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ARAB TIMES, FRIDAY, AUGUST 10, 2012 BUSINESS 40 Chen Yunlin (left), Chairman of China’s Taiwan, China ink pact Australian unemployment steady Association for Relations Across the Taiwan Straits, China and Taiwan signed a landmark investment pact on Australia’s unemployment rate held only 8,500 extra jobs to be created. shakes hands with Thursday as hundreds of protesters voiced their anger steady at 5.2 percent in July, data The Australian dollar rose slightly Chiang Pin-kung, over the island’s ever-closer economic ties with its giant showed Thursday, with the economy on the data to US$1.0586 from chairman of former foe. beating forecasts by creating 14,000 US$1.0569 immediately prior, with Taiwan’s Straits China’s chief negotiator Chen Yunlin and his jobs. investors seeing it as further evidence Exchange Taiwanese counterpart Chiang Pin-kung put their names The Australian Bureau of Statistics against an interest rate cut. Foundation, after to the long-awaited deal, which will provide a legal said the seasonally-adjusted jobless Australia’s central bank held rates signing an invest- umbrella for Taiwanese companies operating in China. rate was boosted by a jump in both steady at 3.50 percent for a second ment protection “It’s extremely important not only for Taiwan’s invest- full and part-time employment, with consecutive month this week, saying pact at a Taipei ment and trade links with the mainland, but also for bilat- 11,512,600 people now in work. domestic growth was close to trend, hotel, Taiwan, on eral ties as a whole,” Chiang told reporters after signing Economists had expected unemploy- inflation was low and employment Aug 9. (AP) the agreement. (AFP) ment to tick up to 5.3 percent and for was growing moderately. (AFP) Core machinery orders up 5.6% in June Bank of Japan holds off fresh easing measures TOKYO, Aug 9, (AFP): The Bank of products and Tokyo warned that the euro- Japan held off fresh easing measures zone’s fiscal crisis was the biggest threat Thursday and repeated its view that the economy was “picking up moderately” but warned Europe’s ongoing debt crisis to recovery. The BoJ’s decision on Thursday was largely in line with market expectations, and came after the US S. Korea cbank keeps key interest rate unchanged continued to cast a shadow. Federal Reserve and European Central SEOUL, Aug 9, (AFP): South Korea’s China’s slowdown weighed on the But in a statement it cited potential for the economy to grow 3.0 percent After a two-day policy meeting, the Bank also held off fresh measures follow- central bank kept its key interest rate export-dominated economy. risk factors, such as rising internation- this year but its governor Kim central bank said it left unchanged its pol- ing recent policy meetings. unchanged Thursday despite a down- Exports dropped 8.8 percent in July al grain prices and increases in local Choong-Soo has said that may be too icy tool, a 70-trillion-yen ($891-billion) “Japan’s economy started improving beat assessment of the global econo- from a year earlier. The economy utility fees. optimistic asset purchase programme while it would ahead of others,” Yuji Kameoka, chief my, but analysts said another cut grew just 0.4 percent quarter-on-quar- Analysts said a back-to-back rate Many analysts said a rate cut was also hold interest rates unchanged at currency strategist at Daiwa Securities, could be on the cards before the end ter in April-June compared with 0.9 cut could have fuelled bleak interna- likely in coming months after between zero and 0.1 percent. told Dow Jones Newswires, adding that of the year. percent in January-March. tional assessments of the prospects Thursday’s decision to stand pat. “Japan’s economy has started picking the BoJ would likely take a “wait-and-see The Bank of Korea’s (BOK) mone- The bank forecast a very moderate for Asia’s fourth-largest economy. “The chances for a rate cut next up moderately as domestic demand stance” on fresh measures. tary policy committee, in a unanimous recovery globally and said the trend of The bank “can now wait and see month have increased now,” remains firm, mainly supported by recon- “Emerging economies like China decision, kept the benchmark seven- domestic economic growth had the impact of monetary easing steps Samsung Securities analyst Ryan Oh struction demand” following the March aren’t bad. There are also signs of day repo rate steady at 3.0 percent for slowed “owing to lacklustre exports (expected) to be taken by the US and told Dow Jones Newswires. 11 quake-tsunami disaster, it added. improvement in the US economic indica- August. and domestic demand”. Europe before deciding on taking a “Given that the Korean economy is The nation’s economy was hammered tors recently. The exception is Europe.” In July the bank announced a sur- Inflation eased in July year-on-year second rate cut”, Kong Dong-Rak, of in a downturn, I expect further easing prise cut of 25 basis points, the first to 1.5 percent, its lowest rate in more Taurus Investment and Securities, after a cut in September to bring the by last year’s terror, which wreaked The yen got a boost following the BoJ’s reduction in more than three years, as than 12 years, and the bank forecast told Yonhap news agency. policy rate to 2.5 percent by year- havoc on industrial production, while decision, with the euro buying 96.99 yen Europe’s protracted debt crisis and it would stay low for the time being. The central bank’s latest forecast is end.” flooding in Thailand and the yen’s surge and the dollar at 78.36 yen, compared with to record highs against the dollar later in 97.22 yen and 78.52 yen earlier. the year also hurt growth. “If the Fed takes additional easing and general trend of falling prices having lit- It kept a 1.7 percent growth forecast purchase of treasury discount bills by the The rise in the private-sector core data, On Thursday, the BoJ said “overseas that pushes the dollar down against the same amount. economies have shown moderate yen and increase Japan’s deflationary tle impact. Last month, the BoJ said it for the next fiscal year unchanged. which exclude volatile demand from improvement” but added that “in global pressure, the BoJ may be forced to do expected Japan’s economy to expand 2.2 While the bank made no major policy Also: power companies and for ships, reversed financial markets some nervousness con- something new,” said Barclays Securities percent in the fiscal year through March moves after its July meeting, it said it TOKYO: Japan’s core machinery orders a fall of 14.8 percent in May but was tinues to be seen, mainly due to concern Japan chief economist Kyohei Morita. 2013, slightly lower than its April out- would tweak policy by reducing the rose by a smaller-than-expected 5.6 per- smaller than 11.0 percent growth expect- about the European debt problem”. Japan has been stuck in a deflationary look of 2.3 percent but still above a amount of fixed-rate loans it offers by cent in June from the previous month, ed by economists polled by Dow Jones Europe is a major market for Japanese spiral for years with efforts to battle a January forecast of 2.0 percent. five trillion yen while it increased the official figures showed Thursday. Newswires. the bottomline NEW DELHI: Indian pharmaceutical giant Ranbaxy on Thursday reported a billion (US$3.61 billion) Thursday after attracting new mobile phone customers. China factory output growth slows unexpectedly in July surprise quarterly net loss, hit by The company’s profit for the 12 adverse foreign exchange movements, months to June 30 was up from despite an upsurge in sales in its crucial Aus$3.23 billion in the previous year, US market. and just below analyst expectations. The headline results were bad news Revenue increased by 1.1 percent to for Ranbaxy’s Japanese owner, Daiichi Aus$25.4 billion while earnings before Sankyo, which has seen the Indian interest, tax, depreciation and amortisa- firm’s earnings hit by a string of US reg- tion were up 0.8 percent at Aus$10.23 ulatory setbacks since it paid $4.6 bil- lion in 2008 for a controlling stake. billion. Telstra said it had added 1.6 million Consumer inflation at 30-mth low New Delhi-based Ranbaxy mobile customers in the period, taking Laboratories said in a statement it its total number to 13.8 million, while swung to a net quarterly loss of 5.86 bil- retaining existing subscribers due to bet- BEIJING, Aug 9, (RTRS): China’s factory output growth support an economy that has seen growth sliding for six straight quarters. Annual consumer inflation, meanwhile, fell to a 30-month low last month, suggest- lion rupees ($106 million) for the three ter customer service. slowed unexpectedly in July to its weakest in more than three ing that the central bank has ample scope to ease policy further after cutting interest months to June from a quarterly net “We have seen two years of signifi- profit of 2.43 billion rupees for the same cant customer growth as our strategy years, underlining stiff global headwinds that may prompt rates in June and July. “We think the weakness will be more stubborn than people had period last year. continues to bear fruit,” said chief exec- policymakers to take more action to keep growth on track to expected,” said Li Wei, China economist at Standard Chartered Bank in Shanghai. “My Market analysts had expected the utive David Thodey. view is that political rhetoric is losing its effectiveness in boosting confidence and you generics heavyweight, India’s largest “This has translated into strong finan- meet a 7.5 percent annual target. need actual actions to boost growth.” drug company by sales, to post a profit cial results despite tough domestic and Retail sales and fixed asset investment also missed market forecasts in offi- Expectations of more stimulus measures in response to the data boosted riskier of around three billion rupees in the international economic conditions. cial data released in Thursday, increasing expectations that Beijing will act to assets, with Asian shares rising to a three-month high and the commodity-sensitive company’s second financial quarter. “We have achieved top and bottom Australian dollar testing a 4-1/2-month The loss came despite a 140-percent line growth and expect to do so again in peak. jump to 14.7 billion rupees in sales in the 2013 financial year,” he added. Apart from lowering interest rates, North America, Ranbaxy’s main market, Despite the solid result, the compa- Beijing has also cut the amount of cash that was powered by the its generic ny’s share price fell 2.27 percent to Aus$3.88 in a generally flat market. that banks must hold as reserves (RRR) brand of Lipitor, Pfizer’s best-selling to free up an estimated 1.2 trillion yuan cholesterol-busting drug. Rhett Kessler, a portfolio manager in “Sales and profitability grew in the Sydney with Pengana Capital, said ($191 billion) for lending in a series of quarter with overall improvement across investors were expecting even more. moves since November 2011. major regions,” Ranbaxy’s chief execu- “Investors are also shifting away from President Hu Jintao and Premier Wen tive Arun Sawhney said, adding, “US safe havens generally. At a cursory look, Jiabao have promised to step up policy sales were robust.” this is a solid result which has delivered “fine tuning” in the second half of the But adverse currency movements in on operational expectations,” he told year to support the economy. the quarter dragged the company into Dow Jones Newswires. (AFP) Easing the red, Ranbaxy said. ❑ ❑ ❑ The central bank is widely expected to “There was a net charge of $160 mil- continue its gradual policy easing in the lion or 8.76 billion on the profit and loss NEW DELHI: India’s Reliance account on account of the forex items,” Industries has slashed its recoverable coming months to support growth, the company said. natural gas reserve estimates in its main despite its recent warning that inflation Earlier in the year, Ranbaxy reached production fields by 70 percent, due to may pick up after August. agreement with the US Food and Drug “unforeseen geological surprises”, a The benchmark Reuters poll last month Administration over a lengthy quality minister said on Thursday. showed analysts expected the central bank compliance dispute and said it would Declining gas production at the D6 to deliver its next interest rate cut in the name an inspector to carry out quality block in the Krishna Godavari basin, third quarter and two more cuts in banks’ checks on its plants. (AFP) India’s richest gas find, has already reserve requirement ratio by the end of the reduced the country’s overall gas pro- ❑ ❑ ❑ duction, obliging it to import costlier year. “Policy measures the government has taken so far are not enough to stabilise MUMBAI: India’s top vehicle maker liquefied natural gas. growth and policy support should be Tata Motors on Thursday posted a 12.2 Reliance, controlled by India’s percent rise in quarterly profit, but wealthiest man Mukesh Ambani, has cut stepped up,” said Wang Jun, economist at missed forecasts, even as strong sales of estimated recoverable gas reserves from China Centre for International Economic British brands Jaguar and Land Rover two gas fields in the KG-D6 basin off Exchanges (CCIEE), a government think- offset weak local demand. eastern India to 3.10 trillion cubic feet tank in Beijing. The auto giant reported consolidated (tcf), junior oil minister R.P.N. Singh “On monetary policy, the central bank net profit of 22.44 billion rupees ($406 told the lower house of parliament. A woman walks past a promotional advertisement in a shopping mall in central Beijing, China, on Aug 9. (AP) should cut banks’ reserve requirement million) for the three months to June, up The earlier estimate was 10.3 tcf, ratio (RRR) as quickly as possible.” from 20 billion rupees a year earlier. Singh said. “The operator (Reliance) has China’s economy is struggling to The company, part of the salt-to-steel attributed lower gas production (com- escape from the effects of the euro zone Tata conglomerate, however undershot pared with an amended initial develop- Car sales rise 6.7 pct in July debt crisis and a sluggish US recovery analysts’ expectations of profit of ment plan) from the D1 and D3 fields to that are keeping global growth at a low around 27 billion rupees. unforeseen geological surprises and ebb, the main factor that pushed China’s Revenues for the first financial quar- ter climbed 30 percent to 431.7 billion rupees, the firm said. Tata Motors, which also makes utility reservoir,” the minister said, without elaborating. A Reliance company spokesman declined to comment, but said they had India industrial output shrinks 1.8% new export orders in July into their steep- est fall in eight months. Weak property investment is hurting stated “a similar position” in their last economic growth despite a modest pick- vehicles and the low-cost Nano car, said NEW DELHI, Aug 9, (AFP): India’s India’s once-booming economy 6.7 percent in July, their weakest pace up in sales and prices, while falling facto- it suffered a foreign-exchange loss of annual report. D1 and D3 are the largest industrial output shrank by a shock 1.8 grew just 5.3 percent between January in three months, an automobile body 4.41 billion rupees in the quarter, around of the 18 finds Reliance made in the ry-gate prices cut into corporate earnings deep-sea oil and gas blocks in the Bay percent in June, data showed and March — its slowest annual quar- reported Thursday as it called for and limit capital spending. The central eight times more than the size of its cur- rency loss of 570 million rupees a year of Bengal, which had started production Thursday, highlighting the challenge terly expansion in nearly a decade. lower interest rates to help spur the government has been fast-tracking some earlier. in April 2009. for new Finance Minister P. Unlike other central banks which flagging sector. infrastructure projects, but its efforts have Jaguar and Land Rover have been key India’s oil regulator and analysts have Chidambaram to reverse the nation’s have been cutting rates to spur growth, Domestic car sales in July climbed sparked fears of overcapacity. growth drivers for the Indian firm in been concerned in recent months about sharp growth slowdown. the Reserve Bank of India (RBI) has by 6.7 percent to 143,496 units, from Growth-obsessed local authorities recent quarters, where car sales are falling oil and gas output from Manufacturing output, which been holding back on reducing borrow- 134,473 units in the same month last have been rolling out some investment slowing due to a rise in raw material Reliance’s main fields, which has seen accounts for three-quarters of the year, according to figures released by projects in recent weeks, but their ability costs, vehicle prices, high fuel prices its stock underperform. (AFP) ing costs, saying it wants inflation run- Index of Industrial Production, was the Society of Indian Automobile to fund them remains in doubt given and interest rates. ❑ ❑ ❑ ning at over seven percent to ease first. more than 10 trillion yuan in local debt – Tata Motors car sales in India slid 9.9 chiefly to blame, falling 3.2 percent “The situation calls for urgent poli- Manufacturers (SIAM). MANILA: The Philippines’ largest gold from a year earlier in June, according The growth rate would have been a legacy of the massive stimulus percent from a year earlier to 62,619 cy measures both by the RBI as well unleashed in 2008/09. units and its profit from standalone local and copper producer says its full-year to government figures. much weaker but last year’s low base earnings will drop as its mine in north- as the government to salvage industry Policy stimulus could give only a lim- operations nearly halved to 2.05 billion Chidambaram called the numbers from further decline,” said Chandrajit helped to improve the figure. Half of ited boost to the economy in the absence rupees, in the June-ended quarter. ern Benguet province remains shut after “disappointing” and said he would act the country’s 18 carmakers reported a The company said slowing local waste leaked from a storage pond. Banerjee, director general of the of a global recovery, analysts say. Philex Mining Corp said Thursday in “double-quick time” to remove Confederation of Indian Industry. fall in sales in July, despite hefty price “Economic growth in the third quarter industrial growth, weak growth outlook bureaucratic and other bottlenecks discounts to boost business. and concerns over deregulation of gov- operations at its Padcal mine will remain India’s benchmark Sensex share is likely to remain sluggish. Growth may ernment-controlled diesel prices will suspended for some time, until the safe- hindering India’s production. index closed down a fifth of a percent- “These July numbers are not very show some improvement from have an impact on overall demand for ty and integrity of its tailing pond is “We intend to find practical solu- age point to 17,560.87 points on the strong. Sentiment continues to be very September,” said Zhang Hanya, a cars in India, in a presentation to assured. tions,” he said. weak, but we’re hoping interest rates researcher with the National The company says each month of sus- back of the data. Development and Reform Commission, reporters. The industrial output fall defied The next quarterly growth figures will come down and improve buying Tata Motors bought Jaguar and Land pension will cost 220 million pesos the country’s top planning agency. market forecasts of close to one per- sentiment,” said SIAM senior director Rover from Ford Motor in 2008 for $2.3 ($5.3 million). cent growth and came as the country are due at the end of the month but Sugato Sen. China’s industrial output growth billion as part of plans to expand its Mine operations were suspended on “the omens are not particularly slowed to 9.2 percent year-on-year in reach beyond Asia. August 1 and the leak was plugged faces the spectre of its third drought in Car loan interest costs are running at a decade, which would further reduce encouraging”, said Prior- 12 to 14 percent. July, its weakest since May 2009, down The deal vaulted Tata Motors from a within 48 hours. Wandesforde. from 9.5 percent in June and below the commercial vehicle and small-car maker Insurance would mitigate losses but economic expansion. SIAM has projected auto sales will 9.8 percent forecast in a Reuters poll. into a global player with luxury brands Philex Chairman Manuel Pangilinan “This was another shocking indus- Capital goods output, a vital invest- rise by nine to 11 percent this year — says full-year earnings would be “mate- ment signal, slid 27.9 percent in June Annual growth in fixed-asset invest- in its range of offerings. (AFP) trial production release from India... far higher than last year when growth ment, in the likes of real estate, roads and rially impacted.” — the largest contraction on record ❑ ❑ ❑ Philex’ made a net profit of 2.11 bil- and will inevitably heap more pressure slowed to 2.2 percent as the sector bridges, came in at 20.4 percent in on the central bank to restart its rate according to Credit Suisse. was hit by aggressive rate hikes to January-to-July, unchanged from the SYDNEY: Australia’s dominant telecom lion pesos ($50.6 million) in the first company Telstra posted a 5.4 percent half of the year. Net profit for 2011 was cutting,” said Credit Suisse economist Also: curb inflation and industrial prob- January-to-June period and just below the jump in annual net profit to Aus$3.42 5.57 billion pesos ($133.6 million). (AP) Robert Prior-Wandesforde. NEW DELHI: India’s car sales grew by lems. 20.5 percent forecast.
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