CHEMICALS
Total sells Atotech
Total SA agreed to sell its specialty chemicals unit Atotech to Carlyle Group LP for US$3.2 billion as the French oil company disposes of non-core assets to weather a slump in crude and preserve payouts to shareholders. The sale price is 11.9 times Atotech’s adjusted earnings for last year before interest, tax, depreciation and amortization, the companies said in a statement yesterday. Equity for the transaction is to come from buyout funds Carlyle Europe Partners IV and Carlyle Partners VI. Atotech, which had revenue of 1 billion euros (US$1.1 billion) last year, has more than 4,000 employees, mainly in China and Germany.
RETAIL
Wal-Mart sees flat earnings
US retail giant Wal-Mart Stores Inc on Thursday predicted that earnings would be flat in fiscal year 2018 as it pumps up investment in e-commerce initiatives. Wal-Mart said earnings for the next fiscal year that begins on Feb. 1 next year will be essentially unchanged from those of fiscal 2017, which are expected to come in at US$4.15 to US$4.35 a share. The company forecasted an overall capital budget of US$11 billion in both fiscal 2017 and 2018, down from US$11.5 billion in fiscal 2016. It will open 130 new stores in the US in the current year, down from a prior plan to build 135 to 155 stores. The company expects to build 55 new stores in the US in fiscal 2018.
INVESTMENT
Norwegian fund posts profit
Norway’s US$882 billion sovereign wealth fund, the world’s biggest, returned a profit in the third quarter thanks to strong stock markets, it said yesterday. The fund earned a return of 4 percent in the quarter, or 240 billion Norwegian kroner (US$29.7 billion), beating its benchmark by 0.2 percentage points. In the second quarter the fund booked a profit of 1.3 percent. “Equity investments performed strongest during the quarter with positive returns in all regions. This was the main contributor to the fund’s results,” fund deputy chief executive Trond Grande said in a statement.
AVIATION
CIT sells leasing unit
The CIT Group, a commercial lender, on Thursday agreed to sell its aircraft leasing business to a Chinese-owned competitor for about US$10 billion, signifying a big step by CIT to slim itself down in the face of pressure from investors. CIT is selling its aircraft leasing unit — which owns and manages 334 planes and has an additional 133 on order — to Avolon Holdings Ltd, which is based in Ireland, but is owned by the HNA Group (海航集團) of China. CIT will use the proceeds to pay out more than US$3 billion to its shareholders and to further bolster its balance sheet.
RETAIL
Seven & i restructuring
Seven & i Holdings Co unveiled a restructuring plan to divest struggling department stores and set up a real-estate division, in a bid to focus on boosting profit at its core 7-Eleven business. The new unit, to be created this fiscal year, will explore redeveloping property occupied by under-performing general merchandise stores into housing for seniors or other residential and commercial facilities, company president Ryuichi Isaka said on Thursday. Seven & i also announced a capital alliance with a local retailer and is to transfer three Sogo & Seibu department stores to the partner. Seven & i Holdings shares yesterday fell the most in three months in Tokyo trading in the wake of the plan’s announcement.
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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