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Tue, Jul 13, 2010 - Page 10 News List

World Business Quick Take

AGENCIES

■BANKING

Europeans banks mull fund

Several European banks are considering the establishment of a 20 billion euro (US$25.1 billion) private sector recovery fund that could bail out financial institutions, the head of UniCredit bank told a paper yesterday. Writing in the Financial Times, chief executive of the Italian bank Alessandro Profumo, said that the fund could provide help to European banks in the event of another crisis. Banks would be able to turn themselves around without state bailouts, he said. “With voluntary contributions from the large European cross-border banks — say, the top 20 — a European recovery fund could accumulate a significant amount of risk capital [20 billion euros] over a few years,” he said.

■REAL ESTATE

London office rent climbs

Rents for the best offices in London’s main financial district climbed by almost a quarter in the first half of the year, the strongest six months of growth on record, according to NB Real Estate. Average rents for prime City of London offices rose 11.6 percent to £570 (US$855) a square meter in the second quarter, the London-based real estate adviser said in a statement. That followed an 11.8 percent gain in the previous three months. They are still down about a quarter from their 2007 peak. City of London rents are increasing as companies compete for quality space. Most projects were shelved during the recession as rents declined and only two prime buildings are coming onto the market next year. “The shortage of new space will become more acute over the next few years,” James Gillett, director of City offices, said in the statement.

■MANUFACTURING

Indian output weaker

India’s industrial output rose by a weaker-than-forecast 11.5 percent in May from a year earlier, official data showed yesterday. The figure, which comes after a revised 16.5 percent jump in April, was dragged down by slower mining and manufacturing activity and was far below market expectations of a 16 percent rise year-on-year. India’s economy has been showing signs of slowing slightly, with output growth easing and the rate of hiring cooling among manufacturing firms as new order flows begin to slacken. Manufacturing output growth declined to 12.3 percent year-on-year in May from 19.4 percent the previous month.

■AUTOMOTIVE

Renault issues recall

Renault Samsung Motors, the South Korean unit of the French carmaker, is voluntarily recalling 59,410 vehicles due to faulty gas-emitting valves in fuel tanks, the South Korean transport ministry yesterday said. The models subject to recall are the SM3 compact sedans produced between May 6 last year and June 15 this year and the recall will start on July 28, the ministry said in a statement. “The problem is not too severe but we are taking the precautionary measure for the safety of passengers,” a Renault Samsung spokesman said.

■TELEVISION

Televisa’s Q2 profit falls

Mexican broadcaster Televisa says its second-quarter profit fell 1.2 percent to 1.8 billion pesos (US$142 million) from 1.83 billion pesos during the same period last year. The company says net sales increased 14 percent to 14.45 billion pesos on revenue growth driven by TV broadcasting, pay TV, cable and telecom and other business. However, rising costs and taxes took a bite out of profits. Publishing and programming export income declined.

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