PHILIPPINES
Central bank hikes rates
The central bank yesterday delivered its second 75-basis-point interest-rate increase this year, as it sought to support the peso and cool inflation by matching the pace of hikes by the US Federal Reserve. Bangko Sentral ng Pilipinas (BSP) raised the overnight reverse repurchase rate to 5 percent. Under BSP Governor Felipe Medalla, the central bank has been at the forefront of monetary tightening in Southeast Asia, having raised rates by a total of 300 basis points since May to cool inflation and shore up its currency. The peso is Southeast Asia’s worst performer this year, sliding more than 11 percent against the US dollar.
INDONESIA
Central bank raises rates
The central bank yesterday implemented another large interest-rate increase to ease pressure on the rupiah, which has become Asia’s worst-performing currency this quarter. Bank Indonesia raised its seven-day reverse repurchase rate to 5.25 percent. The nation, one of the last in the region to embark on monetary tightening, has swiftly caught up with its peers by raising interest rates by a cumulative 175 basis points since August. The central bank sees GDP growth this year coming in at the upper end of its 4.5 to 5.3 percent range, Bank Indonesia Governor Perry Warjiyo said at a briefing to announce the rate move.
RUSSIA
Economy falls into recession
The economy has entered a recession, as GDP fell 4 percent in the third quarter, first estimates published on Wednesday by national statistics agency Rosstat showed. The drop in GDP follows a similar 4 percent contraction in the second quarter, as Western sanctions pummel the economy following Moscow’s offensive in Ukraine. The contraction was driven by a 22.6 percent plunge in wholesale trade and a 9.1 percent drop in retail trade. On the bright side, construction grew 6.7 percent and agriculture rose 6.2 percent. The central bank on Tuesday last week predicted that GDP would contract 3.5 percent this year.
CONGLOMERATES
Siemens sees rising margins
Siemens AG expects higher margins in its three key divisions next year, defying pressure from a global economic slowdown on the back of a record-high order book. The group reported net income more than doubling to 2.7 billion euros (US$2.8 billion) for the fiscal fourth quarter that ended in September, Siemens said yesterday. The return on sales at its main Digital Industries division is forecast to rise to as much as 22 percent next fiscal year, up from 20 percent in the annual period that just ended. All its industrial businesses saw order intake and revenue rise last year, even as sanctions on Russia, high inflation and supply-chain problems weighed, Siemens said.
CONGLOMERATES
Thyssenkrupp plans dividend
Thyssenkrupp AG plans to pay a dividend for the first time in four years even as it warned that earnings would fall substantially next year due to a weakening economy. Adjusted earnings before interest and taxes are expected to fall to a mid-to-high three-digit million euro range, below the 2.1 billion euros reported for the fiscal year that ended on Sept. 30, the company said yesterday. Thyssenkrupp still plans to propose its first dividend since 2018 after its cash drain narrowed during the fourth quarter.
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