CONSTRUCTION
Interserve to retain RMDK
British construction and support services firm Interserve PLC yesterday said it had decided to retain equipment services unit RMDK as a core part of its business, following the conclusion of a strategic review that started in February. Interserve said the international business RMDK provided an “important element” of diversification for the group, which otherwise had a predominantly UK-based earnings profile and has been facing near-term uncertainty in some end markets. Interserve said it would incur nonrecurring charges of about ￡17 million (US$21.11 million) to carry out strategic changes at RMDK, which would include restructuring operations in a number of smaller, less attractive markets.
MACROECONICS
UK economy loses steam
Britain’s economy appears to be losing steam, with major business surveys showing a marked slowdown in the services sector and boardrooms beset by doubt about the future following the country’s vote to leave the EU. While the economy has fared better than most economists expected since June’s Brexit vote — largely thanks to upbeat consumers — yesterday’s surveys heighten concerns about its longer-term prospects. Key measures of business investment and turnover confidence hit four-year lows in the third quarter, the British Chambers of Commerce said in its Quarterly Economic Survey of 7,000 businesses — the largest of its kind. Separately, chief financial officers in major British firms reported only a partial rebound in business morale after a post-Brexit vote nosedive, accountants Deloitte reported. Investors have become increasingly concerned that Britain will lose many of the preferential trading terms it has with the EU — a so-called “hard Brexit” — pushing the pound to a fresh 31-year low against the US dollar last week.
CONSTRUCTION
Cimic eyes UGL Ltd
Cimic Group Ltd, the Australian construction company controlled by Germany’s Hochtief AG, offered to buy UGL Ltd in a deal valuing the engineering firm at A$524 million (US$397.91 million). Cimic, which took a 13.8 percent stake in Sydney-based UGL in a block-trade yesterday, offered A$3.15 per share in cash for the remaining stock, according to a statement to the stock exchange. That is 47 percent more than UGL’s last closing price on Friday. Cimic plans to delist UGL and reconstitute its board, according to the statement. It has received Foreign Investment Review Board approval for the offer, which will be funded through available funds or existing debt, Cimic said.
INVESTMENT
Bollore boosts Vivendi stake
Vincent Bollore’s investment company is increasing its stake in Vivendi SA to more than 20 percent as the billionaire tightens his grip over the French media conglomerate. Bollore Group is set to hold about 29 percent of voting rights in Vivendi by April 20 next year, taking into account the double voting rights attached to the shares it is acquiring, according to a statement yesterday. Bollore Group, based in Puteaux, France, held about 15 percent of Vivendi as of June. The activist investor, who became chairman of Vivendi in 2014, is cementing his control as he seeks to expand Paris-based Vivendi’s business beyond music, film and television. Under Bollore, Vivendi has accumulated a stake in Telecom Italia SpA and re-entered video gaming by acquiring Gameloft SE and buying a stake in Ubisoft Entertainment SA.
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,”
Meta Platforms Inc offered US$100 million bonuses to OpenAI employees in an unsuccessful bid to poach the ChatGPT maker’s talent and strengthen its own generative artificial intelligence (AI) teams, OpenAI CEO Sam Altman has said. Facebook’s parent company — a competitor of OpenAI — also offered “giant” annual salaries exceeding US$100 million to OpenAI staffers, Altman said in an interview on the Uncapped with Jack Altman podcast released on Tuesday. “It is crazy,” Sam Altman told his brother Jack in the interview. “I’m really happy that at least so far none of our best people have decided to take them
PLANS: MSI is also planning to upgrade its service center in the Netherlands Micro-Star International Co (MSI, 微星) yesterday said it plans to set up a server assembly line at its Poland service center this year at the earliest. The computer and peripherals manufacturer expects that the new server assembly line would shorten transportation times in shipments to European countries, a company spokesperson told the Taipei Times by telephone. MSI manufactures motherboards, graphics cards, notebook computers, servers, optical storage devices and communication devices. The company operates plants in Taiwan and China, and runs a global network of service centers. The company is also considering upgrading its service center in the Netherlands into a
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