■AUTOMOBILES
VW to raise US$5.7bn
Volkswagen (VW), Europe’s biggest automaker, could raise fresh capital of up to 4 billion euros (US$5.7 billion) to finance the takeover of its main shareholder Porsche, the Financial Times said yesterday. On Thursday, VW said it would take control of the sports car icon after a lengthy battle for which of the two companies, linked by strong controlling family ties, would come out on top of a new group aiming to challenge Toyota to be the world’s No. 1 auto company. Porsche ended up with 10 billion euros of debt as it built up a controlling stake in VW and this cost ultimately weakened its own position. The Financial Times said VW wanted to buy Porsche’s sports car business as fast as possible and so was considering strengthening its capital base to do so. Raising fresh funds for the Porsche takeover, estimated to cost 8 billion euros, will protect VW’s credit ratings, the report said.
■FINANCE
UK to step up scrutiny
Up to 2,000 traders and managers could face extra checks and interviews by Britain’s financial watchdog to assess if they are fit for their jobs following the financial crisis, the Financial Times (FT) said yesterday. Traders, bankers and managers with significant influence in their companies are set to face the tests, the daily said. They include senior professionals at the largest 40 to 50 banks, insurers and other institutions supervised by the Financial Services Authority (FSA), the FT said, citing unnamed sources. The FSA was expected to announce yesterday that institutions would have up to six months to identify senior officials who carry out roles that might expose their company to significant risk, or who exert significant influence.
■FINANCE
Net outflows drop: Aberdeen
British fund manager Aberdeen Asset Management said yesterday net outflows of client money slowed in the third quarter, signaling a “strong” pipeline of new business. Redemptions from funds totalled £2.2 billion (US$3.64 billion) at the end of June after hitting £4.23 billion at the end of March “We have a strong new business pipeline in equities, fixed income and property,” chief executive Martin Gilbert said. Assets under management at the end of the quarter grew to £129.2 billion from £96.3 billion at end-March, boosted by the acquisition of £35.3 billion in assets through the purchase of Credit Suisse’s UK business. Market gains added another £9 billion to assets in the quarter. The fixed income business saw outflows slow sharply during the quarter to a net £2.71 billion, against outflows of £4.23 billion in the previous quarter, helped by outperformance in the company’s funds.
■AVIATION
Virgin Blue to raise capital
Australian budget airline Virgin Blue yesterday announced plans to raise A$231.4 million (US$190 million) in capital as it predicted record losses following the toughest 12 months in its history. The discount carrier also said chief executive Brett Godfrey would step down next year, a decade after launching Australia’s second-largest airline. Godfrey said the fund-raising would improve the airline’s liquidity and financial flexibility, giving it the ability to move into new routes and buy more aircraft when conditions improve. He said in the volatile aviation market the move was “prudent” for Virgin Blue, which is expected to post net losses of between A$160 million and A$165 million in the year to June, a sharp turnaround from last year’s A$98 million profit.
NO HUMAN ERROR: After the incident, the Coast Guard Administration said it would obtain uncrewed aerial vehicles and vessels to boost its detection capacity Authorities would improve border control to prevent unlawful entry into Taiwan’s waters and safeguard national security, the Mainland Affairs Council (MAC) said yesterday after a Chinese man reached the nation’s coast on an inflatable boat, saying he “defected to freedom.” The man was found on a rubber boat when he was about to set foot on Taiwan at the estuary of Houkeng River (後坑溪) near Taiping Borough (太平) in New Taipei City’s Linkou District (林口), authorities said. The Coast Guard Administration’s (CGA) northern branch said it received a report at 6:30am yesterday morning from the New Taipei City Fire Department about a
IN BEIJING’S FAVOR: A China Coast Guard spokesperson said that the Chinese maritime police would continue to carry out law enforcement activities in waters it claims The Philippines withdrew its coast guard vessel from a South China Sea shoal that has recently been at the center of tensions with Beijing. BRP Teresa Magbanua “was compelled to return to port” from Sabina Shoal (Xianbin Shoal, 仙濱暗沙) due to bad weather, depleted supplies and the need to evacuate personnel requiring medical care, the Philippine Coast Guard (PCG) spokesman Jay Tarriela said yesterday in a post on X. The Philippine vessel “will be in tiptop shape to resume her mission” after it has been resupplied and repaired, Philippine Executive Secretary Lucas Bersamin, who heads the nation’s maritime council, said
CHINA POLICY: At the seventh US-EU Dialogue on China, the two sides issued strong support for Taiwan and condemned China’s actions in the South China Sea The US and EU issued a joint statement on Wednesday supporting Taiwan’s international participation, notably omitting the “one China” policy in a departure from previous similar statements, following high-level talks on China and the Indo-Pacific region. The statement also urged China to show restraint in the Taiwan Strait. US Deputy Secretary of State Kurt Campbell and European External Action Service Secretary-General Stefano Sannino cochaired the seventh US-EU Dialogue on China and the sixth US-EU Indo-Pacific Consultations from Monday to Tuesday. Since the Indo-Pacific consultations were launched in 2021, references to the “one China” policy have appeared in every statement apart from the
A clandestine US Navy special missions unit colloquially known as SEAL Team 6 has been training for missions to assist Taiwan’s defense against an attack by China, the Financial Times said in a report yesterday. The navy commando team famous for killing Osama bin Laden in Abbottabad, Pakistan, has been conducting training to take part in a Taiwan conflict at its Dam Neck headquarters in Virginia Beach for more than one year, it said, citing sources familiar with the matter. “The secret training underlines the increased US focus on deterring China from attacking Taiwan, while stepping up preparations for such an event,”
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