SLOVENIA
Public spending capped
Slovenia’s parliament on Friday imposed a cap on public spending in an attempt to convince foreign investors that the small eurozone country will not need an international bailout. The 78-8 vote in the assembly approving the new measure means Slovenia’s constitution will be changed to require that the government’s budget be balanced — that is, it will not be allowed to spend more than it earns in taxes. The budget should be balanced by 2015, as demanded by the EU. Slovenia’s public debt is set to surge to 71 percent of annual GDP next year, up from 54 percent last year.
AIRLINES
Air China orders 100 jets
Air China (中國國際航空) said on Friday it had ordered 100 Airbus A320 series medium-range single-aisle passenger jets, which carry a catalogue price of US$8.8 billion. Air China said in a statement it would acquire 60 of the aircraft for itself and 40 would be bought by its subsidiary, Shenzhen Airlines. “The transaction will expand the overall fleet capacity of the group and optimize the fleet structure,” Air China said in a notification to the Hong Kong Stock Exchange, saying it would add nearly 16 percent to capacity
ENTERTAINMENT
Netflix woos new clients
Netflix is hoping this weekend’s release of the resurrected TV series Arrested Development will draw more subscribers to its Internet video service. The award-winning show about the dysfunctional Bluth family returns today, seven years after Fox canceled the series. The revival coincides with Netflix’s own resounding comeback from a customer backlash over price increases and shareholders’ worries about rising expenses. Netflix is winning back subscribers and investors with a bold attempt to establish its US$8-per-month service as a home entertainment powerhouse that rivals the broadcast TV networks and premium cable channels such as HBO.
PHARMACEUTICALS
Valeant eyes deal
Canadian pharmaceutical company Valeant is close to a deal to acquire US eye-health company Bausch & Lomb for about US$9 billion, a person familiar with the matter said on Friday. A deal could come as soon as next week, the person said. Unless the deal falls apart, the transaction will replace a plan launched in March for Bausch & Lomb to undertake an initial public offering. The takeover talks were first reported on Friday by the Wall Street Journal.
BANKING
Bankia to sell City National
Spain’s bailed-out lender Bankia on Friday announced it would sell City National Bank of Florida to Chile’s BCI for about 683 million euros (US$883 million). The bank said in a statement it had “made provisions in late 2010 to cover losses” of City National, meaning it “hopes for a net capital gain of around 180 million euros” from the sale to Banco de Credito e Inversiones. The sale of Bankia’s US subsidiary, brokered by Goldman Sachs and Sullivan&Cromwell, will result in 435 job losses, the statement said. The move is part of the “commitments under the plan to restructure the BFA-Bankia group approved by the Spanish and European authorities in November 2012,” it added.
PROTECTIONISM: China hopes to help domestic chipmakers gain more market share while preparing local tech companies for the possibility of more US sanctions Beijing is stepping up pressure on Chinese companies to buy locally produced artificial intelligence (AI) chips instead of Nvidia Corp products, part of the nation’s effort to expand its semiconductor industry and counter US sanctions. Chinese regulators have been discouraging companies from purchasing Nvidia’s H20 chips, which are used to develop and run AI models, sources familiar with the matter said. The policy has taken the form of guidance rather than an outright ban, as Beijing wants to avoid handicapping its own AI start-ups and escalating tensions with the US, said the sources, who asked not to be identified because the
Taipei is today suspending its US$2.5 trillion stock market as Super Typhoon Krathon approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed-income trading, statements from its stock and currency exchanges said. Yesterday, schools and offices were closed in several cities and counties in southern and eastern Taiwan, including in the key industrial port city of Kaohsiung. Taiwan, which started canceling flights, ship sailings and some train services earlier this week, has wind and rain advisories in place for much of the island. It regularly experiences typhoons, and in July shut offices and schools as
FALLING BEHIND: Samsung shares have declined more than 20 percent this year, as the world’s largest chipmaker struggles in key markets and plays catch-up to rival SK Hynix Samsung Electronics Co is laying off workers in Southeast Asia, Australia and New Zealand as part of a plan to reduce its global headcount by thousands of jobs, sources familiar with the situation said. The layoffs could affect about 10 percent of its workforces in those markets, although the numbers for each subsidiary might vary, said one of the sources, who asked not to be named because the matter is private. Job cuts are planned for other overseas subsidiaries and could reach 10 percent in certain markets, the source said. The South Korean company has about 147,000 in staff overseas, more than half
Her white-gloved, waistcoated uniform impeccable, 22-year-old Hazuki Okuno boards a bullet train replica to rehearse the strict protocols behind the smooth operation of a Japanese institution turning 60 Tuesday. High-speed Shinkansen trains began running between Tokyo and Osaka on Oct. 1, 1964, heralding a new era for rail travel as Japan grew into an economic superpower after World War II. The service remains integral to the nation’s economy and way of life — so keeping it dazzlingly clean, punctual and accident-free is a serious job. At a 10-story, state-of-the-art staff training center, Okuno shouted from the window and signaled to imaginary colleagues, keeping
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