PRECIOUS METALS
Gold hits record high
Gold closed at a record high US$1,357-US$1,358 an ounce in Hong Kong on Thursday, up from Wednesday’s close of US$1,348.50-US$1,349.50. It opened at US$1,339-US$1,340. Dealers are buying up the precious metal as the greenback remains under pressure amid concerns over the global economy. Dollar-based commodities, such as oil, become cheaper for investors with foreign currencies when the US dollar drops. Benchmark oil for November delivery was up US$0.36 to US$83.59 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange.
TRANSPORTATION
Eurostar buying new trains
Eurostar International Ltd, which operates high-speed trains between London and the European continent, said yesterday it would buy 10 new trains from German manufacturer Siemens in a ￡700 million (US$1.1 billion) program to upgrade and expand its fleet. Eurostar said the new 900-passenger trains would be capable of operating anywhere on Europe’s high-speed rail network as the company looks beyond its current destinations of London, Paris and Brussels. Contract details remain to be negotiated, Eurostar said.
ENERGY
BP inks Caspian Sea deal
British oil giant BP said yesterday it had signed a 30-year deal with Azerbaijan’s state company Socar for joint exploration and production of a major Caspian Sea gas field, but gave no financial details. The Shafag-Asiman block is situated 125km southeast of Baku, and covers an area of around 1,100km2 that has never been explored before. Under the terms of the venture, which will last for 30 years, BP will be the operator with a 50 percent stake, while Socar will have the remaining equity.
REAL ESTATE
British prices plummet
British house prices plunged last month by a record 3.6 percent, home-loans provider Halifax said yesterday, unveiling the biggest monthly drop since the data was first compiled in 1983. Halifax blamed the sharp price drop on an increasing number of properties on the market, and falling demand arising from the uncertain economic outlook. Halifax said the average home price stood at ￡162,096 last month, 2.6 percent higher than a year earlier.
AUTOMOBILES
Daihatsu recalls minicars
Daihatsu Motor Co, a subsidiary of Toyota, is recalling more than 880,000 minicars in Japan due to defective door mirrors. The recall of 882,006 cars was due to loose attachments that could cause the mirrors to fall off, Japan’s Ministry of Land, Infrastructure, Transport and Tourism said yesterday. There have been no reports of accidents due to the defective mirrors. The recalled cars are only sold in Japan, the ministry said. By law, automakers must inform the ministry of a recall.
CONSUMER
Cisco eyes videophones
Cisco Systems Inc says it plans to sell a US$599 box that turns living-room TV sets into big videophones. It’s the first entry by the world’s largest maker of computer networking gear into home videoconferencing, a market that’s been dominated by free, PC--oriented services such as Skype SA. Cisco said on Wednesday that the “umi” device would include a camera and will be controlled by a remote. The service will cost US$25 per month in addition to the purchase price.
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
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