mitsubishi UFJ Financial Group (MUFG), news reports said yesterday. The revised deal will allow Morgan Stanley to keep some operations, including stock dealing for corporate clients, the Nikkei Shimbun reported without revealing its sources. Due to the revision, the merger will be delayed by about two months to May, the daily said. A MUFG spokesman declined to confirm the change. The Japanese bank said yesterday its first-half net profit soared 53.2 percent from a year earlier to ¥140.95 billion (US$1.6 billion).
■UNITED STATES
Geithner sees recovery
Treasury Secretary Timothy Geithner said on Tuesday the global economy is moving toward a recovery but countries can’t rely on US consumers to serve as the engine of worldwide growth. In testimony prepared for the Senate Foreign Relations Committee, Geithner said that significant cooperation among the G20 economies had helped countries “put out the financial fire” and restart economic growth. Countries with large trade surpluses such as China will have to foster policies to support domestic growth, while countries with large trade and budget deficits will need to boost savings, Geithner said.
■TELECOMS
Maxis returns to bourse
Maxis, Malaysia’s top mobile operator, is expected to debut at a premium today when it returns to the bourse in a US$3.3 billion initial public offering (IPO) billed as the biggest in Southeast Asian history. Maxis Berhad, controlled by reclusive Malaysian tycoon Ananda Krishnan and Saudi Telecom, is launching the on Bursa Malaysia two years after it was taken private and de-listed. Market observers are tipping a premium of 5 percent to 10 percent to the reference price of 5 ringgit (US$1.49) partly because of a “scarcity premium” caused by local institutions receiving smaller applications than they had applied for.
■AUTOMOBILES
Ford, Subaru among safest
Ford, Subaru and Volkswagen sit atop the US insurance industry’s annual list of the safest new vehicles — a closely watched assessment used by car companies to lure safety-conscious consumers to showrooms. The Insurance Institute for Highway Safety awarded its “top safety pick” yesterday to 19 passenger cars and eight sport utility vehicles for next year’s models. The institute substantially reduced the number of awards compared with this year because of tougher requirements for roof strength. Toyota, BMW, Mazda and Mitsubishi were shut out in the annual IIHS review.
■GAMBLING
Trump ends casino war
Donald Trump ended his war with bondholders of the casino company that bears his name, settling for 10 percent of Trump Entertainment Resorts once it emerges from bankruptcy. The real estate mogul said he and his daughter Ivanka were abandoning their battle over control of the company, which filed for bankruptcy protection in February. It was the third such filing for the company or its corporate predecessors. The three Atlantic City, New Jersey, casinos — Trump Taj Mahal Casino Resort, Trump Plaza Hotel and Casino and Trump Marina Hotel Casino — will continue to use the Trump name, while Trump will be permitted to use it on gambling ventures in other states.
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