AVIATION
JAL sets IPO pricing
Japan Airlines Co (JAL) is raising ￥663 billion (US$8.5 billion) in its initial public offering (IPO), pricing its shares at the top of its range at ￥3,790 — the world’s second-biggest IPO this year after Facebook. The carrier, which went bankrupt in 2010, will be nearly doubling the money the government-backed bailout body pumped in. It announced the pricing yesterday, the highest in a range that started from ￥3,500, underlining healthy demand for the shares. The 175 million issues are set to be listed and traded on the Tokyo Stock Exchange on Sept. 19.
AUTOMAKERS
S Korean unit cutting jobs
The struggling South Korean unit of French auto giant Renault yesterday said it had managed to reduce its workforce by 15 percent through a voluntary retirement scheme aimed at cutting costs. Renault Samsung Motors said about 800 of its 5,500 employees would leave the company by Friday after receiving compensation of up to two years of salary depending on their years of service. Employees who took up the offer will also have their children’s school fees paid for two years, along with other benefits.
FRANCE
Economy set to contract
The economy is set to contract by 0.1 percent in the third quarter, the central bank confirmed yesterday, in a forecast of further trouble for the eurozone’s second-biggest economy. If confirmed, it would be the first contraction since the nation came out of recession in 2009 and follows zero growth for the past three quarters. If followed by another negative quarter it would signal the economy has entered a recession, which is commonly defined by economists as two consecutive quarters of contracting activity. The government has forecast 0.3 percent growth for the year.
INSURANCE
US sets AIG’s IPO
The US Treasury Department announced on Sunday that it has launched a public offering of US$18 billion of its common stock in AIG, the giant insurer bailed out by the US government. The Treasury will also grant a 30-day option to the offering’s underwriters to purchase up to an additional US$2.7 billion of AIG common stock to cover any over-allotments. AIG intends to buy up to US$5 billion of common stock that Treasury sells at the IPO price in the sale, the Treasury said in a statement.
OUTSOURCING
Infosys buying Lodestone
Indian IT outsourcing giant Infosys yesterday said it had agreed to buy Zurich-based consulting firm Lodestone for 330 million Swiss francs (US$350 million). The takeover will boost Infosys’ presence in continental Europe and emerging markets like Latin America and Asia Pacific, the Bangalore-based group said in a statement. Lodestone will add more than 200 clients across industries including manufacturing and the car sector to Infosys’ clientbase of 700 companies, it added.
MINING
Gold Fields workers strike
A third of the South African workforce of world No. 4 bullion producer Gold Fields have downed tools in an illegal strike, the company said yesterday, the latest labor stoppage to hit the mining sector in Africa’s largest economy. The wildcat strike action came as South African police readied for possible violence over yesterday’s back-to-work deadline for striking workers at Lonmin’s Marikana platinum mine.
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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