TOBACCO
Japan seeks Reynolds assets
Japan Tobacco Inc is in talks to buy cigarette assets from Reynolds American Inc as the company seeks to expand outside of its shrinking home market, according to people familiar with the talks. The Japanese firm may acquire assets worth about US$5 billion, including some of the Natural American Spirit tobacco brand that is part of a Reynolds operating company, the people said. Reynolds, based in Winston-Salem, North Carolina, is the second-largest US tobacco company.
BANKING
US suing Deutsche Bank AG
Deutsche Bank AG must face a US government lawsuit seeking to recoup more than US$190 million over an alleged tax fraud 15 years ago, after US District Judge Lewis Kaplan in Manhattan rejected arguments that the government failed to state a legally sufficient claim, and waited several years too long to sue. The government accused Deutsche Bank of using shell companies to avoid capital gains taxes on Bristol-Myers Squibb Co shares it acquired in late 1999, when it bought a company sitting on a large unrealized gain in the drugmaker.
UNITED STATES
Housing sales jump 5.7%
Sales of new single-family houses jumped last month to a near eight-year high, according to Department of Commerce data released on Thursday. New-home sales ran at an annual pace of 552,000 last month, up 5.7 percent from the July rate of 522,000, which was revised upward by 15,000 from the prior estimate. House prices also rose with the median price at US$292,700, up 0.5 percent from July.
MACHINERY
Caterpillar plans job cuts
Caterpillar Inc on Thursday said it could cut up to 10,000 jobs through 2018 as part of a restructuring plan to save up to US$1.5 billion annually. The company said it would cut between 4,000 and 5,000 jobs by the end of next year, with most of them in this year. Caterpillar also said it expected this year’s revenue to be about US$48 billion, US$1 billion lower than its previous forecast. Revenue is expected to fall about 5 percent next year, the company said. The company said the restructuring could impact more than 20 facilities around the world.
RETAIL
Hennes & Mauritz sales jump
Swedish fashion retailer Hennes & Mauritz AB on Thursday said third-quarter sales grew nearly 20 percent as the company grabbed more market share, with plans for further expansion. Net profit remained flat at 5.3 billion kronor (US$630 million), largely because of increased costs caused by a strong US dollar, while revenue surged to 46 billion kronor from 38.8 billion a year earlier. The company plans to open about 400 new stores by year-end, expanding to about 700 stores in 28 markets.
FINANCE
Lone Star ups Quintain bid
US private equity firm Lone Star raised its offer for Quintain Estate and Development PLC to ￡745 million (US$1.13 billion) yesterday. The company’s revised offer comes a day after the Times reported that activist shareholder Elliott Capital Advisers had taken control of a 12.9 percent holding in Quintain and felt the original offer undervalued the company. The new offer represents a ￡0.10 per share increase over Lone Star’s original offer.
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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