GERMANY
Industrial orders strong
The Ministry of Economic Affairs and Energy said factory orders rose strongly in August, largely from domestic demand and an increase from other countries using the euro currency. August industrial orders increased 1 percent over July according to figures adjusted for seasonal and calendar differences, the ministry said yesterday. A 2.6 percent increase in domestic demand and a 4.1 percent rise from the eurozone helped offset a 2.8 percent decline in orders from non-euro countries. ING economist Carsten Brzeski said the numbers should bring some relief for industry, where new orders have been stagnating since last winter.
CANADA
Homes sales set to decline
The Department of Finance projects home sales could fall as much as 8 percent in the first year after new housing regulations are implemented, before rebounding, based on an analysis using historical data. Minister of Finance Bill Morneau announced the new rules on Monday. They include a stress test for home buyers and increasing the eligibility requirements for mortgages to get insured, and they come into effect as early as Oct. 17. Department of Finance spokesman Jack Aubry said that it is difficult to predict the exact impact, but the overall long-term impact of the measures are likely to be positive.
COMPUTING
Misys to cash out investment
Misys, the UK financial-software maker owned by Vista Equity Partners, plans to sell about ￡500 million (US$636 million) of stock in an initial public offering as the buyout firm prepares to cash out part of its 2012 investment in the company. The shares are to begin trading on the London Stock Exchange early next month, the company said in a statement yesterday. Proceeds from the sale, along with money from new borrowings, are to be used to repay existing debt, Misys said. Vista acquired Misys in 2012 for ￡1.3 billion in a deal that took the company private.
AVIATION
EasyJet predict declines
British airline easyJet said its profit would fall by over 25 percent this year as security issues dampened demand and low fuel prices meant there was more competition in the European short-haul market. The airline’s higher exposure to security-hit destinations in Egypt, Turkey and the French cities of Paris and Nice has meant it has fared worse this year than its bigger low-cost rival Ryanair. For the year ended Sept. 30, easyJet said that its profit would fall for the first time since 2009, coming in at between ￡490 million and ￡495 million (US$624 million to $630 million), compared with the ￡686 million it made last year.
AGRICULTURE
Monsanto corn seed sales up
Monsanto Co, which is in the process of being bought by Bayer AG, reported better-than-expected results for its most recent quarter as sales of its corn and soybean seeds rose. Monsanto on Wednesday said that sales of soybean seeds jumped 54 percent in its fiscal fourth quarter from the same period a year ago and corn seeds rose 34 percent. The company reported a loss of US$191 million, or US$0.44 per share, in the quarter, compared with a loss of US$495 million, or US$1.06 per share, in the same quarter a year ago. Earnings, adjusted for one-time gains and costs, were US$0.07 per share, exceeding Wall Street expectations.
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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