Sat, Oct 01, 2011 page10

• World Business Quick Take

  • Agencies
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  CHINA

  Demand hits manufacturing

  Manufacturing activity in China contracted for the third straight month last month, HSBC data showed yesterday, caused by luckluster demand amid turbulence in the US and Europe. The HSBC purchasing managers’ index stood at 49.9 last month — the same as in August — up from 49.3 in July, which was the first contraction in a year, the British banking giant said in a statement. A reading above 50 indicates the sector is expanding, while a reading below 50 suggests contraction.

  SOUTH KOREA

  Output slows in August

  South Korea’s industrial output rose at a slower-than-expected pace in August, official figures showed yesterday, as the uncertain global economic outlook took its toll on local manufacturers. Output rose 4.8 percent in August from the same month a year earlier, following a revised 4 percent increase in July. The output figure, which measures production in mining and manufacturing, shrank 1.9 percent compared with a month earlier, Statistics Korea said. It was the second consecutive month-on-month contraction following a revised 0.3 percent decline in July.

  ECONOMY

  Brazil cuts growth forecast

  Brazil has lowered the economic growth expectations of Latin America’s largest economy this year. In a report released on Thursday, the central bank said it reduced from 4 percent to 3.5 percent its GDP growth forecast for this year. The report said the reduced growth expectations are the result of the international economic crisis, adding that the central bank may again lower the country’s key interest to help spur the economy.

  ECONOMY

  Australia focuses on deficit

  The Australian government said it remains committed to returning to surplus next fiscal year with new figures showing a slightly smaller than predicted deficit in the last year. Government data released yesterday showed the deficit for the year ended June 30, 2011, was A$47.7 billion (US$46.6 billion) — A$1.6 billion less than predicted in May and 3.4 percent of GDP. The slightly better outcome was the result of government cash outlays being less than expected. Australian Treasurer Wayne Swan said Australia would return to surplus in 2012-2013.

  FINANCE

  BofA card charges planned

  Bank of America Corp (BofA) plans to introduce a US$5 monthly debit card usage fee for many of its account holders beginning early next year, the company said on Thursday. The largest US bank by assets is implementing the fee to recoup lost revenue caused by new industry regulations introduced since the 2008 financial crisis limiting overdraft and other fees. Customers who use the debit card for purchases will be assessed the fee. It will be waived for the bank’s premium or platinum privileges accounts tied to the Merrill Lynch brokerage.

  TECHNOLOGY

  HP chiefs reap rewards

  Ousted Hewlett-Packard chief executive Leo Apotheker is leaving with compensation worth at least US$13.2 million while his successor, Meg Whitman, will receive an annual salary of US$1. Whitman will receive stock options and will be eligible for an annual performance bonus worth at least US$2.4 million, HP said in a filing with the US Securities and Exchange Commission. Whitman, a former CEO of eBay, was named to head HP last week. She has the option to purchase 1.9 million shares in HP.
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