SOVEREIGN DEBT
Fitch cuts Turkey rating
Fitch Ratings Ltd on Friday cut its outlook for Turkey’s sovereign debt rating to “negative,” saying last month’s coup attempt underscored risks to political stability in the country. The agency affirmed the country’s rating at “BBB-,” a notch above junk grade. The rating is in line with Moody’s Investors Service, which has placed it on review for a possible downgrade while it assesses the impact of the military takeover attempt. S&P Global Ratings lowered Turkey one level to “BB,” two steps below investment grade, on July 20.
UTILITIES
State Grid ‘disappointed’
China’s State Grid Corp (國家電網) — the world’s biggest utility — on Friday said it “deeply regrets” Australia’s decision to stop the company from buying a majority stake in the state-owned power network Ausgrid. The company said it agreed to participate in the bidding after an invitation from the New South Wales government in November last year and has “absolutely” followed the guidance and conditions set by the seller through to submission of the final paperwork. “We find it hard to understand and are very disappointed” that bidders were rejected on the pretext of national security at a very late stage, the state-owned company said in a statement.
BANKING
JPMorgan wins lawsuit
JPMorgan Chase & Co, the biggest US bank, is to be paid US$645 million from a receivership estate to end a dispute over who was responsible for toxic securities created by a failed bank acquired during the financial crisis. The agreement with Deutsche Bank AG and the Federal Deposit Insurance Corp was signed on Friday, New York-based JPMorgan said in a regulatory filing. It resolves claims among the three parties over more than US$6 billion in securities backed by flawed Washington Mutual Inc mortgages. The agreement is subject to judicial approval.
COSMETICS
Estee Lauder outlook glum
Estee Lauder Cos provided a full-year profit forecast that trailed analysts’ estimates, citing economic turbulence and a stronger dollar that are hurting its sales overseas. Profit would be US$3.38 to US$3.44 per share, excluding some items, in the year through June, the New York-based company said on Friday. While Estee Lauder’s outlook was glum, its profit for the latest quarter topped analysts’ expectations. Earnings were US$0.43 per share, excluding some items, beating the US$0.40 average estimate. Revenue was US$2.65 billion, just missing the US$2.66 billion average projection, hurt by a 0.7 percent drop in skincare sales.
BANKING
RBS clients to pay interest
Royal Bank of Scotland Group PLC (RBS), Britain’s largest taxpayer-owned lender, said some of its biggest trading clients must pay interest on collateral as a consequence of low central-bank interest rates. Some of the bank’s institutional clients would need to pay interest on funds pledged as collateral when trading futures contracts, the bank said on Friday. The changes for pound and euro futures and options trading would probably affect about 60 large clients, a person with knowledge of the matter said earlier on Friday.
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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