BANKING
Goldman fires trader
Goldman Sachs Group Inc dismissed currency trader Frank Cahill over alleged behavior during his time at HSBC Holdings PLC, according to a person briefed on the matter. Cahill, who joined Goldman Sachs in London in 2012, was identified internally as one participant in transcripts made public as part of HSBC’s settlement with US and UK regulators, said the person, who asked not to be identified because the matter is private. Cahill is the first trader Goldman Sachs has dismissed related to currency-market investigations, the person said. HSBC agreed to pay US$618 million as part of US$4.3 billion in settlements between six banks and four regulators over probes into the rigging of key foreign-exchange benchmarks.
BANKING
ANZ suspends seven
Australia & New Zealand Banking Group Ltd (ANZ) suspended seven traders amid an investigation by regulators into whether market participants tried to influence Australia’s bank-bill swap rate, the equivalent of the London interbank offered rate. ANZ’s internal review and the investigation by the Australian Securities & Investments Commission “may not be complete for some time,” the bank said in a statement yesterday. Since mid-2012, the commission has probed possible manipulation of Australia’s benchmark, or BBSW, rates by 14 banks that contributed prices to the rate-setting process.
INVESTMENT
Mitsui enters Hollywood
Mitsui & Co, Japan’s No. 2 general-trading company, is venturing in to Hollywood with a minority stake in a media company incubator. Mitsui, based in Tokyo, is investing in Los Angeles-based FactoryMade Ventures, the firm that helped create the English-language El Rey Network with director Robert Rodriguez, according to a statement yesterday. They are also to forge a strategic alliance to develop TV shows, Web series and movies. Financial terms were not available. The deal with FactoryMade follows another Japanese investment in Hollywood — Softbank Corp’s US$250 million for a minority stake in Godzilla producer Legendary Entertainment. Mitsui’s media investments include Kids Station, a TV network in Japan.
ECONOMY
Indonesia raises rates
Indonesia’s central bank raised interest rates on Tuesday for the first time in a year in anticipation of surging inflation after the new government increased the price of subsidized fuel by more than 30 percent. At a special meeting called after the price increase, Bank Indonesia raised its key rate by 25 basis points to 7.75 percent, the first increase since November last year and its highest level for more than five years. Indonesian President Joko Widodo announced the reduction in government fuel subsidies late on Monday.
ENTERTAINMENT
Gaming to surge in MENA
E-commerce and videogame markets are growing “exponentially” across the Middle East and North Africa (MENA), driven by the mobile revolution and new youth-produced content, a study found. The gaming market is expected to nearly triple in size, from US$1.6 billion this year to US$4.4 billion in 2022, the study conducted by consulting firm Strategy& — formerly Booz & Co — and the Abu Dhabi media regulatory body, twofour54. So far, international games have about 90 percent of the regional market.
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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